A credit freeze is more complicated than a fraud alert. I encourage you to view each credit reporting agency’s website for their required information and process. A credit freeze would be appropriate for a child who has had their identity stolen and sold to undocumented workers. Freezing your credit does not affect your credit rating. It does not prevent you from obtaining your free credit report.
For more information on credit freezing, contact the following credit reporting agencies:
Equifax—www.equifax.com
Experian—www.experian.com
TransUnion—www.transunion.com
Credit freezes differ greatly from credit alerts. A credit freeze is good only for the credit agency to which you apply. This means that you must correspond with each credit agency independently and go through the same process to fully protect your child. Credit freezes can be temporary or permanent. Once you place the freeze on the file, it is up to you to follow up and remove the freeze from the file.
In adult identity theft cases, credit freezes can be an inconvenience because they stop the issuance of credit. Make sure you have researched this thoroughly before you do it, because it does limit your ability to get quick access to credit; your child does not need it, but you might if you are the victim instead of your child. If you are the victim, ensure that the credit reporting agency has your cell or home phone number so they can call you when either you or someone else applies for credit in your name.
If you are concerned about a credit freeze affecting a current account you have open, do not worry. Credit freezes do not affect accounts that already exist. They also do not affect parties that may have access to your file unrelated to new accounts, such as law enforcement officers and some government agencies for reasons of investigation or a statutory responsibility.
Credit freezes are not necessarily free. If you view the credit reporting agencies’ websites, you will see that different states have different prices. For example, the fees range from no cost to $20 on the TransUnion website. Typically victims can place the freeze for free. If you have not been victimized by identity theft and you still desire to place a freeze on your credit file, you may experience a fee. The services are the same whether you are being charged a fee or not.
Question #65: How can I clear my child’s name?
Clearing your child’s name is one of the most challenging parts of the process, since it requires patience, persistence, and careful record keeping. Documentation will be your best friend. Logical step reporting will assist you greatly. To assist you further, I have created a checklist that you can use as a guide:
Create a journal or log book.
File a complaint with the FTC.
Initiate a credit alert with a credit reporting agency.
Request a credit report for your child from a credit reporting agency.
Request a credit report for other family members as a proactive measure.
Contact the police (local department, local precinct, county sheriff’s office, county police department, parish sheriff’s office, state police, state patrol, state bureau of criminal investigation, or state highway patrol).
If the child identity theft involves terrorism, did you contact the FBI?
If the child identity theft involves phishing or a computer scam, have you saved all copies of e-mails?
If the child identity theft involved a military dependent ID, did you contact the military police?
If the child identity theft involves the U.S. mail, did you contact your U.S. postal inspector?
Obtain a copy of the police report.
If the child identity theft involves a lost or stolen passport, file a form DS64 with the Department of State.
If the child identity theft involved a tax return or reported income, contact the IRS.
Contact creditors who issued credit in your child’s name.
Notify your bank that a family member has been the victim of child identity theft in case a garbage thief stole information from more than one family member.
Request a benefits and earnings statement from the Social Security Administration.
If your child identity theft involved medical information, contact your insurance company.
If the child identity theft involved a vehicle purchase or driver’s license, has the department or division of motor vehicles been notified?
If the child identity theft involved your child’s cell phone number, contact the cell phone provider.
If the child identity theft involved government assistance, has the appropriate agency been notified?
If the child identity theft involved disaster relief, has FEMA been notified?
Advise your child’s school and doctor that your child’s information has been compromised and that you must approve any information released until further notice.
Ensure your family’s phone numbers are listed on the Do Not Call Registry.
Contact an attorney (optional).
Do you have required court dates to attend?
Does your child need counseling as a result of the child identity theft?
There may be other items you could add to this list. If so, make a notation in your journal or log book to ensure you follow up on the added issues.
Question #66: How did we get Social Security numbers in the first place?
Trivia 101: In what year was the first Social Security number developed, and who contracted with the Social Security Administration (SSA) to distribute and assign the first batch of Social Security numbers? If you miraculously answered 1936 and the U.S. Post Office, then you are correct. In 1935, the Social Security Act (P.L. 74-271) was enacted, authorizing the creation of a record-keeping system.
In November of 1936, the SSA sent the first SS-4 application forms to employers via the U.S. postal distribution process. Using the data collected from employers, the postal offices then supplied an SS-5 form for employees to complete. The U.S. Postal Service had been selected because it maintained 45,000 offices across America, 1,074 of which were large enough to be designated as “typing centers.”
