IDENTITYIDENTITY THEFTTHEFT““The Crime of ImpersonationThe Crime of Impersonation””

Gene FoleyGene FoleyPresident & CEOPresident & CEO

What is Identity Theft ?What is Identity Theft ?

Under the Fair and Accurate Credit Under the Fair and Accurate Credit Transaction Act (FACT Act) of 2003, Transaction Act (FACT Act) of 2003, Identity Theft means: Identity Theft means:

““A fraud committed or attempted using the A fraud committed or attempted using the identifying information of another person identifying information of another person without authority.without authority.””

16 CFR 603.216 CFR 603.2

I.D. Theft Law

Citi Identity Theft Solutions

Computer Geek

StatisticsStatisticsIdentity Fraud cost the U.S. $56.6 billion in 2006Identity Fraud cost the U.S. $56.6 billion in 2006

$45 billion in 2007 $45 billion in 2007

Over 9 million identity fraud claims filed in 2006Over 9 million identity fraud claims filed in 20068.1 million claims in 20078.1 million claims in 2007

The average fraud per person increased by over 20% The average fraud per person increased by over 20% from $5,249 in 2003 to $6,383 in 2006from $5,249 in 2003 to $6,383 in 2006

The average time spent by victims resolving the problem The average time spent by victims resolving the problem is about 40 hoursis about 40 hours

About 70% of identity theft is related to credit cards About 70% of identity theft is related to credit cards

Types Identity TheftTypes Identity TheftUse existing credit / debit / ATM card in your nameUse existing credit / debit / ATM card in your nameEstablish new credit in your nameEstablish new credit in your nameEstablish phone or internet service in your nameEstablish phone or internet service in your nameWrite bad checks in your nameWrite bad checks in your nameAuthorize electronic transfers out of your bank or Authorize electronic transfers out of your bank or brokerage accountbrokerage accountBuy a car or house in your nameBuy a car or house in your nameCommit a crime and avoid prosecution Commit a crime and avoid prosecution Get a job in your nameGet a job in your nameFile a tax return in your nameFile a tax return in your nameMake an insurance claim in your name Make an insurance claim in your name

How is Identity Theft perpetrated?Merchant Data Security Breaches – BJ’s Wholesale Club / TJX Corp. / Hannaford's 4.2 million cards compromisedHacking Computer Systems – Harvard Graduate School of Arts and SciencesLost / stolen data (laptops, files with sensitive info)Insider transactions (banks, card companies, doctor’s office, etc.)Key loggers and SpywareDumpster DivingShoulder SurfingStealing MailPhishing - internetVishing - telephoneSkimmingStolen wallets & handbags

How was Identity Stolen?

How was theft discovered ?

ID Theft Victim Problems

Stealing Your LifeFrank Abagnale {Catch Me If You Can}

Going Rate for Stolen Information:Social Security Number - $49Drivers License - $90Birth Certificate - $79

“When Frank Abagnale trains law enforcement officers around the country about identity theft, he asks officers for their names and addresses and nothing more. In a matter of hours he can obtain everything he would need to steal their lives: their Social Security Numbers, dates of birth, current salaries, checking account numbers, the names of everyone in their families and more”

Zabasearch.com

http://www.zabasearch.com/

Some of my favorite scams

High Tech and Low Tech

The Lebanese Loop

Check Washing

Two Victims

1. You2. The Bank

How much are you on the hook for?Electronic Withdrawals (Reg. E)Financial institution needs to be notified within 60 days of receipt of the

statement in which the first unauthorized transaction appears.

Card holder liability:

Report within 2 business days of loss – limited to $50

Report after 2 days, but within 60 days – limited to $500

Report after 60 days – full liability

Exercised reasonable care in safeguarding card.

Have not had 2 or more instances of unauthorized activity in the past 12 months.

Account is in good standing.

As a practical matter – card holder assumes “zero liability”

How Identity Theft HappensHow Identity Theft Happens

FINCEN

James H. Freis, Jr. Director – JD Harvard Law SchoolAppointed by Treasury Secretary Henry M. Paulson

on March 5, 2007

How do the thieves USE your How do the thieves USE your Personal Information?Personal Information?

They call They call YOUR CREDIT CARDYOUR CREDIT CARD company company They open a They open a NEW CREDIT CARDNEW CREDIT CARD account account They get They get PHONEPHONE or wireless serviceor wireless serviceThey open a They open a NEW BANK ACCOUNTNEW BANK ACCOUNTThey file for They file for BANKRUPTCYBANKRUPTCY in your name in your name They take out They take out AUTO LOANSAUTO LOANS in your name.in your name.They use They use YOUR BANKYOUR BANK, checks and ATM , checks and ATM cardscards

Types of ID TheftTypes of ID Theft

What if my identity is stolen?What if my identity is stolen?

