I received an email from a member of "My Linked In Power Forum" This information was posted on CareerXroads, and thought you might be interested in it because I actually work with VMO companies that require a SS# for a resume submittal. I've always been uncomfortable with trying to gather that personal information and trying justify why I must have it....

It is reported that
1. A major corporation will be hit with a class action suit by August 2008 for requiring ALL candidates to submit their social security numbers when first completing their online company application (regardless of qualifications). The problem comes to light in May after a report is circulated that a contract recruiter downloaded 2 million candidate applications from the company ATS he had temporary access to (these were collected over a 3 year period and apparently the company never got around to cleaning their database out). The recruiter left the firm and sold his cache to a Russian-mafia contact for $500,000 who subsequently resold the personal data to identity thieves worldwide.

The suit will name a prominent ATS/Hiring Management System as a co-defendant for developing, selling and promoting the technology platform that allowed this kind of data abuse to occur in the first place. The ATS' chief PR hack mounting a "guns don't kill" defense will claim that their fully- integrated, end-to-end, globally
integrated recruitment management design includes many "choice" features and since each has to be configured by the company (i.e. "turned on") they can't possibly be responsible. Having every candidates' SS# available in the front-end, he points out, is a logical design and days are saved in processing background checks and besides, he whines on, "it was the company's responsibility - an inside job - we were not hacked." The company will maintain that their online, prominently posted privacy statement specifically indicated that they "should not be held liable for any inadvertent loss of data" and that each candidate had checked the box as they submitted their resume.

The judge will not be not impressed and she rules on the class action suit in 24 hours. The suit asks for $250 million plus damages. CareerXroads is asked (and willingly offers) expert testimony about the stupidity of systems and processes that collect (without option) personal (identity) data from millions of people you don't plan to hire and then leave it lying about forever.