Identity theft isn't just an issue for adults; children are increasingly becoming targets as well. Between July 2021 and July 2022, 915,000 children were victims of identity theft, according to a study by Javelin.

Children's Social Security numbers (SSNs) and clean credit histories are appealing to identity thieves, who can use them to open credit accounts, take out loans, and commit other fraudulent activities. As a parent, it is crucial to be vigilant and proactive in protecting your child's identity.

Here’s how to do it.

Signs your child might be a victim of identity theft

Identity theft can go unnoticed for years, especially for children whose credit history is not checked until adulthood. However, you can spot warning signs early.

• Unexpected mail: Receiving pre-approved credit card offers, bills, or collection notices in your child’s name can be a red flag.
• Issues with government benefits: If your child is denied government benefits because their SSN is already in use, it could indicate identity theft.
• Tax issues: The IRS's notification that your child owes taxes or that their SSN was used on another tax return is a significant warning sign.
• Credit reports: Finding that your child has a credit report, especially with accounts or debts, indicates fraudulent activity.

Preventing identity theft

Avoiding identity theft requires a proactive and comprehensive approach to safeguard your child's personal information. Here are some essential steps to take:

Protect personal information

• Secure storage: Keep your child’s Social Security number (SSN), birth certificate, and other sensitive documents in a safe or locked drawer.
• Limited sharing: Only share your child’s SSN when absolutely necessary. For example, it's often required for government forms or some medical records, but always ask why it is needed and how it will be protected.
• Shred documents: Shred any documents that contain your child’s personal information before disposing of them.

Educate your child

• Online safety: Teach your child the importance of protecting personal information online. Explain the risks of sharing their full name, address, SSN, or other identifying details on social media and other online platforms.
• Phishing awareness: Educate your child about phishing scams and how to recognize suspicious emails or messages that ask for personal information.

Monitor accounts

• Credit reports: Regularly check your child’s credit report through the major credit bureaus (Equifax, Experian, and TransUnion). Children under 18 typically shouldn’t have a credit report unless identity theft has occurred.
• Credit freeze: If your child has a credit file, consider placing a credit freeze on it. This prevents new accounts from being opened in their name and can be easily lifted when they need to apply for credit in the future.

Secure devices

• Up-to-date security: Ensure all devices your child uses have up-to-date security software, including antivirus programs and firewalls.
• Strong passwords: Use strong, unique passwords for all devices and accounts. Consider using a password manager to help generate and store complex passwords.
• Multi-factor authentication: Enable multi-factor authentication (MFA) wherever possible. This adds an extra layer of security by requiring an additional form of verification (e.g., a code sent to your phone).
• Parental controls: Utilize parental control settings on devices and apps to monitor and restrict your child’s online activity. This can help prevent them from inadvertently sharing personal information.

What to do if your child is a victim

Discovering that your child’s identity has been stolen can be overwhelming, but taking swift and decisive action can help mitigate the damage.

1. Report to authorities: Immediately report the identity theft to the Federal Trade Commission by visiting IdentityTheft.gov. Create an identity theft report and follow their recommended steps.
2. Contact credit bureaus: Contact the three major credit bureaus to inform them of the identity theft. Request that they place a fraud alert and consider freezing your child’s credit file.
3. File a police report: Go to your local police department to file a report. Provide as much documentation as possible, including any evidence of identity theft.
4. Notify institutions: Contact companies or financial institutions where fraudulent accounts in your child’s name were opened. Inform them of the identity theft and request the accounts be closed or the debts be cleared.
5. Review and monitor: Regularly review your child’s credit report to ensure no new fraudulent activities occur. Continue to monitor for any suspicious activities or signs of identity theft.

Protecting your child's identity requires vigilance and proactive measures. By being aware of the signs of identity theft, taking steps to safeguard personal information, and knowing what actions to take if identity theft occurs, you can help secure your child's financial future.