identity-theft-and-strategies-for-crime-prevention by fanzhongqing

VIEWS: 9 PAGES: 63

									         Identity Theft
               and
Strategies for Crime Prevention
     National Crime Prevention Council
                 2007–2008
                 Objectives
     Define identity theft
     Discuss why you should worry about it
     Examine how identity theft occurs
     Look at how identity theft has emerged
     Discuss what is being done about identity theft
     Look at ways to protect yourself



2                    National Crime Prevention Council
             What Is Identity Theft?
       One person, using information gathered from
        some source, takes on the identity of another
        person without permission and conducts a
        variety of activities using that identity.

       The intent is to use that identity for personal
        gain, generally with the intent to defraud
        others.

3                       National Crime Prevention Council
    What Is Not Identity Theft?

     Someone using your credit card with
      your knowledge and consent to make a
      purchase
     Someone properly exercising a legally
      granted power of attorney on your behalf
     Someone making up a fake name and
      signing into a hotel—this may be a
      crime, but it’s not identity theft

4                National Crime Prevention Council
                        Why Worry
                          About
                       The Internet?



5   National Crime Prevention Council
           Why Worry About Identity
                  Theft?
     One in 33 households discovered at least one type of identity
      theft during the previous 12 months.
     Households with the highest incomes and those headed by
      persons ages 18–24 were the most likely victims.
     One in five victimized households spent about one month
      resolving problems resulting from identity theft.
     Identity theft is of greater concern to adults with older children
      at home (45%) than those with younger children at home
      (27%).

             Source: First Estimates from the National Crime Victimization Survey,
                   Identity Theft, 2004, Bureau of Justice Statistics Bulletin




6                                  National Crime Prevention Council
             Why Worry About Identity
                 Theft? (continued)
     U.S. adult victims of identity fraud in 2005: 9.3
      million.
     In 2005, total one-year fraud amount: $54.4 billion.
     Women are more concerned than men on all issues
      measured; including all issues related to identity
      theft.
     More than four in 10 women (42%) are very or
      somewhat concerned about identity theft.

        Source: Javelin Strategy and Research 2006 Identity Fraud Survey Report
                                www.javelinstrategy.com

7                                National Crime Prevention Council
                       Four Key Points
     People are not helpless in protecting
      themselves from identity theft.
     Consumers do not bear the brunt of the loss.
     Internet use does not increase risk of identity
      fraud.
     Seniors are not the most frequent targets of
      identity thieves.
        Source: Javelin Strategy and Research 2006 Identity Fraud Survey Report
                                  www.javelinstrategy.com



8                               National Crime Prevention Council
         Why Worry About Identity Theft
                          (continued)

       Victims of identity theft and those who know
        victims are far more likely to be concerned
        about this issue than those who have not been
        victims.

        • Concern among victims, 60%; versus among non-
          victims, 31%
        • Concern among those who know a victim, 45%;
          versus concern among those who do not know a
          victim, 32%
9                       National Crime Prevention Council
       Why Worry About Identity Theft
                         (continued)

     Those who feel more vulnerable on the
      Internet are concerned about identity theft at
      double the rate of others.

      • 71% feel more vulnerable on the Internet versus
        26% who are neither more or less afraid, and 38%
        who are less afraid than a year ago


10                     National Crime Prevention Council
          Why Worry About Identity
              Theft? (continued)
      Deterrence and apprehension are not yet
       effective. Prevention is the best defense.
      There are jurisdictional problems concerning
       where the crime occurs.
      It is an attractive crime to criminals because of
       its low risk and high return.



11                      National Crime Prevention Council
     A Few Statistics
     Regarding How
     Americans View
      Identity Theft

12   National Crime Prevention Council
                    Highlights
   More than nine in ten Americans believe that
    identity theft is a “major” or “moderate”
    problem (93%).
   Adults with a college degree or higher are less
    likely than others to think of identity theft as a
    “major problem” (46% of college graduates or
    higher versus 60% or 62% of those with
    “some college/high school graduate or less).


13                   National Crime Prevention Council
               Highlights (continued)
   Those who feel more vulnerable on the Internet state
    that identity theft is a “major problem” at a rate far
    higher than others (80% of those who feel “more
    afraid than they did a year ago” versus 53% or 47%
    who reported feeling “neither more nor less afraid” or
    “less afraid”).
   More than one in seven adult Americans (14%)
    reported being a victim of identity theft and nearly a
    quarter of adult Americans (24%) say someone close
    to them has been a victim.

