1. IDENTITY Theft
Financial Literacy Identity Theft

2. Lesson Objectives
Students will be able to recognize signs of identity theft Students will learn the short and long-term consequences and risks of identity theft Students will learn the difference between pretexting and phishing Students will learn strategies for avoiding and dealing with identity theft
Financial Literacy Identity Theft

3. Learning Outcomes
Students will learn to recognize the signs of identity theft, possible consequences, and strategies for minimizing risk.
Financial Literacy Identity Theft

4. What is Identity Theft?

5. Identity Theft Statistics
Identity theft is the fastest growing crime in America
Washington State ranks 8th in the nation for number of identity theft crimes committed per capita
Approximately 7 million people became victims of identity theft last year.
That equals:
19,178 / day
799 / hour
13.3 / minute
Financial Literacy Identity Theft

6. Identity Theft Statistics
A 2003 study found that there was a 79% increase in identity theft from the year before (2002)
The US Secret Service has estimated that consumers nationwide lose $745 million to identity theft each year
The average victim spends 606 hours trying to clear his or her credit records
Financial Literacy Identity Theft

7. Identity Theft Statistics
The Federal Trade Commission estimates that identity theft costs the average victim $1,400
Identity theft remains the #1 concern among consumers who contact the Federal Trade Commission
Approximately 85% of the
victims who found out about
the identity theft was due to
monitoring their credit report
Financial Literacy Identity Theft

8. How does it occur?

9. Identity Theft Occurs When
Someone uses a combination of your:
Name and address
Date of birth
Social Security Number
Bank or credit card account number
Driver’s license #
Mother’s maiden name
AND does this without your knowledge or permission
AND does this to commit fraud or other crimes
Financial Literacy Identity Theft

10. WAYS Identity Theft is Used
42% Obtains Credit Cards in your name or makes charges on your existing accounts 20% Obtains cell phone equipment or services in your name 13% Forges checks, makes unauthorized Electronic Funds Transfers, or open bank accounts in your name 9% Gets a job in your name 7% Obtains personal, student, car and/or mortgage loans in your name 2% Commits crimes in your name 2% Gets medical services in your name 1% Gets Internet services or sends s in your name 1% Leases an apartment or house in your name .5% Files bankruptcy in your name
Financial Literacy Identity Theft

11. Identity Theft Risks

12. What are the costs of ID Theft?
Costs to consumers
Lost time
Approximately $1,400 in out of pocket expenses
Credit: problems buying houses and/or cars
False arrests
Financial Literacy Identity Theft

13. Stealing Information From You
Your wallet or purse
Your home or car
Your mail (incoming or
outgoing)
Your garbage or recycling
Your old computer
Financial Literacy Identity Theft

14. Stealing Information About You From Others
where you work where you go to school where you get medical services where you shop where you bank
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 8

15. Pretexting & Phishing

16. Pretexting and Phishing
Obtaining information about a consumer under false pretenses
Phishing:
Tricking you into disclosing information over the phone or on the Internet
Financial Literacy Identity Theft

17. Phishing
This is an example of “phishing” – Last month, I received an – at my FTC address, no less – from someone claiming to be US Bank. – This is the attachment to the . It is a total scam.
One consumer in Portland received a similar and believed it was authentic because it had US Bank’s logo and stated that it was from US Bank’s accounts department. When she clicked on the full Internet address, the consumer actually ended up at the scam artist’s web site. The web site asked the consumer to give her social security number, her mother’s maiden name, and her date of birth – and she did. With that information, the crooks had all they needed to access her accounts. The consumer ended up losing over $2,000. Actually, her bank is the one out the $2,000.
Here’s the deal: The scam artists don’t know that you’re a US Bank customer – they just send out the to thousands or even millions of addresses, hoping that some consumers who are US Bank customers will take the bait – which is why it’s called “phishing.”
Link to video
Financial Literacy Identity Theft

18. Phishing Complete the Scams and Schemes: Phishing Emails activity.
Financial Literacy Identity Theft

19. Consequences & minimizing Risk

20. Consequences of Identity Theft
Victim may not discover for months or years
Victim saddled with bad credit report
Victim may be denied new credit, loans, mortgages, utility service, or employment
Where criminal record created in victim’s name, may even spend time in jail
Victims’ problems caused by ID theft:
-- denied new credit, have credit card rejected at point of sale, credit card closed (20%) or charged higher interest rates
-- harassed by debt collector (20%)
-- turned down for loans (18%) or higher rates
-- turned down for bank account, have checks rejected, bad check list (13%)
-- turned down for insurance (8%) or higher rates
-- utility service cut off or denied (6%)
Source: FTC survey
Financial Literacy Identity Theft

21. How to Minimize Risk Don’t carry more information than you need
Guard personal information
Order and read copies of credit reports
Review account statements when they arrive
Don’t give others more information than needed
Financial Literacy Identity Theft

22. How to Minimize Risk
Read your Social Security Administration annual statement (will receive once you pay into SSA)
Use passwords on accounts and home computers
Opt out of sharing information
Ask yourself whether you really need all the information in your wallet or purse.
Don’t leave information laying around your house where it can be seen or taken by others who may come into your house. Shred or dispose carefully of financial information. Don’t put payments containing personal checks in an unsecured mailbox and when you order new checks, pick them up at the bank.
Ask businesses, doctors, banks why they need information you may be uncomfortable providing. If you do decide to provide it, ask about how it will be safeguarded and who else will get it.
Reading your SSA annual statement will alert you if someone else is using your SSN on the job.
Use strong passwords – not birthdate or mother’s maiden name
Take action if anything seems strange, such as:
-- not receiving your monthly billing statement or receiving a credit card you didn’t apply for
-- denial of credit for no apparent reason
-- receiving calls or letters from debt collectors or businesses about merchandise or services you didn’t buy
OPTING OUT – GO TO NEXT SLIDE
Financial Literacy Identity Theft

23. What can I do?

24. What Should a Victim Do? Act quickly Fraud alert with credit bureau
Credit Bureau: agency that provides consumers with their credit history and assigns a credit score
Close accounts
File police report – and get a copy
Federal privacy laws give you the right to opt out of some sharing (but not all)
Financial Literacy Identity Theft

25. Make sure to call, AND follow-up in writing
Credit Bureaus
Equifax, Inc.
to report fraud:
Experian
to report fraud: EXPERIAN
TransUnion
to report fraud:
Make sure to call, AND follow-up in writing
Financial Literacy Identity Theft

26. Top Ten Tips Use a shredder – preferably cross-cut
Use a locking mailbox
Don’t put outgoing mail in your mailbox
Pick up check orders at bank
Guard your SSN
Do not put your SSN on your checks
Do not carry your SSN card in your wallet (keep it safe at home)
Financial Literacy Identity Theft

27. Top Ten Tips (cont’d) Use passwords on cell phones and computers
Read your billing statements
Check your credit report
Annualcreditreport.com – Free
Freecreditreport.com – not free
Opt out of sharing information
Don’t give information over the phone unless you initiated contact
Financial Literacy Identity Theft

28. Social Media and Identity Theft
Complete the Friend or Foe activity.
Financial Literacy Identity Theft

29. Complete the Lesson…
Now watch Identity Theft: The Michelle Brown Story and complete the Identity Theft: The Michelle Brown Analysis activity.
Financial Literacy Identity Theft