How Does Child Identity Theft Happen?

Child identity theft can happen in many different ways, such as by family members, data breaches, compromised online accounts or even sensitive documents being stolen. According to a Carnegie Mellon CyLab study, children are 51 times more likely to fall victim to identity theft than adults. Child identity theft happens when an individual uses a minor’s sensitive information to open lines of credit, get loans or steal benefits under the minor’s name.

Keep reading to learn how child identity theft can occur, how you can check if your child’s identity has been stolen and what to do about it.

How child identity theft can occur

There’s more than one way your child’s identity can be stolen. Here are some of the most common ways your child could become a victim of identity theft.

Family members

The most common suspects of identity theft are usually from people the child knows. Typically, those who steal children’s identities are people within the child’s family, as family members can easily access a child’s sensitive information, such as their Social Security number or passport. Since children generally rely on their family members the most, this form of identity theft takes complete advantage of children’s innocence and trust.

Physical theft of sensitive documents

Not keeping sensitive information in a secure location could lead to your child’s identity physically being stolen. If you place your child’s passport, birth certificate or Social Security card in unsafe locations, even within your home, it’s possible for anyone to find your sensitive documents and use them to impersonate your child. For example, if a friend visited your house and was looking through your belongings, they could most likely spot private information if you left a sensitive document on your kitchen counter. Make sure to keep sensitive documents in a place like a drawer or folder where only you know their location. Since friends and family members are most likely to steal your child’s identity, it’s important to keep private information in a safe place.

Data breaches

Sometimes, a child’s identity can be stolen as a result of a data breach. Public data breaches happen when you have an account with a company and that company accidentally exposes customer information due to a cyber attack. If your child has an online account where they’ve input sensitive information and that company suffers a data breach, your child’s personal information could fall into the wrong hands and be used for identity theft.

Compromised online accounts

When one of your online accounts is compromised, this means a cybercriminal or anyone without permission has hacked your account. In general, accounts get compromised when someone has weak or reused passwords. Since children might find it easier to use the same password or a similar version for multiple accounts, this weakens the security of their accounts and private information. This especially becomes an issue when an account holds sensitive information, like a Social Security number, which could lead to your child getting their identity stolen if the account is compromised.

How to check if your child’s identity has been stolen

An easy way for parents or guardians to check if their child’s identity has been stolen is by seeing if the child has a credit report. Unless you have added your child as an authorized user or joint account holder, your child should not have any credit history on their credit report. You can request your child’s credit report by contacting each of the three major credit bureaus (Experian, TransUnion and Equifax). You will most likely need to supply them with your child’s Social Security number, birth certificate and your own identification to check this. If you find unfamiliar activity on your child’s credit report, your child’s identity has most likely been stolen.

What to do if your child’s identity has been stolen

After finding out that your child’s identity has been stolen, you are most likely panicked and unsure what to do. Follow these steps if you believe your child’s identity has been stolen.

1. Report the theft

The first thing you should do if you suspect your child is a victim of identity theft is to report the theft. Contact the Federal Trade Commission (FTC) to report the identity theft, and they will use the information you provide to give you a customized recovery plan. You should also contact your local police department to file a report.

2. Place a freeze on your child’s credit report

After reporting the identity theft, you need to place a freeze on your child’s credit report with each of the three major credit bureaus (Experian, TransUnion and Equifax). For each of these credit bureaus, you will need to complete a freeze request form for your child so they can conduct the freeze.

3. Inform debt collectors of your child’s identity theft

It is essential to inform debt collectors about your child’s identity being stolen. By doing this, you ensure that your child does not become responsible for any debt created in their name by an identity thief. This will also restore your child’s credit if an identity thief did any damage.

4. Contact the Social Security Administration

Just as you should contact the FTC and your local police about your child’s identity theft, you should also contact the Social Security Administration. Because an identity thief could use your child’s Social Security number to impersonate them or get loans, it’s important to let the Social Security Administration know about your child’s identity theft so they can review your situation.

Protect your child against identity theft

Identity theft can be damaging at any age, but since your child is underage and cannot always protect themselves, you must teach them how to protect their identity. You can keep your child safe from getting their identity stolen in a few different ways:

• Place your child as an authorized user on your credit card
• Place a security freeze on your child’s credit report
• Be cautious about who you share your child’s Social Security number with
• Shred any unnecessary documents that contain your child’s sensitive information
• Discuss online safety with your child

By keeping your child’s sensitive information secure and teaching them the importance of staying safe online, you can minimize the chances of your child’s identity being stolen.