Can your child be a victim of identity theft?

Posted by Kim Chen on August 4th, 2016

Written by Ronald W. Gustason, CPA

Most of us know that identity theft is an ever growing problem in the 21st century. It happens when someone uses your social security number or other personal information to open or access bank accounts, make purchases, or get a tax refund. We have all heard or read about the steps we should take if we know or suspect that we have become a victim. But, have you ever considered that your minor children could become victims as well? A child’s social security number can be used by identity thieves to apply for government benefits, open bank and credit card accounts, apply for a loan or utility service, or rent a place to live. And, because of their age, it may be years before they or you discover that their identity and credit has been compromised.

Here are some steps you can take:
• Obtain a credit report for each of your children at le.ast once a year. The report will tell you if your child’s social security number has been used to open any accounts. Each of the three principal credit bureaus will provide you with a free report once every year.

• Find a safe and secure location for all paper and electronic records that contain your children’s personal information.

• Don’t share your child’s social security number unless you know and trust the other party. Ask why it is necessary and how it will be protected. Ask if there is an alternative identifier that can be used such as the last four digits of the social security number.

• Shred everything containing personal information before you throw it out.

• Consider initiating a credit freeze. This tool restricts access to your child’s credit report. Most creditors need to see a credit report before they approve a new account.

While it is probably safe to assume that most minors do not have bank accounts or credit cards for thieves to steal, it is worth remembering that an entire new identity can be created if the thief possesses the necessary information. Fraudulent driver’s licenses are possible. Medical bills can be incurred. Money can be borrowed. Invariably, the thieves have no intention of repaying the debts they have run up using your child’s identity.

For more information, we suggest you visit the Federal Trade Commission at www.consumer.ftc.gov