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That's why you need a federal picture ID and a database to confirm the the social Security numbers.
Take a look at an I-9. Employees (not employers) get to choose what combination of identification documents they want to provide the employer...might be a drivers' license...then again it might be a junior college student ID or a library card. Make it ONE valid form of ID (the federal ID card concept I speak of) and you can start utilizing many of the same protections we build into our currency (smart threads, water marks, etc.). Get ATF and the Secret Service involved instead of state agencies, and you'll shut the phoney ID biz down substantially within the first year.
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Jamo
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