Identity theft is on the rise. While many people are aware they themselves are at risk, few parents realize that child identity theft is also a growing problem.

According to a report by Experian, the average identity theft victim is 12 years years old. The numbers are staggering. In 2017 alone, more than one million children became victims of child identity theft , costing their parents over $540 million in direct costs. One in four children will become identity theft victims before they become adults.

Children face the same consequences as adult identity theft victims. Thieves use their Social Security numbers and other personal information to apply for credit cards and loans, utility accounts and apartment leases in the child’s name. When those accounts are not paid, creditors and debt collectors come after the child, just as they would chase an adult to collect a delinquent account. Thieves may also use a child’s personal information to apply for government benefits or file fraudulent tax returns, creating more headaches for parents who have to deal with the consequences.

Why do identity thieves target children?

Simple – it takes a long time to detect. It will probably take months or even years for parents to discover that their child’s identity was stolen, longer than it would if they were the victim. Parents are not likely to detect the fraud until they get a bill in the mail or receive a telephone call from a creditor or debt collector. In the time before the fraud is detected, an identity thief can rack up thousands of dollars in charges in the child’s name.

Worse, the damage and problems done can take years to fix. According to Experian , it takes an average of three years to resolve the problems caused by child identity theft, and about one-quarter of victims are still dealing with the problems 10 years later.

How can parents detect child identity theft?

The best way is to check whether your children’s identity has been stolen is to to periodically get their credit report from each of the three nationwide consumer reporting agencies (Equifax, Experian and TransUnion). Under federal law, all Americans (including children) have the right to get one free credit report each hear from each of the three consumer reporting agencies (CRAs). You can do that online at this link. Just be careful not to get upsold on credit monitoring and other programs. Massachusetts residents are also allowed to bet another free credit report each year under our state law.

If your children have financial accounts, it’s also a good idea to monitor those accounts on a regular basis.

What’s the best way to prevent child identity theft?

In a word – credit freezes. You can prevent most types of child identity theft by placing a credit freeze with the three CRAs for each of your children. That should stop a thief from using your child’s personal information to apply for credit cards and loans in the child’s name. Under a recently-enacted federal law, freezing and unfreezing your and your children’s credit is free.

You should also be careful not to give your child’s Social Security number or other personal information to third parties except when it’s necessary to do so. And make sure to teach your children to do the same.

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