Identity Protection:

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Identity Protection

• A New Dimension In Risk Management

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Webinar Agenda

• The Four Main Types of Identity Theft
• How Identity Thieves Steal Information
• Scope of the Identity Theft problem
• The impact of identity crimes on consumers
• Why risk management professionals are needed
• Steps agencies can take with their clients to
  help them with Identity Theft Risk Management
• Examples of how agencies can leverage Identity
  Theft protection to grow their agency, even in a
  soft market

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The Four Main Types of Identity Theft
1 - Financial Identity Theft

• Financial Identity Theft is the most common form
  of Identity Theft
• This type of theft involves purchases made with a
  stolen credit card, unauthorized use of telephone
  or cell
• In addition, the identity theft criminal may
  create new debt, obtain a new credit card, sign
  up for a telephone or electricity account, lease
  a car, or take out an apartment lease, in your
  name. It is even possible to discover that some
  nameless person has taken out a mortgage in your
  own home, and vanished with the money.
  Unsuspecting victims have even learned that their
  home has been put on the market without their
  knowledge.

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The Four Main Types of Identity Theft
2 - Criminal

• Some criminals prepare for the risk of being
  caught by the authorities by having someone
  elses identity ready. The most common example is
  in traffic violations. They may even carry a
  false drivers license bearing their photograph,
  just in case they get caught. The first time the
  victim will know that they have a problem is when
  they get the citation for not responding to the
  charge.
• Another example is using your stolen a license
  plate to steal fuel in drive offs from service
  stations. It is your number plate that appears on
  the security cameras.

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The Four Main Types of Identity Theft
3 - Cloning

• Criminals have been known to steal an identity so
  they can start a totally new life to avoid
  prosecution, creditors and even the IRS
• In this case, the goal is not financial, but
  using the victims hard work to make their life
  more comfortable.

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The Four Main Types of Identity Theft
4 - Commercial

• Businesses can even be involved in an identity
  crime. A tenant may sell off the landlords
  furniture, saying that they are the owner.
• A person may also gain access to premises or data
  by falsely using an authorized persons identity.

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How Thieves Steal Information
Most individuals and businesses would be amazed
at the variety of ways identity can be stolen

• Businesses or Employees
• Employees or businesses that have legitimate
  access to your personal information may use that
  information for non-business activities. Identity
  thieves that work in institutions that contain
  sensitive personal data may abuse the access they
  have or even present themselves to you as someone
  that should have access, such as a landlord or
  employer.

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How Thieves Steal Information

• Break InBusinesses are beginning to realize
  that their data is as vulnerable in the event of
  a break just like money or valuables.
• Personal Technology
• Passwords stored on computers, laptops, PDAs and
  cell phone are at risk.
• Old technology items should never be discarded
  without removing all data using the appropriate
  deletion software. Old computers may hold
  information on their hard drives even when youve
  deleted it.

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How Thieves Steal Information

• SpywareA new threat on the scene is from
  computer viruses that spy on you while you shop
  or do banking online. Any website that you enter
  personal information into can be spied on
  putting you at risk.
• Unsecured Online TransactionsOnline shopping at
  a site that is not secured can potentially put
  you at risk of having your information stolen.
  Websites may also collect and sell some of your
  information without your knowledge unless their
  posted Privacy Policy states otherwise

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How Thieves Steal Information

• Phishing or PretextingOnline or over the
  phone there are unscrupulous individuals
  masquerading as legitimate businesses in an
  attempt to convince you to pass on personal
  information for illegal purposes. Any requests to
  validate account information by providing
  personal information online or over the phone
  should be questioned.
• Lost or Stolen WalletNot surprisingly a person
  who has had their wallet lost or stolen is at
  great risk of becoming a victim of identity
  theft. Carrying important documents like your
  Social Security Number, birth certificate,
  drivers license and credit or debit cards in
  your wallet can give a thief easy access to your
  personal information.