When employees completed the SS-5 form, they had the option to hand deliver it to their mail carrier or visit the typing center for their new Social Security card. Once completed, all records of the issuance of the Social Security card were sent to the SSA headquarters in Baltimore. Once there, the records were grouped in blocks of 1,000 and the master records created.
“On December 1, 1936, the first block of 1,000 records were assembled and were ready to start their way through the nine-step process that would result in the creation of a permanent master record and the establishment of an earnings record for the individual.”4 This record included a card issued to each individual worker. The card they would receive was designed by Fred Happel of Albany, New York. Happel was commissioned by the SSA to develop three designs to be considered. He was paid $60 for his work, which became the first card used by the SSA.
In 1962, the Internal Revenue Service adopted the Social Security number as their official method of tracking taxpaying citizens. In 1969, the Department of Defense changed their system of identifying service personnel from military service numbers to the Social Security number.
Since 1936, society has changed greatly, but what has remained consistent is the system of Social Security numbers. Social Security numbers continue to be the method for the government to track wages and earnings. Unfortunately, criminals who use identity theft as their tool have abused this great mechanism.
While child identity theft is a new-age crime, the most misused individual Social Security number of all time is not new, but rather quite old. In 1938, wallet manufacturer E. H. Feree of Lockport, New York, decided to promote his product by showing how a Social Security card would fit easily into one of his new-for-sale products. He included in each of the wallets that was sold a card that looked just like a real Social Security card and had the number 078-05-1120 on it.
This sample card was meant for display purposes,
and while each new wallet contained one, it was not meant to be a real Social Security card. The company vice president decided that it would be a clever idea to use the Social Security number of his secretary, which he did. This wallet was sold in Woolworth stores all across America. Even though it was a bit smaller than an actual card and was printed in red with the word “specimen” on it, the card was misused often in fraud.
In the peak year of 1943, 5,755 people were using the Social Security number of Feree’s secretary, and in all over 40,000 people have been found to have used the number. In 1977, twelve people were found to still be using that same Social Security number issued by Feree. Identity theft is a continuing crime that has been around for many years and will continue to be, as evidenced by this example.
Question #67: What is an “area” number, and how does it affect my child?
Area numbers are the first three numbers in a Social Security number issued to your child by the SSA prior to 2011. A child’s Social Security number consisted of nine numbers containing area numbers, group numbers, and personal identifiers. The first three numbers in the Social Security number were assigned by the geographical region that you lived in.
When the system was first developed, the government started issuing area numbers, giving the states in the Northeast theirs first, then moving westward. That is why numbers issued in the East are lower than those issued in the West. Table 4.1 provides a list of area numbers across America as published by the SSA.
Table 4.1. Social Security Administration Area Numbers
Alabama 416–424
Nebraska 505–508
Alaska 574
Nevada 530
American Samoa 586
New Hampshire 001–003
Arizona 526–527, 600–601
New Jersey 135–158
Arkansas 429–432
New Mexico 525, 585
California 545–573, 602–626
New York 050–134
Colorado 521–524
North Carolina 237–246, 232
Connecticut 040–049
North Dakota 501–502
Delaware 221–222
Ohio 268–302
Washington, D.C. 577–579
Oklahoma 440–448
Florida 261–267, 589–595
Oregon 540–544
Georgia 252–260
Pennsylvania 159–211
Guam 586
Puerto Rico 580
Hawaii 575–576
Rhode Island 035–039
Idaho 518–519
South Carolina 247–251
Illinois 318–361
South Dakota 503–504
Indiana 303–317
Tennessee 408–415
Iowa 478–485
Texas 449–467
Kansas 509–515
Utah 528–529
Kentucky 400–407
Vermont 008–009
Louisiana 433–439
Virginia 223–231
Maine 004–007
Virgin Islands 580
Maryland 212–220
Washington 531–539
Massachusetts 010–034
West Virginia 232–236
Michigan 362–386
Wisconsin 387–399
Minnesota 468–477
Wyoming 520
Mississippi 425–428, 587, 588
Railroad Retirement Board 700–728
Missouri 486–500
Outside the U.S. 586
Montana 516–517
Source: Social Security Administration Bulletin, November 1982/Vol. 45, No. 11. 2012. Accessed April 5, 2012. www.ssa.gov/policy/docs/ssb/v45n11/v45n11p29.pdf.
