Does your child have a bad credit score? It could happen and you may not know about it until it’s too late.
Cases of identity fraud have landed some kids in debt and in collections before they even reach the age of 18.
A Javelin Strategy and Research study published in November 2021 estimates child identity fraud affects one out of every 50 kids annually.
The study also found that in nearly three-quarters of those cases, the victim knew their perpetrator.
“The stories of child identity theft are absolutely heartbreaking because these are young people that are trying to launch,” said Eva Velasquez with the Identity Theft Resource Center (ITRC).
The nonprofit ITRC warns with just a few data points – a child’s full name, social security number, and date of birth – a thief can make a few changes, apply for a credit account, and start spending.
“All of a sudden the thief is building up this credit file for this minor,” Velasquez said.
While adults who monitor financial records may catch a problem quickly, child identity fraud can go undetected for years.
And those problems can take time to untangle, unless parents follow some crucial steps.
Helpful Steps For Parents to Take and Red Flags To Look Out For
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One of the first steps for parents to take is to find out, does your child have a credit file?
The place to turn for those answers is the three credit bureaus: Experian, Equifax and TransUnion.
“As a parent or legal guardian, check your child's credit report or request one for free to make sure that nothing's happening,” said Experian spokesperson Rod Griffin.
Parents can learn more about how to find out if their child has a credit report at this link here.
In order to get a copy of a credit report for a child, parents will need to fill out paperwork to prove they have a right to that information.
If the child is under the age of 16, parents can also place a freeze on their child’s credit report at each of the three credit bureaus.
Here are links to instructions for freezing a minor’s credit file at Experian, Equifax and Transunion.
Parents must fill out a freeze request and send it, along with copies of their child’s birth certificate and Social Security card, by mail.
While that may sound risky, Velasquez believes it’s riskier to have a child’s identity information vulnerable to hackers.
“I understand some parents are leery of sending paper documents through the mail, and that's a valid fear, but I'm more concerned about the child's identity credentials already being out there in the wild, which they very likely are, and trying to reduce that risk surface by freezing the credit,” said Velasquez.
There are other safeguards parents can take.
The Federal Trade Commission says parents should question any form or document that asks for personal information about their child.
Studies show people you know could pose a risk. That’s why advocates recommend not oversharing information about your child on social media, and to monitor what children share online, as well.
There are also red flags to look out for.
Velasquez said parents should act quickly if they receive collections letters, bills, credit card offers or other personal financial correspondence in their child’s name.
Don’t assume it’s a clerical error.
“It could just be a mistake, but you won't know until you follow up. The sooner you catch these problems, the easier it is to address,” said Velasquez.
The Identity Theft Resource Center offers a helpline to walk consumers through steps they can take, if they believe their information, or their child’s information has been breached.
The Federal Trade Commission also has information about identifying and preventing child ID theft here.
If you’re the victim of identity theft, you can report it to Identity Theft.gov here.
