This bill — the Protecting Children from Identity Theft Act — would aim to prevent children’s identity from being stolen by a type of theft known as “synthetic ID fraud”. It would require the Social Security Administration (SSA) to accept electronic signatures as consumer consent for financial institutions trying to verify customer ID and make the system more efficient, as firms currently may seek verification one name and Social Security at a time, or up to 10 at a time.
The SSA Commissioner wouldn’t be allowed to start developing the new verification system until it’s determined that at least 50 percent of the new system’s start-up costs have been covered by users (ie financial institutions). If the SSA temporarily uses IT modernization funding to cover costs, those would have to be fully recouped through user fees. After initial development, users would be obligated to pay for ongoing associated costs through advances, reimbursements, user fees, or other methods of recovery determined by the SSA Commissioner.