If you want to work and get paid you're supposed to provide proof of being authorized to do so. If you don't trust the employer don't work for them.
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Visit any CPA office and review your wage payment structure with a professional accountant to make a correct decision. Also, an allegation that any agency hires illegal immigrants has nothing to do with the fact that you must submit your correct Social Security number to the agency for 1099 form if you worked in a capacity of an independent contractor for that fiscal year.
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Employers need your social security number so that they can do proper reporting with the IRS for tax purposes. The fact that they hire illegals has nothing to do with compliance with respect to you. There are specific requirements to be a 1099 independent contractor.
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You should not expect to be offered any employment if you refuse to provide a social security number. If you have earned income and not declared it for taxes, you should expect problems with your immigration to the U.S.
The above is intended only as general information, and does not constitute legal advice. You must speak with an attorney to discuss your individual case.