Child Identity Theft

Identity theft. It’s a concern we all worry about. That said, recent trends are indicating that the person(s) in the home with the least amount of credit is actually becoming a criminal’s most appealing target. That’s right, children are now rising up in the ranks and their identity is becoming a sought after possession.

At Crime Stoppers, our Safe Community Program focuses on crime prevention education. Here is what you need to know now about identity theft and children.

Identity thieves are savvy individuals and their ability to continually find victims is alarming. A recent survey by the Bureau of Justice Statistics stated that victims reported losing a total of $24.7 billion in direct and indirect costs due to identity theft in 2012. That same year, losses reported from all other property crimes (burglary, theft, motor vehicle theft) totaled $14 billion. The overall cost of identity theft to the US economy annually is estimated to reach $100 billion.

Victims of this type of crime suffer tremendous damages including loss of property, loss of money, and loss of time as they work to repair their credit. There is also the fear and angst that comes with not knowing how else and what else your information has been used to secure or obtain.

But this crime is even more horrific when the victim is a child. Why a child, you might ask? After all, they have no credit and no cash. Exactly! And they’ll have no idea that someone has stolen their Social Security Number to apply for credit, buy homes, cars and secure credit cards – until this innocent child turn about 18 years old and needs to start applying for items him/herself.

The reality that no one will be challenging the information for sometimes a decade or more makes children an ideal and growing target. In fact, in 2013, among the 16.6 million consumers whose identities were stolen, a growing group was children. According to the Identity Assistance Center and the Javelin Strategy & Research group, one in 40 families with children under 18 had at least one child whose information was comprised (2012).  That same study revealed that 17 percent of children were victimized for one year or longer. We know those numbers have grown dramatically in the past two years.  

So, how would you ever know that your child’s identity has been compromised? Here are some red flags:

1. You receive bills from credit card companies or medical providers concerning a child in your home that has never applied for a credit card or had extensive medical procedures.
2. You receive calls from collection agencies for a debt apparently attributed to your child.
3. Your child is denied government benefits because another account exists with your child’s Social Security number.
4. You receive requests from the Social Security Administration, Internal Revenue Service or some other government agency seeking to confirm that your child is employed, even though your child has never had a job.
5. You receive notification from the IRS saying your child has failed to pay taxes on income s/he has never received.
6. You receive notification from the IRS that your dependent child is already listed on another tax return.
7. As we learn more about child identity theft, we know that many of these children’s identities are stolen by family members who are in need of cash or credit and have easy access to the child’s personal information. That said, we know of many other cases in which there has been absolutely no connection between the child and the thief.

Clearing even a child’s record can take decades and delay college attendance, affect getting a job, an apartment, a credit card, car and so much more. Take proactive steps to protect your children today:

1. Find a safe location for all paper and electronic records that show your child’s personal information.
2. Don’t share your child’s Social Security number unless you know and trust the other party. Ask why it’s necessary and how it will be protected. Ask if you can use a different identifier or use only the last four digits of your child’s Social Security number.
3. Shred all documents that show your child’s personal information before throwing them away.
4. Be aware of events that put information at risk. For example, if there’s an adult in your household who might want to use a child’s identity to start over; you lose a wallet, purse or paperwork that has your child’s Social Security information; there’s a break-in at your home; or a school, doctor’s office or business notifies you that your child’s information was affected by a security breach.
5. As with anything else, Crime Stoppers always seeks to be proactive, especially when it comes to our children. Guard your child’s identity in the same manner in which you guard his/her physical safety.

As a good exercise, check whether your child has a credit report close to the child’s 16th birthday. If there is one — and it has errors due to fraud or misuse — you will have time to correct it before the child applies for a job, a loan for tuition or a car, or needs to rent an apartment. Be safe, be sharp and proactively work to protect your children. You’ll never regret doing so.