Fraud and Identity Theft Megan Stearns, Credit Counselor
Agenda Fraud and identity theft statistics Fraud Identity theft Identity theft prevention Protecting your Social Security Number Online prevention What to do if you are a victim
Indiana Fraud and Identity Theft Statistics In 2013, Indiana ranked 35 th in the U.S. for both fraud and identity theft complaints.
U.S. Fraud and Identity Theft Statistics In 2013, Florida ranked 1 st in the U.S. for both fraud and identity theft complaints. In 2013, North Dakota ranked last in the U.S. for both fraud and identity theft complaints.
Who is targeted? Fraud, 2013 11% 2% 15% 19 and under 16% 20-29 30-39 17% 40-49 50-59 20% 19% 60-69 70 and over
Who is targeted? Identity Theft, 2013 17% 12% 8% 18% 6% 20% 19% 19 and under 20-29 30-39 40-49 50-59 60-69 70 and over
Types of Fraud Scams Skimming Email phishing Phone phishing Data breaches Check scams Internet sales Lottery scams Work at home scams
Skimming Thief swipes your debit or credit card through a hand-held device Thief installs an overlay device on an ATM These devices glean information off the magnetic strip on the back of the card Name, account number, expiration date, and security features Stolen information is sold
Skimming Hand-held Overlay
Email Phishing Email messages are sent that try to trick you into clicking on a link to reveal your financial and personal information Sense of urgency State account will be closed or restricted if you do not take action Purdue Federal CU or any legitimate institution will not solicit personal information via email
Email Phishing What to do: Do not reply Do not click on links Do not open attachments Do not provide personal or financial information via email Use anti-virus software and firewall protection Contact the Federal Trade Commission (FTC) if you have been scammed http://www.ic3.gov/complaint
Phone Phishing Technology is used to create a legitimate sounding copy of a financial institution s message Number will show up on your caller ID as the financial institution Message will state your card has been compromised You will be prompted to verify the card number and PIN to re-activate More advanced systems will transfer you to the thief for further questioning
Data Breach When information has been subject to unauthorized access The information is usually lost, stolen, or hacked into Merchant processors Lost tapes Lost or stolen laptops
Types of Check Scams Internet sales Lottery scams Email and fax solicitations Work from home scams
Internet Sale Scam Buyer sends you a larger check than expected You are instructed to wire excess funds through Western Union or Money Gram Original check is counterfeit and returned Your account could be overdrawn when the check is returned
Lottery Scams Receive an email or piece of mail notifying you that you ve won the lottery Cashiers check, commercial check or U.S. Treasury check is received Check is larger than expected or you owe taxes Instructed to wire out the difference Original check is returned as counterfeit Your account could be overdrawn when the check is returned
Email and Fax Solicitations Commonly known as Nigerian scams Your help is requested to move funds from fraudster s country to the United States Need your account number to hold the money Money is withdrawn from your account instead of deposited
Secret Shopper Scams Receive a letter and a check Instructed to cash the check and make several detailed purchases over the next few days Usually one or two of the purchases involves wiring funds out via Western Union or Money Gram Check returned as counterfeit Your account could be overdrawn when the check is returned
Helpful Tips Do not accept checks over the purchase price Do not wire out any excess funds Verify contact information provided for checks received Do not respond to emails asking for personal or financial information Ask your financial institution about any suspicious checks
What is identity theft? Occurs when someone assumes your identity by using: Your date of birth Social Security Number Photo identification Or any other document to obtain credit, credit cards, withdraw money from your bank account, apply for loans, establish accounts with utility companies, rent apartments, and obtain a job.
What is identity theft? Impact on victims Damaged credit record Loss of job opportunities Refused loans for education, housing, or cars Arrests due to mistaken identities
What is identity theft? Impact on consumers Cost of fraud reduces profit margins for companies Leads to higher costs for consumers
How do fraudsters obtain your information? Stealing your wallet/ purse Stealing your statements from your mailbox Diverting your mail to a new address Digging through the trash Phishing scams Compromised debit or credit cards from a data breach Misuse by family or friends
How do fraudsters use your personal information? Open new accounts in your name and go shopping Accounts then reported as delinquent on your credit report Call your creditors and change your billing address Take out loans, buy cars, get utility services in your name Authorize electronic transfers to drain your account Give your name during an arrest
ID Theft Prevention Do not give out your personal information Store all personal information in a safe place Safeguard wallets, purses, checkbooks, and account statements at home and at work Protect your PINs and other passwords Guard against shoulder surfers Carry only a minimum amount of identification
ID Theft Prevention Review statements and account activity on a regular basis Pay attention to billing cycles Sign up for fraud alert services provided by your financial institutions Sign up for e-statements, direct deposit, and online bill pay Don t authorize payments over the phone unless you initiated the call and know the company
ID Theft Prevention Opt out of preapproved credit offers by calling 888. 5 OPT OUT or online at www.optoutprescreen.com Mail bills from a locked mailbox or Post Office Stop mail if you re out of town Shred pre-approved credit offers, statements, bills, and other documents with personal or financial information
ID Theft Prevention Review your credit report Make sure you recognize all the accounts Make sure you recognize all addresses Review your report at least annually You are entitled to one free credit report a year from each of the three credit bureaus Check credit reports for everyone in the family
ID Theft Prevention Review your credit report www.annualcreditreport.com 877.322.8228 Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281
Protect Your Social Security Number Ask Why do you need it? Don t carry Social Security card in your wallet, unless you need it that day Don t use last 4 digits of SSN as a PIN Memorize PINs Don t let clerks write SSN on checks as ID Don t have SSN preprinted on checks Know when you have to give SSN and when you don t
Protect Your Social Security Number Must give SSN Credit unions/ banks Employers Income tax records Loan applications Credit bureau reports College records May want to refuse Over the phone On personal checks On club membership As ID for purchases As general identification
Online Prevention Don t click on links within email messages from unknown sources Look for https:// in the URL Use up-to-date antivirus and firewall software Avoid emailing personal and financial information Notify spoofed companies immediately
Online Prevention Shopping Shop only with companies you know Pay only with a credit card or third-party intermediary Consider having a credit card designated for online only purchases Watch for URL to change from http:// or https:// Use a secure browser Look for closed padlock or unbroken key at the bottom of the browser window
What to do if you are a victim Contact the Federal Trade Commission (FTC) Identity Theft Hotline 877.ID.Theft (877.438.4338) www.consumer.gov/idtheft The FTC will put your information into a secure database and share it with local, state, and federal law enforcement agencies
What to do if you are a victim Contact your financial institutions and creditors Follow each conversation with a certified letter, return receipt requested Keep copies Close your accounts if possible Request access to your account be restricted Change your passwords
What to do if you are a victim File a police report Keep a copy of the report and case number for your records Contact the fraud departments of all three credit bureaus Request a fraud alert/ consumer statement be placed on your report
What to do if you are a victim Credit bureau contact information Equifax 888.766.0008 www.equifax.com P.O. Box 740241 Atlanta, GA 30374-0241 Experian 888.397.3742 www.experian.com P.O. Box 9532 Allen, TX 75013 TransUnion 800.680.7289 www.transunion.com P.O. Box 2000 Chester, PA 19022-2000
Questions?
Megan Stearns Email: mstearns@purduefed.com Phone: 765.497.7455 Website: PURDUEFED.COM