Credit reports don't help
How can a consumer unravel the secret life of their Social Security number? In fact, since neither the government nor private industry is speaking out, there is no way. Asking the Social Security Administration or IRS won't help.

Most consumers only discover the situation when their imposters take the next step up the economic ladder, securing credit using the stolen number. And even then, the victims may not be told unless the imposter misses a loan payment or otherwise sends creditors hunting for their money. That's because thanks to a quirk in the credit system, credit obtained by imposters using their real name but a stolen Social Security number doesn't appear on the victim's credit report.

This so-called "SSN-only" identity theft poses a unique set of problems for consumers and the nation's credit bureaus. If credit is granted by a lender, an entry is made in credit bureau files -- but not disclosed to the consumer who properly owns that number. Even when a consumer gets a copy of her credit report, such fraudulent accounts don't appear on the report. Instead, the bureaus create what are sometimes called "subfiles," which act like separate identities in their databases.

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In fact, consumer credit reports obtained from the credit bureaus expressly leave off this kind of fraud. If an imposter is using a consumer's Social Security number but his own name and address to open up fraudulent accounts, a consumer-disclosed credit report won't include that information. The rightful number holder will never know.

Lenders sometimes see theft evidence
A lender, however, might find out — even see all the accounts an imposter has opened using a victim's Social Security number.

Millet, who has sued the credit bureaus, said her husband was denied a credit card even though his credit report was spotless, and he had a superb credit score of 700.

Businesses interested in giving credit to a consumer can pay to see any activity connected to a particular Social Security Number; consumers cannot. All three credit bureaus sell specialized services with names like "Social Search," that track the entire history of a Social Security number. The services are not available to consumers.

Privacy concerns prevent consumers from seeing a Social Security number-only report, said Equifax's David Rubinger.

"Companies that have signed agreements with us can access data like that. But we can't let every consumer see it," he said. It would be difficult for the firm to establish definitively who the rightful Social Security number holder is, he said. And there would still be potentially sticky privacy issues related to revealing the imposter's information.

Don Girard, a spokesman for Experian, acknowledged his firm had seen the problem, but said it was extremely rare.

"I can tell you we have quite a few people looking into this," he said.

Trans Union did not respond to requests for interview for this report.

'Total purgatory' for taxpayers
Frustration can mount for victims of this kind of fraud. Eventually, the government agencies involved do catch up with the legitimate consumers; but often, not until they are looking for money. Victims can have trouble getting disability or unemployment benefits, Utah's Hamp said.

Others find the Internal Revenue Service on their backs, looking for payment of back taxes for wages earned by their imposters. Some see refunds held up by the confusion; others see their wages garnished.

Trevino found herself in a financial nightmare. All those imitators made a mess out of her work history, her Social Security benefits records and her credit report. She was haunted by bills and creditors. She received threatening letters from the IRS, asking her to pay taxes on money earned by her imposters. She was told to re-pay unemployment benefits she had received, after the government discovered she was "working" while drawing benefits.

"At the time I'm thinking, 'I'm unemployed. I wish I could have at least one job, let alone all these different jobs,’" she said.

"This is total purgatory that this puts U.S. citizen taxpayers into," said Marti Dinerstein, president of Immigration Matters, a public-policy analysis firm in New York. "It's a nightmare to get it stopped. And when they do get it stopped, it is only for that particular year. The whole mess could begin anew next tax season."

But neither the Social Security Administration nor the IRS tells consumers that something unusual is happening with their Social Security numbers. It seems consumers are the last ones in on the joke.

“This is the schizophrenia of the federal government," Huse, the former Social Security inspector general said. "The Homeland Security people are screaming about the accuracy of records, and you have the IRS taking money from wherever it comes."

CONTINUED: Mismatches go unchecked

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