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How Thieves Steal Information

• Missing MailIf you think youve missed a couple
  bills or know that your mail box has been broken
  into, your personal information may have been
  stolen. Credit card bills, offers for credit
  cards and information that contains personal
  information or your SSN can be used to gain
  access to unauthorized credit or to commit fraud
  in your name.
• GarbageThinking of throwing the latest credit
  card offer in the garbage? Clearing out old tax
  forms or other personal information? Rummaging
  through the garbage for such information is known
  as dumpster diving and can be an easy source
  for identity thieves. Your personal garbage isnt
  the only source businesses that collect
  personal information can also be targeted.

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How Thieves Steal Information

• SkimmingThieves have access to tools of the
  trade that allow them to steal information from
  your card at ATMs or during a card swipe for a
  purchase. These data storing devices capture your
  information without your realizing it.
• Change of AddressBy filling out a form at the
  post office the identity thief can have your
  bills and other personal mail diverted to a new
  address. It may take you a few days to realize
  what has happened and make the correction.

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Scope of the Identity Theft Problem
The threat of personal information being
compromised and used illegally is a serious
financial issue.

• Total thefts topped 47 billion in 2003.
• The average monetary loss per victim is estimated
  at 4,800
• With an additional 16,000 in potential lost
  wages due to the time demands of recovery activity

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Scope of the Identity Theft Problem
Identity Theft is a crime that affects all walks
of people

• More than 52 million Americans have had their
  personal information compromised in data breaches
  since 2005
• Near-perfect drivers licenses are readily
  available on the Web from offshore suppliers who
  know they are providing false documentation

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Impact of identity crimes on consumers
Identity Theft also robs the victim of the time
and life

• One estimate calculates that an average of 600
  hours is required to recover from identity theft.
• Thats a total of 297 million hours a year spent
  by victims to clear their good name.
• Legal tie ups and credit score reductions can
  compromise granting of new credit for a year or
  more.

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Impact of identity crimes on consumers

• Fifteen percent of all identity theft victims
  reported that the identity thief used their
  information in nonfinancial ways
• Emotional distress and the impact on trust in
  financial relationships cant be underestimated
• Many victims of identity theft fear for their
  physical safety and worry about who may now have
  access to their information as well as how it was
  stolen in the first place

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Why people need Risk Management professionals

• To properly address the current and future risks
  inherent in the Age of Information Compromise,
  each client will require
• A proactive identity risk management plan
• An organized approach for protection, detection,
  and recovery from the universe of identity crimes
  
• Continuous monitoring, diligence, and research

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Why people need Risk Management professionals
Independent Insurance Agents have an opportunity
and responsibility to provide risk management

• Clients trust and expect that financial planners
  will proactively inform and protect them from any
  financial and lifestyle risks.
• Many times the client is not in a position to
  gauge the legitimacy of information and offers
  they receive and need a professional sounding
  board.

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Steps agencies can take with their clients
Understand the impact of Identity Theft

• C. Miller was told by a nationally known
  retirement plan custodian that they could not
  open a 401(k) account with them even though the
  client worked for a Fortune 500 company.
• The reason? Someone had previously opened an
  account with the custodian using the clients
  Social Security number.

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Steps agencies can take with their clients

• Understand the impact of Identity Theft

An elderly client who believed he had won an
international lottery. When they were told that
these were thieves seeking to gain his personal
information, he responded rather innocently,
Noall theyre asking for is my bank account
number!
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Steps agencies can take with their clients

• Make a commitment to understand legislation that
  influences

• GLBA
• .

On November 12, 1999, the President signed the
Gramm-Leach-Bliley Act (Pub. L. 106-102) into
law. Section 501 of the Act titled "Protection of
Nonpublic Personal Information" requires the
establishment of appropriate standards for the
financial institutions relating to the
administrative, technical and physical safeguards
for customer records and information
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Steps agencies can take with their clients

• Make a commitment to understand legislation that
  influences

• FACTA

The Fair and Accurate Credit Transaction Act of
2003 (FACTA) added new sections to the federal
Fair Credit Reporting Act (FCRA, 15 U.S.C. 1681
et seq.), intended primarily to help consumers
fight the growing crime of identity theft.
Accuracy, privacy, limits on information sharing,
and new consumer rights to disclosure are
included in FACTA. (Pub. L. 108-159, 111 Stat.
1952)
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Examples of how agencies can leverage Identity
Theft protection to grow their agency, even in a
soft market
Make your commitment to compliance to privacy
legislation public

