IDENTITY THEFT

Tom BehnWillie JohnsonMike Kellen

Who is the easiest target?

YOU!Teenagers and young adults

Most vulnerable due to lack of established credit

Less likely to check credit records

Many do not find out until well after theft has occurred

Identity TheftDefinition

HistoryTypesGovernment Action

Statistics

Prevention and Recovery

What is Identity Theft?

Identity theft occurs when someone else uses your personal information to assume your identity.Can be used to commit fraud or other crimesExamples:

Your nameSocial Security numberCredit card number

http://www.youtube.com/watch?v=kn_kJADfKng&feature=related

Historyof Identity Theft

HistoryEarly History

I.D. Theft as been around for as long as there has been identities to steal.

The old, common practice was to kill a person and just assume their name.

HistoryModern History

Phone ScamsDumpster DivingFraudulent websites

Typesof Identity Theft

TypesCharacter

Someone can commit a crime in your name

Social Security NumberSomeone uses your number to gain a jobYou pay their income taxes

Medical Someone gaining medical insurance in your

name. False information could leave you helpless.

TypesDriver’s License

Someone commits traffic violations in your name.

When they fail to appear in court, warrants are issued for you.

CreditSomeone uses your credit to obtain loans

or goods, and leaves you with the bill.

How are they getting your information?

Dumpster DivingNot actually a Crime

Phone Scams

Phishing

Sourcesof Identity Theft

Bank Statement

Credit or Debit Card(Front)

Credit or Debit Card(Back)

This will vary depending on issuer of Credit or Debit card

Personal Checks

Driver’s License

Social Security Card

How secure is your computer?

PhishingUsing Phony websites and installing

spyware to track your every move.Be careful where you enter your information!

Government Action

on Identity Theft

Previous Legislation Identity Theft Victims Assistance Act of 2002Nation Wide Process for victims to obtain

records to facilitate correction of records, and catch thieves.

Expanded the Role of the Federal Coordinating Committee

Expanded the Statute of Limitations for the Fair Credit Reporting Act to five years, up from two.

Required agencies to block reporting of bad credit.

Previous LegislationIdentity Theft Prevention Act of 2001

Increased the penalties for anyone who commits:“Aggravated Identity Theft”Purpose of a terrorist act or serious federal offence Including: Immigration violations and false

citizenships Made Identity Theft easier to proveIncreased term of imprisonment for

ordinary Identity Theft

Statisticsof Identity Theft

Breakdown of Types of ID Theft

Age Group for Identity Theft

Monetary Losses$221 billion a year are lost worldwide

Victims lose an average of $1,800 to $14,000 in wages when dealing with ID theft

Victims spend an average of $850 to $1400 in expenses recovering

Uses of Stolen Information

33% of victims report fraud to checking account

66% report a new credit card account has been opened in their name

28% report a new cell phone account has been activated

12% report having warrants issued in their name for crimes they did not commit

Prevention and Recovery

of Identity Theft

3 “D’s” of Identity Theft

DETERPrevent thieves from accessing your

personal information

DETECTDiscover fraud occurring before serious

damage is done

DEFENDFix the accounts and information thieves

have stolen

Deter/PreventionPersonal Information

Finances

Physical Documents

Internet

Deter/PreventionPersonal Information

“Need to know” approachAsk Why and Who

Limited personal information that is “out there”www.optoutprescreen.comwww.donotcall.gov

Deter/PreventionFinances

Less information on personal checks Convert bill paying to automatic deductions

online Use Cash

If using “plastic,” use Credit Card. Debit Cards are tied into checking accounts

Deter/PreventionPhysical Documents

Shred all documents with personal information

Have photocopies of all your important cards and documents

United States Postal ServiceUse the post office to mail bills and important

documentsP.O. Boxes are securest mailboxes.

Deter/PreventionInternet

Know your friends AND enemiesFacebook, MySpace, Dating Sights43% of victims know who stolen their identity

Do not make passwords and PIN numbers obviousDo NOT use birthdays, anniversaries, social security number, etc

Passwords73% use bank passwords EVERYWHERE

65% use a bank user ID on another website

Have three “families” of passwordsFinancial sites (banks, stock market)Personal Information (email, FAFSA, Facebook)Generic log-ins (game sites, website

memberships)Carefully consider on-line shopping sites when selecting passwords. They store credit card information

Use AT LEAST 8 charactersRandom Capitalization

Detect/MonitorKnow when bills and statements usually comeReview thoroughly

Request your free credit reports yearlyEquifax, Experian and Trans UnionOne every 4 months

Social Security number is not monitored on your credit reports

Detect/MonitorWhen encountering “pop-ups” from websites, if they ask you to verify your personal information, do NOT fill out the formMost well-known affiliates will ask for

this information BEFORE the transaction is completed

YOU can do the best job monitoring your ID, not insurance companiesi.e. Lifelock

Defend/RecoveryFile a police report

Some credit agency require a hard copyPrevents payment resulting from fraudulent

chargesCopy needed to file an “extended fraud

alert” on credit report

Close all tampered or new accounts openedFor credit cards, notify in writing.

Collection agencies need written proof

Defend/RecoveryNotify the credit reporting agencies

“Extended fraud alert”Monitors you credit reportsAgencies call when new accounts are opened without your approval

“Security Freeze”

File a complaint with the FTCList of previous offendersKnow companies that may have history of

fraud

Recovery NumbersTime to Recover

3 hours to 240+ daysAverage is about 2 weeksThis is spent over a span of 4 months to 1

year

Are You at Risk for Identity Theft?

Test Your “Identity Quotient” I receive pre-approved credit cards, etc every week

(5)

I do NOT shred the pre-approved offers (5)

I carry my Social Security card with me (10)

I use a computer and do NOT have update anti-virus, anti-spyware and firewall protection (must have all 3) (10)

I do NOT ALWAYS lock my house/apartment/room (10)

I have NOT ordered a copy of my credit report in the last 2 years (20)

I use my personal mailbox to send letters (10)

Are You at Risk for Identity Theft?

Test Your “Identity Quotient” I do NOT have a P.O. Box or locked mailbox (5)

I throw away old credit or debit cards WITHOUT shredding them up (5)

I do NOT shred bank or credit card statements up (10)

I use an ATM WITHOUT checking for signs of tampering (5)

I provide my SSN WITHOUT asking why it is need (for example, on applications) (10)

I leave my purse or wallet in the car (10)

Are You at Risk for Identity Theft?

Test Your “Identity Quotient” I have my Drivers License number or SSN printed

on my checks (10)

I believe my trash is “secure.” (10)

I do NOT look at my monthly statement of all major bills and financial statement FOR FRAUD (This includes bank, credit card, cell phone, utilities and investments) (20)

Results0-49 points = You have a high “ID theft IQ,” Congratulations

50-99 points = Your chance of being a victim are about average

100 + points = You are at high-risk for ID theft

Bottom line, most of us are at risk for ID theft