Child Identity Theft - How to Protect Your Child's Financial Identity

The law specifies that parents must apply for a social security number for each child. Once a social security number is applied to your child, we immediately begin years and years of filling in forms with this magical number on it. From signing children up with a new pediatrician, to getting health insurance, to registering them for sports programs, it seems as though everyone wants personal information.

According to the Federal Trade Commission, child identity theft is increasing at an alarming rate. This means more people - primarily a parent or a guardian - are using a child's social security number to open a credit account, apply for a loan, or rent an apartment. Such actions tend to go undetected until the child is old enough to do this for his or herself.

It's important for parents to be on the look out for 'red flags' such as getting a bill in your child's name from a credit card company or receiving calls from a collection agency looking for your child. Following are ways to protect your child's financial identity:

• Keep your child's social security information and birth certificate in a safe, or in a computer file that is protected from unauthorized access.
• Limit access to your child's social security number by not providing it on non-essential forms, such as when registering them for sports.
• Do not give your child their social security information until they are old enough to understand how to protect this information.
• Shred papers containing your child's social security number.
• Do not carry your child's social security card in your wallet.
• Never give out your child's social security number over the phone or on the Internet.
• Scan your mail for bills, statements, or credit card offers that arrive in your child's name. If bills arrive in your child's name, call the credit reporting agency to ensure there is no balance.

Children typically don't use their social security numbers until their late teens, when applying for a first job, a student loan or a credit card. This makes them easy targets since thieves have years to rack up considerable damage. Two-thirds of child identity theft cases involve relatives. Victims need to file a report with local law enforcement officials and can file a dispute through the Fair Credit Reporting Act to credit bureaus.

Hilary Basile is a writer for MyGuidesUSA.com at http://www.myguidesusa.com, you will find valuable tips and resources for handling life's major events. Whether you're planning a wedding, buying your first home, anxiously awaiting the birth of a child, contending with a divorce, searching for a new job, or planning for your retirement, you'll find answers to your questions at MyGuidesUSA.com.

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