Child Identity Theft Cases Frightening Surge
Imagine getting a notice from the bank informing your six-year-old
that she missed a payment on her mortgage. That scenario certainly seems
ridiculous, but there are thousands of families around the country who
will tell you that the chances of it happening are very real. Every
year, more and more children are victimized by identity theft. Their
untouched Social Security numbers are stolen and used to take out
mortgages and loans which destroy their credit ratings before they’re
teenagers. And the worst part about it? Most children don’t even know
that they’re victims until it’s too late.Child identity theft used to be a rare crime, but that all changed with the invention of the Internet. As more and more children integrated the World Wide Web into their lives, thieves began to discover numerous methods of taking a child’s pristine identity for their own. According to the FTC, the number of reported cases of child identity theft had grown to 18,000 last year, with some independent research firms estimating that one out of every ten children in America has had their identity used by someone else. “The criminals are focused on where is the softest target and we’re handing them our kids,” says Michelle Dennedy, who was the chief privacy officer for Sun Microsystems. Her daughter is nine years old and has already had her identity stolen twice.
According to Dennedy, identity thieves aren’t just targeting our children because their information is easy to lift from school or social service databases – they’re also after the clean record associated with a child’s Social Security number. Credit card companies have no way of verifying age on their applications, so a thief can use a child’s record-less Social Security number to create a totally new person. Thieves can apply for dozens of cards and loans, and since most kids don’t get a background check until they’re teenagers, those thieves can get away with it for years. There are tons of strange and disturbing scenarios to imagine. Here’s one: a 17-year-old applies for a job only to discover that she owns several houses and carry $700,000 in debt. That actually happened.
So
how do you prevent child identity theft from happening to your family?
Not easily, unfortunately. Since it’s illegal for anyone under 18 to use
a credit card, most credit agencies will refuse to check your child’s
credit rating to make sure they’re safe. The most effective thing you
can do is to be on the lookout for any signs that your child’s identity
has been compromised – for example, watching to see if they receive any
credit card applications in their name. You should also be cautious
about giving out your child’s Social Security number – even to their own
school. Make sure that it’s absolutely necessary to disclose any risky
information before taking the leap. If you discover that your child has
been a victim of identity theft, don’t panic. Since no contracts can be
considered legally binding until the signer is 18 years old, clearing
your child’s name is as easy as showing their birth certificate to the
debt collectors. The lenders won’t be happy, but they can’t change the
law no matter how much money they’ve lost.While these steps won’t prevent child identity theft altogether, following them should at least reduce the risk that yours could become a victim. For now, that’s the best anyone can do.
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