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The Facts What is Identity Theft? Dan Cassin CITRMS, CLTFD ID entity T heft
Identity Theft is not just about Credit Cards! ID Theft is an international crime and access to an attorney may be critical Five Common Types of Identity Theft What is Identity Theft? Drivers License Identity Theft Medical Identity Theft Financial Identity Theft Social Security Identity Theft Character / Criminal Identity Theft
Driver’s License Identity Theft Thieves use your information to acquire a driver’s license in your name or claim to be you during a traffic stop
You could receive DWI, DUI, and other driving-related charges
Your driving privileges could be suspended or revoked
You could be arrested during a routine traffic stop for crimes you did not commit
What is Identity Theft?
What is Identity Theft? “ the Department has discovered that identification information in your file is inconsistent with corresponding records at the Federal Social Security Administration … Before your document can be renewed, any inconsistencies will need to be corrected. You will need to present legal documents that certify your current legal name, social security number and date of birth.”
What is Identity Theft? AARP Bulletin, February 2004 “ An 82-year-old grandmother, quit driving during the Truman administration.” In 2001 she “suddenly found herself in what she describes as a ‘living hell’ after one of her neighbors, arrested on drunk-driving charges … pretended to be her. ‘I was told there were warrants for my arrest … I was afraid to answer the phone’.”
Social Security (SSN) Identity Theft Thieves use your SSN Identity to gain employment or to report income under your name What is Identity Theft? Your SIN in Canada
Thieves take the income, but don’t pay the taxes, leaving you with the bill
Wanted criminals use your SSN Identity so they can get employment without being found
Illegal immigrants use your SSN Identity to gain employment.
Thieves and Criminals use your SSN for employment, medical, financial, criminal, school, and other purposes.
What is Identity Theft? MSNBC, January 29, 2005 A Chicago woman “applied for a job at a local Target department store and was denied. The reason? She already worked there – or rather, her Social Security number already worked there. Follow-up investigation revealed the same Social Security Number … used to obtain work at 37 other employers.” The Secret List of ID Theft Victims “ People need to wake up to this problem. They are destroying people’s credit, Social Security benefits, and everything else.”
Medical Identity Theft Thieves use your information for insurance benefits, R x , Medicare, Medicaid benefits, or for medical tests What is Identity Theft?
Your rates could go up or your coverage could be cancelled or used up
You could owe thousands of dollars for a procedure you never had
You could be unable to obtain medical or life insurance, other coverage, and/or employment because of conditions that you do not have (AIDS, Diabetes etc…)
“ If the person who steals your health identity has allergies or specific medical conditions that collide with yours for instance … when you go in for care, you may experience a dangerous drug interaction or unknowingly be denied potentially lifesaving medications or treatments because they will assume the thief’s medical information is yours.”* What is Identity Theft? University of Connecticut, September 2005 *Carole Pennington 9/7/2005 “ As the health care system transitions from paper-based to electronic, this crime may become easier to commit and harder to trace. Victims may find it more difficult to recover from medical identity theft as medical errors are disseminated and re-disseminated through computer networks and other medical information-sharing pathways.”* World Privacy Forum, May 2006 *Pam Dixon, Pg 3.,5/3/2006 Medical Identity Theft: The information crime that can kill you
Character / Criminal Identity Theft
You could be arrested
You could be denied employment because of fraudulent criminal records found during routine background checks
Security checkpoints at airports could become a nightmare for you
You could be denied a passport and be barred from leaving the country
Thieves mask their criminal activity behind your identity What is Identity Theft?
* from the cover What is Identity Theft? The October 2005 issue of Kiplinger’s Personal Finance portrayed a different side of Identity Theft when they devoted an entire section to character/criminal identity theft. “ Identity Theft Update: Could losing your wallet land you in jail?”* Kiplinger, October 2005
Financial Identity Theft
Thieves rob your accounts
They rack up outrageous charges on credit cards, take out new loans, etc.
They destroy your credit, forcing you to pay higher interest rates
You can absolutely be held responsible for the debts incurred by the thieves in your name
Thieves use your information to open new accounts or to gain access to existing accounts What is Identity Theft?
What is Identity Theft? *Pg. 19
“ The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit … accounts … To Take Advantage of the law’s consumer protection, you must:”
send your letter so that it reaches the creditor within 60 days. If an identity thief changes the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill.”* … or you owe the money.
See page 13 for additional information
What is Identity Theft? MSNBC, February 2004 ID Theft Victims Face Tough Bank Fights*
In 2003, The Korinke family was sued by Homecoming Financial Network INC., a division of GMAC, for $75,000, plus attorney fees.
