Removing The TIN From Periodic Statements

Question:

Our bank is seriously considering NOT using a TINSSN/EIN on periodic bank statements. It is felt this could help deter ID Theft and help with privacy issues? Could there be other regulatory ramifications if we did in fact not use the TIN on statements?

Answer:

No. Your bank is merely following a trend in removing the TIN from its periodic statements.

The practice of including it as a pseudo means of customer "verification" became common in the late 1980's and early 1990's when the IRS was sending huge penalty assessments for name/TIN mismatches. The theory was that customers would notice their TIN was wrong and notify the bank. There was never a regulatory requirement to include a TIN on bank statements.

In recent years, financial institutions have begun to remove them for the reasons you state. Stealing a bank statement can be the precursor to stealing someone's identity and a bank statement with a TIN is a delightful surprise to the thief.

Anytime you create exceptions, you are allowed/required to consider the risks involved.

First published on BankersOnline.com 11/18/2002