Child identity theft occurs when someone uses a minor’s personal information, such as name, date of birth, or Social Security number to fraudulently gain credit or other benefits. Creditors do not verify the age of applicants, so the discovery of this crime can go undetected until a child becomes an adult and seeks credit, only to find a history of falsely obtained credit in existence. The damage caused by child identity theft can vary from a single fraudulent bill in collections to a foreclosed mortgage.

Here are some signs that your child may be a victim of identity theft:

• You receive credit card offers in your childs name.
• You receive bills or collection notices in your childs name.
• You are turned down for government benefits because the benefits are already being paid to another account using your childs Social Security number.
• You are contacted by the IRS because someone has already claimed your child as a dependent on their tax return.

To prevent child identity theft, parents and guardians of children under the age of 16 can place a security freeze on their minor child’s credit record. The placement of a freeze prevents the credit reporting agency from releasing the child’s credit report to third parties and also prevents anyone from opening a credit account in the child’s name.

If you suspect that your childs identity has been stolen, you should take the following steps:

• Obtain a credit report with your child’s personal information by contacting the three credit agencies: Equifax, Experian, and TransUnion.
• Report the suspected identity theft to the credit bureaus and ask them to confirm in writing that they have no file on your child.
• Contact the companies where the fraud occurred and ask them to close the accounts.
• File a report with the Federal Trade Commission (FTC) and your local police department.
• Consider placing a fraud alert or credit freeze on your childs credit report to prevent further fraud.

It is important to be vigilant about protecting your child from becoming a potential victim of identity theft.