In our evolving society, “identity theft” has increasingly become an issue of concern.  Recently, the Michigan legislature responded with the “social security number privacy act”, effective March 1, 2005 (PA 454 of 2004; MCL 445.81 et seq.). 

The Act prohibits certain intentional uses of social security numbers of an employee, student, or other individual; and particularly focuses on third-party display or use of more than 4 sequential digits of a social security number. 

To assure implementation of the intended protections, the Act also requires persons who obtain 1 or more social security numbers in the ordinary course of business to create (and disseminate to employees) a privacy policy ensuring the confidentiality of social security numbers.

The Act contains several common sense exceptions, and allows use of social security numbers where authorized or required by statute, court order or pursuant to legal process; use by a Title IV-D agency, law enforcement agency, court or prosecutor; use to investigate an individual’s claim, credit, criminal, or driving history; use to detect, prevent or deter crime; and where used as a primary account number prior to the Act and the use continues in the ordinary course of business.  But, in any event, social security numbers contained in public records are exempt from disclosure under the freedom of information act.

A knowing violation of the Act a misdemeanor, punishable by imprisonment of not more than 93 days or a fine of not more than $1,000, or both.  Additionally, an individual may bring a civil action against a person who violates the Act and may recover actual damages or, if the violation was done knowingly, actual damages or $1,000, whichever is greater. 

Curiously, the Act appears to exempt courts from its requirements concerning the use and display of social security numbers.  However, in conformity with the legislature’s intent in enacting the Act, and out of a shared desired to prevent identity theft, SCAO is developing a statewide privacy policy for courts to follow. 

            So, although identity theft may not be immediately eradicated, the Michigan “social security number privacy act” is a positive step in deterring unwarranted invasions of your personal and financial privacy.

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