There are few things more distasteful, unethical and simply immoral than adults who steal the identities of children in an effort to open new credit card accounts, bank accounts and even to obtain new “clean” social security numbers. Unfortunately, it’s a growing trend.
Emerging Market
A recent report details the emerging market for children’s identities as thieves seek to steal their social security numbers. These social security numbers can be used for years undetected; after all, a seven year old has no need for a bank account, a mortgage or a Visa credit card. By the time the little ones begin to define their credit histories, it’s only then they realize someone has had a head start – and have annihilated it. From cell phones to student loans, these young people face incredibly difficult times as they seek to restore their names.
No Second Thought
These days, the focus is on data breaches at major corporations – these are the stories we get the breaking news emails on. We never hear of how often a kid’s ID is stolen – nor do we hear of how easy it is to steal it. Schools and even daycare centers represent a healthy portion of the locations these identities are stolen.
Further complicating matters is the fact child identity theft poses risks not only to young adults, but also to the financial system by eroding confidence that loans will be repaid, experts say.
Michelle Dennedy of The Identity Project* explains it this way: “There’s a systemic financial impact, as well as what we should be doing morally, ethically and legally to help our children have a future that they design on their own.”
The Numbers Rise
As more illegal immigrants enter the country and seek to establish their lives here, targeting a young child’s identity is the easiest way. They are able to gain employment, rent apartments and qualify for car loans. And the numbers keep rising. Last year, about 8 percent of identity theft complaints came from victims 19 and younger, slightly more than the year before, according to the Federal Trade Commission. More than 140,000 children are victims of identity theft each year, according to ID Analytics.
*The Identity Project is sponsored by the FTC.
The Thieves
It comes as little surprise that organized crime plays such a significant role in these scams, what does surprise some is that the thief is often a family member – and sometimes, even one’s parents. This adds a double sense of betrayal on the part of the child as she grows into adulthood.
For now, parents can keep their children’s social security cards, medical records and other legal papers stored away and definitely offline. A safety deposit box is a good start. Regardless, for those who have been victimize by identity theft, they know every time they apply for a credit card offer or a personal loan, they’re playing a guessing game.
