Kids are especially vulnerable to credit-card fraud because thieves "borrow" their Social Security number for years without anyone finding out. Don't let it happen to your child.
With more than 140,000 incidents each year, child- identity theft is one of the nation's fastest-growing crimes. If that doesn't shock you, this might: Your kid may already be a victim. That's because this type of fraud often goes undetected until a child applies for his first credit card -- and finds out he's racked up thousands in phony debt. Erik Larson, president of the consumer-information resource NextAdvisor.com, says taking these precautions will help safeguard your child's good name.
Be Stingy With Her Social Security Number
If your school or doctor's office requests it, just say no. Don't give it out to your child or carry it in your wallet either (in case it gets lost or stolen).
Read (and Dispose of) the Mail Carefully
Shred anything addressed to you or your child before throwing it out it. Also watch for preapproved credit offers, bills, or collection notices in your child's name. These are red flags that someone may be using his identity. If possible, trace the offer back to the source and demand that your child's name be removed from the mailing list.
Monitor Social-Media Use
Identity thieves troll networking websites, so stress to your Club Penguin user the importance of never giving out her full name, birthday, phone number, or house address to anyone online. Know your child's logins and passwords for her online and e-mail accounts, monitor her usage closely, and periodically change the password on all the sites she frequents.
Protect Your Computer
Install software to thwart hackers, such as Norton Internet Security ($40 for a one-year subscription; norton.com). You should also avoid keeping sensitive data on your computer. Store it in a secure location, such as in a safe or on an encrypted flash drive.
Safeguard Smart Devices
Set up a password for your cell phone, tablet, and laptop. Otherwise a thief can instantly gain access to your data or accounts. You should also install an app featuring a GPS tracker and a remote data-eraser that can wipe out any information stored on the device, such as Lookout (free for iPad, iPhone, Android, and Kindle; lookout.com).
Scary ID Stats
- About one out of ten kids has had someone else use their Social Security number.
- Children are targeted for identity theft 35 more often than adults.
- About 6 million parents and kids improperly share identity information each year.
3 Services to Safeguard Your Family
It's free to get a copy of your child's credit report at all three credit bureaus. But these ID-protection services may be worth the fee, for your peace of mind. They monitor your credit report and will help you resolve problems if your child becomes a victim.
- Identity Guard Kid Sure
It tracks data sources (including the DMV and criminal and utility records) for misuse of Social Security numbers. $15 per month per adult plus $10 per month for all kids; identityguard.com
- TrustedID ID Essentials
This plan has anti-phishing software and anti-spyware. Plus, it helps stop credit offers from flooding your mailbox. $28 per month for unlimited family members; trustedid.com
- Equifax Complete Family Plan
Along with ID protection, you'll get credit scores and a profile from all three bureaus each year. $30 per month for two adults and up to four kids; equifax.com/family
Originally published in the August 2013 issue of Parents magazine.