Legislation aims to reduce child identity theft

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imagesRep. Andria Bennett introduced legislation aimed at protecting children from identity thieves who increasingly target minors and destroy their credit rating.

The practice can take place undetected for some time when adults use a child’s Social Security number.

House Bill 64 would enable parents and guardians to freeze their children’s credit until they are 16 years old. This would prohibit a consumer reporting agency from releasing the child’s consumer record or report and prevent someone from opening a line of credit using their Social Security number.

Bennett, D-Dover, said families need an avenue to protect children from identity fraud, especially because children are so susceptible to synthetic identity theft.

According to a 2011 study by ID Analytics, synthetic identity theft now comprises nearly 90 percent of all identity fraud and accounts for nearly 75 percent of the total dollars lost by U.S. businesses.

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“It’s clear that identity theft is a huge problem for our children. One study even found that children are 51 times more likely to experience identity fraud than adults are,” Rep. Bennett said. “This bill will protect Delaware children from future financial ruin.”

HB 64 has been assigned to the House Economic Development, Banking, Insurance and Commerce Committee.

 

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