That hacker just got too greedy, he should have taken the money and run. That's how it works with the young and greedy... The security that company used was horrible, I imagine they got sued after the fact too and most likely lost a lot of capital. It's sad that people would steal their kids identity, but I've seen it happen before personally so I know it happens. Usually it's a greedy parent who thinks their needs are more important than the child's future. It really sucks...

I can see why you worry so much about it, after all in the end it falls on you as the IT guy. And when the resources for the top notch security isn't available it would stress me out!