Protecting Yourself from
Identity Theft
and Financial Fraud
State of Oregon Division of Finance and Corporate Securities
Eric Kleinman
Investor Information Coordinator(503) 947-7492
State of Oregon Division of Financeand Corporate Securities
What We Will Cover Today
Oregon’s Financial Fraud Agencies
Common misconceptions about fraud
ID Theft and Self Defense
What to do if you become a victim
Rules to Remember
Resources You Can Use
The mission of the Division of Finance and Corporate Securities (DFCS):
“To encourage the widest possible range of financial services, products,
and information for Oregonians, delivered in a safe, sound, and fraud-
free manner.”
State of Oregon Financial Fraud Agencies
Financial Fraud Agencies
Registers all securities offerings
Licenses brokerage and investment advisory firms and their salespeople
Investigates violations of securities laws
The Division of Finance and Corporate Securities:
The Oregon Department of Justice Consumer Fraud Division:
To protect Oregonians from fraud and illegal activities designed to
deny them of their property.
State of Oregon Financial Fraud Agencies
Financial Fraud Agencies
Operates the Consumer Fraud Hotline
Informs Oregonians about consumer laws
Works with other state, local, and federal agencies to prevent fraud
The Dept. of Justice Consumer Fraud Division:
Financial Fraud Misconceptions
Crimes committed for financial gain that depend upon deception and fraud rather than violence or physical force.
Definition of economic crime:
Financial Fraud Misconceptions
Identity Theft is the fastest growing crime in the United States, with as many as 1.9 million new victims each year.
Oregon Ranks 9th Nationally in ID Theft
Financial Fraud Misconceptions
18 – 39 51%
40 – 59 36%
60 and over 13%
Age of Oregon ID Theft Victims for 2005:
Financial Fraud Misconceptions
The average bank robber takes $3,500 and serves 5 – 7 years upon conviction
The average ID thief takes $23,000 and serves 0 time upon conviction
Financial Fraud Misconceptions
Americans lose $300 billion every year to financial fraud of all types.
Almost $9 billion of that is from ID Theft.
Cost of fraud:
Financial Fraud Misconceptions
More than 1/3 of ID Theft is perpetrated by a friend, family member, co-worker, or caregiver
It’s impossible to completely prevent odds
You can reduce the chances of being a victim
ID Theft and Self Defense
Increase of online personal information
Illegal access of credit bureau data
Illegal sale of information by employees
“Pretexting” Scams
Theft of information from mailbox, wallet, purse, or trash receptacles
“Phishing” scams
How Do ID Thieves Get Our Information?
ID Theft and Self Defense
Account Takeover: Assuming an existing credit relationship
What Do ID Thieves Do With It?
ID Theft Manifests Primarily in Two Ways:
Fraudulent Application: Establishing a new credit relationship
ID Theft and Self Defense
Open credit card accounts in your name
Establish utility and wireless service
Take out loans in your name
Apply for employment in your name
Rent apartments/buy real estate
Open securities trading accounts
File Bankruptcy in your name
ID Theft and Self Defense
Monitor all of your monthly statements
Ask vendors how your information is used
Take steps to protect your mail
How To Minimize Your Risk
ID Theft and Self Defense
Shred unneeded receipts, bills, and offers
Never put account numbers on envelopes
Beware of high risk “favors”: Checks, credit cards, ID Cards, e-mail access
How To Minimize Your Risk
ID Theft and Self Defense
Never throw away ATM receipts, credit card, or bank statements without shredding them first
Never give your credit card info over the phone unless you initiated the call
Reconcile your checking account regularly
How To Minimize Your Risk
ID Theft and Self Defense
Review your credit report at least three times per year
Never throw out prescription bottles without removing your information
Beware of people calling themselves “Senior Specialists” or “Medicare Specialists”
How To Minimize Your Risk
ID Theft and Self Defense
He was paid $100 to get a Virginia state ID card for Ahmed Alghamdi.
Who Is Victor Lopez-Flores?
ID Theft and Self Defense
What happened to Mr. Alghamdi?
He died on September 11, 2001 when the plane he helped hijack crashed into the North Tower of the World Trade Center complex.
ID Theft and Self Defense
What happened to Mr. Lopez-Flores?
By November 20, 2001—just 9 weeks after the attacks—Victor had been arrested, tried, convicted, sentenced, and incarcerated in federal prison.
