Child identity theft: How it occurs and how to prevent it

What is child identity theft?

Child identity theft is a type of identity theft that occurs when a criminal uses a minor’s personal information, such as their name, date of birth, or Social Security number, for financial gain. Creditors don’t verify the person’s age, so identity thieves can use your child’s data to create fake bank accounts, make payments, take out loans, and even apply for government benefits.

Worst of all, fraudsters can abuse the child’s identity for a long time without anyone noticing. Unless the child applies for a loan or a parent wants to help them build up their credit card rating early, their child’s credit card history will likely stay untouched for years.

Another reason making minors particularly vulnerable is the fact that they’re, well, children. They’re more susceptible to social engineering attacks, and they can’t protect themselves from the adults in their lives. In fact, about 73% of child identity theft victims knew the people who stole their identity.

How does child identity theft happen?

Sadly, a child can become a victim of identity theft in many ways:

• Data breaches. A common way sensitive information falls into the hands of identity thieves is through data breaches. If a service storing the child’s sensitive information suffers a cyberattack, hackers might use the information themselves or sell it on the dark web. Educational institutions are often a major source of these leaks. Often underfunded and overworked, the high school or kindergarten staff may not have sufficient resources to properly secure a child’s Social Security number and other personally identifiable information.
• Family and friends. People who most commonly steal a child’s information are their relatives or family friends.
• Pickpocketing. If a child is old enough to carry around a wallet or an ID, the danger is that someone can steal it.
• Phishing and social engineering. With children spending more time online, phishing and social engineering are becoming significant problems. A child can be tricked with a promise of some game points if they click on a link, or they can let information slip during an in-game conversation. Children are often less aware of the dangers of phishing, malware, and app tracking.
• Online activity. Fraudsters can access your child’s information through you, so protecting your kids also means protecting your data privacy. For example, be mindful of the websites you visit every day, especially chat rooms and social media platforms. Billions of users use social media every day and rarely ask themselves whether platforms like Facebook or TikTok are even safe.
• Synthetic identity theft. Synthetic identity theft occurs when an identity thief uses real and fake information to create a new identity, often using a child’s Social Security number.
• Mail theft. Another way criminals can access personal information is through your physical mail. Make sure your mailbox is secure, and if you notice that expected documents haven’t arrived, pay attention. Opting for digital statements instead of paper can also reduce the risk of mail theft.

What are the signs of child identity theft?

Here are some of the signs of child identity theft:

1. Unexpected bills. If your child receives credit card offers, credit reports, or bills to be paid, don’t write them off as junk mail.
2. Collection calls or notices. If you start receiving calls or letters from debt collection agencies, don’t dismiss them as simple errors. It may indicate that someone has used your identity to open credit accounts or loans in your name, which are now overdue.
3. Denied government benefits. Unfortunately, this sign usually comes later in their life, when they start to take the first steps into adulthood. If your child applies for financial aid or health care coverage but gets denied, someone might have used their identifying information for their own gain.
4. Issues with the IRS. Receiving a letter from the IRS addressed to your child is a major red flag. If the notice claims your child owes income taxes, someone has likely used their Social Security number for employment. Similarly, if you’re told that your dependent has already paid taxes, it’s another sign of identity theft unless they’ve had income you’re unaware of.
5. Strange mail addressed to your child. If you keep receiving flyers, junk mail, and even magazines addressed to your child, it could indicate that your child’s personal information has been leaked.
6. Problems with your bank. Unexpected problems opening a bank account or applying for a loan can be a sign of identity theft. Don’t hesitate to contact your bank for more information.
7. Alerts from identity theft protection services. If you’re signed up for identity theft protection services, they can alert you if your personal information is being misused. Even a trusted VPN can go a long way. For example, NordVPN’s Dark Web Monitor can check if your data has been leaked online, while Threat Protection Pro™ helps you avoid various scams and malware online.

What to do if your child is a victim of identity theft

Finding out you or a loved one is a victim of identity theft can be terrifying. However, you can take some steps to minimize the damage.

Contact the credit bureaus

First, contact the major credit bureaus — Experian, TransUnion, and Equifax. Get as much information as possible about your child’s active credit card reports and ask them to investigate.

You should also ask them to remove any fraudulent accounts and block access to your child’s credit report, which should help prevent fraud cases in the future.

