What is Child Identity Theft?
Child identity theft occurs when a minor’s personal information is used to open fraudulent accounts. Criminals use details such as Social Security numbers or birth dates to apply for credit cards, loans, government benefits, and utility accounts. This can damage a child’s credit history, potentially creating obstacles for them when applying for loans, jobs, or apartments in the future.
How Does Child Identity Theft Happen?
Identity theft can occur through various means, including stolen documents, data breaches, and phishing scams. The Identity Theft Resource Center notes that credit bureaus typically don’t create credit files for minors intentionally. However, verification challenges involving Social Security numbers make child identity theft possible.
Thieves may create synthetic identities by combining a child’s Social Security number with a different name, address, and birth date. Since parents often don’t have a reason to check for a child’s credit file, this crime can go undetected for years.
How to Protect Your Child from Identity Theft
Freeze Your Child’s Credit
One of the most proactive steps parents and guardians can take is freezing their children’s credit. A credit freeze prevents criminals from opening new lines of credit using the child’s personal information. Parents and guardians of children under 16 can request a freeze with each of the three major credit bureaus: Experian, Equifax, and TransUnion. Sixteen and 17-year-olds can request a freeze themselves (Experian allows minors age 14 or older to freeze their own credit).
Here’s how to freeze your child’s credit:
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Gather the Necessary Documents: The credit bureaus have slightly different requirements, but sending the same set of documents to each simplifies the process.
- Your government-issued ID (e.g., driver’s license).
- Your birth certificate.
- Your child’s birth certificate or another document proving your authority (e.g., foster care certification, power of attorney, court order).
- Your Social Security card.
- Your child’s Social Security card.
- A utility bill or bank/insurance statement with your name and address.
Make three copies of all documents – one for each bureau. Do not send originals.
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Fill Out Request Forms: Complete a child credit freeze request form for each credit bureau. You can download the forms from Equifax and Experian. TransUnion provides an online form to check if your child’s Social Security number is already linked to any credit files.
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Mail the Request and Copies: Send the completed forms and document copies to each credit bureau using certified mail to ensure delivery confirmation.
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**Wait for Confirmation and Secure Storage:**Within three business days of receiving your request, the credit bureau should place the freeze. They must send a confirmation letter within five business days, explaining how to lift the freeze (this may involve a PIN, password, or another method). Keep this information in a secure location.
Other Ways to Prevent Child Identity Theft
While a credit freeze is crucial, it’s not a comprehensive solution. Therefore, parents and guardians should adopt additional habits to safeguard against child identity theft; these include:
- Protect Social Security Numbers: Avoid providing a Social Security number unless you are told why it’s required and how it will be protected.
- Pay Attention to Mail: Monitor mail for potential signs of fraud. Credit preapproval offers in a child’s name, while not always indicative of fraud, warrant investigation. Correspondence from debt collectors is a significant red flag.
- Secure Child’s Documents: Keep birth certificates and Social Security cards secure, such as in a locked safe or file cabinet.
- Be Careful on Social Media: Limit the amount of personal information shared by both you and your child on social media platforms.
- Monitor Health Insurance Claims: Review health insurance claims for any suspicious activity that might suggest your child’s personal data is being used without your knowledge.
- Wipe Electronics Before Disposal: Before recycling or reselling electronics, erase hard drives and reset phones to factory settings.
- Consider Identity Theft Protection Services: Some services monitor a child’s credit and the dark web for misuse of their information and offer assistance with fraud recovery.
What to Do If You Discover Child Identity Theft
If you discover an existing credit report for your child, receive suspicious mail, or find other warning signs, take immediate action.
- Contact Companies: Close any fraudulent accounts and request written confirmation that your child never opened them.
- Freeze Credit: Freeze your child’s credit with all three credit bureaus and dispute any incorrect information on their credit reports.
- Report Identity Theft: File a report with the Federal Trade Commission.
