Protect You and Your Child from Identity Theft

Article by BPBS attorney Joseph Jaap, 513-533-2037

In addition to Adult Identity Theft, Child Identity Theft is a growing problem in the US. It can cause serious problems when the time comes to get a college loan, car loan, apartment, or a first job.

It happens more often than you think. A recent study determined that one child in every classroom already has someone fraudulently using that child’s social security number to obtain credit cards, home and car loans, utilities, or employment. Almost 12% of the victims are under age 6, and 30% each in the age groups of 6 to 10, 11 to 14, and 15 to 18. The average fraudulent debt per child victim is $12,700.

The study was conducted for Debix, an identity security and credit fraud prevention company, during summer 2008, among children under age 18. The results showed that 5% had their Social Security number being used fraudulently, with 3% being the victims of outright identity theft, and 2% being the victims of “identity contamination,” in which their SSNs had been used to obtain employment or credit that resulted in adverse entries in the child victim’s credit history.

Identity contamination has the same adverse impact on a child’s credit history as identity theft. It is just as time consuming to correct and repair for a child as it is for an adult.

FBI statistics report that over 8 million Americans are victims of identity theft annually. Losses exceed $50 billion, and many of those victims are children. Children are a growing category of victims since their identities typically can be used undetected until age 18. That makes their personal data very valuable to criminals.

Child identity theft may not be discovered until they apply for a college loan, a car loan, an apartment, or a first job. The damage can take months to repair. Sometimes it can cause significant disruption to plans and opportunities.

There is no system in place to alert banks, employers, or the credit reporting agencies that a Social Security number belongs to a child. You must be proactive to protect your child’s identity and credit history.

If you have questions, contact Joseph Jaap at BPBS, or your BPBS attorney.

Here is a checklist to help protect your child’s identity.

Checklist to Reduce Child ID Theft

  • Check a child’s credit report annually with each credit reporting agency. Each person is entitled to one free credit report annually from each of the credit reporting agencies. Stagger obtaining the free report so that you obtain one report every few months to improve the chances for early detection of fraudulent activity.

    There are many imposter web sites offering “free” credit reports. Don’t be fooled. Use the following link to the Federal Trade Commission web site to obtain your child’s free credit report.
    http://www.ftc.gov/bcp/conline/edcams/freereports/index.html
  • Shred all financial documents, account statements, insurance records, credit offers, and any other papers with personal identifying information.
  • Carry only the minimum amount of a child’s personal identifying information with you, and memorize the child’s Social Security number rather than carry it with you.
  • Limit sharing your child’s personal identifying information, such as date of birth, Social Security number, and other personal data on forms and records for school, church, doctor, dentist, sports teams, scouts, and other organizations that have no need for that data.
  • Explain to your child not to share Social Security number and other personal data with others, such as “free” credit card offers on campus for a “free” t-shirt or other offers. Warn them to be especially careful not to give such information over the Internet.
  • Apply a “Credit Lock” on the child’s credit file with each of the credit reporting agencies which then will require positive verification before any credit transaction can be conducted.