Protecting Families, Finances, and Your FutureProtecting Families, Finances, and Your Future

The Federal Trade Commission reports that identity theft

has been the NUMBER ONE

consumer complaint for ELEVEN

consecutive years!

Identity Theft FactsIdentity Theft Facts

• Over 512 million Americans’ Identities have been reported lost or stolen since January 2005. www.privacyrights.org

• Over 400,000 dead people opened bank accounts last year.

• The revenue from trafficking financial data has surpassed that of drug trafficking. – US Secret Service

• Over 3.5 million children have already fallen victim to identity theft in the US.

Identity Theft FactsIdentity Theft Facts

• “Identity Theft is poised to increase by a factor of 20 over the next two years. The criminals are still trying to figure out what to do with all the data.”

• There are currently over 31,000 NEW identity theft victims EVERY DAY! 1 in every 3 seconds!

• You are THREE times more likely to have your identity stolen than you are to have your house or car broken into.

Identity Theft FactsIdentity Theft Facts

• The average dollar amount charged in Identity Theft: $96,800

• The average time taken by a victim to restore their identity is 600 hours.

• Most identity theft issues are non-credit related.

Identity Theft FactsIdentity Theft Facts

Unexpected Secondary Effects:•Denied Credit

•Higher Insurance Rates

•Credit Card Rate Increases

•Battling Collection Agencies

•Ability To Get A Job

•Criminal Record

Identity Theft EffectsIdentity Theft Effects

Identity Theft EffectsIdentity Theft Effects

We have found that identity theft can lead to many legal issues including:

• Criminal Charges

• Arrests

• Lawsuits

• Garnishments

• Civil Litigations

• IRS Audits

Discovery:•85% of victims were unaware of theft until they needed to verify their identity.

•Moment of discovery typically occurs in one of three ways:

• A critical point in their lives – buying a home, car or applying for a job

• Via a negative notification – denial of credit, employment or law enforcement notification.

• Pro-Active efforts from business or individual consumer.

Identity Theft DiscoveryIdentity Theft Discovery

Identity Theft ImpactIdentity Theft Impact

Identity Theft impacts

On Small Business

• Does it start with your employees?

• How do you handle records?

• 32% of data Breaches are a result of Human Error

Data Breaches

Identity Theft ImpactIdentity Theft Impact

For the fifth year in a row, data breach costs have For the fifth year in a row, data breach costs have continued to risecontinued to rise• The average organizational cost of a data breach The average organizational cost of a data breach

this year is 7% from last year! this year is 7% from last year! • Total breach costs an average of Total breach costs an average of $314 $314 per per

compromised record. (RED FLAGS RULES)compromised record. (RED FLAGS RULES)• 1 in 4 data breach notification recipient became a 1 in 4 data breach notification recipient became a

victim.victim.

Are the Businesses You Frequent or Work for Are the Businesses You Frequent or Work for Exposing You to an Identity Thief? Exposing You to an Identity Thief?

Data Breaches

Identity Theft ImpactIdentity Theft Impact

Who are Identity ThievesWho are Identity Thieves

Protecting Families, Finances, and Your Protecting Families, Finances, and Your FutureFuture

Who are Identity Thieves?Who are Identity Thieves?

Organize crimeOrganize crime

GangsGangs

Employees (Business and Government)Employees (Business and Government)

Family Member or FriendsFamily Member or Friends

And thieves of course.And thieves of course.

Drivers License

Medical FinancialEmploymentSSA & IRS

Character & Criminal

MinorChildren

Types of Identity TheftTypes of Identity Theft

Types of Identity TheftTypes of Identity Theft

Drivers License

Medical FinancialEmploymentSSA & IRS

Character & Criminal

MinorChildren

Types of Identity TheftTypes of Identity Theft

Types of Identity TheftTypes of Identity Theft

Drivers License

Medical FinancialEmploymentSSA & IRS

Character & Criminal

MinorChildren

Types of Identity TheftTypes of Identity Theft

Types of Identity TheftTypes of Identity Theft

Drivers License

Medical FinancialEmploymentSSA & IRS

Character & Criminal

MinorChildren

Types of Identity TheftTypes of Identity Theft

• Credit card fraud accounts for less than 17% of identity theft.

• A thief can destroy your good credit in a matter of hours.

• Financial and media groups have done a great job telling people that identity theft is mostly “credit monitoring.”

Types of Identity TheftTypes of Identity Theft

Drivers License

Medical FinancialEmploymentSSA & IRS

Character & Criminal

MinorChildren

Types of Identity TheftTypes of Identity Theft

Types of Identity TheftTypes of Identity Theft

“I owe $16,000 on my credit cards, my

condo’s in foreclosure and I turn seven on

Friday.”

