Objectives  Explore ways to prevent identity theft.  Determine the differences between identity theft and consumer fraud.  Examine how media and technological advances impact family and consumer decisions.

Identity Theft Identity theft is when someone uses your personal information (name, social security number, credit card information) without your consent to commit fraud and/or other crimes. This information can be in paper or electronic formats. Page 26

How do Identity Thieves Get Your Personal Information?  From businesses and other institutions Stealing and hacking records while on the job Conning or bribing employees who have access to records and employee information  Stealing mail from your mailbox  “Dumpster Diving” - rummaging through your trash or public trash dumps  Phishing – posing as a legitimate company  Skimming – capture information using a data device attached to an ATM or credit card machine  Shoulder Surfing Page 35 Game Handout

What can Identity Thieves do with the information? Page 35 Identity Theft Faceoff Game

Identity Theft  How do I Prevent Identity Theft?  What do I do if my Identity is Stolen?

Fraud  Deceitful conduct designed to manipulate another person for some gain. Form of lying Repeating something that ought to have been known to be false. Concealing a fact that might have saved the other party from being cheated Page 41

Fraud Tips  If something sounds to good to be true it probably is  Never pay for something you have won  Avoid contests or sweepstakes that require a payment or purchase to enter  Don’t let anyone rush you into making a decision  Get estimates and promises in writing

Buyer Beware Scenarios A sweepstakes sends notification that you have won a “valuable prize”, but asks that a $50 processing fee be paid up front. You send the money and months later receive a cheap radio that you could have bought at a discount store.

Buyer Beware Scenarios An earn-money-at-home opportunity promises wages up to $15 per hour for simply responding to . Before you can start work, however you must purchase $800 worth of software. Once you make this payment, the materials never arrive.

Buyer Beware Scenarios You’re the winning bidder in several online auctions. Your check is cashed, but you never receive one of the auction items. An item finally arrives, but instead of the valuable item described on the auction site, you get a different item worth much less. You look back at the online auctions Terms and Use Policy which states that items may be substituted.

Buyer Beware Scenarios You are surfing the internet and a pop up displays offering a free custom- designed website for a 30-day trial period, with no obligation to continue. You accept the offer but forget to cancel before the trial period ends and you are charged $500 by the company.

Buyer Beware Scenarios Our trees needed to be trimmed, so it seemed like a great coincidence when a young guy came to the door and offered to do the job for $40. My mom paid him and then we left for an appointment. When we came home the limbs he had trimmed were laying all over our yard.

Buyer Beware Scenarios We planned to buy a digital camera for Mother’s Day, but it didn’t work out. We went the same morning an ad was in the newspaper, but the salesperson said those cameras just “flew” out of the store. Then she tried to sell us a camera that cost twice as much.

Buyer Beware Scenarios You receive an from a “foreign government official” offering an opportunity to split a huge sum of money if he can just transfer funds to your bank account but he needs your account information? You agree to his request but you never receive your money and within a few months realize that your identity has been stolen.

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