IDENTITY THEFT

2. IDENTITY THEFT Tom Behn Willie Johnson Mike Kellen

3. Who is the easiest target? • YOU! • Teenagers and young adults • Most vulnerable due to lack of established credit • Less likely to check credit records • Many do not find out until well after theft has occurred

4. Identity Theft • Definition • History • Types • Government Action • Statistics • Prevention and Recovery

5. What is Identity Theft? • Identity theft occurs when someone else uses your personal information to assume your identity. • Can be used to commit fraud or other crimes • Examples: • Your name • Social Security number • Credit card number • http://www.youtube.com/watch?v=kn_kJADfKng&feature=related

6. History of Identity Theft

7. History • Early History • I.D. Theft as been around for as long as there has been identities to steal. • The old, common practice was to kill a person and just assume their name.

8. History • Modern History • Phone Scams • Dumpster Diving • Fraudulent websites

9. Types of Identity Theft

10. Types • Character • Someone can commit a crime in your name • Social Security Number • Someone uses your number to gain a job • You pay their income taxes • Medical • Someone gaining medical insurance in your name. False information could leave you helpless.

11. Types • Driver’s License • Someone commits traffic violations in your name. • When they fail to appear in court, warrants are issued for you. • Credit • Someone uses your credit to obtain loans or goods, and leaves you with the bill.

12. How are they getting your information? • Dumpster Diving • Not actually a Crime • Phone Scams • Phishing

13. Sources of Identity Theft

14. Bank Statement 1 2 3

15. Credit or Debit Card(Front) 1 2 3

16. Credit or Debit Card(Back) This will vary depending on issuer of Credit or Debit card

17. Personal Checks 1 2

18. Driver’s License 1 2 3

19. Social Security Card

20. How secure is your computer? • Phishing • Using Phony websites and installing spyware to track your every move. • Be careful where you enter your information!

21. Government Action on Identity Theft

22. Previous Legislation • Identity Theft Victims Assistance Act of 2002 • Nation Wide Process for victims to obtain records to facilitate correction of records, and catch thieves. • Expanded the Role of the Federal Coordinating Committee • Expanded the Statute of Limitations for the Fair Credit Reporting Act to five years, up from two. • Required agencies to block reporting of bad credit.

23. Previous Legislation • Identity Theft Prevention Act of 2001 • Increased the penalties for anyone who commits: • “Aggravated Identity Theft” • Purpose of a terrorist act or serious federal offence • Including: Immigration violations and false citizenships • Made Identity Theft easier to prove • Increased term of imprisonment for ordinary Identity Theft

24. Statistics of Identity Theft

25. Breakdown of Types of ID Theft

26. Age Group for Identity Theft

27. Monetary Losses • $221 billion a year are lost worldwide • Victims lose an average of $1,800 to $14,000 in wages when dealing with ID theft • Victims spend an average of $850 to $1400 in expenses recovering

28. Uses of Stolen Information • 33% of victims report fraud to checking account • 66% report a new credit card account has been opened in their name • 28% report a new cell phone account has been activated • 12% report having warrants issued in their name for crimes they did not commit

29. Prevention and Recovery of Identity Theft

30. 3 “D’s” of Identity Theft • DETER • Prevent thieves from accessing your personal information • DETECT • Discover fraud occurring before serious damage is done • DEFEND • Fix the accounts and information thieves have stolen

31. Deter/Prevention • Personal Information • Finances • Physical Documents • Internet

32. Deter/Prevention • Personal Information • “Need to know” approach • Ask Why and Who • Limited personal information that is “out there” • www.optoutprescreen.com • www.donotcall.gov

33. Deter/Prevention • Finances • Less information on personal checks • Convert bill paying to automatic deductions online • Use Cash • If using “plastic,” use Credit Card. Debit Cards are tied into checking accounts

34. Deter/Prevention • Physical Documents • Shred all documents with personal information • Have photocopies of all your important cards and documents • United States Postal Service • Use the post office to mail bills and important documents • P.O. Boxes are securest mailboxes.

35. Deter/Prevention • Internet • Know your friends AND enemies • Facebook, MySpace, Dating Sights • 43% of victims know who stolen their identity • Do not make passwords and PIN numbers obvious • Do NOT use birthdays, anniversaries, social security number, etc

36. Passwords • 73% use bank passwords EVERYWHERE • 65% use a bank user ID on another website • Have three “families” of passwords • Financial sites (banks, stock market) • Personal Information (email, FAFSA, Facebook) • Generic log-ins (game sites, website memberships) • Carefully consider on-line shopping sites when selecting passwords. They store credit card information • Use AT LEAST 8 characters • Random Capitalization

37. Detect/Monitor • Know when bills and statements usually come • Review thoroughly • Request your free credit reports yearly • Equifax, Experian and Trans Union • One every 4 months • Social Security number is not monitored on your credit reports

38. Detect/Monitor • When encountering “pop-ups” from websites, if they ask you to verify your personal information, do NOT fill out the form • Most well-known affiliates will ask for this information BEFORE the transaction is completed • YOU can do the best job monitoring your ID, not insurance companies • i.e. Lifelock

39. Defend/Recovery • File a police report • Some credit agency require a hard copy • Prevents payment resulting from fraudulent charges • Copy needed to file an “extended fraud alert” on credit report • Close all tampered or new accounts opened • For credit cards, notify in writing. Collection agencies need written proof

40. Defend/Recovery • Notify the credit reporting agencies • “Extended fraud alert” • Monitors you credit reports • Agencies call when new accounts are opened without your approval • “Security Freeze” • File a complaint with the FTC • List of previous offenders • Know companies that may have history of fraud

41. Recovery Numbers • Time to Recover • 3 hours to 240+ days • Average is about 2 weeks • This is spent over a span of 4 months to 1 year

42. Are You at Risk for Identity Theft? Test Your “Identity Quotient” • I receive pre-approved credit cards, etc every week (5) • I do NOT shred the pre-approved offers (5) • I carry my Social Security card with me (10) • I use a computer and do NOT have update anti-virus, anti-spyware and firewall protection (must have all 3) (10) • I do NOT ALWAYS lock my house/apartment/room (10) • I have NOT ordered a copy of my credit report in the last 2 years (20) • I use my personal mailbox to send letters (10)

43. Are You at Risk for Identity Theft? Test Your “Identity Quotient” • I do NOT have a P.O. Box or locked mailbox (5) • I throw away old credit or debit cards WITHOUT shredding them up (5) • I do NOT shred bank or credit card statements up (10) • I use an ATM WITHOUT checking for signs of tampering (5) • I provide my SSN WITHOUT asking why it is need (for example, on applications) (10) • I leave my purse or wallet in the car (10)

44. Are You at Risk for Identity Theft? Test Your “Identity Quotient” • I have my Drivers License number or SSN printed on my checks (10) • I believe my trash is “secure.” (10) • I do NOT look at my monthly statement of all major bills and financial statement FOR FRAUD (This includes bank, credit card, cell phone, utilities and investments) (20)

45. Results • 0-49 points = You have a high “ID theft IQ,” Congratulations • 50-99 points = Your chance of being a victim are about average • 100 + points = You are at high-risk for ID theft • Bottom line, most of us are at risk for ID theft