CD Deals Summary
Fed Holds Rates Steady But Signals One More Rate Hike - Strategies for Savers
Fed Meeting Preview and Deposit Rate Forecast - Sep 13, 2023
There Are 6,458 (or 7.9%) Fewer US Bank Branches Now Than in 2020 — Here Are the States, Metros That Lost the MostSocial Security Numbers Overused by Banks
It's understandable that banks and credit unions need our social security numbers when we open accounts. They need to report interest that we earn to the IRS. Unfortunately, many banks have overused the social security number, and that has increased the risk of identity theft. This issue is described in this New York Times Bucks blog article which has a review of a report from Javelin Strategy & Research:
The firm’s annual Banking Identity Safety Scorecard looked at the consumer-security practices of 25 large banks and credit unions. It found that far too many still rely on customers’ Social Security numbers for authentication purposes
One thing that angers me is when a bank or credit union requires social security numbers of beneficiaries that I want to include on my bank accounts. I know readers who have also had this problem.
As I described last week, specifying beneficiaries on bank accounts is an easy way to keep money out of probate. Most banks allow you to add one or more beneficiaries to an account. They typically label beneficiaries as "payable on death" (POD) or "in trust for" (ITF). Many banks only require that you specify the beneficiary names or a few other details like birth date or address.
One of my credit unions refused to add a beneficiary without the beneficiary's social security number. I was wanting to add my brothers as the beneficiaries, but I didn't want to carry their social security numbers. Also, I didn't want to disclose these numbers. I trust the credit union, but nothing is 100% secure. The more you give out these numbers, the more likely it could be found by hackers, and I don't want to be responsible for causing an identity theft issue for my brothers. I can understand that beneficiaries may need to provide their social security numbers if they claim the bank accounts.
Have you experienced banks or credit unions overusing social security numbers?
As for SS number use at banks, this issue is NOT unique to banks! I find it with businesses across the board.
As for some banks requiring you provide the SS number of beneficiaries, I have had that problem too. I think they don't even understand what they are doing, think the Feds require it like they do of the account holder - -and this always scares me to think they don't even have a clue what they are doing. Anyway, it is not at all reasonable as the account holder does not necessarily have access to someone else's SS number!
To make that point clear when I run into this problem, I tell the clerk that I want to name them as my beneficiary, so would they please tell me their SS number so I can list it! There is no reason why you should just simply have ANYONE else's SS number, not even a relative's. You do not need someone's SS number to make them your beneficiary -- they don't even need to have a SS number to be your beneficiary. Geez, they could be 2 years old, or for any number of other reasons never had gotten an SS number! In my case, I like to name my niece and nephew as my beneficiary, but I don't have their SS numbers and can't have them. I can't even ask, not that I would, because I do not want them to even know I am listing them as beneficiary -- I do not want it changing what they do in life (I have it noted at home on my accounts, so if I die, it would be seen and known then so they could claim it). It is not necessary to inform anyone that they are your beneficiary.
I SUPPOSE REGIONS BANK IS THE FISH. THE SELF ADDRESSED ENVELOPE PROVIDED WAS REGIONS BANK'S ACTUAL ADDRESS.
I will add, too many times I have had them say the federal government requires it because it requires they get the SS number of all account holders. I have to try to explain to these people that a beneficiary is not an account holder. They don't even understand -- even when you go up the ranks. They have no idea what they are doing, and that is really scary.
I think it's also a matter of VCU being a responsive and reasonable operation. I doubt you would have resolved this issue as expeditiously with many other institutions.
thanks for sharing
I just did this today at my local city water department!
For banking situations, I have only once been asked to provide the SSN of the beneficiary. I simply said she doesn't have one. There are many, many people without social security numbers and many account holders without social security numbers. They proceeded without issue.
on file and can’t pay after death ! They keep the money and will send them after 5 years to the unclaimed property or we need a court order to pay to the estate!
I do not know that is true!
everytime when making Deposits into our Corporate Bank Account.