Learn the Warning Signs of Child Identity Theft

Key Takeaways

• Children are prime targets for identity thieves precisely because their credit histories are clean, and few parents think to check them.
• Child identity theft surged 40 percent between 2021 and 2024, and experts estimate one in every fifty children is a victim each year.
• In roughly three out of four cases, the person responsible is someone the child knows – a family member or trusted adult.
• The warning signs are often hiding in plain sight: unexpected mail, denied benefits or a surprise credit file when your child turns 18.
• A credit freeze is one of the most effective – and free – tools parents can use to protect their children right now.
• Free help is available from the Identity Theft Resource Center at idtheftcenter.org or by calling or texting 888.400.5530.

Most parents keep a close eye on their children’s physical safety. Few think to check their child’s credit report.

A child’s Social Security number is, in the eyes of a criminal, a blank slate. An identity with no payment history, no debt and no existing accounts. There is nothing to raise a flag, and often nothing for parents to notice. That combination makes children more than fifty times more likely than adults to have their identity stolen.

The scale of the problem is growing. Current estimates suggest one in every 50 children is a victim in any given year. Yet because children do not apply for credit cards, loans or apartments, fraud can go completely undetected for a decade or more. By then, the damage can take years to undo.

What Is Child Identity Theft?

Child identity theft occurs when someone uses a minor’s personal information, most commonly their SSN, to commit fraud or access benefits they are not entitled to. That information can be used to open credit card accounts, take out loans, apply for government benefits, file fraudulent tax returns or even obtain employment.

Unlike adult identity theft, which victims typically discover within a few months, child identity theft often goes undetected for years. Criminals know this. A child’s identity can be used quietly for years before anyone looks.

Understanding where the threat comes from and what it looks like when it happens is the first step to stopping it.

How Does Child Identity Theft Occur?

Child identity theft does not always come from a shadowy stranger or a distant criminal. In fact, the source is often much closer to home.

Familial Fraud

This is the aspect of child identity theft that surprises parents most. Research from Javelin Strategy & Research consistently finds that roughly three out of four cases of child identity theft involve someone the child knows, such as a parent, sibling, extended family member or other trusted adult. This is referred to as familial fraud.

People with easy access to a child’s information, like Social Security cards, school forms and medical records, do not need to work hard to exploit it. In some cases, adults have used a child’s identity to open credit cards, take out loans, or receive government benefits, leaving the child to discover the destruction years later when they enter adulthood.

Data Breaches

Schools, pediatric offices, summer camps and sports programs all collect children’s personal information, and not all of them protect it equally well. When those organizations experience a data breach, children’s names, SSNs, dates of birth and addresses can end up being sold to other identity thieves.

The 2024 breach of PowerSchool, a widely used school software platform, exposed personal records for more than 60 million students and teachers across thousands of school districts. It is one of the largest breaches of student data in history, and its full impact will likely unfold over years as that data is used in fraudulent activity.

Cyberattacks on schools have more than doubled in recent years, making school systems one of the fastest-growing sources of child identity exposure. Parents should ask their child’s school what data is collected, how it is stored and what the school’s response plan is in the event of a breach.

Online Scams and Phishing

Children and teenagers spend significant time online, and scammers know it. Phishing attacks, like fake emails, texts, social media messages and websites, are not limited to adults. Children can be targeted directly, or they can be the entry point through which a scammer reaches a parent or guardian.

Children are generally more trusting of digital communications than adults, and less likely to recognize the signs of a scam. A message appearing to come from a gaming platform, a school or a popular app may be all it takes.

Oversharing on Social Media

A child’s full name, date of birth, school name and hometown can be enough for an identity thief to begin building a profile. When social accounts are set to public, that information is available to anyone. Avoid sharing personal information about your child online, and educate your child on the dangers of oversharing as well. 

The Warning Signs of Child Identity Theft

Since children do not independently manage finances, the warning signs of child identity theft tend to show up in unexpected places – and they are easy to miss if you do not know what to look for.

Mail Addressed to Your Child

Children typically should not be receiving financial mail. If letters arrive addressed to your child from a bank, credit card company, debt collector or the IRS, take them seriously. This is one of the clearest indicators that someone has used your child’s information to open accounts or file documents in their name.

Notices or Calls from Debt Collectors

If debt collectors are calling or sending correspondence about debts in your child’s name, someone has likely used their identity to open accounts that were never paid. Cross-check against your own accounts first to rule out any misdirected billing, but if your accounts are clean, investigate further.

Denied Government Benefits

If you apply for government assistance on your child’s behalf, such as healthcare coverage, nutrition programs or other benefits, and you are denied because benefits are already being received under your child’s SSN, that is a strong signal that their identity has been stolen.

The same logic applies to student financial aid. If your family meets the financial criteria for assistance but receives a denial, it is worth checking whether someone has already used your child’s information to claim benefits or take out loans.

An IRS Notice in Your Child’s Name

Children do not file tax returns. If you receive a notice from the IRS stating that your child failed to pay income taxes, or that their SSN was already used on a filed return, their identity has almost certainly been compromised. Contact the IRS immediately and follow their identity theft resolution process.

An Existing Credit File

A healthy child should have no credit file at all. If you request a credit check for your child and discover an existing file, that is a clear sign their information has been used without authorization.

You can check whether a credit file exists for your child by contacting each of the three major credit bureaus: Equifax, Experian and TransUnion. If a file exists where it should not, ask for a copy and review it for any unfamiliar accounts.

Credit Issues in Adulthood

Many victims of child identity theft discover it only when they enter adulthood and try to access financial products for the first time. Applying for a student loan, renting an apartment, financing a car or even getting a job that requires a credit check can all surface a history of fraud that was building quietly for years.

If your child is approaching adulthood and you have never checked their credit, now is the right time to do it.

What to Do If Your Child’s Identity Has Been Stolen

Discovering that your child’s identity has been stolen is alarming, but there are clear steps you can take.

• Document everything. Save all letters, notices, bills or other communications that relate to the fraud. Note dates, account numbers and any names or addresses associated with the fraudulent activity.
• Contact the credit bureaus. Reach out to Equifax, Experian and TransUnion, if you have not already, to place  a credit freeze. Request copies of any credit files associated with your child’s SSN.
• Report to the FTC. File an identity theft report at IdentityTheft.gov. The FTC will provide you with an official report form.
• Contact the IRS if a tax return was filed. If your child’s SSN was used to file a fraudulent tax return, call the IRS Identity Protection Specialized Unit at 800.908.4490. You may also need to file IRS Form 14039, the Identity Theft Affidavit.
• Report to local law enforcement. Filing a police report creates an official record that can support your case as you work to clear your child’s name.
• Contact the ITRC. The Identity Theft Resource Center provides free, confidential support to victims of identity crime. Our advisors can help you understand what steps to take, in what order, and what to expect throughout the recovery process. 

Call the ITRC

Child identity theft is one of the more quietly devastating forms of identity crime, precisely because it so often goes unnoticed for years. By the time a victim discovers what happened, the theft may have stretched across most of their childhood, and the cleanup can take just as long.

The good news is that parents have real tools to prevent it. A credit freeze costs nothing. Checking for an existing credit file is an investment of time in your child’s future. Talking to your child about safe online habits is something you can start today.

And if something has already happened, you do not have to navigate it alone. Reach out to the ITRC by calling 888.400.5530.