Child Identity Theft: Growing Risks and Solutions

Identity theft is often thought of as an adult problem, but children are increasingly becoming prime targets. Child identity theft occurs when a minor’s Social Security number (SSN), date of birth, or other personal identifiers are stolen and misused—often for financial fraud. Because children don’t typically monitor their credit, thieves can use their identities undetected for years.

The Rising Threat of Child Identity Theft

According to the 2023 Child Identity Fraud Study by Javelin Strategy & Research:

• More than 915,000 children in the U.S. were victims of identity fraud last year.
• Families lost a staggering $1.4 billion, with $737 million in out-of-pocket costs.
• 67% of child identity fraud cases involved a perpetrator who personally knew the victim—often a parent, step-parent, sibling, or relative.
• Children who experienced cyberbullying were six times more likely to have their identities stolen.

For comparison, in 2003, the Federal Trade Commission (FTC) reported just 6,500 cases of child identity theft. The massive increase highlights how criminals are increasingly targeting children due to their clean credit histories and lack of financial activity.

Why Are Children Prime Targets?

Unlike adults, children rarely check their credit, making them ideal targets for identity thieves. Criminals can use a child’s stolen identity for years before being detected. Many victims don’t realize their credit has been compromised until they:

• Apply for their first credit card, student loan, or job
• Try to rent an apartment
• Attempt to get a driver’s license or passport

By then, years of fraudulent activity could have ruined their credit.

Signs Your Child’s Identity May Have Been Stolen

Parents and guardians are often the first to notice something isn’t right. Warning signs include:

• Receiving pre-approved credit card offers in your child’s name
• Denial of a bank account, student loan, or government benefits due to bad credit
• Receiving collection notices or bills for unknown accounts
• Finding a credit report for your child (children shouldn’t have one)
• Your child being denied a driver’s license or passport due to another person using their SSN

Who Is Stealing Children’s Identities?

Surprisingly, the most common perpetrators of child identity theft are people within the victim’s own family or social circle. According to the 2023 Javelin study:

• 27% of cases involve a parent or stepparent misusing their child’s identity.
• 11% involve another relative, such as a sibling, aunt, uncle, or cousin.
• Many cases also involve family friends, babysitters, or individuals with access to personal documents.

Because family members often have easy access to a child’s SSN, they may use it to apply for credit, loans, or even government benefits.

New Legal Protections for Children

To combat rising child identity theft cases, federal laws have been strengthened in recent years. The most significant change is the Economic Growth, Regulatory Relief, and Consumer Protection Act, which now requires major credit bureaus to provide free credit freezes for minors.

What a Credit Freeze Does:

✔️ Prevents new accounts from being opened using your child’s SSN
✔️ Blocks unauthorized access to their credit report
✔️ Stays in place until you remove it (or until the child turns 18)

How to Freeze Your Child’s Credit

Parents or legal guardians can request a free credit freeze for their child by contacting these four major credit bureaus:

• Equifax: www.equifax.com | (800) 685-1111
• Experian: www.experian.com | (888) 397-3742
• TransUnion: www.transunion.com | (800) 916-8800
• Innovis: www.innovis.com | (800) 540-2505

If your child does not yet have a credit file, freezing their SSN will prevent one from being created fraudulently.

What If Your Child Already Has a Credit File?

A child should not have a credit report unless their identity has been misused. If one exists:

1. Check the report for fraudulent activity.
2. File a dispute with all four credit bureaus.
3. Freeze their credit immediately to prevent further damage.

How to Protect Your Child’s Identity

In addition to freezing their credit, here are other proactive steps to protect your child’s identity:

Secure Personal Documents

✔️ Keep your child’s Social Security card, birth certificate, and medical records in a safe place.
✔️ Avoid carrying their SSN in your wallet.

Monitor Their Online Activity

✔️ Educate your child about sharing personal information online.
✔️ Use parental controls on websites and apps to limit data exposure.

Watch for Red Flags

✔️ If you receive pre-approved credit card offers in your child’s name, investigate immediately.
✔️ Check with the Social Security Administration to ensure no fraudulent employment records exist under your child’s SSN.

Check for a Credit Report Annually

✔️ Contact Equifax, Experian, TransUnion, and Innovis once a year to see if a credit report exists for your child.
✔️ If no report exists, that’s a good sign—but you should still freeze their credit.

What to Do If Your Child Is a Victim of Identity Theft

If you suspect your child’s identity has been stolen, act quickly to minimize damage:

• File a police report with your local law enforcement agency.
• Report the fraud to the Federal Trade Commission (FTC) at IdentityTheft.gov.
• Contact Equifax, Experian, TransUnion, and Innovis to dispute fraudulent accounts.
• Request a fraud alert on your child’s SSN with the Social Security Administration.
• Complete an FTC Identity Theft Affidavit to strengthen your case with creditors.

Child identity theft is a growing problem, but proactive steps can significantly reduce the risk. Freezing your child’s credit, securing their personal information, and monitoring their online activity are important ways to protect their future financial security.

By taking action today, you can help prevent years of financial damage before it’s too late.