What does your Social Security Numbers mean?

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What Your Social Security Number Means Today

Your nine-digit Social Security number (SSN) is one of the most important pieces of personal information you will ever have. It is the key to your financial identity, and protecting it is a critical part of your overall asset protection strategy. But what do the numbers actually mean?

The Old System vs. The New Reality: SSN Randomization

For many years, the structure of a Social Security number was not random. The first three digits, or “Area Number,” corresponded to the state where the card was issued, and the middle two digits, or “Group Number,” were assigned in a specific sequence. However, this predictable system made it easier for identity thieves to guess and steal SSNs.

To combat this risk, the Social Security Administration (SSA) changed its process. Since June 25, 2011, all new SSNs have been assigned randomly. This means that for anyone who received a number after this date, including most children and young adults today, the digits no longer have any geographic or sequential meaning. While older, pre-2011 numbers still reflect the original system, the era of predictable SSNs is over.

Why Protecting Your Number is More Important Than Ever

Your SSN is a direct link to your financial life. In the hands of a criminal, it can be used to open new lines of credit, file fraudulent tax returns, and steal your identity. Seniors are often the primary targets for scams that attempt to trick them into revealing their Social Security number over the phone or online.

It is a critical rule to remember: the Social Security Administration will never call you to ask for your number. Any unsolicited call, text, or email asking you to “verify” your SSN is a scam.

Connecting Your Security to Your Overall Plan

Protecting your personal information is the first line of defense in a good financial plan. It is part of the same mindset that goes into protecting your assets from the high cost of long-term care and ensuring your legacy is secure. When you think about the importance of your Social Security, it’s a good time to also consider your overall financial picture and whether you have a sufficient plan in place.

A comprehensive plan to protect your assets and your future considers all of these risks. Call our office at (919) 256-7000 to schedule a consultation.