Identity Theft Presentation IDENTITY THEFT The fastest growing white-collar crime in America According to the FBI Identity Theft Privacy & Security Training Stanley Kania , CITRMS, The Institute of Fraud Risk Management is the nations only professional certification program ( CITRMS ) specifically developed to train and equip professionals to understand and address Identity Theft and related fraud issues. This is the same organization that trains F.B.I WHAT IS IDENTITY THEFT? It occurs when someone steals your personal information e.g., credit card or Social Security number and uses it fraudulently It can cost you time and money It can destroy your credit and ruin your good name Identity Theft is in the News Over 340 million Americans Identities have been reported lost or stolen since Jan. 2005 . PrivacyRights.org The revenue from trafficking financial data has surpassed that of drug trafficking . Secret Service March 2007 Identity Theft is Spiraling out of Control ! Indifference Lack of Feeling Ignorance Lack of Knowledge Inability Lack of Training or Education Inaction Lack of Respect FOUR AREAS OF NEGLECT Drivers License Medical Financial What someone is subject to as a victim of Identity Theft, is only limited to the imagination of the person who has their information. Social Security Five Types of Identity Theft Its not just about Credit Cards, its a Legal Issue ! Less than 28% Criminal Drivers License Identity Theft Your driving privileges could be suspended or revoked. You could be arrested during a routine traffic stop for crimes you did not commit. Thieves can open bank accounts , apply for credit cards and cash checks in your name . Our Drivers License has become an unofficial National Identification Card ! In November 2004 David Joe Hernandez served four years in the Air Force. So it came as a shock when he returned home and found Arrest warrant in Arizona for driving on a revoked license Responsible for 20 delinquent accounts for cell phone bills, credit cards, utility bill and hospital bills Linked to a string of felonies, including auto theft and drug charges State regulators began garnishing 60% of his wages to pay child support to a woman in Chicago he'd never heard of. Hernandez spent a year and a half trying to clear up the mess But things got worse. Drivers License Identity Theft Illegal Immigrants use your Social Security Number to gain employment or report income under your name. They take the income leaving you with the tax bill. They can file false income tax returns or even file for social security benefits using your number. Thieves and Criminals can use your SSN to apply for credit , obtain a Drivers License and much more 10 million Social Security Numbers are bought and sold every six weeks in the U.S. Social Security Identity Theft Why you are at Risk CHILDREN ARE A BETTER TARGET FOR IDENTITY THEFT THAN YOU. Children have a clean credit history and parents rarely have reasons to check their childs credit report. This crime can go undetected for up to 15 years. Why your Children are at Risk ? You could owe thousands of dollars for a procedure you never had. You could become uninsurable and be denied employment because of conditions that you do not have (AIDS, Diabetes etc) There are over 52,000,000 people in the U.S. without Health Insurance . (US Census Bureau 2007) Stolen Health Insurance Card are being sold on the black market for $500-$600 each ! (AARP) Medical Identity Theft Why you are at Risk You could be arrested for crimes you didnt commit. You could be denied employment because of fraudulent criminal records found during routine background checks. Security checkpoints at airports could become a nightmare for you. Thieves mask their criminal activity behind your identity Criminal Identity Theft occurs when an imposter gives another persons name and personal information such as a drivers license, date of birth or social security number to a law enforcement officer during an investigation or upon arrest. Criminal Identity Theft Why you are at Risk Victims of Financial Identity Theft are people who have had bank accounts wiped out, credit histories ruined and jobs and valuable possessions taken away . Thieves use your social security number to open new accounts and can change the billing address leaving you with the debt. Financial Institutions advertise zero liability for fraudulent activity on accounts if notified within 48 hours. What happens after 48 hours ? You could be responsible for debts you didnt create ! Financial Identity Theft Federal Trade Commission free report: 877.IDTHEFT consumer.gov/idtheft Financial Identity Theft Financial Identity Theft Pg. 19 To Take Advantage of this Law You Must send your letter so that it reaches the creditor within 60 days. If an identity thief changes the address on your account and you didnt receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill. Credit Monitoring is the best way to alert an individual of possible Financial ID Theft. Financial Identity Theft Financial Identity Theft Financial Identity Theft February 2004 ID Theft Victims Face Tough Bank Fights In 2003 , The Korinke family was sued by Homecoming Financial Network INC. , a division of GMAC, for $75,000, plus attorney fees. In 2001, an imposter got hold of a line of credit, switched the address , and the Korinkes never received the outstanding bills. Homecomings claimed the Korinkes had been negligent. The Korinkes were slow to discover and report the identity theft as such, Korinke is liable for any and all sums attributed to his negligence. Korinkes attorney said victims who dont have the means to find a good lawyer, may be losing out in battles with financial institutions. Financial Identity Theft FTC 3% Other Federal Agency 5% State Dept of Motor Vehicle Admin 7% State AG or State Consumer Agency 8% Lawyer 12% Credit Bureau 22% Local Police 26% Credit Grantor 43% Did Not Contact Anyone 38% WHERE DO VICTIM GO FOR HELP $500 : Credit Card Number with Pin $150 : Drivers License $150 : Birth Certificate $100 : Social Security Card $25 : Credit Card Number With Security Code And Expiration Date $7 : Pay-Pal Account Log-On And Password USA Today, October 12, 2006 Criminals covet your identity Data and have perfected more ways to manipulate your identity than you can imagine. How Profitable is Identity Theft ? The average dollar amount charged in Identity Theft: $92,893 Average number of checks written 74.6 The average number of credit card applications approved through Identity Theft: 8.4 - Sept 2003, Identity Theft Resource Center interviewed 2,000 victims The Cost to Individuals Identity Thieves dont discriminate! A professional thief can assume your identity in just a few hours, but it can take years for you to repair the damage and restore your good name! Over 70% of the time youll need an attorney to resolve these issues. 57% of victims had NEW ACCOUNTS opened in their name 62% had warrants issued for their arrest 82% found out through an adverse action Out of pocket cost to the average victim $1,865.27 Victims spent an average of 157.87 hours trying to clean up the mess.. 63% could not get their credit reports cleared 22% have their SSN tied to someone elses 19% had their fraud alerts ignored *(Identity Theft Resource Center 2007) Latest Facts About this Crime Pictures taken with cell phone camera after waiting several minutes for someone to respond. Identity Theft in the Workplace Access to the computer, mail and other documents possible. WHAT CAN YOU DO? DETER Deter identity thieves by safeguarding your information DETECT Detect suspicious activity by routinely monitoring your financial accounts and billing statements DEFEND Defend against identity theft as soon as you suspect a problem DETER identity thieves by safeguarding your information . Shred financial documents before discarding them Protect your Social Security number Dont give out personal information unless youre sure who youre dealing with Dont use obvious passwords Keep your information secure DETECT suspicious activity by routinely monitoring your financial accounts and billing statements. Be alert Mail or bills that dont arrive Denials of credit for no reason Inspect your credit report Law entitles you to one free report a year from each nationwide credit reporting agencies if you ask for it Online: www.AnnualCreditReport.com ; by phone: 1-877-322-8228; or by mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Inspect your financial statements Look for charges you didnt make DEFEND against identity theft as soon as you suspect a problem. Place a Fraud Alert on your credit reports by calling any one of the three nationwide credit reporting companies: Equifax: 1-800-525-6285 Experian: 1-888-397-3742 TransUnion: 1-800-680-7289 Review reports carefully, looking for fraudulent activity Close accounts that have been tampered with or opened fraudulently File a police report Contact the Federal Trade Commission