identity theft epidemic how can we protect ourselves

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IDENTITY THEFT EPIDEMIC How can we protect ourselves

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Page 1: IDENTITY THEFT EPIDEMIC How can we protect ourselves

IDENTITY THEFT EPIDEMIC

How can we protect ourselves

Page 2: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Identity theft is the fastestgrowing crime in the World

It is the #1 threat to consumers.

HINT: This is NOT the answer to #1

Page 3: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Number of Reported Identity Thefts, 2000 to 2006.

                                                                                                                                       

Page 4: IDENTITY THEFT EPIDEMIC How can we protect ourselves

We will cover the following topics:

What is identity theft? What information thieves need. Why it is it done. Types of fraud. How it is done. Preventive actions. Internet and on-line services. Credit Bureaus (who to contact). Steps for victims.

Page 5: IDENTITY THEFT EPIDEMIC How can we protect ourselves

What is Identity Theft?

Acquiring key pieces of someone’s identifying information in order to impersonate them.

Page 6: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Information the identity thief needs:

Social Security Number

Home address

Date of Birth

Phone Numbers

Drivers License Number

Pin #’s

Bank

Account

Numbers

Mother’s maiden name

Page 7: IDENTITY THEFT EPIDEMIC How can we protect ourselves

What thieves do with your personal information

Obtain cash with bank cards Get jobs Rent an apartment Make retail purchases Get a phone or other utilities Give your name during an arrest Use insurance information to obtain medical

procedures. Buy cars or houses taking out loans in your name. Sell business information to competitors. Apply for credit card or store credit accounts

Page 8: IDENTITY THEFT EPIDEMIC How can we protect ourselves

and… Contact your creditors, gain access to your accounts,

change mailing addresses and begin using the account.

Open new credit or bank accounts and obtain loans File bankruptcy under your name to avoid paying

debts they falsely incurred or to avoid eviction. Counterfeit checks or debit cards and drain your bank

account. File fraudulent tax returns. Obtain driver’s licenses and other fake

identification documents.

Page 9: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Types of Fraud

FTC ID Theft Clearing House February 2007 correlated with internal NIDR Identity Theft Recovery statistics

Page 10: IDENTITY THEFT EPIDEMIC How can we protect ourselves

How Victims’ Information is Misused

Page 11: IDENTITY THEFT EPIDEMIC How can we protect ourselves

How do they get your information?

Purse snatching. Mail Theft. Change of Address. Thieves divert your mail to another

location. Dumpster diving. Thieves rummage through residential or

business trash, looking for personal information. Masquerading. Thieves fraudulently pose as your

employer, landlord or someone else with a legitimate need for your personal information.

Stealing work records. Home theft.

Page 12: IDENTITY THEFT EPIDEMIC How can we protect ourselves

They often target your mail…

Steal incoming and outgoing mail delivery.Break into mail boxes, sometimes taking the entire unit.Drive through residential areas looking for mail boxes with flags raised.Pose as delivery persons of flyers just to get to boxes on houses.Occurs during late evening or early morning, when dark.Put mail in backpacks or garbage bags.Ride off on bikes.

Page 13: IDENTITY THEFT EPIDEMIC How can we protect ourselves

or any other method they can use.

Internet theft. Thieves obtain personal information from unsecured Web sites that you may have visited.

Insider crime. People who have access to personal identifying information steal it to use themselves or to sell to thieves.

Pretexting. Thieves pretend to be you or a legitimate requestor and persuade business employees to provide them with personal info.

Corporate espionage. Thieves steal business secrets such as new product plans or bidding strategy.

Page 14: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Eighteen to twenty-nine year-olds are particularly at risk because they are less likely to check their credit and are more likely to apply for credit cards without reading the fine print or considering the source.

Page 15: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Theft Triangle – Like a three legged stool

NEED - Motivation

ABILITY - Tools OPPORTUNITY

Page 16: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Opportunity

This is the only leg of the triangle or stool that we can control.

If we can take away or limit the opportunity for theft, then we are ahead of the game.

So how do we get rid of the opportunity?

Page 17: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Preventive Actions

Promptly remove mail from your mailbox. Have checks mailed to your bank – not your home

address. Deposit outgoing mail in post office collection boxes

or at your local post office.

- Do not leave mail in an unsecured mail box.

NEVER give personal information over the telephone unless YOU initiated the call.

NEVER give personal information over the internet unless YOU initiate the transaction.

Page 18: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Preventive Actions (cont.)

Purchase a crosscut-type shredder and use it. Shred pre-approved credit card applications,

credit card receipts, bills and other financial information you don’t need.

Empty your wallet/purse of extra credit cards and Id’s Don’t carry your birth certificate, social security

number, or passport unless necessary. Order your credit report from the three credit bureaus

once or twice a year to check for discrepancies. NEVER leave receipts at bank machines, bank

windows, or unattended gasoline pumps.

Page 19: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Preventive Actions (cont.)

Ask all financial institutions, doctors’ offices, etc., what they do with your private information and make sure they shred it and protect your information.

Memorize your SSN and all your passwords. Make up fictitious passwords, don’t use names. Sign all new credit cards upon receipt. Save all credit card receipts and match them against

your monthly bills. Be conscious of normal billing statement cycles.

- Contact sender if they are not received on time.

Page 20: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Preventive Actions (cont.)

Notify credit card companies or financial institutions in advance of any changes in address or phone #.

If you applied for a new credit card and it hasn’t arrived in a timely manner, call the issuing bank or credit card company.

