Answer:
Answer by Randy Carey:You can establish any procedures that you want to negotiate a check. Documenting someone's SSN on the back of the check is overkill in my book, and why you would want to expose this person to the additional risk of identify theft that it would present?
Answer:
Answer by John Burnett:In some cases, state law will prohibit the recording of the SSN on the check.
Answer:
Answer by Ken Golliher:As noted, you may require anything you wish. The issue is whether the requirement is prudent and, in this case, it is not. A true fraudster will give you an SSN, but it will be bogus. Alternatively, an honest person will complain that giving you her SSN is unnecessary and exposes her to identity theft. Writing any number you receive on the back of the check is simple carelessness regardless of whether it is prohibited by law. Unless you have the ability to verify that SSN by some independent means on the spot, it is a meaningless requirement.
First published on BankersOnline.com 8/21/06
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