How Many Minors Have Had Their Identity Stolen?
Uncover insights into identity theft targeting young people, its widespread impact, and the underlying reasons for their susceptibility.
Identity theft involves the unauthorized use of personal information for fraudulent purposes, often leading to financial gain. Victims frequently discover the theft through unexpected charges or unfamiliar accounts on their credit reports. Consequences can be severe, impacting financial standing and causing distress.
Understanding Minor Identity Theft Statistics
Minor identity theft refers to instances where a person under the age of 18 has their personal information misused. This fraud often involves the theft of a child’s Social Security number (SSN) to create a “synthetic identity” or commit “true-name identity theft.” Synthetic identity theft occurs when a fraudster combines real information, such as a child’s SSN, with fabricated details to create a new, false identity. True-name identity theft uses a child’s existing identity to open accounts or obtain services.
Recent data indicates a prevalence of minor identity theft. In 2022, approximately 1.1 million children were victims of identity fraud, resulting in an estimated total loss of $1.1 billion for affected families. The average out-of-pocket cost for families dealing with child identity theft was about $276, with an average of 10 hours spent resolving the issue. These incidents highlight the financial and time burdens placed on households.
The types of identity theft affecting minors vary. Medical identity theft, where a child’s information is used to obtain healthcare services, also poses a risk.
How Minor Identity Theft Occurs
Minor identity theft can originate through various channels, exploiting vulnerabilities in data management or personal security. Data breaches are a common mechanism, impacting organizations storing children’s personal information, such as schools, healthcare providers, or toy companies. When these entities experience a security compromise, sensitive details like names, birth dates, and Social Security numbers can be exposed to cybercriminals.
The theft of physical documents also presents a direct pathway for identity thieves. This includes instances where birth certificates, Social Security cards, or other identifying papers are stolen from homes, vehicles, or mailboxes. Individuals might search through discarded documents to find personal information.
Digital interactions also contribute to how minor identity theft occurs. Phishing scams, which involve deceptive communications designed to trick individuals into revealing personal information, can target parents or older minors. Sharing personal details on social media platforms or online gaming sites can inadvertently expose information that identity thieves can piece together.
Internal family fraud is another method of minor identity theft. This occurs when a family member, often a parent, grandparent, or other close relative, intentionally uses a child’s identity for their own financial gain. This form of theft is damaging as it involves a breach of trust and can be challenging to detect and resolve due to the familial relationship. The perpetrator might use the child’s SSN to open credit accounts, obtain loans, or secure employment.
Vulnerabilities of Minors to Identity Theft
Minors are susceptible to identity theft due to characteristics that make them attractive targets for fraudsters. A key vulnerability stems from their clean credit histories; since children do not have credit accounts, their Social Security numbers are pristine. This makes their SSNs valuable for creating synthetic identities or opening new lines of credit that can go undetected for extended periods.
Another factor is the lack of active credit monitoring for children. Unlike adults who check their credit reports, parents do not monitor their children’s credit files. This oversight allows fraudulent accounts opened in a child’s name to accumulate debt before discovery. The absence of routine checks means that illicit activity can persist for years without intervention.
Minors possess a limited understanding of personal data security and sharing information. They do not recognize the importance of keeping personal details private, especially online. This lack of awareness can lead them to inadvertently disclose sensitive information that identity thieves can exploit.
The prolonged period before such theft is discovered is a major vulnerability. Minor identity theft often goes undetected for many years, sometimes until the child reaches adulthood and attempts to apply for credit or a job. By this time, significant damage may have been done to their financial standing, potentially impacting their ability to secure housing, employment, or further education. The delayed discovery complicates resolution efforts, as financial records and transactions can be years old.