Already rampant and increasing in frequency of occurrence, child identity theft represents an attractive form of fraud, because crooks can take out credit in their victim’s name and have it go without notice for years. At some point, the truth will out, but by then the victim faces a ton of grief. Victims of child identity theft arrive at age 18 and find a most unsavory birthday surprise – wrecked credit.
Child identity theft may be limited to a single incident, or it could go on for years. However fraudsters access a child’s personal information, they do so either through familiar identity theft methods, or via a security lapse at an office or agency in possession of records containing such information.
Parents need not think they stand helpless against fraudsters’ depredations; they have at their disposal several measures to protect their children and to restore their credit in the event that fraud befalls them.
What Parents Can Do
Safeguarding children against identity theft requires vigilance, as well as the constant application of the following measures:
- Making a policy of surrendering children’s personal information only with reluctance and only to recognized and authorized parties or agencies – Children’s passports and Social Security Number parents should keep under lock and key. And they should leave blank any field on dental or medical applications asking for a Social Security Number.
- Keeping close tabs on children’s Internet use – Attractive to children for well-known reasons, Facebook and other social media sites require registration personal information. This creates an opportunity for crooks, who set up fake sites mimicking legitimate ones in order to trick children into inputting their information. Parents should, therefore, apprise their children of this real and present cyber-danger.
- Remaining alert to any potential signs that their child has fallen victim to identity theft – These signs include credit card offers and the existence of earnings reports.
- Making a practice of making yearly requests for their child’s credit report (if indeed one exists) – These they can obtain from one of the three credit reporting agencies: Equifax, Experian, and TransUnion.
- Examining their children’s Facebook, MySpace, Google + or other social media page for any publicized personal information.
- Shredding all documents containing their children’s personal information, as well as those containing their own.
- Stipulating that all family banking transactions require presentation of a password and photo identification.
- Securing the services of a proven identity theft protection or credit monitoring provider – Several companies, such as LifeLock and TrustedID, offer protection services specifically designed for children and families.
How to Recover
Should the unthinkable happen, parents can help their children recover from identity theft by taking the following actions:
- Requesting their children’s credit score – Parents may request without charge one credit report per year.
- Contacting Equifax, Experian or TransUnion upon discovery of an incident of child identity theft – This correspondence should list all fraudulent items and should be accompanied by a 30-day fraud alert in the victim’s name. An alert prevents the thief from opening additional lines of credit.
- Filing an identity theft report with the local police department – This report may need to be accompanied by additional proof per policy requirements. Parents must, therefore, stand ready to provide this information, which may take the form of credit card offers or credit reports.
- Requesting that a long-term fraud alert in the victimized child’s be set in place.
- Notifying the Federal Trade Commission (FTC) of the child identity theft incident.
- Contacting the creditors listed on the victimized child’s credit score.
- Documenting all correspondence involving the incident of child identity theft.
- Making copies of all letters and documents involved in the child identity theft incident.
Parting Thoughts
Child identity theft presents an enormous fraud risk to one of the country’s most vulnerable populations: children. The average victim of child identity theft incurs on average some $12,000. Such staggering losses mean that parents must treat their children’s personal information with as much caution and discretion as they do their own.
Personal information ought to be jealously guarded. Obtaining annual credit reports and learning of the existence of any earning records in their child’s name represent two sound practices for protecting their wee ones from fraudsters’ diabolical efforts. Also, informing police and other authorities of suspicions concerning possible child identity theft can help to curb this horrendous crime.