OFFICE OF KANSAS ATTORNEY GENERAL DEREK SCHMIDT

Transcription

1 OFFICE OF KANSAS ATTORNEY GENERAL DEREK SCHMIDT

2 Attorney General Derek Schmidt

3 BEING A SMART CONSUMER Jackie Williams, Assistant Attorney General Consumer Protection Division

4 Duties of the Attorney General: Enforce the KCPA Cooperate with federal, state, and local officials in enforcing comparable statutes Report to the governor and legislature annually

5 Office of Kansas Attorney General Derek Schmidt: Divisions Criminal Civil Consumer Protection LOGIC Medicaid Fraud Concealed Carry Crime Victims Compensation Board KBI Tobacco

6 Protecting Kansas consumers from scams, telemarketing fraud and other deceptive practices is a priority for our office. The Consumer Protection Division of the Attorney General s Office exists to help Kansas residents whether they have suspicious charges on their phone bill or think they ve been the victim of identity theft. The Consumer Protection Division investigates scams and mediates and prosecutes violations of the Consumer Protection Act, Kansas False Claims Act, No-Call Act and others.

7 Consumer Protection and Antitrust Division Statistics Complaints 4,383 in ,550 in ,703 in 2011 Recoveries & Savings $49,611,578 in 2013 $49,256,005 in 2012 $10,359,202 in 2011

8 Identity Theft: The Statistics According to the Bureau of Justice 2013 Report: An estimated 16.6 million people experienced at least once incident of identity theft in 2012 Financial losses due to personal identity theft total $24.7 billion per year

9 Identity Theft: The Statistics According to the National Criminal Justice Reference Service: The most common types of identity theft are government documents/benefits fraud, credit card fraud and phone or utility fraud. Victims of identity theft/fraud spend an average of 9 hours resolving the issue

10 How Does Identity Theft Hurt Victims? Denial of Medical Coverage Tax Problems (Unreported Income Stolen Tax Refund) Garnishment of Wages Lawsuits Default Judgments Arrests Time and Expense

11 How Does Identity Theft Hurt Victims? Direct Financial Loss Denial of Credit (Mortgage-Car/Student Loans) Denial of Employment Denial of Housing Denial of Public Benefits Denial of Driver s License

12 Old Fashioned Way Lost or Stolen Wallets Theft by: Family and Friends - Care Providers - Tax Preparers and Financial Advisors Dumpster Diving Stolen Mail Buying it From Corrupt Employees

13 New High-Tech Identity Theft Skimming (restaurants- gas stations) Data Breaches Phishing Keystroke Loggers and Malicious Code Peer to Peer File Sharing Social Networking

14 Mobile Risks Downloading of Apps Use of Unsecure WiFi Hotspots Unsecure Data Transfers and Storage Lost or Stolen Smartphones Improper Disposal of Old Phones

15 Two Types of ID Theft Law Criminal K.S.A Identity Theft Identity Fraud Criminal Penalties Sentencing Range Aggravating Factors Civil Wayne Owen Law K.S.A. 50-6,139 Kansas Consumer Protection Act Civil Penalties Private Remedies

16 Kansas Identity Theft Law: Criminal K.S.A What is identity theft? The act of obtaining, possessing, transferring, using, selling or purchasing any personal identifying information, or document containing the same, that belongs to or was issued to another person; and Intent to defraud that person, or anyone else, to receive a benefit; or misrepresent that person in order to subject that person to economic or bodily harm.

17 Personal Identifying Information K.S.A Includes: name, birthdate, address, phone number, driver s license number, social security card or number, place of employment, and financial account numbers

18 What is Identity Fraud? K.S.A Using or supplying information the person knows to be false to obtain a document containing any personal identifying information; or Altering, amending, counterfeiting, making, manufacturing or otherwise replicating any document containing personal information with intent to deceive

19 Criminal Penalties K.S.A Identity theft is a: Severity level 8, nonperson felony; and Severity level 5, nonperson felony if the monetary loss to the victim(s) is over $100,000 Identity fraud is a severity level 8, nonperson felony

20 Sentencing Range

21 Ignorance Is No Defense K.S.A (d) It is not a defense that the person did not know that the personal identifying information belongs to another person or that the person to whom the information belongs is deceased.

22 Statute of Limitations The statue of limitations for ID theft is five years. K.S.A (d). Because identity theft can be not a single act but a continuous course of criminal conduct, the Court has held that the limitation period does not necessarily begin to run when the first offense is committed, but rather when the identity is last used to gain a benefit. State v. Meza, 38 Kan. App. 2d at 251.

