Child Identity Theft: Is Your Child At Risk?

While identity theft is an issue that is often talked about, what tends to be ignored is the increase in child identity theft. When everyone is born, they are assigned a social security number. Since children don’t generally use their social security number, they are more susceptible to identity theft. Also, their credit report or social security number isn’t typically monitored by families, which also increases the likelihood of being victims of identity theft. When thieves get access to this information, they are able to use a child’s name to get credit cards and obtain additional finances.

When the child identity theft victims reach the age where they begin monitoring their credit reports or apply for credit cards, they might be in for a surprise. They may not get approved for credit, and have no idea why. Once they find out, then they have to begin restoring their credit. This process could takes years, but isn’t necessary as long as the enough caution is taken. The following will discuss child identity theft more in depth and how you can prevent it from happening.

Child Identity Theft

A child’s social security number is used for several reasons. Parents will use to so to a greater tax return on their income, and children will use it to get health insurance. In addition, a SSN will be applied when registering for a doctor, attending a new school, or participating in certain activities. A SSN can get in the wrong hands and put a child at risk for identity theft.

As mentioned, not many parents even think about checking on their child’s credit report. And why would they? Their child has no credit history. So it doesn’t get looked at often times until he or she is ready for a credit card.

Monitoring for child identity theft is not easy. In order to get access to a child’s credit report, you will have to mail a letter requesting the information. Many parents may not even know about child identity theft, or even bother taking the time to get it.

The Process of Child Identity Theft

Once thieves have a SSN in their possession, they can use to find out more information about the victim. Using this information, they can open new bank accounts, apply for credit card, loans, and rack up all kinds of debt. Recovering from identity theft is very challenging, especially if it has been happening for years without anyone knowing.

Preventing Child Identity Theft

Therefore, taking steps to prevent child identity theft is important. You can monitor your child’s credit report by requesting one every 1-2 years. Never disclose any critical details about your child unless it’s absolutely required and the place or person requesting it can be trusted. For example, there is little to no risk giving it to your child’s doctor or to the IRS. Plus, there is no way around not giving it to them if they need it. Keep the SSN in a safe place in your home as opposed to carry it around with you.

Preventing child identity theft doesn’t require doing much, but in this case a little goes a long way.

Corporate Identity Theft

Large corporations and small businesses are targeted by corporate identity theft in the same manner an individual is. A Business will sometimes will not find out that they are an identity theft victim until they apply for loans, grants, or credit, and discover they have poor credit. While the perception from some is that individuals are the only victims, corporate identity theft is becoming more prevalent. Credit profiles being stolen from companies by thieves is a very common type of corporate identity theft. Thieves can use these credit profiles to obtain credit for another company that may or may not exist, or simply use the company’s name to make charges.

A credit history is used by every business to gain credit with vendors. A company having a good credit history is very important, just as a person’s credit score is when applying for loans. Without a good credit standing, a company will not be able to get the credit they need to rent space or purchase new equipment.

Corporate Identity Theft Prevention

Proper website security and maintenance is of utmost importance when it comes to identity theft prevention. A company’s website should be monitored by the IT staff on a regular basis, and the home page should list an e-mail address for users to contact if they notice any unusual activity. For instance, on several occasions someone hacked a company website and posted pornographic material throughout. Because of this heinous act, the image and reputation of the company was damaged. Also, keep an eye out for sites that use similar domain names or simply purchase them before others can use them.

Losing track of paper documents has often lead to corporate identity theft. To avoid this being a problem, shred any documents that you want to get rid of and file any documents that are to be maintained.

A secure place should be used to store all company data. A filing cabinet can store personal information, and a flash drive can contain all electronic data instead of placing on the office computer.

Virus protection software should be updated regularly to maintain computer network security in addition to periodically changing passwords, and strengthening spyware, adware, and firewalls. A policy should be in place addressing internet use. Employees browsing the internet and visiting sites with adware or spyware may be putting the company’s integrity in jeopardy.

Although corporate identity theft was not a common occurance in the past, their occurrences are continually increasing and can result in a business’s credit being destroyed. Regardless of how big or small a business is, all should be aware of corporate identity theft and take the necessary precautions in order to prevent it from happening. All it takes is for a thief to get their hands on confidential information in order to change the company’s director and address, as well as appoint new directors. Securing critical company data and taking action is important in order to fight against corporate identity theft.

Examples of Identity Theft

Have you ever wondered why people were victims of identity theft? The truth is there are countless ways in which thieves can can get access to personal information and steal another person’s identity. Some are more common, such as theft of credit cards, bank account information, social security numbers, employment, mail, online ID theft, and scams. Once thieves get the information they need, they can wreak havoc on your life in many ways. The following are some examples of identity theft to keep in mind going forward.

Examples of Identity Theft

Under your name, thieves can file to have your address changed so all of your mail will be sent to their home to gain access to financial and personal information. Some will also just try to steal mail out of other people’s mailbox before they can get to it. This could include credit card payments and possible outgoing mail, which is why it’s best not to leave bill payments in your mailbox.

