Advanced Identity Theft Responses:

Financial Identity TheftNational Center for Victims of CrimeWebinar – September 10, 2014

FINRA & FINRA FoundationFinancial Industry Regulatory Authority (FINRA)► Independent, non-governmental regulator for all securities

firms doing business with the public in the U.S.► Protects investors and maintains market integrity in a

public-private partnership with the SEC► Created through consolidation of NASD and NYSE

Regulation► Regulation, enforcement, education

FINRA Investor Education Foundation► Awards grants and manages targeted projects focused on

investor education and protection

National Center for Victims of Crime► Mission: Forge a national commitment to help victims of

crime rebuild their lives. ► Dedicated to serving individuals, families, and

communities harmed by crime. ► Through collaboration with local, state, and federal

partners, the National Center:─ Advocates for Stronger Rights, Protections, and Services for Crime

Victims

─ Provides Education, Training, and Evaluation

─ Serves as a Trusted Source of Current Information on Victims' Issues

Financial Crime Resource Center► Affiliate of the National Center for Victims of Crime► Mission: Help victims of financial crime recover their

assets, and recover control of their lives ► Partner with organizations around the U.S. who work

with victims of fraud, identity theft and other financial crimes to ensure that victims have access to the best possible recovery

► Advocate for fair compensation and restitution for all crime victims

PRESENTERS

Hazel HeckersCO Bureau of Investigation, Identity Theft/Fraud Investigation UnitID Theft Advocacy Network of CO

Merry O’BrienNational Identity Theft Victims Assistance Network

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Objectives

I. Understand how identity theft can harm victims and the barriers faced in recovery

II. Identify the steps to help your clients take following the financial identity theft victimization

III. Learn to build your organization’s capacity to address the needs of identity theft victims

IV. Access advocate training tools, materials for clients, and other online resources

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The harm identity theft can cause to

victims & barriers victims

face after the victimization

Part I:

Identity Theft: A Quick Recap

Identity theft is the misuse of another’s personal information to:– fraudulently obtain

• goods or services• a job• medical treatment, medications, or

equipment• government services or benefits

– hide from government, law enforcement, or others who perform background checks

Remember: Financial IDT is One of Many Types

Criminal Identity TheftMedical Identity TheftChild Identity TheftSenior Identity Theft Identity Theft Related to

Governmental Processes (tax, social security administration, social services)

Domestic Violence Related Identity Theft

How Does ID Theft Hurt Victims?

• Direct financial losses, damage to credit score, reputation

• Dangerous medical mistakes• Denial of employment, housing• Reduced ability to escape a domestic violence

abuser• Inability for young adult to buy a car, secure an

apartment, receive a student loan – gain independence

• Problems with IRS• Civil judgments, criminal record, false arrest or

detainment• Emotional harm• Time and cost of repairing damage

Some of What May Be Involved…

• Criminal History (state/nation)

• Driving Records• Employment History• Warrants• DOC Records• Liens or other court actions• IRS & State Dept. of

Revenue Actions• Property• Vehicles• Addresses

• Known Relatives & Associates

• Insurance Claims• DL/Mug Shot Photos• Social Media Information• Credit Headers, Financial

Inquiries• Student Loans• Birth & Death Records• Social Security Number

Confirmation Inquiries• Medical Records

• 16.6 million ID theft victims in 2012; – 15.3 million – criminal misused of existing account;– 1.9 million – criminal opened a new account or other fraud

• Total financial losses in 2012 = $24.7 billion• Recovering victims spent an average of $2,200 in out-

of-pocket costs, average of 600 hours of recovery work.

• Over 3 million experienced issues such as having utilities cut off, being arrested, finding erroneous claims on their health records, having child support garnished for children they never had, and being harassed by collection agencies.

*Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey Supplement, Victims of Identity Theft, 2013

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What Does the Data Tell Us?

Over half of the victims feel moderate to

severe distress from the identity theft.

Not a “Victimless Crime”

Langton, L. & Planty, M. (2010). Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey

Supplement, Victims of Identity Theft 2008.

Latest Data from BJS

Total ID theft Credit card New account PII Total violence0

5

10

15

20

25

30

35

40

45

50

3331

29

37

26

20

11

29 30 29

Moderately distressing Severely distressing

Langton, L. & Planty, M. (2013). Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey Supplement, Victims of Identity Theft

I apologize for the vernacular, but it just sucked, what he did. As soon as I hit…college...everything went downhill when everyone’s life should be going uphill, mine

sank like a stone to the bottom of the ocean.

It took so long to dig out from underneath…it was always just this constant never knowing…“What shoe’s gonna drop? What bill is gonna come in the mail? Who’s gonna sue me today?”…That’s how you live your life…a state of paranoia…That sort of consumes you. And

you’re also never taken seriously by anyone, so when you do speak to the police…they think you’re lying.