Report lost or stolen credit cards immediately. Know your expiration dates.

- Contact issuer if replacements are not received promptly.

Make a list of all credit card numbers, financial account numbers and contacts, keep in a safe place.

Page 21: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Internet and On-Line Services

Use caution when disclosing account numbers, credit card numbers, or other personal data at any web site or on-line service location unless you receive a secured authentication key from your provider.

NEVER give any password out when asked with the exception of “logon” screen.

When you subscribe to an on-line service, you may be asked to give credit card information.- When you enter an interactive service site, beware of con artists who may ask you to “confirm” your enrollment service by disclosing passwords or the credit card account number you used to subscribe.

Page 22: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Credit Bureaus

Equifax- To order your report, 800-685-1111

- To report fraud, 800-525-6285

Experian- To order your report, 888-397-3742

- To report fraud, 888-680-7289

Transunion- To order your report, 800-888-4213

- To report fraud, 800-680-7289

Page 23: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Action Steps for Victims

Contact all creditors, by phone and in writing to inform them of the problem.

Call each one of the credit bureaus’ fraud units to report identify theft.- Ask to have a “fraud alert/victim impact” statement placed in your credit file asking that creditors call you before opening any new accounts.

Call social security administration & place a fraud alert on your name.

Alert your financial institution to flag your accounts and to contact you to confirm unusual activity.

Request a change of PIN and new password.

Page 24: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Action Steps for Victims (cont.)

Keep a log of all contacts and make copies of all documents.

Contact the social security administration’s fraud hotline: 1-800-269-0271

Contact the state office of the department of motor vehicles to see if another license was issued in your name.- If so, request a new license number and fill out the DMV’s complaint form to begin the fraud investigation process.

Page 25: IDENTITY THEFT EPIDEMIC How can we protect ourselves

HOMEWORK

For homework go to the following website and play three of the games (the link is on my website).

Pick the games you are most interested in. When you get to pages with you score:

print each one staple them together write your name on the front page hand it in for your homework score.

http://www.onguardonline.gov/games/overview.aspx

Page 26: IDENTITY THEFT EPIDEMIC How can we protect ourselves

THE END

Page 27: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Sentinel Top Complaint Categories1

January 1 – December 31, 2002

Others11%

Internet Auctions13%

Identitiy Theft43%

Telephone Services2%

Business Opps3%

Health Care2%

Magazines2%

Shop-at-Home Sales5%

Advance-Fee Loans 5%

Internet Services6%

Foreign Money Offers4%

Prizes/Sweepstakes4%

1Percentages are based on the total number of Consumer Sentinel complaints (380,103) received betweenJanuary 1 and December 31, 2002.

Page 28: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Total Identity Theft Records1

by Calendar Year

13,677

31,117 31,011

86,198

56,895

161,819

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

CY 2000 CY 2001 CY 2002

Request for Information

Complaints

1Percentages are based on the total number of identity theft records by calendar year.

Page 29: IDENTITY THEFT EPIDEMIC How can we protect ourselves

Identity Theft Complaints by Victim Age1

January 1 – December 31, 2003

2%

26%27%

22%

13%11%

0%

5%

10%

15%

20%

25%

30%

Under18

18-29 30-39 40-49 50-59 60 andOver

36% of Victims

Notified a Police

Department and a Report

was Taken

9% of Victims Notified a

Police Department and a Report

was Not Taken

2% of Victims Notified a

Police Department and Did Not Indicate if a Report was

Taken

53% of Victims Did Not Notify Any Police

Department

1Percentages are based on 130,917 victims who provided their age. ThisChart represents 94% of the victims who contacted the FTC directly.

Law Enforcement Contact2

January 1 – December 31, 2003

2Percentages are based on the 131,746 victims who indicated whether they had notified a police department.

Page 30: IDENTITY THEFT EPIDEMIC How can we protect ourselves

How Victims’ Information is Misused1

Total Number of Identity Theft Victims = 161,819January 1 – December 31, 2002

Credit Card Fraud: 42%

Theft Subtypes Percent of All VictimsNew Accounts 24.4%

Existing Accounts 12.1

Unspecified 5.4

Phone or Utilities Fraud: 22%

Theft Subtypes Percent of All VictimsWireless – New 10.5%

Telephone – New 5.2

Utilities – New 3.0

Unauthorized Charges to

existing Accounts 0.7

Unspecified 2.2

Bank Fraud: 17%

Theft Subtypes Percent of All VictimsExisting Accounts 8.1%

New Accounts 3.7

Electronic Fund Transfer 3.1

Unspecified 2.0

Employment-Related Fraud: 9%

Theft Subtypes Percent of All VictimsEmployment-Related Fraud 9.3%

Government Documents or Benefits Fraud: 8%

Theft Subtypes Percent of All VictimsDriver’s License Issued/Forged 3.0%

Fraudulent Tax Return 1.9

Social Security Card Issued/Forged 1.7

Gov’t Benefits Applied/Rec’d 0.8

Other Gov’t Docs Issued/Forged 0.3

Unspecified 0.1

Loan Fraud: 6%

Theft Subtypes Percent of All VictimsPersonal/Business Loan 2.6%

Auto Loan/Lease 2.1

Real Estate Loan 0.9

Unspecified 0.5

Attempted Identity Theft: 8%

1Percentages are based on the 161,819 total victims reporting. Percentages add to more than 100 because approximately 22% of victimsReported experiencing more than one type of identity theft. All victims reported experiencing at least one type of identity theft.