For those who think only adults can be targeted for identity theft, here’s the reality: Children can have their identities stolen, too. In fact, children are among the most vulnerable targets for identity theft. Frequently (up to 54 percent of the time, according to the Identity Theft Resource Center), the victim is under 6 years of age. Sometimes, it’s a family member or friend of the family who does the stealing. And in most cases, it’s a crime that isn’t even detected for years.

The way it usually works is that the criminals use the child’s Social Security number to open lines of credit; after all, that number is all that’s needed to steal an identity. The crooks eventually leave the child’s credit history in shambles. The child probably won’t know any of this, however, until he or she decides to open his or her own credit line as an adult, at which point the credit report will already show the damage (which might have accumulated over 10 or 15 years). In short, the child begins his or her adult life with lots of debt that they had nothing to do with acquiring. Not a great way for a child-turned-adult to start experiencing grown-up finances! Other ways that this problem can materialize before adulthood include collection agencies calling or sending letters regarding accounts that the child allegedly opened, or even a 16-year-old being told at the Driver’s License office that another license already exists with their Social Security number.   

It’s hard to tell how widespread this problem is, since most identity theft reports don’t track it. “We don’t ask for age in our identity-theft surveys,” said Claudia Bourne Farrell, spokeswoman for the Federal Trade Commission (as quoted in the Dallas Morning News). “Our self-reported, anecdotal data indicates that about 5 percent of the complaints last year were for people 18 and under.” It’s possible that the actual number of identity thefts involving children is higher, since many victims don’t learn about and report the theft until they are no longer minors.

Shouldn’t the credit card company know not to give credit to someone who is using a minor’s Social Security number? Not necessarily. Credit issuers don’t usually check the age of applicants for accuracy. It’s difficult to verify things like age on a credit application, so much of the information given on those applications is simply assumed to be correct.

So how can we protect kids from identity theft? The responsibility lies, of course, with the parents. First, parents need to make sure that all sensitive documents concerning their children (such as Social Security cards) are filed away safely and securely. Parents should never carry those numbers around with them. If anyone asks for the child’s Social Security number, the parents must ask why it is needed and whether another piece of information can be substituted.

Second, parents need to be vigilant in protecting the child’s information; for example, if they open a bank account or college fund for their child, they must tell the bank to remove the child’s name from any mailing lists. 

Third, the parents must be observant and watch for the possible signs of identity theft, such as the child receiving credit card offers in the mail (some of these offers are just age-unaware marketing, but they can also be indicative of something far more sinister). If the child does receive such offers, or if parents simply want to be thorough in their protection, they should check their child’s credit report to make sure there’s nothing on it. This doesn’t apply if, for example, a parent puts a teenage child on their credit card for spending purposes, but in general, minors don’t have a credit history because they don’t have any activity on their record.

If a parent looks into the child’s credit history and actually FINDS activity, what should he or she do? First, ask to have all of those fraudulent accounts removed from the report. This may mean going through the dispute process with the credit companies. Once the credit issuer learns that the account is in a minor’s name, they will usually cooperate with fixing the problem. Also, report the identity theft to all three of the credit reporting bureaus: Experian, TransUnion and Equifax (for Equifax, you can write directly to their Minor Child Department at P.O. Box 105139, Atlanta, Georgia 30348).

The ideal situation, of course, is to prevent any problems before they arise. Aside from the need for parents to be vigilant in protecting their children’s information, parents must also teach children not to give out sensitive information online or over the phone. Children frequently don’t grasp the importance of maintaining privacy and security, especially when it comes to information that they don’t entirely understand. When I was 13, I knew my Social Security number, but I also probably would have told anyone who asked me what it was. I didn’t know how important it was to my financial future. I’m just lucky that no one ever asked.

Side note: Sometimes, the parents are the ones who steal the child’s identity. Contrary to popular belief, this is not a case of family law. If you know or suspect that someone is using their child’s identity for credit purposes, report the case to the police immediately. A police report is necessary for credit companies to take the case seriously. Cooperate with any investigation, as well.

Sources for this article: The Dallas Morning News, FraudGuides.com, ConsumerAffairs.com, Identity Theft Resource Center