Richard Swed. CEO- The Risk Management Group

Size: px

Start display at page:

Download "Richard Swed. CEO- The Risk Management Group"

Philip Webb
8 years ago
Views:

1 Richard Swed CEO- The Risk Management Group Richard is a recognized expert in the field of identity theft, with 14 years of experience, and speaks to groups of all sizes on identity theft & identity theft protection for all types of businesses. Graduate of Univ. of Denver, Daniels School of Business, Denver, Colorado Bachelor of Science in Business Administration He works with businesses to help protect them, their employees & customers against identity theft. Businesses have liabilities with the personal data they hold, & must comply with federal and state laws regarding identity theft (FACTA/The Red Flag Rules/Data Breach Notification). He works with businesses to help them take the reasonable steps to lower their risk of a major identity theft incident that can destroy their business.

of Denver, Daniels School of Business, Denver, Colorado Bachelor of Science in Business Administration He works with businesses to help protect them, their employees & customers against identity

2 Tidewater Chapter Virginia Society of CPAs Presentation- Identity Theft-Risks & Liabilities Affecting Your Clients Richard Swed CEO- The Risk Management Group

3 IDENTITY THEFT SEMINAR

4 Identity Theft in the News! Identity Theft is spiraling out of control! Over 217 million American s Identities have been reported lost or stolen since Feb PrivacyRights.org Almost any company you walk into has at least one computer with Personally Identifiable Information (PII) on it. Over 400,000 Dead People opened Bank accounts last year. AARP The revenue from trafficking financial data has surpassed that of drug trafficking.

org Almost any company you walk into has at least one computer with Personally Identifiable Information (PII)

6 What is Identity Theft? Driver s License Identity Theft Thieves use your information to acquire a drivers license or claim to be you during a traffic stop etc You could receive DWI, DUI, and other driving-related charges Your driving privileges could be suspended or revoked You could be arrested during a routine traffic stop for crimes you did not commit Instant Credit in your name

claim to be you during a traffic stop etc You could receive DWI, DUI, and other driving-related

7 What is Identity Theft? Social Security (SSN) Identity Theft Thieves take the income, but don t pay the taxes, leaving you with the bill Wanted criminals use your SSN Identity so they can get employment without being found Illegal immigrants use your SSN Identity to gain employment. Thieves and Criminals use your SSN for employment, medical, financial, criminal, school, and other purposes.

you with the bill Wanted criminals use your SSN Identity so they can get employment without being

8 What is Identity Theft? Social Security Identity Theft A Chicago woman applied for a job at a local Target department store and was denied. The reason? She already worked there or rather, her Social Security number already worked there. Follow-up investigation revealed the same Social Security Number was used to obtain work at 37 other employers. (MSNBC) 10,000,000 Social Security Numbers are bought and sold every six weeks You may need access to an attorney to resolve these related issues.

The reason? She already worked there or rather, her Social Security number already worked there.

9 Medical Identity Theft What is Identity Theft? Insurance Benefits, R x, Medicare, Medicaid, Medical tests Medical Identity Theft occurs when criminals obtain your health insurance identification or social security number to get health care. That means your medical history and health care can include someone else s information. This form of Identity Theft can be life threatening. There are over 47,000,000 people in the U.S. without Health Insurance Stolen Health Insurance Card are being sold on the black market for $500-$600 each! (AARP) You may need access to an attorney to resolve these related issues.

social security number to get health care. That means your medical history and health care can include someone else s information.

10 What is Identity Theft? Character/Criminal Identity Theft Driver s License, Social Security Number, Date of Birth, etc. Character / Criminal Identity Theft 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. Or the imposter may present to law enforcement a counterfeit license containing another person s data. You Could be Arrested for Crimes You didn t Commit! You may need access to an attorney to resolve these related issues.

s license, date of birth or social security number to a law enforcement officer during an investigation or upon arrest.

