Fort Worth Star-Telegram, Texas, Savvy Consumer column
By Teresa McUsic, Fort Worth Star-Telegram, Texas
Knight Ridder/Tribune Business News
Sep. 10--An unfortunate new buzzword has emerged in the world of identity theft: family fraud. It occurs when someone -- usually with credit problems -- steals a family member's identity to obtain credit cards, take out a loan or start a utility under another name.
A local reader recently called to outline her family fraud problem. Her son has custody of his child, but the child's mother recently obtained telephone service using the child's name.
The mother has no legal custody of the child, doesn't live with the child and has significant credit problems, according to the woman, who asked that her name not be published to protect the child.
Now the reader fears that the parent may have used the child's identity for other purposes.
Linda Foley, executive director of the Identity Theft Resource Center, a national help center based in San Diego, said the problem of family fraud is growing.
"I see one or two cases a day," from among the 40 to 50 calls and e-mails the center receives each day, Foley said. She said her "poster child" for the problem is a 9-year-old girl in Rockwall whose identity was stolen for credit cards taken out by her mother and father.
"The girl is now back with her mother, and I have no way to protect her," Foley said, adding she considers this "financial" fraud as a serious form of child abuse.
"This could seriously impact the child when she becomes an adult. She could lose her rights to tenancy, credit, school loans -- even a job -- if she already has bad credit. She could end up living in a box on the street."
In a survey released last year of identity crime victims by the Federal Trade Commission, 26 percent of victims said they knew who had misused their identity. Nine percent said it was a family member or relative.
The purposes of stealing a child's or other relative's identity are numerous, but the main reason is to obtain credit cards, according to the study.
When identity theft was involved in opening a new account, 18 percent of those surveyed by the FTC said it was done by a family member. In the case of using someone else's existing credit cards, nearly one-quarter of all victims cited relatives.
Other common uses for a relative's stolen identity is to obtain a new driver's license or to sell the information on the black market, Foley said.
In the case of a child's stolen identity, red flags that should warn parents or guardians include:
*When numerous preapproved credit card offers come in the mail in the child's name.
*When a teen is denied a driver's license because another person has the same Social Security number as identification.
*When a savings account or college fund is opened for the child and the account is either denied because of a bad check record or the guardian discovers other accounts already opened in that name.
Several actions should be taken to check up or clear up this problem, Foley said.
First, all three credit bureaus should be contacted.
Experian spokeswoman Heather Greer said the credit bureau does not have credit reports on most minors. But if identity theft has occurred, a file might be there. The file can be obtained by a guardian through a written request with proper documentation, including proof of guardianship and a copy of the guardian's driver's license, a utility bill to confirm address, the child's birth certificate and a Social Security card.
John Ford, a consultant with Equifax, said the requested materials can be faxed into the fraud department at Equifax. A copy of the credit report is free to those seeking it for identity theft purposes, he said.
In addition, a fraud alert can be put on the report at no cost that will automatically go to all three bureaus. The fraud alert tells potential creditors to check with the person before offering them credit. Ford said many customers using the fraud alert list their cell phones as contact numbers.
Foley also recommends contacting the fraud departments at any credit card company, credit bureau or collection agency involved. A police report also should be made to work more swiftly with the other parties involved, Ford said.
The victim can also get his Social Security number changed.
"It's easier to change a Social Security number if the victim is still a minor," Foley said. Adults often have a harder time changing numbers because of educational institutions, jobs, certifications and other records tied to a Social Security number.
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(c) 2004, Fort Worth Star-Telegram, Texas. Distributed by Knight Ridder/Tribune Business News.
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