Children & Identity Theft

Children & Identity Theft

Child identity theft is on the rise in 2021 and beyond. A recent study from Javelin Strategy and Research suggests that 1.25 million children were the victims of identity theft this past year alone. On average, each instance costs an individual family roughly $1,100 to fix these situations. What’s even more alarming, is that nearly 70% of these juvenile victims were 9 nine years of age or younger.

We spoke to IT & cybersecurity expert Bryan Hornung of Xact IT Solutions about this growing phenomenon, and how families can protect themselves and their children from identity thieves. Check out our video interview or read the full blog below.

What is Child Identity Theft?

Child identity theft occurs when someone fraudulently uses a minor’s personal information, such as their Social Security number, to commit financial fraud or other crimes. Typically, the perpetrator steals the child’s identity to open bank accounts, apply for credit cards, secure loans, or engage in other activities that involve financial transactions.

Why Are Children Increasingly Becoming Victims?

children and identity theft is rising. Prevent it with Shred Nations

Children’s credit often isn’t monitored and can give criminals a longer lead time to establish fraudulent credit. Children’s social security numbers and other PII (personally identifiable information) are traded on the dark web every day. The younger the victim, the higher the price.

In addition, various social media platforms and even gaming platforms are providing new avenues for identity theft. Children can be easily fooled into thinking someone they’ve been interacting with for 15 minutes is now their friend. This can lead to the dissemination of information both inside and outside the platform. It can often take years for these crimes to come to light.

Dangers of Child Identity Theft

Avoid the dangers of identity theft with Shred Nations

The impact of identity theft can affect them for years into the future. Since most children’s credit isn’t monitored regularly, it usually comes to light when a child is old enough to apply for a credit card or loan. It can take as long as seven years or more to rectify this damage. It’s on the consumer to prove that this debt isn’t yours.

Once the theft is discovered, it’s very difficult to fix without the help of an accountant or lawyer. If taxes have been filed fraudulently, hiring a lawyer is almost an inevitability. The IRS can be unforgiving, and requires a lot of proof to fix identity theft, even for adults. These fees can be in the thousands of dollars. Child Identity theft can prevent juvenile victims from eventually obtaining credit, student loans, mortgages, and a whole host of other long-term problems.

What if the Culprit is a Parent?

Shred Nations gives tips on what to do if a parent commits identity theft

Sadly, in some instances, the parent is the culprit of child identity theft. This can make for a particularly uncomfortable situation when the crime is discovered. Bryan says “It’s interesting that you ask that because someone I went to school with had that happen to them. Their father had a gambling problem and used their credit as well as the credit of their siblings. When that person turned 18, credit was not an option for them”.

Bryan went on to say “This is a criminal offense, and should be turned over to the authorities”. It can be a tricky situation because this would likely mean jail time for the offending guardian. “Every family has to handle this their way, and it’s not as black and white as it may seem. The way I look at it, they didn’t care about you when they took credit in your name, so why should you care about them?”

Furthermore, if a child realizes a parent is to blame, it’s usually best to get law enforcement involved. A criminal case makes it much easier to prove that your identity was stolen. Also, having conversations with your kids about finances, balancing a checkbook, and other seemingly basic financial topics are often overlooked.

Ways to Prevent Identity Theft for Your Child

Learn the ways you can prevent child identity theft with Shred Nations

Apply for Your Child’s Social Security Number

First and foremost, apply for your child’s social security number as soon as possible. Some parents wait to do this, and it can cause a lot of problems if a criminal acts first.

Monitor Online Activity

Next, monitor your kid’s online activity. Use parental controls and privacy settings on devices and online accounts. As they get older and start to resist these types of controls, educate them about safe internet practices.

Secure Personal Information

Other factors like securely shredding paperwork relating to your child can also be effective. Slips from the school nurse or field trips can often contain PII that could be jeopardizing. These communications from the school or doctor may seem innocuous, but they can be very damaging. Additionally, store any important documents in a secure location.

Monitor or Freeze Their Credit

Monitor your kids’ credit or put a freeze on it until they’re older. Many monitoring services have these options and you can include them in a family plan while you monitor your own. They’re very inexpensive since kids typically aren’t utilizing credit until they’re older.  These small safeguards can make it harder for criminals to perpetrate their crimes, and might even force them to move on to an easier target.

Shred Nations Has Solutions to Prevent Child Identity Theft

Shred Nations offers several solutions to help you and your family avoid identity theft. From document shredding to IT asset disposition, we offer several services and resources to keep you safe. For free, no-obligation quotes, fill out the form, use the live chat option, or give us a call at (800) 747-3365. We will connect you to service providers in your area that can best meet your needs.