–.

•• Contact the Federal Trade CommissionContact the Federal Trade Commission•• OnOn--line: line: www.consumer.gov/idtheftwww.consumer.gov/idtheft•• Call: 1Call: 1--877877--ID THEFT (877ID THEFT (877--438438--4338) or TDD at 2024338) or TDD at 202--326326--25022502•• Write: Consumer Response Center, FTC, 600 Write: Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580Pennsylvania Avenue, N.W., Washington, DC 20580

•• Contact the Credit BureausContact the Credit Bureaus•• Contact the CreditorsContact the Creditors•• Call local law enforcementCall local law enforcement•• Keep a Journal Keep a Journal

Credit BureausCredit BureausEquifaxEquifax EquifaxEquifax Trans UnionTrans Union

AddressAddressP.O. Box 740241P.O. Box 740241

Atlanta, GAAtlanta, GA3037430374--02410241

P.O. Box 2104P.O. Box 2104Allen, TXAllen, TX

7501375013

760 Sproul Road760 Sproul RoadP.O. Box 390P.O. Box 390

Springfield, PA Springfield, PA 1906419064--03900390

Order Order Credit Credit ReportReport

11--800800--685685--11111111 11--888888--EXPERIAN EXPERIAN (397(397--3742)3742) 11--800800--916916--88008800

Report Report FraudFraud

11--800800--525525--62856285 11--888888--EXPERIANEXPERIAN 11--800800--680680--72897289

•• Postal Inspection ServicePostal Inspection Service•• www.usps.com/postalinspectorswww.usps.com/postalinspectors

•• Social Security AdministrationSocial Security Administration•• www.ssa.govwww.ssa.gov

•• Internal Revenue Service Internal Revenue Service •• www.irs.gov or 1www.irs.gov or 1--800800--829829--04330433

Contact other AgenciesContact other Agencies

Deter Detect DefendDeter Detect DefendPrevention:Prevention:

•• www.optoutprescreen.comwww.optoutprescreen.com 888888--55--optoutoptout•• Keep spyware & firewalls up to dateKeep spyware & firewalls up to date•• Never leave receiptsNever leave receipts•• Promptly remove your mail from your mailbox Promptly remove your mail from your mailbox •• Take outgoing mail to the post office or mail drop Take outgoing mail to the post office or mail drop •• Empty your wallet or purse of extra itemsEmpty your wallet or purse of extra items•• Memorize your social security # and all of your passwordsMemorize your social security # and all of your passwords•• DO NOT write down personal numbers or passwordsDO NOT write down personal numbers or passwords•• Never give out personal information if you did not initiate the Never give out personal information if you did not initiate the

call or transactioncall or transaction

Deter Detect DefendDeter Detect DefendPrevention (Continued)Prevention (Continued)•• Ask how information is used (Radioshack)Ask how information is used (Radioshack)•• Shred PreShred Pre--approved credit card offersapproved credit card offers•• Sign the back of all cards Sign the back of all cards •• Save all receipts and match them to your statementSave all receipts and match them to your statement•• Notify card companies and financial institutions in Notify card companies and financial institutions in

writing of changes in address or phone #writing of changes in address or phone #•• Never loan cards to anyoneNever loan cards to anyone•• Simplify your financial life and know what accounts Simplify your financial life and know what accounts

you have openyou have open

Deter Detect DefendDeter Detect DefendPrevention (Continued)Prevention (Continued)•• Report all lost or stolen cards immediatelyReport all lost or stolen cards immediately•• Closely monitor expiration datesClosely monitor expiration dates•• Use secure web sites: KEY or Padlock are closed.Use secure web sites: KEY or Padlock are closed.•• Use a separate card for web purchasesUse a separate card for web purchases•• Review your credit reports annuallyReview your credit reports annually•• Go on line regularly and visit your moneyGo on line regularly and visit your money

Credit Report Monitoring Service

Actions You Can Take

Fraud Alerts – issuers have to practice additional due diligence before issuing credit in your nameCredit Freezes – creditor can not access your credit report (State AG)Free Credit Reports – available every 12 months from each of the credit bureaus

Even I Got Ripped OffEven I Got Ripped Off

ChoicePointChoicePoint--released personal released personal information to identity thieves posing as information to identity thieves posing as insurance agents 162,000 files stoleninsurance agents 162,000 files stolenLexisNexis LexisNexis –– 300,000 consumer files300,000 consumer filesstolenstolenBank Of America Bank Of America –– ““MisplacedMisplaced”” backup backup tapes containing the records of 1.2 million tapes containing the records of 1.2 million federal employees, including Congress.federal employees, including Congress.

www.huecu.org