Millennials and Identity Theft

Mama needs a new car but she doesn't have enough money and her credit is bad. What does she do? She uses her child's social security number to establish herself a new line of credit. Sound far-fetched? Actually, it isn't.

Child identity theft has been on the rise for quite some time and it could affect YOU as a young adult. According to Researcher Richard Power, children make perfect targets because they have no records and the crime usually isn't discovered until they become an adult.

Among the 4,311 children found to have distressed identity records, 300 were under five-years-old. Nearly 1,800 cases involved utility service records, such as bogus electricity service accounts. There were also 500 kids’ names attached to mortgages or foreclosures, and 415 of the kids had driver's licenses.

The sad part of this is it takes young people an average of 132 days to detect fraudulent activity on their credit cards, bank accounts and other personal holdings. When their identities are stolen, millennials are victimized by thieves for an average of about five months.

Among the more serious cases: a 16-year-old girl in Arizona with 33 credit accounts linked to her name, including three mortgages.

How does this happen? According to the report, the primary reasons for child identity theft are illegal immigration (e.g., to obtain false IDs for employment), organized crime (e.g., to engage in financial fraud) and friends and family (e.g., to circumvent bad credit ratings, etc.), the report says. And, more often than not, it is someone the child knows.