[Dataloss] Congress eyes restrictions on use of Social Security numbers

[lyger]

http://computerworld.com/action/article.do?command=viewArticleBasic&articleId=9000482

By Jaikumar Vijayan

May 15, 2006  (Computerworld) -- The possibility that U.S. lawmakers might 
restrict the widespread use of Social Security numbers in commerce because 
of consumer privacy issues is prompting concern in the financial services 
industry.

Such a move would rob businesses of a reliable and widely used 
identity-verification method while doing little to bolster consumer 
privacy, said Randy Lively Jr., CEO of the American Financial Services 
Association in Washington.

Lively was one of several industry representatives who testified at a 
hearing last week on the use of Social Security numbers in commerce. 
Lively spoke before a subcommittee of the House Committee on Energy and 
Commerce.

"The Social Security number is the only unique identifier in our country 
that enables a credit grantor, or a credit bureau, or a bank, or an 
insurance company, or an investment firm to be sure that the consumer they 
are doing business with" is legitimate, he said. Any attempt to change 
that use could disrupt the nation's economy, Lively argued.

While concerns about the misuse of Social Security numbers and their link 
to identity theft are valid, Lively said lawmakers need to understand of 
the consequences of barring their use for commercial purposes. "What would 
be put in place if that number were to go away and a new identifier was 
put in place? And wouldn't that identifier be susceptible to the same kind 
of fraud?" Lively asked.

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