Whenever someone applies for a loan or line of credit, the lender runs a credit inquiry, which prompts the national credit bureaus to generate a report on that person. Since children aren’t legally able to open accounts on their own, they generally shouldn’t have a credit report at all. If one does exist, there are only a few possible explanations: maybe they were added as an authorized user on a parent’s credit card, their information was mixed up with an adult’s by mistake, or—most concerning—a scammer stole their identity.
There’s a familiar saying that compares something simple to “stealing candy from a baby.” It’s a vivid image—and one that sticks because it highlights how defenseless children can be. Unfortunately, that vulnerability isn’t lost on cybercriminals.
Instead of swiping sweets, these bad actors often target something far more valuable: a child’s identity. With clean credit histories and little oversight, kids make ideal targets for fraudsters looking to open credit lines, take out loans, or score other perks for themselves.
And because guardians don’t see an actual “candy grab”, they don’t suspect their child needs defending. That’s why in these digital times where credit rules, it’s crucial that adults proactively and diligently protect the privacy and financial health of minors—starting with a simple check of their credit reports.
What is a credit report?
When an individual applies for a loan or a line of credit, the potential lender contacts the three national credit monitoring agencies (TransUnion, Experian, and Equifax) to determine if the potential customer is a good credit risk.
In other words, will the lender lose money, or will the customer likely repay them? The lender makes a determination by reviewing credit reports, which outline a person’s current and historical financial data.
A credit report, the Consumer Financial Protection Bureau states, can contain your:
Full name, maiden name, and nicknames
Addresses
Date of birth
Social Security number
Phone numbers
Credit account details (types of credit, amount of credit, payment history, etc.)
Debt burden (amount of current and past debt, and available credit lines)
Public records (liens, civil suits, foreclosures, bankruptcies, etc.)
Child support non-payments
Why are children targeted for credit crimes?
Generally, minors aren’t legally allowed to open bank or credit accounts on their own. While there’s no single federal law prohibiting it, most state laws and bank policies require an adult to be involved when opening an account for a minor—since children aren’t considered to have the legal capacity to enter into contracts.
Fraudsters see this as an opportunity, viewing a child’s identity as a “clean slate.” If they steal a child’s Social Security number (SSN), they can combine it with false personal details to create a “synthetic identity.”
Worse, they might misuse their SSN outright on applications. Even though the child can’t legally apply for credit, gaps in verification systems, clerical errors, or weak identity checks at some lenders can still result in a credit file being created in their name.
Once that happens, criminals may exploit the child’s spotless record until they’ve drained every bit of credit-earning power—then move on to the next victim. It’s a widespread problem that Javelin Strategy & Research reported happens to one in fifty children.
A family’s rude awakening might not arrive for years—maybe not until their child is grown and gets turned down for a loan because someone’s been racking up bad credit in their name.
Alarm bells might sound sooner if a guardian sets up identity theft and credit monitoring alerts for the child. Other red flags include unexpected bills in the mail, pre-approved credit offers addressed to the child, or calls from confused creditors.
How to uncover fraud in your child’s name
Like most parents and guardians, your new dependent’s financial health probably wasn’t on your mind when you brought them home for the first time. These many months or years later, though, it’s worth investigating.
In most cases, children shouldn’t have a credit report at all. If one exists, it’s likely a sign that someone has fraudulently used their identity to open accounts or take out loans.
Starting in 2026, select Allstate Identity Protection members will be able to book a personal coaching session focused on child credit health. During the session, our specialists will:
Help check if your child has a credit report and investigate why one might exist
Share practical tips for protecting their financial future
Provide strategies to help prevent identity theft for minors
Not a member? It takes a little extra legwork, but you can still check for fraud directly with the three credit bureaus:
TransUnion: Fill out this online child identity theft inquiry form, and the bureau will scan its credit reports for Social Security numbers that match those of the minor.
Equifax: Print and complete the form posted here, along with the noted documents. Mail these items, along with a letter explaining your request, to the address listed here.
Experian: Click on “Check if minor has a credit report” here. Fill out the form and either mail or upload the necessary documents as outlined.
How to fix fraud in your child’s name
If fraud is found and you’re a member, our specialists are here for you. Just reach out anytime and we’ll build a recovery plan together, step by step.
If you’re not a member, here’s a good starting point to begin setting things right:
Fill out the FTC’s Uniform Minor Status Declaration Form here.
Dispute the credit reports. Do this by sharing the FTC’s minor status form with the creditors listed on the child’s credit reports. Instruct the creditors to close the related accounts and release the child from liability. Request written confirmation and keep it with your records.
Set up a credit freeze in your child’s name with each of the three bureaus.
File an identity theft report with the FTC here or call (877) 438-4338.
Unfortunately, though, identity theft isn’t always a one-and-done situation. Fraud can sometimes resurface months or even years later. Because once a child’s personal information is exposed, it may continue circulating on the dark web or other criminal databases.
Scammers also often “sit” on stolen data, waiting until attention dies down before using it again, or they may also sell it multiple times, meaning new fraudsters can attempt to open accounts long after the original theft. Ongoing vigilance is key.
How to protect your child’s credit and identity
The simplest way to guard your child’s credit history is to enact a credit freeze in their name when they are born. A freeze means the credit reporting agencies will not generate a credit report for them until either the child comes of age and unfreezes the directive, or their guardian does so at some point.
Without a credit report, a creditor won’t issue a loan or grant a line of credit. In other words, a credit freeze ices crooks out.
Here’s how to issue a credit freeze for a child at the three major credit reporting agencies:
TransUnion: Collect the documents noted here and mail those to TransUnion, P.O. Box 380, Woodlyn, PA 19094.
Equifax: Fill out this form and mail it, along with the necessary documentation, to Equifax Information Services LLC, P.O. Box 105788, Atlanta, GA 30348-5788.
Experian: Complete this form and mail it, plus supporting materials, to Experian, P.O. Box 9554, Allen, TX 75013.
Children may not be able to legally open credit or bank accounts on their own, but that doesn’t automatically mean their identities are safe. In fact, the very innocence of a child’s “clean slate” makes them especially appealing to fraudsters.
The encouraging news is, there are simple steps parents and guardians can take to protect a child’s identity and financial future—before criminals ever have the chance to ruin it.
