Identity_Theft__Carol_Bogaard_D52DF5943113B by fanzhongqing


									   IDENTITY THEFT:

Don’t Let it Happen to You!

           Carol Bogaard
Iowa College Student Aid Commission
• What is Identity Theft?

• What makes up your “Identity”?

• How is your identity stolen?

• What do thieves do with the information?

• Credit Freeze Law

• Deter, Detect, Defend
    What is Identity Theft?

 Identity theft occurs when
 someone uses your personally
 indentifying information
 to commit fraud or other crimes.
• Estimates are 1 in 4 Americans will be victimized
  in their lifetime…10 million per year
• It takes victims an average of 14 months to
  discover identity theft
• It takes an average of up to 21 months to fix all
  of the fraudulent damage
• Loss to businesses $50 Billion
• Victims have spent $5 Billion
• In 84% of cases, the thief was a stranger
  – Company or financial institution employees
    with access to personal information

• In 16% of cases, victim knows the thief
  – Family members, friends, neighbors,
    roommates, co-workers
• 20% of victims reported their personal
  information was misused for non-financial
  – To obtain government documents
  – As identification when stopped by law
    enforcement or caught committing a crime
• Identity theft is the fastest growing crime in
     What Constitutes “Identity”?

•   Name                     • Passwords - Mother’s
•   Address                    maiden name
•   Telephone number         • PINs
•   Social security number   • Place of employment
•   Date of birth              Employee ID
•   Bank and Credit Card       numbers
    Account numbers
                             • Driver’s license
                             • E-mail addresses
        How Is Identity Stolen
• Shoulder surfing
  – Happens at ATMs and cash registers when you enter
    PINs or use credit cards
• Dumpster diving
  – Criminals go through trash to find financial records,
    SSNs, checks, receipts, statements, junk mail
• Mail interception
  – Mail redirected to another address
  – Mail stolen from your mailbox
• Phone call
  – Asking for personal information
        How Is Identity Stolen
• Stolen wallet or purse
  – Don’t carry any ID with your SSN on it
• Insider access
  – Your place of employment
  – Repairmen in your home
• Retail clerks/employees
  – Store employees can sell or use records from credit
    card machines; systems hold PIN numbers
  – Waxed Paper
  – Hotel Key Cards
• Spam/unsolicited e-mail
  – Thief e-mails a request for your personal information
    with no intention of keeping promises in the e-mail
         How Is Identity Stolen
• Spyware
  – Software is loaded without your knowledge on your personal
    computer that thieves can use to record your personal

• Hacking
  – Information taken from work or personal computer if proper
    protective software is not installed

• Skimming
  – Thief mounts equipment on the front of legitimate ATM
    machines that records your card number and PIN
         Skimming Devices
Skimming occurs when thieves set up a device that
captures the magnetic stripe and keypad information
from ATM machines and gas pumps.
          Skimming Devices
Upon closer inspection of the brochure rack unit, you can
clearly see the pin hole camera installed on the bottom
side, capturing an image of the keypad and
subsequently, our PIN numbers.
                 Internet Scams
• Phishing
   – scam artist claims to be from a government office, bank, or
     other company and takes victim’s personal information (e-
     mail or telemarketing)
• Spear Phishing
   – Advanced phishing – appears to be from HR or IT
• Pharming – similar to Phishing but more sophisticated
   – Fraudulent websites that look like real companies
   – Ask for confirmation of your personal information
   – Emails contain virus or Trojan horse that will redirect to a
     spoofed website that captures personal information

       Electronic Pickpockets
• Steal credit card info without touching card

• Only certain types of cards are susceptible
  – RFID Radio Frequency Identification
  – Don’t swipe, just wave your card
  – Radio waves get data from tiny chip
  – Sometimes called contactless smart cards

• Security verification number is not on back
      Electronic Pickpockets
• Earlier cards had name on chip – newer
  versions don’t

• Not easy to get info – scanner would need
  30 seconds to get the info they need

• RFID technology is also used in passports
  and some iPhones
 Prevent Electronic Pickpockets
• Leave your RFID credit cards at home
• Put 2 RFID credit cards in your wallet
  – Confuses the scanner
  – Data gets discombobulated
• Put a piece of tin foil in your wallet
  – DataSafe Wallets made of stainless steel
  – Tin foil is cheaper
• Watch your credit card statements
   Smart phones and ID Theft
• May be bigger risk than computers
  – Easier to lose a phone
  – So much information is on smart phones
    • Mobile banking
    • Deposit checks
• By 2013, 53M users will use mobile banking
• Nation’s largest wireless providers AT&T and
  Verizon offer iPhones
     Smart phones and ID Theft
•   Use a password
•   Lock phone when not using it
•   Only download from a trusted site
•   Don’t use unsecured Wi-Fi connection
•   Delete everything before you get rid or it
•   Get anti-virus protection for your phone
•   For Android: Get Lookout – has gps/wifi
    phone location service
What do thieves do with a stolen
     New Law - Credit Freeze

