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Emerging
Identity Theft Market Targets Teens as Newest Niche |
Posted:
08.29.05
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Over 10 million people were victims of identity theft last year
and young people with no credit records were the number one target.
Printer-friendly versions: PDF
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The Citibank commercial in which a woman is mouthing a male voice
describing the $20,000 he stole to build a "girl-robot"
is more than just a way to promote a product, it's a warning about
a problem that affects many young people.
 Identity
theft is when a person steals someone else's personal information,
such as credit card, bank account or Social Security numbers,
to purchase goods and services.
Young people, 18-29 years of age, are the number one target for
identity thieves, according to Quest, a communications company
that is working to raise awareness of the issue.
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Teens vulnerable |
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Teenagers and young people are more vulnerable to identity theft
than adults because most have not established credit records that
can be monitored.
"If you don't have a credit file, whatever someone first
submits under your name becomes the basis of the credit file.
Thieves can rack up charges on a clean record and when it's time
for these kids to take out a loan for college, they cannot because
of the charges racked up on their record," explained Jay
Foley, co-executive director of the nonprofit organization, the
Identity Theft Resource Center.
 Teens
also are more susceptible to identity theft because they are less
likely to check their credit card records and may not even be
aware of their credit record and its importance. Most teens have
little or no knowledge of financial transactions and credit reports.
"All students are required to take American government in
high school, but there is no mandatory class on finance or managing
credit," Foley said.
Most teens discover they have fallen victim to identity theft
when they apply for a driver's license and are denied because
one has already been issued under their Social Security number,
"It's scary how easy it is for someone to acquire your Social
Security information and pass it off as his/her own," said
Emily Morin, who just graduated from high school and is headed
to college in the fall.
"None of my friends take it seriously. My friends are careless
with their belongings. They'll leave their purses around without
thinking about what might happen."
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Online identity
theft |
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While most identity theft occurs "offline," the emerging
market for thieves who are in the "business" of stealing
identities is the Internet.
 Using
a couple lines of software code, thieves can acquire bulk amounts
of information. The stolen information is then sold in small amounts
to other thieves who use the stolen account information to purchase
goods or obtain money.
The thieves use the stolen information for a short period of
time or until the fraudulent activity is detected.
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Repairing
the damage |
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Victims of identity theft must spend a lot of time and money
repairing their credit records.
According to the Identity Theft Resource Center, victims can
spend on average 600 hours over years repairing damage done by
identity theft. In some cases, it can take victims up to 10 years
to clear their records.
Some identity theft victims grapple with penalties such as increased
insurance or credit card fees, inability to find a job, or higher
interest rates for loans.
"I've seen devastating effects," said Foley. "I'm
currently working with a young man now who had his identity stolen
at age 14. He is now 22 years old and is $300,000 in debt to the
IRS."
Although credit card companies are spending millions of dollars
to try to prevent identity theft, it still happens every day.
And most teens are unprepared.
"[Identity theft] is one of those things I think probably
could never happen to me," said 18-year-old Court Eccles.
"I'm aware of it and cautious about it; but I'm not concerned
it will happen to me."
--Compiled
by Jennifer Schonberger for NewsHour Extra
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Like many Californians, I live in a town where teenagers drive to school in gas-guzzling SUVs and pick-up trucks just because they want to look powerful and extravagant.
