SAN FRANCISCO–Approximately 915,000 U.S. children were victims of identity fraud in the past year, costing an average of $1,128 for a single household—$752 for the fraud itself and $376 out-of-pocket to resolve the fraud—while spending 16 hours on resolution overall, according to new research.
The findings were released as part of Javelin Strategy & Research’s 2022 Child Identity Fraud Study
The complimentary report analyzes U.S. consumer responses about child identity theft and fraud collected from 5,000 U.S. households earlier this year, according to Javelin.
Javelin’s researchers said they found that beyond suffering from identity fraud, more U.S. children were adversely affected in the past year by a data breach, with 1.7 million—one in every 43—having personal information exposed and potentially compromised. “Javelin finds a direct correlation between children’s use of social media and the increase in the number of children who are being exposed online,” the company said. “In fact, Javelin found that children under the age of seven were most likely to be victimized by ID theft and subsequent ID fraud.”
How Families Can Reduce Risk
Javelin added that its latest findings show that parents and guardians can reduce risk for their families and children by taking the threats posed by social media and unrestricted internet access seriously. The vast majority of U.S. households (91%) have children who are active on social media, the company said.
“Unfortunately, seven in 10 parents and guardians disregard the need to monitor their children’s social media accounts,” said Tracy Kitten, director of the Fraud & Security Practice at Javelin. “Children often become victims of identity theft and subsequent fraud because of a data breach, a scam that cons them into giving out personal information, or by having a social media or email account taken over.”
Kitten added that it’s not strangers who put children at the greatest risk, as 67% of households with child victims of identity fraud personally knew the perpetrators.
“With social media, the number of people who have more personal connections with children has grown exponentially in the past few years,” Javelin stated. “It’s not surprising that those closest to child victims are often the ones who perpetrate ID theft and fraud against them. In fact, a parental figure—a parent or guardian’s partner or spouse, or a stepparent—is the most likely perpetrator.”
Actionable Recommendations
Javelin said its report offers actionable recommendations for consumers, financial institutions, insurance companies, and employers on how to help curb child identity fraud.
A complimentary copy of the 2022 Child Identity Fraud Study is available at www.javelinstrategy.com/2022-child-identity-fraud-report.
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