• Create or update your Privacy Policy
• Include compliance in your marketing, new
  policies, annual reviews and proposals

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Examples of how agencies can leverage Identity
Theft protection to grow their agency, even in a
soft market

• Sample letters and forms
• Identity theft affidavit
• Opt-out letters for credit bureaus, financial
  institutions, and credit bureaus
• Dispute letters
• Account-freeze letters
• Collection agency stop-contact letters
• Victim telephone log form
• Wallet or purse contents form
• Action checklists of steps for
• Prevention
• Detection
• Recovery
• Reference information appropriate state civil
  and penal code sections pertaining to
• Credit agency rules and regulations
• Security breach notifications
• Credit agency contact information

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Examples of how agencies can leverage Identity
Theft protection to grow their agency, even in a
soft market
Make Offer ID Theft Protection Increase
retention by 2 20 increase in bottom line
profit
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• Opt-Out Option For ConsumersOne easy way to
  prevent identity theft from happening is to
  opt-out of automatic offers of credit that often
  come in the mail. Many thieves secure a credit
  card under someone elses name simply by stealing
  someones mail, and then filling out a
  pre-approved credit offer and changing the
  address of the offer. You can opt-out of these
  offers, or choose not to receive any more
  pre-approved offers from each of the major credit
  agencies however. This will reduce the
  likelihood that someone will open a false account
  under your name. To opt out of credit or
  pre-approved offers try calling the following
  numbers (888) 5OPTOUT For opting out of
  pre-approved offers from Trans Union or
  Experian.[phone] To opt out of
  pre-approved offers generated from EquifaxP.O.
  Box 919, Allen, TX 75013 You can write to this
  address to request your name be removed from
  Experians pre-approved offers list.P.O. Box
  97328, Jackson, MS 39238 Write to this address
  to opt out of pre-approved offers from Trans
  Union.Dont worry about getting credit. If you
  want a credit card from a specific company there
  is nothing stopping you from applying to them
  direct. You dont have to wait for them to
  contact you by mail. Besides, most pre-approved
  offers end up in the wastebasket. Which leads
  us to our next point. If you do get pre-approved
  offers you are not interested in, make sure you
  invest in a good cross shredder so you can shred
  these documents. You cant simply throw them
  away, because most identity thieves steal from
  places where they know they can find information
  easily, like the trash can. Social Security
  Numbers, birth certificates, passports or any
  other personal identification should not be
  carried in your wallet. The same goes for extra
  credit cards and store or gas credit cards. The
  less you carry the less risk if your wallet is
  stolen or lost.
• EducationEducation is often the best prevention
  when it comes to identity crimes. One way to stay
  up-to-date on identity theft trends and cases is
  by visiting the Federal Trade Commissions ID
  Theft Site, located at www.consumer.gov/idtheftHe
  re you will find all the information you need to
  protect your identity and your family. You can
  also find links to important forms like ID Theft
  Affidavits in the event you become a victim of
  identity theft. The FTC provides information for
  individuals and businesses, as well as law
  enforcement agencies looking to beef up their
  identity theft protection services. You should
  also visit the Consumer Sentinel, an information
  warehouse of knowledge for individuals, companies
  and consumers interested in learning more about
  identity theft. Just visit www.consumer.gov/senti
  nelHere you will find the latest fraud and
  identity theft reports including those on
  consumer fraud and identity theft in the States
  and abroad. You can use this site to find other
  sites that allow you to file a complaint or to
  report a potential scam or theft. Here are some
  other simple steps you can take to protect your
  identity and prevent identity crimes from
  happening to you Always shred all documents
  containing personal information, including your
  name, address, income or social security
  number.Make sure you dont leave mail in your
  car or in any other unsecured location where
  someone can grab it. Check your mailbox daily
  and be sure you dont leave mail in your box
  overnight.If traveling out-of-town, have a
  neighbor get your mail for you or better yet,
  visit your post office and have them hold your
  mail for you until you get back.Request a
  credit report from each of the three credit
  bureaus at least once annually. In many states,
  you can get one free report each year. You can
  also receive a free report if you are denied
