Social security numbers are used as a form of identification for tax and employment purposes, among a variety of other things. When hiring, it’s important to verify the applicant is who they say they are. There is a significant difference between a SSN trace and a SSN validation. It’s important to know the difference when requesting a background check and staying compliant with federal and local laws.
Social Security Number Trace
A quick, non-comprehensive way to identify whether or not a Social Security number is valid is the basic reason for running a SSN trace. A trace identifies names and addresses associated with the Social Security number but doesn’t verify that the number belongs to your applicant. The Social Security number trace only confirms if the number is valid and has been in use by the candidate.. The information reported in the trace is also only as good as the reporting agencies. There could be mistakes due to improper reporting from various credit agencies that could come up on the trace, such as misspelled names, incorrect addresses, or other names if the applicant ever filed for credit with another person. While the SSN trace isn’t perfect, it is an invaluable tool in providing leads on address history and other names in use or previously used by your applicant.
Social Security Number Validation
Social Security number validations are more comprehensive and useful for verifying the identity of the applicant. The validation process cannot begin without the employer obtaining special consent, the SSA89, from the applicant to verify their Social Security number. The name, address, and Social Security number provided by the applicant are then checked against Social Security Administration records. This provides information regarding the validity of the SSN and the verified identity of the applicant on a pre-hire basis.
The Importance
Protecting your business from fraud, involuntary breaking of immigration laws, are among the two most common reasons for taking the next step and running Social Security number validations. Identity fraud isn’t only for opening lines of credit and making large purchases, it can also be used to fraudulently obtain employment. If a person has certain felonies or other issues keeping them from gaining employment using their personal information they may be tempted to use a person’s Social Security number who has a clean record. According to a study in 2018, 1 in 15 persons have been or will become victims of identity theft. An IRS report done in 2017 found that over 200k persons had been victims of employment identity fraud, making Social Security number validations that much more important, not only for the safety of the individual but for the safety of the company as well.
The difference in safety between Social Security number trace versus validations is significant. While a trace is useful in detecting names and addresses associated with an applicant, it doesn’t provide the identity validation useful for determining identity and employment fraud.
——
Critical Research is committed to delivering reliable screening solutions wherever you do business. We offer a variety of services, packages, and comprehensive reports to help you make the smartest hiring decisions. Our FCRA-certified team achieves industry-leading turnaround times for comprehensive pre-employment screening. Contact us for more information on how we can meet your screening needs.