We all know the many online dangers for children, such as cyber predators and grooming. However, you may not know that child identity theft is also an Internet safety issue. So, let’s look at what it is and learn how to prevent it.
According to The Identity Theft Resource Center, around 1.3 million children’s records are stolen each year, while the FTC found that it takes an average of 6 to 12 months for child identity theft to be detected, and the recovery process can take several years. You don’t want this to happen to your kid, right? To avoid all these problems, you should know how to deal with them and how to prevent them from happening altogether – and this guide will walk you through it all.
Child Identity Theft Description
Child identity theft definition refers to someone stealing the personal information of a person under 18. Unfortunately, many people do not take this form of digital theft seriously, believing that identity theft is only something that adults need to worry about. However, this is not the case whatsoever. When looking at internet identity theft statistics, we were stunned to learn that 1 in 50 children have had their identity stolen in some form or another. It’s not some one-in-a-million event; it’s an everyday occurrence, and if you’re not careful, it can happen to your child.
Child Identity Theft Risks Involved
Child identity theft happens when someone uses your kid’s personal details – like their Social Security Number, name, or birth certificate – to commit fraud or get benefits illegally. And it’s bad – no sugarcoating it:
- Fraudulent financial activities: Thieves might use your child’s info to open bank accounts or credit cards in their name. They could even take out loans. If those loans aren’t paid off, it could wreck your child’s credit score, making it hard for them to get loans or rent an apartment when they’re older.
- Illegal purchases: Scammers might buy big-ticket items like cars using your child’s identity. This can rack up debt in your child’s name, and fixing it can be a real hassle.
- Government benefits: Crooks could use your kid’s info to apply for government aid, like unemployment or pandemic relief. This can lead to legal issues and a long process to clear your child’s name and handle any related tax problems.
- Utility services: Utility companies could set up services like electricity or internet in your child’s name, leaving behind unpaid bills that could hurt their credit. Unresolved bills might lead to collection actions and make it tough for them to get services in their own name later.
- Tax fraud: Someone might file a fake tax return using your child’s SSN to get a refund. This can cause delays with the IRS and involve a lot of paperwork to clear up.
- Employment and housing: Thieves might use your child’s info to get jobs or rental agreements, potentially leaving unpaid wages or rent. This could hurt their credit history and create legal problems for them down the line.
- Synthetic identity creation: Some scammers combine your child’s SSN with other stolen info to create a fake identity. This can be especially tricky to spot and fix since it involves untangling multiple aspects of their financial and personal history.
How Does Child Identity Theft Happen?
There are several ways for this to happen, and none of them are pleasant – after all, fraud rarely is. Still, you should learn of them now to avoid them in the future:
- Phishing scams: How can child identity theft occur? Scammers might send fake emails, calls, or texts pretending to be from trusted places like schools or government agencies, tricking parents into giving away their child’s personal details.
- Hacking: Cybercriminals target organizations with big databases. If a child’s info is in one of these, a data breach can put their personal data at risk.
- Family theft: “But this is family!” Yes. That’s why it hurts most. A relative might misuse access to personal documents or information to commit fraud using the child’s identity.
- Social engineering: Fraudsters use various tricks to manipulate people into revealing a child’s private info, like pretending to be a service provider or authority figure.
- Lost or stolen documents: If important documents like Social Security cards or birth certificates get lost or stolen, they can be used for identity theft.
Why Would Someone Steal Your Child’s Identity?
Child identity theft can be a confusing concept for many, as you may wonder why an identity thief would go after someone without money and little influence on the world. There are no child credit cards they can exploit, either. However, there are many reasons why someone would want to steal your child’s identity:
- Lenders often overlook age verification: A lot of lenders, especially the sketchy ones, don’t bother checking if the person applying for credit or a loan is actually old enough. This slip-up makes it easier for identity thieves to sneak in because these lenders are more interested in approving applications than making sure the applicant is legit.
- Social Security numbers don’t reveal age: Many people think you can figure out someone’s age just from their Social Security Number (SSN), but that’s not the case. Thieves know this and happily use stolen SSNs without worrying about the victim’s age being caught right away.
- Long-term fraud risks: Identity thieves can use a kid’s SSN for fraud and get away with it for years before any problems with the kid’s credit come up. This can lead to long-lasting issues for the kid, like messed-up credit and a huge hassle trying to fix things when they’re older.
Also, a child has no credit history, so a thief can exploit this to get credit cards, apply for automobile loans, file fake tax returns, and much more. This creates a credit nightmare for the child before they are even a legal adult.
Finally, many children and adolescents can be less guarded about their personal information, making it easy for someone to steal it.
How Many Minors (Under 18 Years of Age) Have Had Their Identity Stolen?
According to a Javelin study, around 1.25 million children – about 1 in 50 – fall victim to identity theft each year. Research from Carnegie Mellon CyLab highlights just how severe the problem is: minors are 51 times more likely to experience identity theft compared to adults. Out of over 40,000 young people studied, 10.2% had their identities stolen, whereas only 0.2% of adults faced the same issue between 2009 and 2010. Teens aged 15-18 are especially vulnerable, making up 43% of the cases. Financial fraud is the most common type of identity theft, with 70% of cases involving credit and loan fraud.
