Child Identity Theft: How to Protect Your Child’s Credit
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
What is child identity theft?
Child identity theft is when a minor’s personal information is used to open fraudulent accounts in their name. Information such as a child’s Social Security number, birth date or other identifying information can be used to apply for credit cards, loans and government benefits and open bank and utility accounts.
To help protect against child ID theft, parents and guardians can request the credit bureaus freeze the credit of a child younger than 16. If no credit file exists for the child — which should be the case — the credit bureaus must then create a file and freeze it. Sixteen- and 17-year-olds may request a freeze themselves.
"Credit bureaus don't knowingly create credit files for minors," says Eva Velasquez, president and CEO of the Identity Theft Resource Center, a nonprofit that helps with ID theft prevention and recovery. "However, child identity theft continues to occur because the verification system for Social Security numbers continues to have challenges."
Thieves may even “create” a consumer by blending a child’s Social Security number with a different name, address and birth date, a practice called synthetic identity theft. Because parents have little reason to check whether a credit record exists for their child, the crime can go undetected for years.
Velasquez says she recommends that parents freeze their children’s credit, as it is one of the most proactive actions a parent or caretaker can take. A freeze will prevent criminals from using the child’s personal data to take out credit.
You can freeze your own credit, too, to stop scammers from opening new credit accounts in your name.)
How to freeze a child’s credit
You can freeze the credit of one or more minor children using the following protocols:
1. Gather the needed documents
The three major credit bureaus (Experian, Equifax and TransUnion) have slightly different requirements. But to make the process simple and streamlined, simply send the same set of documents to each one. Each bureau will disregard extra documentation.
Here’s what you need to cover all three bureaus’ requirements. Make three sets of copies for each; don't send originals:
Your government-issued ID (usually a driver’s license).
Your birth certificate.
Your child’s birth certificate or other document showing you have the authority to act on the child’s behalf (foster care certification, power of attorney or court order).
Your Social Security card.
Your child’s Social Security card.
A utility bill or bank or insurance statement with your name and address on it.
Sort the copies into three piles, one for each credit bureau.
2. Print out child freeze request forms
If you're requesting freezes for more than one child, you'll need to fill out a form for each one. You can download the necessary forms from Equifax and Experian.
TransUnion has a child ID theft inquiry form you fill out online to see if your child’s Social Security number is attached to a credit file.
3. Mail the request and document copies
You will send each form or letter, along with copies of documents, to each credit bureau. Equifax and Experian list their mailing addresses on their freeze request forms. You can find TransUnion's address on its website.
Because you are mailing sensitive personal information, NerdWallet suggests using certified mail.
4. Wait for confirmation, then store it securely
Within three business days of receiving your request, the credit bureau should place the freeze. The bureau must also send a notice by mail confirming the freeze within five business days of the request, the Consumer Financial Protection Bureau says. This letter should include information about how to lift the freeze (whether that's using a PIN, password or another method). Keep this information in a safe place.
The freeze will remain in place until you or your child unfreezes it later to apply for a credit card, car loan, student loans or other credit.
How to protect your child from identity theft
Freezing your child’s credit will keep a criminal from opening credit in your child’s name, but it doesn't protect your child from identity theft entirely.
You can adopt habits to guard against child identity theft and teach your child to do the same.
Protect Social Security numbers. Many forms ask for a Social Security number without much explanation of how that information will be used. Unless you are told why that field is necessary and how the information will be protected, leave it blank.
Pay attention to mail. What's in your mailbox can provide clues about potential fraudulent activity in your child's name. For example, a credit preapproval offer in your child’s name doesn't necessarily indicate identity theft, but it's worth investigating. Correspondence from a collection agency addressed to your child is a huge red flag.
Keep your child’s documents locked away. Birth certificates and Social Security cards shouldn't be in your purse, wallet or car. Safeguard anything with that information in your own home. That means keeping paperwork with Social Security numbers inaccessible, possibly in a home safe or locked file cabinet, out of reach from service people and visitors.
Be careful about what you and your child share on social media. Fraudsters use even the smallest nuggets of personal information to piece together potential bank and other passwords.
Monitor health insurance claim information. A claim that doesn't make sense to you can indicate that your child’s personal information has been used to access health insurance benefits.
Wipe all electronics before disposing of them. Getting a new phone or computer laptop can be exciting, but don’t forget to erase the hard drives and reset phones to factory settings before recycling or reselling them. Most of these electronics contain private information and passwords that you don’t want to share.
What to do if you discover child identity theft
If you’re preparing to freeze your child’s credit and find an existing credit report, receive a suspicious bill in the mail or discover another red flag, it’s important to take immediate action.
Contact the companies where fraudulent accounts were opened in the minor’s name and close them. Some companies have fraud departments you can work with directly. Be sure to ask for written confirmation that your child never opened the accounts, which might be useful in the future.
Freeze your child’s credit with all three credit bureaus.
Report the identity theft to the Federal Trade Commission.
