What You Need to Know About Child Identity Theft and How to Stop It
As parents, we are deeply invested in the safety and well-being of our children. From baby proofing our homes to teaching them about the dangers of talking to strangers online, we take proactive steps to shield them from harm. But one danger that often goes unnoticed is child identity theft—an invisible threat that can have long-term consequences on a child’s financial future.
Many parents don’t think about this issue, and that’s understandable. Unlike tangible threats, identity theft happens behind the scenes, often without any immediate red flags. Typically, it’s discovered a decade later when a child applies for a student loan or credit card. By then, the damage has already been done.
The Reality of Child Identity Theft
If your child has a social security card, they are at risk of identity theft. The problem starts as soon as their social security number is assigned, often at birth. Fraudsters see a child’s social security numbers as a gold mine because they are clean slates with no credit history.
According to a study conducted by Javelin Strategy & Research, more than 1 million children were victims of identity theft in 2022, resulting in $1.4 billion in losses. These numbers are staggering and highlight how vulnerable children are to this type of fraud.
Criminals can use your child’s identity to:
Open credit cards and rack up debt
Take out fraudulent loans
Collect government benefits under false pretenses
Open utility accounts such as electricity or phone plans
Apply for a mortgage or car loan
Even get medical treatments
Once this information is compromised, it can be sold on the dark web multiple times, creating ongoing problems for years to come. Unfortunately, the three credit bureaus—Equifax, Experian, and TransUnion—don’t automatically flag these fraudulent activities because they treat social security numbers and personal details as separate entities.
How to Spot Child Identity Theft
These red flags could be a sign that someone has stolen your child’s personal information:
If you start receiving offers for pre-approved credit cards in your child’s name, it may indicate that someone has used their identity to apply for credit. Similarly, receiving bills or collection calls for services you never ordered under your child’s name is another alarming signal.
Another major warning sign is if claims for government benefits are rejected due to your child’s social security number already being in use. Additionally, if the IRS notifies you that your child didn’t pay income taxes or that their SSN was used on another return, it’s critical to act immediately. These signs indicate that fraudsters may already be using your child’s personal information for illegal activities.
How Identity Thieves Steal Children’s Information
The first step in identity theft protection is understanding how criminals access a child’s personal details. There are several ways this can happen:
1. Parental Oversharing on Social Media
Many parents unknowingly expose their child’s personal data online. Consider a common scenario: a proud birth announcement on Facebook or Instagram that says, Meet Ava Charlotte Riddle, born February 10th, 2025, in Sugar Land, Texas.”
In that single post, a parent has shared:
The child’s full legal name
Date of birth
Place of birth
This is valuable personal information that identity thieves can use to fabricate documents, apply for credit cards, or impersonate the child online. Prevent identity theft by being cautious about what you share on social media and adjusting privacy settings.
2. Data Breaches
Large-scale data breaches are a major contributor to child identity fraud. Consider the recent PowerSchool data breach. Cybercriminals target government agencies, healthcare providers, and schools—places where a child’s social security number may be stored.
One notable example occurred in South Carolina in 2012, where a phishing attack compromised the personal information of 6.4 million residents, including children. The breach exposed 3.6 million social security numbers, leaving many families vulnerable to identity theft for years.
3. Family Threats
Shockingly, a significant percentage of child identity theft cases are committed by people the child knows—relatives, caregivers, or even family friends. Since children don’t check their credit reports, these individuals exploit that fact and misuse the child’s social security details for their own financial gain.
My Experience Freezing My Son’s Credit
In 2023, I took proactive steps to freeze my son's credit to ensure his financial future remained protected. The process involved submitting paperwork to all three credit bureaus—Equifax, Experian, and TransUnion—and verifying my identity as his legal guardian.
Less than a year later, our bank experienced a data breach, compromising sensitive information, including social security numbers. Fortunately, because I had already placed a credit freeze on my son’s file, his identity remained safe. The fraudsters who attempted to misuse his information were blocked from opening new accounts or taking out loans.
This experience reinforced the importance of freezing a child’s credit before a breach occurs. It’s a relatively small effort compared to the potential consequences of dealing with identity theft after the fact. My free guide will help walk you through the process with each bureau.
The Financial and Emotional Toll of Child Identity Theft
The impact of identity theft on children goes beyond financial consequences. When a child’s credit is misused, it can:
Delay their ability to secure student loans
Prevent them from renting an apartment or buying a home
Create stress and anxiety over credit reports
Lead to prolonged legal battles to clear fraudulent debts
Victims often experience difficulties when trying to rebuild their credit scores, and in some cases, identity fraud has lingering effects well into adulthood. This is why early identity theft protection is essential.
How to Prevent Child Identity Theft: Final Thoughts
Taking action now can save your child years of financial hardship later. As parents, we must be vigilant in identity theft protection and proactive in shielding our children’s **personal information. By following these steps, you can help secure your child’s financial future from potential fraudsters.
For a free guide on freezing your child’s credit, download my step-by-step instructions today.
