What’s the common thread?

2. What’s the common thread? • What do the following individuals all have in common? • Tiger Woods • Oprah Winfrey • Ted Danson • Steven Spielberg • Martha Stewart • Ross Perot • Michael Bloomberg • Warren Buffet

3. Surprised? • They have all been victims of identity theft. • It’s the “crime of the century”. • Victims come from all walks of life, all ages, races, genders, educational levels, financial backgrounds, locations. • It could happen to you or someone you love

4. How this program will help • Today, you will learn about: • What Identity Theft is • How widespread ID theft is • How ID fraud is committed and what its consequences are • Steps you can take to protect yourself • What to do if it happens to you • New protections under Federal Law

5. Understanding the crime • ID theft is a crime in which a person’s personal data is wrongfully used in a manner that involves fraud or deception. • Can also entail the wrongful use of an entity’s identity, such as a business. • It is usually, but not always, for financial gain. • No one is immune.

6. ID Theft is rampant. • Tens of millions of Americans have become victims within the last five years • 9.9 million became victims in one recent year alone! • Gartner Group estimates than one in every 50 consumers has been a victim of identity theft -- and it’s getting worse. • Has it happened to you or a loved one...yet?

7. ID Theft is rampant. • Every 60 seconds, at least another 18 or 19 individuals become ID fraud victims in the United States.

8. Even in your own house . . . • Within your own house or business your personal information may be stolen by: • felonious family members • sticky-fingered housekeepers • crooked bookkeepers • unsupervised repair workers • party guests • visiting “friends”

9. Other ID Theft Avenues • Theft of mail • Misuse of information by an employee of a business who has your personal data or someone who cons or bribes them into releasing it • Dumpster diving • Snooping on cordless • conversations

10. More ID Theft Avenues • Hacking • Stealing a purse or wallet • Hijacking your mail by submitting a change of address form • Conning you into releasing information based upon lies about who or what they are and the real purpose of their call

11. Recent ID Theft cases • Stealing identities of kids • One individual stole identities of schoolchildren and provided it to an income tax preparer who then “sold” it to clients who wanted to claim dependents. Another stole information on kids who were patients in the children’s hospital where he worked and used it for a similar scheme.

12. Recent ID Theft cases • Housekeeper “cleans up” • A Louisiana housekeeper was sentenced last year for illegally obtaining her employers’ personal information, then opening charge accounts with that information.

13. Recent ID Theft cases • Information stolen from insurance companies • Gang of individuals stole identity information from an insurance company’s records and obtained credit cards in those identities. • A temporary insurance company employee stole bank account information of customers who paid through auto-debits, then initiated charges to those customers’ bank accounts.

14. Recent ID Theft cases • Hacker steals info from Kinko’s customers • Juju Jiang installed special keylogging software on computer terminals located at Kinko's stores throughout Manhattan to surreptitiously record keystroking activity on those computers, and collect usernames and passwords of Kinko's customers. He then used the information to access bank accounts belonging to those persons, and fraudulently open on-line bank accounts.

15. Recent ID Theft cases • False identity used for over 20 years • After stealing identity documents, the thief assumed the victim’s identity. She got a driver’s license, filed for bankruptcy, and was arrested using the stolen identity. • Necrolarceny • A husband and wife team stole identities of many individuals who were deceased, then opened bank accounts and obtained credit cards.

16. Recent ID Theft cases • Stealing mail • Mail was stolen in North Carolina by a person who used personal information from the mail to produce fake IDs and counterfeit checks in order to clean out the victims’ accounts.

17. Recent ID Theft cases • The latest scam -- “Phishing” • Con artists send out emails that appear to be from a legitimate business or financial institution, citing some pretext to get the recipient to click a link to a phony customer service Web site and enter confidential information. • In some instances, the individual only has to click the link and a keystroke logging program is installed!

18. Bogus IDs • Fake IDs are easily obtained via mail order or the Internet

19. Altered IDs • Some states do not have strong security features on their IDs, making them easy to counterfeit or alter.

20. Consequences of ID Theft • Can affect victim’s reputation, credit rating, ability to qualify for credit or employment • Thief may clean out bank accounts with counterfeit checks, obtain credit, or use existing credit in the victim’s name • The ID thief may rent a dwelling, establish phone service or utilities in the victim’s name.

21. More Consequences of ID Theft • ID thieves have committed virtually every crime -- from speeding to murder • Victim’s time is needed to straighten out the mess -- sometimes as much as 500 hours!

22. Consequences of ID Theft • Emotional fall-out. Anger and depression are common among ID theft victims. • Some insurance companies are using credit scores to determine insurance premiums -- if there is ID fraud in your credit report, you could pay more • Terrorists and other criminals could go undetected -- Remember John List?

23. To protect yourself … • Be careful about the information you give out over the phone or on the Internet unless you are sure you know who you’re dealing with • Take a good hard look at what you’re carrying around in your wallet or purse. Leave your Social Security card – and anything that bears that number – in a secure place

24. To protect yourself • Make sure checks (used and unused), credit cards, bank records, and other personal information is carefully secured in your home or office, particularly if other people, whether workers or roommates, will be around.

25. To protect yourself • Guard your mail, your purse, your wallet • Secure your trash • Shred • If you don’t use pre-screened offers for credit, opt out of receiving them. Call 1-888-5-OPTOUT

26. To protect yourself • Be careful what you throw away. Statements from your doctor, checks on closed accounts, expired charge cards or IDs are treasures to thieves. • Carry only the identification information and the number of credit and debit cards that you'll actually need. • Talk to the financial institutions and brokerage firms where you have accounts about placing passwords on them.

