By Mark Nestmann
When I recently moved to Phoenix, Arizona—the city with the highest incidence of identity theft in the U.S.—everyone wanted my number. My social security number, that is. And they wanted to know where I lived.
Of course, being the privacy fanatic that I am, I didn’t reveal this information. But along the way, I found myself in some very interesting situations—including one where a used car salesman gave me legal advice that, if I had followed it, might have led to my arrest for money laundering.
In any event, I managed to rent an apartment, set up utility services, obtain medical and auto insurance, and purchase a vehicle—all without revealing my SSN. I also managed to do most of these things without revealing my residential address.
If you’re a new Sovereign Society member, you might be wondering, “why bother?” Here are a few reasons—and then I’ll tell you how I won a small victory in the privacy wars.
Why not reveal your SSN? The main reason you should avoid disclosing your SSN is that it’s the single most important piece of information identity thieves use to impersonate someone. Armed with a legitimate SSN, an identity thief can, in many situations, march into a department store, fill out a credit application, and leave 10 minutes later with a big screen TV, leather sofa or anything else he can purchase on credit. If the SSN he’s using is yours, a few weeks later, you’ll start receiving bills for purchases you never made.
And, while it’s certainly possible for an ID thief to find your SSN on the Internet, it’s even easier if he can steal it from a commercial provider—a utility company, a car dealership, a landlord, or whoever. Indeed, in 2005, an astonishing 56.3 million Americans had their identities exposed in security breaches by companies and public agencies, according to the ID Theft Resource Center. In many of these cases, the SSN was the key piece of information exposed.
Why not reveal your residential address? Once again, this is a very useful tidbit of information for identity thieves. But, it also makes it much more convenient for stalkers, thieves or anyone else who might wish to harm you to find you when you’re most vulnerable—at home, relaxing with your family, sleeping, etc.
Just ask Rebecca Schaefer, or rather, her heirs. When Ms. Schaefer, a California actress, answered the door to her home several years ago, she found one of her “fans” pointing a gun at her…and died from the gunshot wounds he inflicted. Her assailant had merely walked into the California Department of Motor Vehicles, looked up her residential address and with that information paid her a fatal visit.
While a federal law now prohibits such disclosures, most Americans continue to list their residential address on their drivers’ licenses, their personal checks, their stationary, and have mail delivered to their homes.
True, it’s easier to simply give in and provide all the information your landlord, insurance company or whoever is demanding. But, it’s not always necessary.
Still, don’t count on anyone to explain this to you unless you challenge them. You have to be your own advocate. You also have to understand what the law requires and what it doesn’t require. If you’re not sure, ask; e.g., “Are you telling me that in order to obtain health insurance, there is a legal requirement under state or federal law to provide you with my SSN?” Here’s how I did it:
- Don’t own property in your own name. Home ownership records are now computerized in almost all states. At the click of a mouse, you can match the name of homeowners with addresses. Thousands of companies offer similar services. Using a corporation, limited liability company or (in some states) a “land trust” to hold property offers some protection against disclosure of your identity, but be sure to review the tax consequences of this strategy with your tax advisor. Renting your residence (as I do) offers even more privacy, because there is no nationwide database of renters (unless you have the misfortune to be classified as a “problem tenant”).
- List all utility services in a company name. The company should actually exist; many utilities will insist on seeing the “Articles of Incorporation” or other official notification that the company is in good standing before setting up service. If you rent your home, find a landlord that will let you just make one monthly payment that includes all utilities, including local phone service. Use pre-paid calling cards for long distance calls. Such arrangements are particularly common in resort areas, such as Phoenix.
- Receive your mail at a post office box or a mail receiving service, not at home. This not only avoids the need to disclose your residential address to persons you don’t know (e.g., when you’re doing business by mail order or over the Internet), but provides a much more secure location to receive your mail than an unlocked mailbox. However, you’re required to disclose your residential address when you set up service. But this information is protected from casual inquiries, although it is available to law enforcement agencies.
- You may be able to obtain medical and vehicle insurance without revealing your home address. Having a mail receiving service in the same zip code as your residential address may be sufficient. Be prepared to pay higher rates, though. And instead of disclosing my SSN, give out your driver's license number-much less useful for identity theft.
- Avoid clearly unnecessary disclosures of personal information. When I arrived back in Phoenix, I decided to join a fitness club. The two that I visited both insisted on SSN disclosure as a condition for membership—so I now drive to a local community center where I pay US$2 each time I use the fitness center.
How NOT to Buy a Used Car Privately
Now, what about that used car salesman? When I went car shopping a few weeks ago, I found a suitable vehicle at a used car lot in north Phoenix. Since I didn’t plan to finance the vehicle, I assumed that it would be a simple matter to conclude the transaction and drive off with the vehicle—after the dealer verified sufficient funds, of course.
“Well, we still need some additional information,” the salesman informed me. “You’ll need to fill out part of our credit application even if you don’t take out a loan.” I glanced at the lines highlighted on the form. The information requested included—you guessed it—my SSN and my residential address.
“Why is this information necessary?” I asked. "I’m not borrowing any money, so why do I need to fill out your credit application?” The salesman disappeared into an office to consult with a manager. A few minutes later, both of them walked back out. The manager spoke first. “We’re required to obtain this information because of the USA PATRIOT Act. When someone buys a car from us, we need to know their SSN and other information.”
“I didn’t know that,” I replied. “However, I’m also a law-abiding citizen. If you can show me the part of the PATRIOT Act that requires disclosure of this information, of course, I’ll disclose it.” The sales manager and salesman conferred again. Then the salesman told me, “You just have to pay us with cash. Then we can do everything without any additional paperwork.”
Was I being set up? The reality is just the opposite of what the salesman was telling me—large cash transactions with car dealerships and many other businesses must be reported to the U.S. Treasury. Had I followed his advice, I might be writing these words from jail, as violations of these reporting requirements are punishable by up to five years imprisonment and a US$500,000 fine.
“I’m leaving,” I told him. “What you’re telling me is the exact opposite of the law. If I did what you’re advising me to do, I could go to jail.”
I pushed back my chair and stood up. At that moment, the sales manager emerged, waving a piece of paper. “OK, we can do it,” he told me. All the computer wants is a nine-digit number. Give us your telephone number and we’ll insert the first nine digits in the SSN field. As for your residential address, we can just use the address on your driver’s license.”
I sat back down. After giving the sales manager my voice mailbox number and my driver’s license (on which the address of my mail receiving service appears), we shook hands. We had a deal.
Could I have avoided this ordeal? Definitely. My mistake was doing business with a car dealer. I should have purchased a vehicle from a private owner, whom I could have purchased a vehicle from without the drama I experienced at the used car dealership.
Chalk one up for experience. I’ll remember next time I buy a vehicle—and you should, too.
Mark Nestmann is the author of the newly-released book, Austrian Money Secrets. To learn more about how going offshore could protect your wealth and ensure greater privacy, check out our Sovereign Society Bookstore.
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