ID Theft of Children on Rise

The statistics are startling – and worse, they’re growing. A recent survey revealed 11% of children under the age of 18 have already had their identities compromised. In fact, kids today are 35 times more likely to become victims of identity theft than adults. One reason might be because kids usually aren’t in any system – nor are there social security numbers – and won’t be for years.

Resale Value

Criminals are using impressive technology to break into school databases and even their parents’ tax returns in order to get the information needed to buy homes, cars and credit cards. It’s also not uncommon for social security numbers to be resold multiple times so that other thieves can reap the benefits of a clean credit history. In one instance, according to AllClear, one social security number was used to open more than 2,300 utility accounts. Another number was sold at least 200 times to apply for drivers licenses.

Other methods that are exclusive to adults include dumpster diving, which involves rummaging through trash in search of discarded bills or financial documents. Phishing is a more passive way of gaining information as it usually includes email blasts in hopes someone will take the bait. Skimming occurs when a credit card is swiped and the information is fed into a storage device that allows a thief to retrieve it later. Thieves also continue to target traditional methods such as purse snatching and posing as bank officials or law enforcement in order to get the victim to willingly hand over sensitive information such as credit card numbers.

Seeking Residence

There are some looking to grab your five year old’s social security number not to buy the latest iPhone or open numerous credit card accounts, but to establish residency. This is another area of concern as more illegal immigrants attempt to start their lives in the United States. In 2011, more than 3,000 social security numbers were stolen and used for that purpose.

Establishing Credit

Parents traditionally help their young ones get their credit histories started by helping them open small accounts, such as mobile phone contracts or secured bank loans. Thieves are doing the same thing: opening small accounts in order to establish a credit history. Parents begin taking steps to prepare their children for adulthood via these financial decisions by the time they’re 18 while thieves are gleaning numbers from kids as young as a year old.

A Simple Fix

The three major credit bureaus have never treated social security numbers as unique. Security analysts say if the bureaus would eliminate that in their systems, it would significantly – if not completely – eliminate the multiple use dynamic behind identity theft. It would, for all intents and purposes, keep thieves from reselling, sometimes hundreds of times, this information. Of course, it wouldn’t eradicate identity theft in its entirety, but it would put a significant dent in this illegal activity.

While this causes untold stress for families, victims are never financially responsible for the carnage left by these scammers. Still, it takes months or sometimes years to undo the damage. This can result in drastically limiting young adults who were victims as kids from securing a job, buying a home or their first car. Often, legal action is required, which results in more expenses.

Prevention

The Federal Trade Commission offers a host of information for those whose identities were stolen. It recommends parents request credit reports for any children who have been issued a social security number. They can request a free report once a year from the three credit bureaus. If a child’s identity has been compromised, this is the best place to start.

Anyone who’s been a victim of identity theft should first file a police report. This will generate an identity theft report and has legal protections that will aid in their efforts of making things right again. Not only that, but if there are debt collectors and even legal actions taken, this document provides the information necessary to eliminate these stressful events. Also, a request can be submitted to the bureaus to freeze all transactions for a period of time. Naturally, this doesn’t necessarily pose a problem for child victims since they haven’t begun to establish their history, but for adults, this can further aggravate and already overwhelming situation. Still, it’s a good move to make.

If the consumer hasn’t already requested copies of their credit reports, they should also do that right away. Of course, notifying creditors is also required – and that could be time consuming. As soon as the credit reports have been received, victims should begin disputing the fraudulent charges. This memorializes your efforts.

Finally, consumers can also subscribe to a monitoring service. It’s an affordable way to provide peace of mind and can prevent future problems.

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