How to Know If Your Child’s Identity Has Been Stolen
Many child identity theft cases can go unnoticed for a while, which should not happen. You should enact ASAP if you suspect your child’s identity has been stolen. With that said, how can you know it? Here are some common signs.
Odd Mail Addressed to Your Child
If you’re receiving letters from the IRS directed to your child, this is a sign that your child may be the victim of identity theft. Of course, the IRS is an extreme example:
- Credit card pre-approval letters: If your kid suddenly starts getting random credit card or loan offers, that’s a red flag. Kids usually don’t have credit histories, so if they’re getting these offers, someone might be trying to open accounts in their name.
- Bank account statements: Keep an eye out for bank statements or financial service notices for accounts you didn’t open.
- Collection notices: Be wary of letters from debt collectors or collection agencies that are addressed to your child. These could be related to debts they didn’t rack up, but rather the result of someone stealing their identity.
- Tax documents: Any tax mail from the IRS for your child is a big deal. If you get a notice saying someone used their Social Security number to file a tax return, that’s definitely a problem.
- Medical bills: Receiving medical bills or notices for services your child didn’t receive could mean someone is using their identity to get medical care or prescriptions.
Phone Calls Addressed to Your Child
If you’re receiving calls from people such as debt collectors, this can be a sign that your child’s identity is stolen. With so many robocalls and scam calls, you may ignore these, but you shouldn’t. If they’re specifically reaching out to a child, that’s a huge red flag. Always investigate these suspicious calls.
The Child Is Denied Government Benefits
Another reason you may want to investigate is if you’ve tried applying for government benefits for your child only to be denied. This is because someone has stolen your child’s information and instead collects benefits under their name:
- Social Security benefits: Thieves might use your child’s number to fraudulently claim Social Security benefits.
- Medical assistance: Your child’s information could be misused to get medical services, which might affect their eligibility for real medical help or insurance.
- Educational grants and scholarships: Scammers might apply for grants or scholarships using your child’s details, which can complicate or even cancel your child’s legitimate applications.
- Welfare and assistance programs: They might exploit your child’s information to access welfare benefits, which could leave your family struggling to get the help you need.
- Tax refunds: There’s a risk of fraudulent tax returns being filed under your child’s name, which might lead to issues with refunds or other tax problems.
- State or local benefits: Other benefits, like housing assistance or state-specific programs, might also be affected if your child’s identity is used fraudulently.
Do not take it lightly if you’ve experienced any of the above. It can signify that your child has their information stolen, and you must act now before the thieves continue to steal their information.
How Does Child Identity Theft Occur, and What to Do with This?
So, knowing what you should steer clear of, you should learn how to deal with it – and we’ll guide you along the way. Read on!
1. Contact Any Major Credit Bureaus
This step can confirm if your child has a line of credit. To find out if your child has one, you’ll need to get in touch with each of the three national credit bureaus—Experian, TransUnion, and Equifax—individually and follow their procedures. Ask for a copy, then request the bureau delete it, freeze it, and issue a fraud alert. You will need a copy of the Uniform Minor’s Status Declaration to prove your child is under 18.
2. File Fraud and Identity Theft Reports with the FTC
Call the FTC at 1-877-438-4338 or visit their website at identitytheft.gov to file a claim.
3. Close Any Fake Accounts
If someone uses your child’s information for businesses, contact them and ensure you have an FTC claim confirmation ready.
4. Contact the SSA
If you suspect someone might have stolen your kid’s identity, you need to contact the Social Security Administration (SSA) ASAP. They can check if your child’s Social Security number is being misused and help you figure out how to protect their identity. When you call, make sure you have all the necessary details and documents ready – they might need them to sort everything out.
Prevent Child Identity Theft from Happening Again
With identity theft, lightning can strike twice. First off, make sure all personal info is protected with strong passwords and keep an eye on your accounts regularly. It’s also super important to talk to your child about privacy – let them know they shouldn’t be sharing personal details online or with strangers.
You might want to look into identity theft protection services that offer monitoring and alerts for any shady activity. Also, don’t forget to check your child’s credit reports now and then for any signs of unauthorized stuff, and consider putting a credit freeze or fraud alert on their file to block anyone from opening new accounts in their name. And if you want to learn some more proactive approaches to prevent child identity theft – we’ve got you covered in the next sections below.
10 Ways How to Prevent Child Identity Theft
If you’re asking yourself, “How does child identity theft occur?” It’s because many parents and kids are not prepared and do not know how to prevent it. So here are ten ways to protect your child from identity theft.
Never Give Out Your Child’s Information Unless Necessary
You should only give your child’s personal information if it’s for a doctor, a school, or any organization to trust. If someone suspicious asks for this information, wait to give it to them until you know they’re safe – and we mean information like:
- Full name
- Date of birth
- Address
- Social Security number
- School name and class
- Medical history and health records
- Emergency contact details
There are also many cases where a child may be eager to give out their personal information, such as a newsletter from their favorite band. However, if possible, use your information.
