Identity theft in the United States has sky-rocketed in recent years. According to the Federal Trade Commission (FTC) $8.8 billion was lost to fraud in 2022, that was an increase of over 30% from the previous year.
Many of us take steps to protect ourselves from identity theft, but our children should be protected as well.
According to the Javelin Strategy’s 2021 Child Identity Fraud study. 1 in 50 children were the victims of identity theft in 2022.
Recovering from identity theft can be a long, expensive process so it is wise to take steps to protect your children from this type of malicious activity.
Why Does It Happen?
Scammers prey on children because they are easy targets, unless a parent or guardian has added their child as an authorized user on their credit card account or the child’s identity has been stolen it is unlikely a credit file exists, so identity theft involving children can go undetected for years. They may only become aware of the problem later when applying for a driver’s license, loan, or credit card.
When a child’s identity is stolen, criminals can use it to open new lines of credit, take out loans, sign up for utility services, apply for jobs, and apply for government benefits.
Children are also easy targets for synthetic identity theft or fraud, criminals combine real and fake information to create a new identity. The new identity can be used to open fake accounts and make fraudulent purchases.
How Does It Happen?
Family members, friends, and legal guardians are frequently the offenders. They have easy access to a child’s sensitive information, and since they know the child, they can hide the crime for years.
Unfortunately, parents regularly post personal information about their children on social media sites, and older children and teens may overshare their own information. Scammers scan social media sites and harvest this data; they then combine it with other data they have gathered to build a detailed profile on the child.
Phishing, vishing and smishing scams trick adults and children into turning over personal information.
Data breaches are extremely common, details such as name, birthday, Social Security number, address, medical information, and more are stolen and used for malicious purposes. Often the data is sold on the dark web.
Hackers can gain access to your child’s devices through unsecured Wi-Fi networks, password hacking, or malware.
Physical theft of documents can include mail theft, theft from trash receptacles and dishonest business employees who have access to your child’s personal, medical or financial records.
What Can a Thief Do with the Stolen Information?
Open credit card and bank accounts.
Apply for loans.
Sign up for utilities and rentals.
Apply for government benefits.
File fraudulent tax returns.
Illegally gain employment.
Create a fake ID and driver’s license.
Warning Signs Your Childs Identity Has Been Stolen
Your child receives credit card offers in the mail.
Your child receives bills, statements, and invoices in their name.
You or your child receive phone calls or letters from collection agencies.
You receive a letter, past-due notice or other communication addressed to your child from the IRS.
You suddenly start to receive junk mail addressed to your child.
Your child is denied health care coverage or government benefits because someone else, using their Social Security number, is already signed up for those benefits.
You receive a letter that a loan application in your child’s name was denied.
Steps to Take If You Suspect Identity Theft
Call the fraud department at any company where your child’s identity was used. Ask that they close the accounts and send you a confirmation letter verifying the account closure.
Contact the three major credit bureaus — Experian, Equifax, and TransUnion. Their fraud department can help you remove any fraudulent content contained in your child’s credit reports.
Freeze your child’s credit report with all three credit bureaus.
File a report with the Federal Trade Commission (FTC) https://www.identitytheft.gov/#/
File a police report for identity theft with local law enforcement.
Contact the Social Security department to report the fraud.
Protect Your Child from Identity Theft
Place a security freeze on their credit reports with the three major credit bureaus, Experian, Equifax, and TransUnion. If your child does not already have a credit file each bureau will create one and then place the freeze.
Monitor your child’s credit reports regularly so you are quick to spot anything suspicious.
Never share your child’s Social Security number with anyone.
Keep your child’s sensitive documents in a secure, locked location such as a fireproof safe.
Don’t share or allow your children to share personal or private information on social media.
Password protect and secure all of your child’s devices. If you get rid of a device factory reset it before you do.
Be suspicious of mail delivered to your children.
Monitor your child’s online activity and put restrictions and rules in place.
Teach your children to keep their information private and inform you if anyone asks for it.
The Tech Minimalist 