Children are becoming an easy target of identity theft not only due to their blank credit files, but because the theft can go unnoticed for years and not be discovered until well into a child’s teens.
PROTECTING THEIR CREDIT
Freezing a credit report is often thought to be the best course of action to protect a child from identity theft. To freeze credit, an individual needs to contact the three credit reporting agencies directly: Equifax, TransUnion and Experian and ask them to create a credit report and then immediately put a freeze on it. This can be an arduous process. Often it cannot be done online. Proof of guardianship will need to be provided with supporting documents. This documentation can include: the child’s birth certificate, social security card, a copy of your own ID, and a list of the last few addresses for the child.
Experian suggests a way of possibly providing better protection may be by not freezing a child’s file. With this recommendation your child doesn’t have a credit report at all. For example, if someone tries to take out a loan in your child’s name, the lender will be notified that the person has no credit report and the individual is a minor. In this case, the lender can notify the authorities and hopefully catch the potential identity thief.
Most importantly, it is recommended to be aware of what information you’re giving and do not over-share. Do not regularly carry your child's documents, like social security cards, birth certificates, or medical forms. Some school, government, and medical programs require a child's social security number. Always ask if it’s completely necessary. Feel empowered to ask "How are you protecting that information?"
Warning Signs Of A Stolen Social Security Number
Know what warning signs to look for that your child’s credit history has been compromised. These signs include:
- An influx of credit card and loan offers addressed to your child
- Being turned down for Medicaid or other government benefits because the social security number has already been used
- An Internal Revenue Service notice that your child didn’t pay income taxes or was claimed as a dependent on another tax return
- Collection calls or bills addressed to your child
- Your child is denied a bank account or driver’s license
