Child Identity Theft (Part II)
If you missed the first part of this series, please visit Child Identity Theft (Part I).
Child Identity theft is the fastest growing sector of the identity theft “industry,” and the numbers are staggering. Although it’s difficult to estimate exactly how many children lose their identities since the crime can go undetected for years, the FTC states that 5% of identity theft cases target children, which translates into 500,000 kidnapped child identities per year, and growing. The Carnegie Mellon CyLab Report states that in 54% of the cases, the child was under the age of 14.
The identity thief is not always a stranger. In many cases, it’s a relative with bad credit who takes advantage of a child’s pristine credit. Conveniently, these family members generally have access to the information necessary to maximize the fraud with little attention. This seems absurd, but imagine a parent who is strapped for cash, has a bad credit score and needs to buy groceries. In this case, short-term thinking blinds the relative or friend to long-term consequences. In other instances, the child’s future is not taken into consideration at all.
Frankly, it doesn’t take much to get the crime underway; all a criminal needs is the child’s name and Social Security number. These pieces of personal information are exposed in a variety of ways:
Your Child is 51X More Likely to Become Victim of ID Theft (Part I)
Allowing our children the innocence of their childhood is paramount to us as parents. Because our children are pretty much the center of our universe, we want to do everything in our power to keep them safe and to safeguard their futures. In this information age, identity theft has become global in its reach and can have devastating consequences for our children’s futures if we’re not vigilant from the day they acquire a Social Security number.
Why are our kids, the very people we most want to protect, so vulnerable? Because they have unused, unblemished credit profiles. Richard Power, Distinguished Fellow, Carnegie Mellon CyLab, recently published the first ever child identity theft report based on identity protection scans of over 40,000 U.S. children. It is extremely alarming that 10.2% of the children in the report had someone else using their Social Security numbers. That figure is 51 times higher than the rate for adults of the same population.
We take so many steps to protect our children. But how often do you check their credit report? “Check my kid’s …credit report?,” I can hear you say. “She is only seven! She doesn’t even have her front teeth yet, let alone a credit card! There are so many years to go before we need to worry about that. Right?”
College Students Destroy Financial Future with Poor Choices
College is the perfect period of life to begin sound financial practices including protecting privacy. Not only are college students vulnerable, but they are impressionable and well positioned to learn strong habits that will last them a lifetime. As students launch into independence, we, as parents, hope to give them the best tools possible to insure a bright future. One of the most vital tools is to establish healthy habits that will guard their financial and personal identities for the rest of their lives. People ages 18 -24 are the least able to spot identity theft according to the BBB. That age group needed more than four months to realize someone had damaged their credit history or used their identity. By taking a few precautions, a young adult can avoid the crushing job of trying to recover from having given away the keys to their financial future, which is especially overwhelming while navigating life away from home for the first time.
Identity thieves don’t care a whit if the student has a dime – they just want a clean financial record in order to commit crimes using their credit and future buying power. Unfortunately, thieves are often someone the student trusts: a friend, dorm mate, co-worker, or someone who poses as a sanctioned person on campus. Identity thieves may use personal information to open credit card accounts, access financial accounts, rent an apartment or even commit larger cases of fraud, implicating the student. Here are some tips to get you and your student started down the road to protecting their financial future:
Study Shows Identity Theft of Children 51X More Likely
Based on a recent assessment of 40,000+ SSNs of children, it was found that more than 10% those SSNs were being used by someone other than the child, far in excess of the rate of misuse in the adult population. The study points out the major issues that surround child identity theft and why we need to start paying attention now. It is more prevalent than many think and the threat is growing. Here are a few of the statistics that were found:
- 4,311 or 10.2% of the children in the report had someone else using their Social Security number – 51 times higher than the 0.2% rate for adults in the same population
- Child IDs were used to purchase homes and automobiles, open credit card accounts, secure employment and obtain driver’s licenses
- The largest fraud ($725,000) was committed against a 16 year old girl
- The youngest victim was five months old; 303 victims were under the age of five
Parents need to stop ignoring child identity theft. It is one thing to ignore it for yourself, but failing to protect children, who are otherwise helpless to this crime, shows a definite lack of parental responsibility.
Acting now on behalf of your child will protect them from consequences common to child victims. Click on Child Identity Theft Protection Tips to learn more about the steps you should take.
92% of U.S. Babies Are Online
According to a recent survey by the Internet Security Firm AVG, more than 8 out of 10 babies worldwide under the age of 2 have some sort of online presence. A staggering 92% of American babies have an online presence compared to 73% of babies in Western Europe. The study covered 2,200 mothers in the UK and eight other industrialized countries. With new technology and social media outlets such as Facebook, MySpace, and Twitter, mothers and fathers are eager to post photos and write about their children - even before the baby is born.
When these children become adults, it will be literally impossible for them to separate from their digital past. I can just see the photos and stories posted when they begin to run for office, try to find a job or meet a partner. Digital memory lasts forever, and it is very unforgiving. Those of us older than about 35 have had a chance to put our bad decisions behind us. Children born today will have every aspect of their life recorded, uploaded, backed up, forwarded and publicized completely without their consent.
It was found in England that 23% of babies have an online presence before they are even born. This figure is higher in the US, where 34% have posted sonograms online, while in Canada the figure is even higher at 37%. Another shocking statistic is that even though they are unable to type yet, 7% of babies and toddlers have an email address by the time they are 2.
Tyler Clementi Doesn’t Care About Cyber-Bullying Policies
Guest Blogger: Kathleen Keelan, Prevention Consultants, LLC
I have a hard time telling the parents of a cyber-bullied student that their school “has a policy.” I have a hard time explaining to a child that even though they feel like their whole existence is being shattered every day, all day and all night, that their school district really does care about them. It’s hard to explain to a cyber-bullied student and their parents that the school truly cares that they feel safe.
This I know for sure: the policy is only as good as the people who enforce it.
School officials are scrambling right now due to the “epidemic” of suicides from cyber bullying. Law enforcement is scrambling right now to define their role in this growing phenomenon. The National Crime Prevention Council is happy that physical bullying amongst children has declined. However, the rate of cyber bullying is increasing at an alarming rate. Right now the NCPS found that among teenagers, more than 43% are victims of cyber bullying.
Are Your Kids Safe Online?
As a parent you are often worried about what your kids are being exposed to on the Internet. Apparently so are Facebook and the PTA. They have teamed up to teach parents and children about responsible Internet use. They plan to cover cyber-bullying, internet safety and security and “citizenship online,” according to a news release.
“Nothing is more important to us than the well-being of the people, especially the many teenagers, who use Facebook,” said Sheryl Sandberg, Facebook’s chief operating officer.
Facebook is the number one social media site with over 500 million users and a minimum age requirement of 13. Even that requirement can be easily fudged because Facebook has no way of verifying a user’s age besides asking for their birth date when they register. Parents are having trouble deciding whether to let their children join Facebook prematurely and what they should be cautious of if they do so.
Learn more on Protecting Your Children Online.
It is important to be educated when dealing with any form of social media or social networking website. Social networking is immensely powerful and is here for the long run, but we must learn to harness and control it. You should know the ins and outs, pros and cons, risks and rewards to using these online tools. Because teens and children don’t necessarily have the life experiences to recognize the risks, parents must educate themselves and pass that knowledge on with open and honest discussions on Facebook and Online Safety.
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