Report to the Federal Trade Commission (FTC)

If your child is under 16, it’s essential to report the identity theft to the FTC and ask for a credit freeze. The scammer then won’t be able to use your child’s credit report anymore. Also, an FTC agent will help you take steps to respond to fraud and guide you through creating a personalized recovery plan.

Notify companies where fraud occurred

The next step is to contact the companies where the fraud has occurred, such as a bank that issued the loan. You should explain the situation, inform them that your child is a victim of identity theft, and request an investigation. These companies should be able to remove the fraudulent charges and close the accounts.

File a police report

Once you have secured your accounts and informed companies to prevent new fraud cases, you should file a police report next. At this point, you’ll likely have a lot of information about what happened and will be able to explain the situation clearly. You’ll need to present any evidence you have, such as account statements and emails to the FTC.

Identity fraud investigations take time, but filing a report and presenting all the information you have will help speed up the process. Not to mention that a police report may even be necessary when working with financial institutions to resolve your child’s identity theft cases.

Monitor credit and identity

It’s also important to continue monitoring your child’s credit to ensure that fraud cases do not repeat. Regularly check with the credit bureaus to see if new accounts are being opened under their name, and consider using an identity theft protection service that can send you alerts if any suspicious activity is detected.

Secure personal information

Securing your child’s personal information is vital to preventing identity theft in the future. Store important documents like Social Security cards, birth certificates, and medical records in a safe location and opt for digital statements whenever possible.

How to protect your child from identity theft

Educate yourself

If you don’t know much about internet security, start with the basics and learn how to protect your family online. Scams rarely change, so staying updated on emerging cyber threats will help you know what to expect.

Teach your kids

Start with the basic rules of netiquette — what’s appropriate and inappropriate online. Then, move on to digital threats. Teach them about the types of hacking they might encounter and the importance of cybersecurity.

Use strong passwords

Let’s be honest — very few kids will spend their device time creating unique passwords for their accounts. It’s best to show them how safe and convenient using a password manager is. With a few clicks, you have a strong password — and you don’t even have to remember it. In fact, whenever you visit a website, a password manager will fill in your credentials for you.

Use multi-factor authentication (MFA)

Enable MFA on all accounts that support it, especially those of your children. This way, someone with your password can’t access your accounts — they would also need your device as a secondary verification.

Invest in anti-malware software

You and all of your family members should have malware protection — it alerts you if your device is infected and helps remove malicious software. Your device probably already comes with some anti-malware security but if there’s a security company you trust, purchasing additional protection can’t hurt.

Use a VPN

A virtual private network (VPN), such as NordVPN, adds a layer of protection by encrypting your internet traffic and changing your virtual location, allowing you to use the internet with more privacy and security. But NordVPN’s premium features can do so much more. For example, Threat Protection ProTM prevents trackers and ads, detects malicious websites, and checks files for malware during download, helping you and your kids avoid online scams.

On the other hand, the dark web monitor scans the darkest corners of the web and alerts you if your credentials are found in an illegal marketplace.

Keep your child’s personal information in a secure place

Store your child’s personal documents out of sight, ideally in a safe. Remember, identity theft is often carried out by the people we know. A Social Security number can be used for identity confirmation, financial transactions, and other legal matters. Here’s what you should do if you suspect someone you trust has your Social Security number.

Avoid sharing your child’s Social Security number and birth certificate

Avoid sharing your child’s Social Security number and birth certificate. Even if a form for school asks for this sensitive information, leave it blank. If the institution insists, ask how the information will be stored and where it will be used.

Limit what websites and services your child can use

Use content filters to restrict specific websites and apps on your child’s devices. Consider implementing parental controls or learning how to lock phone screen for kids if they are very young. Open conversations about internet safety work better for older kids.

Make sure you protect their identity as well

No matter how old your kids are, sharing their pictures, name, or age online is rarely a good idea. If you want to share pictures and videos of your children, it’s better to send them personally or set up private family albums. Also, make sure you have the strictest privacy settings on your and your family’s social media accounts — you never know who might be spying on you.

Moving forward: Protect your family in the future

Identity theft is a serious issue, but it can be managed and corrected by taking the right steps. While the experience can be stressful, it’s important to remember that credit scores can be repaired and financial issues resolved. Focus on staying proactive, learning from the situation, and taking the necessary steps to protect your child’s identity in the future.

By being more cautious online and securing personal information, you can safeguard your family from similar risks going forward.