The Price We Pay For Convenience: Why Are Businesses Still Collecting Social Security Numbers?
Businesses are collecting Social Security numbers (SSNs) like baseball cards—storing them away just in case, despite the significant risks involved.
SSNs are a prime target for identity thieves. Their presence in databases increases vulnerability to data breaches and associated fallout like identity theft. Collecting fewer—or no—SSNs could significantly reduce the risks organizations face from hackers. So why are business still collecting them and why are we still handing them over so freely?
Why Are We Still Collecting SSNs?
The answer boils down to one word: convenience.
SSNs are still widely used, especially in industries like healthcare and finance, for several reasons:
- Patient identification in medical systems
- Collections and debt tracking
- Medicare and insurance verification, though SSNs are not required by law
- Tax and legal identification, since they link directly to the IRS
Although convenient, using SSNs as a universal identifier exposes individuals and organizations to avoidable dangers. Ironically, Social Security cards were originally printed with the phrase:
“For Social Security purposes – NOT FOR IDENTIFICATION”
Yet here we are—after tens of thousands of data breaches—still handing over our SSNs to medical providers, retail stores, mortgage companies, and insurers.
Is There a Better Way?
Yes—and it’s already being done.
To improve patient and customer data security, many healthcare providers and financial institutions are exploring or implementing alternative identifiers:
- The VA’s Internal Control Number (ICN):
The Veterans Affairs system has moved away from SSNs and adopted the ICN—a secure, 13–18-digit number used to track patient records without revealing sensitive personal data. - Digital Certificates in State-Issued IDs:
Some states are embedding digital certificates into driver’s licenses and photo IDs. These prove that the holder has a verified SSN (since it was required to obtain the ID), but the number itself is never disclosed. It’s secure, effective, and already in use in the very state where many of us do business.
The Debt Collection Myth
One major justification for collecting SSNs is debt collection. But here’s the truth: having someone’s SSN doesn’t guarantee you’ll be able to collect from them.
Most Americans have some form of government-issued photo ID, which should be sufficient for identification. If a debtor is unwilling or unable to pay, their SSN won’t change that. And with modern tools and databases, it’s easier than ever to locate those who can pay—without risking a data breach by hoarding SSNs.
Final Thought: A Question Worth Asking
Is this really just the price we pay for convenience?
Or are we overdue for smarter, safer alternatives?