Types of Identity TheftTypes of Identity Theft

• Over 3.5 million children have already been Over 3.5 million children have already been victims of Identity Theft. Of course, this is the victims of Identity Theft. Of course, this is the number of discovered cases; the actual number number of discovered cases; the actual number may be much higher.may be much higher.

• Unfortunately many cases of Child Identity Theft are not linked to credit. Criminals are using children's identities to commit crimes, apply for Social Security benefits, obtain a driver’s license, and even get medical treatment.

Stealing

RFID

Data Breaches

Methods of Identity TheftMethods of Identity Theft

Conclusion:

Our Current Privilege

Authorization Systems

Are

BROKEN

Identity TheftIdentity Theft

Protecting Families, Finances, and Your Protecting Families, Finances, and Your FutureFuture

Identity Theft Protection TipsIdentity Theft Protection Tips

1. Review a current copy of your credit report.

2. Make sure you shred “junk mail” and unwanted credit card offers!

3. Opt out when you receive Privacy Statements – You must write them to stop companies from sharing your information.

4. Do not carry your Social Security Card – Keep it safe at home.

5. Do not carry extra credit cards.

6. Copy the contents of your wallet and store in a secure place.

Identity Theft Protection TipsIdentity Theft Protection Tips

7. Do not mail bill payments and checks from home. Use locked mailboxes.

8. Do not print your Social Security number or drivers license number on your checks.

9. Order your Social Security Earnings and Benefits statement and check it for accuracy.

10.Examine charges on your credit card statements each month.

11.Never give your credit card number or personal information over the phone unless you initiated the call.

12.Invest in an identity theft protection plan that provides restoration services.

TMTM

• Unfortunately Child Identity Theft is impossible to prevent. Children should not have a credit report, and fraud alerts can not be placed on a report that does not exist.

• Parents/Legal Guardians can contact the three credit bureaus and request a credit report. If the response from the credit bureau is “A report does not exist”, then the child does not have a credit file.

• All correspondence must be sent certified/return receipt requested to prove you sent the information.

Experian PO Box 9532Allen, TX 75013

Be sure to include:• A copy of the child’s birth certificate listing the parent as a parent, or

documentation showing legal guardianship

• A copy of the child's Social Security card

• A Cover Letter including the full name of the child, the child’s date of birth, previous addresses for the last five years, and the parent’s name and address

• A copy of the parent’s own ID card, such as driver’s license or state/military issued photo id card.

• Request the child’s credit report by SSN. Remember thieves may use a different name.

TransunionPO Box 6790Fullerton, CA 92834

EquifaxOffice of Consumer Office of Consumer AffairsAffairsP.O. Box 105139P.O. Box 105139Atlanta, GA 30348 Atlanta, GA 30348

It Takes about

60 secondsto find out

that you are a victim of

identity theft

= PANIC

Do it Your Self Plan It is an average of

600 hours

= 40hrs x 3.75 months

to restore a person’s identity

Identity Theft PlansIdentity Theft Plans

Identity Theft PlansIdentity Theft Plans

• SSN Statement

• MIB Group -

Medical

• Drivers Record

Report

• Court Records

• Credit Reports

Identity Theft PlansIdentity Theft Plans

• Monitoring Plans

• Reimbursement

Plans

• Fraud Alert

Services

• Restoration Plans

Identity Theft PlansIdentity Theft Plans

• NO PLAN CAN PREVENT ID THEFT. FLAG-FLAG-FLAG

• Monitoring plans are that! Monitors - Smoke Alarm

• Some provide for all three Credit Bureaus (Equifax, Experian and

TransUnion)

• Most only covers financial and not other areas of ID theft

• Black Market Surveillance/scanning – monitor known criminal websites –

REALLY!!

• Reimbursements/1 Million Insurance Plans- not restoration

• Must follow explicit instructions to receive – Still have to do the leg

work

• Restoration Plans

COMPARINGCOMPARING IDID

PLANSPLANS

Identity Theft PlansIdentity Theft Plans

Restoration Services:

• Some restoration sites indicate “ Professional assistance,

advocate or specialists”

• Meaning Step-by-step instruction

• Not Licensed Investigators

• Not all offer limited power of attorney

COMPARINGCOMPARING IDID

PLANSPLANS

Identity Theft BlogsIdentity Theft Blogs

• ITAC

• FTC

• IRS

• robtaylorhrm.wordpress.com“Do you Know Where Your Identity Is Today!”

• robtaylorid.blogspot.com

Protecting Families, Finances, and Your FutureProtecting Families, Finances, and Your Future