Feds uncover new ID theft that uses the Social Security numbers of kids

August 3rd, 2010 - 8:56 pm ICT by Aishwarya Bhatt  

Kansas City, Aug 3 (THAINDIAN NEWS) The Federal Bureau of Investigation in the United States has uncovered a scheme that uses the identities of kids to fill out credit card details.

Investigators believe that the fraudsters are now interested in the identities of children because the Social Security Numbers of the kids are mostly not used until the child turns 18 years of age.

According to the FBI, the fraudsters use special computer programs to steal the social security numbers of children and then the data is then sold. Once criminals get hold of the number, then they use different names to obtain new credit cards and obtain huge debts that they never plan to pay. The threat is so huge that authorities say it could pose another danger to the American Credit system with the potential to collapse the system.

Investigators say because the numbers and the identities are false, they cannot prosecute offenders thereby giving a legal grey area to the operators.

But FBI has given presentations to creditors around the United States on the new threat. Investigators say they hope this will help lenders to be aware of the risks in the system.

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