IDENTITY THEFT

“The fastest growing white-collar crime in America”

According to the FBI

Identity Theft Privacy & Security Training

Randall Chesnutt, CITRMSAvoid ID Theft USA

Houston, Texas

The Institute of Fraud Risk Management is the nation’s only professional certification program (CITRMS) specifically developed to train and equip professionals to understand and address Identity Theft and related fraud issues. This is the same organization that trains F.B.I

WHAT IS IDENTITY THEFT?

It occurs when someone steals your personal information –

e.g., credit card or Social Security number – and uses it

fraudulently

It can cost you time and money

It can destroy your credit and ruin your good name

Identity Theft is in the News

Over 340 million American’s Identities have been reported lost or stolen since Jan. 2005. – PrivacyRights.org

The revenue from trafficking financial data has surpassed that of drug trafficking. – Secret Service March 2007

Identity Theft is Spiraling out of Control !

Drivers License

Medical

Financial

What someone is subject to as a victim of Identity Theft, is only limited to the imagination of the

person who has their information.

Social Securit

y

Five Types of Identity Theft

It’s not just about Credit Cards, it’s a Legal Issue !

Less than 28%

Criminal

Driver’s License Identity Theft

♦ Your driving privileges could be suspended or revoked.

♦ You could be arrested during a routine traffic stop for crimes you did not commit.

♦ Thieves can open bank accounts, apply for credit cards and cash checks in your name.

Our Driver’s License has become an unofficial National Identification Card !

Illegal Immigrants use your Social Security Number to gain employment or report income under your name. They take the income leaving you with the tax bill.

They can file false income tax returns or even file for social security benefits using your number.

Thieves and Criminals can use your SSN to apply for credit , obtain a Driver’s License and much more …

10 million Social Security 10 million Social Security Numbers are bought and sold Numbers are bought and sold every six weeks in the U.S.every six weeks in the U.S.

Social Security Identity Theft

Why you are at Risk

CHILDREN ARE A BETTER TARGET FOR IDENTITY THEFT THAN YOU.

Children have a clean credit history and parents rarely have reasons to check their child’s credit report. This crime can go undetected for up to 15 years.

 

Why your Children are at Risk ?

♦ You could owe thousands of dollars for a procedure you never had.

♦ You could become uninsurable and be denied employment because of conditions that you do not have (AIDS, Diabetes etc…)

There are over 52,000,000 people in the U.S. without Health There are over 52,000,000 people in the U.S. without Health InsuranceInsurance.. (US Census Bureau 2007)(US Census Bureau 2007)

Stolen Health Insurance Card are being sold on the Stolen Health Insurance Card are being sold on the black market black market

for $500-$600 each ! for $500-$600 each ! (AARP)(AARP)

Medical Identity Theft

Why you are at Risk

♦ You could be arrested for crimes you didn’t commit.

♦ You could be denied employment because of fraudulent criminal records found during routine background checks.

♦ Security checkpoints at airports could become a nightmare for you.

Thieves mask their criminal activity behind your identity

Criminal Identity Theft occurs when an imposter gives another person’s name and personal information such as a driver’s license, date of birth or social security number to a law enforcement officer during an investigation or upon arrest.

Criminal Identity Theft

Why you are at Risk

Victims of Financial Identity Theft are people who have had bank accounts wiped out, credit histories ruined and jobs and valuable possessions taken away.

Thieves use your social security number to open new accounts and can change the billing address leaving you with the debt.

Financial Institutions advertise zero liability for fraudulent activity on accounts if notified within 48 hours. What happens after 48 hours ?

You could be responsible for debts you didn’t create !

Financial Identity Theft

Federal Trade Commission free report:

877.IDTHEFT

consumer.gov/idtheft

Financial Identity Theft

Financial Identity Theft

Pg. 19

To Take Advantage of this Law You Must

• “send your letter so that it reaches the creditor within 60 days.

•If an identity thief changes the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill.”

Credit Monitoring is the best way to alert an individual of possible Financial ID Theft.

Financial Identity TheftFinancial Identity Theft

Financial Identity Theft

• FTC – 3%• Other Federal Agency – 5%• State Dept of Motor Vehicle Admin – 7%• State AG or State Consumer Agency – 8%• Lawyer – 12%• Credit Bureau – 22%• Local Police – 26%

• Credit Grantor – 43%• Did Not Contact Anyone – 38%

WHERE DO VICTIM GO FOR HELP

$500: Credit Card Number with Pin $150: Driver’s License$150: Birth Certificate$100: Social Security Card $25: Credit Card Number With Security Code And Expiration Date$7: Pay-Pal Account Log-On And Password

USA Today, October 12, 2006

Criminals covet your identity Data and have perfected more ways to manipulate your identity than you can imagine.

How Profitable is Identity Theft ?

The average dollar amount charged in

Identity Theft: $92,893

Average number of checks written 74.6

The average number of credit card

applications approved through Identity

Theft: 8.4

- Sept 2003, Identity Theft Resource Center interviewed 2,000 victims

The Cost to Individuals

Identity Thieves don’t discriminate! A professional thief can assume your identity in just a few

hours, but it can take years for you to repair the damage and restore your good name! Over 70% of the time you’ll need an attorney to resolve these issues.

57% of victims had NEW ACCOUNTS opened in

their name

62% had warrants issued for their arrest

82% found out through an adverse action

Out of pocket cost to the average victim

$1,865.27

Victims spent an average of 157.87 hours trying

to clean up the mess..

63% could not get their credit reports cleared

22% have their SSN tied to someone else’s

19% had their fraud alerts ignored *(Identity Theft Resource Center 2007)

Latest Facts About this Crime

Pictures taken with cell phone camera after waiting several minutes for someone to respond.

Identity Theft in the Workplace

Access to the computer, mail and other documents possible.

WHAT CAN YOU DO?

DETER Deter identity thieves by safeguarding your information

DETECT Detect suspicious activity by routinely monitoring your financial

accounts and billing statements

DEFEND Defend against identity theft as soon as you suspect a problem

DETER identity thieves by safeguarding your information.

Shred financial documents before discarding them

Protect your Social Security number

Don’t give out personal information unless you’re sure who

you’re dealing with

Don’t use obvious passwords

Keep your information secure

DETECT suspicious activity by routinely monitoring your financial accounts and billing statements.

Be alert Mail or bills that don’t arrive Denials of credit for no reason

Inspect your credit report Law entitles you to one free report a year from each nationwide

credit reporting agencies if you ask for it Online: www.AnnualCreditReport.com; by phone: 1-877-322-8228;

or by mail: Annual Credit Report Request Service, P.O. Box 105281,

Atlanta, GA 30348-5281. WE RECOMMEND WWW.MYCREDITKEEPER.COM

Inspect your financial statements Look for charges you didn’t make

DEFEND against identity theft as soon as you suspect a problem.

Place a “Fraud Alert” on your credit reports by calling any one of the

three nationwide credit reporting companies: Equifax: 1-800-525-6285 Experian: 1-888-397-3742 TransUnion: 1-800-680-7289 Review reports carefully, looking for fraudulent activity

Close accounts that have been tampered with or opened fraudulently

File a police report

Contact the Federal Trade Commission

QUESTIONS!QUESTIONS!

Joe Orsak Randall Chesnutt

Ron Hargrove