Florida is the only state in the nation that allows Social Security numbers to be distributed for the purpose of locating owners of unclaimed property.
And state Sen. Jack Latvala wants to keep it that way.
Currently, the state Department of Financial Services has a database of Social Security numbers it receives from holders of unclaimed property where the rightful owner cannot be located, such as abandoned safe deposit boxes or uncollected utility security deposits.
For a $35 monthly fee, licensed private investigators can access the database, ostensibly for the purpose of tracking down owners of unclaimed property.
Certified public accountants and lawyers are the only other groups allowed access to the DFS database.
But state officials say only a small fraction of the registered users have actually sought out owners of unclaimed property. And DFS says Floridians are outraged over the dissemination of their Social Security numbers by those who have access.
"This presents a world of risk," said Ashley Mayer of the DFS.
The Social Security "loophole" is a vestige from the days before computer search engines and sophisticated tracking software became widely available.
Two bills -- Senate Bill 1208 and House Bill 7111 -- would stop the distribution of Social Security numbers by the state.
But Latvala, R-St. Petersburg, wants Florida to continue furnishing individuals' Social Security numbers for the purposes of locating owners of unclaimed property and refunds.
"Companies in my district will be put out of business. People could miss out on property," he said.
So Latvala is proposing an amendment that would require the state to issue at least partial Social Security numbers.
But Mayer said such a compromise leaves the door open for identity and financial fraud. She said available software enables identities to be determined with the first five numbers or the last four numbers -- two suggestions made by Latvala.
Mayer disputed Latvala's assertions. Of 178 locator agencies registered by DFS, she said only 58 had filed for unclaimed property.
Mayer did not speculate why the other 120 agencies would want to maintain access to Floridians' Social Security numbers -- or what they do with those numbers.
She did, however, cite several examples where locator services had sent multiple Social Security numbers to third parties, a practice that raised obvious privacy concerns at the Senate Committee on Government Oversight and Accountability.
The DFS' Bureau of Unclaimed Property says it receives many consumer complaints about the distribution of their private Social Security Information.
Citing locator letters divulging multiple Social Security numbers to third parties, the department notes, "Florida courts have found that individuals possess a legitimate expectation in the privacy of their Social Security numbers."
In one case, DFS said James A. Garner, of Reno, Nev., "by having access to account amounts and/or SSNs contained on the [Bureau of Unclaimed Property] database, was able to create and submit fraudulent documents, including photographic identification, Social Security cards, wage statements (pay stubs) and bank statements.
"Through his filing of fraudulent claims, Garner obtained more than $76,000 from BUP and more than $213,000 from other states unclaimed property programs."
Raising another concern, Jay McGathey, of Trinity, thanked the DFS for a tax refund he received from the agency, and excoriated locator services that fail to disclose that private individuals can recover funds on their own without employing outside services.
"Since I have applied for my refund I have been sent correspondence by a law firm and an accounting firm. Both tried to make me believe that I could only receive my refund if I utilized their services for a fee," McGathey related.
"I feel these firms are unethical and should be prevented from misleading claimants. ... I will provide you with the correspondence at your request if it will help to stop these unethical bastards."
In a statement, DFS said, "Because Social Security numbers no longer add value to the search process, and because of the great risk to consumers, state Chief Financial Officer Jeff Atwater has proposed safeguarding Social Security numbers from disclosure.
"Providing Social Security numbers to registered claimant representatives/locators is not the least intrusive means to accomplish the objective of identifying owners and claimants of unclaimed property."
Atwater's proposed reforms -- embodied in SB 1208 and HB 7111 -- were bottled up by Latvala in committee last week. The senator repeatedly challenged Mayer to provide examples of "prosecution" of locators for improperly handling or disseminating Social Security numbers.
Sen. Gary Siplin, D-Orlando, buttressed Latvala's objections by noting that the numbers are "already out," thanks to the regularly issued CD updates distributed to registered users by the DFS over the past decade.
But another Democrat, Bill Montford of Marianna, repeatedly expressed amazement that the state would be party to the distribution of Social Security information.
Saying it's time to pull the plug, Atwater calls SB 1208 a "top priority."
"He believes strongly in the protection of people's confidential information -- especially their Social Security numbers," a DFS spokeswoman said.
In the absence of committee Chairman Garrett Richter, R-Naples, the Senate panel temporarily postponed action on the committee bill. The committee reconvenes on Friday.
Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
