Children are not supposed to have a credit report in their name, but new studies have found that the number of those who do is growing considerably, which can pose major problems for affected kids.

People under the age of 18 who have a credit report in their name are almost certainly the victims of identity theft, and this is a large and growing problem nationwide, according to a report from the Columbus Dispatch. Some studies have found that large amounts of kids have been a0ffected by identity theft, in which the crooks open large amounts of credit in their name and steal tens of thousands of dollars or more, and leave their young victims to carry the blame.

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Often, this type of crime is carried out when a thief gains access to a kid’s Social Security number, the report said. Sometimes this can happen as a result of data breaches at hospitals or schools, and other times, their relatives may steal their identity. These youngsters are usually targeted because they will have no credit history and, since parents wouldn’t normally even think to make sure their son or daughter has a credit report in their name, the crime is unlikely to be discovered for a long time.

“These kids’ Social Security numbers are particularly valuable to thieves because they can go years without detection,” Bo Holland, chief executive of AllClearID, told the newspaper. “Because of privacy restrictions, the credit bureaus can’t share with parents what they find in their (child’s) files. So they don’t know who is using the Social number or what accounts were opened.”

The most common way a child who has been victimized by this type of crime discovers the problem is when they turn 18—sometimes even older—and apply for a line of credit, the report said. To their dismay, they may learn that they’re saddled with significant debts, such as those for auto loans, credit cards and sometimes even mortgages, that have gone long periods of time without payment.

[Featured Products: Research and compare Identity theft protection plans at Credit.com]

One thing parents who are concerned about this type of crime can do is contact the credit reporting agencies and ask them to put a freeze on their kids’ credit until they turn 18 and are capable of obtaining some types of loans on their own.

What can you do if someone is not exactly using your information to commit identity theft, but has hijacked some of your personal information? Is there such a thing as “sort-of identity theft”—or is that like being “half pregnant?” A reader wrote us with that dilemma:

What if someone is intentionally using your phone number and/or address on credit applications, documentations, etc. to avoid creditors?

I have sorted things out with the major card companies, collectors, and others that this is not me, but every 3-4 months calls start coming in again as more credit is issued to this person who does not pay. My credit report is fine. One card company told me to contact the FTC who told me they could not do anything as I have not been damaged (other than my time) over what she is doing.

I have had the same phone number for 15 years and do not want to change it. What this person keeps doing is wrong. Any advice?

So maybe this isn’t a clear-cut case of identity theft since the thief apparently hasn’t tried to use your Social Security number or credit information to get loans. But still, using your phone number and address on credit applications is a type of fraud. While your credit information may not be currently mixed up with this person’s, there’s a chance that could happen in the future if she doesn’t stop.

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Victor Searcy, Director of Fraud Operations for Identity Theft 911, warns: “It is very difficult to stop this kind of thing.” But he does have suggestions for what you can do.

For Both Phone and Mail

Start a file where you keep copies of correspondence, notes from phone calls with creditors etc.  Gather as much information as you can about the perpetrator such as name, real address or phone number, etc.

For Mail

File an identity theft report with the Postal Service. You could also file a police report, but Searcy thinks that at this point notifying USPS will be just as effective.

[Related Article: The Global Payments Breach and Your Credit Score]

For Phone Calls

When creditors or collectors call, let them know you have filed an identity fraud report and instruct them to stop calling you. If the calls persist, change your phone number to an unlisted number you only give out to those you know. True, it will be a hassle, but it may be the only way to stop the calls.

“I have seen some people deal with this for months and years before finally giving in, so I would do it before I got too aggravated,” says Searcy.

Just be forewarned: Collectors may use “skip-tracing” services to find delinquent debtors and your new phone number could show up as being associated with your address. That’s why you want to use an unlisted number and only give it out to people you know.

There is still another option you might consider. Find out whether the company that provides your phone service offers a call screening feature. With that service, calls will only go through if the caller identifies himself and you accept the call. Automated calls rarely make it past that stage.

[Featured Products: Research and compare Identity theft protection plans at Credit.com]

Image: Neil McIntosh, via Flickr

This week the experts from Credit.com contributed to a wide range of publications on subjects including taxes, identity theft, credit scores, credit cards and debt. Check out the hits…

Credit.com co-founder, Adam Levin was called on by PBS News Hour with Jeffrey Brown to sit on a panel for a show in their series, After the Fall. Adam and the panel discuss how consumers are treating credit and debt today compared to years past and how it will affect the future for credit lenders and borrowers. @Adam_K_Levin @NewsHour

Watch People, Banks ‘Still Cautious’ on Credit, Debts on PBS. See more from PBS NewsHour.

