---
kind: "section"
citation: "42 U.S.C. § 405b"
title: "42"
title_heading: "The Public Health and Welfare"
number: "405b"
heading: "Reducing identity fraud"
release: "119-102"
url: "https://uscodex.org/usc/42/405b"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter II — Federal Old-Age, Survivors, and Disability Insurance Benefits"
---

# §405b. Reducing identity fraud

- (a) **Purpose—** The purpose of this section is to reduce the prevalence of synthetic identity fraud, which disproportionally affects vulnerable populations, such as minors and recent immigrants, by facilitating the validation by [permitted entities](#b-4) of [fraud protection data](#b-3), pursuant to electronically received consumer consent, through use of a database maintained by the [Commissioner](#b-1).
- (b) **Definitions—** In this section:
  - (1) **Commissioner—** The term “Commissioner” means the Commissioner of the [Social](/usc/42/1397j.md?p=20) Security [Administration](/usc/42/1301.md?p=a-10).
  - (2) **Financial institution—** The term “financial institution” has the meaning given the term in section 509 of the Gramm-Leach-Bliley Act ([15 U.S.C. 6809](/usc/15/6809.md)).
  - (3) **Fraud protection data—** The term “fraud protection data” means a combination of the following information with respect to an individual:
    - (A) The name of the individual ([including](/usc/42/1301.md?p=b) the first name and any [family](/usc/42/290ff–4.md?p=d-2) forename or surname of the individual).
    - (B) The [social](/usc/42/1397j.md?p=20) security number of the individual.
    - (C) The date of birth ([including](/usc/42/1301.md?p=b) the month, day, and year) of the individual.
  - (4) **Permitted entity—** The term “permitted entity” means a [financial institution](#b-2) or a service provider, subsidiary, affiliate, agent, subcontractor, or assignee of a [financial institution](#b-2).
- (c) **Efficiency—**
  - (1) **Reliance on existing methods—** The [Commissioner](#b-1) shall evaluate the feasibility of making [modifications](/usc/42/7501.md?p=4) to any database that is in existence as of May 24, 2018, or a similar resource such that the database or resource—
    - (A) is reasonably designed to effectuate the purpose of this section; and
    - (B) meets the requirements of [subsection (d)](#d).
  - (2) **Execution—** The [Commissioner](#b-1) shall make the [modifications](/usc/42/7501.md?p=4) necessary to any database that is in existence as of May 24, 2018, or similar resource, or develop a database or similar resource, to effectuate the requirements described in [paragraph (1)](#c-1).
- (d) **Protection of vulnerable consumers—** The database or similar resource described in [subsection (c)](#c) shall—
  - (1) compare [fraud protection data](#b-3) provided in an inquiry by a [permitted entity](#b-4) against such information maintained by the [Commissioner](#b-1) in order to confirm (or not confirm) the validity of the information provided;
  - (2) be scalable and accommodate reasonably anticipated volumes of verification requests from [permitted entities](#b-4) with commercially reasonable uptime and availability; and
  - (3) allow [permitted entities](#b-4) to submit—
    - (A) 1 or more individual requests electronically for real-time machine-to-machine (or similar functionality) accurate responses; and
    - (B) multiple requests electronically, such as those provided in a batch format, for accurate electronic responses within a reasonable period of time from submission, not to exceed 24 hours.
- (e) **Certification required—** Before providing confirmation of [fraud protection data](#b-3) to a [permitted entity](#b-4), the [Commissioner](#b-1) shall ensure that the [Commissioner](#b-1) has a certification from the [permitted entity](#b-4) that is dated not more than 2 years before the date on which that confirmation is provided that [includes](/usc/42/1301.md?p=b) the following [declarations](/usc/42/247d–6e.md?p=e-4):
  - (1) The entity is a [permitted entity](#b-4).
  - (2) The entity is in compliance with this section.
  - (3) The entity is, and will remain, in compliance with its privacy and data security requirements, as described in title V of the Gramm-Leach-Bliley Act ([15 U.S.C. 6801](/usc/15/6801.md) et seq.), with respect to information the entity receives from the [Commissioner](#b-1) pursuant to this section.
  - (4) The entity will retain sufficient records to demonstrate its compliance with its certification and this section for a period of not less than 2 years.
- (f) **Consumer consent—**
  - (1) **In general—** Notwithstanding any other provision of law or regulation, a [permitted entity](#b-4) may submit a request to the database or similar resource described in [subsection (c)](#c) only—
    - (A) pursuant to the written, [including](/usc/42/1301.md?p=b) electronic, consent received by a [permitted entity](#b-4) from the individual who is the subject of the request; and
    - (B) in connection with a credit transaction or any circumstance described in [section 1681b of title 15](/usc/15/1681b.md).
