SALT LAKE CITY — Identity theft of children is often overlooked and has rapidly increased over the last decade. Child identity theft occurs when the Social Security number or other personal identifiers of a minor are used by another person for the imposter’s personal gain.

More than 1 million children were victims of identity fraud in 2017, and two-thirds were under the age of 8, according to a 2018 study by Javelin Strategy & Research. Resulting losses were $2.67 billion, with families incurring over $540 million in out-of-pocket expenses.

The Federal Trade Commission reported only 6,500 cases of child identity theft occurred in 2003.

The 2018 study also found that minors who were bullied online were nine times more likely to become victims of fraud than minors who were not bullied.

Children and teens are often easy targets of identity fraud as thieves typically get an eight to 10-year head start on them, since most minors don't discover an identity theft issue until years later when they attempt to apply for a passport, driver's license, student loan, etc.

Parents or custodial relatives are usually the first to discover the identity theft. Discovery of child identity fraud often comes:

• When attempting to open a checking/savings account or higher education fund for the minor. In this scenario, a parent or custodial relative typically learns that an account with that Social Security number already exists or that a new account is denied due to prior worthless checks on file at Chex Systems

• When pre-approved credit card offers arrive in the mail bearing the name of the minor child

• When credit cards, checks, invoices or bank statements that were not opened by the minor are received in the mail

• When debt collection agencies call and/or send demand letters about accounts that were not opened by the child

• When a minor is denied a passport, driver's license or state identification card because another individual has obtained one using their Social Security number. The imposter may even have accumulated civil or criminal traffic citations in the child's name

• When a law enforcement officer or process server knocks at the door with a warrant for the arrest of the child or a summons indicating the start of civil litigation

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How to fight identity theft like a pro

I'm an identity management professional for a large, global organization. I am also a victim of identity theft.

With the enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act in late September, Congress instituted several important changes to the Fair Credit Reporting Act. Effective Sept. 21, the credit reporting agencies of Equifax, Experian and TransUnion are required to provide a global credit freeze to consumers — including children — free of charge. Previously, 42 states allowed credit bureaus to charge consumers for locking their credit report and made it more difficult to lock or otherwise block a minor's report.

A common misconception that many parents have is that creditors and credit reporting agencies have a verification method when it comes to the age and identity of an applicant who is a minor. However, most creditors rely solely upon the written application when rendering a credit-granting decision and the age of an individual becomes "official" with Equifax, Experian and TransUnion upon the first application for credit.

There are some instances that appear to be child identity theft but are not. Receiving a single pre-approved credit card offer in your child's name might upset you as a parent, but it might only be an innocent marketing tool sent by a potential creditor because you opened a new account or higher education fund for your minor. A quick check of credit reports at the respective credit reporting agencies will let you know if you should be worried or not.

Currently, all three credit reporting agencies have automated request systems. You should contact them annually to request a credit report on your children. If you are advised that no file exists, your minor child is safe and you should lock or otherwise freeze their Social Security number from use.

You can place a child credit freeze on their websites: Equifax, Experian and TransUnion.

If your minor child is the victim of identity theft, file a police report with your local law enforcement agency immediately. Federal law mandates that the Equifax, Experian and TransUnion credit reporting agencies investigate and correct all identity theft issues, but only with verifiable reporting of a crime. Without the police report and a fully executed FTC Identity Theft Affidavit, creditors and credit reporting agencies are not required to act upon your complaint.

Check out this Federal Trade Commission resource for more information about what to do if you are a victim of identity theft.

Bill Lewis is principal of William E. Lewis Jr. & Associates in Fort Lauderdale, Florida — a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity.

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