Child Identity Theft: What Parents Need to Know
12/10/2025
Child Identity Theft: What Parents Need to Know
Child identity theft is a growing form of fraud, one that most parents don’t realize is happening until many years later. Unlike adults, children have clean credit files and no financial activity, making them ideal targets for bad actors who want to open fraudulent accounts, take out loans, or commit other financial fraud under someone else’s name. This crime is especially damaging because it often goes unnoticed until the child becomes an adult and tries to start their own financial journey by taking out a student loan or leasing their first apartment. What can parents do to remain vigilant?
In many cases, child identity theft happens when the child’s Social Security number is stolen during a data breach, through unsecured paperwork disposal, or even by someone who knows the child. Because most parents don’t check their child’s credit activity, the fraud can happen for years without anyone being aware of it. In the worst cases, families only become aware of the issue when debt collectors start calling.
The consequences of this can be serious! A child whose identity has been stolen may face bad credit, denied financial aid, tax complications, and more. These problems, thankfully, can be fixed, but the process is often time-consuming and draining for both the child and their parents. Prevention and early detection, therefore, are a parent’s best course of action.
The first step parents can take to protect their children is to keep documents containing their child’s personal information- birth certificates, Social Security cards, medical paperwork – in a secure place. They should properly dispose of any unneeded documents with sensitive information. Parents should also avoid sharing their child’s Social Security number unless it is absolutely necessary and they have fully verified the entity asking for it. Extra caution should be taken when filling out school, sports, or other activity forms that ask for sensitive information.
Another important step is to routinely check whether or not your child has a credit file. Reminder: Children should have no credit report at all. If one exists, it is a red flag that their identity could have been stolen and used for fraud. Each one of the three major credit bureaus allows parents to request a credit check on their child and, if needed, freeze the file to prevent the opening of new accounts. Freezing a child’s credit is one of the most effective ways to keep identity thieves out.
Lastly, parents need to stay alert to warning signs. Mail addressed to their child from banks, credit card companies, or government agencies can signal identity theft. Calls or letters about debts that “belong” to the child are also a big red flag.
With a mix of awareness, proactive monitoring, and some simple safeguards, parents can protect their children’s financial futures long before they take their first steps into adulthood.
Sources:
https://www.experian.com/blogs/ask-experian/what-is-child-identity-theft/
https://consumer.ftc.gov/articles/how-protect-your-child-identity-theft