A research report from Javelin found that 1 in 80 children have been hit with identity fraud. While the number is down from the previous year, the dollars, time and headaches are up!

The time taken to resolve child identity theft issues is up from 13 hours to 16 hours, according to Javelin. The losses per child ID fraud victim increased, which was $752 this year, up slightly from $737 the previous year. Out-of-pocket costs to resolve the situation was relatively flat at $376 per household. That means the average total cost due to these cybercriminals increased from $1,109 to $1,128!

Look who’s being defrauded – and how

Minors younger than 7 are the most likely to be exposed to a breach of their personal information. Javelin also surmised that the risks beyond fraud can also be physical, psychological and emotional.

With 91% of households having minors active on social media, parents and guardians need some education around the subject. More than half of parents or guardians say they do not monitor their kids’ online activity, per Javelin. Additionally, 70% do not feel the need to monitor their child’s social media accounts, and 71% said that social media monitoring was the “least valuable service” provided in an ID protection program despite the benefits of early detection.

The results bear that out as the number of children whose personally identifiable information was exposed in a breach increased year over year to 1 in 43 minors, totaling 1.74 million in the past year.

Social media accounts are the top preferred method for these cybercriminals to collect data for ID theft and fraud. Even if they can’t get all the info they need, they might combine it with another bit of legitimate personal information to piece together a fraudulent identity, also known as a synthetic identity. Then they take that information to open new merchant accounts (30%), like Amazon. Mobile app downloads also spiked in the past year.

Another 30% of households reported that their child’s ID was used to open new checking and savings accounts.

Once parents understand the dangers, headaches and financial burden of child ID theft, perhaps they will clamp down on allowing unfettered, unfettered access to the internet. This is how Javelin says credit unions can help.

Parents are seeking fraud prevention resources

Javelin noted parents are seeking assistance from law enforcement to help fix the problem after the fraud has already occurred, but they’re also seeking support from trusted institutions, like your credit union.

·      Educate members consistently about child identity fraud and scam risks

·      Implement even stronger fraud and scam detection mechanisms – Javelin believes this has contributed to the decrease in the instances of child ID fraud

·      Build awareness among members about how scams work and what to do if you

fall for one

·      Establish a cybersecurity empowerment page on your credit union website, which also should be mobile friendly

·      Encourage members to sign up for text and email alerts – including for minors’ personally identifiable information

·      Simplify how members sign up for fraud alerts

·      Promote information on how to freeze a child’s credit

·      Point members to resources to help when they do suspect their child has been hit with identity theft and fraud, including one point of contact within your credit union

·      Ensure call center team members are trained to answer calls about ID theft and fraud

 Even in our personal daily lives, downloading a game or app can seem harmless, but consequences abound. Credit unions, which have built their brands around trust, financial wellness and people-helping-people, can strengthen those bonds with educational campaigns that help parents and guardians prevent child ID fraud.