SMiShing | ViSHing | Children targeted for identity theft | Phishing | SaSS -- GSNEO | Cake Auction

Victims are often under six years old.

Identity theft is a problem growing at an epidemic rate. Consumers whose identities are compromised face financial loss and years of frustrating red tape as they straighten out their credit histories.

Not surprisingly, children are becoming targets ripe for identity thieves.

Five percent of the more than 255,000 identity theft complaints received in 2005 by the Federal Trade Commission, involved people 18 or younger, an increase from three percent in 2003.

According to a recent study, thefts usually takes place early in a child's life, with 54% of cases happening before the child was six years old.

While parents or other relatives were the most likely perpetrators, the study also found that, other identity thieves increasingly target children because it's easy to do, and to get away with for long periods of time without discovery.

Most parents apply for Social Security numbers for their children soon after birth. This single piece of information is all identity thieves need to establish lines of credit.

Because children have no other credit history, its unlikely the victims will find out until they've become an adult, and need to borrow money. Then they may discover they've accumulated a mountain of unpaid debt without their knowledge.

Loss Prevention Recommendations

• Use extreme caution when revealing your child's Social Security number, or providing a photocopy of a birth certificate. Before complying with any request, first question whether it is absolutely necessary.
• Don't hesitate to ask the party requesting the information exactly how it will be stored and if anybody, besides them will have access to the information.
• Don't let anyone in your family carry a Social Security card. Any card with your Social Security number should be left at home, or have the number blacked out.
  
• Be on the lookout for business mail arriving in your child's name. Pre-approved credit offers should be closely examined, as should any account statements. A collection notice shouldn't be regarded as a mistake, but a cause for alarm.
  
• When children are old enough to use the Internet, stress the need for privacy and password integrity. Discourage the use of a mother's maiden name as a password.
  
• Perform checks of your child's credit report when you check your own. Federal law gives consumers access to one free credit report every twelve months from each of the three major credit bureaus - Experian, Equifax, and TransUnion.
• Report suspicious activity to the FTC.
• If you believe you are a victim of identity theft, file a complaint at www.ftc.gov and visit the FTC's Identity Theft Website (www.ftc.gov/idtheft) to learn how to minimize your risk of damage from the identity theft.
• If you suspect you're a victim of identity theft, place a "Fraud Alert" on credit bureau records.