identity theft epidemic how we can protect ourselves

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IDENTITY THEFT EPIDEMIC How We Can Protect Ourselves

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IDENTITY THEFT EPIDEMIC

How We Can 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.

Identity TheftWhat is identity theft?How and why is it done.Preventive actions. Internet and on-line

services.Credit Bureaus (who to

contact).Promotional lists.Steps for victims.

What is Identity Theft?

Acquiring key pieces of someone’s identifying information in order to impersonate them.- Name- Address- Date of Birth- Social Security Number- Mother’s Maiden Name

Other Examples of Identity Theft 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.

Other Example of Identity Theft (cont.)

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.

What Thieves Do With Your Personal Information

• Contact your creditors, gain access to your accounts, change mailing addresses and begin using the account.

• Open new credit or bank accounts, obtain loans and establish phone and utility service fraudulently using your name, Social Security number and birth date.

• 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.• Use insurance information to obtain medical procedures.• Buy cars or houses taking out loans in your name.• Sell business information to competitors.

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.

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 12.1Unspecified 5.4

Phone or Utilities Fraud: 22%Theft Subtypes Percent of All VictimsWireless – New 10.5%Telephone – New 5.2Utilities – New 3.0Unauthorized Charges to

existing Accounts 0.7Unspecified 2.2

Bank Fraud: 17%Theft Subtypes Percent of All VictimsExisting Accounts 8.1%New Accounts 3.7Electronic Fund Transfer 3.1Unspecified 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 1.9Social Security Card Issued/Forged 1.7Gov’t Benefits Applied/Rec’d 0.8Other Gov’t Docs Issued/Forged 0.3Unspecified 0.1

Loan Fraud: 6%Theft Subtypes Percent of All VictimsPersonal/Business Loan 2.6%Auto Loan/Lease 2.1Real Estate Loan 0.9Unspecified 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.

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.

Preventive ActionsPromptly 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.

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’sDon’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.

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.

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.

Internet and On-Line ServicesUse 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.

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

Action Steps for VictimsContact 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.

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-

800-269-0271Contact 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.

Your Assignment : Create a comic strip

• Must have at least 6 panels

• Must include tips for preventing identity theft

• Must include steps for what to do if you are a victim of identity theft.

It was a typical day in Suburbia, until…

Disaster! he ID villain had struck again!

In flew ID Protection Man to save the day!I know Exactly What To

Do: