Although less at risk for identity theft than adults, children are still becoming victims of identity theft at a growing rate. According to a study conducted by ID Analytics, which monitors identity risk and creditworthiness, more than 140,000 identity frauds are committed on children each year. In addition, the study finds that when children’s data is not protected, it is misused more frequently and fraudulent activities go undetected for years.
The ID: A Labs study identified the most common forms of identity theft on minors. Topping the list are credit card identity fraud and wireless activity fraud. According to the study, 60 percent of child identity theft incidents involved identity thieves opening up a credit card account using the child’s personal information. Also in the majority of fraud occurrences are cell phone and other wireless provider accounts opened under a child’s name. As Tom Oscherwitz, chief privacy officer at ID Analytics points out, identity thieves are on the lookout for children’s personal information that is left unprotected because their personal data is less likely to be monitored for misuse and opportunities to obtain credit under a child’s name are wide open.
The study was based on activity over a 12-month period from April 2010 to March 2011 of the more than 172,523 children enrolled in the Consumer Notification Service provided by ID Analytics. Of the 600 possible cases of child identity theft, 55 percent were confirmed as actual identity fraud by credit card issuers and other service providers. Oscherwitz said the solution to child identity theft needs to be a comprehensive one. In order to fully protect a child’s name, date of birth, social security number and other personal identifying information, he recommends a layered approach to identity theft protection that encompasses consumer education, technological advances, enhanced business processes and legislative guidance.
The growing incidences of child identity theft has prompted the Federal Trade Commission (FTC) and the U.S. Department of Justice’s Office for Victims of Crime (OVC) to hold a workshop entitled, Stolen Futures: A Forum on Child ID Fraud. Experts presenting at the workshop referenced additional research that found that identity thieves target children 51 times more than adults. The reason, the experts explain, is that a child’s Social Security number is unused, making it easier for identity thieves to associate a different name and birth date to it.
Child advocates recommend that parents become more vigilant in protecting their child’s personal information. For example, asking questions about how a child’s social security number will be used, handled and disposed of is important. Caution, awareness and monitoring, the experts agree, are the best preventative measures.
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