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Identity theft gets a lot of attention these days but child identity theft is hardly ever mentioned, in spite of it being one of the quickest growing areas. One of the reasons children are so vulnerable is because they usually have a social security number, but their parents rarely check their credit reports since they wouldn’t expect there to be any need. Problems can rear their ugly head years later when the child is grown up and applies for a loan or a credit card. Suddenly, the problem from years earlier shows up and their application is declined.

How Child Identity Theft Happens

Every child born in America is issued a social security number, which the parent often has to obtain for health insurance and tax purposes. In the course of taking the child to the doctor, registering for school, signing up for sports, and filing taxes, the child’s social security number is spread out all over the place. While the government is busy making changes to protect adults from identity theft, a child’s social security number is still the number one form of identification at school and at medical offices. This makes every child a target for identity theft.

Since most parents rarely, if ever, think of checking their child’s credit report, it’s easy to miss problems that crop up due to identity fraud. And to make the problem worse, the websites that are set up to provide a free annual credit report won’t allow you to check your children’s information. To do so, you need to send a written letter in the mail.

How Child Identity Theft Usually Plays Out

Often the child does not realize that they have been a victim of identity theft until many years after the fact. This poses a couple of problems for the new adult in regards to clearing their credit history. Thieves who commit identity theft against children open new accounts and take out loans in the name of the child. Statistics show that it is often much more difficult to clear up accounts that were opened new as compared to existing accounts with fraudulent charges made on them. Secondly, the accounts are frequently many years old and deep into collections by the time the individual becomes aware of the child identity theft. Even if the accounts are paid off after going to collections, the black mark remains from the original lender for many years.

Protecting Your Child From Identity Fraud

The best protection for your children from identity theft is to check their credit report every year. It’s also wise to stop giving out your child’s social security number except when you absolutely have to. The IRS and sometimes your doctor have the right to know it, but nobody else has to. And never carry your kids’ social security cards with you. Memorize the number and lock the cards away at home or in a safety depost box.

Finances

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