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Protect Your Child’s Identity

November 17th, 2007 | by HelpingU |

The majority of us work hard to build our own good credit rating and to protect our identities from identity theft but neglect to think about protecting the identities of our children. The idea that they are underage gives us the false complacency that a child’s identity is not as valuable as our own when it comes to credit and credit related issues. The haunting truth is that our children’s identities can be even more valuable than our own to identity thieves and criminals.

How can a child’s identity be more valuable that an adults?

A child’s identity is fresh and clean to the credit bureaus and to creditors who are ready to give a first chance to someone without established credit. A child’s identity has no criminal record associated with it and it is unlikely that a child will check their financial records for years, giving the identity thief or criminal plenty of time to use that child’s identity undetected. This is due to the fact that many credit reporting agencies are unable to adequately verify the age of an applicant further than the data that is returned by the credit bureaus. If there is no established record, it is easier to associate an age with a fresh account that it is to an established one.

What can be done with a child’s identity?

An identity thief can use the child’s identity to get jobs, open bank accounts, obtain credit cards, open electric and telephone accounts and even start a business. Anything that could normally be done using a credit rating and credit record can be done using your child’s good name.

Who is most likely steal a child’s identity?

Unfortunately, parents and relatives are the majority of culprits who steal a child’s identity. Parents already have access to the child’s information and can easily prevent the child from learning of the theft until they are of age and need to obtain car loans, school loans, credit cards, seek employment or other circumstances where a credit check might be required.

A parent falls on hard times and figures they will borrow the child’s identity for a few months until they get their finances straight again. The majority of parents who fall into this imbroglio are already poor financial managers themselves. They usually have every intention of paying off the credit card, loan, electric bill or whatever they have put in the child’s name, but normally they continue to fall on hard times and end up ruining the child’s credit instead of fixing their own.

How do I protect my child’s identity

The best method is to be proactive as you would with your own credit. Alternatively, services such as LifeLock can assist parent in maintaining their child’s identity for a nominal monthly fee.