©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Identity theft

2 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Disclaimer  The purpose of this presentation is to help you better understand credit reporting and to provide general information about how you can manage your credit report so that you can get the credit you need and want.  For legal reasons, I: ► cannot discuss issues specific to your personal credit report ► cannot advise individuals about how to improve their personal credit report or credit scores ► cannot submit disputes regarding your personal credit report on your behalf  Information regarding Experian policies and processes is current as of the date of this presentation but may change.

3 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Identity theft  What is it?  What do you do if you are a victim?  And, what is being done to prevent it?

4 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Defining identity theft A broad term often used to describe many categories of fraud  New account fraud  Stolen account numbers  Check fraud  Government benefits fraud  Insurance fraud  Financial schemes  Unauthorized access to credit data  Fraudulent and inaccurate data contribution  Creation of fictitious credit files or credit header data  Credit clinic activity  Drivers license or other false identity cards

5 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. There’s no consensus about the size of the fraud problem… Global fraud losses are expected to reach $15.5 billion by the end of 2005 Meridien Research Identity theft annual losses estimated at $3.2 billion Dept. of Justice Some estimates are as high as $48 billion FTC In 2004, reported credit card fraud total approximately $4 billion worldwide 65% ($2.6b) of total credit card fraud was perpetrated in the U.S. Tower Group Ten million victims of identity theft in 2004 FTC

6 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.... But, identity fraud is declining  FTC Synovate Research – 16% decrease in three years  U.S. Department of Justice – 11% decrease from 2004 to 2005  Javelin Strategy and Research – 20% decrease in five years  FTC 2005 Report on identity theft complaints: ► True identity theft complaints dropped 45% between 2003 and 2006 ► Credit card fraud complaints dropped 18.75% between 2003 and 2005

7 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Some additional identity theft good news!  Experian is receiving fewer fraud inquiries  Fewer fraudulent accounts are being reported  Dollar losses caused by fraud are decreasing  Consumer education about fraud is increasing  Consumer awareness is growing  More victim assistance options are available  Advances are being made in fraud detection  More tools are available to consumers so they can monitor their credit reports

8 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How do criminals obtain your identifying information?  Lost or stolen credit cards  Mail theft  Shoulder surfing  Dumpster diving  Unsolicited  Pretext calling  Personnel records  Skimmers  Data breaches  Stolen computers  Breaking into parked cars

9 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Protecting yourself from fraud  Unfortunately, fraud victims often do nothing wrong  However, there are a number of common sense things you can do to minimize your risk: ► Shred documents before putting in the trash ► Provide Social Security number only when necessary ► Don’t carry unnecessary information in a purse or wallet ► Don’t leave your purse, wallet or other identifying information in your car while shopping

10 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Protecting yourself from fraud ► Conduct only secure transactions online ► Don’t respond to unsolicited s requesting personal information ► Don’t share personal information on social networking Internet sites ► Don’t give identifying information over the phone unless you initiated the call

11 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How credit reporting can help Identity theft New account fraud

12 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. The role of credit reports in new account fraud  Credit reports are accessed only when the identity thief uses stolen identifying information to apply for credit  Credit reporting can help you discover and recover from new account credit fraud  Credit reporting often prevents new account fraud by helping lenders identify fraudulent applications

13 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Experian’s fraud prevention tools  Lenders utilize a number of tools from Experian to identify and stop fraudulent applications: ► Authentication Services ► Fraud Shield SM ► Precise ID SM ► Hunter SM

14 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How can you discover new account fraud?  Credit reports  Calls from unknown creditors or collection agencies  Get your credit report annually  Subscribe to a credit monitoring service

15 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Take immediate action Four key steps Notify law enforcement Make an online report with the Federal Trade Commission at Contact credit reporting companies Contact sources reporting fraudulent information

16 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Do you think you may be a victim?  Contact any one of three credit reporting companies online or through automated telephone system  Request an initial security alert ► Asks lender to take additional precautions before granting credit ► Can include an unverified telephone number ► Automatically deleted after 90 days

17 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Do you think you may be a victim?  Consumer is automatically opted-out of preapproved credit offer lists for six months  Free credit report is available to the consumer  Fraud recovery and assistance information is provided  Request for the alert is shared with the other national credit reporting companies

18 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Found evidence of fraud in your credit report? Next steps  Consumer initiates investigation through Experian with the information source  Consumer reporting company provides source contact information ► Consumer should contact source directly as well ► Source may require completion of fraud affidavit or other documentation as part of investigation

19 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Next step Add a seven-year victim statement  Extended fraud victim statement can be added ► Consumer must provide identity theft report ► Asks lenders to call before granting credit ► Shared with other national credit reporting companies ► Automatically deleted after seven years  Two additional reports may be requested free of charge within 12 months to monitor for fraudulent activity

20 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Summary Experian’s fraud alerts  Initial security alert ► Reason to believe he or she might be a fraud victim ► Alerts creditors that the consumer recently has been victimized ► Remains 90 days  Extended fraud victim alert ► Consumer may submit a valid identity theft report and add an extended alert to warn creditors they have been victimized ► May include two telephone numbers ► Remains seven years

21 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Summary Experian’s fraud alerts  Active duty alert ► New alert for members of the U.S. military who are on active duty ► Helps protect them from potential fraud and identity theft ► Remains 12 months

22 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Additional fraud victim services Security freezes  Consumers may place a security freeze on their credit report ► A security freeze prevents a consumer’s credit information from being accessed unless they have an existing relationship with the business ► Consumers must plan ahead before applying for new credit or services if their credit file is frozen

23 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How do you freeze your credit file?  Consumers must request a security freeze from each credit reporting agency separately  Process for placing a freeze varies by state and for each credit reporting company  In general, freezes can be placed with Experian by: ► Accessing ► Writing to Experian and submitting all of the required identification information  Certain state laws contain legislation calling for special requirements such as toll free numbers, freezes for minors, overnight mail and expedited processing times

24 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How do you remove a freeze?  Process for removing a freeze varies by state and for each credit reporting company  Consumers must use PIN provided by the credit reporting agency to temporarily or permanently remove a freeze before applying for new credit  In general, freezes can be temporarily or permanently removed with Experian by: ► Accessing ► Calling EXPERIAN ► Writing to Experian and submitting all of the required identification information ► Freezes can be temporarily removed for a certain time frame or to be accessed only by a specified creditor

25 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How much does it cost to freeze my file?  Freeze laws vary by state in terms of fees, age allowances and methods of placement and removal  Residents of states without file freezing legislation can place or remove a freeze on their file for a $10 fee  Security freezes are provided at no charge to fraud victims  Prices for placing or removing a freeze vary by state for non-victims

26 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. The battle cannot be won in isolation  Partnership is the key to stopping identity theft: ► National credit reporting agencies ► Credit grantors ► Data providers ► Law enforcement ► Government agencies

27 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Free annual FACT Act report ►  Experian ► ● Ask Experian ● Credit education ● Sample credit report ► ►  Education partners ► ► Resources

28 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.