Social Security Numbers Evolution: All You Need to Know

The American social system, characterized by the use of unique identifiers, “Social Security Numbers,” is a testament to the social evolution of nine-digit numbers, a concept that has been a central part of American identity since its inception.

Social Security numbers are an integral part of the United States identity system, serving as a unique identifier for various purposes, such as job applications and filing taxes. Have you ever wondered how and why Social Security numbers were created?

In this post, we will be exploring the evolution of social security numbers (SSNs), including SSN usage over time, key legislative changes, and tips to safeguard your SSN. 

The Birth of Social Security Numbers

Early Beginnings

The concept of a national identification number first emerged in the United States during the early 20th century. Prior to the establishment of Social Security numbers, various government agencies used different methods for identifying individuals. However, those identifications were inefficiencies and thus led to duplications of identity.

During the Great Depression, President Franklin D. Roosevelt signed into law the Social Security Act of 1935 on August 14. This act created a social insurance program designed to provide financial benefits to individuals who were retired, unemployed, or disabled. The Social Security Administration (SSA) was established to administer this new welfare program.

Establishment of the Social Security Number System

To prevent fraud and duplication, the concept of a unique identifier, known as the Social Security Number (SSN), was introduced. The first SSN was issued in November 1936, and by December of that year, over 25 million numbers had been assigned, with each number assigned based on the individual’s geographic location.

Evolution of Social Security Numbers Usage Over Time

Initially, SSNs were intended for tracking earnings and benefits within the Social Security system. However, their use expanded beyond the system. In the 1960s, the Internal Revenue Service (IRS) began using SSNs to track individual taxpayers, ensuring accurate reporting and streamlining the tax filing process.

Over time, SSNs became the de facto identification number for various government programs, financial institutions, and employers. SSNs are essential for various purposes, such as opening bank accounts and obtaining driver’s licenses.

Protecting Your Social Security Number

There were concerns about privacy and identity theft due to the widespread use of Social Security Numbers (SSNs) in American society.

To protect SSN holders’ privacy, the SSA implemented stricter regulations on access and encouraged individuals to safeguard their SSNs and only provide them when absolutely necessary. Measures such as limiting the display of full SSNs on documents and restricting access to them have been implemented to help safeguard individuals’ sensitive information.

Today, SSNs are an essential piece of personal identification for Americans, required for various purposes such as applying for jobs, opening bank accounts, obtaining loans, filing taxes, and accessing government services. Despite ongoing debates about privacy and security issues surrounding SSNs, they remain a fundamental part of American society’s administrative framework.

Steps to Protecting Social Security Number

Because Social Security numbers are sensitive data, it is important to protect your personal information. Understanding the significance of these numbers for your identity and financial well-being will prompt you to take proactive steps to safeguard them. To protect your SSN, follow these best practices below: 

• Do not carry your Social Security card in your wallet or purse unless absolutely necessary.
• Avoid sharing your SSN unless it is required for a legitimate purpose.
• Be cautious when providing your SSN online, and ensure that you are on a secure website.
• Regularly review your bank and credit card statements for any suspicious activity.
• Consider placing a fraud alert or credit freeze on your credit reports.
• Shred any documents containing your SSN before discarding them.
• Keep your computer and mobile devices protected with up-to-date antivirus software and strong, unique passwords.
• Be wary of unsolicited phone calls or emails asking for your SSN or personal information.
• Monitor your credit reports regularly for any unauthorized accounts or inquiries.
• Consider using a secure digital wallet or password manager to store your SSN and other sensitive information.

Impact of Key Legislative Changes

Throughout its history, the Social Security system has undergone several significant changes that have shaped the role and significance of SSNs. Amendments to the Social Security Act, such as the introduction of Medicare and Medicaid in the 1960s, expanded the scope of benefits administered through the SSN system. Similarly, reforms in the 1980s and 1990s addressed issues of fraud and abuse, leading to the implementation of stricter identity verification measures.