MoneyCounts: A Financial Literacy Series Identity Theft Dr. Daad Rizk MoneyCounts: A Financial Literacy Series 301 Outreach Building University Park PA 16802 dar39@psu.edu 814-863-0214

Learning Objectives What is identity theft? How does it happen? Why is it a problem? How to protect yourself and others? Recognize the warning signs of identity theft Reducing the risk of becoming an identity theft victim What to do if you fall a victim of identity theft Daad – will introduce the topic and will do the slide 2,3,4, 6 – will then introduce Amy to continue the rest of the prevention section

What is Identity Theft? Happens when someone uses your name, credit card number, social security number, password or other identifying data to make purchases, get cash or commit fraud Identity theft affects credit worthiness, disrupt lives Requires time and effort to restore compromised personal and financial records Daad

Statistics 9,000,000,00 American become victims of identity theft each year (FTC – Federal Trade Commission) Every 79 seconds, a thief steals someone’s identity, opens accounts in the victim’s name and goes on a buying spree (CBSnews.com) 8% of all identity theft cases is impacting children under the age of 19 (CBSnews.com) Florida is #1 with identity theft cases in the nation - targeting senior citizens (CBSnews.com) Daad

Identity Theft Identity Theft trailer Daad

What data to protect? Personal data – Full legal name, Birthdate, Mother’s Maiden Name Address, Hometown, Phone Number Social Security Number, Graduation Date, PIN # Credit Card numbers (expiration date, Security Code#) Social Media, Cyber Space and Passwords Daad

In person – Theft Ways to protect your personal information from being compromised Know how identity theft happens – in person Rummaging through your trash or mailbox Breaking into your home Stealing your purse, wallet or cell phone Changing your mailing address – diverting your bills and mail Shoulder surfing Daad

Online – Theft Ways to protect your personal information from being compromised Know how identity theft happens – online Phishing – posing as a legitimate business, emails, pop-up messages Hacking your computer – from a remote location while you are on your computer Skimming - using a magnetic card reader to steal your Card # while using ATM or keypad in a store Pharming – redirecting your internet domain through technical means Spamming – unsolicited e-mails to multiple mailing lists Spoofing – Creating a replica of a legitimate web page Daad

Phishing What is Phishing? Phishing (pronounced: fishing) is an online-fraud technique that is used by criminals asking you to click on a link to lure you into disclosing your personal information, which then enables the thief to: Apply for and get credit in your name. Empty your bank account and charge expenses to the limit of your credit cards. Remove money from your accounts. Use a copy of your debit card to withdraw your money from anywhere in the world. Amy -

Skimming What is Skimming? When a credit card is skimmed, data on the card, including the account number, is electronically transmitted or stored. The credit card information can then be encoded onto a lost, stolen, or counterfeit credit card and used anywhere in the world. (stealing your card information) Amy

Examples of Skimming Examples of skimming instances include: A collusive store employee completes a valid sale, and then captures a second (unauthorized) swipe covertly on a portable device before returning the card to the cardholder A skimming device is added to the front of an ATM or gas pump and captures the credit card information as the consumer attempts to use the machine A skimming device is added inside an ATM or gas pump and captures information during a valid transaction. In many cases a cover camera is also set up to capture the card holder’s personal identification (PIN) number Amy

False sense of security concept, Be Aware! Prevention is Key! Ways to guard against identity theft – Surrounding and in public Be aware of your surrounding during financial transactions Carry only necessary to-go items in your purse or wallet (especially when traveling) Secure your Social Security Number - never carry it in your wallet, memorize the number and use cautiously on the phone or in public Initiate financial transactions yourself – react carefully to any and all invitations Amy False sense of security concept, Be Aware!

