As unlikely as it seems, children under 18 are prime targets for identity theft. In fact, it is one of the fastest growing forms of fraud in the U.S. According to a report by CyLab, a research center at Carnegie Mellon University, 1 in 10 children had a Social Security number used by someone else before they became an adult.
Why? According to experts, children make a tempting target for identity thieves because:
- The are a black slate with no credit history
- The crime can go undetected for years
Identity thieves can use the child’s Social Security number or other personally identifying information to:
- Open bank and credit card accounts
- Apply for a loan or establish a line of credit
- Apply for government benefits
- Rent a place to live
- Get a driver’s license
Who? The perpetrator can be a family member, someone known by the family or a complete stranger. A 2012 survey conducted by Javelin Strategy and Research reported that in 27 percent of the cases, someone who knew the child committed the theft.
How? As with adults, there are many ways that Social Security numbers and other personal information can get into the wrong hands:
- Forms from schools, medical offices, youth sports teams and other organizations
- Tax and travel forms
- Social media disclosures
- Data breaches
Once the information is compromised, criminals often create a “synthetic identity” by combining the child’s Social Security number with a different name, date of birth, address or other fictitious information. Fraudsters will then use the synthetic identity to get credit, open bank accounts and obtain driver’s licenses and passports.
When? The likelihood is that the theft of a child’s identity takes place years before it is discovered. The reason is that minors, unlike adults, typically do not check credit reports or review monthly bills. In most cases, the identity theft only comes to light when a young adult applies for a driver’s license, a college loan or some other form of credit. The future effects of a child’s stolen identity can be devastating. It can affect their ability to obtain:
- A student loan, auto loan or credit card
- A driver’s license or passport
- Housing and utilities
- Employment
In addition, a false criminal and medical record can be created based on the actions of the identify thief.
What can you do? According to the Federal Trade Commission (FTC), you can take the following steps to protect your child’s personal information:
- Find a safe location for all paper and electronic records that show your child’s personal information.
- Don’t share your child’s Social Security number unless you know and trust the other party. Ask why it’s necessary and how it will be protected.
- Shred all documents that show your child’s personal information before disposing of them.
- Be aware of events that put information at risk: loss of a wallet, purse or paperwork that has your child’s Social Security information; a break-in at your house; or a notification from school, doctor’s office or business that a security breach has transpired that could affect your child’s personal information.
In addition, you need to monitor your child’s credit like it’s your own. EverSafe monitors your child’s credit reports and other data sources and will alert you immediately if signs of identity theft are uncovered.
For more information on identity theft and children, visit https://www.consumer.ftc.gov/articles/0040-child-identity-theft