SSN Trace: A Complete Guide for Employers

So my friend just hired someone who seemed great. Good resume, solid interview, references checked out. Three weeks later she finds out the guy lied about where he went to college AND had a felony in Arizona she never would’ve found if she hadn’t run an SSN trace first.

That’s the thing about SSN traces – most people think they’re just for verifying someone’s identity (which, yeah, that’s part of it) but really they’re more like a treasure map showing you everywhere someone’s lived so you know where else to look.

Anyway, if you’re trying to figure out whether you actually need to do these things, or how they work, or what the legal stuff is, I put together everything I wish someone had told me when I started. So, it starts from here.

What is SSN Trace?

SSN traces are identity verification tools that pull data from credit bureaus and public records to show what’s connected to a Social Security Number.
Also note that SSN Trace isn’t an SSN verification. You still have to verify that the person matches the SSN they are providing. Here’s how both stack up against each other.

 

Aspect	SSN Trace	SSN Verification
Primary Purpose	Reveals historical addresses and name variations associated with an SSN	Confirms if SSN belongs to the person claiming it
Information Provided	Past addresses, aliases, date ranges of residence, associated names	Valid/invalid status, name match, deceased status
Data Sources	Credit bureaus, public records, utility records	Social Security Administration Death Master File, credit bureaus
Verification Level	Does not verify SSN ownership	Directly verifies SSN authenticity and ownership
Use Cases	Background screening, skip tracing, identifying undisclosed addresses	Identity verification, fraud prevention, employment screening
Fraud Detection	Helps identify suspicious address patterns	Directly detects SSN misuse or fabrication

In plain words, with SSN Trace, you are just getting the table of contents, not the whole story about who’s sitting across from you. 

What SSN Trace Report Reveals (and What It Doesn’t)

An SSN trace pulls data from credit bureaus and public records to show you what’s connected to a Social Security Number over time. SSN trace report hands you many insights:

1. Full name (prefix, first, middle, last, suffix) and when first seen publicly
2. Social Security Number with dates and location where it was issued
3. Date of birth and current age
4. Death records status (whether the person is deceased)
5. All aliases and alternate names used
6. Address history with detailed breakdown (house number, street, unit, city, state, county, ZIP)
7. Phone numbers associated with the SSN (including carrier and connection status)
8. Email addresses linked to the SSN
9. Counties and states where the person has lived

When does SSN Trace Make Sense?

SSN trace is the quickest way to spot a fake person before you invest your time and money in them. You will get the most value from SSN traces when basic identity verification matters for your business or you are hiring lots of people. 

Here are the most common situations where SSN traces make sense for your business:

Pre-Employment Screening for New Hires

Running SSN traces before you make job offers saves you from costly hiring mistakes. You can catch applicants who have made up their work history or are using someone else’s Social Security Number. 

The trace also helps you verify the basics, like whether their stated age makes sense with their claimed work experience. If someone says they have 20 years of experience but their SSN was issued last year, that’s a red flag worth investigating.

Remote Employee Verification

When you are hiring a remote worker, you probably are not meeting them face-to-face. SSN traces become more valuable in situations like this. For example, you can:

• Verify geographic claims – Cross-check stated locations against SSN address history to catch applicants lying about where they live or have lived
• Validate application consistency – Compare resume information against SSN trace data to spot discrepancies in work history or personal details.
• Check address patterns – Look for logical address progressions that make sense with claimed life events like college, jobs, or family moves.
• Flag suspicious relocations – Investigate candidates with address histories that don’t match their stated background or current location claims.

Basically, you can use SSN trace to establish baseline trust before investing in more expensive background checks for remote positions.

Contractor and Vendor Verification

Independent contractors often work with multiple companies. This makes it harder to verify their background check through traditional methods. With SSN traces, you can quickly check and confirm they are using legitimate identity information before adding them into your business operations.

Of course, running these traces isn’t as simple as just deciding to do it. There are strict legal rules about when and how you can use SSN information. So, let’s discuss the other part now.

SSN Trace Compliance: What’s Not Allowed

Federal and state laws put strict limits on how you can use SSN traces. Breaking these rules can result in serious fines and legal problems for your business. 

Here’s what you need to avoid:

Don’t Run an SSN Trace Without a Valid Reason

The Fair Credit Reporting Act (FCRA) says you need a legitimate business purpose before running any SSN trace. You just can’t run traces on people out of curiosity or for personal reasons. 

Valid reasons include employment screening, tenant screening, or verifying contractor information. “I want to know more about this particular person” isn’t and can’t be a valid reason.

Don’t Pull SSN Data Without Consent

You must get written permission from the person before running their SSN trace. The FCRA demands “clear and conspicuous written disclosure” in a standalone document. You can’t sneak other stuff in there like liability waivers or accuracy certifications – that actually violates the rules.

Don’t Use SSN Info for Unrelated Purposes

The FCRA and various privacy laws say you can only use SSN trace results for the specific purpose you stated when you got consent from the person. If you run the trace for employment screening, you can’t use that same information for marketing campaigns or other business purposes. For every use of trace information, you need written consent from that same employee. 

Don’t Rely on Unlicensed or Shady Data Sources

Only use SSN trace services from licensed consumer reporting agencies. We’re talking about the major credit bureaus like Experian, TransUnion, and Equifax, plus legitimate background screening companies that regularly handle consumer information.

Sketchy websites or third-party data brokers may give you inaccurate information and could also expose your business to legal liability. Always verify that your provider follows FCRA requirements and has proper licensing.

Don’t Discriminate Based on SSN Trace Results

You can’t use SSN trace information to discriminate against protected groups. For example, you can’t reject applicants based on having lived in certain neighborhoods or having gaps in their address history indicating some financial problems. You must focus on job-related factors only. 

Don’t Store or Share SSN Data Insecurely

Any SSN-related information you store must be protected under data security regulations. This means strong encrypted storage, limited access to information, and proper disposal when your business no longer needs the information. Sharing such sensitive data with unauthorized people can result in serious penalties and damage your business reputation.

Now let’s look at your actual options for running these traces.

Methods to Conduct SSN Trace

Once you have decided to run SSN traces, you have two main options for actually getting the information from legal sources. 

Each method has its own trade-offs depending on your business size and hiring or customer onboarding volume.

Method 1: Using Official Government Portals

The Social Security Administration provides some verification services through its official website, but these services are pretty limited. They are not designed for high-volume business use, and you will need to handle the verification process manually for each applicant. This becomes a real time sink as your business grows.

These official methods also don’t provide the detailed address history and cross-referenced data that most employers need for thorough background screening. All you will get is a basic validation, but you won’t get the full picture that helps you make informed hiring decisions.

Method 2: Using Technology Solutions For SSN Trace

The reality is that most businesses don’t handle SSN verification themselves. Instead, they partner with specialized background screening companies that have the proper licenses, compliance expertise, and data access to do this work properly.

These companies typically offer two ways to access their services: traditional background check packages or modern API integrations for tech-savvy businesses. The big advantage of APIs over traditional background check services is that they plug directly into your existing infrastructure. 

Instead of logging into separate portals, uploading spreadsheets, and manually downloading reports, the verification happens seamlessly within your current workflow. Your team doesn’t need to learn new systems or change how they work – the SSN verification just becomes part of your normal hiring process.

Curious how systematic SSN verification would work with your current hiring setup? Let’s talk through a quick demo specific to your team’s needs.