14                     National Crime Prevention Council
             Highlights (continued)
   One in four of those who know a victim of
    identity theft have been victims themselves.
   Concern about identity theft does not lead to
    knowledge about preventing it. Those
    concerned about becoming victims of identity
    theft do not report being more knowledgeable
    on the subject than other Americans (57%
    concerned about identity theft versus all
    adults).


15                  National Crime Prevention Council
               Highlights (continued)
   More than half of adult Americans (56%) say they
    know a “good deal” or “great deal” about how to
    prevent identity theft. Only 6% say they “do not
    know anything” about identity theft prevention.
   Those with higher education claim to be more aware
    of how to prevent identity theft than those with lower
    incomes (63% versus 55%).
   One in ten Americans 18–39 years old and a similar
    percentage of adults with only a high school
    education (10%) feel they “don’t know anything
    about preventing identity theft.”

16                     National Crime Prevention Council
     How Does Identity Theft
            Work?




17           National Crime Prevention Council
            How Identity Theft Works
     STEP 1: Getting the Identity
        The thief or thieves look for information in a number
         of ways.
          • Discarded documents in the trash
          • Receipts from purchases
          • Lost or stolen wallets or purses
          • Online “phishing” for personal data
          • Stolen mail from mailboxes
          • Thieves are thinking of new, inventive ways
            every day.
18                        National Crime Prevention Council
      How Identity Theft Works
                         (continued)
  STEP 1: Getting the Identity (continued)
   Some thieves go “wholesale” by getting lists of
    personal information through computer hacking,
    theft, or bribery.
   The information may be resold to other crooks or
    used numerous times by the original thief or thieves.
   Profits may be used to support additional criminal
    activities, such as drug use and terrorism.



19                     National Crime Prevention Council
          How Identity Theft Works
                           (continued)

  STEP 2: Exploiting the Identity
     With the information that becomes available, the thief
      may have false ID cards made.
      • A state driver’s license with the thief’s picture
        and the victim’s name
      • A state identification card
      • Social Security card
      • Employer identification card
      • Credit cards
20                      National Crime Prevention Council
           How Identity Theft Works
                              (continued)

     STEP 2: Exploiting the Identity (continued)
        The thief may simply begin leveraging one piece of
         information to obtain or establish other information
         or assets. These may include
         • New credit card accounts
         • State or local licenses
         • Accounts with utility companies, apartment leases, or
           even home mortgages


21                         National Crime Prevention Council
         How Identity Theft Works
                          (continued)

  STEP 3: Discovering the Theft
   The thief continues to build a “persona” using the
    victim’s name, good credit, and even good character
    references. The thief never pays the bills, but the
    victim is left with a bad name and ruined credit.
   Eventually, the victim tries to get a new credit
    account and is turned down, or gets a bill for a credit
    card he or she never owned, or starts getting calls
    from bill collectors.
22                     National Crime Prevention Council
        How Identity Theft Works
                         (continued)


  STEP 3: Discovering the Theft (continued)
   The thief might abandon the victim’s identity because
    he or she has “spoiled” the name of the victim (e.g.,
    with a criminal offense or bankruptcy).
   When the crime or ruined credit is discovered, the
    victim is left to clean up the mess.



23                    National Crime Prevention Council
          How Identity Theft Works
                           (continued)

     STEP 4: Reporting and Restoring
      The victim reports the theft to the local police and to
       the nation’s three major credit bureaus.
      The victim asks the credit bureaus to note the identity
       theft crime on his or her credit report.
      The victim may need to consult with a local victims’
       assistance agency or an attorney to obtain information
       on the necessary, specific steps in a given state.

24                       National Crime Prevention Council
            How Identity Theft Works
                             (continued)

     STEP 4: Reporting and Restoring
         (continued)
        The victim can also file an online report and
         affidavit with the Federal Trade
         Commission registry at www.ftc.gov. Go to
         the identity theft section.


25                      National Crime Prevention Council
     Frequently Asked
        Questions

26       National Crime Prevention Council
         Where and How Do They
          Get My Information ?

      Telephone calls asking you
       to “update records”
      Theft of incoming bills,
       which show your account
       number
      Theft of outgoing mail and
       bill payments
27                  National Crime Prevention Council
          Where and How Do They
         Get My Information? (continued)
      Redirection of stolen mail, where the thief
       files a change of address on your credit card
       bills
      “Phishing” in which the sender sends out an
       email or pop-up message that looks like it
       came from a real bank or credit card
       company and asks for identifying
       information. Legitimate companies will
       never do this.
28                    National Crime Prevention Council
        Where and How Do They
       Get My Information? (continued)
      What is “phishing”?
       • The Internet is a new, convenient, and trusted way
         to do business, but it also has allowed criminals to
         create illegitimate emails or pop-up messages
         posing as your bank, credit card, or utility
         company.




