Is Your Child At Risk 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 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 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 every 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 are 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 do not allow you to view your children's records. You must send a letter through the mail in order to gain access to this information.

Results Of Child Identity Theft

It's usually several years before the problem appears, often not until the child has reached adulthood and starts applying for a loan or credit cards. And there are a couple of things that can make the problem even worse than the average identity theft. First, because these accounts were opened as new ones, and not existing ones that were taken over by fraudsters, it can be a lot more difficult to clear them from your record. Second, by the time these issues come to light the debts are long overdue and have been in collections for a number of years.

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 absolutely 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.