Kids and teens are online more than ever — up to 7.5 hours a day, according to the CDC. As a result, more of kids’ information is being gathered, used and stored online, making childhood identity theft a growing problem. Fortunately, there are several steps you can take to minimize the risk of fraud for your children, grandchildren or mentees.
What is Child Identity Theft?
Child identity theft happens when a criminal steals a minor's personal information—like their Social Security number, name or date of birth—and uses it for fraud.
Why Children Are Often Targets for Identity Theft
In the United States, one out of every 50 children experienced identity fraud in the past year, according to research by Javelin. Children are prime targets for identity theft because they tend to have clean credit. What’s more, kids and their parents don’t typically check their credit scores, so the fraud can go undetected for years.
Many victims of this type of fraud won’t discover the problem until they apply for their first type of credit — such as a student loan or a car loan — and get rejected due to fraudulent activity on their credit profile.
Apple FCU’s Identity Specialists are specially trained to help families navigate childhood identity theft and have seen these difficult scenarios play out firsthand.
“Imagine an 18-year-old discovering they owe $25,000 to a collection company for a car they never bought,” says Brian Stuart, Allstate Identity Protection Director of Customer Care. “That’s a shocking way to start adulthood.”
Parents are right to be concerned–personal information stolen from children can be used to open bank accounts and credit cards, obtain drivers’ licenses, apply for jobs and purchase homes or vehicles. Even data collected by trusted institutions and schools can wind up exposed. Public schools, for example, are increasingly targeted by ransomware attacks. Scammers may either use a child’s full identity or create a synthetic identity by blending real data with made-up details.
6 Tips for Protecting Your Child From Identity Theft
To stay a step ahead, consider adding your child to your identity protection account and putting a security freeze on their credit. Fortunately, if you’re an Allstate Identity Protection member and you have a family plan, you already have access to tools that can help you minimize your exposure to identity theft. Use this checklist to make sure you’re getting the most out of your account—plus, learn five more steps you can take to help kids stay safe from fraud.
1. Use an Identity Protection Service
According to Javelin, only 6% of children were enrolled in identity theft protection when their data was leaked. If you’ve already added your child to your Allstate Identity Protection account, you’re on the right track.
For an additional layer of protection, take a few minutes to activate features on your child’s behalf. From there, Apple FCU will let you know if we detect suspicious activity, so you can take quick action to minimize the risk of identity theft.
If fraud does happen to your family, we’ve still got you covered. Our U.S.-based Identity Specialists are available to provide assistance.
2. Place a Security Freeze on Your Child’s Credit File
By placing a security freeze on your child’s credit, you can make it harder for someone else to open a line of credit in their name.
Each of the three credit bureaus has a different process for this, but in general, parents or guardians must mail a written request along with copies of identifying documents directly to each bureau to request a freeze on a minor’s behalf.
You can find more specific instructions for how to do this with each bureau by following the links below:
3. Be Cautious About Sharing Personally Identifiable Information (PII)
Summer camps, doctor’s visits, extracurriculars—when you sign up your child for activities like these, you may be asked to reveal their Social Security number and other identifying data.
Forms can be outdated, and in some cases, the sensitive information that’s requested is not actually required. Don’t be afraid to question why certain details are needed, or to leave fields blank when you’re being asked to reveal more of your child’s information than seems necessary.
4. Keep an Eye on Your Child Online
Children with unmonitored internet access are three times as likely to fall prey to identity fraud compared to those whose online activity is monitored, according to Javelin.
The Children’s Online Privacy Protection Act (COPPA) requires that sites or services geared toward users under age 13 must send parents a plain-language consent notification before data is collected, so keep an eye out for those emails.
Also, the browser or computer systems you use every day often offer parental controls. Consider adjusting your security settings for additional peace of mind.
5. Limit What You Share About Your Child Online
It can be fun to celebrate our kids online with first day of school or birthday party photos, but disclosing any personally identifiable information can expose them to future risks. A study by Barclays Bank predicts that by 2030, two-thirds of identity fraud cases among today’s children will have resulted from parents sharing (“sharenting”) about their kids online.
Before you post something, consider whether the information you’re sharing could make your child vulnerable to fraud later on. For example, a front-porch snapshot with your house address visible in the background may unintentionally reveal PII.
6. Teach Your Children How to Protect Themselves
We already teach our children about “stranger danger.” Let your kids know that this also applies to strangers online. Children should only chat with someone on social media if you both know them in real life.
It’s also important to make sure kids understand the hallmarks of phishing,such as blurry images, frequent typos or urgent requests to “Act now!”. The more kids know what scammers are up to, the better prepared they’ll be to protect themselves.
How Apple FCU Helps Protect Members and Families
At Apple FCU, we’re committed to keeping your family safe from identity theft. That's why we've partnered with Allstate Identity Protection to provide comprehensive identity theft monitoring and fraud protection services for our members and their families. With 24/7 fraud monitoring and U.S.-based Identity Specialists available to assist you, we'll safeguard your family's financial security and your peace of mind. Contact us today to learn more about how we can help safeguard your family from identity theft.