• Places a freeze, or block, on sharing credit
• Prevents potential creditors and third
  parties from accessing credit reports
  without approval
• Law took effect July 1, 2009
              Credit Freeze
• If ID thief tries to get credit card or loan in
  your name, most businesses check credit
  history – ID thief won’t get credit
• Free for victims who have filed police
  report of identity theft
• $10 per Credit Reporting Agency
• Write each CRA
             Credit Freeze
• Doesn’t lower credit scores
• Can prevent the vast majority of identity
  theft that involves opening a new line of
  – Freezing Your Credit Report

        Deter ID Theft

 by safeguarding your personal
Your Social Security Number

• Created in 1935 to track earnings
  and pay retirement benefits.
• Approximately 277 million active
      More on Your SSN…
• Most frequently used record keeping
  number in the U.S
• Current widespread use makes invasion
  of privacy and fraud easier to commit
• Extreme measures need to be made to
  safeguard your SSN
• Release your SSN only when absolutely
  When are you REQUIRED to
       give your SSN?
• Government Forms
• Employers-required if you want
• Insurers-required if you want
• Creditors-required if you want an
  extension of credit
 Social Security Administration

• Order Earnings & Benefits Statement:
  (800) 772-1213

• Report fraud: (800) 269-0271

• E-mail:

• Web:
   What about your computer?

• NEVER, ever allow friends or roommates
  to use your computer
  – Like a personal diary
  – What sites would they surf?

• Be careful with your old computer
  – Pull out old hard drive
  – Destroy the actual write-disk inside
   Tips to Protect Your Identity
• Watch for “shoulder-surfers” when using your
  PIN. Don’t give your PIN to anyone!
  – Memorize your PIN and passwords
• Don’t leave credit card receipts where others
  can see your account number
• Buy a cross-cut shredder and use it
• Don’t put personal information on social network
  – especially birth year
   Tips to Protect Your Identity
• Limit the number of credit cards you have
  and carry
  – keep copies in a secure place
• Order all three credit reports at least
  annually and resolve errors.
• Do not leave paid bills in your mailbox
• Photocopy everything (front and back) you
  carry in your purse or wallet to make
  canceling easier
 Tips to Protect Your Identity
• Don’t use an obvious password such as:
  – your birth date
  – your mother’s maiden name
  – the last four digits of your Social Security number.
• Keep your personal information in a secure
  place at home, especially if you have
  roommates, employ outside help, or are
  having work done in your house.
     Protect Information on Your
• Select Internet browser with more security
  – use the most up-to-date version
• Don’t leave your computer on when not in use
• Run anti-virus/anti-spyware software and install
• Be careful what you download
• Never click on links sent in unsolicited emails
• Visit for more info

        Detect suspicious activity

routinely monitor your financial accounts and
               billing statements
           Protect Yourself
• Be alert to signs that require immediate
  – Mail or bills that do not arrive as expected
  – Unexpected credit cards or account statements
  – Credit denied for no apparent reason
  – Calls or letters about purchases you did not
  – Unexplained charges or withdrawals form
    credit cards or bank accounts
            Protect Yourself
• Most victims find out about the crime due
  to an adverse situation
  – denied credit or employment
  – notified by police or collection agencies
  – received unsolicited credit cards or bills

• Order a copy of your credit report at least
  once a year to check for fraudulent activity
    To Obtain a Credit Report
  800-685-1111 or

  888-524-3606 or

  800-888-4213 or

 Phone numbers may change.
  To Obtain a Credit Report

• Visit

• Or call 1-877-322-8228

• You also can write:
    Annual Credit Report Request Service
    P.O. Box 105281
    Atlanta, GA 30348-5281

  Defend against identity theft

as soon as you suspect a problem.
        If YOU are a VICTIM
• Place a “Fraud alert” on your
  credit reports

• Get credit report and review carefully

• Gives an initial 90-day fraud alert

• After 90 days, you must contact agencies
  again for 7-year alert to be placed in your
  credit file
        If YOU are a VICTIM
• Write a victim statement

• Use the ID Theft Affidavit at to support your written

• Ask for written verification

• Keep copies of documents and records of
  your conversations about the theft
      If YOU are a VICTIM

• File a police report
• Report your complaint to the Federal
  Trade Commission
  – 1-877-ID-THEFT
  – 1-877-438-4338
     If YOU are a VICTIM
• Iowa Attorney General’s Consumer
  – 515-281-5926
• Change passwords and PINs

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