What is Child Identity Theft?
Child identity theft occurs when a minor’s personal information is used to open fraudulent accounts. This often involves using a child’s Social Security number or date of birth to apply for credit cards, loans, government benefits, or to open bank and utility accounts. This type of theft can significantly damage a child’s credit history, potentially hindering their ability to secure loans, jobs, or housing in the future.
How Child Identity Theft Happens
Child identity theft can occur in several ways, including through stolen documents, data breaches, or phishing scams. As Eva Velasquez, president and CEO of the Identity Theft Resource Center, explains, “Credit bureaus don’t knowingly create credit files for minors. However, child identity theft continues to occur because the verification system for Social Security numbers continues to have challenges.” Thieves may combine a child’s Social Security number with different names, addresses, and birth dates, a practice known as synthetic identity theft. Because parents often don’t actively check for a credit record for their child, this crime can go undetected for years.
Freezing Your Child’s Credit: The First Step
Velasquez recommends that parents freeze their children’s credit as a proactive measure. A credit freeze prevents criminals from using a child’s personal data to obtain credit. Parents and guardians can request that the three major credit bureaus – Experian, Equifax, and TransUnion – freeze the credit of a child under 16. If no credit file exists, the bureaus will create a file and freeze it. Sixteen- and 17-year-olds can also request a freeze themselves (Experian extends this option to minors 14 and older).
Steps to Freeze Your Child’s Credit:
- Gather the Required Documents: The credit bureaus have slightly different requirements, but providing consistent documentation to each streamlines the process. You’ll need to make three sets of copies of the following:
- Your government-issued ID, such as a driver’s license.
- Your birth certificate.
- Your child’s birth certificate or another document showing your authority (e.g., foster care certification, power of attorney, or court order).
- Your Social Security card.
- Your child’s Social Security card.
- A utility bill, or bank or insurance statement with your name and address.
- Complete the Freeze Request Forms: Download and fill out the child credit freeze request forms from Equifax and Experian. TransUnion offers an online form to check if your child’s Social Security number is linked to a credit file.
- Send the Request and Documents by Mail: Send the completed forms and copies of the documents to each credit bureau. Address information can be found on the forms (Equifax and Experian) or their website (TransUnion). Use certified mail to ensure delivery confirmation, as you are sending sensitive personal information.
- Await Confirmation: Within three business days of receiving the mailed request, the credit bureau should freeze the credit report. Expect a confirmation letter by mail within five business days, as the Consumer Financial Protection Bureau (CFPB) states. This letter should include instructions on how to lift the freeze using a PIN, password, or other method. Keep this information secure.
Other Ways to Protect Your Child
While a credit freeze is valuable, it doesn’t eliminate all risks of child identity theft. Consider adopting additional safeguards and teaching your child to do the same:
- Protect Social Security Numbers: Avoid providing this number unless explicitly required, and inquire about the safeguards employed for the collected information.
- Monitor Mail: Watch for offers or correspondence addressed to your child that seem suspicious, such as credit pre-approval offers or collection notices.
- Secure Documents: Keep birth certificates and Social Security cards locked away, preferably in a home safe or locked file cabinet, out of reach of visitors and service personnel.
- Be Social Media Savvy: Be cautious about the personal details you or your child share on social media, as fraudsters can use this information.
- Monitor Insurance Claims: Regularly review health insurance claim information for any unusual activity.
- Wipe Electronic Devices: Properly erase hard drives and reset phones to factory settings before disposing of them or donating them to prevent data theft.
- Consider Identity Theft Protection Services: Explore identity theft protection services that monitor credit and the dark web, assisting with fraud recovery if needed.
What to Do If You Discover Child Identity Theft
If you discover an existing credit report, receive suspicious bills, or notice other red flags, take these steps:
- Contact Companies: Contact companies where fraudulent accounts were opened and work to close them. Request written confirmation.
- Freeze Credit: Freeze your child’s credit with all three credit bureaus immediately and dispute any incorrect information that appears on the credit reports.
- Report to FTC: Report the identity theft to the Federal Trade Commission (FTC).
