Identity Thieves Targeting Kids' Credit

Most people are already well aware of identity theft and the dangers it poses, leaving many victims in its wake as it tears through your credit history like a hurricane or a jilted ex-lover, leaving you to pick up the pieces, wondering how it all went wrong. Now, while you’re up to your eyeballs in bills and looking for debt relief, it seems those ID thieves have moved onto a new tactic – cradle-robbing. No, they’re not actually out to steal your firstborn; just their brand new and as-yet-untouched social security number. Many businesses online have started using computers to find unused social security numbers – typically those of children who haven’t even set up a bank account yet – then turning around and selling these untainted numbers under a new name to help people establish a whole new (and wholly fake) credit history, rack up a ridiculously high credit card debt, then just walk away scot-free. Kinda like what Tim Robbins did in The Shawshank Redemption, but used for evil. Obviously, such a scheme poses a very real threat to the credit system, but because the SS numbers used exist in a “legal grey area” according to authorities, the feds are still scratching their heads over how exactly to move forward on prosecuting those responsible for taking the baby’s candy. So how exactly are they getting away with this? If you’re like me, you probably spent the entire time reading that and wondering to yourself how the hell they were getting away with this in the first place, here’s your answer: they never refer to the social security numbers at all, but rather the CP – credit protection, credit profile, and credit privacy – numbers. Using these numbers, the thieves are easily able to create fake credit scores and use them to obtain all kinds of deals and loans. Think of it as buying a potted plant from a medical clinic vs. buying it from some guy on the corner. The FBI only recently discovered the practice while investigating a mortgage fraud case in Kansas and is now scrambling to educate lenders on how easy it is for these operations to create an entire false credit profile with the information. Because of the fly-by-night nature of these operations, though, it is difficult to determine just how widespread this practice is. If the recent dip in Americans’ overall credit scores is any indication though – an average score of 599 is common now, and that’s pretty low – it could be widespread than you think. With credit scores that low, more and more people are having trouble obtaining home or auto loans and even credit cards, leaving them in serious need of credit repair services before they can move on. Who’s got your bits? The scheme works by using computers to track down publicly available information and find completely random social security numbers. Those numbers are then checked to see if they’ve ever been used to open any credit accounts. If they haven’t, they’re then sold to the highest bidder, who can use them for whatever they want with no consequences coming back to them (unless they’re caught, of course). The “best part” is, if the thief screws up on one number, they can simply move onto the next one in line. Wanna make sure yours of your kids’ isn’t the next number they get a hold of? Check your credit report periodically and stay in contact with your creditors. As soon as something appears that looks wrong to you, have it disputed with the credit bureaus and give junior a fighting chance!