Kids, Social Security Numbers and Identity Theft

When your 5-year-old starts getting pre-approved credit card offers in the mail, that's a clue that someone may be tampering with the child's social security number and credit file. According to Jay Foley, Co-Founder of the Identity Theft Resource Center, identity thieves are now targeting children. Once they get their hands on a young person's social security number, they create a new identity, open credit card accounts, and spend like mad. Kids are the perfect victims in that they won't be applying for credit anytime soon.

Mr. Foley doesn't suggest that everyone run credit checks on all their underage children. Unless you notice some red flags, such as minors receiving credit card offers, wait until the child reaches sixteen or so to see if credit agencies have anything listed. This will give you plenty of time to correct any errors before they apply for their own credit cards or college loans.