Is Children and Identity Theft Overblown?

The identity theft stats show a large percentage increase. Identity theft solution companies are marketing that you need to protect your kids from identity theft through a monitoring service. Yes, it is true. Identity theft can occur with children. Yes, the statistics show a large percentage increase. However, the total number of cases of identity theft with children is low.

In addition, the vast majority of these cases involve a family member and/or someone close to the family. Most of the cases that are being reported occurred at a time when it was much easier to have your identity stolen. Although still possible today, it is a little tougher for that to occur.

Having said all of that, this doesn’t mean that we shouldn’t be pro-active as parents. In fact, it is a culture that we should all create within our families. So, here are some tips to make sure that your children don’t become part of the statistic.

1) Don’t give your child access to his or her Social Security number. Besides, what good is it for your children to have that information?
2) Don’t carry any Social Security numbers with you in your wallet, purse, phone, or PDA. I see this all the time. With clients, we need Social Security numbers for establishing accounts. I cannot tell you the number of times someone has just reached into their wallet and pulled out that information. If you lose your wallet, you will have major problems.
3) If asked for a Social Security number, make sure that the person or entity you are giving that information has a secure system. Also, be careful of the manner in which you give that information.
4) Always shred any personal information about your children.
5) Keep all personal information about your children in a secure place. Don’t leave papers lying around in the house.
6) Attempt to run a credit report at the end of each year. If something has occurred, it will show up. If the child is over the age of 13, you can get a free credit report through www.annualcreditreport.com.
7) Be suspicious if pre-approved credit offers start arriving in the mail. That might mean some credit activity has been occurring.

When monitoring your own credit reports, do as much as possible which includes credit monitoring. As for your kids, I have never felt it made sense to pay a company monthly fees for any type of identity theft monitoring for kids. In all cases, being aware and pro-active is always the key.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.