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
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