Did you know that 1 in 50 children are affected by child identity fraud? In fact, the Federal Trade Commission (FTC) reported that incidents of identity theft where the victim was under age 19 increased 50% last year. More than half of those crimes involved children under 9 years old.
A child’s untapped identity and credit history is an attractive target for identity thieves, who open credit cards, commit tax fraud, apply for government benefits, or find a place to work or live. This kind of identity compromise can go undetected for years — at least until your child applies for a credit card account or loan.
You may be thinking, how can someone open a new credit card in my child’s name when they have no established credit? Synthetic identity theft can occur when a criminal combines an innocent child’s real Social Security number with a fake name, address, and other personally identifiable information (PII) to create a new identity. And, while many of these fraudsters hide behind the veil of the Dark Web, the perpetrator is often those you’d least expect.
Few places require your child’s Social Security number, but their school, health insurance provider, and doctor’s office all have forms where it is requested regularly. With healthcare data breaches on the rise, along with parent social oversharing, smart toys, and mobile applications gathering their information, kids’ identities are increasingly at risk. “Child fullz,” the name fraudsters use to refer to a child’s complete stolen information package, can be easily found for sale on the Dark Web. These “fullz” include names, dates of birth, addresses, and Social Security numbers. Each packaged identity starts at $8 each or can be purchased in bulk for even less.
If you have a hunch your child’s identity is in the wrong hands, it may already be too late. Beware of the following red flags:
Aside from the emotional devastation triggered by realizing your child is a victim of identity theft, the serious financial damage can take years to repair. By the time they are age 18, a fraudster could have racked up thousands of dollars in debt in their name. Javelin Strategy & Research recently reported that child identity theft costs U.S. families nearly $1 billion each year, not to mention the lost time and effort spent trying to clear their identities.