U.S. recommends changes to cut identity theft

WASHINGTON (Reuters) - Companies and schools should find new ways to authenticate the identities of customers, employees and students that do not involve social security numbers, a U.S. consumer protection agency said on Wednesday as part of recommendations to fight identity theft.

An estimated 9 million Americans have their identity stolen every year, according to the Federal Trade Commission, which urged businesses, schools and other private entities to find better ways to authenticate identities, which already have.

"Requiring all private sector entities that maintain consumer accounts to establish appropriate, risk-based consumer authentication programs could reduce the misuse of consumer data and the prevalence of identity theft," the agency said in its report.

The commission also asked businesses that still use social security numbers to be more discreet.

"Some organizations continue to display SSNs on account statements, paychecks, applications or other documents that are sent through the mail, which puts consumers at risk for identity theft if their mail is stolen," the agency said in its report.

In other recommendations, the commission asked Congress to look at enacting standards for notifying the public in the case of data breaches and called for efforts to educate businesses and consumers on how best to safeguard social security numbers.

(Reporting by Diane Bartz; Editing by Andre Grenon)