No, it cannot be bites. There are few ways through which you can get rid of it. Mix colloidal oatmeal with water, soak cloth in it, and apply it on scab. Keep it there for few minutes and let the skin soften where it is affected. Scab will come off after a while due to soft skin. If it does not work apply Hydrocortisone ointment. This will heal the area soon. You should no that it is ringworm or not. That is if there is hair loss also at that particular area of skin. Ringworm is contagious to pets and humans as well. So keep your children away from it till it recovers.