New parents are often surprised to discover that they are required to complete an application for a Social Security Number for their newborn before they leave the hospital. Their astonishment likely grows when they take note of how often they’ll be with others in the first few years of their child’s life.
But just because someone – a doctor’s office, dentist, karate school – asks for your child’s SSN, do you give it? Do you know when to share your child’s SSN and when not to?
It’s not an academic question. Kids who have their identities stolen can find their credit in ruins before they’re even old enough to have a job.
A Federal Trade Commission representative recently testified before a House committee that the FTC views theft of children’s identities as a significant – and growing – problem. In fact, a study earlier this year by ID Analytics found that about 140,000 cases of identity theft are perpetrated against children every year.
Identity thieves find children’s Social Security numbers particularly valuable since kids don’t have a credit history. And theft of SSNs is the most common form of identity theft, according to the FTC.
You probably do everything in your power to keep your kids safe. You may already try to teach them financial responsibility. Safeguarding their SSN is an important part of that process.
The FTC advises parents to challenge requests for their children’s SSNs and other personal information.
Tips for when to share your child’s SSN and when not to:
A good rule of thumb, experts say, is to share it as little as possible. Generally, unless there is a tax implication involved, it shouldn’t be necessary for you to give your child’s SSN to anyone.
If you’re asked to give your child’s SSN, ask why it’s needed. If the answer is that the number will be used for billing or account tracking purposes, ask if an alternative number can be used.
If you’re told the number is absolutely required, you have two options – give it, but only after ensuring you understand how it will be used, who will have access to it and how it will be safeguarded. Or, take your business elsewhere.
You should periodically check with the credit bureaus to ensure your child’s credit history is still a clean slate. If you use www.annualcreditreport.com, simply type in your child’s information. The site should respond that no records exist. If you do find a credit file with your child’s information, check it out immediately for signs of identity theft.
Protecting your children’s SSNs is an important first step in helping ensure they start off their adult lives with a clean credit report.
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