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How to protect your child from identity theft
This post was originally posted on Fox Business.
Well before some children take their first math class or even learn how to count, they have become victims of identity theft. Javelin Strategy Research says more than one million children were victims of identity fraud in 2017. Experian says child identity fraud or theft will affect 25 percent of kids before turning 18. Bart McDonough, author of Cyber Smart knows first-hand about child identity theft. His youngest daughter had a tax return filed in her name when she was much younger.
âItâs a serious problem that most people donât concern themselves with much,â he says. âChildren donât have credit, they are not applying for loans, they donât have credit cards. Itâs a really ripe area because to a bad actor, a social security number is a social security number. In fact, they like the childrenâs identities better because the odds are they are not being monitored.â
McDonough says parents should do everything they can to protect their childâs personal information. He shared these six tips:
Check if your child has a credit report
A credit report is a record of everyoneâs credit activity and credit history. Should you be worried if your child has a report? McDonough says it depends.
âItâs not always a red flag,â he says. âParents are getting kids cell phones and putting them in their childrenâs name. Depending on how they pay for it, it might generate a credit report.â
McDonough also points out that some medical registrations may also produce a credit report.
Request a security freeze
McDonough says the best way to protect your childâs credit is to request a security freezefrom the three credit reporting bureaus:Â Experian, Equifax, and TransUnion.
âPeople canât apply for credit on behalf of your information, they canât use your social security number, they canât use your address, they canât use your credit history in order to take out a loan,â he says.
McDonough says while itâs simple to request a security freeze, it can be time-consuming. He estimates it will take about 30 minutes per credit agency – for a total of 90 minutes. Once you set up the freeze, he recommends storing all passwords and credentials within a secure password manager. When your child eventually needs to use credit, youâll have to call the three bureaus and temporarily unfreeze the credit.
âI had to change the billing on my cell phone,â he says. âI had to unfreeze the credit for three agencies. Then I had to freeze it again after the whole transaction was done. This was for a minor billing address change on a cell phone. It does come with some inconvenience, but itâs a secure method to protect your credit.â
Guard your childâs Social Security number
You should only give out your childâs Social Security number when necessary. McDonough says just because itâs on the registration form at the doctorâs office, it doesnât mean you should give it out.
âOften times, just the last four digits will suffice,â he says. âThey use it as a tracking code. I would avoid giving it unless they absolutely request it and it makes sense.â
Be careful when opting out of pre-approved credit offers
Has your child ever received one of those pre-approved credit offers in the mail? McDonough says the worst thing you can do is call the company to opt out. Once you contact them, the bank will likely create a credit a file on your childâs behalf.
âMy advice is to keep monitoring their credit,â he says. âIf credit is not established, then just shred or very thoroughly throw away those preapproved credit offers. Â If they already have a credit report, of course youâll want that frozen.â
Lock down your childâs student aid account
The Free Application for Federal Student Aid (FAFSA) is a form that families fill out to apply for financial aid (grants, work-study, and loans) to pay for college. A lot of your childâs private information is included in the form. McDonough says parents should make sure the account is secure.
âTreat it like your banking ID and password,â he says. âMake sure to use a strong and unique password because there is a lot of information that can be obtained about children from that federal student aid account.â
Talk to your kids about keeping information private
Adults and children often perceive things differently. Donât assume your child will always demonstrate common sense when it comes to privacy. McDonough says parents should stress to their children the importance of keeping passwords, user names and screen names private.
âI think itâs important that there is a deliberate, intentional conversation with your children about the information we have. How itâs private and how it can be used against you,â he says.
McDonough says part of the discussions with your child should center around cyber hygiene. Make sure they have a unique password for all websites. Explain to them the importance of updating their devices with the latest software. Encourage them to employ two-factor authentication for their important accounts.
âJust like parents are making sure children are brushing their teeth every night, make sure they are doing the same kind of things in their cyber life,â he says.