How to Report Child Identity Theft? Steps for Parents

Child identity theft is a growing threat that can have devastating effects on families, especially when it leads to credit card fraud and misuse of personal information. With cases often leading to tax-related identity theft, parents must verify your identity quickly when they suspect misuse of their child’s information. This guide explains how to report identity theft to the Internal Revenue Service. It covers using Form 14039, an identity protection PIN, and details about the Taxpayer Protection Program. Learn how to report and handle suspicious tax returns to protect your child’s financial interests.

Definition of Child Identity Theft

Child identity theft occurs when someone uses a child’s personal information, such as their Social Security number, to commit fraud, including opening unauthorized credit card accounts, often without the child’s or parents’ knowledge.

Incorrect use can result in lasting effects for a child, such as harmed credit scores and trouble getting loans or jobs later in life.

For example, if a thief opens credit accounts in the child’s name, unpaid debts can linger, evidencing early on a history of financial irresponsibility.

Parents should regularly monitor credit reports for any suspicious activity, possibly using services like Credit Karma or Experian, which often provide free annual credit reports and online verification tools. Establishing a freeze on a child’s credit can also be an effective safeguard against misuse (see our Parent’s Guide on freezing a child’s credit for detailed instructions).

For those interested in understanding the broader implications, this analysis by CNBC highlights the rising trend of identity theft among the youngest generation.

Why It’s a Growing Concern

The rise in data breaches and phishing scams has made child identity theft a growing concern, with a 30% increase in reported cases over the last year alone.

Parents should take measures to protect their children’s identities, such as monitoring their financial accounts and utilizing credit freeze services.

The Federal Trade Commission says that children usually don’t realize their identities have been stolen until they try to get credit. It’s important to take steps early to prevent this.

For instance, consider enrolling in identity theft protection services like LifeLock or Experian, which provide alerts for suspicious activity.

Educate children about online safety, helping them understand the importance of safeguarding personal information.

For further resources, visit the FTC’s official website. Additionally, as highlighted by Michigan’s Consumer Protection division, understanding the common tactics used in phishing and extortion scams can significantly bolster your defenses against identity theft.

Signs of Child Identity Theft

Knowing how to spot child identity theft is important for parents because catching it early can reduce the harm from fraud. One beneficial approach is to monitor your child’s credit for signs of unauthorized activity. Related insight: Credit Monitoring for Children: Importance, Features, and Process

Unusual Credit Reports

One of the first signs of child identity theft may be unusual entries on a child’s credit report, which can be obtained for free once a year from each of the three major credit bureaus: Experian, Equifax, and TransUnion.

To see your child’s credit report, go to AnnualCreditReport.com and follow the instructions to ask for a free report from each bureau. According to USA.gov, this is a vital step in monitoring for potential identity theft.

Review the report carefully for any unfamiliar accounts or inquiries. Look for accounts opened in your child’s name, especially if they appear to be fraudulent or unauthorized. Check for any late payments or collections, as these could indicate misuse of your child’s information.

If you notice anything unusual, reach out to the credit bureau right away to challenge the entries and think about going to a Taxpayer Assistance Center for more support.

Unexpected Bills or Collection Notices

Receiving unexpected bills or collection notices addressed to your child can indicate that their identity has been compromised, often resulting from fraudulent activity.

To verify the legitimacy of these claims, start by directly contacting the creditor using contact information found on their official website, not the notice itself. Request detailed information about the account in question.

Next, check your child’s credit report for any unfamiliar accounts. You can obtain a free report annually from AnnualCreditReport.com, which may help prevent government benefits fraud.

If fraudulent activity is indeed confirmed, file a report with the Federal Trade Commission at IdentityTheft.gov and consider placing a fraud alert or credit freeze on your child’s accounts to prevent further issues.

Missing Tax Refunds

If a tax refund for your child is missing, or if the IRS notifies you of a suspicious tax return filed in their name, it may be a sign of child identity theft.

To address this issue, first, report potential identity theft by filing IRS Form 14039, the Identity Theft Affidavit. This alerts the IRS to the issue and protects your child’s Social Security number.

Next, think about joining the Taxpayer Protection Program. It provides added protection and alerts for any upcoming unusual actions. It’s also wise to monitor your child’s credit (if they have one) and remain vigilant for further notices regarding their Social Security number.

Having all paperwork in order makes it easier to talk to the IRS.

Immediate Steps to Take

Act quickly if you think someone has stolen your child’s identity to limit harm and recover their identity. For effective protection strategies, it’s crucial to understand what PII is and how to safeguard it against theft.

