The document discusses identity theft, specifically as it relates to members of the military. It provides statistics on identity theft complaints within the military, noting that the majority come from the Army and Navy. It also shares that the most common types of identity theft reported by the military involve government documents/benefits fraud and credit card fraud. The document then gives an overview of steps someone can take if they believe they are a victim of identity theft, such as placing fraud alerts on credit reports and disputing unauthorized charges or accounts.

1. The United States Military
Academy at West Point:
Identity Theft and the Fair Credit
Reporting Act
March 9, 2016
Adam G. Singer
Law Office of Adam G. Singer, PLLC
NYC: 60 E. 42nd Street, Suite 4600, New York, NY 10165
Rockland: 254 S. Main Street, Suite 516, New City, NY 10956
Westchester: 445 Hamilton Avenue, Suite 1102, White Plains, NY 10601
T: 212.842.2428
F: 212.658.9682
E: asinger2@alumni.law.upenn.edu
L: www.linkedin.com/in/adamgsinger

2. Identity Theft
Quick Poll:
1. How many
attorneys have
counseled
clients on ID
theft?
2

3. Quick Poll continued
2. How
common do
you believe the
problem to be
within the
military?
3

4. I. Statistics on ID Theft
4

5. Identity Theft and Military
• In 2014 the Consumer Sentinel Network received 87,400
complaints across all military branches, 48% being from the
U.S. Army and 21% from the U.S. Navy: Source: FTC 2015
• Military Retirees/Veterans filed the most complaints to the
FTC, followed by Active Duty Service Members and
Dependent Spouses of Services Members: Source: FTC
2015
• 27 % of complaints among Military members pertained to
Identity Theft while 26 % related to Impostor Scams Source:
FTC 2015
5

6. Identity Theft and Military
• Enlisted Military consumers account for 23% of Identity
Theft complaints Source: FTC 2015
• Officer Military consumers account for 27 % of Identity
Theft complaints Source: FTC 2015
• The most common types of Identity Thefts reported include
Government Documents/Benefits Fraud 44.7% and Credit
Card Fraud 16.7% Source: FTC 2015
• Debt resulting from Identity Theft contributed towards 41%
of Debt Collection Complaints Source: CFPB Report 2015
6

7. Identity Theft and New York
• Identity Theft Complaints Count from
New York Victims = 15,959 Source: FTC
2015
• NY state is ranked 17th nationally in
terms of Identity Theft complaints
Source: FTC 2014
• Identity Theft Types Reported include
Government Documents/Benefits Fraud
31% and Credit Card Fraud 24% Source:
FTC 2015
7

8. Identity Theft and Credit Reports
• 1.4 % of victims discovered Identity Theft through
credit report/credit monitoring service
• Source: Bureau of Justice Statistics, National Crime Victimization Survey, Identity
Theft Supplement, 2014
• Of the 8% of identity theft victims who contacted
a credit bureau, 68 % placed a fraud alert on their
credit report, while 18% provided a police report
to the credit bureau
• Source: Bureau of Justice Statistics, National Crime Victimization Survey, Identity
Theft Supplement, 2014
8

9. More Information About
Statistics on ID Theft
• Substantially more detail is available at the
original FTC and CFBP sources:
• https://www.ftc.gov/enforcement/consumer-
sentinel-network/reports
• http://files.consumerfinance.gov/f/201403_cf
pb_snapshot-report_complaints-received-
servicemembers.pdf
9

10. II. Identity Theft Basics
10

11. A. How ID Theft happens
Identity thieves commit their crime in several
ways:
• Steal credit card payments and other outgoing
mail from private, curbside mailboxes.
• Dig through garbage cans or communal
dumpsters in search of cancelled checks,
credit card and bank statements, and
preapproved credit card offers.
11

12. How ID Theft happens (cont’d)
• Hack into computers that contain personal
records and steal the data.
• File a change of address form in the victim’s
name to divert mail and gather personal and
financial data.
• Source: National Crime Prevention Council
12

13. B. Obtaining ID Theft Documents
1. Pursuant to FCRA 609e:
• Victim is entitled to copies of transaction
records related to theft of identity, such as
applications for credit; and
• Victim can also authorize law enforcement to
receive records directly, without need for
subpoena.
• however no private cause of action for
damages if violated
13

