We were CIPing an individual who was being added as an authorized signor on a pre-existing restaruant account. They presented an unexpired Matricula card, a social security card, and a State ID card.

When we performed our CHEXSystem verification the SSN Validation field stated "Number inactivated due to report of death"

What do we do to ensure this is true and correct. I feel that this should also be reported to some agency.

You can make an independent search of the SSDI (Social Security Death Index) here: http://www.ancestry.com/search/rectype/vital/ssdi/main.htm

This site allows you to key just the SSN (be sure to use the hyphens). If you get back a name "hit," that SSN was assigned to someone the SSA believes has died.

You should challenge the customer's SSN and consider filing a SAR for ID Theft.

I would verify with the individual that you have properly recorded the TIN. If the number is accurate, I would complete a SAR for identity theft.

I recommend contacting your bank counsel as to how to address issue with employer. Unfortunately, the Bank now has constructive evidence that this person may be an illegal alien and you also have reason to conclude that you may not know the true identity of this individual. I can't think of any reg or law that compels us to report or prevents us from reporting the circumstances to the account owner, but that isn't an action I would want to take without counsel guidance.

Recent announcement by Homeland Security regarding amendments to preclude hiring illegal aliens may help us with these type issues down the road, but that doesn't help you today.

The website does not let me enter just the SS #. I have to enter the Surname. Unless I am entering the Surname wrong it is returning "0" results for the SS #.

Don't enter the surname. Enter only the SSN. You'll get back a one-line report showing what name was assigned to that number (and died).

Okay, I did get it to work. It is reporting the person with this SS # as deceased and with a different name.