Keep It Safe

Homework(Passport page 42)

How’s It Going?

Keep It Safe

• Identity theft and how to avoid being a victim

• Elder financial abuse and how to protect elders

• How the various types of insurance will help you manage risks

• Financial preparedness in the event of unexpected life events and natural disasters

What Do You Know?

(Pre-Test page 4)

Let’s Talk About

You

Did You Know?• The number of U.S. identity fraud victims rose 12% to

11.1 million adults in 2010, the highest level since the survey began in 2003.

• Women were 26% more likely to be victims of identity fraud than men in 2010.

• The likeliest prospects for committing identity theft are often found right in your own home. They include:

– Roommates

– Family members

– Children or teen visitors

– Cleaning people or contractors working in your home

Source: FiCEP, Matching Values to Money. 2011

What is Identity Theft?

When thieves steal your personal information and pretend to be you.

If not detected early, you may face months or years cleaning up the damage to your reputation and credit rating.

Common Forms of Electronic Identity Theft

Phishing

• Unsolicited emails that appear to be from a legitimate source

Pharming

• Fake websites seeking personal or private information by appearing legitimate

Skimming

• Special storage device used to obtain credit/debit card numbers

Texting

• AT&T, Verizon and T-Mobile ~ 7726

Victims Should Take Action Immediately

• File a police report

• Contact your creditors

• Follow up in writing

• Use the ID Theft Affidavit at ftc.gov/idtheft

• File a complaint with the FTC

• Ask for verification that disputed accounts have been closed and fraudulent debts discharged

Fraud Alerts

Initial fraud alert – 90 days

Extended fraud alert – 7 years

– Prospective lenders must contact you to authorize any new account in your name.

Security freeze

– You must authorize any access to your credit report.

What to Do If Your Wallet or Purse is Lost or Stolen

• Report the loss to your bank or credit union

– New checking account

• Contact major check verification companies

• Get a new Debit Card with a new number and password

Elder Abuse

• Taking money or property

• Forging a signature or using deception to get the elderly to sign legal documents

• Using property or possessions without permission

• Promising care in exchange for money or property, and not following through

• Using telemarketing to commit scams against older people

Potential PerpetratorsFamily members that may:

– Have substance abuse, gambling, or other problems

– Stand to inherit money

– Fear inheritance will be used up

– Have had a negative relationship with the elder

– Have negative feelings towards other beneficiaries

Telemarketers

Who is at Risk?The following conditions or factors increase an

older person’s risk of being victimized:

– Isolation

– Loneliness

– Recent losses

– Physical or mental disabilities

– Lack of familiarity with financial matters

– Ties to family members who may have substance abuse problems

Insurance

• Protects you (and your family) from financial loss if the unexpected happens

• Prevents you from having to use funds set aside for other financial goals or emergencies

• Prevents you from going further into debt by having to borrow money

Types of Insurance

Life insurance

Health insurance

Homeowner’s/renter’s insurance

Auto insurance

Liability insurance

Disability insurance

Determining Your Needs

• Coverage depends on your circumstances

• Insurance is sometimes required

• Shop around

– Ask about discounts

– Compare deductibles

• Credit score matters!

• Higher deductible = lower premium

Planning Ahead

• Long-term Care

• Disasters

• Death or Estate Planning

Homework(Passport page 44)

Questions?