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Child identity theft is nothing short of heartbreaking. Unfortunately, many victims of this crime only find out about it when they are older and need essential services, such as student loans. As a result, their applications suffer rejection due to damaged credit history.
According to a study by Carnegie Mellon University’s CyLab, children are 51 times more likely to be victims of identity theft than adults. Also, the Federal Trade Commission reports that over one million children are vulnerable to identity theft crimes every year. These shocking statistics explain why it is becoming increasingly important for parents to learn more about the possible signs of identity theft involving their children.
As a parent or guardian, here is all you need to know about this notorious crime.
A child identity theft crime occurs when an individual accesses a child’s personal information and uses it to commit fraud. It mostly begins when the criminal steals a child’s Social Security number and uses it to illegally apply for a job, loan, or government benefits. When this happens, the criminal usually leaves the innocent child with debt worth thousands of dollars.
Children are prone to identity theft because they have clean credit records. Criminals then use their victim’s details to apply for loans, given that they stand a higher chance of being approved thanks to the clean credit history.
Additionally, children may never need to apply for such services until they are older, providing plenty of time for the fraudsters to go unnoticed. As a result, child identity theft can ruin the future of these innocent kids if not dealt with soon enough.
Criminals can access a child’s information through data breaches, phishing, or even physical theft. Also, since parents are usually the custodians of their child’s private information, criminals may use any means possible to steal such information from the parents.
Parents need to do all they can to keep their children’s information safe from identity theft. If you’re a parent or guardian, here are some valuable tips to protect your child.
So, how do you know that your child is suffering from identity theft? Here are some warning signs to watch out for:
It’s also important to note that if the criminal changes the physical address of the child’s residence, the identity theft incident may go unnoticed for several years. Criminals do this to divert mail and calls to a new address.
Have you recently discovered that your child’s identity has been stolen, or are you suspecting something along the lines? Here’s what to do:
Child identity theft is a serious crime that can ruin a child’s future, given that it often stays unnoticed for years. Additionally, children are the most sought-after victims of identity theft because their clean records are attractive and hard to detect. Therefore, parents should be vigilant in protecting their children’s information from third parties, online and offline.