How to check your child’s credit report and prevent identity theft?

The banks in the UAE allow a supplementary card to be provided to family members who are above twelve years old. Thus, a minor child may obtain a credit card, usually on another family member’s account. Children in the age group of 12 and above constitute an ideal age range to introduce them to financial responsibility in a controlled manner. Parents can teach them the crucial lessons concerning the physical safety of the cards, password protections and ensuring timely payment to avoid interest accumulation.

Despite the best preventive measures and password security, children can also often be subject to identity theft and thus, parents should consider following the below steps to ensure security. Identity theft constitutes a criminal offence which can be a misdemeanor or felony depending on the severity of the offence. Punishment can result in an imprisonment sentence from three years to even a thirty-year duration.

Pursuant to Article 399 of the Federal law no (3) of 1987 on the issuance of the penal code ("UAE Penal Code") "Detention or a fine shall be imposed upon anyone who seizes, for himself or for another, a movable property, or obtains a document or signature thereon, cancellation or destruction thereof or amendment thereto by fraudulent means, or by assuming a false name or capacity, where such an act leads to deception of a victim and leads him to surrender….".

Article 9 of the Law no.5 of 2012 on combating cybercrimes states that "whoever uses a fraudulent computer network by using a false address or a third-party address by any means for the purpose of committing a crime shall be punished with imprisonment and a fine not less than AED 50,000 and not more than AED 500,000."

Following precautionary measures should be undertaken:

• Personal information, including details of emirates id, should not be shared with any person.
• Social media privacy protection should be a key parameter.
• Phone calls that seek personal information should not be entertained as they can be a scam. The UAE banks do not require any personal information to be provided on call.
• Ensure security of the cards pin and wifi payment access.
• Regular monitoring of transaction alerts from bank and also periodical review of monthly bank statements.

It is critical that bank statements are periodically reviewed in order to ensure that in case you have been subject to financial fraud, you can take the immediate measures of blocking the credit card as well as filing a police complaint. Further, steps should be taken to immediately change all your passwords as the same might have been compromised.