Protecting Your Children’s Credit from Identity Theft

Identity theft can be difficult to correct as an adult. Anyone who has gone through the process on their own will explain the frustrating experience of trying to prove who you are to credit bureaus and merchants who are verifying against a credit report, which contains mostly incorrect fraudulent information. Victims are often asked to verify addresses they never lived at, phone number they never had or accounts they never opened.

As frustrating as this experience can be, it is nothing compared to a victim turning 18 and finding out that their entire credit file is fraudulent. Proving your identity when all records available to the credit bureaus and merchants are full of fraudulent information can be the most difficult process that an identity theft victim can go through. Most people are unaware that credit issuers may not have any method available to verify the age of an applicant, and that credit bureaus record the “official” age of an applicant with the first credit application. If the application indicates that your 3 your old son is actually 24, the record remains at age 24 until it is disputed and proven otherwise. This can also be difficult since it is common to take the information of a minor to get a driver’s license. As a result of this kind of identity theft, victims are sometimes turned down for college loans, denied welfare or other benefits, denied a driver’s license and occasionally arrested because of the fraud.

As a parent, you can help your children avoid this grim future. Your child may or may not have a legitimate credit history. Some banks and credit card companies allow parents to add children to the accounts as an authorized user, which could create credit history. Please be aware that receiving a pre-approved credit card offer in the mail for your child can be alarming, but does not necessarily mean that they have a credit history or that there is identity theft occurring. You can opt out of these offers for yourself or your children by calling 888-5OPTOUT or going to www.optoutprescreen.com

Experts recommend that if you inquire about your child’s credit history, that you do so no more than once a year. For security and privacy reasons, only parents or guardians may request a credit report on behalf of a child under the age of 13. For this reason, you may be requested to fax or mail documents providing that you are the parent or legal guardian before they will send the credit file. Be aware that it is also possible that an inquiry into a child’s credit history could be answered with a letter indicating a file cannot be found. TransUnion recommends that parents do not just request a copy of the credit report just to check and see. To that end, TransUnion has set up a special email address for parents and guardians to use to obtain a “yes/no” answer regarding if a file exists: childidtheft@transunion.com. They suggest that if the answer is “yes”, to weigh the risks and probability that there is use of your child’s identity and decide to order a copy report based on your assessment.You can find a sample form letter to request these reports here and a list of required documents by credit bureau here.

The Identity Theft Resource Center provides the following tips for parents to help prevent the identity theft of minor children:

• Parents: Parents are often asked to show a copy of a birth certificate and/or Social Security card in order for their children to participate in after school sports. Coaches often ask for photocopies of these papers. ITRC does not believe that this is a good security measure and that safer information handling practices should become policy. We recommend the following:
• Ask if the coach has had a criminal and financial background check done by an independent or hiring source. If not, will one be done? This should be an automatic practice due to the amount of child molestation and child information theft.
• Show the papers to the coach and then put them in a sealed envelope. Write your name across the sealed flap in colored ink so that you can tell if it has been opened.
• Initial the back of each page in colored ink that you place in the envelope. At the end of the season you will know if you got the original back.
• Ask where the papers will be stored during the season. Parents need to make sure that the envelopes will be stored in a locked box and returned unopened after the season has ended, unless you have been notified that there is a need to show them to other people.
• Shred all papers that you throw out that contain account or Social Security Number.
• Do not carry your or your child’s Social Security Number in your wallet, including Social Security cards. If necessary (i.e. health insurance cards) make a photocopy of the card, cut off the last 4 numbers of the Social Security Number and carry that photocopy with you on a daily basis. Only carry original cards on days you know you will need them. Then if your wallet is lost or stolen, this information will not be stolen.
• Students- when possible, ask your college not to use your Social Security Number as your college ID number. If they insist on doing so, only carry your original card on the days you need it. Ask to not include the number on rosters that others may see and insist that it not be posted in public display areas.
• Lock your information away. Roommates may seem friendly and end up as good friends, but too many victims have found out that an unscrupulous roommate or friend has stolen their information.
• Watch your backpacks, briefcases, or anything you carry your wallets or important papers at all times (this includes in class, at lunch and in the library).
• Use a locked mailbox to send and receive all mail. Do not leave mail unattended for pickup in an “out” box.
• Resist giving out your driver’s license number or Social Security Number (or child’s Social Security Number) unless they have a good reason for needing it. A doctor’s office is a great place for a child profiler to collect information. Make sure that the physician is aware of that and that his or her staff is taking proper precautions with your child’s information. Watch for people who may try to eavesdrop and overhear the information you give out orally.
• Scams- Teach children not to give out personal information over the phone and do not give out any of your or your child’s information on the Internet unless you are absolutely sure that you are dealing with a legitimate company. When in doubt, don’t. You can check out companies with the Better Business Bureau, the FBI or your State Attorney General if you have any concerns. Think first- don’t give out information and then later regret it.