Identity Theft Essentials

1. Identity Theft Essentials Advanced Level

2. Identity Theft IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information The FTC is a government agency that promotes consumer protection

3. FTC website

4. Personal Information Identity thieves try to obtain personal information from victims in order to steal their identities Personal Information

5. Personal Information What daily activities require an individual to share personal information? • Making purchases with a check, credit or debit card • Applying for a credit card or loan • Online or telephone shopping • Paying bills through the mail or online • Going to the doctor

6. How Do They Do It? • Thieves obtain personal information through a variety of methods: • Stealing - Information is taken from a purse or wallet, personnel records from a workplace, tax information, bank or credit card statements, or pre-approved credit card offers from the mail • Diverting Mail - Thieves can complete a change of address form and have the victim’s bills and statements mailed to a different location • “Dumpster Diving” - Personal information is discarded and thieves remove it from the trash • Skimming- Thieves attach a device to card processors to steal credit and debit card information

7. How Do They Do It? • Methods continued... • Phishing - Thieves use a form of electronic communication (usually email) to pretend to be a company or depository institution in order to get the victim to give up their personal information • Pretexting-Thieves use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources • Spyware- Software installed on the victim’s computer, without their knowledge or consent, that monitors internet use, sends pop up ads, re-directs the computer to other sites, and tracks key strokes • Hacking- Information is stolen by breaking into a computer system

8. What Identity Thieves Do With Information What can identity thieves do if they obtain personal information? • Apply for a new driver’s license • Open new bank accounts • Apply for credit cards or store credit accounts • Obtain cash with bank cards • Get a job • Rent an apartment • Take out student loans • File for bankruptcy

9. DETER- Minimize Your Risk • Protect your Social Security number • Only give it out to trusted organizations and only when absolutely necessary • Protect financial information • Sign the back of credit and debit cards with signature and “Please see ID” • Close unwanted accounts by writing and by phone • Cut up credit, debit, and ATM cards and dispose of the pieces in separate places Key Guidelines

10. DETER- Minimize Your Risk • Safeguard your purse and wallet • Carry only what you'll actually need when you go out • Don't carry your Social Security number or card, birth certificates, or passport • Verify a source before sharing information • Don't give out personal information over the phone, through the mail, or on the Internet unless you've initiated the contact Key Guidelines

11. DETER- Minimize Your Risk Key Guidelines • Be careful using the Internet • Only give out personal information when making a purchase and only on a secure site (indicated by a “https” or a picture of a lock after the URL or in the bottom right corner) • Use a credit card instead of a debit card when making online purchases • Watch for clues that might indicate a computer is infected with spyware • Many pop-up ads, unexpected toolbars or icons, keys that don't work, random error messages, and sluggish performance • If it is suspected that a computer is infected with spyware, immediately stop shopping, banking or doing any other online activity that involves sensitive information

12. DETER- Minimize Your Risk Key Guidelines • Keep usernames and passwords safe and select intricate passwords • For passwords, choose a combination of letters, numbers, and symbols that are not easily identified • Use different usernames and passwords for different sites and change them regularly • Select security check questions with answers only you would know • Treat your trash and mail carefully • Shred all documents that you are discarding that contain personal information • A cross-cut shredder is safest • Deposit mail containing personal information in secured mailboxes

13. DETER- Minimize Your Risk Key Guidelines • Protect your identity • Search your name occasionally to see if your name, picture, or other information is being used by someone else • Keep all documents containing personal information in a safe place where others cannot easily access them • Check credit reports • Check credit reports for errors at least once a year with all three reporting agencies • To stay constantly informed, request a credit report from one of the three reporting agency every four months

14. 3 Credit Reporting Agencies Trans Union PO Box 390 Springfield, PA 19064-0390 Report Order: 1-800-888-4213 Fraud Hotline: 1-800-6807289 www.tuc.com Equifax PO Box 105873 Atlanta, GA 30348 Report Order: 1-800-685-1111 Fraud Hotline: 1-800-525-6285 www.equifax.com Experian PO Box 2104 Allen, TX 75013-2104 Report Order: 1-888-397-3742 Fraud Hotline: 1-888-397-3745 www.experian.com To order a credit report from any of the three reporting agencies, use the following website: www.annualcreditreport.com

15. DETER Identity Theft Activity 1. 2.

16. DETECT Identity Theft • New accounts or charges you didn’t make • Calls from collection agencies • Incorrect information on your credit report • Being denied credit when there is no reason to be • Missing bills or mailed statements Early detection is key! Watch for the following signs

17. DEFEND - Recover From Identity Theft

18. DEFEND - Recover From Identity Theft

19. Personal Liability • Credit Cards • Truth in Lending Act limits liability for unauthorized charges to $50.00 per card • A letter must be received by the creditor within 60 days of the first bill containing the error • The dispute must be resolved within 90 days of the creditor receiving the letter

20. Personal Liability • ATM and Debit Cards • The Electronic Funds Transfer Act provides protection • The amount a person is liable for depends upon how quickly the loss is reported • Within two days: maximum $50.00 • Within sixty days: maximum $500.00 • After sixty days a person may be liable for everything

21. Personal Liability • Checks • Contact the financial institution and stop payment • Most states hold the financial institution responsible for losses of a forged check

22. Summary • IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information • Once an identity thief obtains personal information, they can complete many malicious acts with the information • There are many ways to DETER identity theft • Early DETECTION is key • There are basic rules to follow in order to DEFEND against identity theft if it does occur