Gather Documentation

Start by gathering all relevant documentation, including your child’s Social Security number, birth certificate, and any suspicious financial documents to support your case.

Gather any letters or documents you have received from creditors or collection agencies that relate to identity theft. These can show what fraudulent actions have taken place.

Keep detailed records of any accounts opened using your child’s name, as these will be important when you need to report them.

Compile a summary of events detailing when you first noticed suspicious activity. This organized approach will facilitate discussions with law enforcement and financial institutions, increasing the likelihood of a successful resolution.

Contact Credit Bureaus

Contacting the major credit bureaus to report the identity theft and place a credit freeze can help prevent further unauthorized use of your child’s information.

Start by reaching out to each bureau’s customer service.

1. For Experian, call 1-888-397-3742 and request a credit freeze; follow with a written confirmation.
2. At TransUnion, dial 1-888-909-8872 and ask for both a credit freeze and a fraud alert, which will last for one year.
3. Contact Equifax at 1-800-349-9960 for a credit freeze and to check on existing alerts.

It is important to make sure each bureau has your correct information to keep your security intact.

Reporting to Authorities

Informing the authorities about identity theft is a key step in regaining control of your child’s identity and ensuring investigations take place. If interested, you can learn more about the necessary steps and resources in our guide on how to recover from identity theft.

Filing a Report with the FTC

Submitting a report to the Federal Trade Commission (FTC) records identity theft and offers a specific recovery plan for victims.

To file a report online at IdentityTheft.gov, start by visiting the website and clicking on `File a Report’. You will need to provide personal information such as your name, address, and Social Security number.

1. Next, detail the types of identity theft you’ve experienced, such as credit card fraud or account takeovers. Include specific examples of fraudulent transactions and any communications you’ve had with financial institutions.

Save your report as it serves as a key document for disputing fraudulent charges and initiating the recovery process.

Notifying Local Law Enforcement

Notifying your local law enforcement agency can further solidify your case, allowing you to file an official police report that may be needed for creditors.

When approaching law enforcement, be prepared with specific information. Bring identification, details of the identity theft (date, location, and description of what occurred), and any supporting documents such as bank statements or fraudulent notices.

Take digital copies if possible. After filing, request a copy of the police report, as creditors may require this for their investigations. This step is important for demonstrating the crime and maintaining your rights during the resolution process.

Working with Credit Bureaus

Dealing with credit bureaus is important for managing identity theft issues and ensuring your child’s financial safety.

Freezing Your Child’s Credit

Putting a credit freeze stops anyone from opening new accounts using your child’s name, giving important protection against identity theft.

To freeze your child’s credit, start by visiting each major credit bureau’s website: Experian, Equifax, and TransUnion.

You will need your child’s personal information, such as their Social Security number and date of birth.

For instance, Experian allows you to freeze online by providing this data and an email address. After submitting the request, they send a confirmation that can take up to a week.

It’s important to keep a written record of these requests for later use.

Monitoring for Future Activity

Regularly check your child’s financial activity to prevent identity theft from happening again. Services provide continuous alerts.

Think about trying tools like LifeLock and IdentityForce. They offer full protection ranging from $9.99 to $19.99 each month, including security software against phishing scams and data breaches.

LifeLock provides services like watching over your credit and helping to restore your identity. IdentityForce, meanwhile, focuses on dark web monitoring and alerts for any suspicious activity.

Both services, including the LifeLock Family Plan, will send instant notifications if unusual transactions occur, allowing for a rapid response. Using these services along with frequent credit report checks can greatly improve your child’s financial safety.

Help from the IRS to Recover Your Child’s Identity

If someone has misused your child’s personal information, including their Social Security number, it is important to fix the situation to avoid lasting effects on their finances.

Correcting Errors on Credit Reports

Identifying and correcting errors on your child’s credit report can help eliminate credit fraud activities and restore their credit history.

1. Start by obtaining a free copy of their credit report from each of the three major bureaus: Experian, TransUnion, and Equifax.
2. Review the reports for inaccuracies, such as incorrect personal information or accounts that do not belong to them.
3. Gather necessary documentation, such as proof of identity and any evidence supporting your dispute, like bank statements or legal documents.
4. Submit your dispute online through each bureau’s website, detailing the inaccuracies and attaching your supporting documents.
5. Expect a response within 30 days, as the bureaus are legally required to investigate and respond to your claim.

Rebuilding Credit History with Taxpayer Protection Program

If identity theft harms a child’s credit record, take proper actions and check regularly to protect their financial choices later.

