Child Identity Theft: What's a Parent to Do?

Identity theft affects millions each year and has been more of a problem given the technological age. Few realize that some of these millions of victims include children. As popular targets of identity thieves, parents need to be diligent in safeguarding their children's identities and in some cases, their financial futures.

Identity thieves target children because parents don't typically consider that their children are vulnerable to having their contact information and subsequently, their identities stolen. It starts with a social security number and a name.

At birth, all children receive social security numbers which are automatically processed by the hospital and issued by the Social Security Administration. While many parents simply pack those cards away, the numbers are used on everything from school applications, tax forms, activity memberships, court documents, and medical records. Anyone savvy enough to gain access to this information can steal a child's identity. Once the social security information is obtained, a person can get credit cards through the mail, bank accounts, or create other accounts, including utility service accounts.

Signs to Look For
Many adults don't know that their identities have been stolen for months- sometimes years. A parent may not learn that there is a problem until their child is older and needs to obtain a driver's license or loans for college; however, in some cases, there are signs. If your child begins to receive unusual items in the mail or you start to receive collector calls for your child, chances are that their identities have been stolen.

What to Do?
Just as you would with your self, you need to act quickly once you have learned that your has been the victim of an identity thief. Getting information and being organized will be key.

Get your child's credit reports. You can obtain these for free from the three major credit reporting agencies by going to http://www.annualcredit report.com or calling 1-877-322-8228. Once the reports are reviewed, request that a fraud alert be placed in your child's credit file. This fraud alerts prevents new accounts from being created in your child's name.

Contact any creditor's found on your child's credit report to obtain information about how the accounts were created. Close the accounts and submit a fraud affidavit. If the creditor persists in attempting to collect on the debt against you or your child, contact an attorney.

Identity theft is a crime, and, in this case, a crime against your child. Contact the police and file a report. Offer all the information you have collected to help in the investigation.

Since many identity fraud cases stem from access to social security information, contact the Social Security Administration and obtain your child's Social Security Statement. In this statement, it will list names of those people who have attempted to use your child's social security number to obtain benefits or employment. The statement can be requested on the Social Security Administration's website at www.ssa.gov/mystatement/ .

Just as you contact the police, file a complaint with the Federal Trade Commission (FTC). The FTC is one of many federal agencies that has a mission of protecting consumers. Specifically for the FTC, its role is to ensure protection from unfair business and credit practices. THE FTC offers insight on how identities may be stolen, but also provides a means of making identity fraud complaints online or through their ID theft hotline.

Another option includes getting your child a new social security number. This move is simple, because all you do is contact the social security administration and complete an application.

Being aware that child identity theft is a real issue is one step in protecting your family from identity theft. Knowledge on how it happens and ways to combat this crime against your child will help save you hours of aggravation and protect your child's financial future.