IDENTITY THEFT

Awareness and Prevention

What is Identity Theft?

• IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information

• Have you or a member of your family been a victim of Identity Theft?

Identity Theft Data(Javelin Strategy and Research 2012 Identity Fraud Survey Report)

2009 2010 2012

# of US Adult Victims

13.9 million 10.2 million 11.6 million

Where you go relates to Fraud

What is Personal Information?

• Name• Address and Telephone Number• Social Security number• Driver’s license number• Bank account numbers• Credit card numbers• Passwords• Bills

How Do Identity Thieves Acquire Your Personal Identification?

• Wallet/Purse Loss or Theft - Information is taken from a lost or stolen wallet/purse (most common method).

• Mail and Phones - Information is taken from mailboxes, a change of address form is completed, or personal information is solicited by phone.

• “Dumpster Diving” - Personal information is discarded carelessly either at home or by businesses and thieves remove it from the trash.

• “Insider Access” - Dishonest employees steal the information and either sell it or use it.

• Internet - Personal data taken off the Internet• Credit Reports – A credit report containing personal

information may be obtained fraudulently.

How is the Information Used?

• To apply for a new driver’s license• To open new bank accounts• To apply for credit cards or store credit

accounts• To obtain cash with bank cards• To get a job• To rent an apartment• To make retail purchases

Preventing Identity Theft

Credit Reports

How Theft Occurs:• Thief fraudulently orders a credit report.

– Credit Reports – include all the accounts a person has, social security number, & personal information.

Prevention:• Check credit report once per year.• Don’t leave reports lying around.

Preventing Identity Theft

Mail

How Theft Occurs:• Thief steals mail to learn account numbers

and personal information.

Prevention:• Deposit outgoing mail in post office

collection boxes not unsecured mailboxes.• Promptly remove mail from mailboxes.• If on vacation, put a hold on mail.

Preventing Identity Theft

Wallets and PursesHow Theft Occurs:• Thief steals a wallet or pocketbook

containing a wealth of personal information.Prevention:• Don’t leave it in plain site.• Don’t hang from chair at public place.• Use a purse which closes securely.• Carry only what is absolutely needed.

Preventing Identity Theft

BillsHow Theft Occurs:• A thief may steal bills containing consumer’s

name, address, phone number, bank or credit account numbers, or social security.

• May use information to open new accounts.Prevention:• Don’t leave statements lying around.• Pay attention to billing cycles and follow up

if bill does not arrive on time.

Preventing Identity Theft

PasswordsHow Theft Occurs:• If a thief has access to passwords, he/she

can access accounts, send messages, and sell or purchase items.

Prevention:• Don’t give password to anyone.• Don’t write passwords down where others

may find them.• Create unique passwords using a

combination of numbers and letters.

Preventing Identity Theft

Work Records

How Theft Occurs:• A thief who has access to work records may

have a person’s personal information, social security numbers, or bank information.

Prevention:• Ensure personal records are locked securely

with limited access by employees.

Preventing Identity Theft

Credit CardsHow Theft Occurs:• A thief may activate credit cards using pre-

approved credit card offers and have the statements sent to a different address.

Prevention:• Shred any credit card offers received and not

used.• Cut up any pre-approved credit cards not

used.

Preventing Identity Theft

ChecksHow Theft Occurs:• If a thief has a person’s bank account and

routing number, he/she may create fake checks, withdraw money, or access savings accounts.

Prevention:• Don’t leave statements lying around.• Use passwords.• Don’t have checks mailed home. Pick them

up at the bank.

Preventing Identity Theft

Social Security NumberHow Theft Occurs:• A social security number is the key to a

person’s identity. It opens new accounts, obtain driver’s license, file bankruptcy, etc.

Prevention:• Never give our social security number.• Ask for alternate number on driver’s license,

insurance cards, and other materials.• Do not carry social security card unless

necessary.

Preventing Identity Theft

ATM, Credit, and Debit Cards

How Theft Occurs:• A thief may withdraw money with both an

ATM card and PIN number.• Credit and debit cards are easy to use

because most stores do not compare cards with another form of identification.

– Can easily be used to purchase merchandise over the phone or internet.

Preventing Identity TheftPrevention:• Don’t leave cards lying around.• Carry only those which will be used.• Use debit cards which require a PIN number.

– Do not write PIN number down in same place debit card is kept.

• Carry cards in separate holder from wallet.• Sign back of cards stating “Please see I.D.”

Preventing Identity TheftPrevention cont.:• Have a list of all cards and account numbers.• Don’t give out account number unless making

a purchase.• Keep track of all receipts.• Destroy papers with card numbers on them.• Check statements for unauthorized charges.

Why People Shop Online and RisksWhy• Order products from around the world.• Easily research items and compare prices.• Can be done at any time in the convenience

of own home.Risks• Personal information including credit card

numbers, social security number, financial records, and bank numbers can be used.

Safety Tips for Shopping Online• Know the real deal

• Get all details before buying including prices, delivery time, warranty information, and return policies. Research the retailler

• Look for clues about security• Make sure the browser states “https” or “shttp”

indicating it is secure.

• Use a credit card• Credit cards are the safest way because a person has

the legal right to dispute charges.

• Keep proof of transaction

IF You are A Victim of Identity Theft: 1. Act immediately!

2. Keep a detailed record of correspondence and phone records.

3. Contact the three major credit bureaus and request a “fraud alert.”

1. Follow with a letter sent by certified mail.

4. Close all accounts which have been tampered with or opened fraudulently.

5. File a police report.

6. File a complaint with the Federal Trade Commission.

What is Your Liability? • Truth in Lending Act limits liability for

unauthorized charges to $50.00 per card.– A letter must be received within 60 days of the first bill

containing the error.– The dispute must be resolved within 90 days of the creditor

receiving the letter.

• The Electronic Funds Transfer Act provides protection.– The amount a person is liable depends upon how

quickly the loss is reported.• Within two days is a maximum of $50.00.• Within sixty days is a maximum of $500.00.• After sixty days a person may be liable for everything.

YOU Are Especially VulnerableWhy?• Young consumers, 18-29 years of age are the #1 target

for identity thieves.• Teens are less likely to check their credit card

statements• Limited credit records that can be monitored

Consequences• Thief actually develops a credit history under your name.• Most teens don’t discover they are victims until they

apply for a driver’s license and learn that one has already been issued under their SSN or when they apply for a loan

Identity Theft ScenariosWhat do you recommend?

Bethany was awake and shopping online at 2:00 am. She purchased a sweater from a website she had never been on before (it was a great deal) What can she do to ensure her identity was protected while making this purchase?

Identity Theft ScenariosWhat do you recommend?

Jacob is working on his taxes and needs to run a quick errand. His papers are spread out on the dining room table. What should he do to protect this sensitive financial and personal information.

Identity Theft ScenariosWhat do you recommend?

Jeffers lost his wallet at the movies.

Identity Theft ScenariosWhat do you recommend?

Susan received a phone call from someone at her bank. They asked her for her account number for verification.

Identity Theft ScenariosWhat do you recommend?

Jonathan is a sales clerk at a local retail store. A customer has a credit card with “See ID” on the back. The customer explains that she has her mom’s permission to use the card.

Identity Theft ScenariosWhat do you recommend?

Geraldine carries her social security card in her wallet. She knows this is not a wise idea, but she cannot remember the number when she is asked for it.