Protect Your Child from Identity Theft

Identity theft can have a significant impact, especially when it involves children. Cybercriminals target the identities of children because they have unblemished credit histories that tend to be infrequently reviewed. That means a fraud may go undetected for years, often until the child has a credit report run when applying for a job or student loan.

Identity theft among people under 18 is on the rise. Today's kids are increasingly active online and using mobile apps and social media platforms, exposing them to greater risk of data theft than ever before. Plus, those with access to shared peer-to-peer payment accounts (such as Venmo, Zelle and Cash App) and paid online accounts for online gaming and streaming services could put the entire family at risk for data theft. In fact, children can sometimes become the gateway to broader schemes that affect other members of their households.

How ID Theft Happens

Identity theft happens when dishonest individuals gain control of the victim's personally identifiable information (PII) and use it to commit fraud. Criminals can gather PII through various schemes, including data breaches, phishing emails, and stolen paper or electronic personal documents. (See, "What Is PII?" below.)

Additionally, parents or children can inadvertently disclose sensitive information through online birth announcements, birthday party invitations and social media posts—or when registering for school or completing online forms for doctor visits. A hacker may be able to steal a child's identity by cobbling together his or her birth date, address and phone number. Alternatively, cybercriminals can use data fragments, such as one child's birth date and the Social Security number of another, to build a "synthetic identity."

Kids from households with an annual income of at least $150,000 are more likely to have their data compromised than kids from less affluent households. More than a quarter of kids from the highest-income households (26%) were targeted by identity theft scams in the last six years, according to "Child ID Theft: Social Cyber Risks and the Persistent Threat to Families," a recent survey published by research firm Javelin. By comparison, only 20% of households with annual income between $100,000 and $149,999 and 11% of households with annual income between $50,000 and $99,999 had their identities stolen in the last six years.

The key reasons criminals target kids from affluent families are that the parents and guardians tend to have multiple devices available for use and lenient attitudes about children's social media use. Many also allow their children to use their credit cards for online purchases.

The Javelin survey found that 25% of households with annual incomes of at least $150,000 think it's acceptable to allow tweens (ages 8 to 12) to have social media accounts in their own names, with their own images and login credentials. The survey reports that 47% of minors victimized by identity theft scams also experienced the takeover or compromise of their social media accounts.

What to Watch Out For

Anything that seems out of the ordinary may indicate that a child's identity has been compromised. For instance, receiving unsolicited credit card offers in a child's name, debt collection calls, or correspondence from state and federal tax authorities can be red flags associated with identity theft. Additional warning signs include illegitimate medical bills, unexpected changes in a credit report and denial of government benefits on behalf of a child.

Children who have been cyberbullied also may be at greater risk of identity theft, according to the Javelin survey. However, parents and guardians may be unaware that their kids are being cyberbullied because victims often block adults from seeing their social accounts or open "shadow" accounts under alternate names. Watch for signs of cyberbullying, such as having trouble sleeping, being moody and withdrawing from social interactions. Take extra precautions to guard against identity theft if you suspect your child is under attack.

How to Prevent Data Theft

Javelin reports that, compared to adults, minors are more likely to overshare about themselves on social media, accept friend requests from strangers, post content publicly and check in at locations, such as vacation destinations or social activities. So, educating children about the risks of identity theft is essential. They should understand what is and isn't acceptable to share online. Also teach them how to recognize phishing emails and how scammers exploit social media, shopping and gaming platforms to gain access to PII.

Other proactive steps you can take to protect minors from these scams include:

1. Protect PII. Explain what can happen if personal information (such as address, phone number and age) is shared online with strangers.
2. Use privacy tools. Take advantage of privacy tools on social media and online accounts and select the most restrictive settings. Monitor social media accounts often to ensure your child doesn't share PII. Encourage your child to accept friend requests only from people they know.
3. Secure devices. Use strong passwords and ensure your child updates the operating system when prompted. Consider adding software to monitor activity and limiting the sites your child visits. Periodically check email and messaging activity for suspicious activity.
4. Limit data sharing. Share your child's Social Security number only when necessary. If a doctor's office or school requests it, ask why it's needed and how they intend to protect it. Store paper records that include your child's PII in a secure location. If you need to dispose of documents that contain sensitive data, shred them before placing them in the trash.
5. Delete digital information. Delete personal information from every device you dispose of, including reformatting hard drives whenever possible.
6. Check credit reports. Proactively check to see if your child has a credit report. If a record exists, scrutinize every line item and dispute unfamiliar items with the credit bureaus. Additionally, if you find a credit report, consider placing a credit freeze to make fraudulent uses of your child's identity more difficult.

Finally, consider the example you set when engaging with others online or on social media. Kids watch how their parents and guardians behave and are likely to imitate any high-risk habits you model to them. The Javelin survey notes that "if a parent openly shares posts about vacation trips, school field trips and birthdays, children are more likely to openly share that same type of information on their own social networks, making the cybercriminal's job increasingly easier."

What Is PII?

The U.S. Department of Homeland Security defines personally identifiable information (PII) as "Any information that permits the identity of an individual to be directly or indirectly inferred, including any other information that is linked or linkable to that individual, regardless of whether the individual is a U.S. citizen, legal permanent resident, visitor to the U.S., or employee or contractor to the Department."

Sensitive PII includes information that if lost, compromised or disclosed without authorization, could cause "substantial harm, embarrassment, inconvenience, or unfairness to an individual." Examples of standalone PII include your:

• Social Security number,
• Driver's license or state identification number,
• Passport number,
• Financial account numbers, and
• Biometric information.

These items—when combined with other sensitive data, including birth dates, mailing addresses, email accounts and phone numbers—can be used by criminals to steal individuals' identities and commit fraud.

Secure Your Child's Future

The cyber risks parents and guardians face today are much different than they were five or 10 years ago—and new threats continually emerge. Protecting children's PII and monitoring their online and social media activities can significantly reduce the risk of identity theft.

If you suspect your child's identity is in the hands of criminals, review his or her online activity, access credit records and freeze the accounts. Additionally, report your suspicions to the Federal Trade Commission and review the agency's guidance on how to manage the issue and receive support for future disputes.

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