Real Estate Innovation

Is Your Child At Risk For Identity Theft?

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 Occurs

Children can get issued a social security number at a young age - often because their parents have a need for it. And while the government has been making laws to protect adults from identity theft, the social security number is unfortunately still one of the most common forms of identification used for children.

Since most parents don’t ever think of checking their kids’ credit reports problems due to fraud can go undetected for years. And to compound the issue, the websites that are set up to provide free credit reports won’t do so for children - you need to send a letter by mail requesting this information for your kids.

Results Of Child Identity Theft

It’s usually several years before the problem appears, often not until the child has reached adulthood and starts applying for a loan or credit cards. And there are a couple of things that can make the problem even worse than the average identity theft. First, because these accounts were opened as new ones, and not existing ones that were taken over by fraudsters, it can be a lot more difficult to clear them from your record. Second, by the time these issues come to light the debts are long overdue and have been in collections for a number of years.

How To Protect Your Child From Identity Theft

The best way to protect your child from identity theft is to routinely monitor their credit report annually. It is also a good idea to avoid giving out your child’s social security number except when it is absolutely necessary. Only the IRS, and in some cases your doctors, have the right to demand your child’s social security number. Additionally you should never carry your child’s social security around with you. Memorize the number and leave the card at home.