Helping Young Adults Protect Their Identity

Growing up and becoming more independent comes with plenty of firsts: a first job, checking account, credit card, and maybe even a first apartment or student loan. Unfortunately, these milestones can also make teens and young adults attractive targets for identity thieves.

Identity theft happens when someone uses another person’s personal information, such as a Social Security number, date of birth or financial account information, to open accounts, make purchases, or commit fraud. Because young people may not regularly check their credit, identity theft can go unnoticed until they apply for a loan, rent an apartment, or open a new account.

Parents, you can help your kids build habits that protect their personal information now and well into adulthood.

Start the Conversation Early

Personal information has real value and should be treated carefully. Young adults should know not to share their Social Security number, banking information, passwords or log in verification codes unless they understand who is requesting the information and why.

Encourage your kids to pause when they receive an unexpected call, email, text message or social media request. Scammers often create a sense of urgency, claiming there is a problem that must be addressed immediately. Taking a few minutes to verify the request through a trusted phone number or website can save them from making a costly mistake.

Strengthen Online Security

Help your child secure their email, financial, and social media accounts with strong, unique passwords. A password manager can make this easier by creating and securely storing passwords.

Turn on multifactor authentication or biometric logins whenever they are available. It is also important to keep phones, computers and apps updated. Software updates frequently include protections against newly discovered security threats.

Limit What They Share

Birthdays, addresses, phone numbers, school information, and even pet names can give scammers clues that help them guess passwords or answer security questions. Encourage young adults to review the privacy settings on their social media accounts and think carefully before sharing personal details online.

They should also avoid sending sensitive information through unsecured email, text messages, or public Wi-Fi. Before entering personal information on a website, confirm that the address is correct and the connection is secure.

Protect Important Documents

Social Security cards, birth certificates, passports, tax forms, and financial records should be kept in a secure location—not carried in a wallet or left in a dorm room, vehicle, or other easily accessible place.

Before discarding documents containing personal information, shred them. Personal information should also be removed from phones, computers, and other electronic devices before they are sold, donated, or recycled.

Monitor Financial Accounts

Young adults should review their account activity regularly and report unfamiliar transactions right away. Account alerts can provide quick notifications about purchases, withdrawals, password changes or other activity. You can help them set up account alerts through MCU’s digital banking in the Manage Alerts section of the menu.

Once a young adult has established credit, encourage them to regularly review their credit reports for any accounts or inquiries they do not recognize. Free credit reports are available through AnnualCreditReport.com, the federally authorized website for free credit reports.

Parents of younger children can also check whether their child has a credit report. Generally, a minor child should not have one unless an account has been opened for them legitimately by a parent or guardian. The Federal Trade Commission explains how parents and guardians can request a manual search from the three major credit bureaus.

Consider a Credit Freeze

You may want to think about placing a credit freeze on your teen’s credit file. A credit freeze restricts access to a person’s credit file, making it more difficult for an identity thief to open new accounts. Placing and lifting a credit freeze is free, and it does not affect a credit score.

For children under age 16, a parent or guardian may request a credit freeze by contacting Equifax, Experian, and TransUnion. Teens who are 16 or 17 may request a credit freeze themselves. Adult children must place their own freezes. The FTC provides additional information about credit freezes and fraud alerts.

Know the Warning Signs of Identity Theft

Possible signs of identity theft include:

• Bills or collection notices for unfamiliar accounts
• Unrecognized withdrawals or transactions
• Mail about credit cards or loans that were never requested
• Notice that a tax return has already been filed using the young adult’s Social Security number
• Denial of credit, housing, employment, or student aid due to unexpected information in a credit report
• Notifications that account passwords, contact information, or security settings were changed

Act Quickly if Something Is Wrong

If you suspect identity theft, contact your financial institution immediately. Speak to their fraud department to close or secure the account and provide written confirmation of the action taken.

Change passwords, review credit reports, and consider placing a credit freeze or fraud alert on their credit. Identity theft should also be reported at IdentityTheft.gov, where the Federal Trade Commission provides a personalized recovery plan and helpful forms to help you.

Learning to protect personal information is an important part of becoming financially independent. By talking openly about scams, practicing good digital habits and regularly reviewing financial accounts, parents can help young adults begin their financial lives with greater confidence and security.