What Type of ID Theft Occurs Most Often for People Age 19 and Under?

Identity theft affects individuals of all ages, including young people. For those aged 19 and under, their personal information can be exploited undetected for years. Understanding their susceptibility and the forms of identity theft is important for protecting their financial future.

The Predominant Form of Identity Theft for Young People

The most frequent type of identity theft impacting individuals aged 19 and under involves the misuse of their Social Security Number (SSN). Criminals often target children’s SSNs because minors generally do not have established credit histories, presenting a “clean slate” that can be exploited for fraudulent activities. This allows fraudsters to open new lines of credit, secure loans, obtain employment, or even claim tax refunds using the child’s identity.

This form of theft often remains undetected for extended periods because parents or guardians typically do not regularly check their children’s credit reports. The fraudulent activity may only come to light when the young person applies for a driver’s license, student loan, or their first job, and is unexpectedly denied due to a damaged credit history they never created. In some cases, identity thieves might combine a child’s SSN with other fabricated information to create a “synthetic identity,” which can then be used to build a credit profile over time before accumulating significant debt.

For instance, an individual might use a child’s SSN to gain employment, with the earnings reported under the child’s name, potentially leading to unexpected tax notices from the Internal Revenue Service (IRS). Another common scenario involves the fraudulent acquisition of government benefits, such as healthcare coverage or public assistance, by someone using the child’s SSN.

Other Significant Identity Theft Types Affecting Young Individuals

Beyond the predominant misuse of Social Security Numbers for credit and financial fraud, young individuals can also fall victim to other forms of identity theft.

Medical identity theft occurs when someone uses a child’s personal information, such as their name, date of birth, or health insurance details, to receive medical services, prescription drugs, or file fraudulent insurance claims. This can lead to inaccurate medical records for the child, which might affect future diagnoses or treatment, and result in unexpected medical bills.

Tax identity theft involves a criminal using a minor’s SSN to file a fraudulent tax return, often to claim a refund or to report income from employment they did not earn. This type of fraud can create significant complications for the child and their family, including receiving notices from the IRS about unreported income or unpaid taxes.

Criminal identity theft, while less common for young people, can also occur. In these instances, a minor’s identity may be used by an individual during an arrest or when facing criminal charges. This can lead to a criminal record being created under the child’s name, which can surface during background checks later in life, potentially impacting employment opportunities, housing, or even eligibility for certain licenses.

Recognizing Identity Theft in Young People

Detecting identity theft in young individuals can be challenging because they typically do not engage in financial activities that would reveal fraudulent accounts. However, certain signs can indicate that a child’s identity has been compromised:

Receiving mail addressed to the child for credit card offers, loan applications, or utility services.
Unexpected calls or letters from debt collectors regarding accounts not opened by the family.
Denial of government benefits, such as health care coverage or public assistance, because someone is already using the child’s Social Security Number.
Receiving notices from the IRS about unpaid income taxes or employment verification for a child who has never worked.
Denial of a student loan, car loan, or housing application due to a poor credit history they should not possess.

A crucial step in recognition involves checking if a credit report exists for the child. Children typically do not have credit reports, so the discovery of one, especially if it contains unfamiliar accounts or inquiries, is a strong indication of identity theft. The presence of a credit file means someone has used the child’s identifying information for financial transactions.

Safeguarding Young Individuals Against Identity Theft

Proactive measures are important for protecting young individuals from identity theft. Limiting the sharing of a child’s Social Security Number (SSN) is a primary preventative step. Parents and guardians should inquire why an SSN is requested and whether alternative identifiers can be used before providing it to schools, sports leagues, or other organizations. When documents containing personal information, such as birth certificates or SSN cards, are not in use, they should be stored securely in a locked safe or safety deposit box.

Shredding documents that contain personal information, rather than simply discarding them, helps prevent dumpster diving by identity thieves. Educating young people about online safety and protecting their personal information is vital. This includes teaching them not to share sensitive details with strangers online, being cautious about what they post on social media, and understanding privacy settings. Strong, unique passwords and two-factor authentication should be used for all online accounts.

Placing a credit freeze on a child’s credit file is a preventative measure. While children under 16 generally do not have credit reports, parents or legal guardians can request a “protected consumer” security freeze with each of the three major credit bureaus—Equifax, Experian, and TransUnion. This freeze prevents new credit accounts from being opened in the child’s name, as lenders cannot access a frozen credit file. This service is available at no cost and remains in place until it is unfrozen, typically when the child becomes an adult and needs to establish their own credit.

Actions to Take When Identity Theft Occurs

If identity theft is suspected or confirmed for a young individual, prompt action is necessary to limit potential damage. The first step involves contacting the companies or financial institutions where fraudulent accounts were opened using the child’s information. Inform their fraud departments, request the accounts be closed, and ask for written confirmation that the child is not liable for any debts incurred. Providing a copy of the child’s birth certificate may be required to verify their minor status.

Next, report the identity theft to the Federal Trade Commission (FTC) through their IdentityTheft.gov website or by phone. The FTC provides a personalized recovery plan and an official Identity Theft Report, which is a crucial document for disputing fraudulent activity. Concurrently, file a police report with local law enforcement, as this report can be helpful when dealing with creditors and credit bureaus.

Contact each of the three major credit bureaus—Equifax, Experian, and TransUnion—to inform them of the fraudulent activity and request the removal of any false accounts from the child’s credit report. If a credit freeze was not already in place, request one immediately to prevent further fraudulent accounts from being opened. Maintain detailed records of all communications, including dates, names of contacts, and copies of documents sent and received, throughout the resolution process.