The damage to youngsters.
Child identity theft typically involves the creation of new accounts, which enables thieves to exploit the pristine state of young victims' credit histories. According to the Federal Trade Commission, new account fraud causes considerably more harm to victims in both out-of-pocket expense and the time it takes to repair the damage.*
Consequences child identity theft victims face include:
- Difficulty getting accepted into college
- Difficulty in opening a savings account
- Difficulty in applying for a driver's license
- Inability to land a job
- Getting collection notices in the child's name
- Lost and damaged credit
- Having arrest warrants in your child's name
As you can see, the adverse effects of child identity theft can be quite severe, and can follow the victim for years.
*Prepared Statement of the Federal Trade Commission before the Maryland Task Force to Study Identity Theft, 2007