Several pending congressional proposals would restrict the sale, purchase, and display of Social Security numbers.

Eighty nine percent of Americans want state and federal lawmakers to pass laws restricting the use of Social Security numbers a Consumer Reports poll reveals. The poll also revealed 78 percent of Americans would prefer not to provide their number, but are concerned about the consequences of refusing to do so. Social Security numbers are routinely required by rent-to-own companies as part of the application process.

The poll showed that 87 percent of consumers have been asked in the past year to provide their Social Security number in whole or in part by a business or government agency.

Consumers Union released the poll results in comments filed with the Federal Trade Commission (FTC), which is studying the collection and use of Social Security numbers by the private sector. Several pending congressional proposals would restrict the sale, purchase, and display of Social Security numbers.

Many states have already enacted laws to restrict the printing on cards, mailing, display and Internet use of SSNs. For example, California enacted legislation in 2001 that generally prohibited businesses from engaging in certain activities with SSNs, such as posting or publicly displaying SSNs, mailing documents that display SSNs before the document is opened, printing SSNs on cards necessary for accessing products or services, or requiring people to transmit an SSN over the Internet unless the connection is secure or the number is encrypted.

Twenty one states have passed laws similar to California’s - Arizona, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Illinois, Maryland, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, Texas, Utah, and Virginia. Kansas and New Mexico have gone further and restricted the collection of SSNs.

Identity thieves are becoming more inventive in their methods of acquiring information. The U.S. Attorney for the Western District of Washington State today announced the arrest of an individual allegedly responsible for stealing dozens of consumer identities then using these identities to purchase goods for resale, counterfeit checks, and set-up fraudulent online bank accounts. Unlike previous ID and fraud cases, the man arrested allegedly used peer-to-peer or P2P file sharing networks to find his victim's tax returns, credit reports, and bank statements by searches made through P2P File Sharing Networks. He then used the victims' identities and bank records to purchase goods online, counterfeit checks, and to even file for a victim's 2007 tax refund which he used to fund online credit accounts.

There are an estimated 10 million cases of identity theft every year. SSNs are the key that unlocks the identity safe. Jeannine Kenney, Senior Policy Analyst with Consumers Union, publisher of Consumer Reports, said "It's time to restrict the availability of Social Security numbers to prevent this sensitive information from falling into the hands of identity thieves."

There are internet websites that sell Social Security Numbers, legally, for as little as $45. The poll suggests that the overwhelming majority of consumers want this and other risky practices to end. Consumers Union wants the government to tightly restrict businesses from requiring a SSN except where required by law or "where needed for credit, employment, tax compliance, or investment purposes.

Other poll findings:

-- In the past year, 60 percent of consumers have been asked by a financial institution or retailer issuing credit to provide their Social Security number, while 49 percent have been asked to disclose their number to health care providers.

-- Consumers also reported being asked to provide their Social Security number in the past year to a wide variety of other entities, including: employers or potential employers (44%); insurance companies (36%); government agencies other than the IRS or a state tax body (32%); college or other school (28%); service provider such as cable TV or cell phone carrier (26%); utilities (17%), and merchant or retailer (16%).

-- More than four in ten Americans (42%) have been asked to provide their full or partial Social Security number on the phone or internet to access goods or services or to verify their identity to customer service representatives.

-- One in seven Americans (14%) reported that they received postal mail (other than tax documents) bearing their own or a family member's Social Security number in the past year.

-- Fifty two percent of Americans carry a card in their wallets that has their number on it.

The Consumer Reports poll found that Americans are concerned about the widespread availability of Social Security numbers and how businesses are using them:

-- 78 percent would prefer not to provide their number, but are concerned about the consequences of refusing to do so.

-- 91 percent agreed they are more vulnerable to identity theft when a business has their number.

-- 89 percent agreed that companies should stop using Social Security numbers to identify customers.

-- 96 percent agreed that companies should not be able to sell them.

Since January 2005, data security breaches have occurred at companies, schools, and government agencies involving an estimated 159 million records of sensitive consumer information, often including Social Security numbers. An overwhelming majority of Americans want to be notified when this information is lost or stolen. Ninety eight percent agreed that companies and government agencies should always be required to notify them if a database containing their Social Security number has been compromised.

Virtually all Americans (97%) believe they should be provided with strong remedies to help thwart potential fraud if their Social Security number is involved in a data security breach. Among them:

-- 68 percent agreed that they should be given the ability to freeze access to their credit files at no charge to stop new accounts from being opened unless they unlock the credit file with a PIN. Outside the event of a data security breach, 97 percent of Americans want the ability to freeze access to credit files to prevent thieves from opening fraudulent accounts.

-- Only 12 percent preferred free credit monitoring when Social Security numbers have been involved in breaches, which is the remedy often provided by companies that fail to keep sensitive files protected.