Taxes and Social Security Numbers: How the Equifax Breach is Shaping Our Future

All across the country, many Americans have started to feel the effect of the new tax laws. But fewer have considered how another, equally major event that occurred last year could affect their taxes – namely, the Equifax breach. With nearly half of the American population having personal data exposed by the breach, it’s entirely possible that thieves have collected your Social Security number and could use it to file taxes in your name or claim your tax return.

We’ve discussed how you can mitigate the possibility of tax scams and manage the situation, should one occur. And while that’s an important conversation to have, it overlooks the deeper problem at hand: Is it wise to continue using Social Security numbers as a means of identification in the first place? Certainly, it’s convenient – but it’s precisely that convenience that makes it so easy for data thieves to obtain this information and exploit it.

Since the Equifax breach, many voices – including the White House – have argued in favor of replacing Social Security numbers, and the suggestions are as intriguing as they are wide-ranging. Giving out new numbers that are separate from Social Security accounts is one potential solution, but such numbers would still be subject to hacking. Biometrics, including fingerprinting and voice or facial recognition, are another common suggestion. But with our faces and voices plastered all over social media and our fingerprints left on everything we touch, thieves could easily exploit this system as well. Plus, while you can replace a number, if a fingerprint or image of your face is breached, neither is replaceable.

Other, more complicated systems are also on the table. Some have floated behavioral recognition, by which a computer monitors behaviors such as typing patterns and later uses it to assess whether or not the person behind the screen is who they say they are, as a possibility. Another option is blockchain: the Republic of Estonia has implemented such a system for all different kinds of from medical services to voting.

There are, in short, many possibilities. And while there is no one definitive answer, our continued use of Social Security numbers as unique identifiers is no longer an option. Having our personal, medical and financial lives tied to a single nine-digit number has made Americans inexcusably vulnerable to identity fraud. We must find a solution to identify our citizens without putting them at risk.

While federal leaders continue to deliberate on what the best solution is, it’s in your best interest to keep your Social Security number to yourself and to file your taxes early. It won’t just minimize the hassle of filing; it’ll minimize the hazard of theft as well.