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Child ID Theft Expert: Your Child is 51X More Likely to Become Victim

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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?”

Unfortunately, no. Because children have untouched and unblemished credit records, they are highly attractive targets. Child identity theft is profitable, hard to detect and a nightmare to recover. Thieves steal a child’s identity early on, nurture it until they have a solid credit score, and then abuse and discard it. If it’s not discovered in time, fraudulent use of your child’s identity could mean the loss of educational and job opportunities and starting off adulthood at a serious disadvantage with someone else’s bad credit in her name. All an identity thief needs to ruin your child’s bright financial future is her name and Social Security Number.

“Shouldn’t my child’s age show up on any credit background check, shouldn’t the merchant recognize that the person in front of them buying a car on credit isn’t seven years old?” you ask. Yes, it should, but the people screening the credit report rarely give it the time and care necessary to detect fraud.

All too often, background checks involve simply matching the name and the Social Security number provided. This leaves doors wide open for scandalous minds to wreak havoc on your child’s perfect credit. The most unsettling part is that the age of the applicant (in this case, the person posing as your child) becomes official with the credit bureaus upon the first credit application. This makes clearing a sabotaged credit record even more difficult because you have to prove to the credit bureau that your child is only seven and isn’t responsible for thousands of dollars of debt.

In no time at all, your child could have a maxed out credit card, unpaid bills and a huge mortgage for beachfront property across the country. You might not discover the illegal purchases until your child opens a bank account, applies for a job, tries to get a driver’s license or enters college. At that point, you are left with the time-consuming dilemma of cleaning up someone else’s fraudulent mess. If only clearing up a credit report was as easy as cleaning up after your kids.

Do the gaping holes in our current credit system and the audacity of criminals leave you enraged? They should. It is imperative that you use your anger as fuel to protect and prepare your children’s future before it is too late. In Part II of this series, we will talk about the specific steps to take in order to protect your child from identity theft.

John Sileo lost almost a half-million dollars, his business and his reputation to identity theft. Since then, he’s become America’s leading keynote speaker on identity theft, social media exposure and weapons of manipulation. His clients include the Department of Defense, Pfizer and Homeland Security. To learn more, visit ThinkLikeASpy.com.

 

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:

  • When registering for daycare, schools and recreational sports
  • On medical, dental and hospital records
  • When joining organizations like the Girl Scouts, Boy Scouts, etc.
  • When the above information is permanently stored and accessed by volunteers or employees
  • When one of the above organizations is breached by a hacker or malicious software
  • When an adult befriends your child on a social networking site (MySpace, Facebook) and eventually socially engineers private information out of them

The Three Basic Types of Child Identity Theft

  1. Financial identity theft occurs when the name and Social Security number is used to establish new lines of credit.
  2. Criminal identity theft happens when the criminal uses the child’s identity to obtain a driver’s license or substitutes the child’s identity if caught in a criminal act.
  3. Identity cloning entails using a child’s identity (via information collection or a black market ‘purchase’ of personal information) for medical, financial, criminal and governmental purposes. The most common form of cloned identity theft is committed on behalf of undocumented workers looking for an identity that will keep them working in this country.

For parents, cleaning up the disaster of identity theft for their children is costly and incredibly time consuming. Getting a new Social Security number is almost impossible, and rarely the best option.

Taking steps right now to protect your child from this horrible crime is one of the greatest investments you will ever make in their financial and emotional future.

Protecting Your Children

Acting now on behalf of your child will protect them from consequences common to child victims:

  • Starting adulthood with a credit rating low enough to scare away the hungriest of loan sharks
  • Being denied a first loan, credit card or apartment rental because of a crime committed 10-15 years earlier (the passage of time makes this crime very hard to clear up)
  • Being denied access to college or a new job
  • Having a warrant out for her arrest for crimes that she didn’t commit

In the same way that you can’t protect your children from every bruise and scrape, you can’t entirely remove the risk of identity theft. You can, however, prevent or soften the fall if it does happen. Take these steps first:

  1. Watch for mail in your child’s name. This is a potential sign that credit has been established using their identity. The most common types of mail that signal identity theft are financial (pre-approved credit cards, etc.).
  2. Consider ordering a free credit report for your child. If you suspect foul play, write to the three credit reporting bureaus (Equifax, Experian and TransUnion) to see if your child has a credit profile (no profile, no chance that it is being used illegally). If they do have an active credit profile, you will need to resolve this with the specific credit bureau. Please note that requesting your child’s credit report repeatedly can actually establish a credit profile in their name. For a more convenient option, use an identity monitoring service for you and your family that alerts you when credit is established in any of your names.
  3. Stop giving out your child’s personal information. Until you are confident that it is absolutely necessary to receive the services desired, withhold their personal information. More than 80% of organizations that ask for your child’s Social Security number don’t actually need it to establish services. If you must give it, ask them how they will use it, how long they will keep it and how it will be protected while they have it.
  4. Protect your child’s identity documents. Birth certificates, passports, bank account information, wills and trusts involving children should all be locked securely in a fire-safe or bank’s safety deposit box. Physical document theft is one of the most prevalent ways kid’s identities are stolen.
  5. If you find evidence of fraudulent activity, contact the police, the source of the fraud and all three credit bureaus. Filing a police report helps to establish your child’s innocence in an official way.Have the credit bureaus FREEZE your child’s credit for maximum protection. Keep detailed records of all correspondence between yourself, the police, the merchant and the credit bureaus. It will come in handy should you ever find yourself in court, as I did.
  6. Educate your children on the importance of protecting their personal information. Teach them about the value of their personal information: their name, address, phone numbers, email address, Social Security Number and any passwords and PIN numbers. Reinforce that they own their private information and that it should not be shared with friends, over the internet or with anyone whom they don’t know or trust.Education is absolutely the best financial gift you will ever give to them.

In the case of child identity theft, an ounce of prevention is worth a lifetime of financial security. Don’t let the center of your universe become just another statistic. Because you love and protect your children as much as I do, start this process immediately.

John Sileo lost almost a half-million dollars, his business and his reputation to identity theft. Since then, he’s become America’s leading keynote speaker on identity theft, social media exposure and weapons of manipulation. His clients include the Department of Defense, Pfizer and Homeland Security. To learn more, visit ThinkLikeASpy.com.

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

Read the Entire Report

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.

 

John Sileo’s motivational keynote speeches train organizations to play aggressive information offense before the attack, whether that is identity theft, data breach, cyber crime, social networking exposure or human fraud. Learn more at www.ThinkLikeASpy.com or call him directly on 800.258.8076.