In the recent rise of synthetic ID theft, young victims, including newborns are feeling the impact of this epidemic. Unfortunately, some of these schemes are discovered a little too late - usually when kids are entering college, trying to apply for school loans...and are then being denied due to "bad credit" history.
Some parents end up discovering their newborn's blemished credit in the process of filing taxes or applying for government benefits.
Although the best way to protect newborn SSNs is to freeze their credit, that is usually the point of discovery. It is still better to be proactive and clean up the mess before matters get worse down the road for these unwitting victims.
An identity theft victim at birth? The rise in synthetic identity theft — where criminals piece together a fake consumer — is an unintended consequence of Social Security number “randomization,” which was initiated in 2011 to expand the pool of available numbers, she says. Old Social Security numbers had clues to geography and birth dates in the digits. Randomizing the numbers made it harder for scammers to guess them — but also made it harder for creditors to spot the bogus use of a Social Security number on an application. https://www.marketwatch.com/story/your-babys-identity-may-already-have-been-stolen-2019-10-24