Stolen Social Security Numbers

FTC finds child ID theft a growing problem

Picture a young child with a bankruptcy on his record. Or a 17-year-old who owns several houses and cars, and carries $750,000 worth of debt. The latter child's problems are the result of eight people fraudulently using her Social Security number. Both stories are true cases of child identity theft related yesterday during a Federal Trade Commission discussion, "Stolen Futures: A Forum on Child Identity Theft."

In fact, more than 140,000 children are victims of identity fraud annually in the United States, according to a study conducted by risk-management firm IDAnalytics , whose results were released during the FTC forum.

Most of the fraudulent use of the minors' identities came from the cell phone and wireless industries, according to IDAnalytics' study. The research was based on a review of 172,000 children's accounts that were protected through the company's Consumer Notification Service (CNS). Minors who were alerted about potential privacy compromises by CNS were seven times more likely to actually experience fraud than adults who were similarly alerted, according to Tom Oscherwitz, chief privacy officer for IDAnalytics.

Other research also points to the prevalence of child identity theft. For example, children are targeted 51 times more than adults, according to Bo Holland, founder and CEO of Debix, a company that provides identity-protection services.

What puts kids more at risk for identity theft, panelists agreed, is the freshness of their Social Security numbers. Because a child's Social Security number is unused, it's easy to associate a different name and birth date with it.

Identity theft impacts a child in a variety of ways, particularly once he or she reaches adulthood. According to Michelle Dennedy, founder of The Identity Project, such a victim could be denied credit; find their motor vehicle records tied to a criminal's name; be denied college loans; be unable to get an apartment or open a utility account; and have his or her medical records muddied with incorrect information.

While child identity theft is often committed by organized crime groups, the child's own family might also commit such fraud, according to Linda Foley, co-founder of the Identity Theft Resource Center, which provides assistance to ID theft victims. In one case, she said, the police knocked on the door of the victim's mother and asked to see her son, explaining there was a warrant for his arrest for failing to appear in court for speeding tickets. It wasn't the son who'd been getting the tickets, however. It was his father, using his son's Social Security number as his ID.

What are the Most Common Types Identity Theft? | HOFS Blog

Identity theft has plagued civilizations since the beginning of time.  However, the modern age has ushered in updates on the old scheme at your expense.  The Federal Trade Commission (FTC) maintains a database known as the Consumer Sentinel Network and the intent of this massive database is to assist law enforcement officials solving crimes related to identity theft, among other misdeeds.  According to the latest reports , “1.334 million complaints were added to the database” in 2011.  It’s important to remember that identity theft can wreak havoc on your credit score and financial future .

There are several types of identity fraud, however we’re going to focus on the main three in hopes of teaching you how to avoid having your identity stolen.

1.   Government benefits   identity theft

Criminals may steal individuals’ identities in order to obtain health benefits, such as doctor’s care and medicine, or rogue businesses may charge the government for services using the Medicare numbers of victims.  Conversely, government benefits, including tax rebates and welfare, may be refunded to a person who has stolen someone’s identity by using their social security number or social security card.

2.   Criminal identify theft

In order to avoid jail time or fines individuals caught committing crimes may use a fake name.  The result?  The real person ends up with a criminal record and in some cases, arrest warrants.  Matters are further complicated because of the ubiquitous use of “It’s not me officer, I swear!”  Therefore, people may spend thousands of dollars in lawyer and court fees attempting to prove that they did not commit a crime.

3.   Financial identity theft

A lost driver’s license or a stolen social security number can allow criminals to apply for credit cards under the victim’s name.  The result?  Charges for goods and services that remain unpaid and will significantly dent your credit score.  Moreover, victims of financial identity theft will be forced to contact a number of government agencies, as well as various financial institutions, to clear their name which can be a costly and time-consuming endeavor.

In our next post we’ll discuss the steps you can take to protect your identity.  Until then, share your horror stories with us in the comments.

50 Plus One Tips to Preventing Identity Theft

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Congressional Record, V. 144, Pt. 17, October 7, 1998 to October 9, 1998

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