Child identity theft is a growing concern in the United States, with nearly a million children falling victim to this crime in 2022 alone. The average cost to households affected by child identity theft is $1,128, and it takes an average of 16 hours to resolve these issues. This problem is costing Americans over $1 billion annually, highlighting the need for parents to take action to protect their children’s personal information.
But why is kids’ personal information in such high demand? The answer lies in the fact that children typically have clean credit histories and no bad credit ratings. This makes them a prime target for fraudsters, as their attempts to monetize stolen identity data are less likely to be blocked by banks or government agencies. Additionally, children are often unaware that their identities have been stolen, as they are not accustomed to regularly checking their bank accounts or credit reports. This means that scams can go unnoticed for extended periods of time.
One technique that fraudsters use to exploit children’s identities is synthetic fraud. This involves combining real and fake personal data from various sources to create a new identity with a clean credit history. Child identity data is crucial in this process, as it helps ensure that the fraudulent identity appears legitimate.
So how do criminals steal children’s personal information? The methods are similar to those used to compromise adults. Phishing is a popular method, where individuals are tricked into clicking on malicious links or providing personal information under false pretenses. Another way children’s information is compromised is through third-party breaches, where data breaches expose personal information without the child’s knowledge or fault. Child identity data can also be obtained through account takeovers, social media oversharing, familial fraud, or even physical theft.
To protect their children’s identities, parents can take several precautions. Avoid oversharing personal information about children on social media, as this information can be used against them in future scams. Be vigilant about monitoring unusual activity on your child’s accounts, such as bank or phone accounts. Consider implementing a credit freeze for your child with the three major US credit bureaus, which will prevent banks and other providers from issuing loans or credit in your child’s name. Keep all devices updated with the latest security patches and anti-malware software. Educate your children about the dangers of oversharing on social media, phishing attacks, and identity theft. Limit the number of accounts or services your child signs up for and provide your own details whenever possible.
It’s also important to be aware of the warning signs that your child’s identity may have been stolen. If unusual or unexpected bills or statements arrive addressed to your child, if welfare benefits are denied or IRS letters demanding taxes are received in your child’s name, if bank account applications are rejected due to a poor credit history, or if collection agencies start calling asking to speak to your child, these could be red flags that something is wrong.
In the worst-case scenario that your child’s identity has been stolen, it is crucial to take immediate action. Get a credit report for your child and freeze it if there are any signs of fraudulent activity. Report the incident to the Federal Trade Commission (FTC) and the police. Notify all three credit bureaus and any organization where your child’s information has been used to open fraudulent accounts, asking them to close the accounts and confirm in writing that your child is not responsible for them.
While child identity theft is a concerning issue, taking preventative measures and staying alert to warning signs can help mitigate the risks. It is essential for parents to be proactive in protecting their children’s personal information in today’s digital age.