Is Your Child A Target For Identity Theft?
Identity theft gets a lot of attention these days but child identity theft is hardly ever mentioned, in spite of it being one of the quickest growing areas. One of the reasons kids are so vulnerable is because they usually have a social security number, but their parents rarely check their credit reports since they wouldn’t anticipate there to be any need. Problems can rear their ugly head years later when the child is grown up and applies for a loan or a credit card. Suddenly, the problem from years earlier shows up and their application is declined.
How Childrens’ Identities Are Stolen
Every child born in America is issued a social security number, which the parent often has to obtain for health insurance and tax purposes. In the course of taking the child to the doctor, registering for school, signing up for sports, and filing taxes, the child’s social security number is spread out all over the place. While the government is busy making changes to protect adults from identity theft, a child’s social security number is still the number one form of identification at school and at medical offices. This makes each child a target for identity theft.
Furthermore, few parents even think about checking their child’s credit report since the child isn’t using any credit until they’re about eighteen years old. Even adults who recognize the importance of monitoring their own credit history, and do so faithfully, ignore the need to keep tabs on their children’s credit reports. Meanwhile the government urges individuals to monitor their own credit without mentioning that they should do the same for their children under 18. Most disturbingly is that the websites set up to provide free annual credit reports don’t allow you to view your children’s records. You must send a letter through the mail in order to gain access to this information.
How Child Identity Theft Usually Plays Out
It’s usually a number of years before there’s any sign of a problem, often not until the child reaches adulthood and starts applying for credit themselves. There are a couple of things that create real problems here. First, it’s often much harder to clear your record of bad accounts that were opened new as it is to clear problems with accounts that existed prior to the fraud. Second, by the time these issues are noticed, the accounts are often many years overdue and have long since been handed over to a collection agency.
How To Protect Your Child From Identity Theft
The best way to protect your child from identity theft is to routinely monitor their credit report annually. It is also a good idea to avoid giving out your child’s social security number except when it is completely necessary. Only the IRS, and in some cases your doctors, have the right to demand your child’s social security number. Additionally you should never carry your child’s social security around with you. Memorize the number and leave the card at home.