U.S. Rep. Carlos Curbelo (R-FL) on March 7 introduced a bipartisan proposal that aims to prevent child identity fraud. The bill, H.R. 5192, does so by directing the U.S. Social Security Administration (SAA) to electronically verify for financial institutions whether or not a Social Security Number (SSN), name and date of birth are affiliated with an applicant, thereby exposing potential synthetic ID fraud.
“This legislation is an effective, bipartisan solution that would limit synthetic ID fraud and help protect millions of identities from being stolen,” said Rep. Curbelo, referring to what the U.S. Department of Justice cites as one of the fastest-growing identity theft crimes in which offenders use stolen and made-up information to create fake identities and synthetic accounts so they can take out credit cards or bank loans, for instance.
Rep. Curbelo introduced the Protecting Children from Identity Theft Act, H.R. 5192, with U.S. Reps. Randy Hultgren (R-IL), Kyrsten Sinema (D-AZ) and Kenny Marchant (R-TX) signing on as original cosponsors. U.S. Sens. Bill Cassidy (R-LA) and Claire McCaskill (D-MO) are among those who also introduced a Senate version of the measure.
The unused Social Security numbers of children have become a prime target for use in synthetic ID fraud because victims aren’t aware of the crimes for years, according to the Identity Theft Resource Center. In a recent review of more than 40,000 cases of child identity theft, the Carnegie Mellon CyLab Security and Privacy Institute reported that in 10 percent of the cases, someone else was found to be using the child’s SSN. And according to information provided by Curbelo’s staff, children’s identities are stolen at a rate of about 50 times more frequently than adults.
“The fact that children’s identities and personal information are being exploited at such alarming rates cannot continue to go unaddressed. We need to ensure that fraud detection is modernized to stop these crimes from continuing to negatively impact American families,” said Curbelo, a member of the House Ways and Means Committee.
“Targeting our kids and running up massive debts in their names is shameful and cowardly, and we must fight back to ensure they have the chance to build their own futures,” Rep. Sinema added.
Rep. Hultgren said he has heard “way too many stories” about his constituents falling victim to identity fraud, including one about a Chicago family in which the SSN of a 13-year-old was stolen and used to open a credit card in an attempt to pay for plastic surgery.
“Crimes like these cost victims thousands if not millions of dollars and can remain an inconvenience for years,” said Hultgren, a member of the House Financial Services Committee. “I am especially concerned about children and recent immigrants, who do not have an established credit history, becoming victims of fraud. Our bipartisan legislation will help the government partner with the private sector to prevent identity theft from taking place.”
H.R. 5192 has been referred to the House Ways and Means Committee.