It’s the year 2030 and your son, James, is off to get his first car. With a sparkle in his eyes and an extra pep in his step, he heads to his local bank to secure a loan for the first big purchase on his own. He feels a sense of excitement and pride knowing all the years of his hard work are about to pay off. But sadly, James’ loan is turned down. How could this be? He has a secure job, money coming in every week, and no lines of outstanding credit. Or does he? James learns that, like 1 out of every other 10 children in this country, he has already had his identity stolen.
A 2012 report done by Carnegie MellonUniversity CyLab found that 10% of children are victims of identity theft. As you walk into your child’s classroom this week, look around. Two kids in the room have been, or will be, victims of identity theft. How do they secure a home loan, open bank accounts, apply for loans, or sign up for simple utilities?
Is there anything you can do to prevent this? Yes. Although there are no federal laws in place at this time, there are currently 23 states that have regulations which allow for some kind of proactive measures for parents when it comes to your child’s credit reports.
That list currently includes Arizona, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Michigan, Montana, Nebraska, New York, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin.
So, where do you go to freeze your child’s credit? Equifax and Innovis offer a free service that allows a freeze on a minor’s credit by parent or guardian. Trans Union, meanwhile, also offers a service that allows a parent or guardian to see if a credit file has already been established on a minor. All you need to take these proactive steps is your child’s birth certificate, a copy of the minor’s social security card, and proof of your identity.
The key is to do something. We can’t sit back and bury our heads in the sand and ignore the problem. With the nature of cybersecurity becoming more and more serious as time passes, the number of victims is sure to increase instead of decrease. Act now to protect your child before it is too late.
