Identity theft robs billions of dollars from Americans each year, and college students are no exception.
Recent trends show that students, their colleges and the federal government are being specifically targeted by identity thieves looking to extort as much money as possible from the financial aid system.
"We think students are particularly vulnerable to having their Social Security numbers and driver's licenses stolen," said Jim Bradshaw, a spokesman for the U.S. Department of Education. "Identity theft, including student aid fraud, is one of the fastest growing crimes in this country."
Bradshaw said that cases of identity theft affected 10 million people in 2003 and cost victims more than $5 billion. In 2004, Texas had the second-largest number of victims in America, according to the Federal Trade Commission. Of the 26,000 recorded cases, 5 percent reported loan fraud and 9 percent reported government benefits fraud. Twenty-six percent of Texas victims were between the ages of 18 and 29.
The Privacy Rights Clearinghouse, a nonprofit consumer information organization, said 30 universities reported security breaches of information useful for identity theft during the last six months. Students are especially at risk for fraud, since they are targeted by credit card companies, banks and loan agencies.
Because the government issues billions of dollars each year in college loans and grants, students and universities alike can be prime targets for identity theft.
"I recall an incident where a student living abroad had their physical mailbox broken into and their financial aid records stolen," said Henry Urick, assistant director of UT financial services. "That person's aid information was then utilized without their knowledge."
One of the biggest financial aid fraud cases happened in 2003, when Arizona resident John Christensen applied for federal aid with several stolen names and financial information. Christensen stole more than $300,000 before he was arrested, according to the U.S. Department of Education's Web site.
The problem facing universities is that students do not have to register for class in person, said Jay Foley, co-executive director of the Identity Theft Resource Center.
"It is absolutely a necessity for universities to start requiring students to register in person again," Foley said. "The school has to physically see someone before they can enroll for classes." The University stopped using Social Security numbers as identification to prevent such breaches of information.
"When the Social Security number was used as the University ID number, the normal business processes of the University exposed {Social Security numbers} to those with no rightful need to know," said Dan Updegrove, vice president for Information Technology. "Financial transactions require a 'high assurance' UT EID, which, in turn, requires presentation of an official form of identification, such as a driver's license or passport."
Bradshaw said students can protect themselves by avoiding recording their passwords on papers they carry with them or using their date of birth as a password and to check their monthly credit card and bank statements for unusual activity.
If students believe they are victims of identity theft, the Department of Education's Web site advises that they contact the fraud department of their credit card company and file a police report immediately.
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