Social Security numbers are some of the most valuable pieces of data to financial fraudsters. Children have become the fastest growing group of identity theft victims due to their immaculate credit history and often unmonitored financial profiles. Many young people who have had their identity stolen don’t discover the problem until they apply for their first credit card or a college loan after they turn 18. Those impacted have to begin the lengthy process of contesting fraud and may face years of poor credit, which can mean difficulty securing credit, an apartment, or loans.
Do you have a child under 18 years of age? Follow these guidelines to help protect your children’s Social Security numbers so they can begin their adult lives with the pristine credit they deserve.
Keep Social Security Cards Secure
Don’t carry Social Security cards in your purse or wallet, where they can be easily misplaced or stolen. Keep them in a secure location, like a locked filing cabinet, safe, or safety deposit box. Secure any documents that may include your child’s Social Security number.
Detect Identity Theft
There are several signs to look for that might indicate your child’s identity has been stolen:
- You receive bills or calls from collection agencies in your child’s name.
- You are notified by the IRS that your child has paid taxes or that their Social Security number has been used on another tax return.
- You run a credit report on your child’s name and find unfamiliar accounts or charges.
- You or your child has been turned down for government benefits because your child’s Social Security number has already been used.
Respond to Identity Theft Immediately
If your child’s identity is compromised through a stolen Social Security Number or other methods, respond immediately. You may be able to reverse some of the damage by following these steps as soon as you discover fraud:
- Contact the companies where the fraudulent charges have been placed. Follow up your interactions with their fraud departments in writing.
- File a police report. Some companies will not allow you to file a fraud report until you have a police report number. Make sure to give the police as much information about the incident as possible to assist in their investigation.
- Write to each of the credit reporting companies, identify your child, and itemize all fraudulent items on the credit report. Ask the credit reporting companies to remove the fraudulent items on the credit report.
Monitor Your Child’s Credit File
Once a child’s Social Security number has been stolen, they are more vulnerable to future identity theft. There are some precautions you can take to minimize the risk of future abuse or catch it early:
- Place a credit freeze or extended fraud alert on your child’s credit file. If your child does not need regular access to their credit report, you can place a credit freeze on their file. This stops all access to their credit report, but a freeze can be temporarily lifted when you need access to the report. An extended fraud alert still allows creditors to access the credit report, but makes them follow extra steps to verify your child’s identity.
- Periodically request free credit reports to monitor activity on your child’s account. Look for any new or unauthorized charges and report suspicious activity as soon as you discover it.
Protecting your child’s identity by storing their Social Security number in a safe place and verifying that anyone requesting your child’s Social Security number has a legitimate need for it can go a long way to setting them up with a good financial future. If you are in the unfortunate situation of reporting identity theft, responding as soon as you discover it can help minimize the damage to your child’s financial reputation. Carefully document all interactions with companies, credit reporting agencies, and law enforcement to help the fraud reporting process to go more smoothly. Staying aware of your child’s credit report status can help you catch problems early and respond to them in a timely manner.
For more information on Child Identity Theft, one of the leading causes of identity theft, visit the Federal Trade Commission’s Consumer Information website.