BLACK MARKET ECONOMY There is a huge market for fake and stolen SSNs to be used

Black market economy there is a huge market for fake

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BLACK MARKET ECONOMYThere is a huge market for fake and stolen SSNs to be used for employment and taxes, along with a job market for undocumented aliens to be hired by employers who know they are in America illegally. During 2017, there were over 1.2 million cases of identity theft that included the use of other people’s social security numbers in order to file the tax returns of undocumented aliens [ CITATION Num18 \l 1033 ]. Just a few years prior, approximately $3.4 billion was
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Strawser 3refunded to undocumented aliens in tax refunds. People who have been found guilty of knowingly hiring illegal immigrants in order to evade payroll taxes have evaded minimums of hundreds of thousands of dollars, if not millions. These are all due to fraudulent SSNs being used by undocumented aliens and then being accepted by employers. Stolen SSNs, along with other identity information, can be bought at a price of $1/person if the information is bought individually, or $.10/person if the information is bought in bulk[ CITATION Kan17 \l 1033 ]. Once black-market dealers buy the information, then they can sell it for approximately $60-$80, which is a 600%-8,000% markup from the original price. For illegal immigrants who do not have a lot of money, buying a SSN for $60-$80 for the chance at anew life in a different country is a steal. From 2012-2016, the Immigration Reform Law Institute reported that there were approximately 39 million SSNs that were stolen and used over the 4-year period[ CITATION Bed18 \l 1033 ]. If we assume that all of the stolen SSNs were bought inbulk for $.10/SSN and sold for an average of $70/SSN, that would mean there is $2,730,000,000 in illegal revenue and only $390,000 in cost of goods sold, which leaves a gross profit of $2,729,610,000 or $2.7 billion earned by black-market dealers. People who have their SSNs stolen and sold usually do not know their identity was sold, mainly because they’re still children.Because people rarely need to use their SSN before they turn 18, minors are 51 times more likelythan legal adults to have their SSNs being stolen and sold [ CITATION Tin18 \l 1033 ]. NO-MATCH LETTERSWhen a fake or stolen social security number is being used for employment, it will be listed on a person’s W2 and tax return. During the mid-2000's, the Social Security Administration (SSA) sent “no-match letters,” which are letters that state a person’s SSN does not match the SSA’s records and how to fix it [ CITATION Ros19 \l 1033 ]. These letters do not accuse a person or employer of listing fake or stolen SSNs on their documents. The no-match letters are just sent as a notification to a person rather than a prison sentence. Having a SSN that does not match could simply be an error, such as listing 123-54-6789 instead of 123-45-6789. But because of the rise of fake SSNs being used by illegal immigrants, these letters became less of a kind notification of human error and became more of a warning that the SSA is realizing fraud was committed.
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  • Fall '09
  • Immigration to the United States, Taxation in the United States

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