Thursday, October 02, 2008

Parents find that minor teenagers often have their identities misappropriated when the kids apply for tuition aid

Major media sources now report that an increasing number of high school students are discovering that their identities have been stolen when they apply for college financial aid.

In some cases, the breaches could have occurred over ten years ago. Because minors typically don’t have their own credit histories, parents don’t check for them. Crooks could have taken out loans in their names, which wind up on fake credit report entries for them which should not even exist.

ABC News offers a video on the issue dated Sept. 16, 2008, link here.

Credit reporting companies will need to develop mechanisms to allow parents to check for the possibility of invalid records for their minor children. Since I worked for Chilton (now Experian) in Dallas in the 1980s (mostly in daily and monthly billing), I can imagine that this would be a information technology big project.

Again, a mandatory notification system based on NCOA, as I have discussed here, could prevent the problem.

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