In today’s digital age, identity theft isn’t just a threat for adults—it’s also becoming an increasingly significant risk for children. Unfortunately, many parents are unaware that their child’s Social Security number or personal information can be used to open fraudulent accounts, apply for loans, or commit other types of financial fraud. Children often become targets because their credit histories are clean, and the crime may go unnoticed for years.
In this guide, we will explore how identity theft affects children, the warning signs to watch for, and proactive steps you can take to protect your child from identity theft.
What is Child Identity Theft?
Child identity theft occurs when someone illegally uses a child’s personal information—such as their Social Security number (SSN), name, or birth date—to commit fraud. This may involve opening credit cards, applying for loans, renting property, or even obtaining government benefits in the child’s name.
Because children do not have established credit histories, criminals can often use their stolen identities for years before the theft is discovered—usually when the child applies for student loans or first-time credit as a teenager or young adult.
Why Are Children Easy Targets?
- No Credit History: Children typically don’t have established credit profiles, making them perfect targets for identity thieves.
- Long Time Before Discovery: Since children aren’t applying for credit or financial services until they’re older, identity theft can go undetected for years, giving criminals more time to misuse their information.
- Less Awareness: Many parents don’t regularly monitor their children’s credit, as they assume there’s no need to, making it easier for criminals to fly under the radar.
Warning Signs of Child Identity Theft
Being vigilant about early signs of identity theft is essential. Here are some red flags to watch for:
- Unexpected Bills or Notices: Receiving bills, collection notices, or credit card offers addressed to your child is an immediate red flag.
- Calls from Debt Collectors: If debt collectors contact you about unpaid debts in your child’s name, it’s likely a case of identity theft.
- Government Notices: If you receive a notice from the IRS that your child’s Social Security number has been used on another tax return, this is another serious warning sign.
- Problems with Benefits: If your child is denied government benefits because they’re supposedly already being used by someone else, it’s time to investigate further.
Steps to Protect Your Child from Identity Theft
1. Guard Personal Information
Start by limiting access to your child’s personal information:
- Be Careful with Their Social Security Number: Only provide your child’s SSN when absolutely necessary. Ask why it’s needed, how it will be protected, and if there’s an alternative identifier that can be used.
- Limit Online Sharing: Avoid oversharing on social media. Details like your child’s full name, birth date, and location can be pieced together by identity thieves to commit fraud.
- Store Documents Safely: Keep your child’s birth certificate, Social Security card, and other personal documents in a secure location like a locked drawer or safe.
2. Monitor Your Child’s Credit Report
Even though your child should not have a credit report, it’s important to check periodically to ensure no fraudulent activity:
- Request a Credit Report: You can contact the three major credit bureaus (Equifax, Experian, and TransUnion) to see if a credit file exists for your child. If there is one and your child hasn’t applied for any credit, this could indicate identity theft.
- Freeze Their Credit: Consider placing a credit freeze on your child’s credit report. This prevents new accounts from being opened in their name until the freeze is lifted, even if someone has access to their SSN.
3. Educate Your Children About Online Safety
Children today are growing up with internet access, making it critical to teach them how to protect their personal information online:
- Avoid Oversharing: Explain the dangers of sharing too much information on social media platforms. Details like their full name, address, and school can be used by scammers to steal their identity.
- Recognize Scams: Teach your children how to spot phishing scams and the importance of not clicking on suspicious links or providing personal information to unknown people online.
- Use Strong Passwords: Help your children set up strong, unique passwords for online accounts. Encourage them to use a combination of uppercase and lowercase letters, numbers, and special characters.
4. Be Wary of Educational and Medical Institutions
Many schools, camps, and medical providers require children’s personal information. However, be cautious about who has access to your child’s data:
- Ask Questions: Before sharing your child’s SSN or other sensitive information, ask why it’s necessary and how it will be protected.
- Opt-Out When Possible: If you can avoid sharing certain details without consequence, do so. Opt out of providing unnecessary information whenever you can.
5. Secure Your Family’s Devices
With children using smartphones, tablets, and computers, device security becomes crucial:
- Install Security Software: Ensure that all devices used by your children have up-to-date antivirus and anti-malware protection installed.
- Enable Parental Controls: Set up parental controls on devices to monitor your child’s activity and restrict access to certain websites or applications.
- Update Devices Regularly: Regularly updating your devices with the latest software patches will help prevent security vulnerabilities that hackers could exploit.
6. Be Vigilant with Social Media Privacy Settings
Ensure your child’s social media accounts are private, allowing only trusted individuals to view their information. Regularly review their privacy settings to limit exposure to identity thieves who might gather personal details.
7. Monitor for Misuse of Social Security Number
Regularly check to see if your child’s Social Security number is being used for things like tax returns or government benefits:
- IRS Notices: If the IRS notifies you that your child’s SSN has been used on someone else’s tax return, it could be a sign of identity theft.
- Benefits Fraud: If your child is denied government benefits, such as healthcare, unemployment, or food assistance, it may be due to fraudulently opened accounts in their name.
What to Do if Your Child Becomes a Victim of Identity Theft
If you discover that your child’s identity has been stolen, act quickly:
- Contact the Credit Bureaus: Immediately notify all three major credit bureaus (Equifax, Experian, and TransUnion) of the theft and request that a fraud alert or credit freeze be placed on your child’s file.
- File a Police Report: Report the theft to your local police department to create a record of the crime.
- Contact the Federal Trade Commission (FTC): File a report with the FTC at identitytheft.gov, which provides a recovery plan.
- Notify the Affected Institutions: Contact banks, creditors, and government agencies to alert them to the fraud and work to clear your child’s name.
- Review and Dispute Any Accounts: Obtain a copy of your child’s credit report and dispute any fraudulent accounts with the credit bureaus.
Conclusion
Identity theft is a growing problem that can impact children just as much as adults. By taking proactive steps to safeguard your child’s personal information, regularly monitoring their credit, and educating them on online safety, you can reduce the risk of identity theft. If you notice any warning signs, act swiftly to prevent long-term damage to your child’s financial future.
