Minor Identity Theft: A Parent's Guide to It
A child's clean record is a prize for thieves. Here is how to check for a credit file and what to do if one exists.
A child's Social Security number is a blank slate. No loans, no late payments, no debts. That is exactly what makes it a prize for a thief. Here is what minor identity theft is, how to spot it, and what the FTC and IRS say to do next. For a broader look at the forms this crime takes, see these identity fraud examples.
What minor identity theft is and why thieves target children
Minor identity theft happens when someone uses a child's personal information as their own. The FTC says a thief might use a child's Social Security number, name and address, or date of birth.
Why go after a child? The FTC says that generally a child under 18 won't have a credit report.
Warning signs that a child's identity has been stolen
Watch for these red flags. Any one of them is worth checking out.
- The IRS says a dependent's information can be used to get a tax credit. The IRS guide says the IRS notifies you by mail if they find duplicate claims.
- TransUnion says a credit file already existing in a child's name may be a warning sign of identity theft.
How to check whether your child has a credit file
The FTC says that generally a child under 18 won't have a credit report. So the first check is simple: does a file exist at all?
TransUnion offers one way to find out. TransUnion says you can use its Child Identity Theft Inquiry Form to find out if a credit file exists in your child's name. TransUnion says it will check its records for a credit file under a child's information if you complete its secure online form.
One worry stops many parents. TransUnion says sending a request to check for a credit file will not create a credit file. The check itself is safe.
There is one case where a file can exist without fraud. TransUnion's page says a child may have a credit report if you added them as an authorized user on one of your credit accounts. But TransUnion's page says a child having a credit report without being an authorized user may be a sign of fraud.
For checking your own record, see how check for identity theft.
What the FTC says to do if someone opened accounts in your child's name
Say the check turns up accounts you did not open. The FTC gives a clear set of steps.
First, the FTC says to tell each credit bureau that someone opened an account using your child's information.
Second, the FTC says to ask the credit bureaus to remove any fraudulent accounts from your child's credit report.
Third, the FTC says to contact each of the three credit bureaus to activate a credit freeze.
Then go to the companies where the accounts were opened. The FTC says to ask the companies for written confirmation that your child isn't responsible for the account. Get that in writing and keep it with your records.
Freezing your child's credit
The FTC says the process for getting a credit freeze for a minor is different than getting one for an adult.
The FTC says to contact each of the three credit bureaus to activate a credit freeze. You may need to prove who you are. The FTC says you may have to give the credit bureaus a copy of your driver's license or other government-issued identification card. And the FTC says if you're not the child's parent, you may have to give the credit bureaus documents proving you're the child's legal guardian.
How long does it last? The FTC says a child's credit freeze stays in place until you tell the credit bureaus to remove it.
Older teens have a path of their own. The FTC says minors who are 16 or 17 may request and remove a security freeze themselves.
When the stolen identity belongs to a dependent on your tax return
The IRS guide says a dependent is a qualifying child or relative who relies on you for financial support. A thief who uses a dependent's information can cause trouble at tax time.
If your dependent's identity was stolen, the IRS guide says to check if you should file Form 14039, Identity Theft Affidavit.
The IRS guide says to determine who can claim the dependent before you file. It also says to make sure the dependent's information is correct on the return.
If you already have an IP PIN, the IRS guide says to use that to e-file your return. The dependent does not need an IP PIN, the IRS says, unless one was previously issued to them.
Need an IP PIN? The IRS guide says you must register and validate your identity first. Then you can request one through an online account. If you cannot access or create an online account, the IRS guide says you can request an IP PIN by filing Form 15227 online.
The IRS guide says the IRS notifies you by mail if they find duplicate claims, and you should immediately follow their instructions. If you cannot e-file, the IRS guide says to complete a paper return, include supporting documents, and mail the return package. And if the IRS audits your claim, the IRS guide says you will need to provide proof you can claim the dependent.
One question frustrates every parent in this spot. Why can't the IRS tell you who claimed your dependent? The IRS guide says privacy laws mean the IRS cannot tell you who claimed your dependent. The IRS guide says the IRS can only disclose information for the return's primary and secondary taxpayers.
How to keep a child's information safer going forward
You cannot lock down every record, but you can shrink the target.
The FTC says to always delete personal information before getting rid of a computer or a cell phone.
TransUnion says sending a request to check for a credit file will not create a credit file, so checking is safe.
Thieves do not just open accounts. For another form this crime takes, see employment identity theft.