As children head back to school, it’s a good time to remind parents that they should be careful when sharing their children's social security number and other personal identifiers. Child identity theft is one of the fastest growing crimes in America.
Child identity theft occurs when a child's identity is used by another person for the imposter's personal gain. The perpetrator may be a family member or someone known by the family. It could also be a stranger who purposely targets children because of the lengthy time between the theft of the information and the discovery of the crime.
The Federal Trade Commission (FTC) reports that child identity theft has doubled since 2006, with 144,213 cases reported in 2010. In tough economic times, they have predicted that child identity theft will double by the end of 2012.
Children are often easy targets because thieves get an eight to ten year head start on them. In fact, most children who have had their identities stolen are not aware of it until they apply for a driver license, employment, credit, the military, or college.
Some of these child identity theft cases involve split families where one of the parents is the perpetrator with the crime being exposed by the other, unoffending parent. Discovery often comes:
- When attempting to open a savings/checking account or college fund. In this scenario, the unoffending parent discovers that there is already an account under the child’s social security number or that the account is denied as a result of worthless checks on file at ChexSystems;
- When numerous pre-approved credit offers come in the mail bearing the name of the child;
- When credit cards, checks, invoices or bank statements not opened by an unoffending parent as a joint holder are received bearing the name of the child;
- When collection agencies call and/or send letters about accounts not opened by the child;
- When a child is denied a driver's license because another individual has a license with their social security number. The imposter may even have accumulated traffic citations in the child's name;
- While going through papers during a divorce proceeding or while straightening up the house (Parental identity theft);
- When a law enforcement officer knocks at your door with a warrant for the arrest of your child.
According to the June issue of the Consumer Sentinel Network Data Book, identity theft was the top reported crime in the United States last year. That online database combines consumer complaints from the U.S. Federal Trade Commission, the Better Business Bureaus and U.S. Postal Inspection Service, among others. Of the 1.3 million complaints received in 2010, identity theft represented just over 19% of them.
The FTC recommends being vigilant about what personal information is shared about your child and to report discrepancies to the agency. Child identity theft is part of a growing number of scams and is among the fastest growing segments of identity theft.
There are instances that may appear to be identity theft but are not. Receiving a pre-approved credit card offer might upset you as a parent but may only be the pitch of a potential creditor because you opened an account or college fund in your child’s name. A quick check of credit reports will help sort out the truth.
Currently, all three credit reporting agencies have automated systems. You should contact them semi-annually to request a credit report on your children. If you are advised that no credit report exists, your child is safe for the time being. Call Equifax at (800) 685-1111; Experian at (888) 397-3742; and Trans Union at (800) 916-8800.
A common misconception is that creditors and credit reporting agencies have a method of verification when it comes to the age and identity of an applicant. Since most creditors rely strictly upon a written application when rendering a credit decision and the age of an individual becomes “official” with a credit reporting agency upon the first application for credit, said reliance can be fatal in relation to identity theft.
When someone asks for your child's Social Security number, ask questions before providing it, including why the number is needed, who will have access to it, and how it will be safeguarded. If you do not feel comfortable, kindly refuse to provide the information.
If your child becomes a victim of identity theft, you must immediately file a police report. Federal law mandates that credit reporting agencies investigate and correct all identity theft issues. Nevertheless, it all starts with a properly filed police report. Without one, creditors, collection agencies, and/or credit reporting agencies are not required to act upon your complaint.
To learn more about child identity theft and how to protect your child from becoming a victim, visit the Federal Trade Commission’s website at www.ftc.gov.
To review Bill Lewis' entire consumer protection series, visit www.williamlewis.us.
William E. Lewis Jr. & Associates is a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into "The Credit Report with Bill Lewis," a daily forum for business and financial news, politics, economic trends, and cutting edge issues on AM 1470 WWNN.
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