What are the consequences for victims of child identity theft?
Child identity theft can have serious consequences for the victims and their families. Parents of victims may be unable to file their children as dependants or as exemptions with the IRS if someone else has already used the child’s Social Security number, like when the perpetrator gives the child’s SSN to an employer. The employer reports the worker’s earnings to the IRS and the worker may even file a return with that SSN. Cases like this are becoming so prevalent that the IRS has actually set up an Identity Protection Specialized Unit. Children who have been targeted by an ID thief will most likely encounter problems when they grow up. They may find that their ruined credit means they are unable to apply for a credit card, lease an apartment, or sign up for utilities. But this delayed discovery is exactly why many identity thieves target children: Their crime will go unpunished, and usually unnoticed, for years. By the time the theft is realized, it becomes nearly impossible to track