14. Obtaining ID Theft Documents
(cont’d)
2. Also, standard civil subpoena should work
14

15. C. Preventing ID Theft
• Extensive information in written materials and
online about prevention
• Note: if a client has reason to suspect ID theft,
visit this FTC site for detailed information
tailored to the source of the theft (bank
account, credit card, driver's license, etc.):
– https://www.identitytheft.gov/Info-Lost-or-Stolen
15

16. Preventing ID Theft (cont’d)
• highlight on Active Duty Alerts for Military
Personnel
– if deployed, place active duty alert on your credit
report
– will minimize the risk of identity theft
– last for one year if the point is longer than one year,
renew the alert
– only need to contact one credit reporting agency
which will then notify the other two national credit
reporting agencies
– removal from prescreened credit card offers for two
years
16

17. III. Detecting or Suspecting ID Theft
17

18. A. Red Flags for ID Theft
• Collection letters / calls
• Filing of lawsuit against client
• Notice of a judgment even where client never
received notice of a lawsuit
• A notice from the IRS someone used the client's
Social Security number
• Mail, e-mail, or calls about your accounts or jobs
in your minor child's name
• Businesses reject your checks
• Unexpectedly turned down for a loan or a job
18

19. B. Special Note About Credit Reports
• First, determine if it is it ID theft?
– Not all unknown debts on a credit report indicate ID
theft.
– Start by examining the credit report
• Well, what else could it be when unknown debts
appear on a credit report?
– vs. mixed file?
• Are there addresses not associated with this
person?
– If yes, it may be a mixed file
19

20. C. What if a Family Member is the
ID Thief? A Word of Caution
• Recognize that proceeding further presents a
reasonable possibility of prosecution
• Be sure client wants to proceed knowing this
• If family member is estranged or very bad
blood, it can be a good case so long as client is
committed to seeing the process through
20

21. IV. If it is ID Theft . . .
21

22. A. Triage -- First Things First
1. Call creditors to close accounts
2. Fraud alert
– Contact one credit bureau who then will forward
the information to the other two national bureaus
– Provide proof of identity
– Fraud alert remains for 90 days and permits one
free copy of your credit report from each of the
three national bureaus
22

23. Triage (cont’d)
3. Credit Report Freeze
• Prevents potential creditors from accessing your credit
report
• Thus reduces the likelihood that an identity theft can
open new accounts under that name
• In some states it is free; in others there is a small fee
• Does not affect your credit score
• May temporarily lift the freeze to apply for specific credit
• Also may permanently thaw the freeze at any time
23

24. Triage (cont’d)
4. Documents to prepare:
The Identity Theft Report
Identity theft report =
(identity theft affidavit + police report)
24

25. Triage: Police Report
• Police Report -- first and most important step
NY Executive Law § 646(2)
Identity theft victims may file a complaint:
• “In the county in which any part of the offense took place”;
• “In the county in which the person who suffered financial
loss resided”; or
• “In the county where the person whose personal
identifying information was used … resided.”
• Also says the police: – “shall take a police report of the
matter and provide the complainant with a copy of such
report free of charge.” Unfortunately, the police often
apply other standards.
25

26. Triage: Police Report (cont’d)
At the precinct:
• Write down the names and titles of all the officers you speak with.
• Later write down brief notes about the interaction. In case you have
difficulty getting the police report, these notes will help with filing a
complaint and documenting the issue.
If unsuccessful:
• Ask to see the officer’s supervisor. • Try the same precinct at a different
time of day. • Try a different precinct and ask them to write up the report
• and transfer it to the appropriate precinct for filing.
• •Try going to the state police. • Ask to file a Miscellaneous Incident Report
instead of a police report. A police report number is not generated for this
type of report as it is merely a record of non-criminal events (Last resort).
• Source: CLARO Clinic
26

27. Triage: ID Theft Affidavit
ID complaint /affidavit
form
• Available at:
https://www.consumer.ft
c.gov/articles/pdf-0094-
identity- theft-
affidavit.pdf
27

