IDENTITY Theft Financial Literacy Identity Theft

Lesson Objectives Students will be able to recognize signs of identity theft Students will learn the short and long-term consequences and risks of identity theft Students will learn the difference between pretexting and phishing Students will learn strategies for avoiding and dealing with identity theft Financial Literacy Identity Theft

Learning Outcomes Students will learn to recognize the signs of identity theft, possible consequences, and strategies for minimizing risk. Financial Literacy Identity Theft

What is Identity Theft?

Identity Theft Statistics Identity theft is the fastest growing crime in America Washington State ranks 8th in the nation for number of identity theft crimes committed per capita Approximately 7 million people became victims of identity theft last year. That equals: 19,178 / day 799 / hour 13.3 / minute Financial Literacy Identity Theft

Identity Theft Statistics A 2003 study found that there was a 79% increase in identity theft from the year before (2002) The US Secret Service has estimated that consumers nationwide lose $745 million to identity theft each year The average victim spends 606 hours trying to clear his or her credit records Financial Literacy Identity Theft

Identity Theft Statistics The Federal Trade Commission estimates that identity theft costs the average victim $1,400 Identity theft remains the #1 concern among consumers who contact the Federal Trade Commission Approximately 85% of the victims who found out about the identity theft was due to monitoring their credit report Financial Literacy Identity Theft

How does it occur?

Identity Theft Occurs When Someone uses a combination of your: Name and address Date of birth Social Security Number Bank or credit card account number Driver’s license # Mother’s maiden name AND does this without your knowledge or permission AND does this to commit fraud or other crimes Financial Literacy Identity Theft

WAYS Identity Theft is Used 42% Obtains Credit Cards in your name or makes charges on your existing accounts 20% Obtains cell phone equipment or services in your name 13% Forges checks, makes unauthorized Electronic Funds Transfers, or open bank accounts in your name 9% Gets a job in your name 7% Obtains personal, student, car and/or mortgage loans in your name 2% Commits crimes in your name 2% Gets medical services in your name 1% Gets Internet services or sends emails in your name 1% Leases an apartment or house in your name .5% Files bankruptcy in your name Financial Literacy Identity Theft

Identity Theft Risks

What are the costs of ID Theft? Costs to consumers Lost time Approximately $1,400 in out of pocket expenses Credit: problems buying houses and/or cars False arrests Financial Literacy Identity Theft

Stealing Information From You Your wallet or purse Your home or car Your mail (incoming or outgoing) Your garbage or recycling Your old computer Financial Literacy Identity Theft

Stealing Information About You From Others where you work where you go to school where you get medical services where you shop where you bank 2015 Educurious Partners--All rights reserved UNIT 3 LESSON 8

Pretexting & Phishing

Pretexting and Phishing Obtaining information about a consumer under false pretenses Phishing: Tricking you into disclosing information over the phone or on the Internet Financial Literacy Identity Theft

Phishing This is an example of “phishing” – Last month, I received an email – at my FTC email address, no less – from someone claiming to be US Bank. – This is the attachment to the email. It is a total scam. One consumer in Portland received a similar email and believed it was authentic because it had US Bank’s logo and stated that it was from US Bank’s accounts department. When she clicked on the full Internet address, the consumer actually ended up at the scam artist’s web site. The web site asked the consumer to give her social security number, her mother’s maiden name, and her date of birth – and she did. With that information, the crooks had all they needed to access her accounts. The consumer ended up losing over $2,000. Actually, her bank is the one out the $2,000. Here’s the deal: The scam artists don’t know that you’re a US Bank customer – they just send out the email to thousands or even millions of email addresses, hoping that some consumers who are US Bank customers will take the bait – which is why it’s called “phishing.” Link to video Financial Literacy Identity Theft

Phishing Complete the Scams and Schemes: Phishing Emails activity. Financial Literacy Identity Theft

Consequences & minimizing Risk

Consequences of Identity Theft Victim may not discover for months or years Victim saddled with bad credit report Victim may be denied new credit, loans, mortgages, utility service, or employment Where criminal record created in victim’s name, may even spend time in jail Victims’ problems caused by ID theft: -- denied new credit, have credit card rejected at point of sale, credit card closed (20%) or charged higher interest rates -- harassed by debt collector (20%) -- turned down for loans (18%) or higher rates -- turned down for bank account, have checks rejected, bad check list (13%) -- turned down for insurance (8%) or higher rates -- utility service cut off or denied (6%) Source: FTC survey Financial Literacy Identity Theft

How to Minimize Risk Don’t carry more information than you need Guard personal information Order and read copies of credit reports Review account statements when they arrive Don’t give others more information than needed Financial Literacy Identity Theft

How to Minimize Risk Read your Social Security Administration annual statement (will receive once you pay into SSA) Use passwords on accounts and home computers Opt out of sharing information Ask yourself whether you really need all the information in your wallet or purse. Don’t leave information laying around your house where it can be seen or taken by others who may come into your house. Shred or dispose carefully of financial information. Don’t put payments containing personal checks in an unsecured mailbox and when you order new checks, pick them up at the bank. Ask businesses, doctors, banks why they need information you may be uncomfortable providing. If you do decide to provide it, ask about how it will be safeguarded and who else will get it. Reading your SSA annual statement will alert you if someone else is using your SSN on the job. Use strong passwords – not birthdate or mother’s maiden name Take action if anything seems strange, such as: -- not receiving your monthly billing statement or receiving a credit card you didn’t apply for -- denial of credit for no apparent reason -- receiving calls or letters from debt collectors or businesses about merchandise or services you didn’t buy OPTING OUT – GO TO NEXT SLIDE Financial Literacy Identity Theft

What can I do?

What Should a Victim Do? Act quickly Fraud alert with credit bureau Credit Bureau: agency that provides consumers with their credit history and assigns a credit score Close accounts File police report – and get a copy Federal privacy laws give you the right to opt out of some sharing (but not all) Financial Literacy Identity Theft

Make sure to call, AND follow-up in writing Credit Bureaus Equifax, Inc. to report fraud: 1-800-525-6285 Experian to report fraud: 1-800-EXPERIAN TransUnion to report fraud: 1-800-680-7289 Make sure to call, AND follow-up in writing Financial Literacy Identity Theft

Top Ten Tips Use a shredder – preferably cross-cut Use a locking mailbox Don’t put outgoing mail in your mailbox Pick up check orders at bank Guard your SSN Do not put your SSN on your checks Do not carry your SSN card in your wallet (keep it safe at home) Financial Literacy Identity Theft

Top Ten Tips (cont’d) Use passwords on cell phones and computers Read your billing statements Check your credit report Annualcreditreport.com – Free Freecreditreport.com – not free Opt out of sharing information Don’t give information over the phone unless you initiated contact Financial Literacy Identity Theft

Social Media and Identity Theft Complete the Friend or Foe activity. Financial Literacy Identity Theft

Complete the Lesson… Now watch Identity Theft: The Michelle Brown Story and complete the Identity Theft: The Michelle Brown Analysis activity. Financial Literacy Identity Theft