People are buying and selling Social Security numbers of children and newborns online.
Consumer advocate Adam Levin says a thief may be able to use a child's identity for years without anyone finding out.
Warning signs of child identity theft include children receiving preapproved credit card offers, mortgage information or jury duty.
Other warning signs include the IRS sending an unexpected tax bill, which can indicate someone else is claiming your child as a dependent.
Experts say these warning signs indicate your child has a credit file, which is a big red flag.
Levin says if your child's personal information has been compromised, you should contact the three credit reporting agencies and put a credit freeze in place.