Another category of susceptible children includes those who are known to have very good medical insurance coverage. Children who carry insurance coverage information or personal information have an even larger chance for theft. Types of health care plans, carriers, amounts of coverage, limitations on coverage, deductibles within plans, and benefits are part of the private information that parents must teach children not to release. These documents must be kept in secure locations and accessed only when necessary.
Other factors increase the probability that a child will be targeted for identity theft or crime in general. School systems without strong child identity theft policies put their students at risk. Children who are known to carry sums of cash in their wallet or purse at school increase their chance for identity theft greatly if these items are stolen and their personal information is exposed.
Children who fail to use safe Internet practices expose themselves and their families to identity theft and other harmful crimes. Children who answer unknown text messages or e-mails requesting personal information expose themselves to identity theft and potential physical harm. Many other practices are unsafe and contribute to additional risk.
Are your children at risk? Armed with this information, parents whose children fall into a category mentioned, or who find their children practicing some of the noted unsafe habits, can take steps to increase their security and reduce their vulnerability. Prevention begins with education. Education begins with open and honest discussions between parents and their children.
Question #11: What makes foster children so vulnerable to child identity theft?
Foster children are particularly vulnerable to identity theft for reasons beyond their control. These include frequent moves from location to location, as well as frequent placements in temporary homes or facilities. Other factors include the high number of different individuals who have access to the foster child’s personal information, lack of education on personal finance, and lack of education on the need for information security. The final factor is critical: the lack of a structured system that understands and institutes identity theft protections for the foster children.
California offers a prime example of foster care troubles. Newsweek magazine reported in 2009 that half of the state’s 84,000 foster children have been victims of identity theft.14 This same article detailed how a twenty-year-old man interviewed by the magazine told them he had been victimized when he was twelve years old and did not discover it until he turned eighteen years old. His caretakers had been none other than the state of California foster care system. He has been working for two years trying to clean up his tarnished financial record.
How could California allow this to happen? The issue has become so widespread that the California Office of Privacy Protection commissioned a study titled “A Better Start: Clearing Up Credit Records for California Foster Children.”15 This study, on behalf of 2,110 foster children in Los Angeles County, found that 104 children had 247 separate accounts with an average balance of $1,811 owed. These accounts were opened, on average, when the children were fourteen years old.
In a review of the purchases made through the above abuses, it was found that 74 percent of the accounts were in collection. The most common items purchased with the stolen child identity information were medical accounts, telephone and cell phone accounts, auto loans, and credit card accounts. A mortgage loan was also taken out for the purchase of a $217,000 property. California is but one of the fifty states, and each has its foster care system challenges.
In late 2011, the Denver Post published an article about an eighteen-year-old college student who had been a foster child in Colorado.16 This young adult enrolled in college and set out on her own only to be rejected for credit when she applied for an Internet and cable account through Verizon. The problem was discovered to be a $3,000 debt that she had incurred at the age of eight in the Colorado foster care system.
The problem is overburdened caseworkers, and a lack of priority on finances, while the main priority is on basic needs of the child. Once eighteen years old, a child is emancipated from the system, or “aged out,” only to find themselves deep in debt. To add insult to injury, these foster care children have, in some cases, been abused by the caretakers who had control and responsibility for their development and path in life. Imagine turning eighteen years old and having no money to start life with, and little knowledge of how to fix any financial problems.
In September of 2011 President Obama signed into law a requirement that each state run a credit check on foster children who are nearing the age of eighteen years old, and that they assist the children with the cleanup of any discovered identity theft issues. Hopefully, awareness of this issue will only grow and systems will continue to strengthen. If not, then the link between poverty and vulnerability will continue to get worse, and foster children will continue to be disadvantaged from the day they enter the system.
Question #12: Why are Hispanic children in the United States more likely to have their identities stolen than other children?
Child identity thieves are usually motivated by either profit or personal gain. They are of all descents, all races, and both male and female. Child identity thieves participate in child identity theft, medical identity theft, and job- or employment-related child identity theft. Illegal immigrants who work in the United States without proper documentation are considered undocumented workers. Undocumented workers understand that to survive in the United States they must have documents accepted as proof of identity. This documentation must be applied for legally, forged, or stolen.
Undocumented workers, regardless of origin, when seeking to legitimize, look first for someone of their descent. The main reason for seeking someone of their descent is that some identity theft–related transactions must be completed face-to-face. Medical care is a perfect example. Once a thief steals an identity, he or she still must successfully appear in person and present the illegally obtained insurance information and identification to receive the care or prescription.
