Identity Theft and Phishing: What You Need to Know

1. Identity Theft and Phishing: What You Need to Know

2. Take the Identity Theft Quiz

3. What is Identity Theft? Identity theft is a crime of stealing key pieces of someone’s identifying information, such as: • name, • address, • Social Security number, • birth date, and • mother’s maiden name

4. Common Forms of Identity Theft • Credit card fraud • Communications services fraud • Bank fraud • Fraudulent loans • Internet fraud

5. 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

6. More Ways Identity Theft Occurs Identity thieves… • steal business or personnel records at your workplace. • find personal info in your home. • use info you put on the Internet. • buy personal info from “inside sources.” • “shoulder surf” at ATMs and telephones.

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

8. Reducing the Risk of Identity Theft • Destroy credit card applications, receipts, bank, and billing statements. • Avoid giving your SSN unless it’s absolutely necessary -- use other identifiers. • Pay attention to billing cycles. • Guard your mail from theft. • Put passwords on credit card, bank, and phone accounts.

9. More Ways toReduce the Risk of Identity Theft • Carry as little identification information as possible. • Limit the number of credit cards you carry. • Don’t give personal identification on the phone unless you initiate the call. • Be cautious with personal info in your home. • Check on who has access to your personal info at work.

10. Still More Ways toReduce the Risk of Identity Theft • Don’t carry your SS card. • Save ATM and credit card receipts to check against statements. • Alert family members to dangers of pretexting. • Be informed about your financial institutions’ policies of sharing information. • Make sure your credit reports are accurate.

11. How to Get Your Credit Reports 3 National Credit Reporting Agencies: Equifax Experian Trans Union U.S. residents can receive one free credit report per year from each credit reporting agency • www.annualcreditreport.com • 877-322-8228

12. If You’re a Victim... 1. Contact the fraud departments of the three major credit bureaus. 2. Contact creditors or financial institutions for any accounts that have been tampered with. 3. File a report with local police or police where the theft took place.

13. The Emotional Impactof Identity Theft Embarrassment -- Feeling that you did something wrong Personality changes -- Feelings of paranoia and misplaced anger Powerlessness -- Persistence is key to undoing the damage Insecurity -- A distrust of everyone

14. Overcoming The Emotional Impact of Identity Theft • Get psychological counseling. • Consider legal help. • Network with other victims -- join or start a support group. • Don’t give in and pay what you don’t owe.

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

16. 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

17. 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”

18. Steps To Avoid Phishing • Be cautious: African refugees with $10 million, suspended FDIC insurance, etc. • Realize that banks never ask for account info, especially in an e-mail • Don’t click on any links in suspicious e-mails • Report suspicious e-mails to companies • D-E-L-E-T-E

19. Newest Scam: Medicare-Approved Drug Discount Cards • Helpful callers or e-mails or door-to-door fraudsters offer to help seniors get a Medicare-approved drug discount card • Fraudsters request SS # for ID • Victims’ personal info used for: • Identity theft crimes • Medicare fraud crimes

20. Recommended Technology Fraud Risk-Reduction Practices • NEVER click on unsolicited pop-up ads • Avoid putting your e-mail address on public Web pages (can be harvested by spammers) • Don’t use “good” e-mail address in chat rooms • Avoid short addresses like “John101” • Keep virus software & patches up to date • Never forward chain letters & virus warnings

21. Interesting Fact 58% of e-mail messages in 2003 were spam Source:Kiplinger’s Personal Finance, March 2004

22. ID Theft Study • Purpose • To understand what actions consumers are taking to reduce the risk of identity theft • Data collected from an online self-assessment tool (sample bias) • 20 questions; 1 (never) to 5 (always) • Higher score: more frequent use of risk reduction practices • Data from 287 respondents in 2003

23. Web Site Address For The Online Identity Theft Quiz www.rce.rutgers.edu/money/identitytheft/default.asp The online quiz provides both personalized feedback to users and a database for ongoing research

24. Findings • Mean scores range from 2.1 to 4.4 • Three least frequently reported practices: • Checking credit report annually from 3 bureaus • Post office box or locked mailbox-incoming mail • Carrying SS card or ID card with SS number

25. Checking Credit Reports • Least frequently performed risk reduction practice (score of 2.1) • Almost a third of sample were respondents from six states that mandated free reports • CO, GA, MD, MA, NJ, and VT • Two groups of respondents compared • No difference found between groups • Cost may not be a primary barrier

26. Research Highlights • Majority of sample used many risk reduction practices • Indication of consciousness-raising • From government and non-profit agency info • From media reports about identity theft • From knowing a crime victim (1 in 50 people) • Not giving out SS and bank account # and having mail held: most frequently done

27. Summary • Minimize the amount of information that can be stolen from you. • Reduce the amount of personal information “out there.” • Identity theft is a crime that must be reported. • Act immediately to stop further use of your identity.