29                        National Crime Prevention Council
        Where and How Do They
       Get My Information? (continued)
      What is “phishing”? (continued)
       • Thieves might create a phony reason why you need
         to give them your personal information (e.g., bank
         routing number, Social Security number).
       • They use the ease of online transactions to their
         advantage, hoping you will be fooled.




30                      National Crime Prevention Council
        Where and How Do They
       Get My Information? (continued)
     More ways thieves steal personal information
      Going through trash to recover bills
      Credit card receipts that you discard or toss out
       with a shopping bag
      Noticing a bill you tossed in a public trash can
      Second impressions of credit cards
      Casual use of Social Security numbers and
       other similar identifiers
31                     National Crime Prevention Council
     Sample “Phishing” Email




32          National Crime Prevention Council
 How To Avoid a “Phishing” Scam

  Tips from the FTC
     If you get an email or pop-up message that
      asks for personal or financial information, do
      not reply or click on the link in the message.
      Legitimate companies don’t ask for this
      information via email.




33                    National Crime Prevention Council
 How To Avoid a “Phishing” Scam
                        (continued)

  Tips from the FTC (continued)
     If you are concerned about your account,
      contact the organization via its legitimate
      telephone number or open a new Internet
      browser and type in the company’s correct
      web address.




34                    National Crime Prevention Council
 How To Avoid a “Phishing” Scam
                         (continued)


  Tips from the FTC (continued)
     Don’t send personal or financial information
      via email. If you initiate a transaction and want
      to provide your personal or financial
      information through an organization’s website,
      look for indicators that the site is secure.




35                     National Crime Prevention Council
 How To Avoid a “Phishing” Scam
                      (continued)

  Tips from the FTC (continued)
   A “lock” icon on the browser’s status bar or a
    URL for a website that begins “https:” (the “s”
    stands for “secure”) indicates that you are on a
    secure site.
   Unfortunately, no indicator is foolproof; some
    phishers have forged security icons.



36                  National Crime Prevention Council
 How To Avoid a “Phishing” Scam
                             (continued)

        Use antivirus software and keep it up to date.
         Some phishing emails contain software that can
         harm your computer or track your activities on
         the Internet without your knowledge. Antivirus
         software scans incoming communications for
         troublesome files. Look for antivirus software
         that recognizes current viruses as well as older
         ones that can effectively reverse the damage and
         install updates automatically.


37                         National Crime Prevention Council
 How To Avoid a “Phishing” Scam
                          (continued)

        A firewall helps make you invisible on the
         Internet and blocks all communications from
         unauthorized sources. It’s especially important
         to run a firewall if you have a broadband
         connection. Finally, your operating system
         (e.g., Windows or Linux) may offer free
         software “patches” to close holes in the system
         that hackers or phishers could exploit.


38                      National Crime Prevention Council
     Why Is ID Theft on the Rise?
      Computers have made record keeping
       faster. Automation also removes human
       analysis, making it easier for someone to
       steal an identity or pose as another person.
      More and more transactions are being
       handled electronically, a trend that is
       continuing to increase dramatically.
      More computer hackers now go for
       monetary returns, not for the thrill of
       conquering another computer.
39                 National Crime Prevention Council
      Why Is ID Theft on the Rise?
                      (continued)

   Mobility means that many of us shop in stores
    all over our communities, regions, or the
    country, so we are more anonymous than ever.
   Many of us find it hard to believe that identity
    theft could happen to us, even though millions
    are victims each year.



40                  National Crime Prevention Council
      What Can We Do About It?
   Consumer education, like the information
    we’re sharing today, helps you reduce your
    risk of becoming a victim.
   Education is an ongoing process as new
    technologies and new criminal techniques
    emerge.
   Information about prevention and ways to stop
    identity theft spread quickly as well.


41                 National Crime Prevention Council
      What Can We Do About It?
                      (continued)

      New ways are being found to tighten
       security on electronic payment systems and
       to detect “out of the ordinary” purchase
       patterns.
      Some credit card payment systems now
       print only the last four digits of your card
       number, so that someone who steals your
       receipt can’t steal your good name.


42                  National Crime Prevention Council
        What Can We Do About It?
                       (continued)

     New shredders are coming into the market,
      making thorough document destruction easier
      at home.

                                  “Don’t risk it, shred it.”




