Sens. Hassan, Cornyn aim to stop child identity theft

Bipartisan lawmakers are working to stop the identity theft of children by making the process of freezing their accounts easier for their caretakers.

Nearly 1 million children each year become victims of identity theft, according to a study by Javelin Strategy & Research, and Sens. Maggie Hassan and John Cornyn are trying to put a stop to it with the Credit Freeze for Newborns Act.

“Children’s lack of credit history makes them easy targets for criminals and leaves them vulnerable to years of undetected identity fraud,” Mr. Cornyn, Texas Republican, said in a statement. “By enhancing cooperation among credit bureaus, we can simplify the process for parents to freeze their child’s credit and protect families from the financial burden of identity theft.”

The bill will let parents contact just one agency to freeze their child’s credit file. The one agency will then inform the other credit bureaus of the freeze within three days.

The bill also will require the Social Security Administration to include the steps it takes on how to freeze a child’s credit file when issuing the child’s Social Security card.

“Identity theft can upend the lives of Americans, and it is especially damaging when it destroys the credit history of children who may not be aware that their identity was stolen until they become adults,” Ms. Hassan, New Hampshire Democrat, said in a statement.

The Javelin report found that child identity theft costs families in the U.S. $1 billion each year and affects one out of every 50 children.

“The tricky part about child ID theft is that it’s hard to detect. This makes it an attractive and lucrative fraud target for criminals. Although child ID theft and fraud are not new, the topic has taken on new relevance during the COVID-19 pandemic, as society’s adoption and use of social media accelerates and remote learning and digital purchasing become commonplace,” the report said.

Javelin found that children are at risk because the risk of identity theft isn’t taken seriously enough, and children under 7 are the likeliest victims. The group said the risks continue to grow as social media use among minors grows.

The report also reminded parents to be mindful of what they share about themselves and their children online.

“The more you post online about your children, the more at risk you put them,” it said. “Keep in mind that familiar fraud is the most prevalent, so anyone within your online friend network could pose a threat to your child’s identity. It’s also worth noting, beyond even social media, that the internet itself is a dangerous place for minors.”