Some State Legislatures Tackling Child Identity Theft
Child identity theft is a growing problem that is starting to get addressed by the big three credit bureaus and some state legislatures.
According to a recent study, over 10% of children had someone else using their Social Security number.
Child identity theft is a complicated issue because it can go undiscovered for years until a child becomes an adult and applies for credit. By that time, a thief may have opened numerous credit cards in the child’s name and run up high unpaid balances. It becomes a major headache to clear up.
According to the National Conference of State Legislatures, the following 16 states have legislatures that have passed laws allowing parents or guardians to freeze their child’s credit file:
Consumers in the other 34 states can write their representatives in Congress and in their state legislature, urging them to allow credit freezes for children.
Many security experts feel the big three credit bureaus should be required to allow for credit freezes for minors from all states. Critics say the bureaus may be somewhat reluctant to authorize credit freezes for minors since they would rather consumers pay for expensive credit monitoring services.
As has been previously reported, one answer to the fear of child ID theft is a free service from AllClear ID. ChildScan actively scans databases to find out if thieves are using your child’s Social Security number. If fraud is detected, AllClear Investigators conduct a full inquiry and completely repair your child’s identity.