News : Child Identity Theft is a Growing Problem

Child Identity Theft is a Growing Problem

Identity theft continues to be a problem for many people across the country. The Federal Trade Commission estimates about 9 million Americans are victims of identity theft every year. There have been recent reports in the news concerning identity thieves searching for the inactive social security numbers of children. Children who have been victimized may not even realize it until they apply for their first driver’s license or credit card. Parents may try to open up a savings account or a college fund for their child and may discover that an account already exists for that social security number, which probably has a bad check record.

According to the Identity Theft Resource Center, it is difficult for credit issuers to verify the age of an applicant. The information on a credit application is generally taken at face value. Credit reporting agencies set the “official” age of the applicant with the first credit application. If identity theft is discovered, parents will need to file a dispute with the credit reporting agency.

Strangers are not always the source of child identity theft. In some cases, the perpetrator is a parent or a relative. Children need to know that they did nothing to cause it. Parents also need to teach their children the importance of keeping personal information safe.

Some tips for parents include:

* Everyone, including children, is entitled to a free annual credit report (you can request one at http://www.annualcreditreport.com). Parents should find that their child’s credit report has no credit activity or is blank.

* If your child has bank accounts, credit cards or other financial accounts, check the account statements frequently and carefully for fraudulent activity.

* Older children need to be taught the importance of password integrity. Have them change PINs and passwords regularly, and not use sensitive information such as birthdates, social security numbers and mother’s maiden names as passwords.

* Question anyone who asks for a copy of your child’s birth certificate or social security number. If it is necessary to reveal this information, say for school registration, ask how the information will be stored and who will have access to it.

* Stress to your children the importance of not giving out personal information on the phone, through the mail or over the Internet (this includes Facebook and MySpace).

* When discarding papers that contain personal information of any family member, shred them instead of just throwing them in the trash.

For more information about avoiding identity theft, check out the FTC website at http://www.ftc.gov/bcp/edu/microsites/idtheft or the ITRC website, http://www.idtheftcenter.org.

Being knowledgeable about identity theft and taking precautions at an early age can help ensure children won’t become identity theft victims in the future.