Most parents don’t think about their child’s credit file while their child is young. Parent’s days are filled with ensuring their child’s physical safety and providing emotional support. But with today’s economy making people more desperate and bold, along with the current laws regulating credit, more children are becoming victims of identity theft.
According to a study done in 2011 by Id Analytics, approximately 10 percent of children are victims of id theft or social security number abuse compared to less than 1 percent of adults! Since many companies aren’t required to cross-check a creditor’s name, birthdate and social security number, it leaves the door open for anyone to fraudulently open credit cards, loans and other types of credit in a child’s name. It is up to parents or the child’s guardians to check the child’s credit file on a regular basis. Here are some simple steps to follow:
- Contact the credit bureaus (Equifax, Experian and TransUnion). Ask for a manual search using your child’s name and social security number.
- Watch for credit offers in your child’s name that come in the mail. This is usually indicative that there may be existing credit somewhere and should be a red flag.
- Teach your children that they are NEVER to share information such as birthdates, addresses and social security numbers with anyone outside the family or without your permission.
- Monitor who they interact with via text, social networks and emails.
- If you should find that someone has fraudulently opened credit in your child’s name, file a fraud alert and request a credit freeze immediately with each credit agency. Next, call your local police department and file a report.
- After the credit company and the police have completed their investigation, they may be able to bring criminal charges and prosecute the person who stole your child’s identity. Be sure to ask the court and law enforcement for a certificate of clearance. Be sure it is included in each agency’s files on your child and include a written statement.
Child safety involves more than just a child’s physical safety from child predators and bullies. In today’s technological age, parents have to be vigilant to the cyber threats a child may face when interacting online. With just a little misplaced information, a criminal can wreak havoc on your child’s future credit when they reach adulthood and make their lives difficult. So enlist your child’s help now, to protect their future, by teaching them the importance of information discretion!
