College Student Reports Own Parents Over Fraudulent Credit Cards

One college student was left shocked when they logged into their credit report and discovered suspicious activity: there were three lines of credit listed in their name that they knew nothing about.

The student shared in a recent Reddit post that they discovered that it was their own parents, who struggle with finances, that opened the lines of credit. So, they reported the card registrations for fraud.

The third card proved difficult as it was opened when they were a teenager, and the servicer suggested that it was done with the college student's permission. They disputed this and now find themselves with thousands of dollars worth of new debt.

Beverly Harzog, a consumer finance analyst and author of The Debt Escape Plan: How to Free Yourself From Credit Card Balances, Boost Your Credit Score, and Live Debt-Free, told Newsweek that opening a credit account in a minor's name could be illegal and that the student could be entitled to file an identity theft allegation against their parents.

Speaking more generally, Harzog offered tips on what people can do to protect themselves against such dangers.

Check your credit score regularly

Harzog told Newsweek that college students should work to build their own credit history and use platforms such as annualcreditreport.com to check their credit score regularly.

"They can get that for free and check it out," she said. "You want to look to see if there are any accounts open in your name."

While this may not catch identity theft in terms of someone opening that account, it can catch unauthorized names on someone's account, Harzog added.

"So check your credit report regularly. That way, you can find out if anyone has opened anything in your name," she said.

Freeze Your Credit Line

Another thing to do, Harzog said, is to freeze one's credit line so that if someone opens something one their name, they can be alerted.

"Obviously, you can unfreeze, but if someone you don't know or someone you haven't given approval for doing that, then at least you have the power to control that," she pointed out.

Having unknown debt can take a while to unburden, Harzog said, noting that the college student from the Reddit post could file an identity theft report to help.

"It can take a long time to rebuild a credit score," she said.

Check Your Bank Account Regularly

For debit card accounts, it is worth it for the owner to check their balances regularly to see if unauthorized transactions have taken place.

"Check your account online because it's not inconceivable that a parent who would open a credit card in your name also might decide to use your card to buy something or to pay a bill they need to pay desperately," Harzog told Newsweek. "So check your account online, look at the transactions to make sure that all of these purchases and transactions came from you and not from some outsider."

Protect Your Passwords

While making transactions online, Harzog advised that people always use a secure platform and refrain from sharing their passwords.

"With the little padlock sign up there, don't share your passwords," Harzog said. "You might think. 'Okay, you know, I'm gonna share my passwords with my debit card or something with a friend so they can get some money for me.' Don't do stuff like that. Change your passwords frequently."

Fraud is a challenge, particularly for college students who may be distracted by the hectic schedule of university life. So, this demographic needs to be even more careful.

"Be sure nobody's trying to look over your shoulder," Harzog said. "It's great to have credit cards with chips. But if you lost your card, you know they can still clone that cause there's still a magnetic strip on the back."

She added: "There's only a certain amount of protection from the chip if you lose your credit card, it's out of your sight. You have no idea where it is. Contact your credit card issuer right away and let them know so that they can put a freeze."

Newsweek reached out to the college student via Reddit for comment.