Parents Warned: Scam Artists Can Steal Children's Identities, Ruin Their Future Credit

NEW YORK (CBSNewYork) -- As kids get ready to go back to school, thieves are gearing up to steal their identities.

As CBS2's Dave Carlin reported, the criminals get a child's Social Security number and then change the age – applying for loans, medical insurance, and more.

Arianna and Ramiyah, both 11, were shopping for back-to-school on Wednesday. Arianna's father, Javier Lee, was determined to get them what they needed.

But Lee was also determined to make sure the kids do not become the targets of identity thieves – knowing that children as young as the two girls, and even babies, can get their Social Security numbers stolen.

If that happens. their future credit can be ruined.

"It's ridiculous that a scam artist will actually do that -- target kids this age," said Lee, of Bushwick, Brooklyn.

It is such a growing fraud that the Better Business Bureau of Metropolitan New York just put out a warning.

"According to a recent study, one out of every 40 families with a child under the age of 18 has had that child's identity compromised," said New York Better Business Bureau Claire Rosenzweig.

If your child is a victim, you may start seeing credit card offers, collection notices, or IRS letters in their name. But more often, children don't even discover the problem until they are 18 and need loans or credit.

It is a fraud targeting those least able to defend themselves, but parents are advised that there are things they can do.

"A lot of places ask for more information than they really need," Rosenzweig said.

The Better Business Bureau said too many places insist on having children's Social Security number, and parents should not give it out easily.

"First of all ask, 'Do I really have to give that, or is there something else we can give you?'" Rosenzweig said.

Parents are also advised to monitor what their children are doing online, and to make sure they are especially careful when downloading.

"Only download those apps from official app stores," Rosenzweig said.

Finally, parents should always get their own credit report information, and also get extra approval forms allowing them to check with their children's names and Social Security numbers.

"It's a periodic thing you do for yourself as well as for your children," Rosenzweig said.

Lee said he will check right away.

"If they want to buy house one day, a car; you need good credit for that," he said.

Experts said all parents definitely need to take precautions before their children turn 16, because identity theft repercussions can take more than a year to unravel and make right.