Your Social Security Number (SSN) is one of the most important things assigned to you. It opens the doors to government benefits and Social Security payments you can use during retirement.

This means you must safeguard this number from thieves who commit fraud and other criminal activities. One effective way to protect your SSN is by verifying it, which enhances your security. We’ll also show you how and why it matters. 

Key Takeaways 

• Social Security Number verification is a process of determining whether the SSN belongs to the correct person.
  
  

• Verification is used to prevent fraud, issue government benefits, verify employment, and for regulatory compliance.
  
  

• The three types of verification methods are eCBSV, document, and authoritative database verification.

  
  

What Is Social Security Number Verification?

Golnoush Goharzad, an attorney and founder of Goharzad Law, explains:

“SSN verification is the process by which third parties, often employers, banks, or the IRS, can verify the authenticity of a Social Security number.”

SSN verification is often used for the following:

Employment: Employers verify SSNs to confirm the identity of new hires and to ensure they are eligible to work in the United States. This is part of the Form I-9 verification process required by the U.S. government.

Tax Purposes: The IRS requires SSN verification for tax reporting to ensure that earnings and financial data are accurately recorded against the correct taxpayer records.

Banking and Credit: Financial institutions verify SSNs to prevent identity theft and fraud, and to comply with federal regulations when opening new accounts or issuing credit.

Synthetic identities, created by combining fake and real information, are becoming all too common. They are often used in authoritative databases where SSN verification is not performed, posing a significant risk to individuals' identities and financial security.  

Verifying your SSN prevents problems like fraud, money laundering, tax evasion, and even terrorist funding. 

However, it’s important to remember SSNs were not created to act as universal identification numbers, and they’re most certainly not as complex or secure as we think they are. If you don't verify your SSN, you could be at risk of identity theft, where someone could use your SSN to open credit card accounts or take out loans in your name, potentially ruining your credit and financial standing. 

Keep your SSN in a secure place to prevent it from getting into the wrong hands. You can do this by using a family-operating system like Trustworthy. 

Trustworthy offers families and individuals a secure and convenient location to store important documents, passwords, contacts, daily reminders, and family resources. Trustworthy takes its client’s security seriously and is fully SOC2 Type 2 and SOC3 certified in accordance with the American Institute of CPAs (AICPA) SOC standard. 

How to Verify Your SSN

Verifying your SSN is straightforward. All you need to do is submit the required information, such as your name, address, and birth date, to the institution conducting the certification process. The Social Security Administration (SSA) offers an online service called the Social Security Number Verification Service (SSNVS), making the verification process quick and easy.  

To use SSNVS, you must register with the SSNVS and then request an access and activation code. Once you receive the activation code, you can log in and verify up to 10 names. This process usually takes around one government business day for larger batches of names.  In addition, you can also use authorized third parties who offer these services to verify SSNs. 

Social Security Number Verification Types

Different types of SSN verification methods can be used to make verification easier and more thorough. Different methods are used for different purposes. For example, one method may be better for high-risk transactions, whereas another may be better for identifying synthetic identities. Let’s take a closer look. 

eCBSV validation

Electronic Consent-based Social Security Number Verification (eCBSV) is a type of SSN verification method used to detect synthetic identities that may have been missed by an authoritative database scan. The SSA offers this method, which provides instant results and is most commonly used by businesses employing new hires. 

eCBSV is also used to validate SSNs during high-risk transactions. A normal transaction through banks does not include this type of verification method in the default verification flow. When a transaction is deemed risky, an alert will go off, and then an eCBSV will be run. Risky transactions include things like commodity and foreign exchange risk.  

This verification method is also used when an identity cannot be validated any other way because the default verification flow cannot identify individuals with very thin or no credit files. eCBSV is also one of the most secure and accurate methods that offer the highest protection against identity fraud, but it also comes with higher costs. 

Document Verification 

The second type of SSN verification is document verification. This is a rather simple method that involves using a trusted document containing the person’s name, address, and SSN number to cross-reference the information. Documents that have your SSN are usually tax return forms, bank loans, pay stubs, divorce decrees, and more. This is not the most accurate verification method, but it works for low-risk scenarios. 

Authoritative Database Verification

This is a verification service that uses US-based authoritative CIP-grade data sources to verify that the SSN provided matches a person's records on the database. Organizations that use this method are credit bureaus like TransUnion, financial aggregators, and other data aggregators. This method is also not as accurate as eCBSV. 

Why Is Social Security Number Verification Important?

Most importantly, SSN verification protects your personal and financial information from fraud and ensures you receive your government benefits. 

Identity Verification

Verifying an SSN is a good way for institutions to build trust among cybercrime risks. Verification is also an important part of organizations and software security systems to prevent fraud and identity theft.  

For many businesses or institutions, verifying an SSN is an easy way to carry out accurate identity verification that is accurate and has less risk of fraudulent information. This is used by banks when people want to take out loans or open new lines of credit.  

Fraud Prevention

One of the most significant reasons why SSN verification is crucial is its role in preventing fraud, which can lead to substantial financial loss. Identity fraud, a common risk when an SSN is breached, can be avoided through SSN verification. This process helps banks determine whether the person applying for a loan is indeed who they claim to be, providing a layer of security.  

Employment Verification

Employers use SSN verification to check applicants' backgrounds to ensure they are who they say they are. In the U.S., federal law requires all employers to verify all employees' SSNs and legal work status. These checks can give employers some insight into the applicant and their credit history.

Government Benefits

Your SSN is important for government benefits. This number is used for all administration related to benefit distribution, record maintenance, and taxation. It’s also used to determine whether you are eligible for certain government benefits. SSN verification also ensures benefits are given to the correct person and allocated fairly.  

The SSA lets you get an estimate of your future Social Security benefits and other eligibility options. Store this information with Trustworthy and share access with trusted people. 

Regulatory Compliance

In some cases, strict regulatory guidelines require banking and finance industries to carry out SSN verification to comply with anti-money laundering (AML) laws. Businesses that fail to carry out SSN verification can face legal action and costly fines.   

Frequently Asked Questions (FAQs)

How long does it take for SSNs to be verified?

If you are using the SSNVS with the SSA, verification for less than 10 SSNs will be instant, and more than 10 numbers will take at least one business day.  

How do you verify your SSN without a card?

If you don’t have your Social Security card but know your SSN, you can use any legal document containing your SSN, name, and other important details. Documents you can use include bank loans, pay stubs, and your birth certificate. 

Can I check my SSN status online?

If you recently applied for an SSN card or your benefits, you can view the status of your application online by visiting the SSA website.