It sounds unthinkable- thieves gaining access to your child's name, social security number and date of birth and then using them for their own financial gain. As unreal as it sounds, children can- and do- become victims of identity theft.
The 2012 Child Identity Fraud Report by the Identity Theft Assistance Center (ITAC) reveals a startling figure- 1 in 40 households with children under the age of 18 had at least one child whose information had been unlawfully accessed.
But how is a child's information even stolen, especially when a child has no credit card, pays no taxes, or even has a bank account? All thieves really need is a social security number so that they can combine it with a different date of birth to create a new person. Think about all the places where your child's social security number might be found- forms for school, the doctor's office, or even forms and applications for extracurricular activities and sports. With more and more of our personal data being stored electronically, it only takes one unsecured system to put it all at risk.
Child identity theft differs from adult identity theft in one key area- detecting the identity theft of a child usually takes much longer. When someone makes an unauthorized purchase with your credit card, the company usually notifies you fairly quickly and you can close the account before the thieves can do much damage.
But that's not so for children. For example, let's say thieves have used your child's social security number in combination with a different date of birth and have applied for a new credit card. The credit card company may not recognize that the person they've just issued the card to is not real because there is no credit history on file. There are no red flags, so they are unlikely to call you. Those thieves can then use that credit card with your child's name and social security number attached to it for the next decade or so, until your child applies for their first credit card, opens a bank account, or applies for financial aid.
Your child's credit history could be severely damaged by the time they're even 18 years old.
You may be asking if there is any way to find out if your child's information has been compromised. Fortunately, there is- monitor your child's credit history, along with your own. Once a year, get your credit report (it's free) and a report for your child (if your child's information has been stolen, the odds are high that yours has, too). If your child has no credit history then they're most likely safe. But if there is a credit history on their report, you will need to take action.
So what do you do if you suspect your child has been a victim?
Contact all three credit reporting agencies- TransUnion, Experian, and Equifax and put a 90 day credit alert on your child's report. The good news is that this alert means that you must be contacted before any new credit is issued, but the bad news is that it expires after 90 days and you have to renew the request. It does not automatically renew.
Keep detailed records. Identity theft cases usually take a long time to resolve.
File a police report. This adds to the paper trail and will help provide evidence to creditors and banks in the years to come that your child was the victim of theft.
Think twice before you give out your child's social security number. Always ask if it's really necessary.
The 2012 Child Identity Fraud Report by the Identity Theft Assistance Center (ITAC) reveals a startling figure- 1 in 40 households with children under the age of 18 had at least one child whose information had been unlawfully accessed.
But how is a child's information even stolen, especially when a child has no credit card, pays no taxes, or even has a bank account? All thieves really need is a social security number so that they can combine it with a different date of birth to create a new person. Think about all the places where your child's social security number might be found- forms for school, the doctor's office, or even forms and applications for extracurricular activities and sports. With more and more of our personal data being stored electronically, it only takes one unsecured system to put it all at risk.
Child identity theft differs from adult identity theft in one key area- detecting the identity theft of a child usually takes much longer. When someone makes an unauthorized purchase with your credit card, the company usually notifies you fairly quickly and you can close the account before the thieves can do much damage.
But that's not so for children. For example, let's say thieves have used your child's social security number in combination with a different date of birth and have applied for a new credit card. The credit card company may not recognize that the person they've just issued the card to is not real because there is no credit history on file. There are no red flags, so they are unlikely to call you. Those thieves can then use that credit card with your child's name and social security number attached to it for the next decade or so, until your child applies for their first credit card, opens a bank account, or applies for financial aid.
Your child's credit history could be severely damaged by the time they're even 18 years old.
You may be asking if there is any way to find out if your child's information has been compromised. Fortunately, there is- monitor your child's credit history, along with your own. Once a year, get your credit report (it's free) and a report for your child (if your child's information has been stolen, the odds are high that yours has, too). If your child has no credit history then they're most likely safe. But if there is a credit history on their report, you will need to take action.
So what do you do if you suspect your child has been a victim?
Contact all three credit reporting agencies- TransUnion, Experian, and Equifax and put a 90 day credit alert on your child's report. The good news is that this alert means that you must be contacted before any new credit is issued, but the bad news is that it expires after 90 days and you have to renew the request. It does not automatically renew.
Keep detailed records. Identity theft cases usually take a long time to resolve.
File a police report. This adds to the paper trail and will help provide evidence to creditors and banks in the years to come that your child was the victim of theft.
Think twice before you give out your child's social security number. Always ask if it's really necessary.
