Identity Theft Essentials Advanced Level

Identity Theft According to the Federal Trade Commission (FTC): IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information The FTC is a government agency that promotes consumer protection

FTC website The FTC provides a consumer identity theft education website: http://www.ftc.gov/idtheft Includes great information for those who suspect they may be a victim of identity theft, are a victim of identity theft, or want to learn more about identity theft Has a “Deter, Detect, Defend” theme

Personal Information Name Address & Telephone Number Social Security Number Driver’s License Number Birth Date Credit Card Numbers Bank Account Numbers Identity thieves try to obtain personal information from victims in order to steal their identities Personal Information

Personal Information What daily activities require an individual Making purchases with a check, credit or debit card Applying for a credit card or loan Online or telephone shopping Paying bills through the mail or online Going to the doctor What daily activities require an individual to share personal information?

How Do They Do It? Thieves obtain personal information through a variety of methods: Stealing - Information is taken from a purse or wallet, personnel records from a workplace, tax information, bank or credit card statements, or pre-approved credit card offers from the mail Diverting Mail - Thieves can complete a change of address form and have the victim’s bills and statements mailed to a different location “Dumpster Diving” - Personal information is discarded and thieves remove it from the trash Skimming - Thieves attach a device to card processors to steal credit and debit card information

How Do They Do It? Methods continued... Phishing - Thieves use a form of electronic communication (usually email) to pretend to be a company or depository institution in order to get the victim to give up their personal information Pretexting - Thieves use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources Spyware - Software installed on the victim’s computer, without their knowledge or consent, that monitors internet use, sends pop up ads, re- directs the computer to other sites, and tracks key strokes Hacking - Information is stolen by breaking into a computer system

What Identity Thieves Do With Information What can identity thieves do if they obtain personal information? Apply for a new driver’s license Open new bank accounts Apply for credit cards or store credit accounts Obtain cash with bank cards Get a job Rent an apartment Take out student loans File for bankruptcy

DETER- Minimize Your Risk Key Guidelines Protect your Social Security number Only give it out to trusted organizations and only when absolutely necessary Protect financial information Sign the back of credit and debit cards with signature and “Please see ID” Close unwanted accounts by writing and by phone Cut up credit, debit, and ATM cards and dispose of the pieces in separate places

DETER- Minimize Your Risk Key Guidelines Safeguard your purse and wallet Carry only what you'll actually need when you go out Don't carry your Social Security number or card, birth certificates, or passport Verify a source before sharing information Don't give out personal information over the phone, through the mail, or on the Internet unless you've initiated the contact

DETER- Minimize Your Risk Key Guidelines Be careful using the Internet Only give out personal information when making a purchase and only on a secure site (indicated by a “https” or a picture of a lock after the URL or in the bottom right corner) Use a credit card instead of a debit card when making online purchases Watch for clues that might indicate a computer is infected with spyware Many pop-up ads, unexpected toolbars or icons, keys that don't work, random error messages, and sluggish performance If it is suspected that a computer is infected with spyware, immediately stop shopping, banking or doing any other online activity that involves sensitive information

DETER- Minimize Your Risk Key Guidelines Keep usernames and passwords safe and select intricate passwords For passwords, choose a combination of letters, numbers, and symbols that are not easily identified Use different usernames and passwords for different sites and change them regularly Select security check questions with answers only you would know Treat your trash and mail carefully Shred all documents that you are discarding that contain personal information A cross-cut shredder is safest Deposit mail containing personal information in secured mailboxes

DETER- Minimize Your Risk Key Guidelines Protect your identity Search your name occasionally to see if your name, picture, or other information is being used by someone else Keep all documents containing personal information in a safe place where others cannot easily access them Check credit reports Check credit reports for errors at least once a year with all three reporting agencies To stay constantly informed, request a credit report from one of the three reporting agency every four months

3 Credit Reporting Agencies Experian PO Box 2104 Allen, TX 75013-2104 Report Order: 1-888-397-3742 Fraud Hotline: 1-888-397-3745 www.experian.com Equifax PO Box 105873 Atlanta, GA 30348 Report Order: 1-800-685-1111 Fraud Hotline: 1-800-525-6285 www.equifax.com Trans Union PO Box 390 Springfield, PA 19064-0390 Report Order: 1-800-888-4213 Fraud Hotline: 1-800-6807289 www.tuc.com To order a credit report from any of the three reporting agencies, use the following website: www.annualcreditreport.com

DETER Identity Theft Activity Brainstorm how to minimize the risk of identity theft in regards to each information source Share! 1. 2.

Watch for the following signs DETECT Identity Theft Early detection is key! Watch for the following signs New accounts or charges you didn’t make Calls from collection agencies Incorrect information on your credit report Being denied credit when there is no reason to be Missing bills or mailed statements

DEFEND - Recover From Identity Theft 1. Act immediately! 2. Keep a detailed record of correspondence and phone records Follow up all communication with letters sent via certified mail 3. Contact the three major credit bureaus and request a free fraud alert be added to credit report Fraud alert - warns creditors to verify an individual’s identity before issuing credit

DEFEND - Recover From Identity Theft 4. Close all accounts which have been tampered with or opened fraudulently 5. File a police report with the local police 6. File a complaint with the FTC: www.ftccomplaintassistant.gov

Personal Liability Credit Cards Truth in Lending Act limits liability for unauthorized charges to $50.00 per card A letter must be received by the creditor within 60 days of the first bill containing the error The dispute must be resolved within 90 days of the creditor receiving the letter

Personal Liability ATM and Debit Cards The Electronic Funds Transfer Act provides protection The amount a person is liable for depends upon how quickly the loss is reported Within two days: maximum $50.00 Within sixty days: maximum $500.00 After sixty days a person may be liable for everything

Personal Liability Checks Contact the financial institution and stop payment Most states hold the financial institution responsible for losses of a forged check

Summary IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information Once an identity thief obtains personal information, they can complete many malicious acts with the information There are many ways to DETER identity theft Early DETECTION is key There are basic rules to follow in order to DEFEND against identity theft if it does occur