Child Identity Theft: The Most Innocent of Victims

Child identity theft can be an attractive alternative to criminals because it can go undetected until your child applies for their student loan or first credit card. Using a child’s identity for financial and personal gain has increased since the start of the recession, and we often think of the perpetrator as a stranger, but it can also be a family friend, family member, or an acquaintance.

The social security administration, instructed by the IRS, began giving social security numbers to all children in the 1980s. As these young adults begin using these numbers for the first time, the FTC (Federal Trade Commission) has reported an increase of identity theft complaints from young adults between the ages of 20 and 29.

Children under the age of 18 cannot legally be held to a contract. In addition, some credit issuers do not require proof of age, or are given forged documents. Once a credit application is completed and the information verified a credit report is created with your child’s stolen social security number.

The after math of this crime is a young adult, who upon entering the workforce for the first time, cannot get a credit card, loses potential job opportunities, or even worse, faces bankruptcy because of debt they never personally acquired.

Any of the following can be signs that your child’s identity has been stolen:

• Calls from collection agencies
• Bills or credit cards sent in the child’s name
• An IRS notice that the child’s name or social security number is listed on another tax return.
• An individual, who knows your child’s SSN, has a history of financial problems and suddenly has a lot of money.

Contact the credit reporting agencies if you suspect foul play.

If you have reason to believe that your child’s social security number may be compromised, you must contact the three credit reporting agencies in writing. No minor under the age of 18 should have a credit report, and if one exists, it will not match the information you’ve given each of the agencies. The reports will simply indicate that your child’s social security number belongs to someone else illegally.

To order a child’s credit report, all requests should be mailed certified with a return receipt and should include the following information:

• A cover letter that includes the child’s full name, date of birth and the previous addresses for the last five years.
• A copy of the parent’s identification, such as a driver’s license or a military ID. (it must be a photo ID.)
• A copy of the child’s birth certificate.
• A copy of the child’s social security number.

Also if you are the legal guardian or have legal custody you will need to include the proper supporting documentation.

Allow 30 days, from the time you receive your return receipt, for the credit reporting agencies to respond. If you receive no response after the 30 days, you can file a complaint with the Federal Trade Commission.

The addresses for each of the credit reporting agencies are listed below:

Transunion
P.O. Box 6790
Fullerton, CA 92834

TransUnion has recently set up a special email for parents and guardians of child identity theft:childidtheft@transunion.com.

Experian
P.O. Box 9532
Allen, TX 75013

Equifax
Office of Consumer Affairs
P.O. Box 105139
Atlanta, GA 30348

Where to Start

If you find that your child has been a victim of identity theft, here are some suggestions to begin restoring your child’s identity:

1. If your responses from the credit reporting agencies show identity theft, file a police report with your local police department.

2. Consider bankruptcy. The fact is a bankruptcy never looks good on a credit report, but it may allow you to erase some of the debt, get rid of collectors and begin the rebuilding process.

3. Consider changing the child’s social security number. If the child is young enough this might be a solution, but for young adults it may not work if there is significant work or credit history involved. The Social Security Administration has information on their website.

4. Place fraud alerts with all three credit reporting agencies: Equifax, TransUnion and Experian.

Ask about placing a credit freeze. This will stop anyone from opening new accounts in your child’s name.