Why parents may want to start locking a child’s credit at a very young age

Published

12 months ago

August 23, 2024

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Most parents would take herculean steps to protect their children. But many overlook a relatively simple way to help shore up a child’s financial security: freezing the minor’s credit.

This could be especially important in the wake of a major breach in which the Social Security numbers of myriad Americans might be for sale on the dark web. While locking their credit won’t solve all cybersecurity issues related to stolen Social Security numbers, it’s one extra layer of protection parents can implement.

The credit-locking process involves contacting each of the three major credit bureaus — Experian, Equifax and TransUnion — and providing required documentation including the child’s birth certificate, Social Security card, proof of address and parent identification. The bureau then creates a credit report for the child and then locks it, so loans or credit cards can’t be issued using the child’s personal information. The freeze remains in place until the parent, or in some cases, the child, requests that it be lifted, temporarily or permanently.

Parents can take these steps proactively even if there’s nothing to suggest a minor’s credit has been compromised such as unexpected credit card solicitations or bills received in the minor’s name.

It can take some time and effort to lock a child’s credit, but the outlay is minimal compared with what can be a lengthy and emotional credit restoration process. “As an adult, if our credit is stolen, it makes us angry, but we do what needs to be done and we move forward,” said Kim Cole, community engagement manager at Navicore Solutions, nonprofit credit and housing counseling agency. But for children, the emotional impact is much greater, she said. “It can take years to get wind of a problem, and meanwhile the damage can continue to grow.”

Identity theft against children — especially very young ones — often slips under the radar until they are older teens or young adults applying for their first credit card, trying to finance a car or seeking student loans, said Loretta Roney, president and chief executive of InCharge Debt Solutions, a nonprofit provider of credit counseling and other services.

Yet, identity theft for children under age 19 is a growing issue, with this demographic accounting for 3% of all identity theft reports for the first half of 2024, according to Federal Trade Commission data. By comparison, this demographic accounted for 2% of identity fraud reports each year between 2021 and 2023.

Thieves might use a child’s Social Security number, name and address, or date of birth to do things like apply for government benefits, like health care coverage or nutrition assistance, open a bank or credit card account, apply for a loan, sign up for a utility service or rent a place to live, according to the FTC. Locking a child’s credit won’t protect against all of these, but it’s a solid step in the right direction, financial professionals said.

It’s not just strangers committing fraud against children. Cole offers the example of a friend whose uncle had destroyed his credit and started using his niece’s name and Social Security number to open credit cards and max them out. He had the bills sent to his house, and the young woman only discovered the fraud about four years later, when she went to buy a small fixer-upper and realized she had nearly $50,000 of debt in her name and a credit score in the low 500s.

The niece filed a police report, a complaint with the FTC and disputed the items with the credit bureaus, but it took time to resolve. She applied for a secured credit card in the interim, since her score was too low to qualify for a traditional card, and the situation pushed back her home-buying by a few years, ultimately costing her more, Cole said.

Check to see if the child has a credit report

Before locking a child’s credit, it’s good practice to check with each of the three major credit bureaus to see if a report exists. Generally, this will only be the case if someone has fraudulently taken out credit in the minor’s name, or if the child has been named an authorized user on an adult’s credit card.

To check to see if their child has a credit report, parents can mail a letter with their request to each of the credit bureaus. They should be sure to include a copy of the child’s birth certificate, Social Security card or document from the Social Security Administration showing this number and a copy of the parent’s driver’s license or government-issued identification, with current address. Legal guardians may have to give the credit bureaus a copy of documents authenticating their status.

If something amiss pops up on the report, contact the companies where the fraud occurred as well as the three major credit bureaus. Also report the child identity theft to the FTC, including as many details as possible.

If the report comes back clean, the next step is to actually lock the child’s credit.

If needed, freeze a child’s credit

The process for initiating a credit freeze varies slightly depending on the credit bureau and the age of the minor child. Be sure to follow the precise instructions for each credit bureau. For Equifax, in addition to required documentation, parents need to fill out a form online and submit it via postal mail; minors who are 16 or 17 may request their own security freeze by phone or by mail. The websites for Experian and TransUnion provide further details on their respective processes, which includes document requirements and mailing addresses. It can take a few weeks for the bureaus to process these requests.

Keep good records for unlocking later in life

Parents need to keep safe the pin number they are provided when locking their child’s credit so it can be temporarily unlocked as needed, such as when the child turns 18 and wants to apply for a credit card, said Bruce McClary, senior vice president of membership and media relations at the nonprofit National Foundation for Credit Counseling.

The unlocking process isn’t necessarily seamless and can take time. Equifax, for instance, asks for these requests in writing, with required documentation for identity verification purposes. After age 18, Equifax allows for managing the security freeze online.

Educate children early on protection of personal information

Parents should talk to their children about best practices with respect to sharing personal information, McClary said. For instance, they should caution children to be careful about the kinds of information they provide to websites and apps and to keep their Social Security number close to the vest.

