Learn What Thieves Can Do With Your Child's SSN

A new type of identity theft is on the rise and no one is talking about it. It’s called Child Identity Theft, and because it isn’t a trending topic of conversation, families are left unprepared without the necessary tools to protect their children from this rising threat. The most important action a parent or guardian can take is to freeze their child’s credit as early as possible, eliminating the depth of problems a minor and a family can be exposed to. 

One of the primary ways thieves exploit a child’s stolen SSN is by creating a synthetic identity. I’m sure you are wondering what that even means. Synthetic identity theft is when a thief combines a child’s SSN with a fabricated name and birth date. This allows  fraudsters to open credit accounts, take out loans, and even secure credit cards. This type of theft often goes unnoticed for years, allowing the thief to rack up significant debts in the child’s name, which only come to light when the child is old enough to apply for credit themselves.

Another common misuse of a child’s SSN is for employment fraud. Individuals who are unable to work legally in the United States or have really bad credit themselves, might use a stolen SSN to secure a job. This not only affects the child’s future tax records but can also lead to complicated legal issues. A child could grow up to find they owe back taxes on income they never earned, or may face difficulties with the IRS due to discrepancies between their actual earnings and the fraudulent activity conducted using their SSN.

Medical identity theft is another serious concern. Thieves can use a stolen SSN to obtain medical services, prescription drugs, or even surgery using a minors personal information. This can create a dangerous situation where incorrect medical records are generated, potentially leading to life-threatening situations if the child needs emergency medical care. Additionally, families may find themselves dealing with unexpected medical bills and insurance issues as a result of this type of fraud.

Lastly, a stolen SSN can be used to apply for government benefits, such as social security disability or unemployment benefits. This type of fraud can be particularly damaging because it can interfere with the child’s ability to receive benefits they may genuinely need in the future. Moreover, resolving these issues often involves a long and complicated process of proving the child’s identity and disentangling the legitimate records from the fraudulent ones. Understanding these potential misuses magnifies the importance of protecting your child’s SSN.