The Young Victims of Identity Theft

Understanding the Scope of Child Identity Theft

Identity theft is not just an adult concern; children and young adults are increasingly becoming victims. According to the Federal Trade Commission (FTC), approximately 500,000 minors were affected by identity theft in a single year. The Identity Theft Resource Center highlights a disturbing trend: over half of these cases involve family members or acquaintances of the child. This exploitation often goes unnoticed for years, as minors rarely engage in activities that would require a credit check.

Children are particularly vulnerable from the moment they are assigned a Social Security number, often at birth. This number can become a tool for fraud, going unchecked until the child grows up and attempts to use their credit for the first time, such as applying for a job, a student loan, or a credit card.

Common Tactics and Preventive Measures

Tactics Used by Identity Thieves:

• Family Fraud: Parents or relatives using the child’s Social Security number to open credit accounts.
• Data Breaches: Sensitive information being stolen during company data breaches.
• Mail Theft: Stealing pre-approved credit offers from the mail.

Preventive Steps:

1. Credit Monitoring Services: Services like LifeLock offer monitoring for a fee, alerting parents to any credit applications made using their child’s identity.
2. Regular Credit Checks: Parents can contact major credit bureaus to check if there is a credit file in their child’s name. If a file exists, it can be flagged to prevent further misuse.
3. Secure Personal Information: Avoid sharing personal details unless absolutely necessary. Shred sensitive documents and secure digital information.

Resources and How to Use Them

Contacting Credit Bureaus:

• Experian: Parents can call 1-888-379-3792 and follow the procedure to check if their child has a credit file.
• Equifax: Requests can be mailed to Equifax Information Services with necessary documentation to check for or dispute a credit record.
• TransUnion: Parents can email childidtheft@transunion.com for instructions on how to secure their child’s credit file.

Free Services and Advice:

• Social Security Administration (SSA): Offers free checks for any earnings reported under a child’s Social Security number, though limitations exist if the thief uses a different name.
• Federal Trade Commission (FTC): Provides resources and guidance on how to protect against and handle identity theft (FTC Identity Theft Resources).

Alarming Trends and Statistics

A study by Javelin Strategy & Research found that over 1 million children were victims of identity theft in 2017, resulting in losses of $2.6 billion and over $540 million in out-of-pocket costs to families. This highlights the critical need for increased awareness and proactive measures to protect our children’s identities.

Conclusion

The threat of identity theft for minors is real and growing. By understanding the risks, utilizing available resources, and taking proactive steps, parents can help safeguard their children's financial future. It is crucial to remain vigilant and responsive to the evolving tactics of identity thieves.