Children Not Immune from Identity Theft
KTRE-TV -LUFKIN, TX -- Identity theft is a growing problem and kids aren't immune. Senator Hillary Rodham Clinton says as many as 400,000 children may be victims of identity theft. She says the number of complaints has grown by 78 percent, making it the fastest growing segment of ID theft victims. That's why the New York Democrat is expanding her legislation to make sure all companies providing access to credit are able to verify the applicant's age. She says her bill would fine credit card companies that don't comply.
Full Story (KTRE-TV) . . . More (Consumer Affairs)
Our Analysis:
From the perspective of an opportunistic criminal, it’s understandable that children would become a prime target of identity theft. They’re not actively involved in financial matters and would otherwise be oblivious to the very concept of an official personal identity. Any precautionary or remedial action on their part would have to come from a parent or guardian, who probably would not even be aware of the possibility of child identity theft. Simply put, children are vulnerable. And the consequences of having one’s identity stolen at a young age, before any financial history is established, can be severe. (Talk about starting adult life at a serious disadvantage!)The article describes how schools are in the vanguard of prevention efforts, electing in some cases to omit Social Security numbers from identity cards and other circulating records. Also, Senator Clinton has introduced legislation to make sure all credit card companies are able to verify the applicant's age. She cites one story in which a thief used a seven-year-old's name, Social Security number, and clean credit history to purchase a $40,000 houseboat.
It’s amazing that credit card companies don’t verify the age of applicants as a matter of course. It shows once again that a key sector of the financial infrastructure has been caught off guard by unanticipated challenges from identity thieves. Legislation and prevention initiatives through public institutions like schools and government agencies are more than welcome, and represent a solid response to identity theft. But, as they say, the best defense is a good offense, and proactive measures need to match or at least be somewhat comparable to the innovation shown by identity thieves.
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Here’s what you can do to prevent child identity theft:- Keep your child's Social Security card and information locked up in a safe or strongbox. Do not carry it or share it with anyone outside the household.
- Ask to have your child's Social Security number obscured or removed from insurance or medical documents.
- Don't give your child's Social Security number to them until they're old enough to understand what it is and why they need it.
- Check both yours and your child's credit reports regularly for any signs of fraud or unidentified accounts.
