Identity Theft

1. Identity Theft Barbara O’Neill, Ph.D., CFP Rutgers Cooperative Extension, New Jersey Adapted by Jean Lown, Ph.D. & Lindsay Grover Financial Planning for Women April 11, 2012

2. ID Theft • Deter • Detect • Defend • http://www.ftc.gov/bcp/edu/microsites/idtheft/video/avoid-identity-theft-video.html 2

3. What is Identity Theft? • a crime of stealing personal information & using it fraudulently • name • address • Social Security number • birth date • mother’s maiden name, etc. 3

4. What are Consequences? • Prevents you from getting mortgage, loan, credit card, etc. • Costs you time & money • Destroys your credit & ruins your good name • Criminals assume your identify 4

5. Warning Signs of Identity Theft • Not receiving credit card or bank statements • Denied credit • Getting bills from companies you don’t recognize • Credit collection agencies calling to collect on debts that are not yours 5

6. Common Forms of Identity Theft • Credit card fraud • Communications services fraud (cell phone) • Bank fraud • Fraudulent loans • Internet fraud 6

7. How Identity Theft Occurs • Identity thieves… • steal wallets and purses containing your ID • steal your mail • complete false “change of address” forms • rummage through trash (“dumpster diving”) • pose fraudulently as someone else to get your information 7

8. More Ways Identity Theft Occurs • Identity thieves… • steal business or personnel records • find personal info in your home • use info you put on Internet (FB) • buy personal info from “inside sources” • “shoulder surf” at ATMs • Tap into wireless communications 8

9. Technology Scams: Phishing, Fraudulent E-mails, etc.

10. Look-Alike (Fake) Web Sites • Spoof e-mail messages sent to “verify” or “update” account info • Appears to come from reputable company • Example: eBay, Best Buy, banks, merchants • Looks “legitimate” • Scam is called “phishing” • Get people to disclose sensitive data • Data used to commit identity theft 10

11. Red Flags of a Phishing Scam • E-mails that direct users to a Web site to “validate” or “update” info • E-mails warning accounts will be closed • Grammatical errors and typos • References to 9-11, the Patriot Act, etc. • Return addresses at yahoo.com, juno.com • Words Like “Urgent” and “Important” 11

12. How Identity ThievesUse Your Information • Change mailing addresses on credit card accounts • Open new credit accounts • Establish phone or wireless service in your name • Open new bank accounts & write bad checks • File for bankruptcy under your name • Make counterfeit checks or debit cards • Buy and take out car loans in your name • Commit crimes in your name 12

13. Reducing the Risk of ID Theft • Shred credit card applications, receipts, bank, & billing statements • Avoid giving your SSN unless absolutely necessary -- use other identifiers • Guard mail from theft (in- & out-going) • Go Green; go electronic 13

14. More Ways toReduce the Risk of Identity Theft • Carry minimum identification • Travel with back up ID secured • Limit number of credit cards you carry. • Don’t give personal identification on phone unless you initiate call. • Protect personal info in your home. • Use STRONG passwords on credit card, bank, & phone accounts. 14

15. Still More Ways toReduce Risk of Identity Theft • Don’t carry your SS card. • Save ATM & credit card receipts to check against statements. • Monitor your credit reports 3x/year • https://www.annualcreditreport.com 15

16. Deter ID Theft • Opt-out of pre-approved credit offers • Thieves steal & alter to apply in your name at their address • https://www.optoutprescreen.com • Protect yourself w/ a credit report freeze • Don’t wait until you are a victim • Place 90 day freeze & renew • https://www.annualcreditreport.com 16

17. 90 day fraud alert a.k.a. initial security alert • a 90 day fraud alert is free • a credit freeze costs $ • Fraud Alert takes only a couple minutes https://www.experian.com/fraud/center.html • Register with 1 credit bureaus it notifies the other two CBs. • Also removes you from prescreened offer mailing list for 6 months. 

18. Defend: If You’re a Victim... • Contact credit bureau fraud departments • https://www.annualcreditreport.com • Place fraud alert on your account • Contact creditors & financial institutions • Close accounts that you know or believe someone has tampered with or opened fraudulently; get new account # • File police report • Report to FTC • Report to state Attorney General office 18

19. Who’s got your kid’s ID? (SLT 4/8/12) • Utah AG’s ID theft report system • > 3,000 cases in past 5 years • 2/3 involved children’s SS# • FTC: 19,000 cases of child ID theft • Why kids? Theft goes undetected for years! • Cases of Utah kids w/ $500,000 in debts! 19

20. Utah Resources • KSL TV report January 2012 • http://www.ksl.com/?nid=960&sid=19074819&s_cid=rss-960 • 2:34 min. • Minor Theft Prevention Service • ID Theft & Child Identity Protection • http://www.idtheft.utah.gov/ 20

21. Protect your kids • AG’s Child Identity Protection Program • Partnership with TransUnion credit agency • Places warning on child’s credit record • Puts them in “High risk fraud” database • If someone applies for credit in kid’s name creditor gets warning that SS# is minor’s • Don’t pay for costly credit monitoring services 21

22. ID Theft through Social Networking Sites • Accepting invitations to connect with unfamiliar persons or contacts • Using low privacy or no privacy settings • Downloading free apps for use on your profile • Giving your password or other account info to people you know Tips from: ID Theft Resource Center: www.idtheftcenter.org 22

23. Social Networking ID Theft Tips from: www.idtheftcenter.org • Participating in quizzes (i.e. How well do you know me?) • require you to divulge personal info • Clicking links that lead to other websites, • Beware even if the link was sent by a friend or posted on friend's profile • Using no or out-of-date security software 23

24. How to Protect Yourself in Social Media Settings • Use least amount of info necessary to register & use sites (use a nickname) • Create STRONG passwords; change often • upper & lower case, symbols & numbers • Be wise about what you post Tips from: www.idtheftcenter.org 24

25. Protect Yourself on Social Media Tips from: www.idtheftcenter.org • Only connect w/ people you know & trust. • Read privacy and security polices closely • Verify emails & links in emails from your social networking site. • Un-click the privacy settings that display the time stamps of your posts 25

26. ID Theft & Smart Phones • Don't lose it! • Use passcode to protect phone in case it is lost or stolen. • Use anti-virus software • Update software when updates are available • Only enable GPS when needed (?) Tips from: www.idtheftcenter.org 26

27. ID Theft & Smart Phones • Don’t save account # & passwords in text files. • Don’t use auto-save function on passwords. • Delete unused apps • Be careful about using wifi spots 27

28. ID Theft Resources • ftc.gov/idtheft • 1-877-ID-THEFT • Identity Theft Clearinghouse • Utah: http://www.idtheftcenter.org/artman2/publish/states/Utah.shtml 28

29. Questions? Comments? 29