When we think about identity theft, generally adults come to mind — a charge on a credit card in a state you’ve never visited or a new account you didn’t open. But what happens when a child is a victim of identity theft and the perpetrator is one of their parents?
Imagine 17-year-old Alex is applying to college. He’s looking forward to this next chapter, but when he applies for private student loans, he’s denied because of a poor credit score. When he and his mom, Deborah, pull up Alex’s credit report, they find a credit card opened years earlier — when Alex was just 14.
In total, Alex has more than $15,000 in debt in his name. After digging deeper, Deborah notices the address lines up with where her ex-husband lived. Deborah realizes her ex, who hasn’t seen Alex in several years, has been using their son’s identity to fund his lifestyle.
Family-related identity theft isn’t as rare as you might think — and the consequences can be severe.
According to the Federal Trade Commission, identity theft is on the rise and an estimated 20,000 children have their identities stolen each year (1). The average age of a child victim is just 8 years old (2).
“The biggest thing to realize with childhood identity theft compared to adult identity theft is that recent statistics show it’s outpacing adult identity theft,” says TJ Sayers, director of intelligence and incident response with the nonprofit Center for Internet Security.
What makes children such attractive targets is exactly what makes the crime so hard to detect: They have no credit history. A clean slate is valuable to fraudsters and, as this story illustrates, to the people closest to them. Research found that at least 70% of child identity thieves are known to their victims, including family members, caregivers, or family friends who have easy access to the information they need (3).
That information typically includes a child’s Social Security number, date of birth and home address, which is enough to open credit cards, apply for loans, or even secure housing. In some cases, a thief might combine details from multiple family members to create what’s known as a synthetic identity — a patchwork profile used to apply for credit that doesn’t match any one real person (4).
And that damage can go undetected for years. Children under 14 can’t create credit monitoring accounts (5) with TransUnion, Equifax, or Experian due to the Children’s Online Privacy Protection Act, a federal law that restricts online data collection for minors (6). By the time the child is old enough to apply for a student loan or credit card, the harm is already done.
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Family-related identity theft can be complicated, especially if the child is hesitant to damage the relationship with the person responsible by filing charges. However, that may be the only way to avoid paying the debt yourself.
If your child is a victim of identity theft, here’s what to do:
Request reports from all three major bureaus: Equifax, Experian and TransUnion. If a credit file exists for a minor, that’s a red flag. Each bureau has a process for disputing a fraudulent account, but you will likely need to provide documentation, including proof of age and identity.
Go to IdentityTheft.gov to file a report. The FTC report will be necessary when you dispute the accounts with creditors. Filing a police report may also be necessary. That can feel like a difficult step for some victims reporting family, but it may be required.
Contact each creditor and explain that the accounts were opened fraudulently in a minor’s name. Be prepared to provide the FTC report, proof of age and any other supporting documentation, like a police report. Creditors are required to investigate disputes and remove unverified accounts (7).
A credit freeze prevents anyone from opening new accounts in the minor’s name. This has to be done by mail; it can’t be completed online. Send requests to all three bureaus with supporting documentation.
It’s worth noting that federal student loans — generally obtained by completing the Free Application for Federal Student Aid (FAFSA form) — don’t rely on credit scores. That means if you discover fraud when applying for student loans, your child may still be able to access funding for their education.
Finally, parents of young children should take steps to reduce the risk of identity theft. Don’t share a child’s Social Security number unless it’s absolutely required — most doctors’ offices, for instance, don’t need it. Teach kids about online safety early, as scammers can target children through gaming platforms and social media. And if you’re worried a family member might target your child, consider a pre-emptive credit freeze to protect them.
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Federal Trade Commission (1, 6); Times Union (2); Allstate Identity Protection (3); Equifax (4); Experian (5); Consumer Financial Protection Bureau (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
