Idt Jc 02 09

Presented by Joe Nollet
Certified Identity Theft Risk Management Specialist
Independent Associate, Pre-Paid Legal Services, Inc.,and Identity Theft Shield

Question…
What is the Nation’s
Fastest Growing Crime?

Identity Theft is not just about Credit Cards! ID Theft is an international crime and access to an attorney may be critical What is Identity Theft?
Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. Identity Theft includes:

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? 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.” “ People need to wake up to this problem. They are destroying people’s credit, Social Security benefits, and everything else.”

Medical Identity Theft What is Identity Theft?

Medical Identity Theft
Thieves use your information for insurance benefits, R x , Medicare, Medicaid benefits, or for medical tests
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…)

Character / Criminal Identity Theft What is Identity Theft?

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

Character / Criminal Identity Theft
Thieves mask their criminal activity behind your identity
What is Identity Theft? after the September 11th terrorist attacks, it was determined that the attacks were funded in large part through fraudulently obtained credit cards, and nine of the terrorist operatives reportedly entered the United States using falsified visas and stolen or fraudulent identities.

What is Identity Theft? Character / Criminal Identity Theft A woman who identified herself as Alianiss Nunez Morales, 23, of Minnesota failed to stop at a stop sign before hitting a bus carrying 28 students from Lakeview School Four students were killed "THE ONLY NAME WE HAVE FOR HER IS THE NAME SHE GAVE US WHEN SHE WAS BOOKED," Officer Arnold said. -Minnesota Herald, February 22, 2008 -

Financial Identity Theft
Thieves rob your accounts
They rack up outrageous charges on credit cards, take out new loans, and more
They destroy your credit, forcing you to pay higher rates
You could 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

Financial Identity Theft What is Identity Theft?

What is Identity Theft? Character / Criminal Identity Theft What if they took… … a name out of a phone book in Iowa … a Driver’s License number out of a DMV data base … and YOUR Social Security number and CREATED a new person? -

What is Identity Theft? Character / Criminal Identity Theft It’s called SYNTHETIC or MOZAIC IDENTITY THEFT and it is becoming a nightmare! -

“ Thieves are so bold that they held a conference in Kiev, Ukraine, for people interested in breaking into this Growth Industry” How do they get your information? - USA Today

How do they get your information? Phishing Facts 886 – The average dollar loss per Phishing Victim (Gartner, Dec 17, 2007) 3.6 Billion – The total dollar loss of all phishing victims over a 1 year period (Gartner, Dec 17, 2007) 3.2 Million – The number of people who fell victims to phishing scams over that same 1 year period (Gartner, Dec 17, 2007) 8.5 Billion – The estimated number of phishing e-mails sent world-wide each month (SonicWALL, 2008) 32,414 – The number of phishing web sites that were operational in May 2008 (Anti-Phishing Working Group) New attack is now called Spear Phishing!

“Residents with mailboxes should pick up
their mail as soon as it has been
delivered.”- Officer Kingman, SLT Police Department
Tahoe Daily Tribune, February 21, 2008 Photo by Jim Grant
Mail Theft

How do they get your information? The DataBased You Meet The DataBased You ™ ™

How do they get your information? 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

Are you in their data base?
United Blood Services
The Veterans Administration
Choice Point
AOL
DSW Shoe Warehouse
Lexis Nexis
IRS

What is Identity Theft? The Cost of Identity Theft (ITRC) In 2008, there were 656 data breaches with over 35.5 million personal records compromised

What is Identity Theft? The Cost of Identity Theft In 2009, there has already been 45 data breaches with over 33,144 personal records compromised (ITRC, 02/03/09)

What is Identity Theft? On Average it takes 44 months and over 600 hours of work to restore your identity (AIG, 2008) The Cost of Identity Theft

37% of victims reported experiencing problems other than out-of-pocket expenses or loss of time -FTC 2006 IDT Survey Report The Cost of Identity Theft

The Cost of Identity Theft
Problems include:
Harassment by collection agents
Having utilities shut off
Being subjected to criminal Investigation or civil suit
Emotional problems