Prevention is Key - 2 Ways to guard against identity theft - paper documents Use a shredder – dispose in various trash bags Shred all bills except the last one – keep in a safe place Shred bank statements – you can always get copies online if needed Avoid receiving banking information in your mail box Order and pick up checks at your Bank Keep a (fire-proof) safe deposit box for your important personal documents – passport, tax copies, birth certificate, marriage certificate, deeds, etc., Amy

Prevention is Key -3 More ways to guard against identity theft – Computer Use different password for different electronic devices, use hard-to-guess password (do not keep your password under your keyboard) Use a firewall to shield your computer from hackers; antivirus and other types of security protection software Wipe out your old hard drive before you dispose of your computer Log out and close your browser afterward when using computer – avoid public computers to check personal data or financial information Never open a link in an unsolicited email or pop-up message Avoid being skimmed – watch for tapes on the ATM machine – use indoor devices (more difficult to be tempered) Amy

Prevention is Key - 4 Ways to safe guard other devices and electronics Protect your cell phone with a password Watch for Pretexting – scamming your cell phone Watch your GPS device - do not leave on the window shield (home address, telephone number, etc.,) Protect your un-opened mail – do not leave in the car Amy

Prevention is Key - 5 Children are a new target – 8% of all identity theft cases Check their credit reports, protect their Social Security Number and personal data Government Benefits – Social security payments, Tax refunds, Medicaid, Unemployment, Disability benefits Student financial aid – PIN# - FAFSA - NSLDS Medical Records Use of medical care under a stolen identity Avert payment Cause confusion with medical treatment Health insurance claims Amy

Active Duty Alert Service members who deploy can place an active duty alert on their credit reports to help minimize their risk of identity theft An active duty alert on a credit report means businesses have to take extra steps before granting credit in your name. Active duty alerts last for 1 year, and can be renewed to match the period of deployment. Provide proof of identity, like a government-issued identity card, driver’s license, military identification, birth certificate, or passport. The company you call must contact the others. The credit reporting companies will take your name off their marketing list for prescreened credit card offers for 2 years, unless you ask them to add you back onto the list. Amy

Opting Out Consider opting out of prescreened offers of credit and insurance by mail. You can opt out for 5 years: Call toll-free 1-888-5-OPT-OUT (1-888-567-8688) or visit www.optoutprescreen.com. The phone number and website are operated by the major consumer reporting companies. To opt out permanently: You may begin the permanent Opt-Out process online at www.optoutprescreen.com. To complete your request, you must return the signed Permanent Opt-Out Election form, which will be provided after you initiate your online request. The 3 nationwide credit reporting companies operate the phone number and website. Amy

Are you a Victim? Know the warning signs If you are failing to receive certain bills Watch for mysterious withdrawals from your checking, savings and investment accounts Watch for charges on your credit card statements that you don’t recognize If you get denied credit for no apparent reason If you are contacted by debt collectors or stores for purchases you did not make Keep tabs on your credit report – get your free copy every 12 months from the 3 nationwide credit reporting agencies Equifax, Experian and TransUnion Annualcreditreport.com Call 877-322-8228 Amy – explain the warning signs and tell them – I am going to turn the presentation to Daad to tell you what you should do if you fall victim to identity theft

What Should You Do? Steps you can take if you find yourself or someone you know a victim of identity theft Notify credit reporting agencies (CRAs) –one of them will suffice, they will notify the other agencies – All three will send you a free credit report to check and report back to them. Fraud Department Equifax 800-525-6285 Experian 888-397-3742 TransUnion 800-680-7289 Contact creditors – fraud department Follow up in writing and provide copies of supporting documentation Contact your Bank or Financial Institution File a police report – get a copy or a report number File a complaint with the FTC at Consumer Information: Identity Theft Or call 877-IDTHEFT (438-4338) Daad I will explain what they should do and Segway into the worksheet

MoneyCounts: A Financial Literacy Series Thank You! Comments and Questions Dr. Daad Rizk MoneyCounts: A Financial Literacy Series 301 Outreach Building University Park PA 16802 dar39@psu.edu 814-863-0214