28. Triage: Review Credit Reports
Obtain and review
credit reports
– Free at
annualcreditreport.com
28

29. V. After Triage, Is it Time to Prosecute and Sue?
Criminal and Civil Liability for ID Theft
29

30. A. New York Laws
30

31. 1. Criminal Liability
165.15 Theft of services:
A person is guilty of theft of services when:
He obtains or attempts to obtain a service, or induces or attempts to induce
the supplier of a rendered service to agree to payment therefore on a credit
basis, by the use of a credit card or debit card which he knows to be stolen.
A MISD
165.17 Unlawful use of credit card, debit card or public benefit card:
A person is guilty of unlawful use of credit card, debit card or public benefit
card when in the course of obtaining or attempting to obtain property or a
service, he uses or displays a credit card, debit card or public benefit card
which he knows to be revoked or cancelled.
A MISD
31

32. Other Criminal Offenses
190.77
• Offenses involving theft of identity;
definitions.
190.78
• Identity theft in the third degree.
• A MISD
190.79
• Identity theft in the second degree.
• E FELONY
190.80
• Identity theft in the first degree.
• D FELONY
190.80-a
• Aggravated identity theft.
• D FELONY
190.81
• Unlawful possession of personal
identification information in the third
degree.
• A MISD
190.82
Unlawful possession of personal
identification information in the second
degree.
E FELONY
190.83
Unlawful possession of personal
identification information in the first degree.
D FELONY
190.84
Defenses.
190.85
Unlawful possession of a skimmer device in
the second degree.
A MISD
190.86
Unlawful possession of a skimmer device in
the first degree.
E FELONY
32

33. 2. Civil Liability -- State Law
Liability Re: Identity Theft
1. NYS Fair Credit Reporting Act (“NY FCRA”)
2. N.Y. Gen. Bus. L. § 380 et seq. (includes NYS
Security Freeze Law)
3. NYS Executive Law § 646(2) -- police reports
4. New York General Business Law § 899-aa:
Notification; person without valid
authorization has acquired private
information: Third party obligation to notify
consumers about data breaches
33

34. Civil Liability -- State Law Liability
Re: Identity Theft (cont’d)
• Negligence
– Like most negligence claims, to hold a bank or
financial institution liable, a consumer must prove:
1) The bank or credit agency committed some act that
enabled or helped the identity theft to occur;
2) That the bank or credit agency owed a duty to the
consumer whose identity was stolen;
3) That the bank or credit agency breached that duty;
and
4) That the breach was the actual and proximate cause
of the consumer's injury.
34

35. B. Civil Liability -- Federal Statutes Re: Credit Billing
and Credit Reporting (Source, inter alia, CLARO)
EFTA
• The Electronic Fund Transfer Act (EFTA), and
Regulation E, issued by the Board of
Governors of the Federal Reserve, provide
consumer protections for transactions
involving ATM or debit cards and limit liability
for unauthorized purchases or withdrawals
using ATM or debit cards. 15 U.S.C. § 1693 et
seq., 12 C.F.R. § 205.
35

36. Civil Liability -- Federal Statutes Re: Credit Billing and
Credit Reporting (Source, inter alia, CLARO)
• The EFTA sets forth three tiers of liability for unauthorized ATM or debit card uses:
• If the victim reports an ATM or debit card as lost or stolen within two business
days after she realizes the card is missing, she will not be responsible for more
than $50 total for unauthorized use. 12 C.F.R. § 205.6(b)(1).
• If the victim fails to report the lost or stolen card within two business days after
realizing the card is missing or stolen, but does report its loss within 60 days after
her statement is mailed to her, she could lose as much as $500 based on
unauthorized transfers. 12 C.F.R. § 205.6(b)(2).
• If the victim fails to report an unauthorized transfer within 60 days after her
statement is mailed, she risks unlimited loss and could lose all the money in her
account and the unused portion of her maximum line of credit established for
overdrafts. 12 C.F.R. § 205.6(b)(3).
36

37. Civil Liability -- Federal Statutes Re: Credit Billing and
Credit Reporting (Source, inter alia, CLARO)
CORRECTING ERRORS WITH ATM & DEBIT CARDS
In the event of an error in the victim’s account because of a fraudulent
transaction or the unauthorized use of an ATM or debit card, she should:
• promptly call the financial institution and point out the error, no later
than 60 days after the statement containing the error was sent
• follow-up in writing, by certified letter, return receipt requested, to
prove the institution received notice of the error
• After receiving notification of the problem, the financial institution has 10
days to investigate, must inform the victim of the results within three
business days after completing the investigation, and must correct
inaccurate information. 12 C.F.R. § 205.11(c).
37

