While many people equate identity theft as a problem that primarily affects adults, children are becoming increasingly susceptible to fraud. A report by Javelin Strategy discovered one in eight children have experienced a compromise of their identity as part of a data breach over the last six years. In 2021 alone, one in 50 children were identified as victims of identity theft, with an estimated loss of $1 billion.
As children become the target of identity theft, how can families and caregivers protect them from a problem that can follow them throughout their lifetime? It starts with education and stopping the problem before it becomes an issue.
What Are the Signs of Child Identity Theft?
Unfortunately, child identity theft isn’t always identified until it’s too late. Some of the warning signs that a child may have their identity stolen can include:
- Getting collections calls for bills allegedly owed by children, when you never opened an account on their behalf.
- Getting denied government benefits because someone else is claiming them using your child’s Social Security Number.
- Receiving a letter from the IRS regarding back taxes owed on income because someone filled out employment documentation using your child’s Social Security Number.
- Getting denied student loans for children because of bad credit, which may happen if someone has opened a credit card or other account using their Social Security Number and never paid it off.
If you suspect your child is a victim of identity theft, the first step is to contact the companies or agencies to explain that your child is a victim and the accounts should be closed. Next, request a letter that absolves them of responsibility in writing. Finally, report the identity theft to local authorities and the Federal Trade Commission at IdentityTheft.gov, and request the accounts be removed from their credit reports at each credit bureau.
Ways to Prevent Child Identity Theft
One of the easiest ways to prevent child identity theft is to freeze their credit report before they have one. Usually, children under 18 will not have a credit report unless someone has applied for credit in their name.
Parents or guardians (authorized adults) can request each credit bureau – Equifax, Experian and TransUnion – do a manual search for a child’s credit file using their Social Security Number. From there, they can request a freeze to ensure the child’s credit file may not be accessed.
Additionally, as with all critical documents, children’s identification cards and papers with personally identifiable information should be kept in a secure location. Social Security Cards, ID cards, and medical bills should be locked away, while other items with a name and address should be shredded.
Educate Children About Identity Theft Dangers
Preventing identity theft starts with education. As children start discovering the Internet, social media and online gaming, it’s important to start having conversations about what information is appropriate to share online, and what should never be given to a stranger.
Personally identifiable information, such as names, addresses, phone numbers, Social Security Numbers, or anything else that can be used to put together an identity should never be shared online with a stranger. It’s also important to talk to them about why securing personal documents matters and the very limited times when it should be accessed.
Preventing identity theft is not just a task for adults – it takes everyone to stop it from happening to our most vulnerable populations. With an action plan and education, we can all take steps to keep children safe into their futures.