Fraud protection for children - it's a thing!

On September 21, 2018, a new federal law provision will make it easier for families to protect against the identity fraud of minors. Parents and guardians will be allowed to make inquiries about credit files under their child’s name and freeze a file at no cost. We urge that you do this for your kids!

Over 1 million minors were victims of credit theft in 2017 alone and that number increases every year, per Javelin Strategy & Research in a 2018 study. Children are attractive targets because of their clean credit history and lack of oversight or awareness by parents that anything could go wrong. Kids may not have any money in the bank to pilfer but there are few hurdles to opening a line of credit or a loan under their new, barely used Social Security Numbers. Experian estimates that 1 in 4 children are targets before they become an adult. When it is discovered, it takes an average of three years to resolve, leaving the victims understandably stressed about their future credit opportunities.

Because the child’s SSN is used so infrequently, adults are often unaware of how it can be even compromised.

After the law is passed, parents should contact the main credit-reporting companies (Equifax, Experian and TransUnion) and check their children’s records for free. Then strongly consider a freeze until your child reaches the age of majority or wants to start building their history. Continue to monitor and be alert for odd mail or other data regarding your children. A credit freeze will only help credit and not tax fraud or other sophisticated scams involving SSNs, names, birthdates and other personal identifiers.

Visit the Identity Theft government website to take further steps to protect your credit or to recover in case of a theft. By scrolling to the Special Forms of Identity Theft section, you can read on about Child Theft.

So when that Visa bill comes in the mail in your child’s name, you can probably believe them when they say “it wasn’t me!”.

Investment Advisory Services offered through Integrated Advisors Network LLC (IAN), a Registered Investment Advisor. Serene Point Advisors and IAN are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that (the Advisors firm) and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

#TheftPerpetrator #ChildTheft #CreditFreezeChild