  - (2) **Electronic consent requirements—** For a [permitted entity](#b-4) to use the consent of an individual received electronically pursuant to [paragraph (1)(A)](#f-1-A), the [permitted entity](#b-4) must obtain the individual’s electronic signature, as defined in [section 7006 of title 15](/usc/15/7006.md).
  - (3) **Effectuating electronic consent—** No provision of law or requirement, [including](/usc/42/1301.md?p=b) [section 552a of title 5](/usc/5/552a.md), shall prevent the use of electronic consent for purposes of this subsection or for use in any other consent based verification under the discretion of the [Commissioner](#b-1).
- (g) **Compliance and enforcement—**
  - (1) **Audits and monitoring—** The [Commissioner](#b-1) may—
    - (A) conduct audits and monitoring to—
      - (i) ensure proper use by [permitted entities](#b-4) of the database or similar resource described in [subsection (c)](#c); and
      - (ii) deter fraud and misuse by [permitted entities](#b-4) with respect to the database or similar resource described in [subsection (c)](#c); and
    - (B) terminate services for any [permitted entity](#b-4) that prevents or refuses to allow the [Commissioner](#b-1) to carry out the activities described in [subparagraph (A)](#g-1-A).
  - (2) **Enforcement—**
    - (A) **In general—** Notwithstanding any other provision of law, [including](/usc/42/1301.md?p=b) the matter preceding [paragraph (1)](/usc/42/505.md?p=a-1) of section 505(a) of the Gramm-Leach-Bliley Act ([15 U.S.C. 6805(a)](/usc/15/6805.md?p=a)), any [violation](/usc/42/2000e–16a.md?p=c) of this section and any certification made under this section shall be enforced in accordance with [paragraphs (1) through (7)](/usc/42/6805.md?p=a-1..a-7) of such section 505(a) by the [agencies](/usc/42/1397n–12.md?p=1) described in those paragraphs.
    - (B) **Relevant information—** Upon discovery by the [Commissioner](#b-1), pursuant to an audit described in [paragraph (1)](#g-1), of any [violation](/usc/42/2000e–16a.md?p=c) of this section or any certification made under this section, the [Commissioner](#b-1) shall forward any relevant information pertaining to that [violation](/usc/42/2000e–16a.md?p=c) to the appropriate [agency](/usc/42/1397n–12.md?p=1) described in [subparagraph (A)](#g-2-A) for evaluation by the [agency](/usc/42/1397n–12.md?p=1) for purposes of enforcing this section.
- (h) **Recovery of costs—**
  - (1) **In general—**
    - (A) **In general—** Amounts obligated to carry out this section shall be fully recovered from the users of the database or verification system by way of advances, reimbursements, user fees, or other recoveries as determined by the [Commissioner](#b-1). The [funds](/usc/42/12854.md?p=3) recovered under this paragraph shall be deposited as an offsetting collection to the account providing appropriations for the [Social](/usc/42/1397j.md?p=20) Security [Administration](/usc/42/1301.md?p=a-10), to be used for the [administration](/usc/42/1301.md?p=a-10) of this section without fiscal year limitation.
    - (B) **Prices fixed by Commissioner—** The [Commissioner](#b-1) shall establish the amount to be paid by the users under this paragraph, [including](/usc/42/1301.md?p=b) the costs of any services or work performed, such as any appropriate upgrades, maintenance, and associated direct and indirect administrative costs, in support of carrying out the purposes described in this section, by reimbursement or in advance as determined by the [Commissioner](#b-1). The amount of such prices shall be periodically adjusted by the [Commissioner](#b-1) to ensure that amounts collected are sufficient to fully offset the cost of the [administration](/usc/42/1301.md?p=a-10) of this section.
  - (2) **Initial development—** The [Commissioner](#b-1) shall not begin development of a verification system to carry out this section until the [Commissioner](#b-1) determines that amounts equal to at least 50 percent of [program](/usc/42/274l–1.md?p=4) start-up costs have been collected under [paragraph (1)](#h-1).
  - (3) **Existing resources—** The [Commissioner](#b-1) may use [funds](/usc/42/12854.md?p=3) designated for information technology modernization to carry out this section.
  - (4) **Annual report—** The [Commissioner](#b-1) shall annually submit to the Committee on Ways and Means of the House of [Representatives](/usc/42/3058f.md?p=5) and the Committee on Finance of the Senate a report on the amount of indirect costs to the [Social](/usc/42/1397j.md?p=20) Security [Administration](/usc/42/1301.md?p=a-10) arising as a result of the implementation of this section.

## Source credit

(Pub. L. 115–174, title II, § 215, May 24, 2018, 132 Stat. 1323.)

## Notes

### Editorial Notes

### References in Text

The Gramm-Leach-Bliley Act, referred to in subsec. (e)(3), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338. Title V of the Act is classified principally to chapter 94 (§ 6801 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.

### Codification

Section was enacted as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act, and not as part of the Social Security Act which comprises this chapter.