Child Identity Theft is on the Rise and Here's What You Need to Know

When a data breach strikes, you worry about the security of your private information, but what about that of your child? Despite the fact that most young children don’t yet have a financial footprint, thieves are targeting their identities at an alarming rate, according to Experiean, one of the three major consumer credit reporting agencies.

More than 1 million children, some as young as 12 years old, had their identities stolen in 2017 resulting in losses of $2.6 billion and more than $540 million in out-of-pocket costs to the families, according to Javelin Strategy & Research.

What’s even scarier? More than half of child identity theft victims do not find out about their identity has been stolen until they apply for credit—sometimes years later, after much damage has been done.

According to the report, child identity theft is very lucrative for thieves because there is typically no credit history established for the children who become victims. Once scammers get a hold of a child’s Social Security number or other personal information, they can open new bank or credit card accounts, take out loans, and apply for government benefits.