Compliance and Legislation Update - Randomizing Social Security Numbers

The situation

Everyone is familiar with the basic format of a Social Security Number—3 digits, 2 digits, 4 digits.  Each of these sets of numbers have historically had significance more than simple randomization, though.  Since the inception of SSNs in 1936, the first three digits have indicated area, the second two have indicated group, and the final four have been random and are known as a serial number.  Beginning in 1972, when SSNs started to be issued by a central location (instead of the traditional field offices in each state), the three-digit area number indicated state as determined by the zip code provided on the application.

This means that, for as long as SSNs have been in existence, you could determine someone’s origin based on the first three numbers.  It’s as simple as 261 is a Floridian, 303 a Hoosier, 134 a native New Yorker, and 387 a Cheesehead.

The forecast

This will not necessitate a direct reaction from you, however this will cause some issues when it comes to SSN validation.  Currently, the SSA issues a monthly table called the High Group List that shows the assigned states and issuance range for the first five digits of an SSN.  This table is used to determine the validity of an SSN but, once the patterns are gone, this table can no longer be updated.

So what does this mean to you?  For the most part, our process will not change—let’s face it, the majority of the people receiving these new format SSNs won’t be entering the workforce for another 15 years at best.  The real difference is in those who are being issued new SSNs for any reason other than birth, from recovering from a stolen identity to immigration.