Better Business Bureau warns of child identity theft scams

JACKSON, Tenn. — The Better Business Bureau is warning families about identity theft scams targeting children.

Identity theft affects around 1 in 50 children and costs families around $1 billion each year, according to the BBB.

Criminals target children because their social security numbers and credit histories are usually clean slates, said Daniel Irwin, communication specialist with the BBB.

“The theft may not be detected for years until the child applies for credit, tries to rent an apartment or applies for a job,” Irwin said.

Warning signs of child identity theft

The BBB said there are several signs that may indicate a child has fallen victim to identity theft, including unauthorized credit or loan statements in the mail, collection calls and letters, pre-approved offers for credit or insurance, and notices from the IRS about unpaid taxes in the child’s name.

Prevention steps parents can take

Parents can take preventative actions to reduce the risk of identity theft.

“Request that each of the three credit reporting agencies — Equifax, TransUnion, and Experian — freeze your child’s credit report. They can create one and freeze it if it does not exist,” Irwin said.

If parents discover their child’s identity has been stolen, they should call the FTC and report the theft. The FTC can help with a recovery plan.

Parents should also contact the fraud departments of companies where accounts were opened and ask them to close the accounts and send a letter of confirmation.

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