Identification Theft: a Financial Nightmare
By Jenn Christ, a media communications major

Imagine this. Your son or daughter applies for a student loan. Denied! Why is their credit so low? The next week, your son or daughter then applies for a job. The company says that they cannot hire someone irresponsible, who has a bad credit line. What happened? It has all of the makings of a horror story. Your son or daughter’s identity has been stolen.

Don’t think that this is a common scenario? Think Again. Approximately 10 million victims lost over $5 billion in 2003 from identification thievery. Targeting the most common vulnerable information—social security numbers and drivers license information—identity thieves can obtain credit cards and loans with the stolen name. They can open utility accounts, rent an apartment, purchase a cellular phone, car or a home, and then not pay the bills, in the process doing great harm to the victim’s credit rating. In the college setting, identification can easily be stolen through stolen through phony credit card offers, leaving important ID cards and documents in the wrong place, and lack of financial management skills.

It is good to note that victims are not liable for these acts of fraud, but the time to regain financial health and to restore good credit history adds anxiety and frustration. Like most things, the best way to prevent this from happening to you is by educating yourself and your loved ones. It is important to share with your child the importance of protecting personal information in order to prevent abuse of their reputation and record. While clearing the damage, unauthorized debt can destroy credit ratings and job opportunities.

Gain more information about identity theft through www.ed.gov/misused, a website provided by the U.S. Department of Education. Several different resources are provided, including tips on how to protect against and detect identity theft. A hotline service—1-800-MISUSED—is also offered for reporting suspicions of student loan fraud. The U.S. Department of Education also features identity theft information and identification protection advice in their student aid publications, and soon will feature such information in their student loan billing statements.
For more information on identity theft, please see the Remarks by U.S. Department of Education Secretary Paige at the Identity Theft Initiative Press Conference which can be found at the following link: http://www.ed.gov/news/speeches/2003/12/12112003a.html