Identity theft is a very real problem in our technological world. As technology improves, identity thieves have more and more opportunities to take advantage of that technology for their own benefit. And believe it or not, your kids are the most susceptible. Since they have no credit, you won’t receive statements from the bank to alert you that something’s wrong. If you’re not watchful, you may not even know about an identity theft until you or your child does finally apply to open that line of credit. So the real question is, how do you protect your child from identity theft, if you’re not likely to get notifications about it? Here’s a few ways you can ensure you’re doing your utmost to protect your child from identity theft:
Keep Information Safe
Your obvious first steps are ensuring that important files, like birth certificates, social security cards, and passports are locked up and safe. Whether this means you lock it up in a safe, or you have a secure spot in your home, make sure you know where they are, and they’re kept there at all times. You need these to prove your child’s identity in certain situations, like going to the doctor or for travel, but it’s important you bring them right back when you’re done with them. Many people are tempted to keep social security cards in their wallet, but this is something to avoid. Your wallet can be taken, lost, or stolen at any time, and that’s not information you want in the hands of others.
Be Aware When Information Is Necessary
Know that there are situations where you have to give out your child’s personal information, but you should be aware of the risks, and always ask why someone needs this information. Many sports teams require a copy of a birth certificate, and you need to know that whoever has control of that information will keep it in a safe place, and handle it with care. It’s important that you only give that information out when it’s absolutely necessary.
Know the Signs of Identity Theft
Though it may be difficult to tell if your child’s identity has been stolen, there are a few signs that can alert you that something has gone wrong:
- Turned Down for Medicaid: If their social security number has already been used, it’s possible that you child will be turned down for benefits from the government.
- Notice from the IRS: If you get a notice from the IRS that says your child has not paid their taxes, or that your child was claimed on someone else’s taxes, this is a very good sign that someone is using their social security number.
- Collections: If you get a bunch of collection calls or bills addressed to your child, their identity may have been stolen.
- Denied Account: If your child is denied a bank account, this could be because someone has already run up their line of credit. In the same vein, it’s likely that they won’t be able to receive a driver’s licence if someone else has already gotten one with your child’s information.
- Loan Offers: When your child is receiving a lot of offers for pre-approved credit cards and loans, it’s possible their identity has been stolen. While some financial companies do try to get creative and send offers to minors, if your child is receiving a lot of offers that are usually meant for adults, it might be time to check their credit report.
Request a Free Credit Report
If you’re worried that your child’s identity may have been compromised, you can always check their credit report for free. While it is a little complicated, since they probably don’t have a credit line yet, you just send in a form to each of the three major credit reporting companies, Equifax, Experian, and TransUnion, and they should be able to give you a full report. If there is no report, that’s a good thing, because it means no one has stolen your child’s identity. Just make sure you use the SSN check, since most thieves are likely to change names and birth dates. This can be a bit of a hassle, so you don’t have to do it every year, but at least make sure you do check this every few years, to ensure your child’s identity is protected.
Make Sure Your Kids are Educated About Safe Internet Use
The internet is the number one way to get ahold of personal information, and if your kids aren’t aware of the dangers, they’re unlikely to recognize a scam if one pops up while they’re on the internet. Make sure you tell them to keep all personal information private, and warn them against creating any accounts or giving their names out without your supervision.
What About Freezing?
It’s possible that someone has recommended you freeze your child’s credit report. Essentially, when you freeze your credit file, a thief can’t take credit out in your name. It’s just not possible. This is a really good option for people whose identity has already been stolen, but it might not be the best option for your child.
In fact, unless your child’s identity has been stolen, there won’t be a line of credit open to freeze. Some people will open an empty credit file for their child, just in order to freeze it, but that’s not an option that’s available in every state, and some experts suggest that it might be better not to even open their line of credit at all, until they need it of course.
If someone tries to take out money using your child’s identity, and they don’t have a credit report, the lender will immediately be notified of that, and the fact that the individual is a minor. This usually provokes an investigation, which can lead to the apprehension of the criminal.
Check Your Insurance Policy
In the event that your child’s identity is stolen, or if you’re concerned about the possibility, you should turn to your insurance policy. While some homeowners’ policies offer Identity Theft Coverage automatically, you may also need to purchase a separate stand-alone policy. Identity theft insurance covers you and your child in the event that anyone in your household’s identity is stolen. Most policies will provide reimbursement for expenses incurred during the theft, including costs associated with the credit restoration process, purchases made by the thief, and sometimes even attorney fees. With identity theft on the rise, it’s a good idea to protect yourself from what could be a very stressful, and expensive theft.
Identity theft can really hurt your child in the future. From the inability to obtain a driver’s license to being declined for student loans, it’s not something you can afford to have happen to your child. If you have questions regarding identity theft insurance, and if it might be right for your family, give one of the insurance experts at Doyle & Ogden a call! We’ll help you weigh the pros and cons, and if you decide you might be interested in a policy, we’re connected with over 10 different insurance companies, so we’re sure to find you the best coverage for a better price! Call us at 616-949-9000 or submit a request for a free quote online today!