The United States has historically had a large number of Hispanic undocumented workers who cross the border and seek temporary work in the United States without obtaining proper authorization. Because of this, and the preference to first steal an identity of someone of the same descent, Hispanic children who are U.S. citizens are at a higher risk for child identity theft. These facts are added to the growing knowledge among society that children have financial value, their information is easily obtained, and the duration of theft, undetected, is much longer.
This is not by any means a statement or reference that all child identity thieves are of any single particular descent. On the contrary, child identity thieves are, as previously mentioned, of all races, origins, and genders. The key issue is the need to be legal in order to receive services and employment and to obtain credit.
A trend of concern developing nationally involves identity theft rings obtaining children’s stolen information and offering it for sale. These theft rings specifically target children of Hispanic descent who are U.S. citizens. Theft rings desire to cater to the needs of Hispanic undocumented workers, and thus they target Hispanic children to steal their information and sell it to undocumented workers.
Undocumented workers use stolen information to gain employment and health care and often resell the information to others. Those who purchase children’s information from theft rings often do so only for the Social Security number. A stolen Social Security number is often presented to an employer coupled with the undocumented worker’s real name.
According to the Center for Immigration Studies, “in Arizona 33 percent of all identity theft is job related . . . in Texas it is 27 percent . . . in New Mexico, 23 percent, in Colorado 22 percent, California 20 percent and in Nevada 18 percent.”17 The center maintains that “children are prime targets. In Arizona, it is estimated that over one million children are victims of identity theft. In Utah 1,626 companies were found to be paying wages to
the SSN’s of children on public assistance under the age of 13.”18
Identity theft that victimizes children is a serious crime. It is clear that not only are all children at risk, but certain groups of children are at higher risk because of their descent. Reducing this crime is a great challenge for law enforcement now and will continue to be in the future.
Question #13: What are “synthetic” identity theft and identity manipulation?
The newest type of child identity theft being experienced and reported to law enforcement is called synthetic child identity theft. The word synthetic is actually a derivative of synthesis. Synthesis means to take from a combination of sources. Synthetic child identity theft is actually a blend of several different types of identity theft. There are two different methods of committing synthetic child identity theft and a third trend referred to as child identity manipulation.
The first method involves a thief who successfully steals pieces of your child’s identity from different sources. If they sift through the school’s garbage and find one piece of information on your child, they may try the doctor’s office for the next. Then they might try a household trash theft next. The goal of the home trash theft is to steal your garbage before you get up in the morning, looking for documents such as insurance benefits statements, bank 1099-INT statements in your child’s name, or an old unshredded tax return listing your child’s information. Child identity thieves might try a phone call stating they are your insurance company to get any information they lack. They may try an outbound e-mail to you for missing information not easily obtained from documentation they stole. They might even gain knowledge of school employees and convince you they are calling from your child’s school. What sounds preposterous at first is easily believed when you understand the complexity and tenacity of child identity theft and the criminals who do it.
The second form of synthetic child identity theft involves stealing a portion of the identity information. For example, the thief may steal only your child’s name. The next piece of information may be fictitious, such as a “made-up” Social Security number. Another piece of information such as the date of birth may be taken from a different child altogether; after all, credit agencies have no records for children, so they have no avenue to verify it. The advantage of stealing partial information is that the thief can take what is easily obtained to create the identity of a new individual, without much further effort than simply creating one piece of information. An example would be a thief who engages a child to obtain his or her name and birthday, but may have no idea what their Social Security number is. A thief using synthetic child identity theft could then create a fictitious Social Security number, add it to the accurate information available, and apply for credit in the child victim’s name.
A thief may apply the results of synthetic child identity theft to obtain a fake driver’s license and open a checking account. Then the thief can take the driver’s license and open a utility account or a cable/Internet account, or even create a fraudulent employment application to get a job.
Synthetic child identity theft can affect several children at once. Schools, doctor’s offices, and libraries provide a thief with a one-stop shop for children’s information. Identity thieves desiring to participate in synthetic identity theft instead of identity theft against just one child can get multitudes of information by breaking into a pediatrician’s office. Once there, they can steal the confidential information of many children and piece them together, mixing the data in an attempt to confuse law enforcement.
Identity manipulation occurs when someone steals your child’s information only to change a small piece of information to throw off law enforcement and businesses. Manipulating personal information essentially gives a thief a brand-new identity since most computer systems operate on “exact” matches. An example of child identity manipulation might be to invert the last two digits in the Social Security number and maintain the real date of birth, name, and address. A thief might also submit every detail of your child’s identity but change the date of birth by one day, or the year by one year. To accomplish this, the thief needs all the data. Medical records and school records provide a single source for a data theft, as does purchasing the information from someone who is a relative or friend of your family.
