Child Identity Theft
All children born in the United States are given a social security number (SSN). This is used to obtain health insurance and various other benefits. It is also used by the parents to get rebates and allowances on their taxable income. The social security number also gets the child into the system. As he/she grows up, the SSN may be used when registering with a doctor, joining a new school or any number of other activities. In fact, this very important number can spread all over the place and leaves the child open to identity theft.
This is often compounded by the fact that parents rarely check their child's credit report. Why would you, since the child shouldn't have a credit history. So it is often ignored or overlooked until they reach an age where they need credit or want to buy things on credit.
Checking your child's credit records are more difficult than your own. In most cases you have to send a letter via the mail to ask for the information. Thus many people will never get round to checking or monitoring their children's credit information.
How Child Identity Theft Works Identity thieves will obtain the SSN and find out other details using this number. They will then open new bank accounts with the children's information. They apply for loans and credit cards and spend the money on all kinds of things. In many cases it is harder to identify these new accounts and then clear up the credit charges laid against them
Ensure Your Child Does Not Suffer From Identity Theft Thus you should protect your children by monitoring their credit report. This can be done annually or bi-annually. Never give out any details of your child's information, especially their SSN, unless it is absolutely necessary. As a rule of thumb, only the Internal Revenue Service (IRS) and possibly your local doctor may need your child's social security number. Never carry the number on your person as it could fall into the wrong hands. Leave it at home in a secure location.