Families and Identity Theft

When we imagine an identity thief, we tend to imagine a complete stranger. According to an MSN article, "the Federal Trade Commission, which broke the news earlier this year that nearly 10 million Americans were victims of identity theft in the last year, found that 9% of victims identified the thief as a family member or other relative." Though still a small percentage, family identity theft is increasing on parental end and the children's end.

Some teens, not only steal credit cards, one 18 year old was arrested for stealing 28 checks from one of his friends' father. He forged his signature, stealing over $10,000. Though it is typical to imagine a teen running off with mommy and daddy's credit card, some parents have chosen a life of crime by stealing their own child's identity. Some parents have chosen to use their child's social security number to open accounts and commit fraud. Other parents raid trust funds and custodial accounts or sell saving bonds given as gifts. Many young people don’t find out until they apply for their first credit card or loan, years later. When they find out why they are rejected, it isn't due to lack of credit history; it's due to a bad credit history of unpaid accounts.

In order to prove that someone's identity is stolen, credit bureaus will require a police report, resulting in the offender's conviction and arrest. While parents find it in their hearts to justify stealing from their children, some sons and daughters can not find it in their heart to turn in their parents. Consequently, the child suffers with bad credit. They may also be forced into paying off loans and credit cards they never used a day in their life.

If someone you know or trust is using your information, consider:

Filing a police report. If your parent or friend is willing set your financial and emotional life ablaze and not turn themselves in, it is likely, they no longer care about your well being.

Keep monitoring your credit. Make sure that your parent is no longer trying to steal your identity and do everything you can to restore your credit.