Protect Your Children Against Child Identity Theft

Your children could have a credit history long before they ever apply for their first credit card — and not in a good way.

In this digital world, your children are more vulnerable than ever to identity theft. Why? Because information about them is collected every time they play an online game on their tablet, text with their friends on their phone, or surf the web on their laptop.

Think about situations in which you input your child’s Social Security number (SSN), such as tax returns or applications. Under such instances, your child’s data is at risk because it can be potentially stolen by thieves.  

If you’re a parent, keep reading to learn how to keep your children’s identities as safe as possible to avoid child identity theft.  

What is child identity theft, and how does it happen?

Child identity theft is when someone fraudulently uses a child’s personal information, like their SSN, for illicit activities such as opening credit accounts, applying for benefits, applying for a job, applying for an apartment, or taking out loans.  

Research shows that a significant number of American children are at risk of identity theft because people are misusing their Social Security numbers, even more so than adults.

How does it happen? Usually, a minor’s SSN gets compromised or stolen. This can happen through online activity or through stolen documents containing Personally Identifiable Information (PII).

Recent surveys have highlighted the concerning trend of child identity theft, with a significant portion of victims being targeted by individuals they know personally. This shows the possibility that relatives could be the ones to commit fraud, and it’s important to safeguard documents with children’s PII.

How to protect your children against identity theft

One of the biggest problems with child identity theft is that it’s so difficult to detect. People don’t usually apply for credit until they’re 18 or older, which means that fraudulent activity under a child’s name can go undetected for years.

This is why the first and most important step to protect your child’s identity is to freeze their credit report.  

1. Freeze your child’s credit report  

The Federal Trade Commission (FTC) recommends a credit freeze for minors as one of the most important actions to take. This can also be done as a prevention method to avoid fraud. Ask for a credit freeze or security freeze, which makes it more difficult to open accounts in your child’s name. Then, the freezes stay in place until you ask for them to be removed.  

To request a credit freeze for minors, you should contact each of the three credit bureaus separately. The FTC has an official page where you can find current information on how to contact all three credit bureaus in case of identity theft. However, we have another blog where you can learn the exact steps on how to freeze credits.  

After freezing your children’s credit, the following are additional steps you can take to protect your child’s identity:

2. Only use your child’s SSN when necessary

If an entity asks for your child’s SSN, ask them the following questions:

• Why do they need it?
• How will they protect it?
• Can they use something other than the SSN?
• Is it okay to use the last four digits only?  

Please note that using your child’s SSN to take loans or open credit cards for yourself is illegal and can have a tremendous impact on their credit score and credit report in the future.

3. Closely monitor your child’s personal information

If you list your child’s SSN in any papers or electronic documents, ensure you keep them safe. If you’re ready to get rid of documents and they’re paper, shred them before throwing them away.

4. Delete personal information when updating electronic devices

Your laptops, tablets, and phones all have stored personal data related to your child. When you upgrade your child’s phone to a new device, be sure to delete information on their previous device before throwing it away or selling it.

5. Use ID protection services

Child identity theft protection services are a measure you can take to monitor for future theft. Professional services like IDShield will ensure you are properly monitoring your children’s PII. You can find more information about IDShield at the end of this blog.

6. Set up boundaries with your children

Discuss your childrens online activities, the websites they visit, and the apps they use. Ensure they understand what personal data is fine to share and which is not.  

Setting up parental controls on their electronic devices is another way to limit access to content that is appropriate for their age. Finally, explain that these actions are about keeping the family safe and not about controlling what they do.    

Signs that your child’s identity has been stolen

The following are several telltale signs that your child’s identity has been stolen:

1. Your child receives pre-approved credit card offers

If an offer comes in with their name, it means that there’s an existing credit file with at least one of the three major credit bureaus. This should be uncommon for minors unless you are actively pursuing credit-building opportunities for your child.

2. You’re rejected for government benefits

The benefit you applied for may have already been paid to another account related to your child’s SSN. This could mean that someone has stolen your child’s identity and is using it to receive government benefit payouts under a different name. This may also indicate that the adult’s identity is at risk.

3. Your child receives IRS correspondence

Another red flag is when a minor, who is not working, receives communications from the IRS about income taxes. If your child is not working, they should not be getting any IRS correspondence. Keep reading to find out what to do in case this happens.

4. Your child is contacted for unpaid bills

In some cases, a minor’s personal information can be used for services that go unpaid. This results in collection agencies attempting to contact the child about their supposed outstanding bills. You may also receive communications about your child owing money. If you encounter these situations, it’s important to take immediate action to protect your child’s credit and PII.

What to do if you suspect your child’s identity is compromised

1. Close fraudulent accounts

Get in touch with the banks or financial institutions to let them know about the theft, then ask them to shut down the accounts.  

2. Freeze their credit report

We already mentioned this step, but if you haven’t done it yet, then now is the time to do so. While getting in touch with all three major credit bureaus to freeze the credit (TransUnion, Experian, and Equifax), request that they remove all fraudulent accounts from your child’s credit report.

3. Report the theft to the FTC and your local authorities

To report the theft to the Federal Trade Commission, go to www.identitytheft.gov. Reporting only takes a few minutes, and you'll need to provide documentation to support your report.  

After reporting the theft to the FTC, contact your local law enforcement agency to file a police report. Both reports will help support your efforts to deal with fraudulent credit cards or other benefits obtained in your child’s name.  

Finally, we recommend working on restoring your child’s identity to its pre-theft status, so they don’t have negative consequences on their credit reports and score that may affect their future credit opportunities.

How can IDShield® help protect your child’s identity?

A credit freeze alone doesn’t monitor suspicious activity or potential misuse of personal information. That’s where identity theft protection services like IDShield can provide additional support.

IDShield monitors you and your family’s Personal Identifiable Information (PII), so you can protect yourself from thieves, data brokers, and other parties that may want to steal or sell your data.

When you sign up for an IDShield membership, we watch out for you by monitoring the dark web, bank accounts, credit reports, and more for the information you input. If we catch any suspicious activity, we send you real-time alerts and provide you with next steps to protect your data.  

The following are some of our services that can help protect your child’s identity:

• Parental Controls: Content filters to monitor and block what web pages can be viewed, and allows you to schedule specific timeframes for when children can browse the web.  
• Trend Micro Maximum Security: Get Device Protection against ransomware, viruses, dangerous websites, and identity thieves. Includes mobile security for Android and iOS.  
• Credit Freeze Assistance: A Licensed Private Investigator will assist with placing a credit freeze and/or fraud alert on your credit reports in the event of a breach or other identity theft incident.  
• Full-Service Restoration: In the event of identity theft, our Licensed Private Investigators will work to restore your identity to its pre-theft status.  

Combining preventative measures like credit freezes with IDShield services’ ongoing monitoring supports you with greater visibility and peace of mind. Learn more about how IDShield can help you protect your family.

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IDShield is a trademark of Pre-Paid Legal Services, Inc. (“LegalShield”). LegalShield provides access to identity theft services through membership-based participation. IDShield is a product of LegalShield. Some of the services provided under the plan by third-party providers are subject to change without notice. All Licensed Private Investigators are licensed in the state of Oklahoma. The information made available in this blog is meant to provide general information and is not intended to provide professional advice, render an opinion, or provide are commendation as to a specific matter. The blog post is not a substitute for competent and professional advice. Information contained in the blog may be provided by authors who could be third-party paid contributors. All information by authors is accepted in good faith; however, LegalShield makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information. The Identity Theft Insurance is underwritten and administered by American Bankers Insurance Company of Florida, an Assurant company. LegalShield is not an insurance carrier. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.