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Learn about identity theft, current statistics, top cities affected, types of information targeted by criminals, common methods of theft, recovery process, case studies, and prevention tips.
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Current Statistics • Between January and December 2006, the Federal Trade Commission received more than 670,000 consumer fraud and identity theft complaints • US consumers reported losses totaling more than $1.1 billion
Utah Victims • Top 5 cities for identity theft in 2005 were: • Salt Lake City • Ogden • West Jordan • West Valley • Sandy
Understanding Identity Theft What is it? Criminals gain access to personal information They run up large balances Victims are often unaware
What Types of Information Do Crooks Want? • Name • Address • Telephone number • Driver’s license number • Social Security number • Place of employment • Mother’s maiden name • PIN numbers • Birth date
Understanding Identity Theft • How does it happen? • Offline • Research shows: • 63% of information breaches could have been prevented • 30% are lost of stolen wallets, credit/debit cards or checkbooks • 15% from friends, family, in-home employees and neighbors • 9% stolen from mail or garbage • 9% from home computers
Understanding Identity Theft • How long does it take to recover? • 330 hours • Who are the victims? • 18-29 year-olds • Senior citizens
Understanding Identity Theft • How do banks and credit card companies protect me? • Banks use safeguards • Flag accounts • Customers are protected from loss
Case Study #1 An athlete-sportscaster had her identity stolen while she was out of the country. Thieves took her mail while she was away and attempted to open 17 accounts. They succeeded in spending $15,000 before the theft was detected. She is still trying to repair the damage to her credit report. What could this sportscaster have done to prevent thieves from stealing her identity?
Case Study #2 A 21-year old waitress in a small town became an identity theft victim when the thieves stole her renewed driver’s license out of her mailbox. She realized it when she received a credit card in the mail for which she had not applied. The thief was able to use the stolen identification to open several credit card accounts and is still at large. What could this waitress have done to ensure she received her driver’s license safely?
Case Study #3 A university student’s wallet was stolen, but he didn’t think the thieves wanted more than the cash so he did not report the theft to police right away. Within hours, the thieves had emptied his checking account using his debit card and charged $10,000 worth of purchases on his existing credit cards. They also started the process to open new credit accounts in his name. However, it took months for him to learn the full extent of the theft. Card issuers started sending notices and calling, looking for payment on credit cards he knew nothing about. More than six months after the incident, the student is still trying to straighten out his credit. He cannot request a loan or open a credit card account because of the damage to his credit report. What could this university student have done to prevent the thieves from causing this much damage to his credit history?
Case Study #4 Dozens of online financial scams have been reported. In one, criminals create a Web site that looks legitimate. It may even appear to be a reputable site you have visited before. Then, posing as reputable companies, they send emails asking people to confirm personal and financial information by clicking on a link within the email that takes the reader directly to their phony site.
Case Study #4 cont. One notable instance of this scam involved criminals posing as the online auction giant, eBay. They sent emails stating, “Your purchase of one Pentium 5 computer for $1,500 plus shipping and handling is being processed. If you believe this notice is incorrect or if you wish to cancel this order, please click on the link below and fill out the required information to stop the order.” The “required information” being requested turned out to be a Social Security number, credit card number and other financial data. What can you do to ensure that an email request for information you receive is legitimate?
Case Study #5 A college senior uses her debit card for pizza purchases on weekends, and enjoys going to the local coffeehouse every few weeks when they have live music. Mostly, she keeps her debit card in her desk when she’s not using it along with a jumble of receipts. She lives in a large group house and doesn’t know all her roommates very well. Still, since they live together, she feels relaxed in their company. One day when she tries to pay for her pizza at a restaurant, her card is declined for insufficient funds, even though her parents just transferred money into her account. She discovers someone has used her card and drained her account. What could have happened to this student? How could she have prevented her card from being taken and used?
Prevention • Don’t give personal information • Tear up receipts • Watch for missing mail • Don’t mail bills from your mailbox • Review accounts regularly • Order credit report • Do business with companies you know • Padlock your browser • Don’t open email from unknown sources • Protect your PINs • Report fraud
10 Tips to Prevent ID Theft • Memorize your PIN. Don’t carry your PIN with your credit/debit/ATM cards • Do not give out personal or financial information over the phone unless you initiated the call. Even if the caller claims to be from your bank • Report lost or stolen check immediately to the bank • Properly store new checks in a safe place. Destroy check images or cancelled checks • Tear or shred financial solicitations or statements when disposing of them
10 Tips…Continued • If bills have suspicious items, do not ignore them. Call the credit company immediately to head off potential fraud • Request a credit report and check for unfamiliar accounts • Be very cautious of “get rich quick” schemes. If it sounds too good to be true, it probably is! • Do not print your Social Security number on your checks • Contact your bank immediately if you suspect fraud on any account
Check Cards: Debit vs Credit • Using your check card as debit, you are using your PIN number • PIN debit fraud grew 163% in 2005 alone • When you sign for your purchase using your debit card, you receive Visa’s Zero Liability Policy • This policy automatically protects you 100% from unauthorized use of your card • You only receive the protection of Zero Liability when you use your debit card as credit