11 What is Identity Theft? Financial Identity Theft Credit Cards, Bank/Auto Loans, Mortgages, Lease etc. Financial Identity Theft Victims of Financial Identity Theft are people who have had bank accounts wiped out, credit histories ruined and jobs and valuable possessions taken away. In some cases they have been arrested for crimes they didn t commit. You could even be Responsible for Debts You didn t create! You may need access to an attorney to resolve these related issues.

histories ruined and jobs and valuable possessions taken away.

12 2007 Facts About This Crime! 57% of victims had NEW ACCOUNTS opened in their name 62% had warrants issued for their arrest 82% found out through an adverse action Cost to the average victim $1, Average victim spent hours to clean up the mess..70% stated up to 12 months! Inability to clear Negative Records: 63% could not get their credit reports cleared 22% have their SSN tied to someone else s 19% had their fraud alerts ignored *ITRC - The Aftermath

an adverse action Cost to the average victim $1,865.27 Average victim spent 157.87 hours to clean up the mess.

13 2007 Facts About This Crime! More than 49% of the respondents reported stressed family life The strongest feelings expressed were: Rage or anger, betrayal, unprotected by police, personal financial fears, sense of powerlessness, sense they were grieving, annoyed, frustrated, exhausted, sleep disturbances, an inability to trust people, and the desire to give up and stop fighting the system. ITRC long term emotional responses included: 8% felt suicidal 19% feeling captive 29% ready to give up *ITRC - The Aftermath 10% felt that they have lost everything

by police, personal financial fears, sense of powerlessness, sense they were grieving, annoyed, frustrated, exhausted, sleep disturbances,

14 Identity Theft Facts Lost, Hacked, or Stolen Notables Boeing: 382,000 (Employees) CitiFinancial: 3.9 Million MasterCard: 40 Million AOL: 92 Million Veterans Admin: 26.5 Million TJ MAXX: 94 Million Starbucks: 60,000 (Employees) Aetna/Nationwide: 200,279 TCLEOSE: 230,000 ( TX. Law Enforcement)

9 Million MasterCard: 40 Million AOL: 92 Million Veterans Admin: 26.

17 Where the law becomes logical Once the credit systems accept bad data it can be next to impossible to clear. USAToday June 5, 2007 Medical identity theft can impair your health and finances and detecting this isn t easy and remedying the damages can be difficult. WSJ Oct 11, 2007 Because it is so overwhelming to correct the victims records it is imperative for businesses to protect the data.

USAToday June 5, 2007 Medical identity theft can impair your health and finances and detecting

21 Fair and Accurate Credit Transactions Act (FACTA) (New rules are substantive and impose additional new requirements effective January 1, 2008) Applies To Every Business And Individual Who Maintains, Or Otherwise Possesses, Consumer Information For A Business Purpose. Employee or Customer information lost under the wrong set of circumstances may cost your company: Federal and State Fines of $2500 per occurrence Civil Liability of $1000 per occurrence Class action Lawsuits with no statutory limitation Responsible for actual losses of Individual ($92,893 Avg.) Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You

22 FACTA-Red Flag Rule & Gramm, Leach, Bliley Safeguard Rules Applies to any Organization Including : Financial Institutions* School Districts Credit Card Firms Insurance Companies Lenders Brokers Car Dealers Accountants Financial Planners Real Estate Agents *The FTC categorizes an impressive list of businesses as FI and these so-called non-bank businesses comprise a huge array of firms that may be unaware they are subject to GLB. Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You

23 FACTA Red Flag Rules and the GLB Safeguard Rules Require businesses to: Appoint in writing an Information Security Officer. Develop a written ID Theft protection plan & policy to protect Non-Public Information for employees and customers. Hold mandatory training for employees who have access to Non-Public Information. Oversee Service Provider arrangements Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You

27 THANK YOU The Risk Management Group

YOUR CITY/MUNICIPALITY

The Red Flags Rule What Companies Need to Know About Complying with the New Privacy Laws for Fighting Identity Theft Is YOUR CITY/MUNICIPALITY In Compliance FACTA / GLB Safeguard Rule / The RED FLAGS RULE?