What to do if you become a victim
Call the Federal Trade Commission at 1-877-IDTHEFT for assistance
Contact the fraud department of all three credit reporting bureaus
Report it to your local police and get a copy of the police report
Don’t be embarrassed to report it
Don’t delay in reporting it
I If You Think You May Have Been A Victim:
What to do if you become a victim
Keep copies of all correspondence
For charges/debits on existing accounts, ask for the agency’s Fraud Dispute Forms
For new unauthorized accounts, ask if the agency accepts the ID Theft Affidavit
Be sure to dispute any fraudulent activity already being reported on your credit report
I If You Think You May Have Been A Victim:
What to do if you become a victim
An Initial Fraud Alert stays on your account for 90 days
Use this if your wallet or purse has been stolen or if you otherwise think you may be in imminent danger of having your identity stolen
Placing an Initial Fraud Alert entitles you to one free credit report from each of the 3 credit agencies
What to do if you become a victim
An Extended Fraud Alert stays on your account for seven years
Use this if you are a victim of ID Theft and can provide an Identity Theft Report to the credit reporting agencies
Placing an Extended Fraud Alert entitles you to 2 free credit reports within 12 months, and removes you from pre-approved offers for 5 years
What to do if you become a victim
For financial accounts:
Close the accounts immediately
When you open new accounts, place passwords on them
Avoid using common sequences like your mother’s maiden name, birthdates, the last 4 digits of your social security number, or your phone number
What to do if you become a victim
For your social security number:
Place an Initial Fraud Alert on your accounts with each of the three major credit reporting agencies
An alert can help stop someone from opening new credit accounts in your name
What to do if you become a victim
For your drivers license or other government-issued identification:
Contact the agency that issued the identification and notify them of the theft/loss
Follow the agency’s procedure for replacement
Ask the agency to flag your account to make it more difficult for others to get duplicates
What to do if you become a victim
Once resolved, it usually stays resolved
Review your credit report every 3 months for a year after losing your information
Continue to review annually through your free credit reports
Resources
Difference between credit report and credit score
www.annualcreditreport.com
What The Fair and Accurate Credit Transaction Act (FACTA) Does For You:
Fraud Alerts can be placed on your accounts
You are entitled to one free credit report from each of the 3 credit bureaus each year
What to do if you become a victim
Stay alert for signs of ID Theft:
Failing to receive bills or other mail
Receiving credit cards you didn’t apply for
Being denied credit or offered high rates for no apparent reason
Getting calls or letters from debt collectors about merchandise or services you didn’t order
Rules to Remember
Salespeople may use misleading titles
Only share information when you have initialed contact
Always closely review account statements
Don’t think that it only happens to others
Rules to Remember
It’s OK to be rude! You can hang up, or leave the office if you’re uncomfortable.
Always stay in charge: It’s YOUR identity!
Never judge a person’s integrity by how they look, sound, or dress.
Resources
Federal Trade Commission600 Pennsylvania Avenue NWWashington, DC 20580
1-877-IDTHEFT
www.consumer.gov/idtheft
Resources
Division of Finance and Corporate Securities350 Winter Street NE, Room 410PO Box 14480Salem, OR 97301main number: (503) 378-4140toll free number: (866) [email protected]
Resources
Oregon Department of Justice1162 Court Street NESalem, OR 97301(503) 378-4400(877) [email protected]
Resources
Securities and Exchange Commission450 Fifth Street, NWWashington DC, 20549(202) 942-7040(800) [email protected]
Resources
National Association of Securities DealersTwo Union Square601 Union StreetSeattle, WA, 98101(206) 624-0790(800) 289-9999www.nasdr.com
Resources
North American Securities Administrators Association10 G Street NESuite 710Washington DC 20002(202) [email protected]
Resources
Federal Reserve Bank Financial Literacy Sitewww.FederalReserveEducation.org
Resources
Social Security Administration Fraud Hotline1-800-269-0271
Resources
US Postal Inspector Service1-800-275-8777www.usps.gov
Resources
Equifax1-800-685-1111www.equifax.com
PO Box 740241Atlanta, Georgia 30374-0241
Resources
Experian1-800-311-4769www.experian.com
PO Box 9532Allen, Texas 75013
Resources
TransUnion1-800-888-4213www.transunion.com
Fraud Victim Assistance DivisionPO Box 6790Fullerton, California 92834-6790
Resources
Tom MartinoConsumer Advocate/Radio Personality
www.troubleshooter.com
Resources
Clark HowardConsumer Advocate/Radio Personality
www.clarkhoward.com