43                   National Crime Prevention Council
              Who Is Vulnerable?
     People who
      Keep their money in bank accounts
      Use credit or debit cards
      Generate trash with unshredded paper in it
      Casually toss credit card or other receipts
       into public receptacles
      Get personal bills by mail or electronically



44                     National Crime Prevention Council
                Who Is Vulnerable?
                         (continued)


     People who
      Don’t check their credit card reports and bank
       statements regularly
      Don’t check their credit bureau reports
       regularly
      Have unlocked, easily accessible mailboxes



45                     National Crime Prevention Council
     What Can We Do
        To Prevent
      Identity Theft?


46       National Crime Prevention Council
               Prevention Tips
      Check your bank, credit card, and similar
       statements monthly. Make sure you receive
       them and make sure the charges are yours.
      Immediately call your bank or credit card
       companies if you don’t receive your bill.




47                 National Crime Prevention Council
         Prevention Tips (continued)
   Consider registering with the Direct Marketing
    Association to stop unsolicited credit offers.
   Never provide account information over the
    Internet or the telephone unless you originated
    the call and unless you are absolutely certain
    of the party to whom you are speaking.



48                  National Crime Prevention Council
         Prevention Tips (continued)
   Rip up receipts if you will not need them for
    warranties or returns.
   Shred any unwanted credit, loan, or credit card
    offers—or at least cut them up with scissors—
    before putting them in the trash.




49                  National Crime Prevention Council
        Prevention Tips                                (continued)
   Do not give out your real name or
    other personal information in
    Internet chat rooms. Use a screen
    name.
   Do not authorize others to use
    your credit cards. They may not
    take the same care that you do.
   Deposit mail in a U.S. Postal
    Service mailbox.
   Make sure your mailbox is secure.
50                 National Crime Prevention Council
     Identity Theft
        Review



51      National Crime Prevention Council
Review: Coping With Identity Theft
        File a police report immediately.
        Notify the three major credit bureaus and
         each of your credit or debit card issuers of
         the identity theft and ask that appropriate
         alerts and closures be filed.
        File a report with the Federal Trade
         Commission’s Complaint Center and obtain
         an ID Theft Affidavit, which is available
         online at www.ftc.gov.
52                       National Crime Prevention Council
 Review: Coping With Identity Theft
                           (continued)

      Check credit reports, report any incorrect
       activity immediately, and ensure that a fraud
       alert is active on your account.
      Carry copies of documents with you—the
       police report, the affidavit, and any other
       formal records that attest to your identity—in
       case of emergency.


53                     National Crime Prevention Council
Review: Coping With Identity Theft
                          (continued)

        Check court records in your general area for
         bankruptcies and for mortgage liens using your
         name. Many records are automated, which
         makes the job easier.




54                      National Crime Prevention Council
         Encourage Everyone to…

      Review their habits about handling personal
       information.
      Take prevention strategies to heart—and
       encourage others to do so.
      Speak out about the need for preventive action
       and laws that protect identity theft victims.


55                    National Crime Prevention Council
     Questions

56    National Crime Prevention Council
                    Resources

                 www.ncpc.org




57   National Crime Prevention Council
            Resources From NCPC
     NCPC has a comprehensive Identity Theft campaign.
     Learn how you can keep your identity to yourself. Order
     a copy of Preventing Identity Theft: A Guide for
        Consumers or download it in PDF format.

     Other resources include
      Reproducible brochures: Identity Theft (PDF) and
       Protecting Your Privacy (PDF)
      Article: Evolving With Technology
      Newspaper Mats: ID Theft (PDF) and Seniors and
       Fraud

                          www.ncpc.org
58                       National Crime Prevention Council
     Resources From NCPC
     (continued)


 Public service campaigns that focus on cyber security
  and safety
 Partners including the Forum to Advance the Mobile
  Experience (FAME) and the Chief Marketing Officer
  Council (CMO Council)
 Tip sheets and the publication Mind What You Do
  Online that can be downloaded online; report Internet
  crimes, and visit the security store

                   www.bytecrime.org
59                    National Crime Prevention Council
               Online Resources
      Federal Trade Commission: www.ftc.gov
      Department of Justice:
       www.usdoj.gov/criminal/fraud/idtheft.html
      Better Business Bureau: www.bbb.org
      United States Postal Service: www.usps.com
      National Criminal Justice Reference Service:
       www.ncjrs.gov


60                    National Crime Prevention Council
                 Online Resources
        Many nonprofit organizations are committed to
         promoting prevention and recovery from identify
         theft. Here are a few.
         www.idtheftcenter.com/index.shtml
         www.identitytheft.org
         www.privacyrights.org/identity.htm



61                      National Crime Prevention Council
     The National Crime Prevention
                Council
            2345 Crystal Drive
                 Suite 500
           Arlington, VA 22202
               202-466-6272
            FAX 202-296-1356
              www.ncpc.org


62             National Crime Prevention Council
     Presenter Contact Information




63             National Crime Prevention Council

								
To top