You know, as an adult now in my early 30s, it’s not something I think of every day, but I think of what could I

be doing now at 30 hadn’t this happened…my contemporaries all have jobs and nice homes. I don’t

particularly have that…I didn’t have that good foundation to build upon; my foundation was already used up

before I got there.“The Experiences of Adult/Child Identity Theft Victims,” Axton Betz: http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=3764&context=etd

“Not only am I getting bills for hundreds of thousands of dollars, but operations,

pregnancies, substance abuse treatment—even an extended stay in an in-patient mental

health hospital—are all showing up on my child’s medical history. He is only 5! And what

happens if we get in a car accident or something and I can’t tell them in the

emergency room? Will this kill my baby?” -From a mother of an IDT Victim Served by CBI“I travel for my business. Now that this has

happened, I have turned down jobs out of state because I’m afraid I might still be on a No Fly List and end up in prison. The police told me the person using my ID has made terrorist threats against the President. That is really

scary!” -From an identity theft victim helped by CBI

Trauma Response• Shame and

embarrassment • Reluctance to

report• Fear• Unsure of how to

report, overwhelmed

• Fear of recurrence• Anxiety,

depression, suicide• Feelings of

“paranoia”• Confusion &

disbelief• Challenges in

relationships, divorce

• Loss of trust• Alteration of

Lifestyle and prior life responses

• Spiritual Questioning

No Justice For Me• Victims feel they receive no sense of justice for

the crimes perpetrated against them• Repeatedly violated, often by same person, yet

no arrest• Not only does perpetrator go free, but is also

free to commit the crime again and again• Law Enforcement, Victim Advocates and “the

system” often part of the problem – rather than a support

• So….how can we provide a compassionate and competent response?.....

RECAP: BASIC STRATEGY

• Stop impostor activity• Report the crime• Repair the damage• Prepare for re-

victimization

Recap: Basics for Victim Advocates

• Remind victims to maintain copies of ALL paperwork associated with case in a secure, easily accessible location

• Encourage questions & clarification• Encourage victims to keep detailed notes about

contacts• Documentation is vital• Helping victims of IDT takes time & requires

working with many organizations and agencies• Access Experts—if you do not know what you are

doing, you will create more work for the victims• Work Collaboratively

Part II: Response & Repair

Credit Reports

• How to read• What it shows• What it does not show• When to take further action• Who to call for help

Anatomy of a Credit Report

• Personal Information• Public Records (financial) • Credit History• Inquiries or Credit History Requests• Personal Statements/Fraud Alerts• “Other”

What a Credit Report Does Not Show

• Credit Reports show most financial information, but do not always include:

• All credit accounts (such as those opened at a “Buy Here Pay Here” car lot or a Rent to Own Shop )

• Who is using the person’s credit

• Business credit opened in the person’s name

• ID Theft that is not financial

Repair

First Steps

• Obtain Credit Report from all 3 Credit Reporting Agencies(CRA)

• Report to Law Enforcement (some businesses will require a police report)

• Report to the FTC with the FTC ID Theft Affidavit (optional, but helpful): 877-ID-THEFT

Repair

• Place Fraud Alerts• Consider Credit Freeze• Determine what entries are fraudulent• Begin requests for corrections/blocking• Respond to any collections actions• Request documentation from creditors

Fraud Alerts• 90 days • Renewable for 7 years• Entitles victim to one free credit

report• Credit reporting agencies:

• Equifax: 800-525-6285• Experian: 888-397-3742• TransUnion: 800-680-7289

• Creditors must take “reasonable steps” to verify one’s identity

Credit Freezes• Must request in writing from each

credit reporting agency

• Blocks all new credit

• Effective until lifted

• Possible fees, if no accompanying police report or Identity Theft Report

Dispute Letters

• Send to all 3 CRA’s

• Fraud Department of ALL creditors that are inaccurate—even if account is in good standing

Dispute Letters• Cover letter explaining situation• Copy of Police Report • Copy of FTC Affidavit (optional)• Proof of ID

– 2 forms of government issued ID• State ID or DL• SS Card• Birth Certificate• Verification of Guardianship status or other legal status

Dispute Letters

• Letters Must State:– Victim of ID Theft– Credit Report inaccurate due to ID Theft– Request inaccurate information is BLOCKED

from appearing on credit report – Request verification of actions taken

Sample Dispute Letters Available

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Access to Justice – Statewide Legal Services Websites

Find your state’s here: identitytheftnetwork.org/GetHelp

Return Letter• Request Verification that:

– Account is fraudulent and does not belong to victim

– Victim is not liable for debt or account– Date account was closed– Date account was removed from all 3 CRA’s – Creditor will not sell or transfer loan under

victim’s name and will not report to CRA in future

Blocking

• Once CRA accepts ID Theft report, it MUST– Block the fraudulent information within 4

business days– Notify business of the block and ID Theft

findings

Blocking

• Once business is notified of block, it MUST– Stop reporting info on that account to the

