Every year, thousands of children and teens become the victim of identity theft and it often takes years to become aware of it. Learn what parents can do to help protect their children from identity theft.
2. Identity Theft is a Serious Problem
In 2014, it was estimated that about 17.6 million people in the United States experienced
identity theft. Once a person’s identity is stolen, that information can be used to open credit
cards, bank accounts, take out loans, buy cars, steal money, create accounts for utilities, get a
lease, apply for government benefits, and so much more.
On average, it takes 7 hours for a victim of identity theft to resolve the issue. In cases when
identity theft involves a monetary loss, that loss on average is about $1,343.
Sources: TransUnion, CompleteID
3. Children and Identity Theft
Anyone can potentially become the victim of identity theft, including children who aren’t old
enough to even have a credit card yet, let alone do things like buy a car, get a lease, or take out a
loan.
For a thief looking to steal an identity, the identity of a child can essentially offer a clean slate
since children don’t have things like criminal histories or a history of making late payments.
Once a child’s identity has been stolen, it might go unnoticed for years because many parents
don’t routinely check the credit scores for their children. Often, the problem isn’t discovered
until the child goes to open a bank account or get a job for the first time.
4. 13,852
Cases of identity theft reported to the FTC in 2017 involving
children and teens (age 19 and under)
Source: Experian
5. Signs a Child’s Identity Has Been Stolen
● Receiving collection notices or calls in your child’s name
● Receiving a notice declaring your child owes back income tax or that their identifying
information has been used on multiple tax returns
● Offers for pre-approved credit in your child’s name
○ Marketing offers arriving in your child’s name could be a sign that an account was
opened at a financial institution
Source: USC Credit Union
6. Protecting Children from Identity Theft
● Keep documents with sensitive information like birth certificates and social security cards
secured in a home safe or locked file cabinet. Avoid keeping them in a purse, wallet, or car.
● Don’t put a child’s Social Security number on a form until you find out why it is required
and how it will be protected
● Freeze your child’s credit
○ Changes to the Dodd-Frank Act in 2018 allow parents to freeze a child’s credit free of charge
○ If a child is under 16, a credit report file will be created and frozen
○ Children over 16 but under 18 can request credit freezes themselves
○ Instructions on how to freeze a child’s credit
Source: Nerdwallet
7. What to Do if a Child’s Identity is Stolen
● Contact companies where fraud occurred
● Contact credit bureaus
● Report the identity theft to the FTC
○ Call 877-ID-THEFT or online at IdentityTheft.gov
Source: Federal Trade Commission
