The long awaited 2012 Child Identity Theft Report by AllClear ID was recently released, and it revealed alarming information regarding children and identity theft. AllClear ID’s conclusive investigation revealed that 10.7% of children were victims of identity theft in 2011 – a .5% increase from the 2011 Child Identity Theft Report. This report is based upon an extensive database scan of actual accounts rather than a survey, and it concluded that 2875 out of 27,000 American children were victims of identity theft.
The analysis of records revealed that 6,273 records or 59% of cases involved the credit bureaus – showing credit problems. The next category revealed 6, 273 records or 22% of cases involved utility accounts, followed by 1,459 records or 14% of cases involving either property assessments, mortgages, foreclosures, or deeds. The next two categories presented 345 records or 3% of cases involved vehicle registrations, and 214 records or 2% of cases involved Driver’s Licenses. Interestingly, one may wonder why the number of records may be higher than the actual number of confirmed child identity theft cases in the report. According to AllClear ID, many of these records involved cases that faced more than one type of identity theft, which drove the number of records up. In addition, many of these child identities were used for what appeared to be multiple different cases of identity theft.
In recent years, the ITRC has seen an increase in cases that involve more than one type of identity theft. These cases become more complex and difficult for the victims to mitigate. Child identity theft is a serious issue because a child’s identity provides the opportunity for different exploits – financial, governmental, criminal, and medical. Although the ITRC tracks child identity theft cases, we do not recognize child identity theft as a standalone type of identity theft because a case of child identity theft will involve one or more of the types of identity theft mentioned above.
In addition, the AllClear ID report states that children under the age of 5 are being heavily targeted. The percentage of victims in this age range is said to have more than doubled compared to that of last year’s study. The logic behind these findings clearly show that criminals are targeting children of this age because they recognize the value of a younger child’s identity – they are likely to get much more time using the identity before discovery. A child’s identity is recognized as a ‘blank slate’ – posing opportunity, potential and long term options. Children’s Social Security numbers are valuable to thieves because the crime can go undetected for years. A child does not begin to use his or her own identity until he or she has reached the age of 18 – the age a young adult applies for his/her first credit card, purchases his first auto, applies for student loans, applies for a job, or gets ready to do all the things adults do. Younger children pose an opportunity for a thief to enjoy the exploits for longer periods of times, all the while creating a devastating impact on the child’s identity and future.