Children are highly vulnerable to identity theft, with cases involving youth on the rise.  According to the Federal Trade Commission, identity theft of minors increased by 40% over recent years, with about 1 out of 50 kids in the US each year having their identities stolen for rental housing, government benefits, tax refunds, and more.  Kids are valuable targets to identity thieves because it can be several years until it’s discovered, when the child turns 18 and applies for a student loan or credit card for the first time.  The aftermath can be significant, such as not getting approved for loans and having a ruined credit score.  The good news is, there are steps parents can take to prevent this in the first place, as well as red flags to look out for if it does happen to your child so you can address it right away (Gustafson Barlette, 2024).

Prevent it:

• Avoid putting your child’s social security number on forms as much as possible. Question the business if it’s necessary, such as a doctor’s office.
• Make sure there isn’t a credit history on your child from the 3 reporting bureaus (TransUnion, Experian, and Equifax). Check this on AnnualCreditReport.com.
• Teach your child to never give out information to those they meet online, such as full name and date of birth.
• Freeze their credit by sending a letter to the 3 bureaus (FTC.gov):
  • Experian
  • Equifax
  • TransUnion

Signs to watch out for:

• Bills and delinquency notices in the mail
• Phone calls from debt collectors
• An existing credit report in your child’s name from AnnualCreditReport.com

If you discover that your child’s personal information has been stolen, take these steps:

• Call that companies where the fraud occurred and ask for a written statement confirming that your child is not liable for the account.
• Ask the credit bureaus to remove the fraudulent accounts from your child’s credit report.
• Freeze their credit report
• Report the identity theft to the FTC at IdentityTheft.gov

With data breaches happening more frequently, both adults and minors are at risk of being victims of identity theft.  Stay proactive and follow up on anything suspicious.

References:

Gustafson Barlette, K.  Child identity theft is on the rise: Here’s what you can do.  (2024).  Retrieved from: https://www.timesunion.com/kristi/article/child-identity-theft-rise-19919257.php

How to Protect Your Child From Identity Theft (2024).  Retrieved from: https://consumer.ftc.gov/articles/how-protect-your-child-identity-theft

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