In 2001, an imposter got hold of a line of credit, switched the address, and the Korinkes never received the outstanding bills.
Homecomings … claimed the Korinkes had been negligent. “The Korinkes were slow to discover and report the identity theft … as such, Korinke is liable for any and all sums attributed to his negligence.”**
Korinke’s attorney said “ victims who don’t have the means to find a good lawyer, may be losing out in battles with financial institutions.”***
*2/18/04 ** Pg.2 *** Pg. 3
“ Each year, 7 to 10 million Americans fall prey to Identity Theft… From massive data-brokerage firms to tiny local banks, your identity is irretrievably ‘ out there. ’ ” What is Identity Theft? - MSNBC Feb '09 FTC reported 2008 ID Theft reports up 22% Feb '09 – FTC reports ID Theft reports up 22% Over 9.9 million people reported IDT
What is Identity Theft? The DataBased You Meet The DataBased You ™ ™
What is Identity Theft? Your Name 1000’s of aggregators Your Fingerprints and DNA FBI, State, and Local DBS Your Insurance Claims C.L.U.E. DBS, etc... Your Military Record DOD DBS Your Criminal History NCIC DBS Your Real Estate Deeds Clerks of Court DBS Your Legal History State and Federal Court DBS Your Credit History Credit Repositories’ DBS Your Birth Certificate Choice Point DBS, State, etc … Your Phone Number and Tracking Info 1000’s of aggregators Your Social Security Number SSA DBS Your Address 1000’s of DBS The DataBased You ™ Your Driver’s License # and Record – DMV DBS Your Medical Records MIB DBS, etc … Your Car Registration & Info DMV, Local Treasurer, On Star, etc … DBS
Lost, Hacked, or Stolen… Notables You can’t control The DataBased You
CitiFinancial: 3.9 Million
MasterCard: 40 Million
AOL: 92 Million
Veterans Admin: 26.5 Million
Bank of America: 1.2 Million
TJX: 46 M illion
™ What is Identity Theft? So many laptops … we lost count i.e. Hotels.com (Ernst & Young)
What is Identity Theft? *MarketWatch, October 2, 2005 “ Identity thieves are increasingly finding their jackpot is not in your mailbox or kitchen trash bag, but the computer files stored at your chiropractor, accountant or doctor … the future is not burglaries of your home, but of dentists, CPA’s, insurers etc …”* ID Fraudsters Stay One Step Ahead
The Facts The Cost of Identity Theft Dan Cassin CITRMS, CLTFD ID entity T heft
The Cost to Individuals
The average dollar amount charged in Identity Theft: $92,893
The average number of checks written in Identity Theft: 74.6
The average number of credit card applications approved through Identity Theft: 8.4
Laws hold victims partially responsible for fraudulent debt after 48 hours, and hold them fully responsible if not reported within 60 days… The Cost of Identity Theft
Concerns of American Consumers The Cost of Identity Theft
Concerns of American Businesses
Security & Privacy Challenges
Facing Business Leaders Today
Customer and Vendor ID/ Data theft.
Computer/ Paper Data loss and theft.
Noncompliance with federal and state data protection laws.[fines & penalties]
Loss of trust ... and customers.
Employee fraud and theft. (50+% of data breaches)
Costly lawsuits based on sloppy security practices.
Computer damage from viruses, hackers, intruders, even employees.
Source: Privacy & American Business.
The Cost of Identity Theft
The Cost to Business I
Employees can take up to 600 hours , mainly during business hours, to restore their identities
“ If you experience a security breach, 20 percent of your affected customer base will no longer do business with you, 40 percent will consider ending the relationship, and 5 percent will be hiring lawyers!”*
“ When it comes to cleaning up this mess, companies on average spend 1,600 work hours per incident at a cost of $40,000 to $92,000 per victim.”*
The Cost of Identity Theft *CIO Magazine, The Coming Pandemic , Michael Freidenberg, May 15 th , 2006
The Cost to Businesses II
Employees take time off, sick days, even vacation days, to deal with Legal issues; how much more will they take off for IDT?
