Next, hearing examines race ways to prevent Identity Theft by Social Security numbers. Held by two house subcommittees, this is one hour and a half. Good afternoon and welcome to todays hearing on the federal governments use of Social Security numbers. Unfortunately, chairman sam johnson was unable to be here with us today to discuss one of his favorite topics, ending the unnecessary use of Social Security numbers. I know everyone here joins me in wishing chairman johnson a speedy recovery. I would like to welcome chairman heard of the oversight and government reform committees, i. T. Subcommittee at all of the i. T. Subcommittee members joining us in ways and Means Committee hearing room today. Back in 1936 when Social Security began issuing salsa skidding numbers, they were only used to track earnings and administer the Social Security program. Back then it wasnt much thought about keeping your number a secret, but today Social Security numbers are the key to the kingdom for identity thieves. Social security and Identity Security experts make a point of telling americans how important it is to protect their numbers. Social security numbers are valuable targets for Identity Theft because of their regular use by both federal government and private sector as a unique identifier, especially by the financial industry. Time and again we are reminded to protect our Social Security cards in order to avoid Identity Theft and to be careful with what documents we threw away in the trash. Our salsa skidding numbers are connected to so many personal aspects of our lives, from our Social Security benefits and finances to our medical histories and art education. But in recent years Privacy Concern have become more and more critical. When i was in law school back in the dark ages, our grades used to be posted on the wall to keep secret whose grades they were by Social Security number. Of course they were posted alphabetically. [laughing] so wasnt that hard to figure out whos was whose. In fact, one of my very good friends in moscows last name was ziglar and he was the smartest guy in the class and always made an a and blue the kurds of everybody just gave him a hard time, i do salsa skidding number was always the one at the bottom of the list. And kill not long ago i could probably recite to you his Social Security number. While colleges and universities have since changed their ways, the federal government has yet to fully catch up. Just over ten years ago under president bushs leadership, the office of management and budget issued a memorandum for the safeguarding of personally identifiable information, including the Social Security number. The memo called for federal departments and agencies to reduce or replace the use of Social Security numbers across the federal government. And what it should to make sure when Social Security numbers are used and collected, they are kept safe. The office of Personnel Management pack in 2015 is an example of what happens when the federal government collects Social Security numbers butdoes not keep them safe. That negligence comes with a cost to both the affected individuals and the taxpayers. The American People rightly deserve and expect that the federal government protect their Social Security numbers and only uses them when necessary. I thank all our witnesses for being your, i look forward to hearing from you about how your agencies are working to tackle this challenge and what more needs to be done. I now recognize Mister Larson for his Opening Statement thank you mister chairman and we join with you and wishing our dear friend and colleague sam johnson a speedy recovery. And we would like to add how fortunate we are on the ways and Means Committee to have two iconic american heroes serving on the same committee. When you think about sam johnson and his service to this country, and all that he endured, on behalf of this nation, nearly beaten to death by the vietcong, and then you think of john lewis and all he endured in this country, nearly to death in his own country. So we have these two iconic legends and im so proud to serve with sand and was happy to that he asked me to introduce with him the Social Security must of her identity loss and or hr 1513 that requires Social Security administration to remove beneficiary Social Security numbers from mailed notices. And Mister Johnson is i think everybody on the committee knows such an incredible gentleman. We also have taken every opportunity in the subcommittee to renew a request a, that i hope the committee will travel to plano texas for that and that we have an opportunity to inasmuch as Mister Johnson has indicated this is his last term, to have a meeting there in plano texas that would honor Mister Johnson and the committee on this particular topic area that he so vitally concerned about. I also want to recognize german hurd who is with us and the lead Democrat Robert kelly for being here. Our meeting room as well. Since 2000 1400s of millions of americans have lost their personally identifying information including their Social Security numbers to largescale cyber attack. The number was originally created in 1936 for the purpose of running the nations new Social Security system. However, its usefulness as a unique governmental identifier has made it near ubiquitous across government and the private sector. Today, Social Security administration has not suffered any largescale data breach ongoing vigilance is needed including support for updating and modernizing Social Security administration it structure. Altogether Social Security administration has been able to remove the nine digit ssn from about one third of the mailing it sends out, moving forward they have committed to removing them from the remaining notices wherever they revise the notice. This requires computer upgrades. The severe constraints on Social Security administrations budget however are preventing the agency from removing numbers from all notices right away. As they estimated it would cost 14 million to do so immediately rather than piecemeal. More alarmingly, since 2010 the number of beneficiaries has grown by 13 percent as the baby boomers and to retirement but Social Securitys operating budget has fallen by more than 10 percent in that same period. Social Security Administration simply cannot serve more and more people with less and less money each year. Social Security Administration has already been struggling to serve as beneficiaries at the level they deserve. My constituents are experiencing multiyear wait times on disability appeals and hearings. Their phone calls are going unanswered. They faced delays in collecting errors in their benefits and payments. To make matters worse, the president s fiscal year 2018 budget released today also attacks Social Security benefits for those with disabilities as much as 70 billion over 10 years and mister chairman i would like to submit for the record the 13 times that donald trump promisednot to cut Social Security and medicare and medicaid. President trump has promised repeatedly and explicitly throughout