Children's identities also being stolen by crooks
By Michelle Singletary
Tara called into my XM radio show distressed about her debt.
But unlike many people who complain about the bills they allowed to mount, much of her debt was not her fault.
Someone, perhaps her grandmother, parents or a close relative, had stolen Tara's personal information and opened credit card accounts — one when she was just 16.
This young woman is part of a small but disturbing trend in identity theft, where crooks steal your personal information and open credit in your name.
One might think children would be spared from this crime since who in their right mind would extend credit to a kid.
The Federal Trade Commission reported that identity theft on behalf of victims under 18 rose from 6,512 in 2003 to 10,835 in 2006. In 2003, just 3 percent of identity theft victims were under 18. By last year, the figure had reached 5 percent. But keep in mind these figures only represent formal complaints.
Tweens (children 8 to 12) and teens are particularly vulnerable because of their increased consumer activity, particularly over the Internet.
"These platforms facilitate information exchange, and if left unmonitored, could lead to enhanced identity theft," said Maxine Sweet, vice president of public education at Experian, one of the three major credit bureaus.
What's so frustrating about child identity theft is that the crime can go undetected for years. Often it isn't discovered until the victim applies as a young adult for credit or tries to rent an apartment or open a bank account.
Here's another reason why authorities don't know how many children are affected. Rather than theft of their personal information over the Internet, often the data is illegally used by a child's own parent or a close relative.
A parent already laden with debt will open new credit accounts using a child's Social Security number. Of course, such fraud goes undetected because the parent isn't going to complain. And in adulthood the child doesn't often rat out mom or dad.
Sweet of Experian offered these suggestions for parents to safeguard their children's identity:
To combat child identity theft, there are now credit-monitoring services for children. For example, Experian is marketing a new monitoring service for $19.95 a month that will alert you if new accounts are opened in your child's name.
But you can do for yourself much of what these services provide.
If you suspect your child's information has been stolen, take action immediately. Check to see if a credit file on your child has been created; it shouldn't have been — these files are generated only when credit is granted. But check only if you have a reason for concern. In checking for a file, you have to send by e-mail or postal service sensitive information to the bureaus.
Each credit bureau has its own procedure to check for a file on a child. For instance, with TransUnion you need to send an e-mail to childidtheft@transunion.com. From the information provided, the bureau will respond as to whether there is a file on record. Parents can visit www.experian.com/fraud or call 800-311-4769 to request a copy of a minor's credit file.
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| Preventing identity theft What to do if victimized: The state Department of Commerce and Consumer Affairs maintains a Web site with information about identity theft at www.idtheft.hawaii.gov. |
