Child-identity theft increases

By Lucy Soto

For the AJC

Imagine applying for that first job, that first exciting credit card, that freshman-year college loan. Now, don’t.

For more young adults, plans and hopes are being dashed because they are unwitting victims of identity theft at the hands of someone they know, usually their parents.

It often happens when victims are too young to do anything about it, so it’s a crime that can go undetected for years.

A parent or other relative uses a child’s personal information, including Social Security number, to get a credit card, loan or other account with a clean credit record. That’s identity fraud in Georgia.

When the child enters the business and financial world as an adult, he encounters debt he knows nothing about

“They won’t be able to get a credit card. Or if the debt owed is disproportionate to their earnings, then they can’t get loans. It’s difficult to get a car,” said Michelle Jones, senior vice president of counseling for CredAbility. The Atlanta-based nonprofit, provides credit counseling and education across the Southeast.

“And when you are applying for car insurance or applying for a job, people look at your credit score. The worst case scenario ... you have a young adult who is facing filing for bankruptcy on a debt that they never personally incurred,” Jones said.

The Federal Trade Commission’s figures on identity theft show Georgia ranking seventh nationwide for the highest number of complaints over the last three years. FTC breakdowns by age show about a quarter of the complaints come from 20- to 29-year-olds. But there’s no way to say how many are from parent identity theft.

Georgia Office of Consumer Affairs spokesman Bill Cloud believes cases of child identity theft have multiplied substantially in the last few years. Identity theft is a felony in Georgia.

“It’s a growing problem,” said Cloud, who said about 3 percent of identity theft victims in 2003 were children. That number increased to about 5 percent in 2006.

“There’s no reason to think that from 2007 forward, the way the economy is going, that this thing has not been exacerbated further,” said Cloud, whose office now routes all ID theft complaints to the Georgia Bureau of Investigation. “It doesn’t have to be a mom or dad. It can be a relative, a grandmother, an uncle. You have the kid’s Social Security number, and you go and set up an account in their name... or their license. And a lot of times people don’t want to prosecute a relative.”

With the persistently weak economy, more people are falling behind on credit cards, mortgages and utilities. And this kind of crime becomes more appealing.

Age apparently doesn’t matter. Because credit checks don’t verify age, parents or relatives who pilfer a child’s identity can take out loans, open new credit cards, and create gas, electric or telephone accounts.

“All it takes is a parent taking and putting the child’s Social Security down on an application,” said Linda Foley, founder of the Identity Theft Resource Center. “Include whatever birth date and address and name, and that begins a credit report under that Social Security number. ... They start a fraudulent [credit] report and they continue to use it.”

Child identity theft is a crime that has taken a few decades to ferment. In the early 1980s, the Internal Revenue Service asked the Social Security Administration to give all children Social Security numbers. Now, those youngsters are reaching the age when they use those numbers.

A Florida man in his mid-20s turned to the Identity Theft Resource Center for help after he found out his estranged father had used his identity for years. The nonprofit center gives free help to consumers and promotes prevention of identity theft.

The young man found out when he applied for a credit card. His financial problems cost him his dream of becoming a police officer because he couldn’t pass a background check.

“He had a lot of hopes and dreams,” Foley said, “and we’re trying to help him have the opportunity to do what he wants to with his life.”

Foley said many young adults in this situation have to work through “a lot of emotional stuff.”

“There’s a feeling of denial that this can’t be happening,” she said. “Anger, betrayal and then a sense of grief. A loss of innocence, of ‘how could they do that to me? How could they hurt one of their own and then, what am I going to do about it?’ ”

Deciding to file a police report and press charges is the tough first decision.

The Identity Theft Resource Center directors have been in talks this summer with officials from the Social Security Administration and the Department of Justice to find solutions to identity theft issues.

In the meantime, for young adults who discover their parents have pilfered their identities, the first step is to find help.

“The most important thing ... because it is such a maze of emotions and different options, is to find someone who knows how to deal with child identity theft cases and have them help you walk down the path,” Foley said.

In some cases, said Jones of CredAbility, “people have the best intentions that they are going to repay the debt, and they don’t mean to hurt their children. But this can’t be undone, and they are compromising their children’s future.”

Steps to work through the problems

If you suspect your information — or your child’s — has been stolen, take action immediately. Here are a few steps to begin:

● Check credit files. Minor children shouldn’t have credit files unless their information has been pilfered.

● Each credit bureau has its own procedure. For TransUnion: send an e-mail to childidtheft@transunion.com with relevant identifying information, and the company will confirm if it has a file. For Experian: visit www.experian.com/fraud or call 1-800-311-4769. For both these agencies and Equifax, follow these instructions on what to send to order a child’s report: bit.ly/aDFTi1

● Adults can order their own copies from Experian, TransUnion and Equifax through www.annualcreditreport.com , the federally-created Web site that allows free reports once a year.

● File a police report using the information from your credit reports as evidence. Victims can provide a printed copy of the Federal Trade Commission’s Universal Complaint Form to the law enforcement agency to incorporate into the police report. Find the form online: bit.ly/bN25VL

● Call all companies or collection agencies listed on your credit report that you haven’t personally opened. Ask them to send you a copy of the application and transaction records. You must send a police report with this request.

● If you have a police report listing all the fraudulent accounts, the credit bureaus must block the fraudulent accounts from your credit reports within 30 days.

Check our sources

● Identity Theft Resource Center: www.idtheftcenter.org

● ID Theft and Children: bit.ly/cddc6O

● Federal Trade Commission’s Complaint site: bit.ly/ceBu1U

● Privacy Rights Primer on ID Theft: www.privacyrights.org/Identity-Theft-Data-Breaches

● Georgia Office of Consumer Affairs — Instructions for Victims: bit.ly/9RWweH

● Georgia laws that deal with identity theft: www.legis.state.ga.us/legis/2001_02/sum/sb475.htm

If you have a tip about government waste, consumer rip-offs or threats to your health and safety, contact us by e-mail or phone: spotlight@ajc.com; 404-526-5041.