Child ID theft is growing—but there are ways to be safer

By Janis Hashe

Imagine that you’re a college-bound 17-year-old, and you apply for a student loan—which is denied. Undeterred, you apply for a job to help pay your way through school, but you are turned down “because your credit is so bad, we consider you a high risk.”
Wait—you have no credit history. Or do you?
The above story is true, and 22-year-old Zachary Friesen is now making the issue of childhood identity theft his personal cause. When Zachary was 7, his identity was stolen by a stranger, who used it to open credit and buy a $40,000 houseboat. The criminal eventually defaulted on the payments, ruining “Zachary Friesen’s” credit. But since there had been no contact from the creditors, no overdue notices, nothing—it was only when Zachary attempted to establish his credit that the theft came to light.
And Zachary is far from alone. Most expert sources put the number of child identity thefts at 500,000 annually.
“It put my life at a standstill. Fortunately for me, my mom is a lawyer, and she has helped me clear my credit,” says Zachary, who is still dealing with residual fallout from the theft. “But the Federal Trade Commission says that the under-18 group is the fastest-growing group for ID theft.”
Several months ago, the FTC, the agency primarily responsible for preventing identity theft, sent a pamphlet to every mailing address in the United States, warning, “Don’t carry your Social Security card in your wallet, or write your Social Security number on a check.” But how many parents keep their children’s Social Security cards “safe” for them, in places that in fact may not be secure?
Zachary has created an awareness program that he tours to high schools. “I talk about ID theft, what you need to be aware of. I tell kids not to give out any more information about themselves than they need to. And I recommend that they check their credit report through AnnualCreditReport.com to make sure no one has been using their ID.”
Now sponsored by Lifelock (Lifelock.com), a company that monitors and secures both adult and child identity, he also suggests that parents tell agencies, medical offices and schools that insist upon having their child’s Social Security number, “I will be monitoring this, and be aware that you could be putting my child at risk for ID theft.”

Why and how ID theft happens

Linda Foley is the founder of the nonprofit Identity Theft Resource Center, which works to help both adult and child victims of identity theft. The center’s website, IDTheftCenter.org, is a comprehensive guide to the subject.
“What most people do not understand is that credit issuers may not have a way to verify the age of the applicant,” Foley says. “The information on the application is typically taken at face value. This is particularly true with telephone and Internet applications. In person, few credit issuers request proof of identity, a driver’s license, for instance. Even then, many clerks have not been trained on how to recognize counterfeited or altered licenses. For these reasons and others, issuers often will not know the true age of the applicant. This is a fault within our system that needs to be rectified.
“A second mistaken concept is that the credit reporting agencies know that this application must be fraudulent because the applicant is a minor. Unfortunately, there is little, if any, sharing of information about the age of a person with Equifax, TransUnion and Experian. The age of the applicant becomes ‘official’ with the first credit application. For example, if the first application indicates that the applicant is 24, the credit agencies believe that person is 24 until a dispute is filed and proven.”
Foley notes that many children have their identities stolen by the very person who should be protecting them: a parent.
Tod Burke, Ph.D., a former police officer and now a professor of criminal justice at Virginia’s Radford College, also points to this disturbing trend. “Sometimes there’s a divorce, and one parent’s credit is no good, so they use the child’s to get a phone or a credit card, or to buy a car,” he says. “Small local agencies often do not cope with this very well. You will need to be proactive to protect your child.”

Steps to prevent theft

“Do not provide your child’s Social Security number unless you have to. Don’t carry it in your wallet. Get a locking mailbox. Shred any documents that have Social Security numbers on them,” advises Robert Siciliano, chief security analyst for OneYouSecurity.com, another agency that offers paid protection. “If you are seriously concerned that an ex-spouse might steal your child’s identity, for example, it may well be worth it to invest the $10 a month for you and $25 a year for your child for a service that has developed a relationship with the credit bureaus.”
Siciliano also recommends sitting down and talking with your child, in a non-frightening way, about what information should be given out to others. “That dialogue should begin when they are old enough to understand,” he says. “Use ‘what-if’ scenarios. Explain that, ‘Our family only gives out this information,” he says.
Dr. Burke notes, “Kids give out way too much information about themselves on the Internet. Know what’s on your child’s FaceBook and MySpace pages. In some cases, it’s like an open invitation to identity theft.” Kids need to be made aware of possible scams targeting them and asking for identity information “because you are the grand-prize winner.”

If your child’s identity is stolen

“Contact the credit agencies to report it and keep a detailed log of who you called and when you called them. Contact the police and have a report done. Obtain copies of all the fraudulent transactions you can to aid the police,” Dr. Burke says.
“In some cases, you will need to freeze the child’s credit report until he is 18,” Linda Foley says. “In some cases, you may have to apply for a new Social Security number for the child.” The Identity Theft Resource Center is also available to provide help for parents in this situation.
“Don’t forget that the child may need counseling, if they are old enough to know what is happening. This is a real violation, and you may have to sit down and reassure them that they are safe.”