Area numbers were just one piece of predictable information a child identity thief needed to steal your child’s financial future. Following area numbers were group numbers and serial numbers in the sequence. Armed with each of these three groups of numbers, a thief could assume the identity of your child.
Question #68: What are “group” numbers and “serial” numbers, and how do they affect my child?
Social Security numbers issued, prior to 2011’s randomization, had two middle numbers within the nine-number sequence called group numbers. Group numbers ranged from 01 to 99. The odd numbers 01 through 09 were issued first, followed by the even numbers 10 through 98. SSA regional offices used to have an allocation of these numbers to issue, but the group number had no special geographic or data signification. The group numbers 00 were not used except for administrative purposes.
Group numbers were simply an administrative convenience for the SSA. They would break them down and give certain portions to different states to use. The group number (which was the fourth and fifth number in the Social Security number) was initially determined by U.S. Post Office locations that made the assignments when the numbering system first began. These post offices were given 10,000 numbers to issue out in their area of responsibility on behalf of the Social Security Board’s Bureau of Old-Age Benefits.
Group numbers can be complicated when you try to follow the logic. Before 1965, only half of the group numbers were used. The odd numbers were used below the number 10 and the even numbers were used above the number 9. In 1965, the SSA changed the system. The change in assignments gave us a system of issuing low even numbers and the high odd numbers in the following order:
Odd numbers 01 through 09
Even numbers 10 through 98
Even numbers 02 through 08
Odd numbers 11 through 99
This brings us to serial numbers. The last four numbers in your child’s Social Security number prior to 2011 were called serial numbers. Serial numbers ranged from 0001 through 9999. Serial numbers were designed to be uniquely assigned to an individual person and not to be repeated. The numbers were issued in consecutive order.
The SSA used to publish a monthly list of the highest group assigned for each Social Security number area. This ceased to exist after June 25, 2011, when the SSA started using “randomization.” Randomization is a new method of issuing Social Security numbers.
The SSA claims that it changed to the new system for two reasons. The first was that they were running out of area numbers. The system was exhausting itself. The second was that the Social Security number contained predictable numbers, which led to identity theft and child identity theft. A system of randomization allows the SSA to use certain number series that had previously not been used.
The randomization of numbers eliminates the area number and freezes the high group list that had been used to verify the validity of Social Security numbers. To assist law enforcement, employers, and SSA personnel, the government has created the E-Verify program. The E-Verify program allows an employer, for example, to verify that a Social Security number is valid, is assigned to one particular subject, and that the individual assigned to the number is eligible to work in the United States. Some states require employers to use E-Verify when hiring an employee.
Question #69: When should I obtain a Social Security number for my child?
We just discussed the uniqueness of Social Security numbers; now let’s take a moment and talk about when they should be requested from the SSA. Should parents get them at birth or wait until the child gets older? What are your options as a parent or guardian? These are just a few questions we will tackle.
Let’s get started with when you should obtain a Social Security number and card for your child. There are two options; the first is to obtain it after birth while still at the hospital, and the second is to wait until a later date you desire before the child turns eighteen years old. Before you decide, consider what you might need the number for. Here are some items for which a child might need a Social Security number:
Opening a savings account
Opening an investment account in their name
Completing a required tax return
Obtaining a U.S. passport
Obtaining health insurance
Obtaining life
insurance
Participating in a prepaid college investment plan
Buying U.S. savings bonds
The first option is to obtain a child’s Social Security number at the hospital. In this case, the hospital will assist you by providing you with the necessary forms when they complete the state birth certificate registration paperwork. If you select this option, the SSA will mail the Social Security card to your address once it is completed. This is the best choice, as registering your child as soon as possible prevents a child identity theft criminal from registering as your child and requesting the number and card before you do. This option prevents a would-be thief from reading the newspaper birth announcement and filing for the number before you do as well.
Once complete, your application will be forwarded to the SSA, then received and processed. The application and issuance process takes approximately twelve weeks. The next option is to obtain a child’s Social Security number at a later date. If you elect this as your option, you will need to complete Form SS-5 (Social Security Number Application Request Form) at a later date to obtain the Social Security number. Be prepared to show U.S. citizenship, age, and identity documents for your child. You will also be required to show a document proving your identity.
It is best to submit your application in person. If this is not possible, it is in most cases acceptable to mail your application to your nearest SSA office with either original documents or copies certified by the issuing agency. Your nearest office should be found in the government section of your local phone book, or you can research www.socialsecurity.gov for a convenient location. Once there, click on the tab on the left side of their home page that says “Find a Social Security Office.”
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