Why you should freeze your child's credit, and how to do it

Child identity fraud is no joking matter.

One in 43 kids will have their personal information exposed, according to Javelin. It can impact your child's life for years to come, from having poor credit scores to financial aid being withheld and employment being denied. In some instances, families aren't even aware of the theft until their child tries to buy their first car or apply for federal student aid.

Children are especially vulnerable to identity theft because those under the age of 18 typically do not have credit reports. This gives thieves a blank slate to apply for government benefits, open a bank account, apply for loans, sign up for utility services or even rent a place to live, according to the Federal Trade Commission. Kids active on social media are at the greatest risk, and the prevalence of these apps is only increasing as the average age of its users decreases.

And it's an expensive crime to combat. Resolving a case of identity fraud costs a household an average of $1,128, according to Javelin — $752 for the fraud itself and $376 in out-of-pocket charges.

Some parents will opt to request a credit freeze for their child, making it more difficult for the child's information to be used to open accounts. If this is something you are considering, here's what you need to know and how you can request a freeze with each of the three major credit agencies.

What does a credit freeze for a minor entail?

A freeze for a child, called a Protected Consumer Freeze, can only be requested by a parent, guardian or person with a valid power of attorney. It is free and does not affect credit scores.

Once placed, the freeze cannot be temporarily lifted and will remain until a parent or guardian requests its removal. A minor can also request its removal once they are 16 or older, according to TransUnion.

What red flags should you look for?

Signs that your child's identity may have been stolen include, but are not limited to:

• Receiving calls or letters about bills in your child's name
• Getting a notice from the IRS about taxes your child owes
• Being turned down for government benefits
• Receiving pre-approved credit card offers in the mail
• The denial of a child's student loan application

How to freeze your child's credit

You'll need to send separate requests to all three major credit agencies. As of August 2024, all requests must be sent by mail, following directions listed by Equifax, Experian and TransUnion.

Documents you will need to submit to prove your identity, your child's identity and your relationship to the child for the three requests include:

• Three stamped envelopes
• Three copies of the child's birth certificate
• Three copies of the child's Social Security Number card
• Three copies of the parent's driver license or state ID card, with a name matching the birth certificate
• One copy of proof of address, such as a bank statement, utility bill or insurance statement
• The required form or written statement for each bureau

For Equifax, you will need this security freeze request form. Experian's form is located under "Add or remove a security freeze for a minor." For TransUnion, you will need to write and print a written request to place a protected consumer freeze on your child's file.

If your name is not listed on your child's birth certificate, print three copies of documentation of guardianship, such as a court order, power of attorney or foster care certification.

Some bureaus will also accept copies of the parent's SSN or birth certificate instead of a driver's license or state ID card.

Only one parent needs to submit documentation. Do not send in original documents — credit bureaus will destroy the copies once they are processed.

Be sure to double check all required forms and mailing information on the Equifax, Experian and TransUnion websites.

What other actions should you take if your child is a victim of identity theft?

Aside from contacting the credit bureaus to freeze your child's credit and alert them of fraudulent activity, contact the Federal Trade Commission to get a recovery plan.

Contact the fraud departments of companies where scammers opened accounts; ask them to close the account and send a confirmation letter. Note that you may need to provide a copy of your child's birth certificate and a police report, which you can obtain by contacting your local law enforcement agency.

Other preventative measures you can take

The most important action is to remain vigilant. According to Javelin, more than two in three cases of child identity theft are done by people who know the kids.

Protect your child's identity documents, such as their birth certificate, Social Security card and insurance cards. Avoid sharing more information than what is necessary on forms, such as those requested by schools or activities. And if know your kid is online, make sure they understand how to set boundaries with those they meet online and to never share key personal information with strangers.