How did we get here? SSN as private information? (Score 4, Interesting)

I don't hate the stupid companies who loose SSN numbers, instead, I'm bothered on how we as a country got into this mess into the first place.

I helped my parents this last week with a garage sale. During the sale, my mom noticed that an old table for sale had her SSN engraved in the wood! Why? Because back in the late '70s early '80s, the local police department told citizens to put a SSN on your assets in case they were stolen (Ironic, Eh?). She spent 20 minutes frantically trying to rub out her ID, she was visibly shaken.

OK, I understand the need to pass SSN/Taxpayer ID information between the Social Security Administration, IRS, Banks/Credit Unions, and your Employers.

The real problem is that there are so many other business segments who need to validate your identity, that they have piggy backed usage of the SSN as the de facto form or Identity verification. This is the real segment that needs to change their behavior!

• Companies like Comcast who insist on the last four digits of my SSN to call the help desk?!?!
• Universities who use the SSN as a student ID number.
• and most importantly, Credit reporting agencies who base consumer credit scores on unverified data.

I mean, how hard is it to go into the local Car-Toys, order a bitchin' stereo on zero money down, and forge the credit application with a stolen SSN and other personal info? And the problem is not just limited to your SSN! Your credit card number(s) have the same problem. If you know the number, expiration date, and Security code on the card, that's all it takes for many purchases over the phone or internet.

The real problem in our modern society is identity verification. Anyone who has ever forgotten a password to a website (what is up with all the different password complexity rules?), everyone who has ever wondered if that waitress is taking so long is because she is ordering a new dress from Victoria's Secret on your card, and everyone who wondered why their bank insists on a utility bill to verify your place of residence due to a clause in the "Patriot Act". You know what I'm talking about.

IMHO, what we really need in this country is not a credit score, but an identity score for identity(ies) that are independent from our SSN/Taxpayer ID (not government controlled, sorry). If I purchase a candy bar with a credit card, the level of identity verification required is low, if I purchase a new car with a loan, then I suspect the level of identity verification would be much higher! The credit score should be weighted against the integrity of the identity given too. If someone fills out a credit application with just a name, address, and SSN, then the chance for fraud is high, and the integrity of the information is low. If the person supplies a trusted smart card certificate, with a complex PIN, along with some other kind of biometric data, then the integrity is much higher.

<Sigh...>