the campaign not to cut Social Security or medicare. This broken promise should be especially alarming to millions of people who voted for the president who spent their working lives paying premiums into the system believing those benefits would be there for them in retirement and should, or should they become disabled. Bottom line is this. Social security is the nations insurance program. It is not an entitlement. It is the insurance that individuals have paid for throughout a lifetime. The problems with Social Security at its core, this issue we are taking up today especially as it relates to theft is vitally important to protect peoples identity but equally important in the responsibility of this committee is its actuarial soundness. This is the most Efficient Government operated program in the history of the nation. Ask any privatesector Insurance Company if they could have a 99 percent loss ratio. They would die for that. And there is no product on the open market where you could produce old age and survivors benefits, disability and a pension plan and survivors benefits. That is the uniqueness of Social Security. That is why it is americas Insurance Plan that our citizens have paid for. This is not an entitlement. And will continue to make that point and i hope later this year, mister chairman and Mister Johnson has been very gracious about saying that we will get an opportunity to have hearings on our bills that will look at expanding and making solvent well into the next century Social Security for all of its american citizens. Its the nations insurance program. Thank you, i now recognize mister hurd for his Opening Statement thank you mister chairman. Two years plus ive been in congress ive learned one thing and that americans expect the federal government to protect their personal information. Sadly is evidenced by the data breach thats affected more than 20 Million People, this is not the case. American people deserve better from their government. Stolen, we know Social Security numbers can use to perpetuate Identity Theft or worse. We never know what a piece of information the bad actors need to achieve their goals that they are looking to steal money or threaten the security of our nation. The Oversight Committee held a hearing on the irs data breach where bad actors act into the department of educations income information from my Financial Aid application and use that information to file fraudulent tax returns with the irs. All the agencies that came before us today attain a wealth of information on americans, particularly Social Security numbers. Its essential that we reduce the use of Social Security numbers on printed forms and electronically in transition. In fact, tomorrow the house is scheduled to consider representative about details Social SecurityFraud Prevention act of 2016 which was passed on voice boot and prohibits agencies from sending numbers by mail unless the head of the agency teams it necessary. Social Security Administration has over hundred 75 million wage earners and record on pretty much everybody living and dead. And a treasure trove of information. The Veterans Administration has held records on 8 million veterans and their families. I can imagine few of the records as infinite as an individuals record. The va currently uses Social Security numbers as a patient identifier, protecting these numbers is critically important for all americans given that Social Security numbers are frequently exchanged with our most at risk members of society such as seniors, veterans. We must take up most caution to prevent the risk of exposure for these populations. On the recommendations that came out of the committees investigation of the opm breach was that agencies reduce their use of Social Security numbers in order to mitigate the use of threats. These agencies undertake this transition, its essential they rethink how they use, collect and store Social Security numbers. And indeed, all pieces of personal information they collect. Im proud to be here with my colleagues in the Oversight Committee as well as my colleagues on the ways and Means Committee in this important joint hearing to examine whats working and what we can do better. I hope we learn more about what efforts the federal government is taking to reduce its correction, use and storage of numbers and thank you for being here today and i look forward to hearing from our witnesses. Thank you, and i now recognize Mister Kaylee for her Opening Statement. Thank you chairman and Ranking Member larson holding this hearing. Originally created to track the earnings of individuals and to determine eligibility for Social Security benefits, the Social Security number has become the principal method used to verify an individuals identity. As a proliferation of their use poses challenges to Data Security and Identity Theft protection. In 2007 when the office of management and budget recognized that reducing the use of Social Security numbers that agencies could reduce the risk of Identity Theft, 10 years ago this week omb issued a memorandum directing agencies to reduce their use of Social Security numbers by examining where their collection was unnecessary and creating plans to end such collection within 18 months. Now on the 10 Year Anniversary of the guidance, we have the opportunity to examine the challenges that have signed the agencys efforts while learning from those agencies who have success in their initiatives. The Social Security administration no longer prints Social Security numbers on statements costofliving notices or benefit checks. Centers for medicare and Medicaid Services is in the middle of efforts to remove numbers from all Medicare Cards by april 2019. Likewise the department of Veterans Affairs has ceased printing Social Security numbers on prescription bottles, certain forms and correspondence, and is working to find an alternate means of identification that will maintain Patient Safety while reducing the visibility of Social Security numbers from patient wristbands. These concrete steps represent Real Progress and i commend agencies on their work so far. But barriers that still exist to fall implementation of omb guidance, one of those barriers is that it lacks strong coordinated approach from omb itself. Gao found the 2007 memorandum did not define a necessary use, nor did it outline requirements at this timeline for performance goals. As a result, many agencies were vague and subject to varied interpretation over the years. Additionally omb did not require agencies to update their inventories of Social Security number collection points, making it difficult to determine whether agencies were actually reducing collection in use. Omb must provide clear direction to agencies and strengthen its monitoring compliance. In addition to poor coordination by omb, federal efforts to reduce Social Security numbers used have faced other challenges. Agencies of statutorily and legally required to collect Social Security numbers of Identity Verification. And the Numbers Program and Social Security numbers remain the standard for