Most adults have been warned about the dangers of identity theft. Specifically, if you're not careful with your personal information, somebody could steal it—like your Social Security or credit card details—to pretend to be you and commit fraud. Fraudsters could take out a personal loan in your name or even purchase expensive medical care with your insurance.
But have you ever considered the possibility of your children's identity being stolen? In the United States, almost 1 million children had their identity stolen in 2022,1 costing American families approximately $1 billion annually.2
It can be hard enough to build and maintain a good credit score. If you'd like your kids to reach adulthood without facing a dumpster fire of a credit history, it's important to protect their identity. You absolutely can protect your kids from identity thieves, but it helps if you know what to look for.
Signs of Identity Theft in Children
Fortunately, the signs of identity theft can be easy to spot. If you see any of the following, take action (more on that later).
Unusual financial activity
If your child has a bank account or credit card, keep a close eye on their financial activity. If you notice any unusual transactions or credit-related activities in their name, such as unfamiliar charges, bills or credit inquiries, it could be a sign of identity theft. Regularly checking their bank statements and credit reports can help you catch and address any suspicious financial behavior early on. You'll want to alert your bank ASAP.
Bills or collection calls
If you're getting notices or calls from collection agencies for unpaid debts in your child's name, this is a giant flashing neon sign that there is a problem.
Incorrect personal information
Typos are one thing, but if you come across health information on a bill or talk to your doctor's office and learn that your child's medical history is simply wrong, it could be an ominous sign of identity theft. Of course, if your child has a similar name as another child, it may be an innocent mix-up. Either way, talk to your insurer and medical provider to clear up the issue.
How to Prevent Identity Theft in Children
Here are a few tips to help you safeguard your children's personal information.
Monitor your child's online presence
Keep an eye on what your child does online. Regularly monitor your child's online presence by setting privacy controls on social media accounts, educating them about responsible internet behavior and engaging in open conversations about the importance of not sharing sensitive personal information online. Keep an eye on their friends, their followers and the content they interact with to ensure a safe and secure digital environment.
For instance, if your child wants to buy a new game online, you may want to handle the credit card information yourself or watch them input it so you can step in if something goes wrong. If your kid is going to buy something that a game is offering, it should be from the game's official website and not a third-party website, which could be run by cybercriminals.3 Also, talk to your child about the importance of creating strong passwords to prevent hacking.
Regularly check your child's credit report
Make sure to check your kids' credit reports each year, even if they don't have much credit history. You can request a free credit report at AnnualCreditReport.com, a website run by the three major credit bureaus. If you spot anything strange, act quickly to fix it and keep their money safe.
Talk to your kids about their online life
You ask them how things are going at school, so why not ask if they've read or seen anything interesting online? You wouldn't let your kid hang out with strangers at a city park, but it's easy to miss when they're making connections with strangers online.
Think about it this way: Your kids are spending a lot of time being influenced by online people (literally called "influencers"). That may be unavoidable as your kids get older and their lives gravitate online, but as much as possible, you want to be an influencer, too. You really can't talk enough to your kids about what they're experiencing online.
What to Do If You Suspect Identity Theft in a Child
If you're certain your child's identity has been stolen, it may feel like a punch in the gut—but there are steps you can take.
Contact the police
If you have no idea whether the thief is local or on the other side of the world, calling the police may seem fruitless—but some credit bureaus recommend contacting the authorities.4 If nothing else, you'll have a police record that can come in handy later, especially if the thief is caught. Meanwhile, local law enforcement may want to warn other parents in your area to be on the lookout for suspicious activity.
File a complaint with the Federal Trade Commission
The Federal Trade Commission may be able to provide assistance. Report the incident at IdentityTheft.gov, where you can spread awareness about what happened and find resources that may help as you try to undo any financial damage.
Do damage control
Contact all the main players who can help with the identity theft. So if your teenager's credit card was compromised, let the credit card company know. You'll also want to contact the three major credit bureaus: Experian, Equifax and TransUnion. If a loan has been taken out in your child's name, they need to be informed that your 4-year-old doesn't even have an allowance yet (or whatever sarcastic quip you choose).
You may also want to freeze your child's credit history, which you can do when talking to the credit bureaus. If your kid is 16 or older, they'll have to contact the bureaus themselves.5 You can find the credit reporting companies' contact information at IdentityTheft.gov. It isn't a perfect solution—somebody could still steal your 17-year-old's debit card, for instance—but it will make it nearly impossible for a thief to take out a loan in your child's name.
Stay on guard
Don't let your kid's identity thief rattle you. Instead, take time to review your child's passwords and your own. Examine bank statements and bills for anything else amiss. If you don't know how the theft happened, do a financial autopsy to try to figure out what went wrong so it doesn't happen again.
This Can Be a Teachable Moment
Although identity theft is a huge hassle, it can also be an opportunity to have a long talk with your children about online safety. And it's a good reminder that cybercriminals prey on everyone, no matter their age. They would love to have a newborn's Social Security number or a senior's credit card. These days, being careful about what personal details you share online is just as important as teaching a kid to look both ways before crossing the street.
Geoff Williams is a finance writer based in Loveland, Ohio. He specializes in consumer credit, personal finance and small business finance. For the last 10 years, he has been writing for U.S. News & World Report, and his work has appeared in numerous publications, including The Wall Street Journal, CNNMoney.com, The Washington Post and LIFE magazine.
READ MORE: 6 Tips for Shopping Online Safely
Sources/references
1. Kitten, T. Child Identity Fraud: The Perils of Too Many Screens and Social Media. Javelin. October 26, 2022.
2. Kitten, T. Child Identity Fraud: A Web of Deception and Loss. Javelin. November 2, 2021.
3. Online Gaming Scams during Pandemic. How to Stay Safe. Kaspersky. April 19, 2023.
4. Are My Children at Risk of Identity Theft? Equifax. May 3, 2023.
5. What does it mean to put a security freeze on my credit report? Consumer Financial Protection Bureau. September 1, 2020.
Need to make a payment?
Use the Log In button to find your account login
portal.