Undereage identity fraud has come a long way since 1972 when you were 19, in college, and trying to get into a bar to see Black Oak Arkansas with a fake ID.
Now, 50 years later, underage ID fraud has gone as low as it can go. Dangerously close to 2 million children a year in the U.S. (1 in every 40), child identity fraud is rocking the cradle, grade school’ers, and high school’ers alike. With the continuation of data breaches such as National Public Data and AT&T, children’s private data is more valuable than ever.
Considering that kids spend an average of three months of the year online, it's not a question of if, but when criminals will attempt to steal a child's identity. What these kids don’t realize is that once they hand over the most personal of private information – like their Social Security number – they’re setting themselves up for a lifetime of problems.
ConsumerAffairs recently spoke to two identity theft experts to try to put together a quick parent’s (and grandparents’) guide on how to protect their children.
The how
Scammers already have luck on their side, thanks to the extraordinary number of data breaches that are occurring. Things like the National Data or AT&T breaches could easily reveal a kid’s info because it’s tied to their parents'.
On top of that, scammers have several things in their bag of tricks to get a child to fork over personal information. They might send emails, texts, or even call, pretending to be someone they're not. Or they’ll lurk in social media platforms, trying to con children into typing personal information into the system to gain access to a free prize or video game.
Theft within the family isn’t something that anyone wants to own up to, but unfortunately it is a possibility. Oftentimes, family members have easier access to a child's personal information, which they may exploit. In fact, Javelin found that 67% of households with child victims of identity fraud personally knew the people who stole the information.
Another problem is stolen personal documents. There are tons of documents where a child’s information may be printed – school or camp information, team sports applications, etc. If those documents are stolen, the criminal can turn that personal information into credit cards, apply for loans, or get new “synthetic” IDs aka “Frankenstein Fraud.”
How you’re supposed to know
As this reporter found out with their own grandchild’s identity being used to buy diamond necklaces and pay phone bills, there might be trouble brewing if you notice any number of things that include your child’s information.
Dr. Zulfikar Ramzan, chief of Digital Safety and Threat Intelligence at Aura, said that you should keep an eye out for any bills or credit card offers addressed to your little one. Debt collectors calling about your child? That's a warning sign too, meaning someone might have racked up debt in their name.
Let's not forget taxes – “If you claim your child as a dependent on your tax return but get a notice saying they’ve already filed, that’s a serious issue,” Ramzan said. “Similarly, if you get IRS letters claiming unpaid taxes in your child's name, it’s a sign their Social Security number might be misused.
“Finally, if your child is denied credit, student loans, or government aid, it might be because their Social Security number has been used fraudulently.”.
And then, there are credit reports
Credit reports are Social Security goldmines for scammers because they’re the one of the places where SS numbers are often databased. Michael Bruemmer, vice president of Experian Global Data Breach Resolution and Consumer Protection at Experian, told ConsumerAffairs that if someone is concerned that their child could be a victim of child identity theft, there are some important signs they should look out for.
“First, no child under the age of 18 should be receiving a credit offer. If credit offers come in the mail addressed to a child, their information may already be in use by a criminal. On that same note, if a child who has never worked receives a tax bill, or begins to receive calls and notices from lenders or debt collectors, their personal information may have been compromised,” Bruemmer said.
“Lastly, if a child has a credit report with no credit history, someone may have used the child’s personal information to open accounts.”
But a parent can change the trajectory of their kid’s bad luck very easily when it comes to credit reports. Bruemmer says the first call should be to reach out to each credit bureau – Experian, Equifax and TransUnion – to determine if a child has a credit report.
For example, he said that parents with children 14 years or older can access this option via Experian’s minor credit report request form. For children 13 years or younger, however, the parents must write to Experian since the Children's Online Privacy Protection Act restricts the online collection of personal information regarding children.
Protecting your kid’s ID information
Both Bruemmer and Ramzan said that keeping a child’s identity safe is relatively easy, but it’s not a snap-your-fingers thing. You’ll have to do a few things on your own.
Ramzan suggests that you check with the Social Security Administration to see if your child’s SSN has been used for things like taxes or employment. If so, you might need to change their SSN to prevent further issues.
Atop Bruemmer’s to-do list for parents is to freeze the child’s credit report with each credit bureau and contact any companies listed on the credit report to flag the fraudulent account.
Lastly, both suggest that you sign up for identity theft protection and credit monitoring. Services like both Aura and Experian will alert you if your credit card, SSN, or other personal information is at risk. Aura also records the specifics of your case and guides you through initial steps like changing passwords or securing bank accounts to prevent further unauthorized access.