Several internet blogs and videos make false claims that a United States birth certificate is a negotiable instrument (a document that promises payment) that can be used to:
- Make purchases that will be charged to a “Exemption Account” (perhaps identified by your social security number or EIN), or
- Request savings bonds held by the government in your name and owed to you.
The truth is, birth certificates cannot be used for purchases, nor can they be used to request savings bonds purportedly held by the government. Also, the “Exemption Account” is a false term; these accounts are fictitious and do not exist in the Treasury system.
The Story
This story is a variation of the older Bogus Sight Drafts/Bills of Exchange Drawn on the Treasury scam.
The common tale offered in this scam states: When the United States went off the gold standard in 1933, the federal government somehow went bankrupt. With the help of the Federal Reserve Bank, the government became a corporation (sometimes called ”Government Franchise”) and converted the bodies of its citizens into capital value, supposedly by trading the birth certificates of U.S. citizens on the open market and making each citizen a corporate asset (sometimes referred to as a “Strawman”) whose value is controlled by the government.
Scams vary in methods for citizens to gain control of their alleged assets, such as:
- filing a UCC-1 Financial Statement,
- activating a TreasuryDirect Account (TDA), or
- creating bonds by using the Savings Bond Calculator.
These blogs and videos promise that your birth certificate bond will be able to wipe out all your debt or help you collect monies/securities. Some internet sites even offer to sell videos, webinars, and coaching on how to do this. No one has profited from the Treasury Department by using these tactics. But, the scammers intend to profit from this story by selling their bogus wares.
The Reality
There is no monetary value to a birth certificate or a social security number/EIN, and TreasuryDirect accounts must be funded by the owner (through payroll deductions or from purchasing directly from the owner's personal bank account) to have any value.
The Savings Bond Calculator is merely a tool to calculate the value of a bond based on an issue date and denomination entered. This information could be the issue date and denomination from a real bond, or it could just be a random choice of a date and denomination. The calculator only checks that the issue date and denomination entered are a valid combination - it will not verify whether a bond exists. The calculator will not verify the validity of a serial number or confirm bond ownership.
Please be advised that trying to defraud the government by claiming rights to bogus securities is a violation of federal law, and the Justice Department can and has prosecuted these crimes. Federal criminal convictions have occurred in several cases. The scam artists who post blogs and videos are trying to defraud you into buying their fake product. Do not fall victim to their schemes.
FAQs
CUSIP numbers are assigned to securities, like bonds and stocks, for the purposes of facilitating trade and settlement. They are not related to personal documents like birth certificates. The concept that birth certificates are linked to financial instruments is a myth and has no basis in legal or financial reality.
How does TreasuryDirect verify identity? ›
Security questions are used to help us confirm your identity if you forget your account number or password. As an added security measure, TreasuryDirect may require you to answer one of your security questions when you attempt to perform certain transactions.
How much is a $100 EE savings bond worth after 30 years? ›
How to get the most value from your savings bonds
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
Use the Treasury Hunt® tool to discover if you own savings bonds.
Does everyone have a CUSIP number? ›
CUSIP stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most financial instruments, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds.
How do I find my personal CUSIP number? ›
You can also find the numbers on a brokerage's official statements sent to clients, or on physical stock or bond certificates if you own them. Certain bond CUSIPs may also be obtained through the Municipal Securities Rule-Making Board via the Electronic Municipal Market Access system.
What are the disadvantages of TreasuryDirect? ›
Securities purchased through TreasuryDirect cannot be sold in the secondary market before they mature. This lack of liquidity could be a disadvantage for investors who may need to access their investment capital before the securities' maturity.
What information is needed to open a TreasuryDirect account? ›
Open an Account
- A Taxpayer Identification Number. (Social Security Number for an individual)
- A United States Address of Record.
- A Checking or Savings Account. You'll need to know your account and routing numbers.
- An E-mail Address. (e.g., YourName@abc.com)
- A Web Browser That Supports 128-Bit Encryption.
Your signature on Page 2 must be certified by an authorized certifying official. Certification by a Notary public is NOT acceptable. Acceptable certifications include a financial Institution's Official Seal or Stamp (such as Corporate Seal, Signature Guaranteed Stamp, or Medallion Stamp).
Do EE bonds really double in 20 years? ›
EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.
Is it better to invest in bonds or CDs? ›
Bonds are typically longer, higher-risk investments that deliver greater returns and a predictable income. Bonds are also more liquid than CDs because you can buy or sell them on the secondary market—although some bonds may be harder to sell than others.
What happens to a TreasuryDirect account when the owner dies? ›
If the beneficiary has a TreasuryDirect account, the security will be transferred to that account. If the beneficiary does not have an account, he or she may establish an account. Alternatively, a beneficiary named on a savings bond may request redemption.
What happens to bonds when someone dies? ›
The executor(s) of your Will will also need to provide proof of your death. This can be by providing a copy of the death certificate. Once the transfer has been completed, the surviving relative or friend will then be the new owner of the bonds and any prizes won will be paid out to them.
Can I cash my deceased parents' savings bonds? ›
TO CASH BONDS FOR A DECEDENT'S ESTATE:
Series EE, Series E, and Series I bonds can be cashed at a local financial institution. Some of these transactions may have to be forwarded for further processing. Series HH and Series H bonds must be sent to one of the addresses shown at the bottom of the following page.
What is a CUSIP number for social security? ›
The CUSIP is a combination of 9 letters and numbers. Example: 123456X78. You can use the CUSIP number of a security to get information about it. CUSIP stands for Committee for Uniform Security Identification Procedures.
What can I use my CUSIP number for? ›
CUSIP numbers help identify and organize stocks and bonds in the U.S. and Canada by using alpha-numeric digits to identify the issuer of the security, the issue, and the check digit. This helps with clearing and settlement.
What is the difference between CUSIP and security ID? ›
ISIN has nine alphanumeric characters which are the national security identifier while CUSIP has six characters that identify the issuer and two characters that identify the issue.
What information is on a birth certificate in the USA? ›
Long-form – contains name, place and date of birth, parental information, date of issue, date of registration, registration number, certificate number, and authorised signature(s). Short-form – as with long-form, except for parental information.
