
Kids are prime targets for identity thieves because they've got squeaky clean credit -- that no one is monitoring.
“Children are 51 times more likely to become victims of identity theft than adults,” said Steve Weisman, who is the author of "Identity Theft Alert" and a professor at Bentley University.
A new national law called the Economic Growth, Regulatory Relief, and Consumer Protection Act, which takes effect Friday, is designed to prevent child identity theft by giving parents access their child's credit report.
In 2017, more than one million children were victims of identity theft, according to a new report from Javelin Strategy & Research.
Right now, all an identity thief needs is your child's social security number and they're in. They can open new accounts in your child's name, and tarnish their credit, until someone catches on.
“They often, and their parents, don't become aware of this until maybe the child is 18 and applying for financial aid for school or a car loan or something,” saidWeisman.
Restoring your child's credit can take years.
The new law prevents all of that by allowing parents to take early action by freezing a child's credit before they become victim.
“Come September 21st, you can set up, if you're a parent, a free credit report for absolutely nothing for your child, and freeze it right away,” said Weisman.
If there is a problem -- maybe your child's credit has already been compromised -- the credit reporting agencies are obligated to clear your child's credit report.
“You can say, 'No, this is bogus. The child is 8 years old,' And so it will be easy to correct,” said Weisman.
Another huge benefit of the legislation allows you to be able to freeze and unfreeze your credit for free.
Rhode Island recently banned credit reporting agencies from charging freeze fees, but there is currently a $5 charge in Massachusetts.
Freezing your credit is the most effective way to prevent identity theft.