  credit for any reason. Make sure you review your
  report thoroughly and question any errors you may
  see.Note Members of Identity Theft Shield
  receive free credit reports with Analysis and
  Tips to Improve Rating from each agency each
  quarter if requested. Identity Theft Shield
  members will have any needed services done for
  them for prevention and in case of any issue.
  Click here for details or to join.Keep copies
  of important documents including your drivers
  license, your credit card numbers and the phone
  numbers of your creditors so you can call them
  immediately in the event you lose your wallet or
  someone steals your purse or wallet.Make sure
  if you do lose your personal information, you
  contact the three credit bureaus and social
  security administration to place a fraud alert on
  your account. If you become a victim of identity
  theft, you can place an extended alert on your
  account, which will last up to 7 years. You are
  also entitled to two free reports if you do
  this.Report any fraudulent or questionable
  offers you get to the FTC. You can visit their
  site and use their complaint form.Do not click
  on any links provided in emails that claim they
  need to verify your account information.Avoid
  emails that offer employment for jobs you did not
  apply for or for jobs that are oversees. Most
  people cant get a job unless they have a formal
  interview.Keep your PIN numbers and passwords
  in a safe location. Do not use the same password
  for all your accounts, because this makes it
  easier for an identity thief to steal your
  information. Instead keep a separate notebook and
  change your passwords frequently to reduce the
  likelihood someone will obtain and abuse your
  information. Now that you have a better idea of
  how to protect yourself against identity theft,
  lets look at some key ways you can also protect
  yourself from fraud. Remember, fraud and identity
  theft often go hand in hand, so it is important
  you are aware of both and how both can affect
  your safety and security.Fraud PreventionFraud
  prevention is much like identity theft
  protection. In fact, many identity thieves first
  gain information about potential victims by
  conning them using many different scams. Just as
  you want to be on the lookout for potential
  identity thieves, so too do you want to watch out
  for fraudulent activity or con artist scams.How
  do you prevent fraud from happening to you? There
  are many ways you can prevent fraud from landing
  on your doorstep. You want to make sure you keep
  your personal information safe. Fraud takes many
  different forms. We talked in previous sections
  about many types of fraud, including lottery
  scams, advanced fee or loan fraud and even
  employment fraud. A great way to prevent fraud
  from happening to you is simply by becoming more
  aware of what fraud is and what types of fraud
  are currently happening around you. If you are
  aware of employment scams and advanced fee scams,
  you are more likely to spot one if it comes your
  way. Here are some great tips to follow to help
  prevent fraud from happeningNever give out
  your personal information including your name,
  account number or birth date to an unknown person
  that contacts you. If someone call from your
  bank and asks you to verify your personal
  information, get their name and number, then call
  your local bank branch and ask if that person
  works for your bank. Find out if they really need
  any information from you.Make sure you report
  any fraud or con artist scams you recognize to
  the FTC. This will help them retaliate against
  thieves and reduce the likelihood that others
  will fall prey to unruly scams.Question anyone
  that offers you a loan or claims you won a prize
  but requests you pay a fee or give your credit
  card number as a confirmation of your prize or
  winnings.Never offer to accept a check from a
  foreign national in exchange for part of the
  money being received, especially if the person
  sending the check claims to offer you a cut of
  millions of dollars. Remember, if it sounds too
  good to be true, then it probably is.Do not
  accept a job offer from someone you have never
  met, or from a company you are not familiar with.
  You should always meet with a human resources
  person in person before accepting any job offer.
  Make sure you always get the name and contact
  number of anyone that you suspect of engaging in
  illicit activity. If you sell items online, do
  not accept checks for an amount over the amount
  of the actual item. Make sure the payment is for
  the exact amount of the product.Verify that the
  seller you are working with is reputable if you
  shop online or frequent online auction sites.
  Even legitimate sites, like Ebay.com may be
  plagued with nefarious con artists. Dont
  Respond to Email RequestsIf you are contacted
  by a bank or service provider through email you
  must never submit any personal or financial
