Child identity theft: A hidden but real danger

You might shred or secure paperwork that contains personal identifying information, such as your Social Security number or birth date. But do you take the same precautions for your children?

You probably should. According to child identity theft statistics from Javelin Strategy & Research, there were 915,000 children who were victims of identity fraud from July 2021 to July 2022 in the U.S.

What is child identity theft?

Child identity theft occurs when someone steals a minor’s private identifying information (PII), such as their name and Social Security number, typically to obtain employment or gain credit fraudulently. Child identity theft can happen in a variety of ways including familial theft, phishing scams, data breaches from companies with a child’s personal information, direct account hacking or even the physical theft of sensitive documents.

You might be wondering why someone would do this in the first place. The main reason is that children’s information appeals to thieves looking to build credit with a clean slate. That clean slate allows them to get hired, avoid criminal prosecution or start over in general as a child’s identity profile won’t come with the history that an adult’s would.

Adults may be actively involved in the credit world, checking statements and scores. Still, parents don't tend to check their children's credit. This means thieves can do more undetected damage over an extended amount of time, like lowering their credit score, causing issues with student aid or even adding to their criminal record. Additionally, each instance causes an average of $1,128 per household to simply resolve the fraud, according to Javelin's 2022 Child Identity Fraud Study.

Learn some ways to help prevent child identity theft, safeguard your children's personal information and pursue problems on their behalf.

Child identity protection measures

• Check if your child has a credit report. Children under 18 shouldn’t have one. If you find that they do, there could be a mistake in the system or your child’s identity may have been stolen. Note that you’ll need to confirm that you’re their legal guardian when requesting the report from the bureaus.
• Protect documents that include their personal information. Physical or digital documents with personal information should be stored in a safe place like a locked file cabinet or a secure drive.
• Protect personal information on your devices. Information left on your child’s devices or your own may be vulnerable to hackers. Consider encrypted cloud services or external hard drives if you don’t have physical copies of your child’s documents.
• Safely dispose of documents with their information. Shred or delete unneeded documents that include sensitive information.
• Keep their Social Security card secured. The Social Security number is the primary information that child identity thieves look to steal. The card should be well-hidden and secured.
• Educate your children about not releasing personal information. Children might willingly give up their information due to naivety. Try to educate them early on not to give out such information.
• Enlist an identity theft protection service. These services can offer individual and family plans and help watch over your credit history, personal information and internet use to alert you of suspicious activity.

If you suspect your child’s identity may have been stolen, ask your child questions about the information they’ve given to people in person or online via communication tools like social media. The people after their information may be more familiar than you think, as three out of four child identity theft victims know the thieves. Children may not understand the full consequences of giving out their information or passwords or offering it to people who appear trustworthy on the surface.

Know warning signs of child identity theft

Receiving mail in a child's name could be a warning sign. Some examples include:

• Collection notices
• Bills or new credit cards
• Traffic violation warrants
• Jury summons
• Letters from the IRS stating your kid didn’t pay income taxes

Other warning signs can include:

• Phone calls from debt collectors inquiring about debts listed under your child’s name
• An existing credit report or financial account in the child’s name
• Denial of government benefits as they’ve been claimed by the thief
• Calls giving notice that your child has an overdue bill
• Denial of student loans due to the thief missing payments under the child’s name

Steps to take if your child is a victim of identity theft

If you suspect fraud, contact the Federal Trade Commission (FTC) to get help measuring the scope of the problem, and then file reports with your local police department and the three credit bureaus. You can also file for a credit freeze or fraud alert to help alleviate the situation. Parents and guardians might also be able to implement a protected consumer freeze which remains until a removal is requested. When you file, include a copy of the police report. There is no fee for victims of identity theft.

Once that’s been handled, contact the Social Security Administration (SSA) to find out if your child’s identity has been used anywhere else. You may also be able to change their Social Security number. Contact the companies where the fraud has occurred to shut down accounts or records they have of the fraudulent activity. Lastly, check notable social media websites for any bogus accounts and seek out steps to cancel them.

Consider doing a yearly credit report and general check-in, then teach your child to do so themselves once they turn 16.

Get more information about identity theft from State Farm^®. For added child identity theft protection, look into identity restoration insurance.