1. MoneyCounts: A Financial Literacy Series
Identity Theft
11-A Grange Building
University Park, PA 16802
financialliteracy.psu.edu

2. Description
Identity theft happens when someone uses your legal name, credit card number, social security number, passwords or pins of your financial accounts to make purchases, get cash or commit fraud in your name.
It is when your personal and financial information gets into the wrong hands and turns your financial life into a living nightmare.

3. Learning Outcome Understand what identity theft is and how it happens
Understand why it is a problem and how to protect yourself
Recognize the warning signs of identity theft
Reduce the risk of becoming an identity theft victim
Understand what to do if you fall a victim of identity theft

4. Every 29 sec, 90 Million Florida age of 19 Statistics
a thief steals someone’s identity, opens accounts in the victim’s name, and goes on a buying spree
- CBSnews.com
of American become victims to identity theft each year
- Federal Trade Commission (FTC)
Florida
8% of all identity theft cases is impacting children under the
- CBSnews.com
is #1 with identity theft cases in the nation – targeting senior citizens
- CBSnews.com
age of 19

5. What data to protect? Full legal name, Birthdate, Mother’s maiden name
Address, Hometown, Phone number
Social Security Number, Graduation date, PIN#
Credit card numbers (expiration date, Security code #)
Social media, Cyber space, and passwords

6. Theft can happen anywhere!
Know how identity theft happens in person
Rummaging through your trash or mailbox
Breaking into your home
Stealing your purse, wallet or cell phone
Changing your mailing address – diverting your bills and mail
Shoulder surfing

7. Theft can happen anywhere!
Know how identity theft happens online
Phishing – Posing as a legitimate business, s, pop- up messages
Hacking your computer – From a remote location while you are on your computer
Skimming – Using a magnetic card reader to steal your Card # while using ATM or keypad in a store
Pharming – Redirecting your internet domain through technical means
Spamming – Unsolicited s to multiple mailing lists
Spoofing – Creating a replica of a legitimate web page

8. What is phishing?
Phishing (pronounced: fishing) is an online-fraud technique that is used by criminals asking you to click on a link to lure you into disclosing your personal information, which then enables the thief to:
Apply for and get credit in your name
Empty your bank account and charge expenses to the limit of your credit cards
Remove money from your accounts
Use a copy of your debit card to withdraw your money from anywhere

9. What is skimming?
When a credit card is skimmed, data on the card (i.e., account number) is electronically transmitted or stored – stealing your card information!
The credit card information can then be encoded onto a lost, stolen, or counterfeit credit card and used anywhere
Examples:
A collusive store employee completes a valid sale, and then captures a second (unauthorized) swipe covertly on a portable device before returning the card to the cardholder.
A skimming device is added to the front of an ATM or gas pump and captures the credit card information during a valid transaction. In many cases a cover camera is also set up to capture the card holder’s personal identification (PIN) number.

10. How will I know if my identity is compromised?
Pay close attention to your bills and financial account statements!
Watch for purchases you did not make, withdrawals you did not initiate, a change of your address that did not happen, missing bills in the mail, or medical charges you did not incur 
You definitely need to be alarmed if:
You get denied credit for no apparent reason of your making
You are contacted by debt/credit collectors or stores requesting payments for purchases you did not make

11. Keep tabs on your credit
Get a free copy every 12 months from the 3 nationwide credit reporting agencies
Annualcreditreport.com
Call
You can get all three at the same time or one every 4 months

12. How can I protect my identity from theft?

13. Prevention is KEY! Be vigilant! Be aware!
Be aware of your surrounding during financial transactions
Carry only necessary to-go items in your purse or wallet (especially when traveling)
Secure your Social Security Number. Never carry it in your wallet! Memorize the number and use cautiously on the phone or in public
Initiate financial transactions yourself. Verify sources before you accept invitations for opening credits

14. Having the right tools!
Use a cross shredder! – Dispose in various trash bags
Shred all bills except the last one – Keep in a safe place
Shred bank statements – You can always get copies online if needed
Avoid receiving banking information in your mail box – Order and pick up checks at your Bank
Keep a (fire-proof) safe deposit box for your important personal documents – Passport, tax copies, birth certificate, marriage certificate, deeds, etc.,
Go Green!

15. Protect online information
Use different password for different electronic devices. Use hard-to-guess password (Don’t keep your password under your keyboard!)
Use a firewall to shield your computer from hackers (antivirus and other types of security protection software)
Wipe out your old hard drive before disposing your computer
Log out and close your browser afterward when using computer. Avoid public computers to check personal data or financial information
Never open a link in an unsolicited or pop-up message
Avoid being skimmed! Watch for tapes on the ATM machine. Use indoor devices (more difficult to be tempered)

16. Protect cell phone Protect your cell phone with a password
Watch your GPS device! Do not leave on the window shield (home address, telephone number, etc.,)
Protect your un-opened mail! Do not leave in the car

17. Active duty alert!
Service members who deploy can place an active duty alert on their credit reports to help minimize their risk of identity theft
An active duty alert on a credit report means businesses have to take extra steps before granting credit in your name. Active duty alerts last for 1 year, and can be renewed to match the period of deployment.
Provide proof of identity, like a government-issued identity card, driver’s license, military identification, birth certificate, or passport. The CRA you notify must contact the others.
The credit reporting agencies will take your name off their marketing list for prescreened credit card offers for 2 years, unless you ask them to add you back onto the list.

18. Opting out
Consider opting out of prescreened offers of credit and insurance by mail.
You can opt out for 5 years:
Call toll-free OPT-OUT ( ) or visit The phone number and website are operated by the major consumer reporting agencies
To opt out permanently:
You may begin the permanent Opt-Out process online at To complete your request, you must return the signed Permanent Opt-Out Election form, which will be provided after you initiate your online request.
The 3 nationwide credit reporting agencies operate the phone number and website.

19. Protect yourself when traveling
Use credit cards carefully and don’t leave your receipts.
Use secured wallet and keep personal items near your heart.
Be careful when using paper checks.
Watch for your valuables.
Be carful when using daily technologies.
Protect your paper mail.

20. Theft targets Children are a new target (8% of identity theft cases)
Check their credit reports, protect their Social Security Number and personal data
Government Benefits
Social security payments, Tax refunds, Medicaid, Unemployment, Disability benefits
Student financial aid – PIN# - FAFSA - NSLDS
Medical Records
Use of medical care under a stolen identity
Avert payment
Cause confusion with medical treatment
Health insurance claims

21. Protect family and children
You or your children may…
Be turned down for government benefits because the benefits are being paid to another account using your child’s Social Security number
Get a notice from the IRS saying the child didn’t pay income taxes, or that the child’s Social Security number was used on another tax return
Get collection calls or bills for products or services you didn’t purchase

22. Are you a victim? What should you do?1
File a police report 2
Contact the three Credit Reporting Agencies
Equifax
Experian
TransUnion 3
Contact your bank and other financial institutions 4
Contact the Federal Trade Commission (FTC) at Consumer Information: Identity Theft

23. Supplemental information

24. MoneyCounts: A Financial Literacy Series
Comments and questions
11A Grange Building
University Park, PA 16802
financialliteracy.psu.edu