Protecting Your Child Against Identity Theft

To own a credit card, you must be at least 18 years of age or above. Still it is not a rare sight to notice a teenager using the credit card. But how is that possible if they haven’t crossed the threashhold of the legal age, you might wonder? Well, it actually is! Sometimes parents add children as authorized users to help them build a credit history from an early age. There are both advantages and disadvantages to it.

Advantages

The minor can begin to build a credit history from an early age and thus they can obtain credit without any trouble when they reach the legal age.

He or she now has a credit report file that is maintained by the bureaus.

He or she learns to use credit prudently.

Disadvantages

Any lapse in payment by the authorized user (your child) affects the credit report of the primary card holder (you) and the authorized user.

The minor is solicited for credit cards

The minor’s available data can become a victim of identity theft as many of their
personal details like name, social security number et al are easily available to identity thieves

Identity theft in young children

Both college students i.e. high school kids and children can become victims of identity theft. For young children, identity thieves need only their social security number to create new identities.

A ploy called “synthetic” identity theft is used to create these new identities. This is done in the guise of offering pre-approved cards to the child so that the social security number that is divulged can be used. At other times, you will find that the company is offering a “fresh start” just for your credit details.

Identity theft of college students

For college students, their naiveté makes them victims. They rely on Internet to make transactions and on texts for communication. As these students are not very careful when providing their personal details, they often become victims of identity theft.

In fact, statistics show that most victims are aged between 18 and 24. The way in which they easily share confidences with friends like their social security number, storing all the requisite information on their phones and computers and then sharing their unguarded computers with others makes them easy targets.

Why are children easy targets?

Thieves of children’s identity find their clean credit reports an attractive proposition. The thief has access to credit and a clean profile. Most of the times, the families and the children know these thieves. Another attraction is that the credit reports of children are not checked. Therefore, the thieves are secure in the knowledge that they are safe for years.

The theft remains undetected for a long time and when the child grows up and applies for credit or license et al, he finds that he already has a bad credit history of which he knows nothing about. This history is littered with debts leaving him ruined financially. Even if the identity of the thief is known, the crime is not reported, as the child knows the thief. Sometimes, it is his parents and that stops him for reporting the theft.

Protecting your child’s identity

Federal Trade Commission warns parents and students against these thefts. They are to beware of such scams and take precautionary steps. Given below are a few tips to protect your children from becoming victims of identity theft.

Your child’s social security number can be used for creating new identities. Therefore, as far as possible, keep it a secret. If there are documents listing your child’s social security number, destroy them.
Most identity thieves know their victims. Therefore, do not divulge your child’s personal details like name, date of birth and address et al.
If your child has been receiving bills, collection calls or any preapproved offers of credit, it may be a sign identity theft.
If you have college going children, then teach them not to divulge their social security number, and other personal details like their PIN number, date of birth and address.
Parents can request the credit bureaus to place a freeze on the credit file to prevent unauthorized access.

Protection against identity theft for College students

College students prefer to make online transactions and do not check for the security of the website. Teach them to beware of frauds and identity thieves and warn them about phishing.

While making online payments, students should not access Internet on an unsecure Wi-fi or use public computers to make payments. They sometimes have softwares that can record the passwords and PIN by tracing the keystrokes.

They should guard their personal things and not leave them lying about. Also they shouldn’t keep their social security number in their wallets.
Have a frank talk with them before they leave house and tell them not to share their private and personal information with friends and roommates.
If they store their personal details on their computer or laptop, tell them to guard it with passwords and change them frequently. Using a good anti virus can help to protect their computer and data.
One important thing that will alert both college students and parents to any identity theft is by online monitoring of accounts.
College students should be careful with their mail too. When they are posting mail, they should take it to the post office situated in the college campus. Also, they shouldn’t leave any mail lying about. If they are going out for a long time, it is best to leave a forwarding address with the post office or stop all mail.

17-10 Solution

The severity of the problem of identity theft that is spreading in the society led to the hosting of a forum sponsored by Federal Trade Commission and Office for Victims of Crime, U.S. Representatives of state government, federal government, consumer advocates and the victims attended this event. The aim of the event was to find a solution to this malady and safeguard children’s future.

Although there are many people who are concerned with the rising number of identity thefts in children, there are not many who understand the severity of the problem. It was found that approximately 400,00o youngsters are victimized every year and still not enough precautions are taken.

The participants of the event proposed solutions that may be effective in dealting with identity theft. Of these proposals, the 17-10 Solution proposed by Jay and Linda Foley, Identity theft Resource Center, San Diego received the best response. This solution involves a simple registry.

Meanwhile, TransUnion and the other credit reporting bureaus have developed some ways in which the child’s identity can be monitored. It is hoped that more ways will be found to make the process of protecting the child’s identity effective and foolproof. While a solution is being found, parents and college students can exercise precautions and take care so that they are not victims of identity theft.