A new research study from Javelin Strategy has shown that over 1-million children were victims of identity theft last year. What’s scary is that most of the fraud is happening before the tots even become active on the Internet. Since they lack financial history and most likely don’t have existing accounts, the children become victim of new-account fraud.
Even scarier? Parents or relatives may be the ones doing it. The study shows that family friends account for 33 percent of the reported incidents. Reportedly, some kids may not even find out they’re victims until adulthood when they’re ready to apply to college or buy a house or car. It can even affect the child’s ability to get scholarships for school. So what can be done?
- Check your child’s credit early. Michelle Dennedy, chief privacy officer of Cisco says to run a credit check and freeze a child’s credit while they’re young to prevent new accounts being opened.
- Teach your child safety and security online. Make sure they understand to never share their info on the Internet.
- Secure physical identification documents. This includes social security cards and birth certificates-make sure they’re locked away.
- Keep an eye on bullying. A child may be more susceptible to giving out info if they’re being bullied into it online or they can “mistake cruel gestures for friendship.”
Source: Javelin Strategy