IDENTITY THEFT Tom Behn Willie Johnson Mike Kellen

Who is the easiest target? YOU! Teenagers and young adults Most vulnerable due to lack of established credit Less likely to check credit records Many do not find out until well after theft has occurred

Identity Theft Definition History Types Government Action Statistics Prevention and Recovery

What is Identity Theft? Identity theft occurs when someone else uses your personal information to assume your identity. Can be used to commit fraud or other crimes Examples: Your name Social Security number Credit card number e=related e=related

History of Identity Theft

History Early History I.D. Theft as been around for as long as there has been identities to steal. The old, common practice was to kill a person and just assume their name.

History Modern History Phone Scams Dumpster Diving Fraudulent websites

Types of Identity Theft

Types Character Someone can commit a crime in your name Social Security Number Someone uses your number to gain a job You pay their income taxes Medical Someone gaining medical insurance in your name. False information could leave you helpless.

Types Driver’s License Someone commits traffic violations in your name. When they fail to appear in court, warrants are issued for you. Credit Someone uses your credit to obtain loans or goods, and leaves you with the bill.

How are they getting your information? Dumpster Diving Not actually a Crime Phone Scams Phishing

Sources of Identity Theft

Bank Statement

Credit or Debit Card (Front)

Credit or Debit Card (Back) This will vary depending on issuer of Credit or Debit card

Personal Checks

Driver’s License

Social Security Card

How secure is your computer? Phishing Using Phony websites and installing spyware to track your every move. Be careful where you enter your information!

Government Action on Identity Theft

Previous Legislation Identity Theft Victims Assistance Act of 2002 Nation Wide Process for victims to obtain records to facilitate correction of records, and catch thieves. Expanded the Role of the Federal Coordinating Committee Expanded the Statute of Limitations for the Fair Credit Reporting Act to five years, up from two. Required agencies to block reporting of bad credit.

Previous Legislation Identity Theft Prevention Act of 2001 Increased the penalties for anyone who commits: “Aggravated Identity Theft” Purpose of a terrorist act or serious federal offence Including: Immigration violations and false citizenships Made Identity Theft easier to prove Increased term of imprisonment for ordinary Identity Theft

Statistics of Identity Theft

Breakdown of Types of ID Theft

Age Group for Identity Theft

Monetary Losses $221 billion a year are lost worldwide Victims lose an average of $1,800 to $14,000 in wages when dealing with ID theft Victims spend an average of $850 to $1400 in expenses recovering

Uses of Stolen Information 33% of victims report fraud to checking account 66% report a new credit card account has been opened in their name 28% report a new cell phone account has been activated 12% report having warrants issued in their name for crimes they did not commit

Prevention and Recovery of Identity Theft

3 “D’s” of Identity Theft DETER Prevent thieves from accessing your personal information DETECT Discover fraud occurring before serious damage is done DEFEND Fix the accounts and information thieves have stolen

Deter/Prevention Personal Information Finances Physical Documents Internet

Deter/Prevention Personal Information “Need to know” approach Ask Why and Who Limited personal information that is “out there”

Deter/Prevention Finances Less information on personal checks Convert bill paying to automatic deductions online Use Cash If using “plastic,” use Credit Card. Debit Cards are tied into checking accounts

Deter/Prevention Physical Documents Shred all documents with personal information Have photocopies of all your important cards and documents United States Postal Service Use the post office to mail bills and important documents P.O. Boxes are securest mailboxes.

Deter/Prevention Internet Know your friends AND enemies Facebook, MySpace, Dating Sights 43% of victims know who stolen their identity Do not make passwords and PIN numbers obvious Do NOT use birthdays, anniversaries, social security number, etc

Passwords 73% use bank passwords EVERYWHERE 65% use a bank user ID on another website Have three “families” of passwords Financial sites (banks, stock market) Personal Information ( , FAFSA, Facebook) Generic log-ins (game sites, website memberships) Carefully consider on-line shopping sites when selecting passwords. They store credit card information Use AT LEAST 8 characters Random Capitalization

Detect/Monitor Know when bills and statements usually come Review thoroughly Request your free credit reports yearly Equifax, Experian and Trans Union One every 4 months Social Security number is not monitored on your credit reports

Detect/Monitor When encountering “pop-ups” from websites, if they ask you to verify your personal information, do NOT fill out the form Most well-known affiliates will ask for this information BEFORE the transaction is completed YOU can do the best job monitoring your ID, not insurance companies i.e. Lifelock

Defend/Recovery File a police report Some credit agency require a hard copy Prevents payment resulting from fraudulent charges Copy needed to file an “extended fraud alert” on credit report Close all tampered or new accounts opened For credit cards, notify in writing. Collection agencies need written proof

Defend/Recovery Notify the credit reporting agencies “Extended fraud alert” Monitors you credit reports Agencies call when new accounts are opened without your approval “Security Freeze” File a complaint with the FTC List of previous offenders Know companies that may have history of fraud

Recovery Numbers Time to Recover 3 hours to 240+ days Average is about 2 weeks This is spent over a span of 4 months to 1 year

Are You at Risk for Identity Theft? Test Your “Identity Quotient” I receive pre-approved credit cards, etc every week (5) I do NOT shred the pre-approved offers (5) I carry my Social Security card with me (10) I use a computer and do NOT have update anti-virus, anti-spyware and firewall protection (must have all 3) (10) I do NOT ALWAYS lock my house/apartment/room (10) I have NOT ordered a copy of my credit report in the last 2 years (20) I use my personal mailbox to send letters (10)

Are You at Risk for Identity Theft? Test Your “Identity Quotient” I do NOT have a P.O. Box or locked mailbox (5) I throw away old credit or debit cards WITHOUT shredding them up (5) I do NOT shred bank or credit card statements up (10) I use an ATM WITHOUT checking for signs of tampering (5) I provide my SSN WITHOUT asking why it is need (for example, on applications) (10) I leave my purse or wallet in the car (10)

Are You at Risk for Identity Theft? Test Your “Identity Quotient” I have my Drivers License number or SSN printed on my checks (10) I believe my trash is “secure.” (10) I do NOT look at my monthly statement of all major bills and financial statement FOR FRAUD (This includes bank, credit card, cell phone, utilities and investments) (20)

Results 0-49 points = You have a high “ID theft IQ,” Congratulations points = Your chance of being a victim are about average points = You are at high-risk for ID theft Bottom line, most of us are at risk for ID theft