Identity Theft Consumer Seminar


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Identity Theft Consumer Seminar

  1. 1. Identity Theft Consumer Seminar
  2. 2. Identity Theft How does Identity Theft happen? What is Identity Theft? What is the impact on the victim?
  3. 3. Research Federal Trade Commission Identity Theft Victim Compliant Data January 1- December 31 2005 Federal Trade Commission 2006 Identity Theft Survey Report November 2007 Center for Identity Management and Information Protection October 2007 Identity Theft Resource Center Identity Theft: The Aftermath Study 2006
  4. 4. How Does Identity Theft Happen? Identity Theft: is a random event that you cannot prevent and most victims don’t know how it happened.
  5. 5. How Does Identity Theft Happen? Thieves may: • steal your wallet or purse. steal your personal information through email or the phone by saying they’re from a legitimate company and claiming that you have a problem with your account. This practice is known as “phishing” online, or “pretexting” by phone • steal your credit or debit card numbers by capturing the information in a data storage device in a practice known as “skimming.” They may swipe your card for an actual purchase, or attach a device to an ATM machine where they may enter or swipe your card. • get your credit reports by abusing the authorized access that was granted to their employer, or by posing as a landlord, employer, or someone else who may have a legal right to your report. • rummage through your trash, the trash of businesses, or public trash dumps in a practice known as “dumpster diving.” • steal personal information they find in your home. • steal your mail, including bank and credit card statements, credit card offers, new checks, and tax information. • complete a “change of address form” to divert your mail to another location.
  6. 6. How Does Identity Theft Happen? Identity Theft Resource Center The following criteria have been used by the Identity Theft Resource Center in the formulation and development of its breach list. Criteria for personal identifying information: Any name or number that may be used, alone or in conjunction with other information, to identify a specific individual including: Name, Social Security number, date of birth. Banking or financial account number, credit card or debit card number with or without PIN, official State or government issued driver’s license or identification number, passport identification number, alien registration number, employer or taxpayer identification number, or insurance policy or subscriber numbers unique biometric data electronic identification number, address or routing code or telecommunication identifying information or device The list does NOT include occurrences when just a name, phone number and address (home or email) are exposed. A breach may be the loss or theft of paper or electronic data
  7. 7. How Does Identity Theft Happen? Identity Theft Resource Center 2008 Breach List: 9/23/2008 Report Date: Breaches: 503 Exposed: 30,381,211 # of # of Category In Ohio Breaches Records Government/ Aon. Consulting-Park National 2,000 74 796,507 Ohio Workers Compensation 49 Military Reynoldsburg Schools 4,000 Case Western Reserve Univ. 1,160 Ohio State University 192 University of Toledo 192 Educational 106 714,418 Bowling Green 0 Franklin University 6,440 University of Toledo Nursing 180 University of Akron 800 Medical/ Ohio Centers for Osteo. 492 74 5,908,254 Health Sanctuary at Tuttle Crossing 0
  8. 8. How Does Identity Theft Happen? Categories of Breaches and Totals # of # of Category In Ohio Breaches Records Banking/ Union Mortgage 0 58 17,230,857 Financial Franklin Savings Security Bank 25,000 Ohio Police & Fire Pension 13,000 Delphi 2,600 Nationwide- Farm Bureau 10,000 Business 182 5,603,571 Blue Flame Gas 0 Kenyon College Village Inn 32 Rev. Donald Robinson Subcontractor 49 7,969.491 None
  9. 9. How Does Identity Theft Happen? Categories of Breaches and Totals # Of Category # Of Records Breaches Electronic 360 21,531,952 Paper 89 559,386 Accidental Exposure 62 634,902 Hacking 58 4,822,964 Insider Theft 70 3,919,541 Data On The Move 95 10,366,859 Subcontractor 49 7,969.491
  10. 10. How Does Identity Theft Happen? How Information Was Obtained 2006 Identity Theft Survey Report / Page 30 16% 7% 5% Don’t Know How Info Was Taken Some Other Way Phishing 5% Hacking Into Computer 56% From The Mail Company Had Information Don’t Know From Wallet 7% Purchase Or Other Transaction How Info Know Thief Personally Was Taken
  11. 11. How Does Identity Theft Happen? Personal Relationship With Thief 2006 Identity Theft Survey Report / Page 28 8% 2% 6% Don’t Personally Know Family Member / Relative Co-Worker Friend, Neighbor, In-Home Worker 84%
  12. 12. How Does Identity Theft Happen? Geographical Scope Identity Fraud Trends and Patterns / Page 29 35% 5% 35% 35% 35% 26% 26% Interstate Within State Local International
  13. 13. Identity Theft: What Is It? Identity Theft: is a crime that can effect anyone, and it can have substantial negative consequences. Legal Definition: Under the Fair and Accurate Credit Transactions Act of 2003, Identity Theft means: “A fraud committed or attempted using the identifying information of another person without authority.”
