LSEG Risk Intelligence has issued a stark warning about the surge in child identity theft, revealing that one in every fifty children is now a victim each year.
Its latest report, It Takes an Industry, urges financial institutions to take immediate action to combat this growing threat.
The report highlights a 13% rise in identity fraud-linked profiles and a 43% increase in entities allegedly used to commit identity fraud in the LSEG World-Check database since March 2024. It also notes a 12% growth in entries tied to organised crime groups.
Synthetic identity fraud, where fake identities are created using real and fictitious information, is on the rise—often targeting children whose credit profiles are unmonitored. The issue is spotlighted in LSEG’s new documentary, One in Fifty, featuring employee Renata Galvão. Her identity was stolen at age six and used to create companies, leaving her with over $400,000 in debt before she reached adulthood.
Galvão said, “I was only six years old when my identity was stolen and for years, I had no idea. By the time I started work, it was already too late. If we can protect children from physical harm, we should be able to protect them from financial abuse too.
“I’m choosing to speak up now, so no one else has to go through what I did.”
LSEG Risk Intelligence global head of product & data David White added, “Since Renata’s ordeal over twenty years ago, fraudsters have become more sophisticated, using AI and social engineering to target the most vulnerable.
“Children are being targeted because they know our systems weren’t designed to spot them. This has to change. No one organisation can fix this alone – it’s going to take the entire industry working together to protect the most vulnerable among us.”
Watch the trailer for the documentary here.
The full report can be downloaded here.
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