When most people hear the term “identity theft,” what comes to mind is likely an adult’s credit card getting hacked or their social security information being compromised. You wouldn’t think that identity theft would as common with a much, much younger generation of Americans — like kids.
Unfortunately, kids are becoming a favorite target for scammers, as it’s estimated that more than 1 million children are annual victims of identity theft, with the average amount stolen totaling more than $2,300. According to a report from Javelin Strategy & Research, about two-thirds of those children who were hacked were under 7 years old.
It’s a disturbing trend, and perhaps it’s even more disturbing when you consider that the vast majority of these children being hacked don’t yet have credit or debit cards, and bank accounts. But what they do have are very valuable digits: social security numbers. But here’s what can be really scary about your child getting hacked by a scammer. In some situations, a child (and their parents) may not even be aware that their child was hacked until they’re older and go to apply for a credit card. After all, since children aren’t taking out loans or paying bills, they’re far less likely to take advantage of their right to pull a complimentary credit report once a year.
So how can you keep your child safe from a scammer? Here’s a look at some tips:
- Know who has their social security numbers: Are grandma and grandpa opening up college savings accounts or buying bonds for your kids? They’ll need to know their social security numbers in order to do so. Has the bank with their college savings been hacked? Has anyone been snooping in your safe deposit box for your kids’ social security cards? The first step to keeping your children safe from a scammer is first knowing who has access to or knows their social security numbers, as that is the key data that identity thieves are looking for. You should be protecting this data to the best of your ability, but certainly there are some circumstances where family members may need to know such information. Just be sure you know and trust these family members before disclosing said information. It’s estimated that up to 60 percent of all child hackers know their victims, which is a particularly alarming statistic.
- Monitor your child’s online activity: If your child is old enough to be active on the Internet, then this too can pose a threat. Hopefully as a parent, you have some sort of parental security settings on any devices your kids are accessing the world wide web on, but it can still behoove you to take the time to teach your kids safe online behavior. Make sure that they’re not releasing any personal information that could open them up to risk, and be sure that you go over the common signs of a scammer so your children know what to look out for.
- Freeze their credit: Perhaps the best way to ensure that your child does not become a victim of identity theft is freezing their credit. It’s simple to do and essentially prevents anyone from opening up a line of credit in your child’s name. All you need to do is contact each of the three major credit bureaus — TransUnion, Equifax and Experian — and inform them that you’d like the account frozen. Then, once your child gets to an age where they need to open a line of credit, you’ll need to re-contact all of the credit bureaus and un-freeze their credit. The only negative about freezing your child’s credit is that some states restrict this. Make sure you take the time to understand your state’s rules and regulations before acting.
-
Is your child at risk for identity theft? If you think so, be sure to take the time and put in the effort to stop any at-risk behavior before it is too late.
Regards,
Ethan Warrick
Editor
Wealth Authority
