[Some] parents are stealing their children’s identities to access debt—and destroying their kids’ credit scores in the process

A landmark 2011 study by Carnegie Mellon CyLab revealed that children are particularly vulnerable to identity theft.

Analyzing data from over 40,000 American children, researchers found that 10% had their Social Security numbers misused by others. This made children 51 times more likely than adults to fall victim to identity theft. The stolen identities were used to purchase homes, cars, open credit cards, and even secure employment. The youngest victim discovered in the study was just five months old.

In a 2021 study by Javelin Strategy, one in 50 U.S. children was found to experience identity theft annually, with 73% of cases involving someone personally known to the victim. Hari Ravichandran, CEO of digital security firm Aura, noted that the perpetrator is often a family member.

“A lot of the time, it involves families facing economic hardship or addiction issues,” Ravichandran told Fortune. “When kids are born, they receive a Social Security number that often remains unused until they’re 17 or 18. This creates a window where their identity is ‘clean’ and vulnerable to exploitation.”

A Shocking Discovery: Family Betrayal

For some, the betrayal is deeply personal. Alexis Betz-Hamilton didn’t uncover the identity of her perpetrator until after her mother’s death in 2013. Weeks after her passing, Betz-Hamilton’s father found a credit card statement in her name among her mother’s belongings. Initially angry, believing she had misused the card, her father soon realized it was part of a broader pattern of fraud.

Further investigation revealed that Betz-Hamilton’s mother had stolen not only her identity but also those of her father and grandfather. “It was like experiencing two extreme emotions,” Betz-Hamilton said. “On one hand, relief—we finally knew who did it. On the other hand, devastation—it was my mom.”

The Fallout of Identity Theft

Betz-Hamilton’s mother’s actions had dragged her credit score to 380 before she even had a chance to build her own credit. With FICO Scores ranging from 300 to 850, and 700 considered “good,” her low score placed her in the second percentile nationwide. It took years to rebuild her financial health.

“I had to start with a credit card from a subprime lender with a $300 limit and exorbitant interest,” Betz-Hamilton shared. “My first car loan for a five-year-old used car came with an 18.23% APR—that’s like putting a car on a credit card.”

Though her credit report was eventually cleared of fraudulent entries, the emotional and financial toll lingered. “I told my mom how bad it was,” Betz-Hamilton said. “She worked in financial services and was the person I turned to for help.”

Motives and Patterns

Experts suggest financial strain is often the driving factor behind such crimes. Wayne R. Cohen, a D.C.-based attorney, explained that parents with poor credit may use their child’s clean identity to make debt-based purchases. “In most states, this is a crime,” Cohen said, listing charges like fraud and identity theft as possible outcomes.

Reflecting on her mother’s motivations, Betz-Hamilton speculated that compulsive spending and a need to impress others played a role. “My grandmother was similar—focused on appearances and material status,” she said.

A Broader Issue

Many others have shared similar experiences on social media. One person wrote, “The first credit report I pulled at 18 had a gas bill from 1999. I was born in ’89.” Another shared how her mother’s actions left her paying off debt into adulthood. “It took until my thirties to stabilize my credit,” she said.

The common thread in these stories is trust. “You trust your parents,” Betz-Hamilton said. “No one expects the people who are supposed to protect you to be the ones who betray you.”