27. To protect yourself • Choose passwords for online financial services wisely. Avoid anything easily guessed or learned via research.  • Ask about information security and data storage procedures of the companies you do business with. • Give your SSN only when absolutely necessary. • Keep up with your accounts. Check your banking, brokerage, and credit card statements immediately after receipt.

28. To protect yourself • Know your billing and statement cycles. If something is late, find out why.   • Cancel all unused credit accounts. • Be wary of promotional scams.   • Don’t have your SSN or DL# printed on your checks. • Make a photocopy of everything in your wallet or purse before you take out those things you don’t need to carry with you. Put the copy in a safe place. • Pick up new check orders at the bank.

29. To protect yourself • Obtain a copy of your credit report once a year and take action if there is information about transactions or accounts you did not initiate. • Consider signing up for a service that will monitor your credit report and any new credit accounts/inquiries for you and will notify you of changes.

30. Despite your best efforts … • You may still become a victim, because there are some risk factors outside your control. • If you do become a victim, you will want to take immediate and appropriate corrective action to: • close fraudulent accounts; • clear yourself of responsibility for any debts or other criminal activities perpetrated in your name; • Get your credit report corrected, and; • Work with authorities to identify and prosecute the perpetrator.

31. Steps to take • Place fraud alerts on your credit reports with the three credit reporting agencies • Make a police report and complete an Identity Theft Affidavit • File an identity theft report with the Federal Trade Commission or appropriate state, federal, or local law enforcement agency • Directly contact entities who opened accounts in your name at the thief’s behest • Keep records of actions you take, including the time you devote.

32. Steps to take - 2 • Create a contact list of those you speak to. • Continue to monitor your credit report on a frequent basis. • If an account (deposit or credit) has been tampered with, close it and open a new one. • Sample dispute letters, forms, and a Chart of action can all be found on the FTC’s Web site at www.ftc.gov/idtheft • Follow up. • Keep monitoring your credit report and accounts.

33. Steps to take • Create a contact list of those you speak to. • Continue to monitor your credit report on a frequent basis. • If an account (deposit or credit) has been tampered with, close it and open a new one. • Sample dispute letters, forms, and a Chart of action can all be found on the FTC’s Web site at www.ftc.gov/idtheft • Follow up. • Keep monitoring your credit report and accounts.

34. New protections enacted! • The FACT Act (Fair and Accurate Credit Transactions Act) was signed into law by President Bush in late 2003 • It increases the protections for consumers with respect to identity theft • Some of its provisions were phased in and some are still not in effect yet

35. Under the FACT Act • A victim of identity theft now has a right to request copies of any application and/or transaction record relating to an account opened with their identifying information • Customers will have a right to a free copy of their credit report once every twelve months, upon request • Central source for making request • Go to www.annualcreditreport.com to order your free copies

36. Under the FACT Act • Those who place an initial fraud alert are entitled to an additional free credit report • Persons who place an extended fraud alert in their file can obtain two free credit reports within a twelve month period after the fraud alert has been placed • When a fraud alert is placed, you will get an explanation of your rights relating to free reports

37. Under the FACT Act • There is a new document explaining a consumer’s rights called “Summary of Rights of ID Theft Victims” that must be given in certain circumstances and may be obtained upon request from the FTC, • There is a new “one call” system – notify one national credit reporting agency of actual or possible ID theft and they have to notify the others • There are 3 types of possible fraud alerts: • Initial (suspicion of fraud) • Extended (actual ID theft has been reported) • Active Duty Military Alert

38. Under the FACT Act • If an initial fraud alert is placed, it must be furnished to users of credit reports and an individual has a right to a free copy of their credit report • The alert remains in the file (and must be provided with credit score) for no less than 90 days • If the person requests the free copy of their report, they are also to be given a Summary of Rights of ID Theft Victims within 3 business days

39. Under the FACT Act - 3 • If the individual is actually a victim of ID theft, has filed a report, and requests an extended fraud alert, they are entitled to TWO free copies of their credit report within the 12 month period after the alert request is made • Active duty military and individuals who have requested an extended fraud alert are also removed from “prescreened lists” for a period of time • Extended fraud alerts remain in the file for a 7 year period

40. Under the FACT Act - 4 • If there is a fraud or active duty military alert in the file, creditors cannot make new loans or open many kinds of new credit accounts for the individual unless they take reasonable steps to ensure the person requesting the credit or account is who they say they are. • On an extended fraud alert, the individual can specify a particular phone number or other means of contact and that number or method must be used before a creditor can act on an application for credit that is supposedly from that individual

41. Under the FACT Act • The new law helps ID theft victims deal with the aftermath by: • providing solid procedures and timelines for disputing inaccurate information reported to a credit reporting agency; • Requiring credit reporting agencies to block information about accounts or transactions that are a result of identity theft • Making it easier (and cheaper) for an individual to monitor his own credit history • The Summary of Rights will explain how to use these rights.

42. You’re ready to fight! • You’re now armed with information about how to protect yourself against identity theft. • It’s time to take action. Follow the steps outlined today. • Educate your family members, co-workers, friends about Identity Theft and what they can do about it. • Learn more about ID theft in articles, Q&As and resources on BankingQuestions.com

43. Questions? • I’ve prepared a short list of resources to provide contact names and numbers, Web sites, sample forms, letters and more! • More questions? You’ll find plenty of articles and resources on bankersonline.com