The lost child notification system is a transponder based alarm system that monitors the position of a tracked person relative to an appropriate authority who should be in the vicinity of the person. The lost child notification system comprises a supervisory bracelet and a tracking bracelet. The supervisory bracelet is a finding that is worn or carried by the appropriate authority. The tracking bracelet is worn or carried by the tracked person. The supervisory bracelet sends out a first electromagnetic signal that stimulates the tracking bracelet to respond to the supervisory bracelet with a second electromagnetic signal. If the supervisory bracelet does not detect the second electromagnetic signal, the supervisory bracelet generates an alarm. The tracking bracelet further detects whether the security of the tracking bracelet has been compromised. If the tracking bracelet has been compromised, the tracking bracelet generates the second electromagnetic signal.