Should I Purchase ID Protection For My Child

Banks Editorial Team · November 16, 2017

Why safeguarding your child’s credit is so important

Is your toddler receiving credit card offers in the mail? Then you may want to think about purchasing fraud protection for the little one who is still in diapers. That’s because more and more young children are having their identities stolen—and it can take years for them or their parents to realize. In fact, the youngest reported victim of identity theft was only 1 month old!

One in 40 families in the United States fall victim to child identity theft, costing more than $24 billion in financial losses, according to the National Conference of State Legislatures. Children are especially attractive targets because they “provide identity thieves with a blank slate from which they can apply for credit and take out loans,” according to Equifax, one of the three leading credit bureaus in the United States.

This form of identity theft can go undetected for many years, until the child applies for credit in his or her own name, or tries to lease a car or an apartment. By this time, the damage may be difficult to unravel, and can have negative consequences for your child for a long time.

Children are also an easy target because many family members and close friends of the family are aware of the basic information needed to open credit in your child’s name, such as his or her birthday and address, and perhaps even the child’s Social Security number.

Here are several action steps that experts suggest to protect your children’s identity from being stolen.

Keep financial documents away from peeping eyes

“Make sure you keep any financial documents related to your children in a safe place,” recommend the folks at Equifax. This includes children’s Social Security cards, medical insurance cards, bank and other financial statements, birth certificates, and passports. Don’t carry them around unless absolutely necessary. Put them in a safe, or file them away in a locked cabinet where guests or visitors cannot access them.

Freeze your child’s credit

You can contact each of the three credit bureaus to place a security freeze on your child’s credit. That will make it difficult for a thief to take out a loan in your child’s name. Some credit monitoring plans, including SmartCredit.com’s Live ID Theft Alerts, enable you to monitor and/or lock your child’s credit.

Limit the personal information shared with schools and camps

Before filling out your child’s Social Security number on school and camp forms, find out whether such information is absolutely required. Take it from those in the know at the Federal Trade Commission: “Ask if you can use a different identifier, or use only the last four digits of your child’s Social Security number.” If the full Social Security number is indeed a must, then ask how the school or camp plans to use your child’s personal information, and what steps will be taken to safeguard this information.

Another good rule of thumb is to check your kids’ credit reports on an annual basis at the same time that you check your own. You can do so by signing up for Smart Credit Report, an interactive way to view your credit history and credit score, and easily fix any errors. Just as you do everything in your power to protect your child, make sure you are safeguarding your child’s credit, too.

Sign up for ID Theft Alerts to protect your entire family

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