An Experian survey of parents’ awareness of child identity theft shows they need more education about the risks — that is, if they aren’t fraudulently using their children’s identities already.
Identity thieves can steal children’s identities and potentially impact their financial futures. Many parents are worried about the issue but lack knowledge that would allow them to better protect their children, according to a national survey by Experian.
Some parents seem less worried. Alarmingly, survey findings show that parents may engage in fraudulent behavior, using their children’s personal information to create financial accounts. Fourteen percent of survey respondents said they created financial accounts with their children’s Social Security numbers, and 17 percent said they would allow a close relative to open an account using their child’s Social Security numbers.
“The fact that so many parents are using their children’s identities or allowing others to do so is a serious concern,” said Michael Bruemmer, vice president of Consumer Protection at Experian. “This is identity theft. This is fraud. This is a criminal act. Beyond the criminal aspect, parents need to understand the impact fraud can have on a child’s financial future. It can be devastating.”
While a majority (80 percent) of survey respondents say they are concerned that their children will become victims of identity theft, many are not taking necessary steps to minimize risk. More than half (51 percent) don’t monitor their children’s internet use closely and 33 percent don’t refrain from posting personal information about their children on social media. Nearly half of respondents (46 percent) don’t store their children’s identification documents at home in a safe, and some keep these documents in wallets (10 percent).
“Children’s personal information, such as a social security number, full name or home address, is used by thieves it to create a new identity and commit fraud,” explained Bruemmer. “Unfortunately, when children are victims of identity theft and fraud, it often goes unnoticed for years. Only 16 percent of parents surveyed said they had ever even checked to see if their children had a credit report, a major warning sign that a child has been a victim of identity theft. Regularly monitoring for the existence of a credit report is a key step to protecting your child.”
Other key findings:
More than half (66%) of parents surveyed allow their children to have private passwords to email and social media
27% think it is a good idea to create a credit report in their child’s name for the purpose of freezing it, which is not a recommended practice
Only 24% of those surveyed are aware of identity theft monitoring products for children
Protect your child and their identity by taking these steps:
Protect their Social Security number. A child’s pristine Social Security number is like gold for identity thieves. Once a skilled identity thief has a child’s number, they can create a whole new identity and use that number to set up credit accounts, take out loans, and of course, rack up debt.
Don’t overshare online. Details such as your child’s full name, address and date of birth can be enough to get an identity thief started. The web is a happy hunting ground for identity thieves, so avoid making your child’s personal information available online.
Safeguard your home. It’s important to keep personal information under lock and key and away from prying eyes. This includes your child’s Social Security number, birth certificate, passport or other sensitive information.
Monitor for suspicious activity. Watch out for pre-approved credit cards, bills for unfamiliar services or unexpected medical collection notices in your child’s name. Some credit monitoring products will alert you of activity associated with your child.
Educate your children. Identity thieves troll social networking websites in search of potential victims. Make sure your child knows not to share private information in their social profiles – such as their date of birth, address and names of family members.
What can you do if you suspect your child is a victim? Take these steps:
Check with Experian for the existence of a credit report in your child’s name. If a credit report exists, it can be frozen. Visit https://www.experian.com/fraud/center.html for more information.
If you know of any accounts opened in your child’s name, contact the business and let them know the account is fraudulent.
File a report with the FTC online or call 877-438-4338.
File a police report with local law enforcement.
For more information on protecting your child from identity theft, visit the Experian Education Blog or Experian's Family Secure® monitoring product.
About Experian Consumer Services
The Experian Consumer Services division provides credit monitoring and other informational products, such as identity protection, to millions of consumers via the internet. The organization enables consumers to monitor their credit reports online, check their FICO® Scores and protect against identity theft. Its products include Experian CreditWorksTM and ProtectMyID®. Experian Consumer Services has established integrated, cobranded relationships with leading online financial destinations that provide consumers with a broad range of comprehensive online financial products and information essential to managing one’s financial life. For more information, visit http://www.experian.com.
