If you are one of the almost 100% of Americans with a Social Security Number (SSN), it is more likely than not that a social security hack or data breach has compromised your information over the years. Jay Jacobs, a Verizon data breach analyst, told NPR in 2015 – almost ten years ago – that he estimated hacks had already compromised 60% to 80% of Social Security numbers, and that was before the 2017 Equifax breach affecting 147 million people.
Hackers have been targeting databases with sensitive (aka valuable) personal information for decades. A social security number hack poses a significant risk, as hackers exploit these stolen identifiers for identity theft, fraud, and more.
The healthcare industry jumped from 10th to 7th place in the industries ranked by cyberattack volume in 2020. Ransomware attacks on hospitals doubled during the global pandemic.
Given the frequency of breaches affecting financial institutions, healthcare providers, and government databases, some experts estimate that most American adults’ SSNs have likely been compromised at some point. If you’re wondering how to check for a social security hack, monitoring your credit reports and subscribing to identity theft protection services can be a good starting point.
The Most Recent Social Security Hack: The USDoD Breach
The most recent high-profile bad news came in April 2024. The USDoD hacking group claimed that they had stolen 2.9 billion personal records, including Social Security Numbers, from National Public Data (NPD), a significant repository of sensitive information.
In August, media reports began circling that the USDoD, a hacking group known for targeting government and corporate systems, claimed to have accessed the personal records of 2.9 billion individuals from National Public Data in April. This social security hack raised immediate concerns among millions of Americans, prompting many to ask, “What to do about a social security hack?”
Upon closer examination, the 2.9 billion seems to refer to individual records, not unique people. Vox reports that the National Public Data hack stole about 272 million Social Security numbers.
In this instance, the court documents use the terms “records” and “individuals” interchangeably.
Upon closer examination, the 2.9 billion seems to refer to individual records, not unique people. Vox reports that the National Public Data hack stole about 272 million Social Security numbers.
Many records in public databases are duplicates, containing information about the same person (e.g., multiple addresses, old financial accounts). Nevertheless, the scale of the breach is staggering, including Social Security Numbers, dates of birth, and other sensitive details that hackers can use for identity theft, fraud, or other malicious activities.
Early reports suggest that weak access controls and outdated encryption methods made National Public Data an attractive target for cybercriminals. As the investigation unfolds, it raises pressing questions about the vulnerability of Americans’ data, particularly Social Security Numbers.
This latest breach adds to a growing list of data leaks exposing SSNs, highlighting the inherent risks of relying on this decades-old identifier system in an increasingly digital world.
Social Security Hack and the Outdated SSN System
The Social Security Number (SSN) has been a cornerstone of American identity since 1936. New Deal policy authors designed the SSN to track workers’ earnings and determine their eligibility for Social Security benefits.
Over the decades, however, the use of SSNs expanded well beyond their original purpose. Today, government agencies, financial institutions, healthcare providers, and employers use SSNs to verify identities, process transactions, and manage sensitive personal data.
This broad adoption has turned SSNs into a de facto identifier for nearly every aspect of American life, from opening bank accounts to filing taxes.
With this ubiquity comes a significant downside: the SSN was never intended to serve as a secure, multi-purpose identity tool. As early as the 1970s, concerns began to surface about the risks of relying on a static, easily accessible number for such a critical role.
In recent years, high-profile data breaches—such as the Equifax breach of 2017 and now the National Public Data hack— exposed the weaknesses of the SSN system. As these breaches multiply, it has become increasingly clear that the SSN is an outdated system desperately needing reform.
What to Do About a Social Security Hack
A vital issue with SSNs is that they are static identifiers. Once compromised in a social security hack, individuals cannot easily change their numbers, leaving them vulnerable for the rest of their lives. To protect yourself:
- Use identity theft protection services to catch potential misuse early.
- Monitor your credit reports for unauthorized activity.
- Consider placing a credit freeze or fraud alert on your accounts.
The Call for a Better Identifier System
This widespread exposure underscores the vulnerabilities of the SSN system and highlights the urgent need for more secure identification methods. Security experts, policymakers, and privacy advocates have long called for an alternative that offers more robust protection against identity crimes and is better suited to modern technological demands.
A vital issue with SSNs is that they are static identifiers. Once compromised, you cannot easily change your Social Security Number, leaving individuals vulnerable for the rest of their lives.
Additionally, SSNs are widely shared, often unnecessarily, across different sectors. This creates multiple points of vulnerability in countless databases with varying degrees of security.
Several groups have proposed moving toward a more secure and dynamic identifier system. For example, multi-factor authentication (MFA) systems, which require a combination of something you know (e.g., a password), something you have (e.g., a phone), and something you are (e.g., biometric data), have gained popularity for online account security.
While these approaches offer improved security, they still rely on centralized databases that hackers can target.
How Blockchain Could Secure Personal Identifiers
One of the more promising alternatives to the SSN is the concept of digital identity solutions. These systems, backed by blockchain technology, allow individuals to control their data and verify their identity without exposing sensitive information like SSNs.
This enhances security and promotes privacy and data ownership, empowering individuals in the digital age.
Blockchain offers a way to increase the security of personal identifiers. Instead of storing sensitive information in a single, hackable database, blockchain distributes encrypted data across a network.
Only authorized parties can access this data, and the network must verify any changes before they are recorded, making it much harder for hackers to alter or steal information.
Current Blockchain Identity Pilots
Several governments and private organizations are already piloting blockchain-based identity systems, offering a glimpse into the future of personal identification.
For instance, Estonia has pioneered using digital identities backed by blockchain. Their e-residency program allows citizens and residents to securely sign documents, access services, and perform financial transactions without using traditional identification numbers.
In addition to Estonia’s e-residency program, countries like Switzerland and Canada are piloting digital identity systems powered by blockchain technology. These programs aim to give individuals more control over their data while enhancing security and reducing fraud.
In the private sector, companies like IBM and Microsoft are developing blockchain-based identity solutions that could eventually replace systems reliant on SSNs. These solutions use decentralized identifiers (DIDs), which allow individuals to prove their identity without exposing sensitive information.
These developments underscore a growing recognition that the SSN system is fundamentally flawed and that new, more secure alternatives are necessary to protect individuals’ identities in the digital age.
Preventing Future Social Security Number Hacking
The National Public Data hack is just the latest in a long series of breaches that have exposed the vulnerabilities of the Social Security Number system. For decades, SSNs have served as the primary personal identifier for millions of Americans. Still, as data breaches become more frequent and sophisticated, the need for a better solution is clear.
Blockchain offers a promising alternative. By decentralizing the storage of sensitive information and allowing individuals to control their data, blockchain-based identity systems could provide the security and flexibility that SSNs lack.
Speaking of security, if you trade crypto assets, ZenLedger can help you stay secure and organized for tax time. Our platform automatically aggregates transactions across your wallets and exchanges, computes your capital gain or loss, and generates the paperwork you need to file. This paperwork includes personal tokens you issue or purchase and the income or loss they generate.
The above is for general info purposes only and should not be interpreted as professional advice. Please seek independent legal, financial, tax, or other advice specific to your particular situation.
