SSN Verification

SSN verification works by cross-checking the person’s provided SSN, name, and date of birth against authoritative databases, such as the records from the Social Security Administration (SSA). This helps verify that the SSN is valid and matches the person’s other provided details, confirming that they are indeed the owner of the SSN. It also confirms that the SSN has not been misused, forged, or assigned to multiple people.

The Social Security Administration manages the Social Security Number Identifier Service, a free online tool for companies using SSNs for wage reporting or employee verification. This service allows you to verify up to 10 SSNs and names in a single check, making it a convenient option for businesses that require only basic background checks. 

Otherwise, for complete compliance, other verification methods should be used, as SSN verification alone without document or database checks can’t be a valid tool guaranteeing a person’s legitimacy 100%. 

SSN database verification works by cross-referencing a user’s provided information against official records, such as the official US SSN database maintained by the Social Security Administration:

• If the details match: the user is granted access and onboarded. 
• If not: additional KYC checks may be required based on the company’s risk tolerance, industry standards, jurisdiction, etc. 

Various official databases with legitimate, up-to-date records, including SSN data, are used for verification. This includes credit bureaus (for example, Experian), records from the IRS (to assess tax records), or the database from the Department of Homeland Security (DHS) for employment verification. The databases differ depending on who uses SSNs for verification, whether it’s a bank, a government agency, or a private company using this process for verifying employees. 

Since SSNs were not designed as universal identifiers, they should not be treated as a single factor in a company’s identity verification process. To ensure compliance with KYC and anti-money laundering (AML) regulations, businesses must incorporate additional verification measures, like cross-referencing a person’s personal data, such as their name, address and SSN with one or more official databases (both internal and external, such as a government registry and a company’s internal system where they store existing user KYC data). 

Verifying Social Security Numbers is essential for preventing fraud, ensuring compliance, and maintaining accurate customer or employer records. SSNs are notoriously forged and used for loan fraud or to open fraudulent bank accounts, including other financial crimes, such as tax evasion and money laundering. 

By conducting proper KYC checks, which require both ID document verification and SSN verification, companies can prevent fraud and fraudulent transactions altogether (when combined with ongoing monitoring practices, not just a single verification check at the account opening process).