December 22nd, 2011 The Impact of Child Identity Theft
By the AllClearID Team
Jamie here, Chief Investigator at AllClear ID. Child Identity theft can be a devastating experience that affects about 10% of children. This crime often goes undetected for years allowing thieves time to build a complicated web of open accounts and debts that can be difficult to resolve. When child identity theft victims enter the world as young adults, their dreams are often at risk or delayed due to poor credit and other fraudulent activity.
Unfortunately, many children tend to uncover child ID theft when it’s too late like applying for student loans, car loans, apartment leases, and mortgage applications. They are forced to sort out these problems instead of focusing on their future. Here are some stories of a few child ID theft victims’ struggle before turning to AllClear ID for assistance.
Hanna: When nineteen-year-old Hanna was preparing for college she applied for her first bank card. Her application was promptly rejected because the bank’s credit check found roughly $16, 000 in debt attributed to her Social Security number. This discovery and all the required clean up impacted her ability to apply for student loans for her first year of college.
Stephanie: After the application for her first credit card was denied in 2001, Stephanie, a recent college grad, requested a copy of her credit files to investigate. She was shocked to receive a report inches thick, and filled with mortgages, car loans, cell phone bill collections, and credit card debt dating back to when she was only 12 years old. Stephanie attempted to resolve these issues on her own, but continued to struggle with the effects of the theft into her 30s. She was even turned down for a mortgage on her first home because of these problems.
Jaleesa: When Jaleesa turned 21 last year she applied for her first credit card and was turned down. Upon checking her credit report she noticed that an account was opened when she was 17 and in foster care. The account was in default, ruining her credit. This problem put her plans on hold. She knew getting her own apartment after graduation would have to wait until her identity and clean credit was restored.
It is important to resolve these issues before they negatively impact your child’s future. Here are my tips to protect your children.
Views expressed are the personal views of the author and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.