Preventing an adult’s identity from being stolen is often hard enough, but what about detecting when a child’s ID has been pilfered?
In terms of finances, young children are typically blank slates, identity security experts say, making them a tempting and vulnerable target for fraudsters. Identity breaches can range from the use of Social Security numbers by illegal immigrants or others for employment background checks to strangers or even family members opening lines of credit or setting accounts for utilities under stolen IDs.
“Definitely, children’s identity theft is a huge issue,” said Paul Stephens, director of policy and advocacy for the nonprofit Privacy Rights Clearinghouse. “It tends not to be discovered for a long period of time.”
Credit monitoring firms have taken notice and started offering services to help protect families from what identity security experts call a sneaky and growing threat. Thousands of cases become known each year, but experts believe they represent only a sliver of actual childhood ID thefts.
Gabby Beltran, a victim adviser at the Identity Theft Resource Center in California, said that, with no employment record or criminal record, children offer crooks opportunities. Children make up about 10 percent of the 10,000 cases of identity theft the ITRC handles each year.
There were more than 19,000 reports of ID theft from minors in 2011, up from about 6,000 in 2003, according to Federal Trade Commission data.
That’s probably only a fraction of the actual amount, experts say.
A study last year by the Carnegie Mellon University Cylab found possible ID fraud in one out of 10 Social Security numbers in a pool of more than 42,000 children, a rate 51 times that of the adult population. But those children were being monitored by an identity theft protection network after being notified that their personal information might have been compromised by a data breach.
Given how much our personal data is bandied about either by ourselves or the companies and government agencies we deal with, ID theft is sometimes only a mouse click or piece of stolen mail away.
Children don’t have credit cards, utility bills or mortgages, and instances of ID theft can be hidden for years until a youngster moves out on their own, said Stephens from the Privacy Rights Clearinghouse.
The longer frauds go on, he said, the harder they can be to fix.
By then, the damage can be severe.
The ITRC said that the states of Maryland and Utah either have or are looking at ways to help parents monitor their children’s identities. It was not aware whether Georgia or any other state was taking similar action.
A growing number of companies are offering services to protect not only adults but children. Atlanta-based Equifax recently rolled out its Complete Family Plan, a $29.99-per-month suite of products that, among other things, monitors credit integrity for two adults and up to four children and can send real-time alerts via mobile phone.
Credit reporting agencies Experian and TransUnion offer similar services for various monthly fees.
“A lot of where you stand financially depends on your financial identity,” said Trey Loughran, the president of Equifax’s Personal Information Solutions Division and the father of three children. He called the offerings “a great value” and proactive service, rather than a reactive step.
Stephens scoffed at a $30-per-month price tag, calling it “absurdly expensive.”
Though Stephens’ group does not offer product endorsements, he said AllClear ID, a Texas firm, offers a free option for some ID theft protection services. AllClear ID also markets paid monitoring for $14.95 per month for adults, plus $4.95 per child per month.
Beltran with the ITRC said many of her group’s clients could not afford $30 per month, or $360 per year, for services such as the Equifax plan. Many free options are available, she said.
Parents can check with the Social Security Administration once a year to see whether their child’s digits are being used by someone to obtain employment. Parents can also make requests in writing to the credit bureaus for a free copy of a child’s credit report. If the child is under 18, there shouldn’t be one, Beltran said.
Children receiving bills or creditor calls are obvious red flags that parents much watch for, Beltran said. She also suggested parents request copies of children’s credit reports starting at age 16.
If consumers opt for more robust third-party services, they should be comfortable with the price of any service before signing up, Beltran said.
Loughran, the Equifax executive, said his company’s service is more than just protection for children and said it’s not for every family.
The company might broaden its product line in the future.
“You have to think about this product as a comprehensive family protection product,” he said, equating it to a home security system.
“I can choose to make sure my doors and windows are locked and I can leave my lights on,” he said, “or I can have a home security system.”
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