Owens wants action on ID theft

Guv says $50 fine is little deterrent for submitting false info

David Montero, Rocky Mountain News

Published July 6, 2006 at midnight

Text size

More Local News

Gov. Bill Owens called upon the legislature Wednesday to require employers to be more diligent when verifying the validity of Social Security numbers of those they hire.

On the eve of the legislature's special session to address illegal immigration, Owens rattled off a list of identity-theft transgressions in Colorado and said the current $50 fine levied against businesses who submit false Social Security numbers isn't enough of a deterrent.

"We're going to seek additional penalty from the legislature so that we can actually make this more than a cost of doing business," he said.

It costs the state more than $50 to levy the fine and prosecute the businesses submitting invalid Social Security numbers, he said.

Standing next to Rick Grice, executive director of the Colorado Department of Labor and Employment, Owens said that the numbers related to identity theft in the state are startling.

According to Grice's statistics, one Social Security number alone was reported by 57 different employers. Another Social Security number was found to be on the rolls of 50 different businesses.

During the first quarter of 2006, 368 Social Security numbers were filed more than six times by 2,828 employers, according to data combed over by Grice's department. Some numbers were obviously phony.

"The false numbers jumped off the pages of the reports by showing such numbers as 333-33-3333 and 444-4 - well, you get the picture," Grice said.

Grice said he didn't know what kind of fine would be useful as a deterrent to employers submitting false Social Security numbers to the Labor Department, but that he suspects any new penalty would begin with a warning to the employer to check all workers' identification.

According to data provided by the governor's office, Colorado ranked fifth in the nation in identity-theft cases per 100,000 people.

Owens provided examples of identity theft victims - including an 84-year-old woman in Grand Junction who was deemed ineligible for federal housing assistance because her Social Security number was being used in Denver at a variety of jobs, making her income too high to qualify for the housing.

He also said a 10-year-old boy in Douglas County had his Social Security number used at 17 different jobs.

Owens, who recently signed legislation criminalizing identity theft and authorizing the formation of the Identity Theft Commission, suggested that employers use a federal basic pilot program run by the Social Security Administration and the Immigration and Naturalization Service, saying it is a "good first step," despite some flaws in the system.

Donnah Moody, vice president of government affairs at the Colorado Association of Commerce and Industry, said that the pilot program - designed for employers to verify the legality of Social Security numbers - isn't ready yet.

"I don't think employers need to be the guinea pig for a system that's not functioning," Moody said.

"The General Accounting Office has even said it's not ready for prime time."

monterod@RockyMountainNews.com or 303-892-5236

Subscribe to the Rocky Mountain News