What Is Child Identity Theft?

Child identity theft occurs when someone uses a minor’s personal information, such as their Social Security number, name, address, or date of birth, to open new financial accounts, get government benefits, rent a home, or sign up for utilities. This can negatively impact a child’s credit before they’ve had the chance to build it on their own terms.

How Does Child Identity Theft Occur?

Child identity theft can happen in several ways, including:

• Phishing scams: Thieves use email, phone calls, or text messages to trick you into giving them your child’s personal information.
• Hacking: Hackers infiltrate systems to steal user data. If your child has an account with a company that’s been hacked, their information may be exposed.
• Theft in the family: Family members can take important documents and open accounts in children’s names. Secure your child’s personal documents in a safe space.

What Are the Warning Signs of Child Identity Theft?

Be on the lookout for these signs that your child’s identity may have been stolen:

• Preapproved credit card offers or other correspondence related to credit addressed to your child.
• Correspondence from the IRS related to taxes your child owes when your child has never been employed.
• Contact from debt collectors or lenders regarding unpaid bills in your child’s name.
• Your child has a credit report in their name before they’ve begun using credit.

How to Protect Your Child From Identity Theft

While child identity theft is scary, it is also avoidable in many cases. Take these steps to protect your child’s personal information:

• Limit access to your child’s data: Share your child’s Social Security number only when absolutely necessary and with trusted entities.
• Freeze your child’s credit reports: This prevents new accounts from being opened in their name. You need to freeze their reports with each credit bureau individually.
• Educate your child: Teach them how to spot suspicious activity and the importance of keeping their personal data safe.

What to Do if Your Child Is the Victim of Identity Theft

If you’ve confirmed that your child’s identity has been stolen, take these steps to limit potential damage:

• Freeze their credit file immediately: Contact the major credit bureaus to freeze your child’s credit file and prevent further fraud.
• Contact financial institutions: If an account was opened in your child’s name, contact the bank or credit card company to close the account and get confirmation in writing.
• Secure all personal data: Change usernames and passwords for all online accounts and check for fraudulent emails or messages.
• Report the identity theft: Report the theft to the Federal Trade Commission at IdentityTheft.gov and contact the Identity Theft Resource Center for assistance.

The Bottom Line

Child identity theft is alarming, but it can often be avoided and fixed. It’s important to take precautions to protect your child’s personal information and to educate them about online safety. If identity theft does occur, there are steps you can take to limit the damage and secure your child’s financial future.