It’s estimated that more than 1.25 million American children became the victims of ID theft last year, according to the “2021 Child Identity Fraud Study” by Javelin Strategy & Research.
The criminals use stolen Social Security numbers to create bogus credit files in their names. Then they apply for credit cards, buy a lot of stuff, and skip out on paying the bills.
Eva Velasquez, president and CEO of the non-profit Identity Theft Resource Center, tells me that in most cases, the crime isn’t discovered for years.
“Often when they get to the age where they’re starting to apply for student loans, they then find out… they have a credit history that’s … absolutely decimated,” Velasquez said.
Cleaning up the mess caused by the criminals impersonating your child takes a tremendous effort to resolve.
You can protect your kids by freezing their credit files at Experian, Equifax, and TransUnion. It’s something I hope you’ve already done with your credit files.
“It’s a little bit more cumbersome because you not only have to prove the identity of the child, but you also have to prove that you have the legal authority to make decisions for them,” Velasquez explained. “But it’s absolutely worth jumping through that one hoop so that you can protect them.”
Initiating a freeze, for children or adults is free. You need to do this with each of the big three credit bureaus—Equifax, Experian, and TransUnion.
More Info:
Data Breaches Soar to New Record in 2021, Here’s How to Protect Yourself
Identity and Cyber Theft: How to Protect Yourself