State AGs Push Feds to Update Social Security Databases

A multi-state coalition of 43 attorneys general have submitted a letter calling for the prioritization of updates to the Social Security Administration's (SSA) electronic databases and verification methods, so financial institutions can instantly check for and flag synthetic identity theft, reports SCVNews . The law requires banks and their service providers to pay fees to cover the cost of developing and operating the SSA system, but delays in the verification process gives criminals an opportunity to use stolen identities before an incident is identified. "It's time to move the SSA's verification technologies into the 21st century to keep up with identity thieves who are exploiting our vulnerabilities," argues California Attorney General Becerra. "We urge the SSA to prioritize making its systems as nimble and strong as possible, when the funding is available from banks and others that will use the system, to combat this growing problem." The current system does not permit institutions real-time identity checks, and miscreants target the most vulnerable, especially children and recent immigrants with no credit histories. The letter's signatories recommend the SSA deploy electronic signatures or other verification methods, so institutions can confirm identity and flag theft in real time.