  14. 14. What is Identity Theft? Five Common Types of Identity Theft Drivers License Identity Theft Social Security Identity Theft Medical Identity Theft Character/Criminal Identity Theft Financial Identity Theft Identity Theft is not just about Credit Cards!
  15. 15. 0% 10% 20% 30% C re di tC ar Te d 26% le U ph What is Identity Theft? til o iti ne es & 18% Ba nk Fr au Em d p 17% R lo el ym at e G ed n ov t B ern 12% en m ef en its t Fr Do au cs d ./ 9% Lo an O Fr th au er d 5% Id Identity Theft Victim Compliant Data January 2006 / Figure 4 en tit y How Victim’s Information Is Misused Th ef t 25% Id Att en em tit p y te Th d 6% ef t
  16. 16. What is Identity Theft? • Estimate the prevalence of Identity Theft theft victimization • Measure the impacts of Identity Theft theft on the victims 2006 Identity Theft Survey Report Table 1/ Executive Summary The study was conducted through telephone interviews using a Random-Digit-Dialing (RDD) sampling methodology. This system was designed to obtain a random sample of U.S. adults age 18 and older. A total of 4,917 interviews were conducted between March 27 and June 11, 2006 Percent of Number of Adult Persons Population (Millions) New Account & Other Fraud 0.8% 1.8 Misuse of Existing Non-Credit Card Account or 1.5% 3.3 Account Number Misuse of Existing Credit Card or Credit Card Number 1.4% 3.2 Total Victims in 2005 3.7% 8.3
  17. 17. What is Identity Theft? New Accounts Opened By Identity Thieves 2006 Identity Theft Survey Report / Page 19 20% 16% 12% 8% 8% 7% 4% 3% 2% 2% 1% 1% 0% s ds ce s s e s g nt s nt nc an in vi ar ou nt e ra av r Lo tC ou ym Se cc su /S di cc a e A In A et P re on g er in o C ph ut th rn ck A O le te he Te In C
  18. 18. What is Identity Theft? Other Misuses of Information 2006 Identity Theft Survey Report / Page 21 50% 40% 30% 20% 10% 5% 3% 2% 1% 1% 1% 0% ng t e e t s n lic en ar se ts e si en rnm Po C m u ou is oy al To tH um ve M ic pl ed oc o er en en Em D nG th M R iv O G ai bt O
  19. 19. What is Identity Theft? Identity Theft Complaints Received by the FTC Source: Federal Trade Commission- Identity Theft Clearinghouse Percentage Calender Year Increase From Identity Theft Complaints 2002 2003 2004 2005 2006 2007 2002-2007 Total 161,819 214,905 246,882 255,627 246.124 258,427 60% Fraudulent Tax Returns 3,081 8,041 9,563 12,165 15,442 20,782 579% Percent of Total 1.9% 3.7% 3.9% 48% 6.3% 8.0% Employment-Related 15,089 24,084 31,379 31,094 33,869 35,343 134% Percent of Total 9.3% 11.2% 12.7% 12.2% 13.8% 13.7%
  20. 20. Identity Theft: What is the impact? The impact on the victim can be financial, emotional, can last for an extended period of time, and have a negative effect on their productivity.
