A Child’s Stolen Identify Can Lead to Bankruptcy

Your kid thinks every penny found on the sidewalk is priceless—how can she possibly be bankrupt? Yet here’s the sobering fact: a child may be 51 times more likely than an adult to have her identity stolen, which can lead to bankruptcy. One study examined 40,000 profiles of children and found 10% had “tainted” identities—meaning 4,000 of those kids have gun licenses, mortgages, car loans or drivers’ licenses.

The reason for targeting children? They’re a lot less likely to catch on. In fact, criminals can get away with using a child’s ID for years, while an adult usually discovers the compromise in an average of 59 days.

Criminals know that unless you’re in the habit of running credit checks on your kids, you wouldn’t even know an identity theft has occurred. The credit issuers don’t know, either, since they don’t verify applicants’ ages and there isn’t much reporting of age between credit reporting agencies and the Social Security Administration. The fraud isn’t detected until you try to open a savings account for your child or she applies for a job or a driver’s license.

So how do you prevent children’s identify theft? Here are some solid tips to keep your kids safe.

Be Careful About Credit Reports

True, running a report on your child might reveal identity theft. But the Federal Trade Commission doesn’t recommend multiple checks unless you think there’s a reason for them. Repeated requests can cause the premature creation of a credit file—which ironically makes it easier to steal your child’s identity. For kids under 16, a check every three or four years should catch any problems before they get out of control.

Know the Warning Signs

Is your child receiving multiple credit or bank offers? She shouldn’t be. Financial offers are a big warning sign that something’s wrong. You may get another tip-off if you open a bank account in your child’s name. If the account is denied, there’s a problem. Another indication that something is awry is if a school official does a routine SSN check and comes up with additional identities linked to your child’s number.  

Don’t “Borrow” Your Child’s SSN

Some parents use their children’s credit if their own is bad. Don’t. Even though your intention may be innocent, this plan can backfire. If something goes wrong, your child ends up being the one to pay. And pay. And pay.

Install Anti-Virus Software

This is a simple step that so many of us ignore. Installing software and keeping it current will deter hackers from getting your child’s information.

Don’t Hand Out SSNs or Personal Information

Many forms have a spot for social security numbers when the information isn’t really necessary. When working with schools, recreation centers, summer camps, etc., leave that field blank and ask if there’s another way to identify your child. This advice holds for social media too. Keep information like addresses, dates of birth, and family member names off your profile. If your children have accounts, make sure they do the same. 

Be Careful with Documentation

Don’t carry around your child’s social security number. Memorize it, and leave the documents locked up. If you have old documents with pertinent information that you no longer need, shred them. You can buy a cheap shredder at an office supply store, bring your documents to a professional shredding company, or take a pair of scissors to them.

Report the Breach Immediately

If you have any reason to suspect there’s been a theft, contact all four credit bureaus for a report and place a credit freeze on your child’s records.

Identity theft among kids is a growing concern. It’s creepy to think about strangers—or even worse, family members—using your kid’s identity, but it can happen. Make sure it doesn’t by being aware of the threat and staying vigilant.

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