Washington, DC -- September 28, 2000 -- In a move to restore personal privacy, legislation introduced by Congressmen Jerry Kleczka (D-WI)  and Clay Shaw (R-FL) was approved today by the full Ways and Means Committee.  H.R. 4857, the Privacy and Identity Protection Act of 2000, passed the committee by a unanimous vote.

"Social Security numbers were never intended to be national identifiers," Kleczka said.  "This legislation will finally put a stop to the abuse of our privacy through their sale and distribution."

Unfortunately, the use of Social Security numbers (SSNs) for identification purposes has become increasingly common.  Some cable companies require one to set up an account, many retail stores require them before they will accept a check, and dentists, doctors, colleges and universities often use them as ID numbers.  As the use of SSNs has become more prevalent, so too has the ability to obtain them, both fraudulently and through legal means.  SSNs can be bought and sold legally, and until recently Congress has done little in terms of regulation.

The widespread use of SSNs has allowed identity theft to become one of the fasting growing crimes in America.  An estimated 750,000 Americans are victims of these crimes each year, with fraudulent charges averaging $18,000 per case.  Increasingly concerned by stories of identity fraud, in 1998 Congressman Kleczka requested a General Accounting Office (GAO) study on its causes and effects.  The report revealed that identity fraud was increasingly widespread, due in large part to the ease with which third parties can obtain crucial personal information, such as names and Social Security numbers.  A second GAO report, released a year later, showed just how common government and commercial use of the SSN was, and pointed out that federal law no longer controls most uses of the SSN.  They have essentially become national identification numbers.
 

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The Kleczka/Shaw bill aims to cut down on identity theft by prohibiting the commercial sale of SSNs.  In addition, businesses would not be permitted to refuse service to customers who choose not to disclose their SSNs.  That provision, and another to prevent credit reporting agencies from selling credit header information that includes SSNs, were heavily drawn from the Personal Information Privacy Act, legislation which Kleczka has introduced in the last two sessions of Congress.

Kleczka has long been recognized as one of the leaders in the movement to protect personal privacy, and was dubbed one of the House's "Four Horsemen of Privacy" by William Safire in his New York Times column.

"When cable companies, retail stores, and dentists' offices all require you to release your Social Security number to open an account or pay with a check, that opens the doors to invasion of our privacy," Kleczka continued.  "This legislation sends a clear message to those who would profit from them that our privacy is not for sale.

The bill is expected to be debated before the full House next week.