  21. 21. What Is The Impact of Identity Theft? Non-Account Identity Theft Victim Experience 2006 Identity Theft Survey Report / Page 64 100% 80% 60% 48% 44% 40% 36% 30% 29% 25% 24% 20% 17% 10% 6% 0% s n ff s n r d s n or m e m io tio O m ile tio th ct e e ct le ut ec bl tF bl a O le le ob ig C o o ej ol ol ui Pr st Pr s Pr R tC C lS tie ve ng an it ce t eb i vi di d In til Lo ki re an Ci re D U al an C C ur y in B B d s rim te In d se ea C as ep ar R H
  22. 22. What Is The Impact of Identity Theft? Problem Resolution 2006 Identity Theft Survey Report / Page 25 100% No Problems or Within 1 Day Resolved Within 2-6 Days Resolved Within 7-30 Days Resolved Within 1-2 Months Resolved In 3+ Months Misuse Problems Are Ongoing 80% 60% 38% 40% 37% 26% 20% 18% 20% 15% 17% 15% 17% 14% 10% 10% 11% 10% 8% 6% 6% 5% 0% New Acconts & Other Fraud Other Existing Account Existing Credit Card Only
  23. 23. What Is The Impact of Identity Theft? Problems Experienced 2006 Identity Theft Survey Report / Page 41 100% New Accounts and Other Fraud Other Existing Accounts Existing Credit Card Only 80% 60% 40% 20% 0% n n r s s ff d s n io io to er m em m ile tio O at ct c th le le le ut tF ig le ec bl ob O ob ol C ol st ro ej ui Pr C Pr tC ve es R tP lS y e In iti an ng di B di vi nc til re al Lo ed re ki Ci ra U in C an C s su rim as d B te In ar C ea H ep R
  24. 24. What Is The Impact of Identity Theft? Biggest Challenges Of The Experience 2006 Identity Theft Survey Report 100% 80% 60% 40% 38% 34% 20% 26% 8% 0% Dispute Resolution Consequences Emotional Impact Other Process
  25. 25. What Is The Impact of Identity Theft? The typical victim of identity theft will spend on average 600 hours restoring their credit and good name. 8 hours per day 5 days per week for 3 months USA TODAY, January 2005
  26. 26. Identity Theft: What is the impact? The impact on the victim can be financial, emotional, can last for an extended period of time, and have a negative effect on their productivity.
  27. 27. What Is The Impact of Identity Theft? Problem Resolution 2006 Identity Theft Survey Report / Page 25 100% No Problems or Within 1 Day Resolved Within 2-6 Days Resolved Within 7-30 Days Resolved Within 1-2 Months Resolved In 3+ Months Misuse Problems Are Ongoing 80% 60% 38% 40% 37% 26% 20% 18% 20% 15% 17% 15% 17% 14% 10% 10% 11% 10% 8% 6% 6% 5% 0% New Acconts & Other Fraud Other Existing Account Existing Credit Card Only
  28. 28. What are the tools for protection? Fraud Alert Credit Freeze Credit monitoring Free Credit Report Home owners insurance Restoration service Resolution service Opt- out services
  29. 29. Fraud alerts A fraud alert is a signal placed in your credit report or credit file to warn potential creditors that they must use what the law calls “reasonable policies and procedures” to verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they may not prevent the misuse of your existing accounts. Under the federal Fair Credit Reporting Act (FCRA), you may be entitled to two kinds of free fraud alerts: initial and extended. You may ask a consumer reporting company to place an initial fraud alert on your credit report if you suspect you have been, or are about to be, a victim of identity theft. This may be appropriate after your wallet or another source of personal information is lost or stolen. An initial fraud alert is good for 90 days, and can be renewed when appropriate. To place an initial fraud alert, call the toll-free fraud number of any one of the three national consumer reporting companies. The company you call is required to contact the other two; they, in turn, will place an alert on their versions of your report. Expect to receive a confirmation from each of the companies.
