“ ” Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders, and whenever you get in its way or cross its course or fail to meet its demands it crushes you. ~ J. Ruben Clark

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Identity Theft “The crime of the 21 st century”

What is Identity Theft?  Identity theft happens when someone steals your personal information and uses it without your permission. It’s a serious crime that can wreak havoc with your finances, credit history, and reputation — and can take time, money, and patience to resolve.

CitiBank Identity Theft Protection commercials 

Statistics  More than 15 million US residents have their identities used fraudulently each year  Financial losses totaling upwards of $50 billion  About 7% of people age 16 or older were victims of identity theft in 2012  The majority of identity theft incidents (85%) involved a fraudulent use of existing account information, such as credit card or bank account information.

Zach Friesen  Applied for a job at 19  The store manager turned him down because of his terrible credit record—when he’s never had credit in his life!  Someone had rung up about $40,000 worth of bills under his name—when he was 7 years old.

Judith Collins professor of criminal justice at Michigan State University  Someone obtained her Social Security number in 1999 and used it to open 33 credit card accounts, ordering masses of merchandise to a post office box in California.  She uncovered about 25 other victims living within 45 miles of her home who all went to the same medical clinic.

Collins tells a story of a young woman at Michigan State…  She was studying in the library and left her backpack to go to the bathroom.  Someone stole her purse. Police believed she was casing the campus looking for someone who resembled her.  The thief used the student’s driver’s license to cash a bad check— unknown to the victim. Until the police showed up at her door on Christmas and arrested her.

18- to 29-year-olds are the Most Vulnerable  In 2003, 28% of identity theft cases  Why?  Lack of Knowledge  Teens typically don’t have credit reports, having never applied for a loan or a credit card. Their Social Security numbers lie dormant for years.  Invincibility Belief  According to the National Cybersecurity Alliance, 40% of Americans under 25 believe that they are more likely to be hit by lightning, audited by the IRS, or win the lottery.

How does Identity Theft Happen?  Lift records from workplaces  Stealing mail containing bank statements, credit card offers, and tax information  Rummage through trash  Use change of address forms to divert mail  Steal purses and wallets  Obtain credit reports by posing as a landlord or an employer.  Find a mother’s maiden name

Phishing Scams 

Once they collect enough personal information  change the billing address on an account, then run up charges  Open credit cards under the assumed name  Accounts become part of the victim’s credit report  Apply for phone or wireless service under stolen names  Open bank accounts and write bad checks on them  Buy cars  Get jobs  File fraudulent tax returns or file for bankruptcy  Criminal Identity Theft

Criminal Identity Theft  The use of any form of identification to deceive a law enforcement officer or agency into assigning a criminal act to the name of an identity theft victim.  Thieves use the identity of an innocent victim during the commission of other crimes. Those crimes may result in the innocent victim receiving a criminal record that they’re unaware of.  Once the name of an innocent identity theft victim is assigned to the criminal act, it can be very difficult for the identity theft victim to convince authorities that they are not the individuals who committed the crime.

A Horrifying Story   A woman had her ID stolen and then was charged for theft

Social Media/Technology/Smart Phones   “Technology breeds crime, it always does, it always will.”   How to protect your self from Facebook Identity Theft

5 Easy Things You Can Do   1. Read credit card statement carefully and often  2. Know your payment due dates  3. Read your health insurance plan statements  4. Shred documents with personal information  5. Review your credit reports at least one a year

7 More Easy Ways to Protect Yourself From Online Identity Fraud 

 1. Password protect login for all devices  2. Use strong passwords  3. Use an online/mobile password keeper  4. Add computer safety software to your devices  5. Be wary of personal information on social media  6. Only friend people that you know  7. Set ground rules for your kids  8. Check suspicious websites to avoid phishing

What To Do if You’re a Victim of Identity Theft   1. Place a Fraud Alert  2. Order your Credit Reports  3. File a complaint, then a police report

 Bethany purchased a new pair of shoes from the Internet. What steps should she take to ensure her identity was protected while making the purchase?

 Dana went out to dinner and left her credit card there. The next day she called the restaurant and they said they didn’t have the card. What should she do?

 Jacob has just finished writing bills. What steps should he take to ensure the bills reach their destination safely?

 Sam purchased a bicycle on credit. When he received his credit card statement, he noticed several charges he did not make. What should he do?