Other examples of identity theft include stealing phone numbers, social security numbers, driver’s license, and identifiers from checks.

Dumpster diving involves thieves sorting through dumpsters or garbage cans in an attempt to find bank statements, credit card statements, canceled checks, or pre-approved credit card offers. These examples of identity theft can be prevented by shredding all of these documents.

A traditional form of identity theft is stealing purses and wallets, which of course gives thieves access to credit cards and any other identification cards. While this example of identity theft may seem almost outdated compared to the latest techniques, it still happens.

Another involves burglars breaking into a home and stealing important documents such as tax returns, passports, birth certificates, social security cards, and so on.

Children have had their identities stolen without even knowing it. Doing this is attractive to thieves because children have no history of credit, and it will be years before this theft would be discovered by the victim.

Thieves will sometimes falsely claim to be a legitimate business person or government official and tell credit reporting agencies that they need to collect personal information about an individual.

Other examples of identity theft include hacking into computers to steal information, buying stolen records from a co-worker, and gathering personal information from a newspaper article or Who’s Who book.

Phishing involves the process of sending an e-mail that asks you to visit a website and provide personal information. These e-mails often appear legitimate and claim to represent a real company, but of course they aren’t.

These are just several of many examples of identity theft. It can happen at anytime to any person, including you, so don’t take this lightly. Always be on the lookout for scams. Be smart and learn as much as you can about identity theft so you can avoid being the next victim.

Online ID Theft

Online ID theft is not the same as types of identity theft that are more common, and is also more difficult to guard against. Non-online ID theft generally consists of something being physically stolen, such as checks, mail, credit cards, or a drivers license to name a few. On the other hand, online ID theft involves getting access to intangible confidential information, such as credit card numbers, bank account information, social security numbers, passwords, and any other personal information a user has online.

Personal computers can hold a great deal of personal information including passwords, temporary internet files, browser history, cache, and so on. Internet thieves can reconfigure confidential information with the use of these files, such as addresses, social security numbers, credit card numbers, and login ID’s.

The internet is believed to be the most common vehicle used to commit identity theft. Each year, the rates of online ID theft continue to rise.

Years ago, it was found that billions of people use the internet all around the world. One organization claimed that the number of online ID theft cases was over 400,000, resulting in over two billion dollars being lost every year. These facts are startling, which is why protecting your identity is so critical to avoid being the next victim.

In today’s age, the internet is used by many to do banking, online investing, communication, processing financial applications, purchasing products, and so on. In each case, some form of personal information is required. Internet thieves have developed abilities that allow them to proceed with online ID theft. They usually find some way to stay ahead of the curve as well.

With all that said, what can you do to avoid being a victim of online ID theft? Well, you could avoid putting any of your personal information at all online. This means not making any purchases, not creating any accounts, and so on. But, this is probably not very realistic.

Only buy from online stores that are encrypted and can be trusted. If possible, use PayPal to complete any transaction as this will protect your credit card or bank information. Use very strong passwords and the latest browser. Only open e-mails and attachments from people you know, and run an anti-virus scan on a regular basis.

Always use common sense and be mindful that thieves are out there looking for any personal information they can get their hands on.

Types of Identity Theft

A crime that has continued to increase in frequency and has become one of the most prevalent in our time is identity theft. While you might already be aware of this, do you know about the various types of identity theft that you can be affected by? The idea that your life can be turned upside down in such a short period of time because someone got access to your personal information is a scary thought for anyone. However, by being informed about the types of identity theft, you can reduce the possibility of being a victim.

When some think of identity theft, thoughts of credit card numbers being stolen run through their minds. While this is one type, there are many other types of identity theft to be aware of. The following covers items that thieves want to get their hands on.

Social Security Number

This is not difficult for thieves to steal, and once they get their hands on one their options are numerous. They can open new bank accounts, apply for credit using your name, gain access to all kinds of records such as credit reports and medical records, and anything else listed by your Social Security Number. Thieves can also get employment under your name.

Driver’s License

Back in the day, minors would steal a drivers license so they could be allowed into a bar. This made up many of these thefts. Now, a thief can steal a person’s identity with this type of identity theft. For convenience, some people like to print their drivers license number on their checks. This is a big mistake, as it’s not required and if you give your check to a thief, he or she can use it to commit identity theft.

Employment

This type of identity theft involves the thief obtaining your work history and using it to gain employment under your name. One way a thief can access your work history is by finding your resume online. The thief can then not pay income taxes, and of course you will have problems with the IRS because of it.

Finance

A common and more well known type of identity theft involves a stolen bank account number, online brokerage accounts, and of course credit card fraud. Thieves can take all the money out of your bank accounts before you even know what’s happened.

While there are more types of identity theft, the above are some of the key ones to remember. By keeping them in mind, you can better protect your identity. Taking the necessary steps to do so will allow you to avoid the painful process of recovering your identity. One way to do this is to sign up with identity theft protection services.