Studies show nearly 80% of employees with a legal problem won’t seek legal help out of fear of the system and expense. Yet 7 of 8 employees had at least 1 potential legal issue . And 50% had more than three.*
“ When when dealing with ID Theft, as with any Legal matter; employees are laden with worries, seek pity from co-workers on the job and talk on work-phones with Police, creditors, families and friends about their loss.” – Dan Cassin, CITRMS
The Cost of Identity Theft *Survey by FindLaw.com August, 2002
“ People whose identities have been stolen can spend months or years and thousands of dollars cleaning up the mess the thieves have made of their good name and credit record” “ When Bad Things Happen to Your Good Name ” - September 2002, Federal Trade Commission The Cost of Identity Theft
According to the USA Today, Identity Theft is the number one criminal concern for law enforcement over the next decade. The Cost of Identity Theft - USA Today
“ Thieves are so bold that they held a conference in Kiev, Ukraine, for people interested in breaking into this Growth Industry” The Cost of Identity Theft - USA Today
The Facts Industry Response Dan Cassin CITRMS, CLTFD ID entity T heft
Reimbursement Policies (ID Theft Insurance)
They do not monitor and some ID Theft issues cannot be corrected after the fact (such as your arrest records, etc...)
You must pay out of pocket first (up to $25,000 in some instances), then file a claim, and then hope for an underwriters approval for reimbursement. This process can take weeks or months and be very frustrating …
Your insurance agent does not do the work for you…
You carry the full burden of clearing your name…
These policies play a part, but they only help after you become aware of the theft… Reimbursement policies do not pay for the fraudulent losses, yet many think they do… Industry Response
Monitoring helps primarily with Financial Identity Theft, not other data monitoring.
Monitoring services often cover only the accounts you have with the company offering the service
Monitoring services do just that, Monitor. They notify you that the nightmare is beginning but do nothing to help you recover. The real headache associated with Identity Theft is the cost of the 600 Hours* it takes you to restore your identity.
Monitoring credit activity is the single best method available to detect identity theft, but … Industry Response * USA Today, January 2005
These services only provide guidance , leaving you to clear your good name
It takes you an average of 600 hours of work to clear your name, if you can
Resolution Services provide phone consultation for you, which is vital . but it is not enough… Professionals steal identities. Doesn’t it just make sense to have professionals restore your identities? Industry Response
Restoration means that experienced professionals — not you — do the work to clear your name
These services can save hundreds, to thousands of hours of effort …
Restoration Services provide tremendous relief to you Industry Response Restoration Services provide incredible support, but they don’t include monitoring services or legal advice, particularly 24-hour legal access in the event you are being arrested for crimes you didn’t commit.
The Best Answer An Identity Theft –Legal Benefit Plan for your Family and your Business similar to a Medical, Dental Plan The Best Answer Dan Cassin CITRMS, CLTFD ID entity T heft
Three Areas of Coverage for ID Theft The Best Answer Identity Theft Protection Access to Legal Counsel Professional Restoration Services Continuous Credit Monitoring
Vehicle Defense Legal Counsel Fed Audit Tax/ Legal Counsel On All Other Legal Counsel The Best Answer Pro-active Calls/ Ltrs & Legal Counsel Trial Defense Counsel - 60 hrs 5 Areas of Coverage of the Life Events Legal Plan 25% Discount
The Legal Shield membership will not apply if the member is alleged to be under the influence of or impaired by alcohol, intoxicants, controlled substances, chemicals or medicines, whether prescribed or not; the member is alleged to be involved with domestic violence or stalking; and/or assistance in making, posting, or obtaining bond, bail or other security required for release. Check benefit availability in your state. Legal Shield
The Legal Shield gives your family 24-hour access to legal advice for only $1 a month for the following situations:
If you are detained by a law enforcement officer
If you are injured in an accident
If authorities attempt to remove your child from your home or custody
If you are served with a warrant
To contact your Provider Law Firm, simply call the toll-free number on your Legal Shield card. You will reach the Pre-Paid Legal offices, who will then put you in contact with your Provider Law Firm, so you can consult with an attorney about your detainment. It’s that easy. [DNA in DUI, Criminal Activity.] The Best Answer
ID Theft Monitoring Services Life Events Legal Plan w/ Legal Shield Identity Restoration Services You A Complete Wall of Security The Best Answer
Pre-Paid Legal Services ® , Inc. and Kroll Background America provide The Best Answer: Harland C. Stonecipher CEO and Founder, Pre-Paid Legal Services, Inc. The Best Answer SHIELD ID entity T heft TM with the Pre-Paid Legal Employee Benefit Plan
Pre-Paid Legal Services ® , Inc. is the only company with a suite of products that provides help in every phase of Identity Theft – before, during, and after the crime occurs… The Best Answer
A 35 year old Company NYSE: PPD
Pre-Paid Legal Services ® , Inc. and subsidiaries Thank You!