Child identity theft is a type of identity theft in which a thief steals the personal information of a child and uses it for fraudulent purposes. This can include opening credit cards, taking out loans, and other financial activities in the child’s name.
Children are particularly vulnerable to identity theft because they typically have no credit history and their personal information is often not monitored as closely as that of adults. In addition, thieves may use a child’s identity for years before the child is old enough to discover the theft. This can result in a damaged credit history and financial problems for the child in the future.
Child identity theft is a serious crime and can have long-lasting consequences. Parents should be vigilant in protecting their children’s personal information and monitor their credit reports regularly to ensure that their child’s identity has not been stolen.
How Does Child Identity Theft Occur?
Child identity theft can happen in several ways, including:
- Data breaches: If a company or organization that has your child’s personal information, such as their social security number, is hacked or experiences a data breach, the thief may obtain this information.
- Family members or acquaintances: In some cases, a family member, friend, or acquaintance may steal a child’s personal information and use it for fraudulent activities.
- Phishing scams: Thieves may use phishing scams, which are fraudulent emails or websites that look legitimate, to trick parents into giving out their child’s personal information.
- Social media: If parents share their child’s personal information on social media, such as their date of birth or full name, this information can be used by thieves.
- School records: Schools often collect personal information from children, and if this information is not secured properly, it can be accessed by thieves.
- Medical records: Medical records often contain a child’s personal information, including their social security number, and if these records are not secured properly, they can be accessed by thieves.
Phishing scams are a common technique, where attackers masquerade as trustworthy entities via email, social media, or text messages to trick parents or children into divulging sensitive information. These scams often use compelling language and appear to be from legitimate sources, such as schools or healthcare providers, making it challenging to discern their fraudulent nature.
Data breaches at institutions holding children’s personal information, like schools, healthcare providers, or childcare centers, provide another avenue for theft. Cyber attackers exploit security vulnerabilities to access databases, stealing vast amounts of personal data, including that of children. These breaches can go unnoticed for a long time, giving criminals ample opportunity to misuse the stolen identities.
1.7 Million Children (1 in Every 43) Have Fallen Victim to Data Breaches.
Another method involves social engineering tactics, where attackers use information gathered from public sources or social networks to guess or reset passwords and bypass security questions. Since children’s information is often less guarded and their online activities less monitored, it’s easier for criminals to gather the necessary data to impersonate them.
Additionally, family fraud, where relatives or acquaintances with access to a child’s personal information misuse it, constitutes a significant portion of child identity theft cases. This type of fraud is particularly insidious because it exploits trust and access granted by close relationships.
Malware, including spyware and keyloggers, also plays a role in child identity theft. These malicious software programs can be inadvertently downloaded onto devices used by children, capturing keystrokes and sending personal information back to the attacker without the user’s knowledge.
The dark web acts as a marketplace for buying and selling stolen identities, including those of children. Cybercriminals trade personal information, allowing others to commit various forms of identity theft, from opening fraudulent accounts to filing for government benefits illegally.
Detecting Child Identity Theft
One common sign is receiving bills, credit card offers, or bank statements in a child’s name, which indicates that financial accounts may have been opened fraudulently using the child’s identity. Similarly, being denied government benefits because the system shows they are being paid to another account using your child’s Social Security number is a red flag.
Monitoring a child’s credit report is a direct method to detect identity theft. Since children should not have a credit history, any credit activity in their name is a strong indication of fraudulent use of their identity. Parents can request a manual search of the child’s Social Security number with the major credit reporting agencies to uncover any unauthorized activity.
915,000 U.S. Children Were Victims of Identity Fraud in the Past Year, Costing an Average of $1,128 for a Single Household.
Notices from the IRS or state tax authority indicating that a child’s Social Security number was used on another tax return are serious indicators of identity theft. Such notices may claim the child owes income taxes or suggest that the child’s Social Security number was used to gain employment, which is a clear misuse of the child’s information.
Unexplained medical bills or health insurance explanation of benefits (EOBs) for services not received suggest that a child’s identity may have been used to fraudulently obtain medical care or prescriptions. This type of identity theft can also lead to a mix-up in medical records, which can be dangerous.
Receiving calls or letters from collection agencies about debts that are in a child’s name for services or credit accounts that the child should not legally be able to contract for is a telltale sign of identity theft. These inquiries indicate that someone else has been using the child’s information to obtain goods or services.
Experiencing difficulty in opening a bank account or obtaining a driver’s license for a child because of a damaged credit history can also indicate previous fraudulent activity. This often comes as a surprise and is usually discovered during a credit check process, revealing debts or credit issues unknown to the child or their guardians.
How To Protect the Identities of Children
Here are some steps parents and guardians can take to protect their child’s identity:
- Keep personal information private: Be cautious about sharing your child’s personal information, including their name, date of birth, and social security number. Only share this information when it is absolutely necessary.