Parents may also want to consider credit or identity threat monitoring services or both. Certain providers may offer basic services for free, but family plans that include adults and children and offer a combination of credit and identity theft protection tend to be fee-based. These services — which can run around $24 or more per month — may offer more comprehensive protection, including identity theft insurance and fraud resolution services. Parents should weigh the options carefully to understand the choices and associated costs.

Technology

World’s largest chipmaker TSMC says it has discovered potential trade secret leaks

Published

7 hours ago

August 5, 2025

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TSMC workers walk down a hallway in a chipmaking fab in Taiwan. The company is building three such plants in Arizona.

TSMC

Taiwan Semiconductor Manufacturing Co. said on Tuesday that it had detected “unauthorized activities” that lead to the discovery of potential trade secret leaks.

The world’s biggest semiconductor manufacturer told CNBC that it has taken “strict” disciplinary action against the personnel involved and that it has also launched legal proceedings.

“TSMC maintains a zero-tolerance policy toward any actions that compromise the protection of trade secrets or harm the company’s interests,” the company said.

“Such violations are dealt with strictly and pursued to the fullest extent of the law. We remain committed to safeguarding our core competitiveness and the shared interests of all our employees.”

Semiconductors have grown in strategic importance in recent years as they have become the key pillar in the boom in artificial intelligence models and applications. Rising geopolitical tensions has put the spotlight on the competitive technological advantages of major firms in the chip supply chain like TSMC and other leaders across the board.

TSMC, headquartered in Taiwan, dominates the market for the manufacturing of the world’s most advanced chips and counts major tech giants including Apple and Nvidia as clients.

As the case is now under judicial review, TSMC is unable to provide further information, the firm said.

TSMC identified the issue early due to its “comprehensive and robust monitoring mechanisms,” the company said, adding that it carried out swift internal investigations.

Nikkei Asia, citing multiple sources familiar with the matter, reported on Tuesday that several former employees of TSMC are suspected of attempting to obtain critical proprietary information on 2-nanometer chip development and production while they were still working at the company.

Production of the 2-nanometer chip is among the leading edge manufacturing processes in the semiconductor industry currently. TSMC said it did not have any additional information to share when asked by CNBC about the Nikkei report.

As the world’s leading chipmaker, TSMC has a treasure trove of intellectual property. By its own account, the company has previously said it has more than 200,000 trade secrets recorded in its internal system.

It is not the first time that TSMC has been the target for potential theft. In 2018, a Taiwanese court indicted a former employee for copying trade secretes related to the 28-nanometer fabrication process, with intent to transfer them to a semiconductor company in mainland China.

In 2023, ASML, which makes machines that are required to manufacture the most advanced chips, said that it discovered that a former employee in China had misappropriated data related to its proprietary technology.

Technology

Hims & Hers stock falls 10% on revenue miss

Published

17 hours ago

August 4, 2025

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Hims & Hers stock falls 10% on revenue miss

The Hers app arranged on a smartphone in New York, US, on Wednesday, Feb. 12, 2025.

Gabby Jones | Bloomberg | Getty Images

Shares of Hims & Hers Health fell 9% in extended trading on Monday after the telehealth company reported second-quarter results that missed Wall Street’s expectations for revenue.

Here’s how the company did based on average analysts’ estimates compiled by LSEG:

Earnings per share: 17 cents adjusted vs. 15 cents
Revenue: $544.8 million vs. $552 million

Revenue at Hims & Hers increased 73% in the second quarter from $315.6 million during the same period last year, according to a release. Hims & Hers reported a net income of $42.5 million, or 17 cents per share, compared to $13.3 million, or 6 cents per share, during the same period a year earlier.

For its third quarter, Hims & Hers said it expected to report revenue between $570 million to $590 million, while analysts were expecting $583 million. The company said its adjusted EBITDA for the quarter will be between the range of $60 million to $70 million. Analysts polled by StreetAccount were expecting $77.1 million.

Palantir tops $1 billion in revenue for the first time, boosts guidance

Published

18 hours ago

August 4, 2025

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Palantir tops billion in revenue for the first time, boosts guidance

Palantir reports $1 billion in revenue for the first time

Palantir topped Wall Street’s estimates Monday, surpassing $1 billion in quarterly revenue for the first time, and hiking its full-year guidance.

Shares rallied more than 5%.

Here’s how the company did versus LSEG estimates:

Earnings per share: 16 cents adj. vs. 14 cents expected
Revenue: $1.00 billion vs. $940 million expected

The artificial intelligence software provider’s revenues grew 48% during the period. Analysts hadn’t expected the $1 billion revenue benchmark from the Denver-based company until the fourth quarter of this year.

“The growth rate of our business has accelerated radically, after years of investment on our part and derision by some,” wrote CEO Alex Karp in a letter to shareholders. “The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission.”

The software analytics company also boosted its full-year outlook guidance. For the full year, Palantir now expects revenues to range between $4.142 billion and $4.150 billion, up from prior guidance of $3.89 billion to $3.90 billion.