Child Identity Theft
Your four-year-old might be too young to drive a car, but that doesn’t mean he never bought one. Unfortunately, now his credit is so bad, even long after he is old enough to drive a car, he won’t be able to buy another one.
That’s the beauty of child identity theft; a thief can use a child’s identity for years before anyone notices there’s a problem, and by that time, the thief is gone and the trail is cold. The Federal Trade Commission estimates there are 400,000 victims of child identity theft every year. Other sources claim there are many more victims whose cases just haven’t come to light yet.
How could it happen?
Think of how many times you’ve been asked for, and given, your child’s Social Security number: the pediatrician’s office, the day care center, the emergency room, his elementary, junior high and high school, athletic coordinators, after-school programs…any of them could have failed to protect your child’s personal information. Or an employee in an office somewhere could have written it down and sold it.
Your child could have given it out online or over the phone.
Sadly, child identity theft is usually perpetrated by a parent or another member of the child’s family. Parents who get in a financial jam take out credit cards in their kids’ names to make ends meet. Thinking they’ll be able to pay the money back before the child needs it, their identity theft can be rationalized as a victimless crime.
The warning signs
Credit card offers in the mail may seem like common fare to you, but if your child starts receiving them, it could mean trouble. Credit card offers are made to people who already use credit; if your youngster is being offered a credit card, it probably means there’s a credit account in his name, somewhere.
Worse yet, bill collectors may start dunning your child by mail or phone. Don’t assume it’s a simple clerical error. Ask that they send you all pertinent documentation.
Request your child’s credit report. The only acceptable response is “no record exists.” Any other response means somebody has used your child’s identity to obtain credit.
How can you prevent child identity theft?
Don’t give out your child’s Social Security number just because someone asks for it; always ask if it’s essential. If it is required information, ask how the agency or company that’s using it will protect if.
Don’t carry Social Security cards in your wallet—yours or your child’s.
Don’t let your child have or give out his Social Security number until he’s old enough to understand how important it is. Until that time, if he asks for it, find out who needs it and why, and then contact them yourself.
Request your child’s credit report at least once a year.
Tags: Child Identity Theft, LifeLock