1. Start by obtaining a copy of their credit report from major bureaus like Equifax and Experian, and consider discussing identity theft issues with the IRS. If inaccuracies are present, file disputes to rectify them.
2. Use a secured credit card; this helps you build credit responsibly by letting you borrow only up to the amount you have deposited.
3. Consider adding the child as an authorized user on a responsible adult’s credit card to benefit from their positive credit history.
4. Commit to ongoing monitoring using services like Credit Karma or Experian to stay updated on any changes.

Preventive Measures with Identity Protection PIN

To stop child identity theft, parents need to take steps to protect their child’s personal information and teach them about keeping their identity secure.

Educating Your Child on Identity Safety

Teaching children about the importance of identity safety can equip them with the knowledge they need to protect their personal information from threats.

1. Start by discussing online safety using simple words and phrases. Explain what personal information is, using familiar examples like their name, address, and school.
2. Introduce the concept of phishing scams by showing them examples of suspicious emails or texts. Tools such as Google SafeSearch can help children learn safe browsing practices.
3. Role-play various scenarios where they must decide whether to share information. Regularly reinforce these lessons and encourage open communication about their online experiences, ensuring a safe environment for them to ask questions.

Using Identity Theft Protection Services

Using identity theft protection services like the LifeLock Family Plan can help parents keep their child’s identity safe.

LifeLock offers features like identity alerts, credit monitoring, and financial fraud detection, typically costing around $30/month. IdentityGuard is another option, emphasizing AI-powered monitoring and costing about $20/month.

Both services offer important monitoring that notifies you when your personal information is at risk, allowing you to act quickly. Choose a service that meets your needs to make sure your finances and identity are safe.

Learn about family plans that offer insurance for the entire family at a reduced cost, helping you save more.

Resources for Parents

Parents can find help and advice on child identity theft through resources from government offices and non-profit groups. For an extensive analysis of this trend, our comprehensive identity theft protection education covers essential strategies for safeguarding your child’s information.

Government Resources

The IRS and FTC provide essential support such as Identity Theft Victim Assistance for those who have experienced identity theft. This includes resources on how to report the theft and regain control of your personal information.

Start by visiting the IRS Identity Theft webpage, which offers step-by-step instructions on reporting theft and claiming tax benefits. The FTC’s IdentityTheft.gov provides a custom recovery plan for you.

Get in touch with your local consumer protection office for help. For credit monitoring, tools like Credit Karma or Experian can help detect unauthorized credit activity.

By using these resources, you can complete the recovery steps and safeguard your personal information moving forward.

Non-Profit Organizations

Organizations like Identity Theft Resource Center offer useful guidance and support to families dealing with identity theft issues.

Another excellent resource is the National Cyber Security Alliance, which provides educational materials and workshops aimed at teaching families the best practices for online safety.

Credit Karma’s identity theft protection service can alert users to suspicious activity for free.

For proactive measures, families can also consider identity theft protection services like LifeLock, which offers a variety of monitoring tools.

Working with these organizations can help families learn more and create better plans to protect their personal information.

Frequently Asked Questions

What is child identity theft and why should parents be concerned?

Child identity theft is a form of identity theft where a minor’s personal information is used to open credit accounts, obtain loans, or commit other fraudulent activities. Parents should be worried because it can harm their child’s long-term financial stability and credit record.

What are the first steps parents should take if they suspect their child’s identity has been stolen?

The first step is to contact the three major credit bureaus (Equifax, Experian, and TransUnion) and request a credit report for your child. You should also contact the Federal Trade Commission (FTC) and file a report. This will help to establish a paper trail and begin the process of resolving the issue.

Should parents contact the police if they suspect child identity theft?

Yes, parents should contact the police and file a report if they suspect their child’s identity has been stolen. This will help to have a record of the incident and can aid in the investigation and resolution of the issue.

What other steps can parents take to protect their child’s identity after reporting it?

Parents can freeze their child’s credit to prevent any further fraudulent activity. They can also monitor their child’s credit report regularly and keep all important documents and personal information secure. Parents can teach their child why it is important to keep personal information private and show them how to spot and report anything unusual.

Is there a particular agency or organization that can help with solving child identity theft issues?

The Identity Theft Resource Center is a non-profit group that provides free help to people affected by identity theft, such as cases involving children. They can provide guidance and resources for resolving the issue and can also work with other agencies on your behalf.

Can parents take any legal action against the perpetrator of child identity theft?

If the perpetrator can be identified, parents can pursue legal action against them. This can involve filing charges and requesting compensation for any money lost. It is important to consult with a lawyer to determine the best course of action for your specific situation.