Understanding and Preventing Child Identity Theft: A Comprehensive Guide

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What Is Child Identity Theft?

Child identity theft occurs when someone uses a minor’s personal information to open new financial accounts, obtain government benefits, rent a home, or sign up for utilities. Often, parents and children remain unaware of this theft until the child applies for credit, such as a student loan or a secured credit card, at age 18.

How Does Child Identity Theft Occur?

Child identity theft can happen through various means, including:

• Phishing scams: Thieves use email, phone calls, or text messages to trick you into providing personal information.
• Hacking: Hackers infiltrate systems to steal user data. If your child has an account with a hacked company, their information may be exposed.
• Theft within the family: Family members can take important documents and open accounts in children’s names. Secure your child’s personal documents in a safe place.

Once a thief has a child’s personal data, they may open credit card accounts, apply for loans, or set up utility accounts, leading to unpaid bills and debt.

What Are the Warning Signs of Child Identity Theft?

Be alert to these signs that your child’s identity may have been stolen:

• Offers of credit: Preapproved credit card offers or other credit-related correspondence addressed to your child.
• Tax bill from the IRS: Correspondence from the IRS about taxes your child owes, even though they have never been employed.
• Contact from debt collectors or lenders: Collection agencies, lenders, or credit card issuers contacting your child about unpaid bills.
• Credit report with no credit: Your child has a credit report before they’ve begun using credit. Contact the three national credit bureaus—Experian, TransUnion, and Equifax—to check if your child has a credit report.

How to Protect Your Child From Identity Theft

While child identity theft is concerning, it can often be prevented. Here are steps to protect your child’s personal information:

• Limit access to your child’s data: Share your child’s Social Security number only when absolutely necessary and with trusted entities. Ask if an alternative data point can be used instead.
• Freeze your child’s credit reports: You can freeze your child’s credit reports to prevent new accounts from being opened in their name. This requires contacting each credit bureau individually.
• Educate your child: Teach your child to recognize suspicious activity, such as phishing, and to protect their personal data. Encourage them to inform you if someone requests their information.

What to Do if Your Child Is the Victim of Identity Theft

If you confirm that your child’s identity has been stolen, take these steps to mitigate the damage:

• Freeze their credit file immediately: Contact the major credit bureaus to freeze your child’s credit file and prevent further fraud. Request the removal of any fraudulent accounts by filing a dispute.
• Contact financial institutions: If an account was opened in your child’s name, contact the bank or credit card company with evidence to prove your child did not open the account. Instruct them to close the account and provide written confirmation.
• Secure all personal data: If other personal information was compromised, ensure your child changes their online account credentials. Check for fraudulent emails or messages sent from compromised accounts.

Report the identity theft to the Federal Trade Commission at IdentityTheft.gov and contact the Identity Theft Resource Center for assistance.

The Bottom Line

Child identity theft is alarming but can often be prevented and resolved. Take precautions to protect your child’s personal information and educate them about online safety. If identity theft occurs, there are steps you can take to limit the damage and strengthen your child’s understanding of credit and security.

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