Money Management

Protecting Your Child Against Identity Theft

April 2008

Identity theft committed against children is on the rise, according to the Federal Trade Commission, and parents may be unaware until the child is one day denied a driver’s license or a college tuition loan because of the bad record the thief has built in the child’s name. Pennsylvania Institute of Certified Public Accountants (PICPA) offers a series of steps you can take to prevent your child from becoming a victim.

WISE PRECAUTIONS ESSENTIAL
Identity theft occurs when a criminal uses someone else’s personal information to commit fraud, such as running up credit card bills in another person’s name or using their identity to get a driver’s license or other false credentials. Adults have been the victims of identity theft for years, but scammers have found that the personal information of children is just as useful in committing fraud. Therefore, take the same precautions to protect your child’s personal information that you would take for your own data. For example, don’t reveal your child’s Social Security number or other personal data without good reason. When someone requests this information, ask why it is needed and what steps will be taken to protect your child’s privacy. Make sure the information is kept confidential and is in a secure location.

TRUST YOUR INSTINCTS
One sign that your child’s identity has been stolen is if he or she begins to receive solicitations in the mail to open credit card accounts. These offers are usually only sent to people who have established credit records. If your child does not have outstanding debt, you should question why credit card issuers would have his or her name. It may be a sign that someone else is running up debt using your child’s identity.

GET THE FACTS
To get more information, check with the three major credit bureaus to see if your child has a credit report. The Web site of the Identity Theft Resource Center offers a fact sheet for ordering a credit report for your child. You can find it by visiting www.idtheftcenter.org. However, the Center advises that parents should not request these reports unless they have a reason to suspect that someone is using their child’s identity. Submitting a request will open a report for your child if he or she does not have one, and that will make it easier for a potential thief to use your child’s identity in the future.

PROTECT YOUR INFORMATION
As a general rule, you should reduce the opportunity for thieves to obtain personal information for anyone in your family. Keep important documents – such as birth certificates and Social Security cards – in a secure location. Don’t carry your child’s Social Security card in your wallet in case it is stolen.

COLLEGE STUDENTS AT RISK
Young children have been the victims of identity theft, but college students are especially vulnerable. They live in close quarters with other students, and they may not be especially alert to protecting their privacy. They should take care to secure their credit cards and other information, and to keep their wallet and important documents in a safe place. If the college uses students’ Social Security numbers as their ID numbers, ask to change it to another number.

Your local CPA can offer advice on how to prevent your family from becoming the victims of fraud, and can help you with all important financial issues. To find a CPA in your area, visit www.IneedaCPA.org.

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPA practitioners in public accounting, industry, government and education. PICPA is the second oldest state CPA organization in the United States. Use PICPA's CPA Locator to find a CPA in your area.