Imagine applying for your first real job in your 20s only to discover that you have a checkered past when it comes to your credit and employment. And it's not because you spent your teenage years job-hopping and overspending. Instead, it's because you were one of the 1.25 million or so U.S. children (1) affected by identity theft.

Unfortunately, as the Identity Theft Resource Center (2) explains, children are "prime targets" for identity theft because of their clean credit history and because parents often don't check their credit regularly.

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Sadly, this can have dire consequences, especially as the identity theft is often not discovered until decades later. And a growing number of young adults will face this issue, as child identity theft increased by around 40% (2) from 2021 to 2024. All those children who are victimized will have to cope with the aftermath as the crime is discovered.

Let's pretend, for example, that Daniel's Social Security number was stolen when he was eight. It was used to obtain employment and also to open a few credit cards. It took Daniel 14 years to discover this, so what can he do now that he's entering adulthood and has a work record and credit history that isn't his own but that's tied to his Social Security number?

Unfortunately, identity theft committed against Daniel during his childhood can become a very real problem for him as an adult. In fact, Daniel may struggle to get a job or a credit card because of a low credit score and inaccurate information appearing on background checks.

"Your Social Security number may have been stolen when you were eight years old, but the consequences can follow you into your 20s, 30s, and beyond," Michael Scheumack (3), chief innovation officer at IdentityIQ told Moneywise.

Scheumack recommended:

Immediately getting your credit report from all three credit bureaus (which you can do for free at AnnualCreditReport.com (4)) to see where you stand

Putting a fraud alert on your credit report and freezing your credit so criminals can't keep using your info

Contacting companies where you have open accounts, employment records, or past-due bills to alert them to the fraud and enlist their help in removing these inaccuracies from your record

Filing an Identity Theft Report (5) with the FTC.

Unfortunately, if the identity theft happened over a long period and Daniel has lots of fraudulent accounts and incorrect info, it's going to take some time to handle all this.

"Someone whose identity was used for years to open multiple accounts, obtain loans, or create a false identity may face a much longer process," Scheumack warned.

Daniel can also report the identity theft to law enforcement.

The statute of limitations (6) for prosecuting identity theft may have passed, depending on exactly when the fraud happened. Still, the police may conduct an investigation. And at the very least, they'll prepare a written repor (7)t that Daniel can use to help prove he was a victim and show that his imperfect record isn't his fault.

It is important to note, though, that in around 75% of cases (2), the person who steals a child's identity is someone they know. If the police uncover that Daniel's parents, a close family member, or a friend was the one who stole his identity, this can lead to tough conversations and difficult decisions about accountability.

Identity thieves sometimes steal a child's Social Security number not to open a credit card, but to work without having a legal Social Security number of their own. In fact, it's employment, not credit, that thieves are after in around 40% of child identity theft cases. (8)

If someone worked using Daniel's Social Security number, he can submit Form 14039 to alert the IRS (9), and should contact the Social Security Administration to correct his earnings record (10).

Finally, Daniel should record all correspondence with the police, credit reporting agencies, and companies that he asks to remove incorrect info.

If credit reporting agencies or other companies that have a responsibility to correct the record fail to act, Daniel may have legal rights (11)to file a civil lawsuit and compel them to make fixes.

Ultimately, all of these steps are going to be a hassle, but Daniel needs to take them if he wants to make sure the identity theft that happened as a child doesn't continue to haunt him in adulthood.

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Javelin Strategy (1); Identity Theft Resource Center (2), (8); IDIQ (3); Annual Credit Report (4); IdentityTheft.gov (5); Justia (6); Experian (7); Internal Revenue Service (9); Social Security Administration (10); Consumer Financial Protection Bureau (11)

This article originally appeared on Moneywise.com under the title: 1.25 million kids have their Social Security Numbers stolen — and 75% of the time, the thief is someone they know

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.