  information to them. These attempts to trick
  you into believing they are a legitimate business
  is called phishing. If an email claims that you
  must validate your information and provides you a
  link to the form DO NOT OPEN THE LINK! If you are
  concerned that the request may be legitimate
  close the email and enter the URL to the actual
  business in your browser window. If your account
  looks fine contact their customer service
  department to verify the email. A fraudulent
  email is called a spoof and the company will
  likely want you to forward it to them.Unless
  you initiate a call to a business you should
  never give personal or financial information to a
  caller over the phone. Your bank or Credit Card
  company will not ask for your card or account
  number if they call you. They have that
  information on file.If a caller portrays
  themselves to be representing a charity or
  offering a prize or trip you can ask for a phone
  number to call back. Verify the phone number and
  hang up. If they are with a reputable
  organization you will be able to check the number
  and call back. Telemarketing scams that ask for
  credit card deposits, account information or
  personal information such as your mothers maiden
  name, your SSN or other information are common.
  If you wish to donate it is better to call the
  organization yourself.Credit card companies
  like Visa offer added protection by allowing you
  to create a password along with the card number
  when making a purchase. Even if your card is
  stolen you can prevent thieves from using it by
  having it password protected.Dont give
  passwords to credit cards or other personal
  information to friends and family. According to a
  survey done by www.idtheftcener.org the victim
  respondents indicated that 43 of them thought
  they knew the imposter. About 34 were aware that
  the thief had a history of needing money to
  support a drug, drinking, gambling or shopping
  addiction.Only shop at merchants you are
  familiar with or contact the Better Business
  Bureau. Look for secure shopping sites with
  identifying marks such as https appearing in the
  browser window or a lock icon appearing below the
  webpage on your browser.Never give PIN numbers
  or passwords to the merchant.  Verify your bank
  statements immediately online or over the phone
  to check the transaction was made for the proper
  amount and no other charges were made. Be sure to
  have anti-virus and anti-spyware programs running
  and always print out the transaction record, log
  out and close the browser when completed. 
  Whenever you are asked for personal information
  you have a right to know why it is needed and how
  it will be used. Online you may find that
  information in a Privacy Policy (read about that
  in the chapter How to Read a Privacy Policy).
  Limit the use of your personal information by
  requesting financial institutions not to share
  your information with affiliates. This is called
  opting-out and the financial institution must
  allow you to do so. Once you have requested to
  opt-out, either on the phone or in writing, they
  must never share your information unless you
  specifically request they do so.   When you do
  receive a new credit or debit card sign it
  immediately and never carry it unsigned.  Dont
  save passwords to personal information (such as
  online banking) in a program that remembers
  your information. Remove cookies from your
  computer and have your hard drive professionally
  wiped before disposing it.Use strong
  passwords that means a combination of letters
  and numbers that cant be easily guessed. Never
  use information such as your mothers maiden name
  or birth date that can be figured out by thieves.
   Set your PC  browser security settings to
  Medium or higher. Install a firewall to prevent
  unwanted access from hackers and install
  anti-virus and anti-spyware programs. Never
  download software when you dont know where its
  from and never click on pop-ups or spam
  email.Another great way to prevent fraud, or at
  least minimize the impact of fraud, is to contact
  your creditors and lenders and find out what
  their policies are about fraud and theft. Find
  out what steps you need to take if you find
  unauthorized charges on your account. Many
  creditors have different policies regarding false
  charges. Some will reimburse you for the full
  amount and dispute the claim if you report it
  immediately. You may need to provide a copy of a
  police report or an identity theft affidavit to
  prove your innocence. Your bank may recommend you
  change your banking information and account
  numbers to protect your identity in the event you
  become a victim of fraud or identity theft.
  Remember, as long as you follow a few key
  steps, you can do everything possible to protect
  your identity and prevent fraud from landing at
  your doorstep.

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