How criminals target children in identity theft scams | Better Business Bureau

Almost one million, or 1 in 80, children were the targets of identity theft in 2021 according to an AARP-sponsored report by Javelin Strategy & Research, many as the result of a data breach. Javelin estimates losses tied to child identity theft were $680 million, which was actually less than the year before. Families spend an average of 16 hours resolving child identity theft vs. nine hours when the victim is an adult.

A child’s identity is particularly attractive to a thief, because the child’s Social Security number and credit history are a clean slate. And the theft may not be detected for years until the child applies for his or her own credit, tries to rent an apartment, applies for a job, or performs another transaction requiring a credit report to be pulled.

Data breaches at schools and medical providers are a common source of information used in child identity theft. The increasing use of social media by children at younger and younger ages exposes them to exploitation by crooks. Even information posted by parents and grandparents can be used by crooks to develop a full profile of a child.

Almost 70% of perpetrators were known to the victim – a parent, other relative or family friend. Safehome.org tells the story of a 19-year old woman who applied to rent her first apartment and found out her credit report showed thousands of dollars in unpaid credit card bills. After her mother died years later, her father was cleaning out the mother’s files and discovered she had stolen her daughter’s identity.

In many cases, the child’s Social Security number is combined with completely phony information to create a brand new identity – known as “synthetic identity fraud.”

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Your child may be a victim of child identity theft if he or she receives:

• Unauthorized credit or loan statements in the mail.

• Collection calls and letters.

• Pre-approved offers for credit or insurance.

One of the best steps you can take to protect your child is to request that each of the three credit reporting agencies – Equifax, TransUnion and Experian –  freeze the child’s credit report (they can create and freeze one if it doesn’t already exist). A lender that can’t access an applicant’s credit record will likely deny a phony application. There’s no cost, but you’ll have to contact each credit reporting agency individually and provide documentation to verify your identity and relationship to the child.

Educate your children (and yourself) about online safety. Monitor their use of social media, be careful what they post there, and be sure privacy settings are restricted to friends.

Be judicious in giving out your child’s Social Security number. Does a childcare center or extracurricular activity provider really need it? If they don’t provide a good reason, consider going elsewhere.

If your child is a victim of identity theft:

• Contact the Federal Trade Commission (FTC) to report the ID theft and get a recovery plan.

• Contact your local law enforcement and get a police report.

• Contact the fraud departments of companies where accounts were opened in your child’s name. Ask them to close the account and send you a letter of confirmation. You may need to provide a copy of your child’s birth certificate and a police report.

Randy Hutchinson is the president of the Better Business Bureau of the Mid-South. Reach the BBB at 800-222-8754.

This article originally appeared on Nashville Tennessean: How to protect your children from identity theft scams | BBB