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Identify Theft Can Affect Your Social Security Benefits

Recent Increase in Identify Thefts and How this Can Affect Your Social Security Benefits

In this age of high speed internet, accessibility to online records and the multitude of web-friendly services like people searches and online shopping, identify theft is becoming more and more prevalent. It's simple, there is more information readily available about you and it's becoming easier to access. Anyone with basic computer skills can perform an internet search and find out a substantial amount of background information on you. Identity theft can obviously result in improper use of your credit and theft of funds, but it can also become a huge obstacle in your case for Social Security Disability benefits.

In March, a computer and file server were stolen from California health insurance company, Medical Excess. The stolen property held in it the names, social security numbers, birth dates and medical/disability information of over 2000 individuals. These people became immediately at risk for identity theft. To add to the mess, the effected individuals were not even informed by Medical Excess of what had happened for three months after the incident occurred.

In May, thieves stole information containing names, social security numbers, birth dates and disability ratings on 26.5 million veterans. Since then, veterans groups have initiated law suits asking the VA to explain how this happened and demanding damages. Their complaint is that the VA failed to make safeguards despite notifications since 2001 that their controls over data were weak.

The reality is that no one is entirely safe from identity theft, and if you are applying for Social Security benefits, your social security number and name are vital parts of the determination process. In order to qualify for disability benefits, a person must not have engaged in substantial work since their alleged disability began. If you become a victim of identity theft and your social security number is used, any earnings made using your number will show up on the Social Security Administration records as your earnings. Therefore, your claim for benefits would be denied based on the fact that you are supposedly still working. Additionally, for claimant's who apply for Supplemental Social Security, where qualification is dependent on a low-income status, any earnings under your name that put you over the minimum income limits would disqualify your claim.

Some Social Security attorneys have recently been faced with the complications of clients' identity theft issues. Carlo Castro, a case manager stated that "in identity theft cases, our main concern is to unsure that the client's Social Security benefits do not end up going to the wrong person." If you have been a victim of identity theft and you are applying for Social Security benefits, please be aware of the earnings record that the Social Security Administration compiles on your case. Also, make sure to tell your attorney in the beginning of the process that you are an identity theft victim so that he/she can take appropriate steps in ensuring that your case for benefits is not adversely effected and your records are accurate.