  30. 30. Fraud alerts When you place an initial fraud alert on your credit report, you’re entitled to order one free credit report from each of the consumer reporting companies; if you ask, only the last four digits of your Social Security number will appear on your reports. If you have been a victim of identity theft, you may ask for an extended alert, which stays on your credit report for seven years. To get an extended fraud alert placed on your report, you will need to contact one of the credit bureaus, and provide an Identity Theft Report, such as a police report or other report to a law enforcement agency, including a report to the FTC. If your credit report has an extended alert, potential creditors must contact you in person, or by phone or some other method you have provided before they can issue credit in your name. When you place an extended alert on your credit report, you’re entitled to two free credit reports from each of the consumer reporting companies within 12 months. In addition, the consumer reporting companies must remove your name from marketing lists for pre-screened offers of credit for five years — unless you ask them to put your name back on the list.
  31. 31. Credit Freezes A credit freeze allows you to restrict access to your credit report. If you place a freeze on your report, potential creditors and certain other people or businesses can’t get access to it unless you lift the freeze temporarily or permanently. Limiting access to your credit report makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors will need to view a credit file before opening a new account; if they can’t see the file, they may not extend the credit. Still, a credit freeze may not prevent the misuse of your existing accounts or certain other types of identity theft. A credit freeze is different from a fraud alert in a number of ways. A freeze generally stops all access to your credit report, while a fraud alert permits creditors to get your report as long as they take steps to verify your identity. The availability of a credit freeze depends on state law or a consumer reporting company’s policies; fraud alerts are federal rights intended for consumers who believe they may have been, or actually have been, victims of identity theft. And some states charge a fee for placing or removing a freeze, although it is free to place or remove a fraud alert.
  32. 32. Credit Freezes Most states have laws that allow consumers to place a credit freeze with consumer reporting companies. In many of these states, any consumer can freeze their credit file; in others, only identity theft victims can freeze their files. The cost of placing a credit freeze and the lead times vary. In many states, credit freezes are free for identity theft victims; other consumers typically are charged about $10 per credit reporting company. Contact your state attorney general for the particulars of your state’s freeze laws. And be aware that the three major credit reporting companies have begun offering credit freezes directly to consumers — for a fee — regardless of whether their state has a freeze law. Placing a credit freeze does not: affect your credit score,keep you from getting your free annual credit report, keep you from buying your credit report or score, applying for a job, prevent you from opening a new account yourself,renting an apartment, buying insurance, In these situations, the business usually needs to review your credit report. You can ask the consumer reporting company to lift your credit freeze temporarily, or remove it altogether. But the cost and lead times to lift or remove a freeze vary, so it’s wise to check with your state authorities or with a consumer reporting company in advance if possible.
  33. 33. Ohio Security freeze rights established by state law Eligibility: All consumers. Fees: No fee for identity theft victims. All others pay $5 to place the freeze,temporarily lift, or remove the freeze altogether. Effective date of law: September 1, 2008 for the security freeze provisions. Permanent freeze remains until removal requested by consumer. Free Credit Reports Federal law gives every consumer the right to one free credit report from each nationwide consumer reporting company every 12 months. Staggering these reports — that is, getting a report from a different company every few months — can help you monitor activity on your credit reports.
