Identity theft a growing issue

According to Federal Trade Commission statistics, the percentage of identity theft victims younger than 18 has nearly doubled in the past few years. The commission reports that children make up five percent of all identity theft victims in the United States.

According to Identity Theft Data Clearing House, 10,835 identity theft reports were filed on behalf of victims under 18 years old in 2006, up from 6,512 identity theft reports filed on behalf of the same age group in 2003.

Though research has and continues to provide evidence regarding the disturbing trend, surveys such as a recent poll by ConsumerInfo.com, a consumer direct company owned by Experian, reveals that more than 1,000 Americans polled say they know little about child identity theft and think the problem is uncommon and is unlikely to plague them or their offspring.

A July 2007 Experian-Gallup Personal Credit IndexSM survey showed that 29 percent of consumers feel it is very easy for someone to steal a child's identity. A total of 1,014 adults were surveyed in July 2007, according to Experian Public Relations manager Kelly Poffenberger.

"Unfortunately, any child issued a Social Security number could possibly be at risk of becoming a victim of identity theft," said Poffenberger. "Parents need to be aware of how identity theft occurs and what tools and resources are available to help them protect their children from it because it does happen."

According to identity theft prevention specialists, the best way to protect a child's Social Security number from fraud is to limit who has it.

Despite popular belief that the Internet is a major source of identity theft, experts indicate that most identity theft occurs in more common ways, such as mail stolen from a mailbox.

To protect themselves and their children from identity thieves, credit professionals recommend that parents shred mail or documents that contain identifying information, immediately cancel lost or stolen credit cards and bank cards, never give personal information to a telephone solicitor, and cover the keys or touch pad when entering a PIN number at an ATM.

Parents can also reduce the risk of their family becoming victims to identity theft by being cautious of unsolicited e-mails that ask for financial or other personal information, limiting the amount of personal information shared on social networking Web sites, and perhaps most importantly, by frequently monitoring bank and credit card statements as well as credit reports.

To further protect children, professionals recommend taking preventative steps like offering a doctor, business, or other professional office an alternate identification number, such as the parent's driver's license number, instead of revealing the child's Social Security number.

Some companies will accept this offer, and some may not, but researchers claim that taking this step will likely lessen the risk of a child's identifying information falling into the wrong hands.

Poffenberger said that Experian has designed a new product recently to help parents and guardians monitor for identity theft that may be affecting them and their children. Through the Web site www.FamilySecure.com, parents and guardians can enroll themselves and their children in a comprehensive credit monitoring product that alerts them of key changes in their credit file and their children's that could be a sign of identity theft.

"Through this product, parents and guardians are notified of any credit inquiries, open accounts or public records such as bankruptcies, tax liens or monetary judgments associated with them or their child's identity," Poffenberger explained. "If a match is found, the parent or guardian is alerted via e-mail and information is provided regarding how to take corrective action if identity theft has occurred."

According to Poffenberger, identity thieves typically prey on the personal information of children by illegally obtaining their name and Social Security number to establish lines of credit.

"If left unchecked and until the fraud is resolved, the minors' creditworthiness can be seriously damaged and cause issues for them when they try to obtain credit as an adult," Poffenberger said.

Parents and guardians can enroll an unlimited number of their minor children (age 18 and under) at www.FamilySecure.com. The cost is $19.95 per month.

With child identity theft becoming an increasing problem, many advocates are urging lawmakers to create laws with stronger penalties for those who victimize children, as well as preventative measure laws to help prevent child identity theft from taking place, however, not all states have done so.

Though states like California, Florida, Illinois, Nevada, Virginia, and Wyoming have incorporated some legislative or governmental action on child identity theft specifically, most other states including Missouri, have yet to do so.

Missouri does, however, have several laws in place regarding identity theft as a whole and how violators will be punished.

According to Dunklin County Prosecuting Attorney Stephen Sokoloff, there are currently a multitude of laws in place regarding identity theft of all kinds.

The punishment for identity theft in Missouri is typically a felony charge, though Sokoloff says the charges filed depends on the specific areas in which identity theft or fraud was used.

"There are various laws in place to protect people in Missouri from identity theft and ensure that those who break the law pay for their offense," Sokoloff said. "None specifically geared toward child identity theft, but several aimed at identity theft as a whole."

In Virginia, there are several separate laws in place that could lessen the risk of child identity theft. One of the state laws requires child day-school programs that reproduce or retain documents of a child's proof of identity that are required upon enrollment into the program to destroy them upon the conclusion of the requisite period of retention.

Under this law, the procedures for the disposal, physical destruction or other disposition of the proof of identity containing Social Security numbers shall include all reasonable steps to destroy such documents through shredding, erasing, or otherwise modifying the Social Security numbers in those records to make them unreadable or indecipherable by any means.

Because child identity theft is typically not discovered until the victims turn of age and try to establish a line of credit, the crimes can go undetected for years. For those parents who cannot afford a program like Family Secure offered by Experian to help them monitor their child's credit as they grow, there is another no-cost option.

Legislation currently allows individuals to order one free copy of their credit report from each of the nationwide consumer reporting agencies every 12 months or annually. This free report may not include your credit score, however, it is a complete list of any reports that have been turned into either of the three bureaus. To apply for the free credit disclosure, consumers must go to one Web site, AnnualCreditReport.com. Consumers also have the option of calling (877) 322-8228 or writing and sending a request to P.O. Box 105281, Atlanta, Ga., 30348-5281.

The three nationwide consumer reporting agencies include Experian at (888) 397-3742, Trans Union at (800) 888-4213, or Equifax at (800) 685-1111.