Children face a significantly higher risk of identity theft compared to adults. In under an hour, you can secure their sensitive information.

Freezing your child's credit is akin to childproofing your home: it's all about protection. Here’s how to freeze credit for your kids and why it’s a necessary measure.

A Growing Concern

Recent findings indicate that identity theft impacts one in every 50 minors, costing families nearly a billion dollars each year. This is because a child's Social Security number is a prime target for identity thieves; these numbers can be used to create new credit accounts without being cross-verified against birth dates.

Thieves often engage in synthetic identity theft, which involves mixing a real Social Security number with a fictitious name and address. This allows them to establish credit, sometimes running up bills before disappearing without a trace, leaving the stolen Social Security number behind, according to the Identity Theft Resource Center.

In many cases, the identity thief may be someone trusted, like a family member.

Steps to Freeze Your Child's Credit

While freezing a child’s credit isn’t overly complicated, it does require some effort. You’ll need to request that the credit bureaus create and then freeze a credit report for your child. If a report already exists, it could indicate that their identity has already been compromised.

Each of the three major credit bureaus has its own process, all of which require proof of identity for both you and your child. While some documentation overlaps, not all of it does.

To streamline the process, gather three copies of the following:

  • Birth certificates for both you and your child (if applicable). Foster parents or guardians need authorization documents.
  • Social Security cards for both you and your child.
  • Your government-issued identification.
  • A utility bill, bank statement, or insurance document showing your name and address.

Next, you’ll need to fill out or write:

These documents come with the necessary addresses. It’s wise to send sensitive information via registered mail.

Once processed, the credit bureaus will confirm the freeze and provide instructions for setting up a PIN or password to lift it. Store this information securely, but know that if it’s lost, your child can still unfreeze their credit at age 18 by verifying their identity.

Time Commitment

Experts recommend setting aside about an hour to complete this process, though the actual time may vary based on your organization level. If your documents are readily available and your printer is functional, you can finish quickly. The freeze should become effective within a week of the bureaus receiving your documentation.

This safeguard primarily prevents others from using your child’s information to open credit accounts. However, it’s crucial to take these precautions since issues may not surface until years later when your child attempts to apply for credit.

Identifying Victims

After learning how to freeze credit for your kids, consider what to do if they’ve already been victims of identity theft.

Axton Betz-Hamilton, now an expert in family financial abuse, discovered her identity theft at age 19 when moving into her first apartment. She received a letter from a utility company stating her deposit would be increased due to credit issues.

Upon requesting her credit report, she found a lengthy document filled with fraudulent accounts spanning back to when she was a minor.

Reporting Identity Theft

Victims can report incidents to identitytheft.gov or contact local authorities.

However, many hesitate to report when the thief is a family member. Betz-Hamilton’s mother used her personal information without her knowledge, and she only learned of it posthumously.

While sympathizing with some identity thieves, Velasquez notes that desperate situations may lead individuals to misuse their child's data, often without realizing it's illegal.

If you’ve used your child’s information thinking it was acceptable for their benefit, it’s important to seek legal advice.

Identity theft can occur even before a Social Security number is assigned if a criminal happens to guess the digits.

Additional Protective Measures

Safeguard Social Security numbers. If a form requests one, leave it blank or inquire if the last four digits or an alternative ID will suffice and how that information will be protected.

Store documents containing your child’s information, including tax returns, in a secure location.

Be cautious with other personal data, like health insurance numbers. If you receive marketing materials or preapproved credit offers in your child’s name, investigate further.

After freezing your child's credit, consider assisting a vulnerable adult or family member in doing the same online.

Say something like, “This is a great way to protect your finances; let me help you through it,” as suggested by Betz-Hamilton.

It may be a hassle now, but it’s the best preventive measure available.