Prevention checklist from the Identity Theft Resource Center

1. Be aware that consumers cannot prevent most cases of identity theft. However, there are steps you can take that limit a thief’s opportunities to take advantage of you:
2. Before throwing them out, shred all papers that contain account or Social Security Numbers.
3. Don’t carry your or your child’s Social Security card or Social Security Number in your wallet. If the number appears on another card you must carry with you, like a health insurance card, make a photocopy of the card, cut off the last four numbers of the Social Security Number, and carry that photocopy with you on a daily basis. Carry the original only on days you know you will need them.
4. Use a locked mailbox to send and receive all mail. Do not leave mail unattended for pickup in an “out” box.
5. Some schools ask for your child’s Social Security Number during registration. Ask if this is an optional field and what would happen if you don’t fill it out. Many parents are surprised to find out that it is optional. If a school does require it, make sure you talk with an administrator to find out why. This is a time to be assertive and make sure it is necessary; a policy change sometimes begins with a few parents’ objections.
6. Parents or guardians are often asked to show a copy of a birth certificate and/or a Social Security card in order for their children to participate in after-school sports. Coaches may ask for photocopies of these papers. ITRC does not believe that this is a wise business practice and recommends the following: Ask if the coach has had a criminal and financial background check done by an independent or hiring source. If not, will one be done? This should be an automatic practice due to the risk of child molestation and child identity theft.
7. Resist giving out your driver’s license number or Social Security Number (or a child’s Social Security Number) unless they have a good reason for needing it. A doctor’s office is a great place for a child profiler to collect information. Make sure that the physician is aware of that, and that his or her staff is taking proper precautions with your child’s information. Watch for people who may try to eavesdrop and overhear the information you give out orally.
8. Teach children not to give out personal information over the phone, and do not give out any of your or your child’s information on the Internet unless you are sure that you are dealing with a legitimate company. When in doubt—don’t. You can check out companies with the Better Business Bureau, the FBI or your state attorney general.

Red flags:

When something may be wrong*

∑ There are calls from collection agencies, bills or credit cards sent to your home in your child’s name.
∑ Your child receives a pre-approved credit card offer, though he’s never had a bank account. If there is an open college savings account, that may be the reason. Check it out if the name is slightly different—if, for example, you have the account in your child’s legal name but the pre-approved offer comes in his nickname.
∑ Your child’s name appears on the caller ID from another person’s house. For instance, calls placed from a non-custodial parent’s home or from a grandparent’s home show up on caller ID in the child’s name.
∑ A person who knows your child’s Social Security Number and has had financial problems suddenly “finds” a lot of money.
∑ A person who knows your child’s Social Security Number and may have access to the birth certificate is able to get a driver’s license when you know the original was suspended or revoked.
∑ Your child receives a notice about a warrant for a traffic violation or for taxes owed or a lien on income.
∑ You receive a notice from the IRS that your child’s name or Social Security Number is already listed on another tax return.

If you see one of these red flags, a quick check of credit reports will help you sort out the truth. Currently, all three reporting agencies have only automated systems. You should call to request a credit report for your child only if you suspect that your child is a victim of identity theft. If you are told that there is no credit report, this is probably not a case of financial identity theft.
*courtesy ITRC

Where to get help in Tennessee

State identity theft laws

∑ Identity theft Law – Tenn. Code Ann. § 39-14-150
∑ Identity theft Law – Tenn. Code Ann. § 39-16-303
∑ Spam Law – 47-18-2501 (SpamLaws.com/state/tn.shtml)

Tennessee’s credit freeze program
HB 200: Effective Jan. 1, 2008; applies to all consumers. No fees for ID theft victims, $7.50 to place for everyone else.
How to place: ConsumersUnion.org/pdf/security/securityTN.pdf.

Contacts
Attorney General Robert E. Cooper, Jr.
500 Charlotte Ave.
Nashville, TN  37243
(615) 741-5860 or AttorneyGeneral.state.tn.us

Tennessee Department of Safety:
State.TN.US/safety

Federal Trade Commission Identity Theft Complaint Input Form:
FTCComplaintAssistant.gov

FBI/FTC’s Internet Fraud Task Force:
IC3.gov

Credit reporting agencies:

∑ Equifax
PO Box 740241
Atlanta, GA 30374-0241
(800) 525-6285 or Equifax.com
∑ Experian
PO Box 9701
Allen, TX 75013-0949
(888) 397-3742 or Experian.com
∑ TransUnion
PO Box 6790
Fullerton, CA 92834
(800) 680-7289 or TransUnion.com