Child identity theft is a growing problem that affects millions of families each year; in 2018, literally, over 1 million children were victimized. Criminals target children’s unused Social Security numbers to open fraudulent accounts, apply for loans, or commit other financial crimes. By the time these victims discover the theft, often years later, the damage can be significant.
As consumer lawyers in California, we understand how devastating child identity theft can be for families. This guide explores the steps you can take if your child’s identity has been stolen and your legal options for addressing the issue. Give it a read to better understand how you can protect your child against malicious identity thieves looking to take advantage of them!
What Is Child Identity Theft?
Child identity theft occurs when someone fraudulently uses a child’s personal information, such as their Social Security number, to commit crimes like opening credit accounts, filing taxes, or applying for government benefits. Children are prime targets because their credit histories are usually clean, and the theft often goes undetected for years.
Warning Signs of Child Identity Theft
Detecting child identity theft early can help minimize the damage. Here are some common warning signs to look out for:
1. Unexpected Bills or Collection Notices
Receiving bills or debt collection letters in your child’s name is a major red flag.
2. Denial of Government Benefits
If your child is denied government benefits because someone else is already using their Social Security number, it could indicate fraud.
3. Credit Activity
A credit report in your child’s name, especially with accounts you didn’t open, suggests their information has been compromised.
4. IRS Notifications
Receiving IRS correspondence about unpaid taxes or multiple returns filed under your child’s Social Security number can signal identity theft.
Steps To Take If Your Child’s Identity Is Stolen
If you suspect your child is a victim of identity theft, it’s important to act quickly to protect their future financial health.
1. Report the Theft to Law Enforcement
Start by filing a police report with your local law enforcement agency. Include all relevant documentation, such as bills or collection notices.
2. Contact the Federal Trade Commission (FTC)
The FTC provides resources to help victims of identity theft. File a complaint through their website to begin creating a recovery plan.
3. Freeze Your Child’s Credit
Request a credit freeze with the three major credit reporting agencies (Equifax, Experian, and TransUnion) to prevent further fraudulent activity.
4. Notify the Companies Involved
If you discover fraudulent accounts in your child’s name, contact the companies directly to alert them and request account closure.
5. Keep Detailed Records
Maintain a file of all correspondence, police reports, and evidence related to the identity theft. This documentation will be crucial for resolving disputes and pursuing legal action.
Legal Options for Victims of Child Identity Theft
California law offers several avenues to protect victims of child identity theft and hold perpetrators accountable.
1. Filing a Civil Lawsuit
Under California law, you may be able to file a civil lawsuit against the individual or entity responsible for the identity theft. This can help recover damages for financial losses and emotional distress caused by the fraud.
In a scenario in which a child’s identity has been stolen you have the potential to sue the perpetrator of the identity theft (assuming you know who it is) as well as companies or financial institutions that failed to verify the identity of the applicant.
2. Requesting a Fraud Alert
You can request a fraud alert on your child’s credit file. This notifies potential creditors to take extra steps in verifying an applicant’s identity before extending credit.
3. Seeking Compensation Under Federal Law
The Fair Credit Reporting Act (FCRA) provides consumers with protections against inaccurate credit reporting. You can demand the removal of fraudulent accounts and seek damages for noncompliance.
How California Consumer Protection Laws Can Help
California has some of the strongest consumer protection laws in the country, providing additional safeguards for victims of child identity theft.
California Identity Theft Statute
Under California Penal Code Section 530.5, identity theft is a serious crime. Victims can file a report and request that fraudulent information be corrected on their child’s credit record.
Consumer Credit Reporting Agencies Act (CCRAA)
The CCRAA allows parents to place a security freeze on their child’s credit report, ensuring no new accounts can be opened.
Preventing Child Identity Theft
While no one can guarantee 100% protection against identity theft, there are steps you can take to minimize the risk.
1. Safeguard Personal Information
Limit who has access to your child’s Social Security number. Only share it when absolutely necessary. Keep their birth certificate locked away and do not take it out unless absolutely necessary.
2. Monitor Your Child’s Credit
Periodically check whether your child has a credit file. Children under 18 typically shouldn’t have one unless fraud has occurred.
3. Educate Your Child
Teach your child about online safety, such as not sharing personal information on social media or unsecured websites. Monitor their web activity in order to ensure that they aren’t being subject to scams.
Loker Law Can Keep You And Your Family Protected Against Identity Theft
At Loker Law, we understand how devastating child identity theft can be for families. Our experienced consumer protection attorneys have the knowledge and resources to help you fight back against malicious actors who want to take advantage of your children. We’ll guide you through every step of the process, ensuring your child’s rights and financial future are protected.
If your child has been a victim of identity theft, don’t wait to take action. Their financial future is at stake! Contact Loker Law today to schedule a free consultation and learn more about how together we can work to restore your child’s identity and hold those responsible accountable.
