Is Your Child In Danger Of 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 children are so vulnerable is because they usually have a social security number, but their parents rarely check their credit reports since they wouldn’t expect there to be any need. Problems can rear their hideous 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 Child Identity Theft Occurs
Each 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.
Since most parents rarely, if ever, think of checking their child’s credit report, it’s simple to miss problems that crop up due to identity fraud. And to make the problem worse, the websites that are set up to provide a free annual credit report won’t grant you to check your children’s information. To do so, you need to send a written letter in the mail.
How Child Identity Theft Usually Plays Out
Often the child does not realize that they’ve been a victim of identity theft until many years after the fact. This poses a couple of problems for the new adult in regards to clearing their credit history. Thieves who commit identity theft against children open new accounts and take out loans in the name of the child. Statistics show that it is often much more difficult to clear up accounts that were opened new as compared to existing accounts with fraudulent charges made on them. Secondly, the accounts are frequently many years old and deep into collections by the time the individual becomes aware of the child identity theft. Even if the accounts are paid off after going to collections, the black mark remains from the original lender for many years.
Protect Your Child From Identity Theft
The ideal 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 physicians, 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.