Hundreds of online businesses are finding inactive Social Security numbers online –most of which are assigned to children under 18 who have not started using them – and selling them under different names to help people establish fake credit. The scheme may lead to significant debts that might be almost impossible to pay off.

Which leaves parents everywhere asking what they can do to make sure their son or daughter doesn’t become a victim of identity theft.

Unfortunately, not much. You can, however, be vigilant in preventing your child’s Social Security number from being used indiscriminately. If an organization requests the SSN, for example, ask why and if another number can be used instead.

You can educate your child about identity theft and how to prevent it. And you can watch out for red flags that indicate there might be a problem, such as your son or daughter receiving pre-approved credit card offers or calls from collection agencies.

Some parents have asked about checking and/or freezing their child’s credit report. The three Credit Reporting Agencies – Experian, Equifax and Transunion – do not recommend that you automatically check your child’s credit report annually, unless you have an indication of a problem. To order reports unnecessarily opens a door to thieves because it could establish a credit report.

And no, you can’t ask a Credit Reporting Agency to create a file for your child for the sole purpose of placing a preventative freeze. If your child does have a credit report and you can prove fraud has taken place, only then should you freeze your son or daughter’s credit report.

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