New Form Of Identity Theft Targets Kids Social Security Numbers

Parents should be aware that the latest form of identity theft is targeting your kids' social security number before they even have a bank account.

As millions of Americans are facing credit scores below 600 a market has developed for new and credit clear Social Security numbers. Some shady online companies are using computers to find dormant Social Security numbers. These are usually assigned to children and they are converting them into nine-digit numbers called CPN's or credit privacy numbers that act like Social Security Numbers. A "clean" CPN is a number that has been validated as an active Social Security number and is not on file with the credit bureaus.

Using someone's identity to establish credit is not new but, using a child's Social Security numbers in this manor is and it could create a big problem for the credit system. Finding out how extensive this type of fraud is can be very difficult since many of these companies do not stick around long enough to get caught.

Online companies use computers and publicly available information to locate random Social Security numbers. The numbers are run through public databases to find out if anyone is using them to obtain credit. If not, the data is sold for a few hundred to several thousand dollars.

Since these numbers usually come from children who have no credit history, thieves are able to setup a new line of credit by linking to someone else's credit file. People who buy the numbers can then build their credit file in a process called "piggybacking," which involves linking to someone else's credit file. These people can accumulate large amounts of debt and then default and suffer no damage to their credit. They just buy another number and start over again. This could go on for years before the fraud is uncovered.

Besides checking with the credit bureaus to see if there is a credit file associated with your child's Social Security number, are no specific tools for protecting the number.

It is important to check your credit report on a regular basis so you catch mistakes and fraud before they seriously hurt your personal finances. If your credit score is suffering the Compete System to Repair Your Credit and Boost Your Credit Score can help you get your credit back on track. Download Today!