38. Civil Liability -- Federal Statutes Re: Credit Billing and
Credit Reporting (Source, inter alia, CLARO)
FCBA: Fair Credit Billing Act (FCBA), 15 U.S.C. §§
1606-1666a
• Identity thieves often make unauthorized charges
on consumers’ credit card accounts.
• This may happen either when they steal the
actual credit card or obtain the credit card
number through other means.
• Victims of identity theft then would have errors
on their credit card statements caused by these
unauthorized charges.
38

39. Civil Liability -- Federal Statutes Re: Credit Billing and
Credit Reporting (Source, inter alia, CLARO)
• The Fair Credit Billing Act, 15 U.S.C. § 1601,
(FCBA) establishes procedures for resolving
billing errors on consumer credit card
accounts, including fraudulent charges on
accounts that have been caused by identity
theft. FCBA §§ 161-162, 15 U.S.C. §§ 1666-
1666a.
39

40. Civil Liability -- Federal Statutes Re: Credit Billing and
Credit Reporting (Source, inter alia, CLARO)
• Note: The FCBA applies only to “open ended”
credit accounts, such as credit cards and
revolving charge accounts (e.g. department
store accounts).
• It does not cover installment contracts, such
as loans or extensions of credit that
consumers repay on a fixed schedule.
40

41. Civil Liability – Fair Credit Reporting Act
41

42. Players in the
Consumer Reporting Game
Creditor #1
Pot. Creditor #2
Consumer CRA
Potential creditor requests report from CRA
42

43. Powerful Rights: Private Causes of
Action Pursuant to FCRA
dfadfad
Choose Wisely:
The FCRA Dispute Triangle
(a.k.a. The Rabbit Hole)
Furnisher (Creditor)
Consumer CRA
Valid Dispute: Consumer Disputes Directly with CRA and
CRA Transmits Creditor’s Response to Consumer
43

44. Dispute Letter
See handout
• Redacted ID Theft Dispute Letter
• Note:
–The substance of the letter
–Supporting documents
–If the credit report errors are not
fixed, who does the client sue and
why?
44

45. Credit Report Fallout -- After the
Urgent Issues . . .
Dispute Letter -- what to include pursuant to
§1681c-2(a)
• Appropriate proof of the identity of the consumer
• A copy of that identity theft report (police report
+ affidavit)
• Identification of such information by the
consumer
• Statement by the consumer that information is
not information relating to any transaction by the
consumer
45

46. I also include several handwriting samples
I, ID THEFT VICTIM, have presented my driver's license in person to the Notary Public
listed below and now affix my signature before the same Notary Public:
______________________________
ID THEFT VICTIM
Sworn to before me this _____ day
of ____________________, 2016
_______________________________
(Notary Public)
46

47. FCRA Referral to Private Attorney
State law issues
• Motion to vacate default judgments obtained by
creditors
• Debt defense in suits brought by creditors
• Affirmative claims against ID thief
• Affirmative claims against entity that failed to protect
confidential info
47

48. FCRA Referral to Private Attorney
Causes of action against bureaus and creditors
• 1681e(b) -- depending upon strength of ID theft
• 1681c-2(a) -- if did not block info within 4 days of
receipt of police report
• Reinvestigation claims -- 1681i and 1681s-2(b)
• If you disputed it and included relevant info, then have
a good case against CRA
• Through discovery, you will learn what they did and did
not do against furnishers,
• FDCPA claims
• Also possibly conversion law claim
48

49. Defenses
• Possible defenses
– They did a reasonable investigation
– There was not really ID theft
• Thus, best to understand well the actual theft
• Who did it is important, but the where it happened is
possibly more important
• Spending spree within a short period of time / location?
• Perhaps can get surveillance videos, etc.
• Perhaps can show that this many transactions could not
have happened by one person (moving company case)
49

50. Remember
1. Prevent
2. Investigate
3. Contact Law Enforcement
4. Act Quickly
5. Contact a Private Attorney if Not Resolved
Adam G. Singer
Law Office of Adam G. Singer, PLLC
NYC: 60 E. 42nd Street, Suite 4600, New York, NY 10165
Rockland: 254 S. Main Street, Suite 516, New City, NY 10956
Westchester: 445 Hamilton Avenue, Suite 1102, White Plains, NY 10601
T: 212.842.2428
F: 212.658.9682
E: asinger2@alumni.law.upenn.edu
L: www.linkedin.com/in/adamgsinger
50