To put it in Perspective
Last Year in the United States
15,000 Murders
500,000 Armed Robberies
15 Million Identity Thefts
Less than 3% of Identity Thieves were prosecuted

Identity Theft Resource Center Statistics
There will be a NEW Identity Theft victim every 2-3 seconds This Year!
Average length of time before you find out you are a victim is 12-18 months (FTC)
Over 53 BILLION dollars lost per year

The cost of 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 .”**
*2/18/04 ** Pg.2 *** Pg. 3 NOTE: The FACTA law states clearly that the Korinke family must assume the liability in this case

The cost of Identity Theft *Pg. 19
An excerpt from the report:
“ 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 could owe the money.
See page 13 for additional information

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 can hold them fully responsible if not reported within 60 days… The Cost of Identity Theft

The Cost to Businesses
Employees can take up to 600 hours to restore their identities
Must spend regular business hours to resolve
Not as productive or focused
Take more sick leave
Safety problems…workers comp claims increase
The Cost of Identity Theft *CIO Magazine, The Coming Pandemic , Michael Freidenberg, May 15 th , 2006

According to the National Computer Security Survey, 32,000 businesses were asked to participate in a survey about cybercrime.
Of the 7,818 businesses that responded, 67% detected at least one cybercrime in 2005. The monetary loss for these businesses totaled $867 million.

Surveys indicate that personal issues account for 68% of employee absenteeism. Many which are legal issues.
Studies also show that employees with legal problems usually:
Are absent 5 times more than average
Use their medical benefits 4 times more than average
Use sick leave 2 times as often as the average employee
Experience a substantial reduction in their productivity

Think you’re not at risk?
The top States for victims have been
New York
California
Sacramento ranks second in the state
Nevada
- Reno ranks first in the state
Arizona
Washington
Texas

What can you do?
Shred everything and dispose of
carefully!
ASK! Why do you need my Social
Security number, driver’s license, etc.?

What if someone calls…
…and says you missed jury duty, they are your banker, can lower interest rates, or they are from the IRS or FBI
Never give info over the phone unless you are positive of the person to whom you are speaking! Mom might be ok !

Be aware!
Monitor Your:
Mail
Credit cards
Social Security card
Driver’s license
Passport
Access to your home, car, etc.
Computer, cell phone, Blackberry, etc.

Understand what you are getting when you buy identity theft protection products

The 3 “ MUST HAVES” in any Policy or Service
Continuous Credit Monitoring
Total Restoration
Access to legal counsel
Identity Theft Prevention

Even if you are careful, consider…
A service to monitor your information for you on a daily basis
A service that will do the work for you if you need to restore your credit, clear up a criminal record, or correct medical records

We all pay!
Multi-billion dollar international business
Costs are passed to consumers
You or your employees take time off work to deal with identity theft

F.A.C.T.A.
HIPAA Security Rule
Gramm, Leach, Bliley Safeguard Rule
Individual State Laws
Important Legislation… Important Legislation

“ We’re not looking for a perfect system,’ Broder says. ‘But we need to see that you’ve taken reasonable steps to protect your customers’ information.’”
- “Stolen Lives”, ABA Journal , March 2006

‘ Someone, Is Watching You’ No One is Immune, You Must be Diligent to Protect Your Family & Your Good Name!

Free Business Risk Assessment
I am offering a FREE Business Risk Assessment to you and or your office staff.
The assessment will show how your business is exposed to potential penalties, fines and lawsuits as a result of not being compliant with FACTA, OSHA, FCRA, GLB, HIPAA & ADA. A series of simple multiple-choice questions are answered by you that leads to the creation of a report based on those answers.
This Assessment covers five areas of risk:
facilities,
labor,
identity theft,
financial and
business entity.
The Business Risk Assessment is accessed over the Internet.

Give the thief some grief!
Schedule an identity theft seminar for your employees or organization today!
Joe Nollet, Certified Identity Theft Risk Management Specialist,
Pre-Paid Legal Services, Inc. Identity Theft Shield by Kroll Risk Management International, Independent Associate

Idt Jc 02 09

by jwnollet on Jun 06, 2009

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Idt Jc 02 09 — Presentation Transcript