  34. 34. Identity Theft Protection Products and Services for Sale Identity theft protection companies offer a range of products and services for sale. Some allow you to “lock,” “flag,” or “freeze” your credit reports. Often, the companies advertising these services simply are offering to place a fraud alert or credit freeze on your report. These services also may renew or update your alerts or freezes automatically, as long as you continue to pay. Under the law, initial fraud alerts and renewals are available for free if you have reason to believe you have been — or are about to be — a victim of identity theft. Credit Monitoring Some companies, including consumer reporting companies, offer subscriptions to credit monitoring services. These services track your credit report, and generally send you an email alert reflecting recent activity, such as an inquiry or new account. Typically, the more frequent or more detailed the report, the more expensive the service. Restoration And Resolution Some companies offer services to help you rebuild your identity in the event of identity theft. Typically, these services operate by obtaining a limited power of attorney from you, which enables the company to act on your behalf when dealing with consumer reporting companies, creditors, or other information sources. Opt-out Many companies may offer additional services, including removing your name from mailing lists or pre-screened offers of credit or insurance, representing your legal interests, “guaranteeing” reimbursement in the event you experience a loss due to identity theft, or helping you track down whether your personal information has been exposed online. Before you agree to pay for any of these services, read the fine print. You can get some of them yourself at no cost: for example, if you decide you don’t want to receive pre-screened offers of credit and insurance,
  35. 35. Home Owners Insurance For just $25 per year. If you become a victim of identity theft, this program provides you with access to a consumer fraud specialist, who can guide you through the process of reclaiming your identity, including: Obtaining a free credit report from the three major credit reporting agencies Placing fraud alerts with all three credit reporting agencies Enrolling you in six months of daily credit monitoring Completing dispute letters on your behalf for approval and signature. This coverage will also reimburse you up to $25,000, with no deductible, for the expenses associated with clearing your name and repairing your damaged credit, such as: Lost wages (up to $1,000 a week for a maximum of 5 weeks) Reasonable attorney fees incurred, with Travelers prior approval Daycare and eldercare expenses Notary and certified mailing charges Loan re-application fees, and Long distance phone charges.
  36. 36. Credit Card 1 Upgrading your membership is a quick and simple process. In minutes you will be able to view your credit reports, your credit scores, and gain access to important resources and articles to assist you in improving your credit knowledge. UNLIMITED 3 Bureau Credit Reports UNLIMITED Credit Scores from all 3 national credit bureaus Daily monitoring of three national credit reports E-mail alerts of key changes in any of your reports Alerts of key changes in any of your reports sent by mail Reimbursement of up to $5,000 and no deductible Not available to residents of New York State. Toll-free customer care available Online, safe, and secure form to store all your document information Your Credit Score is tracked and graphed month by month Online access to credit articles on topics covering the basics and more The score simulator provides a look at the factors that impact your score The calculators are based on your input and are available in categories from deb
  37. 37. Credit Card 2 What you get • Alerts that notify you when new accounts are opened, inquiries are made, or address changes occur in your credit file. • Secure, 24/7 online access to your credit bureau reports, scores and analysis • Toll-free access to fraud and credit education specialists who offer help if you suspect you're a victim of identity theft. • ID Theft and Expense Reimbursement Coverage for certain expenses up to $25,000. • Online tools to help you understand and manage your credit and finances, plus ways to improve your credit score. Costs • Free 30-day trial and $12.95 a month thereafter when you enroll, which will be automatically billed to your credit card.
  38. 38. Credit Card 3 HELP PROTECT YOURS WITH COMPREHENSIVE IDENTITY THEFT PROTECTION. On Guard. 24/7 credit information monitoring Timely. Automatic notification of changes to your credit file Responsive. Your personal Chase representative to help you in the event of fraud Valuable. $100,000** identity fraud expense reimbursement paid for by Chase Comprehensive. Unlimited access to credit reports and scores Affordable. Only $11.99 a month* $11.99 a month. Restoring your name and credit can be a time-consuming and expensive process. With Chase Identity ProtectionSM, you're backed by up to $100,000* in fraud expense reimbursement for certain eligible expenses, such as: Lost wages*** Pre-approved legal defense fees and expenses Costs for re-filing loan applications Costs for notarizing documents, long-distance phone calls and postage ***Lost wages of up to $1000 per week for a maximum period of five weeks.