Lock All Your Child’s Personal Information
Keep any sensitive documents locked away. Yes, even from family members! Not everyone can be 100% trusted, and it’s better for parents to have an exclusive access to:
- Passport
- Birth certificate
- Social security
Look Into Credit Report Monitoring
Use many applications to monitor a child’s credit report and get an alert if there are any changes. If you receive an alert, you know your child is an identity theft victim, and act ASAP. These services can work for you:
- Credit freeze services: You can put a credit freeze on your child’s report with Experian, TransUnion, and Equifax to stop anyone from opening new accounts in their name without your say-so.
- Identity theft protection services: Brands like LifeLock, IdentityGuard, and IdentityForce provide comprehensive protection for both adults and kids.
Update Your Cyber Security Programs
Using a program to protect against hackers and malware can help prevent identity theft. Additionally, make sure to update your computer regularly. While updates might be a bit annoying, they fix security issues and help keep your computer safe. Here are tips for enhancing cyber security:
- Update Security Software: Keep your antivirus, firewall, and other security programs updated. If possible, enable automatic updates.
- Use Strong Passwords: Utilize a password manager to create unique and strong passwords.
- Monitor for Unusual Activity: Regularly check your devices for any unauthorized access or suspicious behavior.
- Enable Two-Factor Authentication (2FA): Add an extra layer of security to your accounts where possible.
Request a Credit Freeze
Contact the three major national credit bureaus (Experian, TransUnion, and Equifax) and request a credit freeze for your child. This will ensure no one can do anything to your child’s credit report. Keep it frozen until your child reaches legal age, then contact them again to unfreeze it. You should prepare the following:
- Your government-issued ID
- Proof of authority (e.g., birth certificate, guardianship papers)
- Both your and your child’s Social Security cards
- Proof of your address (e.g., utility bill)
When this is done, look up credit bureaus’ contact information and send them a request. There are a few options for you to have:
- Equifax: Call 1-888-378-4329 or mail a completed minor security freeze request form.
- Experian: Use their online portal or mail a printed request form.
- TransUnion: Send a request for a “protected consumer freeze” along with the required documentation.
Beware of Privacy Policies
When signing up for an organization or website, read the privacy policies. They will tell you how they will use your child’s information, allowing you to decide whether to participate in the organization.
Replace Social Security Card for Child ASAP
If your child’s social security card has gone missing, contact your closest social security office and replace it ASAP. The sooner, the lower the chance of identity theft occurring.
Educate Your Child
As your child grows older, especially as they get online, explain cyber security and cyber hygiene to a child. Tell them about how people can steal their personal information, and tell them that if they need clarification on whether they should give out their information, the child can consult with you.
Many identity theft cases happen because parents allow their children unfettered access to the Internet. Even with parental control programs, it’s still possible for your child to find a website that does not have your child’s best interests in mind. Have your child take an Internet safety pledge, and be sure that your child feels safe asking any questions. Talk to them about:
- Personal info: Explain what personal information is (e.g., full name, address, phone number, school name) and why it’s important to keep it private.
- Privacy settings: Explain that, on social media and other sites, they can control who sees what, and they must make sure they use those settings to decide who gets to peek at their posts and personal info.
- Passwords: Emphasize the importance of strong, unique passwords and the concept of not sharing passwords with anyone.
- Strangers online: Explain that not everyone online is who they say they are, and how important it is to be cautious when chatting with people they don’t know well and don’t overshare personal details.
- Phishing: Explain that they must watch out for phishing scams and how they might look (e.g., fake emails or messages asking for personal information).
- Links and downloads: Emphasize the importance of being careful with links or downloads from sources they don’t recognize.
Consider Using uMobix
We all deserve our privacy, including our children. However, if you suspect your child is giving away their personal information or doing anything else that puts them at risk, it’s time for you as a parent to step in.
- Monitor online activities: uMobix allows you to track your child’s internet usage, helping you identify suspicious websites.
- Text messages monitoring: Track incoming, outgoing, or deleted messages sent via messengers, social media, or SMS to expose any inappropriate communication.
- Location tracking: The app provides real-time location tracking, enabling you to respond quickly if your child is in a potentially dangerous area.
- Keystroke monitoring: uMobix helps you monitor what your child is typing on their phone, ensuring they aren’t revealing sensitive information.
While we should always trust our children, their online behavior can sometimes be risky. uMobix ensures they are not revealing anything that could give away their information, meaning that they do not have to deal with identity theft issues in the future.
Final Words
Now you know how child identity theft can occur. It is a serious issue, but with the right steps and the uMobix parental control app at hand, you can protect your child from becoming a victim. Keep their information secure, stay vigilant for any signs of trouble, and teach them about online safety. By being proactive, you can help ensure your child’s future remains safe from identity thieves.
