What is Social Security Number (SSN )?
SSN is a 9 digit number in the format XXX-XX-XXXX. It is given to all US Citizens, permanent residents and temporary residents who work in US. Its primary purpose was to “track individuals income for taxation”. Lets see the structure : AAA-GG-SSSS. First four are for area where it was issued, middle two are group number for administrative purposes with specific pattern and final 4 are serial number from
0001 to 9999.
Why is SSN very Important ?
A persons social security number is their own personal number that is not shared by anyone else and is used to identify themselves. Having a social security number is very important because it is needed for a person to gain employment, receive social security benefits, and be entitled to other government benefits and services that are offered. Sometimes banks, credit companies, and other businesses that you find yourself dealing with in life may even ask you for your social security number and if someone don’t have it services will be denied.
It is very important to remember your SSN, as it is the only proof your identity. The law assumes that, no one other than you except your Employers, Banking person, Credit card companies and other Financial related people knows that number. It is FRAUD if someone in the above list steals these number and distribute or use for something else. So, the only way to identify your identity is by SSN. Typically, people ask for last 4 digits of SSN on phone. You should say only last four. Never ever say full SSN on phone to anyone or tell it to anyone.
Identity Theft with SSN
One of the main reasons that someone will want to have a social security number is for employment opportunities. When someone applies for a job, the employment application will always ask for a social security number and if the applicant does not have one then the employer will not consider hiring them. Even if you are a lawfully admitted alien who has permission to work in the United States, you will still need to get a social security number. Those who don’t have permission to work in the United States are also required by state and local government law to have a social security number.
Having credit is very important and is part of the American life. If you don’t have a social security number you will not be able to apply for any credit. Once a person has a social security number and establishes a good credit history, that good credit history will be reflected when that persons social security number is run through a credit check.
The main reason that the government wants a worker to have a social security number is for tax purposes. Social security was made with the general purpose to give workers security when they grow old and retire. The social security taxes that are taken out from a workers wages will be used to help take care of retired workers financially.