CRA’s – Must not sell or transfer debt for collections

Obtaining Documentation• Contact Fraud Department of creditor and

request all documents:– Used to open new accounts– Used to charge purchases– Details of where and when fraudulent

transactions took place– Copy of any applications for credit or loans,

including signatures and copies of ID’s used

Obtaining Documentation

• Documents must be sent AT NO COST to victim within 30 days

• Law Enforcement may be able to obtain documents more quickly

Repairing Other Actions

• Bankruptcy• Investment Accounts• Foreclosures• Fraudulent Student Loans

Debt Collectors• Tell the debt collector to stop calling as debt is due to ID

Theft– Ask that the account be flagged as ID Theft being

disputed

• Write to the debt collector– Include all info mentioned above

• Call and write to the initiating business– Include all info mentioned above

Debt Collectors• Notifying debt collectors that debt is related to ID

Theft may not stop civil law suits

• Request mediation

• Seek legal representation

• Prepare documents (see obtaining documents)

Document All Actions• The most important thing any victim of ID Theft or person assisting a

victim of ID Theft MUST do:

• DOCUMENT EVERYTHING• Keep record of all calls, letters sent, reports files• Copy everything• Send emails as follow up for phone calls so there is written

documentation of conversation• Request read receipts and a response from party emailed

verifying info included in your email• ALWAYS get the name and title of party speaking with• Send Certified Mail

Questions?

Building your organization’s capacity to

address the needs of identity theft victims

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Part III:

Tips• Understand process before trying to lead

victim through it• Establish contacts in community who will

help– Banks and Credit Unions– Financial Advisors– Credit Card Companies– Attorneys (including “Legal Aid”)

Tips• Consider Retired Volunteers

– Retired Bankers– Retired Fraud Investigators– Retired Law Enforcement– Retired Prosecutors– Retired Attorneys– Retired Business Owners– Retired IRS Employees

Tips• Do you have a grant that requires or

allows volunteer hours as Matching Funds?

• You may be able to count “specialized volunteers” at a higher dollar per hour rate

• Win for your agency and Win for the victims

A Word About Criminal Enterprises• Identity Theft & Fraud have been directly

linked to Global Organized Crime Activities including: – Human Trafficking– Drug Trade– Terrorist Activities – Known Terrorist Organizations

Questions?

Advocate training tools, materials for clients, and other online resources

Part IV:

Advocates’ Handy Desk Guide

www.consumer.ftc.gov/articles/pdf-0119-guide-

assisting-id-theft-victims.pdf

Lawyers’ Handy Desk Guide

Resources for your Clients & Outreach Materials

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Alerts on Latest Fraud & Scams

aarp.org/FraudWatchNetwork

IdentityTheftNetwork.orgTwitter.com/IDTheftNetwork

Facebook.com/IdentityTheftNetwork

A Support Network for Professionals Helping IDT Victims

• Printable Outreach Material– Brochures– Website Material– PSA Scripts & Audio & Visual Samples

• Quick Tip Sheets• Ready-To-Use Forms• Sample MOU’s • Slides, Instructor Manuals, Worksheets• Access to Topic-Specific Trainings & National

Experts

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Finding Your State’s Laws & Resources

• State Victim Resources (numbers, links)

• Security Freeze Law & State-Specific How To’s

• Mandatory Police Report Law for IDT Victims

• ID Theft Passport Law• Inclusion in state’s restitution

definitions• Related Laws including Civil Suits,

Access Devices, Computer Crimes, Security Breaches

Online Interactive Training for Advocates

Resource Round Up

FTC - ftc.gov/idtheftOVC - ovc.gov/pdftxt/IDTrightsbooklet.pdf

NCVC Financial Crime Resource Center - victimsofcrime.org/our-programs/financial-crime-

resource-centerNational Identity Theft Victims Assistance

Network - identitytheftnetwork.orgAARP - aarp.org/FraudWatchNetworkIdentity Theft Resource Center -

idtheftcenter.org

Questions?

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Hazel Heckers:Hazel.Heckers@state.co.usCO Bureau of Investigation, IdentityTheft/Fraud Investigation UnitID Theft Advocacy Network of CO

Merry O’Brien: Merry@nvrdc.orgNational Identity Theft Victims Assistance Network

What’s Next?► Download or order a copy of Taking

Action: An Advocate’s Guide to Assisting Victims of Financial Fraud

• SaveAndInvest.org/FraudCenter – see Program and Outreach Toolkit

► Encourage your colleagues to order copies of the guide.

► Stay tuned for future webinars related to financial fraud advocacy.