Identity Theft Consumer Seminar

Identity Theft
Consumer Seminar

Identity Theft
How does Identity Theft happen?

What is Identity Theft?

What is the impact on the victim?

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

How Does Identity Theft Happen?

Identity Theft:
is a random event that you cannot
prevent and most victims don’t know
how it happened.


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.


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


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


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


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


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


Personal Relationship With Thief

8%
2%
6%

Don’t Personally Know
Family Member / Relative
Co-Worker
Friend, Neighbor, In-Home Worker

84%


Geographical Scope
Identity Fraud Trends and Patterns / Page 29

35%
5%

35%
35%
35%

26%

26%
Interstate Within State
Local International

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.”


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!

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Identity Theft Victim Compliant Data January 2006 / Figure 4

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• Estimate the prevalence of Identity Theft theft victimization
• Measure the impacts of Identity Theft theft on the victims

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


New Accounts Opened By Identity Thieves

20%

16%

12%

8%
8% 7%

4% 3%
2% 2%
1% 1%
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Other Misuses of Information

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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%

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.

What Is The Impact of Identity Theft?

Non-Account Identity Theft Victim Experience
100%

80%

60%
48%
44%
40% 36%
30% 29%
25% 24%
20% 17%
10%
6%

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Problem Resolution

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


Problems Experienced

100% New Accounts and Other Fraud
Other Existing Accounts
Existing Credit Card Only
80%

60%

40%

20%

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Biggest Challenges Of The Experience

100%

80%

60%

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38% 34%
20% 26%

8%
0%
Dispute
Resolution Consequences Emotional Impact Other
Process


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

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

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.

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.

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.

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.

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.

www.AnnualCreditReport.com

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,

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.

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

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.

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.

Identity Theft Consumer Seminar

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