They can’t vote, drink or apply for credit cards.

Yet every year nearly half-a-million children have their identity stolen and used by an adult.  Often times, the criminal and the victim are from the same family.

What is child identity theft?

Child identity theft occurs when someone uses the child’s personal information without their knowledge for another person’s gain. All the problems that an adult experiences when their identity is stolen- from ruined credit to fraudulent accounts and rampant debt – can happen to a child. Minors make easy targets for scammers because they don’t normally check their credit reports, meaning that the identity theft can go on for years before being noticed. Also, it’s often easy for to get credit in a minor’s name due to their unblemished credit history.  Unfortunately, the damage will impact their credit score, making it difficult to obtain credit once they become an adult.

A subset of this group, college students, are particularly at risk. Many colleges and universities use the student’s Social Security number as their student ID, and students are often bombarded with credit card offers. Because this group moves often and may neglect to forward their mail, sensitive information such as pre-approved credit card offers and student loan letters may fall into the wrong hands.

Key Statistics and Facts About Child Identity Theft

• Nearly 500,000 children each year are victims of identity theft. (MSNBC, 2005)
• The culprit is often a parent or guardian or anyone with access to the child’s information
• Identity theft against minors can go undetected for years since the theft is typically not discovered until the child applies for their first bank account, loan or credit card.
• Identity thieves can obtain a minor’s Social Security number and personal information from many sources, including medical records, school files and online social networks.

5 Steps to Prevent Child Identity Theft:

1. Guard Your Child’s Social Security Number. Do not carry your child’s Social Security number in your wallet. If necessary, make a photocopy of the card and cut off the last four numbers.
2. Be careful with whom you share your child’s personal information. For example, if your child’s after school sports program requires a copy of a birth certificate and/or Social Security card, ask if the coach has had a criminal and financial background check done by an independent or hiring source. Show the papers to the coach and then put them in a sealed envelope, and write your name across the sealed flap so you can tell if it has been opened when it is returned to you. Initial the back of each page so you can tell if you got the original back at the end of the season. Ask where these papers will be stored during the season.
3. Lock down the dorm room. College students should lock away their personal information. It is not uncommon for victims to have their information stolen by roommates who seem to be friendly.
4. Change your address with the Post Office. Make sure you send and receive mail in a locked mailbox, and to fill out a change of address form with the Post Office each time you change residences. Reduce the amount of junk mail you receive, including pre-approved credit card offers which is a common way that identity thieves can apply for and obtain new credit in your or your child’s name by either opting-out, or use an Identity Protection service.  You can also have your bills and statements delivered electronically which provides greater security and helps the environment.
5. Sign up for an Identity Protection service. There are several options available, all at a reasonable cost.  TrustedID offers a package that protects your entire family under one low-priced plan. The TrustedID service will check and protect your child’s credit report along with  other aspects of their personal information, including their Social Security number and medical benefits.

Tagged as: Add new tag, credit report, credit score, Identity Theft, Trusted ID

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