Identity Theft Protecting Your Credit Identity
Identity Theft The dollar loss suffered because of identity theft from consumers was 343 million in 2002. Federal Trade Commission The number of identity theft complaints filed in 2002 was 380,000 almost double from the 204,000 complaints in 2001. Federal Trade Commission Consumers spent 26 billion dollars online. United States Department of Commerce
Identity Theft IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer s personal identification, credit, or account information.
Personal Identification 1.3.1.G1 Information Includes Name Address and Telephone Number Social Security number Driver s license number Bank account numbers Credit card numbers Passwords Bills
Ways Identity Thieves Acquire Information 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 Information Can Be 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
Identity Theft How Identity Theft Occurs & Prevention
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.
3 Credit Reporting Agencies Equifax P.O. box 105873 Atlanta, GA 30348 Report order: 1-800-685-1111 Fraud Hotline: 1-800-525-6285 www.equifax.com Experian P.O. Box 2104 Allen, TX 75013-2104 Report Order: 1-888-397-3742 Fraud Hotline: 1-888-397-3745 www.experian.com Trans Union P.O. Box 390 Springfield, P.A. 19064-0390 Report Order: 1-800-888-4213 Fraud Hotline: 1-800-680-7289 www.tuc.com
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.
Wallets and Pocketbooks How 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.
Bills How 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.
Calling Cards How Theft Occurs: If a thief has a calling card and personal identification number, it may be used to make long distance calls anywhere. Prevention: Use only cards which require a personal identification number. Block numbers from others view while dialing.
Passwords How 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.
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.
Pre-Approved Credit Cards How Theft Occurs: A thief may activate credit cards using preapproved 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.
Bank Account Information How 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.
Social Security Number How 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.
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.
ATM, Credit and Debit Cards 1.3.1.G1 Prevention: 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.
ATM, Credit and Debit Cards 1.3.1.G1 Prevention 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.
Identity Protection Shopping Online
Why People Shop Online and Risks Why 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 1. Know the real deal Get all details before buying including prices, delivery time, warranty information, and return policies. 2. Look for clues about security Make sure the browser states https or shttp indicating it is secure. 3. Use a credit card Credit cards are the safest way because a person has the legal right to dispute charges.
Safety Tips for Shopping Online 4. Use an escrow service An escrow service will hold a person s money until confirmation of the product or services has been received. 5. Keep proof handy Print and file all information in case needed later.
Safety Tips for Shopping Online 6. Ask about substitute or single use card numbers Allows a person to use his/her credit card number without putting the real account number online. 7. Get the scoop on the seller Check complaint numbers at the state or local consumer protection agency and Better Business Bureau.
Identity Theft What to Do if Identity Theft Happens
Immediate Steps 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.
Credit Card 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.
ATM & Debit Cards, Electronic Transfers 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. To report a loss call the financial institution and follow up in writing. Get new bank numbers, personal identification numbers, and passwords. 1.3.1.G1
Check Liability Checks Contact the financial institution and stop payment. Notify the check verification service. Most states hold the financial institution responsible for losses of a forged check.
Identity Theft STAY ALERT BE CAREFUL BE SMART