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.
When identity theft strikes, it can be hard to know where to start.
Tax time, whether it's in April, June, October or December, often puts important personal identifying information at risk for exposure. Your W-2's, and other IRS reporting forms, include your Social Security Number and, in some cases, financial account information. These numbers can be a gold mine for identity thieves. Your personal information can enable thief to obtain a job, open up new lines of credit, access existing financial accounts or stock portfolios, get welfare, avoid a criminal history and generally create havoc in your life.
A recently published consumer report is advocating the general idea that identity theft is a diminishing crime and that most services offered to protect consumers hold little, if any, value. The trouble is, their research in many places is superficial and/or incomplete, and in some places completely irrelevant. It seems as though for a piece regarding the existence of identity theft, the experts who provided opinions on the topics, were not experts in identity theft at all.
There are several situations in which identity theft can affect the processing of a tax return. Most involve someone misusing someone's Social Security number (SSN), which the IRS uses to make sure the filing is accurate and complete and that they get any refund they are due.
How Much Is Your Identity Worth….on the Black Market?
After any kind of data breach or hacking event, there are a handful of possibilities for what criminals will do with your stolen information. The outcome typically depends on what types of data they were able to steal, but possibilities include holding it for ransom to prove to a company that they were hacked, using it themselves for identity theft and fraud, or selling your records on the Dark Web to others who would use it.
Trends in Child Identity Theft
There are various types of identity theft, for example, financial, governmental, medical, and criminal. Child identity theft usually involves one or more of these types. Therefore, child identity theft is not a standalone category.