Adam was also asked to provide tips for summer travelers on keeping their money and valuables safe. Always happy to help consumers, Adam offers practical recommendations for those embarking on travel this year. @CBSPhilly

Susanna Kim from ABC News called on our resident debt expert to weigh in on the very heavy subject of debt after death. In this story the focus is on one family who’s son died at 23 years of age leaving them with his student loan debt. Gerri points out how common this unfortunate situation can be. The family is working to be absolved of their son’s debt, and have started a foundation to fight the entire practice of saddling families with this kind of financial drain.

Susanna also sought Gerri’s take on the reality of student loans. They have become incredibly complex and can lead to life-long financial issues. This is why Gerri recommends taking student loans incredibly seriously, to know what you’re getting into and to always keep an eye on the status of your loan. It’s the complexity of the loan that lenders could use against these often-inexperienced students. @skimm @ABCNews @Gerridetweiler

This week the experts from Credit.com contributed to a wide range of publications on subjects including taxes, identity theft, credit scores, credit cards and debt. Check out the hits…

Credit.com co-founder, Adam Levin was called on by PBS News Hour with Jeffrey Brown to sit on a panel for a show in their series, After the Fall. Adam and the panel discuss how consumers are treating credit and debt today compared to years past and how it will affect the future for credit lenders and borrowers. @Adam_K_Levin @NewsHour

Watch People, Banks ‘Still Cautious’ on Credit, Debts on PBS. See more from PBS NewsHour.

Adam was also asked to provide tips for summer travelers on keeping their money and valuables safe. Always happy to help consumers, Adam offers practical recommendations for those embarking on travel this year. @CBSPhilly

Susanna Kim from ABC News called on our resident debt expert to weigh in on the very heavy subject of debt after death. In this story the focus is on one family who’s son died at 23 years of age leaving them with his student loan debt. Gerri points out how common this unfortunate situation can be. The family is working to be absolved of their son’s debt, and have started a foundation to fight the entire practice of saddling families with this kind of financial drain.

Susanna also sought Gerri’s take on the reality of student loans. They have become incredibly complex and can lead to life-long financial issues. This is why Gerri recommends taking student loans incredibly seriously, to know what you’re getting into and to always keep an eye on the status of your loan. It’s the complexity of the loan that lenders could use against these often-inexperienced students. @skimm @ABCNews @Gerridetweiler

No matter how much you think you know about credit cards, there’s always more to learn. The credit card industry is constantly changing. Between hackers, a changing regulatory environment and a steady stream of new credit card features and offers, it pays to be informed.  Here’s a selection of the latest credit card news and information we think you should know.

Feds Shut Down Websites That Sold Stolen Credit Cards

The Justice Department shut down 36 websites that were trafficking in stolen credit card numbers. It was the result of an international investigation that even included a clever code name: Operation Wreaking hAVoC. AVC refers to automated vending carts, which is what the trafficking sites are called.

One of the sites that was shut down offered card numbers for $1 each. You know, it still amazes me that this “credit card underworld” exists online. @AP

[Free Resource: Check your credit for free before applying for a credit card]

When Your Credit Card Charge is Denied

Technically, this story ran last week, but it’s so relevant to the story I just summarized, I wanted to share it. This isn’t about having your card denied because you’ve missed credit card payments. This is about having your card denied because fraud was suspected. This recently happened to me and it’s very inconvenient. But on the flip side, it’s nice to know your card issuer is paying attention when a weird spending pattern emerges. Banks are especially sensitive right now because there’s been a recent increase in fraud.

This Reuters story suggests that if you’re traveling, call the bank before you leave and let them know. Another suggestion is to have several credit cards so you have one that works when you need it. @Reuters, @christaylor_nyc

[Article: The Best Cash Rewards Credit Card in America]

9 Things to Always Buy With a Credit Card

Yeah, I know some people think credit cards are evil, but there are some situations where you really ought to swipe your credit card. This story on Pittsburgh CBS does a good job covering the top nine. Among the items that should always be charged:

• Big ticket items so you get an extended warranty and purchase protection if your card provides it. Bonus: If you use a rewards card you get points, cash back or miles.
• Provider services, such as landscapers and home contractors. This makes it easy to stop payment if you have a dispute.
• Online purchases, for sure. If there’s a security breach on the website, you don’t want your debit card account number at risk. Plus, if there’s a problem with the merchandise, you have purchase protections.
• Recurring monthly payments, such as health club memberships. You can easily cancel it and block payments, if necessary.

@KDKA

[Credit Cards: Research and compare rewards credit cards at Credit.com]

HSBC Credit Card Sale to Capital One Yields $2.5 Billion Premium

Wow, that’s a pretty big price tag. HSBC’s CEO said that the sale gives the bank a chance to focus on the U.K. and on other markets. It’s too early to tell what will happen to the credit card portfolio Capital One has just acquired. Capital One has long been one of the few major banks that actively pursues consumers who don’t have perfect credit. In that regard, this isn’t a left-field move. I’ll be watching this story as it continues to develop and will report any updates that might affect consumers. @BloombergNews, @MustReadMustoe

Image: Kate Ter Haar, via Flickr