The Third International Forum on Financial Consumer Protection & Education “Fostering Greater Consumer Protection & Education” Preventing Identity Theft and Fraud

2 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Agenda 1.Our Identity 2.Definition 3.How Can Identity Theft Happen 4.Misuse of Stolen Identities 5.Warning Signs 6.Preventing Identity Theft 7.Tackling the Problem

3 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Our Identity Our identity is a valuable asset It’s a personal part of who we are Open bank accounts Obtain credit cards Apply for loans, mortgages Purchase goods and services Claim benefits

4 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Definition Identity Theft: An illegal act in which someone accesses and uses the identifying information of an actual person in some way that involves fraud or deception. Identify Fraud: The use of a misappropriated identity in criminal activity, to obtain goods, services or benefits by deception for economic gain without the victim being aware.

5 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud How Can Identity Theft Happen? Your HOME or VEHICLE is burgled and your personal information and documents may be taken. Your personal information may be stolen and used or sold by employees of legitimate BUSINESS. Information found in the TRASH BIN could provide a thief with an opportunity to steal your identity. Many important documents are posted to you and can be stolen from your MAILBOX.

6 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud How Can Identity Theft Happen? Criminals could request for a “change of address” and have your MAIL DIVERTED to another address. Your WALLET contains personal information such as your licence, credit and ATM cards and other personal documents, that may be stolen. You may be the victim of a scam and be conned into providing personal information over the telephone by an IMPERSONATOR (social engineering).

7 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud How Can Identity Theft Happen? SHOULDER SURFING in public place. Your personal computer could be the weakest link, as it is vulnerable to threats posed by HACKING, PHISHING and MALWARE. Most surprisingly, you could have your identity stolen and used by someone you know and trust - FRIEND, RELATIVE or COLLEAGUE.

8 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Misuse of Stolen Identities Submit false application for credit cards and loans Take over existing accounts Open bank accounts to write bad cheques Open landline or mobile phone account File for bankruptcy Submit false claims on insurance policies Submit fraudulent tax returns to collect refunds Submit claim for unemployment or social security benefits

9 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Misuse of Stolen Identities Terrorism financing Money laundering People smuggling (human trafficking) Illegal immigration Drug trade Crimes Abuse of government programmes

10 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Misuse of Stolen Identities Fastest growing crime US in million victims US$1 billion loss by lenders UK in 2003 Over 100,000 cases £1.3 billion loss Australia in 2002 A$1.1 billion loss

11 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Warning Signs  You receive bills, invoices or receipts for goods which you have not ordered.  You receive letters or calls from debt collectors relating to debts that aren’t yours.  You receive bank statements for accounts in your name which you have not applied for or opened.  There are transactions on your account statements that you don’t recognize.

12 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Warning Signs  Important identification documents are missing.  You stop receiving regular mails.  You did not receive any mail at all.  New accounts on your credit report.  Searches on your credit bureau report that don’t relate to any application made by you.

13 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Preventing Identity Theft Supply your personal information appropriately Check financial information regularly Ask for credit bureau report periodically Maintain a record of important accounts Destroy personal information before disposal Use passwords for important accounts Report loss or theft immediately Secure your mail and personal information

14 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Computer & Internet Use passwords for protection Change passwords periodically Use anti-virus software Install personal firewall software for online access Beware of unsolicited s (phishing & malware) Transact at secure websites; avoid spoof websites Wipe before disposing hard drive Be wary of using public computers Preventing Identity Theft

15 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Tackling the Problem Stringent verification process to detect fraudulent applications using stolen identities Using scoring technology & neural networks Robust procedure to prevent account takeover Employee screening & training programme One-time password and two-factor authentication for internet banking Fraud Detection System Customer education Information sharing

16 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud Victim Assistance Programme Citi Identity Theft Solutions Comprehensive service Close unauthorized accounts Credit bureau checks Contact other creditors/banks Police report Monitor account Update status until close Reclaim identity Tackling the Problem

17 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud ID card system Criminal offence for identity theft and fraud Police investigation Sufficient deterrence to criminals Access to public records Tackling the Problem

18 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud The End THANK YOU

19 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud

20 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud

21 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud

22 3 rd Int’l Forum on Financial Consumer Protection & Education Preventing Identity Theft & Fraud