SSA  provides two methods for driver licensing agencies to verify SSNs: batch  and on-line. Although states’ use  of SSA’s on-line service has increased steadily over the last several years,   5 states submitted over 70 percent of all on-line verification requests. Twenty-five States Have Used the Batch or On-line Methods

As of March 2003, driver licensing agencies in 25 states have used the  batch or on-line method to verify SSNs with SSA. Over the last several years,  states estimated submitting over 84 million requests to SSA using the  batch method. States Weigh Considerations in Deciding to Use SSA’s Verification Service

Various factors—such as costs, performance problems, and state  priorities—may affect states’ decisions about whether or not to use SSA’s  verification service. Weaknesses in SSA’s Design and Management of the SSN Verification Service Has Limited Its Usefulness

Weaknesses in the design and management of SSA’s on-line verification  service have contributed to capacity and performance problems and  ultimately limited its usefulness. SSA Has Not Focused on Other Key Weaknesses in the Service It Provides States

Despite SSA’s recent efforts to focus more management attention on its  verification service, problems regarding the high nonmatch rate and states’  continued vulnerability to fraud associated with the use of SSNs of  deceased individuals by driver license applicants remain. Unlike the on-line service, SSA does not match  batch requests against its death records. To further assess states’  vulnerability in this area, our own investigators, working in an undercover  capacity, were able to obtain licenses in two batch states using a  counterfeit out-of-state license and other fraudulent documents and the  SSNs of deceased persons. States May Use Safeguards Beyond Visual Inspection of Identity Documents, but Lack a Systematic Means to Share All Driver Records

States may use tools beyond visual inspection to verify documents, but  lack the ability to systematically exchange identity information on all  drivers with other states. Although driver licensing agencies rely primarily  on visual inspection of documents to verify applicants’ identity  information, states may employ more extensive measures such as using  independent sources to corroborate applicants’ identity information. For noncitizen  applicants, staff also review a myriad of passports and U.S. immigration  documents. Several states we visited made extensive use of computer systems to  prevent identity theft and fraud. Social Security: Government and Other Uses of the Social Security  Number are Widespread.
Why GAO Did This Study

Since September 11, 2001, more attention has been focused on the importance of identifying people who use false identity information or documents to obtain a driver license. The Social Security Administration (SSA) offers states a service to verify social security numbers (SSNs) collected during the driver licensing process. This report examines states' use of SSA's verification service, factors that may affect the usefulness of the service, and other tools states use or need to verify identity.

What GAO Found

GAO found that 25 states have used either one or both of the methods SSA offers for requesting SSN verification. Over the last several years, states used the batch and on-line method to submit over 84 million and 13 million requests, respectively. Although on-line use has been increasing, usage varied significantly among states, with 5 out of 18 states submitting over 70 percent of all requests. States decide to use SSA's service based on various factors, such as costs and state priorities. Weaknesses in SSA's design and management of its SSN verification service have contributed to capacity and performance problems and limited its usefulness. While SSA recently increased systems capacity and reduced outages, problems remain. For example, the level of service cannot be assessed because SSA has not established key performance measures. States are concerned that the high verification failure rate adds to their workloads. Several states noted that some of the failures could be prevented if SSA disclosed more information to states. States using the batch method are vulnerable to licensing individuals using SSNs of deceased persons because SSA does not match requests against its death files. In fact, GAO obtained licenses using fraudulent documents and deceased persons' SSNs in 2 states. Driver licensing agencies rely primarily on visual inspection of documents such as birth certificates, driver licenses, and U.S. immigration documents to verify applicants' identity. While states may use safeguards beyond visual inspection to verify documents, they lack the ability to systematically exchange identity information on all drivers with other states. Without a means to readily share all driver records, states face a greater risk for identity theft and fraud in the driver licensing process. A recent Department of Transportation report to Congress identified options that would provide states a system for exchanging records on all drivers and could help mitigate identity fraud.