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Preventing Identity Theft of Children
I'm sure you have seen countless warnings about preventing identity theft. For years stories about identity theft have been all over newspapers, television, and radio. As we rely more and more on computers and the transfer of information, instances of identity theft rise. Each year, thousands of people find their bank accounts emptied and their credit reports ruined. And anyone who has gone through the ordeal will tell you that it takes a long time to set things right.
With all the media coverage on identity theft, most people are getting the message and guarding their personal information more carefully. Shredding bank and credit card statements and offers and not giving out personal information over the telephone are good ways to prevent your identity from being stolen.
But now identity thieves are turning their attention to our defenseless children. Before you bring your child home from the hospital you fill out all sorts of paperwork, including an application for a social security number. The card arrives in a few weeks and hopefully you put it in a safe place. But once that number is issued your child is at risk of identity theft.
What is Social Security?
The Social Security program was established in the 1930s to help support retirees. Half of the tax is deducted from worker's wages and the other half is paid by the employer. In order to track the accounts for millions of American workers, the Social Security Number was created. Every American has a unique number that the Social Security Administration uses to identify them and calculate their benefits upon retirement.
Although no one intended for it when they were first issued, social security numbers have become virtual 'identification numbers'. There is not much you can do without providing your number. Try getting a mortgage or a car loan without providing your SSN. Or try opening a bank account or applying for a credit card. Many employers now require a SSN and credit check before they hire you.
The hospital and doctor's office that you bring your child for care may require a social security number. If you opened a bank account to start them on the right track to savings you would have been asked for his or her SSN. And your health insurance provider certainly identifies your son or daughter by their SSN.
All of these places are targets of identity thieves, and your child's number could be stolen and used by someone else. And identity thieves especially love stealing numbers from children because the damage may go unnoticed for a long time. After all, a responsible consumer is already checking their credit report regularly and would notice fairly quickly if something was wrong. But how many people are checking their children's credit reports too? Not many.
If you care about your children's financial future, treat their SSN as if it were their own. Guard their personal information and check their credit reports regularly. Of course if you haven't set up a banking or other accounts that would start a credit history, your child shouldn't have a credit report available. If you call and request one and their is a history that is a sign that something is wrong.
Preventing identity theft is a constant fight.
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