Synthetic identity theft and identity manipulation, both used to defraud children, harm businesses and families. These crimes are the newest trend and will probably mutate further to avoid law enforcement. Our chances for exposing people who commit this crime depend upon the systems of checks and balances we put into place to expose incorrect Social Security numbers and the amount of time law enforcement commits to educating the public on child identity theft crime.
Question #14: Why are children with passports at risk?
Children with passports have two things identity thieves want—pristine Social Security numbers and a document that allows them to travel across borders. Your highest risk for theft is when traveling on international flights or boarding international ships where a thief knows you must possess a passport for all family members, including your children. This risk includes your time in the airport or seaport, beginning with your first presentation to a ticket agent.
Your passport documents can be seen by other travelers close to you when you present them, and heard by those close enough to hear. When an airline or ship ticket agent asks for identification, the best course of action is to simply find and present the documents without stating out loud what you are giving to the agent. If the agent requests a verbal response to confirm your identity, use a piece of paper and write it down. It may seem a bit odd, but let the agent know that you are concerned with identity theft and child identity theft.
If you have a passport at home for your child, you should keep it in a safe container. The best place for such a document is a safety deposit box at a bank. If you keep it at home, you should buy a fireproof container with a key or combination lock. If you buy a container with a combination lock, then ensure you use a number that is not your birth date, telephone number, or street address number. Lastly, this container should be kept in your home in a place to which only you, as the parent, have access.
A stolen or lost passport should be reported as soon as possible. To report a stolen passport, obtain a U.S. Department of State Form DS-64 online or from a passport acceptance facility, such as a U.S. Post Office or court clerk’s office. I would recommend calling ahead to ensure that the facility you have chosen handles passports.
If your passport is stolen or lost, you must reapply for a new one. You must submit the DS-64 form, which is actually titled “Statement Regarding a Lost or Stolen Passport,” with your new passport application. Upon receipt of your application and DS-64 form, the U.S. Department of State will flag your old passport in their computer system and detain anyone using it to try to enter or exit the United States.
When applying for a new passport for your child, all normal stated protocols will apply. There are no shortcuts due to your mishap. The U.S. Department of State requires proof of citizenship. Most juveniles are not old enough to possess a driver’s license; thus, there are accepted alternate proofs of identification. The acceptance facility will require several alternates if you do not have a driver’s license, so be prepared.
A partial list of accepted alternate proof-of-identity documents is:
Birth certificate
Previous passports
Official military IDs
Grammar school diploma
High school diploma
Baptismal certificate
Confirmation certificate
Welfare card
Student ID cards
For more information on reporting stolen or lost passports, visit www.travel.state.gov. To contact the U.S. Department of State by mail, you may write to them at U.S. Department of State, Passport Services, Consular/Stolen Passport Section, Attn: CLASP, 111 19th Street NW, Suite 500, Washington, D.C., 20036, or phone at (202) 955
-0430.
Question #15: Why is early detection so important?
Two significant problems compound child identity theft. The first is the fact that seldom do thieves steal a child’s identity and use it only once. The second problem is that rarely do most people even think of checking their own credit report, let alone their child’s. These two issues, coupled with many other contributing factors, spell potential disaster for your child.
Early detection is not just important, it is critical. The longer a thief is able to use your child’s identifying information, the more opportunities he or she has to run up debts in your child’s name. The FTC states19 that the top 5 percent of victims spend an estimated 1,200 hours trying to report and correct identity theft victimization. Simply put, early detection and quick action reduce fraud’s impact.
An adult’s worst worry is that their bank account will be drained. Fraud’s impact upon a child is viewed in the worst-case scenario, which is that the identity of your child will be stolen at birth, and it will not be discovered for eighteen years. The path the child’s identity will take depends upon the thief who steals it.
What will the journey of your child’s name be? Will it be used for terrorism? Will it buy a thief a home? Will your child’s information provide medical care for someone in the United States illegally? Will it be used by multiple undocumented workers to gain employment as your child? Will your child be cloned? The path depends upon the thief, but as a parent you can detect the theft early, minimize the harm, and stop the thief in their tracks.
You have taken the first step in prevention and early detection by purchasing this book. Education is the most powerful tool against child identity theft. Someone desiring to victimize your child might attack from many avenues. Prevention and early detection are the best mechanisms to fight this crime. The best place to start teaching prevention and early detection is with families, schools, and the community.
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