How Much is Your Social Security Number Worth?

Your social security number is one of your most valuable personal identifiers. It is linked to your finances, medical records, employment history, and more. But have you ever wondered – how much is your social security number actually worth? Keep reading to find out.

What is a Social Security Number?

A social security number is a 9-digit number issued to U.S. citizens, permanent residents, and temporary residents for tax and identification purposes. The first three digits are known as the area number and indicate the state where the SSN was issued. The next two digits are the group number, and the final four digits are the serial number.

Social security numbers were first introduced in 1936 as part of the Social Security Act. Their purpose was to track individuals’ wages and eligibility for Social Security benefits. Today, SSNs are used for much more, including employment verification, medical records, banking, loans, and more.

Your SSN Has Value on the Black Market

Unfortunately, the widespread use of SSNs in our society has also led to rampant identity theft. Your SSN is a key that can unlock access to your financial and medical information. For criminals, it has significant value on the black market.

• According to Experian, an individual’s SSN can sell for up to $1,000 on the dark web. Full identity profiles containing SSNs, names, birthdates, etc. can fetch up to $2,000.

• The FBI estimates that identity thieves steal around $24 billion each year in the US alone. SSNs and other PII are often the enablers.

• Children’s SSNs are particularly valuable as their credit is clean. SSNs for children can sell for up to $60 each on the black market.

So your SSN definitely has monetary value to identity thieves. But what about legitimate value?

Your SSN Enables Access to Federal Benefits

The main value of your SSN comes from the benefits and services it provides access to

• Social Security Benefits – Your SSN is required to collect Social Security retirement, disability, and survivor benefits. The average monthly retirement benefit is currently $1,546. Over a 20 year retirement, that can add up to nearly $400k in value enabled by your SSN.

• Medicare – You must have a SSN to enroll in Medicare at age 65. Medicare provides heavily subsidized health insurance. In 2021, the average Medicare enrollee received $7,500 in benefits.

• Medicaid – Medicaid provides health coverage to low-income individuals. To qualify, you must provide a SSN. On average, Medicaid pays out approximately $8,900 per enrollee per year in benefits.

• Disability Benefits – Social Security Disability Insurance and Supplemental Security Income both require SSNs to qualify for benefits. Average SSDI payments are around $1,200 per month.

• Tax Refunds – You must have a SSN to get a tax refund from the IRS. The average federal tax refund in 2021 was $2,869. State tax refunds can provide hundreds more.

Your SSN enables access to thousands of dollars in benefits each year. It’s difficult to put an exact dollar figure on the cumulative value over one’s lifetime, but it’s certainly substantial.

Your SSN Verifies Legal Work Status

In addition to benefits access, your SSN is also required for legal employment in the United States. It allows employers to report your wages to the Social Security Administration and IRS.

• Most jobs require your SSN for payroll and tax purposes. Without it, you cannot be legally hired.

• Self-employment income also must be reported under an individual’s SSN. Otherwise, you cannot pay into or collect Social Security later in life.

• SSNs help prevent work duplication and enable the government to track the employment history of U.S. workers.

So while your SSN does not have an exact dollar value itself, it enables you to earn wages through legal employment. For most workers, that will amount to at least hundreds of thousands of dollars over the course of a career.

Protect Your Valuable SSN

Your SSN enables access to several monetary benefits, as well as legal employment and credit. While it’s impossible to put an exact dollar figure on its worth, it’s clear that your SSN has tremendous value.

That’s why it’s so important to protect it from misuse. Here are some tips:

• Don’t carry your social security card in your wallet. Keep it in a secure place.

• Don’t give out your SSN unless absolutely necessary.

• Check your credit reports regularly for suspicious activity.

• Use strong passwords and multi-factor authentication whenever possible.

• Shred documents containing your SSN before disposal.

• Educate your children early on about SSN safety.

• Consider SSN protection services to monitor for fraud.

Your SSN may not have a fixed price tag, but enabling access to thousands in benefits and income makes it one of your most valuable assets. Treat it that way.