23 Kansas Consumer Protection Act K.S.A , et seq. Deceptive Business Practices Unconscionable Acts Identity Theft & Security Breaches No Call Act

24 The Wayne Owen Law K.S.A. 50-6,139 Identity theft or fraud, as defined by K.S.A is an unconscionable act or practice in violation of the Kansas Consumer Protection Act (KCPA). Violation of this law shall subject the perpetrator to the remedies and penalties in the KCPA. Under this law, proof of a consumer transaction is not required.

25 Civil Penalties K.S.A The Attorney General can bring action for up to $10,000 for each violation of the KCPA. Any supplier who willfully violates the terms of any court order issued pursuant to the KCPA shall pay a civil penalty up to $20,000 per violation. The Attorney General can also sue for and collect reasonable expenses and investigation fees.

26 Private Remedies K.S.A A consumer who has been the victim of a KCPA violation may bring action to: Obtain declaratory judgment Get a restraining order against a supplier who has violated, is violating or is likely to violate the act Recover damages

27 Preventing ID Theft Common Sense Go to

28 Overpayment and Fake Check Scams In this scam, fraudsters target consumers buying or selling a product. They accidentally send you a check for more than they owe you. They ask you to deposit the check into your account and wire them the difference. By the time the original check turns out to be a fake and bounces, the fraudster is long gone and the victim is left on the hook for the fraudulent check.

29 The Grandparent Scam Scammers make up a fake emergency and pretend they re you (I ve been arrested, I m in the hospital). They then target your friends and family for help and money. Don t believe everything you hear! Make sure to verify the emergency situation before you give any money.

30 You re Hired: Employment Scams These scams start with an offer that s too good to be true- work from home, earn thousands of dollars next week, etc. Beware of anyone who insists on only interviewing you over the phone, who wants you to wire money for start up supplies or asks you to fill out an online form with personal information like your social security number or bank information.

31 Phishing Scams Phishing is when you get an telling you that you ve won a contest or that a company needs to verify your personal information. The s can look very real. However, once you click the link it downloads a virus to your computer to get your personal information. Legitimate companies will not ask you to verify your information this way.

32 You ve Won! Sweepstakes and Lottery Scams These scammers call people and tell them they ve won the lottery, sweepstakes or a large monetary prize. But there s a catch: they ask the victim to wire them money for processing fees or taxes. By the time the victim realizes they didn t win anything, the scammer and their money are long gone.

33 Home Improvement Scams These scammers will leave your home in a worse condition than they found it. Beware of roofers, pavers and other contractors who come to your door promising a good deal to repair your home. Before paying any money or having any work done, make sure the contractor is in compliance with all state and local laws. Check our website for more information on making sure you re dealing with a reputable contractor.

34 Tax Refund Scam In 2013, the IRS issued $4 billion in fraudulent tax refunds. Criminals are using people s personal information to file a fraudulent tax return and pocket the money. What to look for: Never give out your social security or birth date over the phone or internet Be wary from correspondence from someone claiming to be from the IRS. The IRS will never ask for personal information via or phone

35 Arrest Warrant or Deportation Scam With this scam, fraudsters pretending to be law enforcement or the IRS call, or send a letter to people trying to convince them that unless they pay a fee, they will be arrested or deported. At least two Kansas residents have been targeted by this kind of scam; one Sedgwick County resident lost $9,000. Don t be fooled; law enforcement would never serve a valid warrant over the phone or by . Neither law enforcement or the IRS would ever ask for bank account numbers or personal information over the phone.

36 Too Good to Be True: Sales Scams If something sounds too good to be true, it probably is! Don t be fooled by high pressure scare tactics, free items, prices that seem too low or limited time offers. Scammers use the internet, phone and mail to talk people into buying bogus products by promising them to lose weight quickly, look 10 years younger, get rid of debt, etc.

37 Who Gets Scammed? While anyone can find themselves as the victim of a scam or fraud, there are certain things that make a victim more attractive to scammers 1 : Consumers who are easily persuaded Consumers who don t take preventive actions to protect themselves from fraud Consumers who expose themselves to many sales situations

38 How You Can Protect Yourself Trust your judgment. If something seems off, or like it s too good to be true, it probably is. Always protect your personal information. Use preventative measures like the Do Not Call List, check references for businesses before hiring them and use the resources on our website when researching a company or opportunity. Be skeptical. Do your own research before you sign up for anything or make a payment.

39 Questions/Comments? Consumer Protection Division 120 SW Tenth Avenue, Fourth Floor Topeka, KS (785) Jackie Williams

40 Thank You