- Monitor credit reports: Regularly check your child’s credit report to ensure that no unauthorized accounts or transactions have been made in their name.
- Freeze your child’s credit: Consider placing a credit freeze on your child’s credit report to prevent new accounts from being opened in their name without your permission.
- Educate your child: Teach your child about the importance of protecting their personal information and what to do if they suspect their identity has been stolen.
- Use parental control software: Implementing parental control software can ensure that your child is not wandering into unsafe places on the web and that they aren’t providing sensitive information to untrustworthy websites.
- Use identity theft protection services: Enroll in an identity theft protection service that caters specifically to children and families.
- Use strong passwords: Use strong and unique passwords to protect your child’s online accounts and devices in combination with password managers.
- Be cautious of phishing scams: Be wary of emails or websites that ask for your child’s personal information and avoid clicking on links or downloading attachments from unknown sources.
- Secure personal information: Keep important documents, such as birth certificates and social security cards, in a secure location and shred any documents containing personal information before disposing of them.
Implementing strong, unique passwords for online accounts and enabling multi-factor authentication wherever possible significantly reduces the risk of unauthorized access. These passwords should combine letters, numbers, and symbols, making them difficult to guess or crack through brute force attacks.
Educating children about the dangers of sharing personal information online is crucial. This includes teaching them to recognize phishing attempts and the importance of privacy settings on social media platforms. Parents and guardians should emphasize the concept of digital footprint and how seemingly innocuous information can be pieced together by cybercriminals to steal identities.
Children Under the Age of 7 Are Most Likely to be Victims of Child Identity Theft.
Regular monitoring of a child’s credit report is an effective measure, despite them not having a credit history. This can be achieved through services that allow for the creation and freezing of a credit report for minors. Freezing a credit report prevents lenders from accessing it, effectively blocking the opening of unauthorized accounts in the child’s name.
Utilizing antivirus and anti-malware software on devices that children use provides another layer of defense. These tools can detect and remove malicious software that may steal personal information. Ensuring that these software solutions are always up to date maximizes protection against the latest cyber threats.
Securing home networks with encryption and changing the default passwords on Wi-Fi networks and routers also plays a key role in protecting personal information from being intercepted by unauthorized users. Employing a virtual private network (VPN) when using public Wi-Fi can encrypt internet traffic, further safeguarding data transmitted online.
Engaging in conversations with organizations that hold personal information about children, such as schools or healthcare providers, to understand their data protection policies and practices is another proactive step. This includes inquiring about how they store, use, and dispose of sensitive information and what measures they take to secure it against unauthorized access.
Being cautious about providing children’s Social Security numbers and questioning the necessity and security measures when requested can prevent unnecessary exposure of sensitive information.
What to do if You Suspect Your Child’s Identity Has Been Stolen
If you suspect child identity theft, immediately contacting the major credit reporting agencies (Equifax, Experian, and TransUnion) to place a fraud alert on your child’s credit report is a critical first step. This alert notifies creditors of potential fraud, encouraging them to take extra steps to verify identity before extending credit. Following the fraud alert, requesting a credit freeze is more effective, as it prohibits creditors from accessing the credit report, thus preventing the opening of new accounts.
Next, checking for a credit report in your child’s name with each of the credit bureaus is essential. If a report exists, it’s a clear indication of identity theft since minors typically should not have a credit history. When a credit report is found, reviewing it for unauthorized accounts, inquiries, or discrepancies is crucial to understanding the extent of the theft.
Reporting the identity theft to the Federal Trade Commission (FTC) either online at IdentityTheft.gov or by phone provides a structured recovery plan while also officially recording the incident. The FTC website offers specific guidance on dealing with various types of identity theft, including that of minors.
Report Child Identity Theft
Report Your Child’s Identity Theft to the FTC at IdentityTheft.gov
Filing a report with your local police department is also advised. While police may not always be able to take action, having an official report can be helpful when dealing with credit agencies or creditors. Be sure to provide as much documentation as possible, including any evidence of fraudulent accounts or transactions.
Contacting any companies where your child’s information was misused is necessary to close fraudulent accounts and dispute fraudulent charges. It’s important to follow up in writing, providing copies of documents that support your case, such as the FTC Identity Theft Report and the police report.
Securing your child’s Social Security number and any other personal information moving forward is critical to prevent further misuse. This includes safe storage of physical documents and careful consideration before sharing this information with anyone.
Educating your child about the importance of protecting their personal information online and elsewhere can help prevent future incidents. This includes advising them against sharing sensitive information like their Social Security number without parental guidance.
On Average, Parents Spend About 16 Hours Total on Resolving Their Child’s Identity Theft.
Regularly monitoring your child’s credit for any future discrepancies by taking advantage of the free annual credit reports from the major credit bureaus can help catch any new instances of identity theft early.
Acting swiftly and comprehensively can mitigate the damage caused by child identity theft and help restore your child’s financial reputation before it can have long-lasting effects on their future opportunities.
2024 Data Sources