When was the last time you pulled your child's credit report? If you're like most parents, the answer is never. Most parents have their hands full protecting their own credit files and haven't considered the fact that someone could be using their child's social security number.
According to a 2011 report from ID Analytics, approximately 142,000 children are victims of identity theft each year. How are the criminals getting away with using a child's credit? The criminals are aware that many companies aren't required to cross check a creditor's name, birthdates and social security numbers. Therefore, it is easier for criminals to get loans, credit cards and identification in a child's name.
What can a parent do to help prevent this crime from happening to their child?
- Check with all 3 credit bureaus using the child's name and social security number. There should be no active credit files. If there are, alert the bureaus and companies involved of the credit fraud. Then, you should request a credit freeze and fraud alert for your child's credit file. This will be a pain to deal with when the child gets older, but it will protect his social security number from further credit fraud abuse. File a police report with your local police department so that they are aware of the problem and can investigate along with the credit bureaus. The more eyes that are looking at the case could possibly result in criminal prosecution.
- Watch the mail and phone for offers of credit. This is a flag that someone has probably opened some sort of credit file in your child's name.
- Shred all sensitive documents with any social security numbers.
- Make your children understand that they are not to give out their date of birth, address or social security number to anyone without clearing it with you first.
These are just a few of the preventative measures all parents should be aware of and utilizing to prevent your child from falling victim to credit file abuse. Remember, vigilance is the key to protecting your child from criminals whether it be physically or in the cyber world.
If you fail to plan...plan to fail.
Until the next time...
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