Identity Theft

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Identity Theft

• TACTYC Conference
• Georgia Perimeter College
• May 19, 2006

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Who Is at Risk?
You Are!!!
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Identity Theft

• What is it?
• Who commits it?
• How does it happen?
• What are the possible consequences?
• How can I prevent it?
• What must I do if it happens to me?

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What Is Identity Theft?

• n the co-option of another person's personal
  information (e.g., name, social security number,
  credit card number, passport) without that
  person's knowledge and the fraudulent use of such
  knowledge -- dictionary.com

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Federal Identity Theft and Assumption Deterrence
Act

• 18 U.S.C. 1028(a)(7)
• Federal law passed in 1998
• Prohibits knowingly transferring or using,
  without lawful authority, a means of
  identification of another person with the intent
  to commit, or to aid or abet, any unlawful
  activity that constitutes a violation of Federal
  law, or that constitutes a felony under any
  applicable State or local law.

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Other Related Federal Statutes

• 18 U.S.C. 1028 identification fraud
• 18 U.S.C. 1029 credit card fraud
• 18 U.S.C. 1030 computer fraud
• 18 U.S.C. 1341 mail fraud
• 18 U.S.C. 1343 wire fraud
• 18 U.S.C. 1344 financial institution fraud

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Georgia Statute 16-9-121. Identity Fraud Law

• A person commits the offense of identity fraud
  when without the authorization or permission of a
  person with the intent unlawfully to appropriate
  resources of or cause physical harm to that
  person, or of any other person, to his or her own
  use or to the use of a third party he or she
  (1) Obtains or records identifying information
  of a person which would assist in accessing the
  resources of the other person or(2) Accesses or
  attempts to access the resources of the other
  person through the use of identifying
  information.

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Identifying Information (Partial List)

• Names (current or former)
• Social Security numbers
• Drivers license numbers
• Bank account/credit card numbers
• Birth dates
• Tax identification numbers
• Medical identifications

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Statistics

• Source Federal Trade Commission
• Identity Theft Data Clearinghouse report
• Over 635,000 consumer identity theft fraud
  complaints received in 2004
• 61 classified as fraud, 39 identity theft.
• Reported losses of over 547 million.
• 27,300,000 million victims in past 5 years

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Statistics (cont.)

• Source GA Stop ID Theft Network
• 2,592 victims reported in Georgia in 2001
• Seventh-highest in nation
• Atlanta was 11th among major cities for reported
  identity theft in 2004 according to FTC

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Statistics (cont.)

• Source ChoicePoint Data Disclosures Report,
  2005
• As of Nov. 15,
• 125 data disclosure incidents this year
• 57 million people potentially affected

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Statistics (cont.)

• Losses to banks and final institutions
• Estimated 48 billion in 2003
• Average loss per business victim
• 10,200
• Average loss to individual victims
• 1,180
• 175 or more hours resolving problems over two or
  more years

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Who Commits Identity Theft?

• Professional thieves
• Strangers
• Employees of businesses
• Family members and relatives
• Friends/acquaintances

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Who Commits Identity Theft?

• An estimated nine percent of ID theft cases
  involve family
• Another ten percent of ID theft cases involve
  someone with another form of personal
  relationship (friend/ acquaintance, co-worker,
  etc.)

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How Does Identity Theft Occur?

• Non-technological methods still used for the
  majority of cases
• Dumpster diving
• Dishonest employees
• Mail theft/interception
• Masquerading and Social hacking
• Shoulder surfers
• Telemarketing scams

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How Does Identity Theft Occur? (cont.)

• Technology usage is growing rapidly
• Wireless communication interception
• Camera phones
• Software tools
• Credit card skimming
• ATM spy cameras
• Phishing and Pharming schemes

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Potential Consequences to Victims

• Financial losses
• Civil issues
• Criminal problems

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Financial Consequences

• Direct monetary losses
• Credit/ATM/Debit cards
• Checks
• Indirect monetary losses
• Lost time/wages
• Out-of-pocket expenditures
• Legal fees
• Credit
• Denial of credit
• Increased rates for loans/mortgages

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Civil Consequences

• Lawsuits
• Loss of current job
• Failure to be hired for new job

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Criminal Consequences

• Approximately 15 of victims obtain a criminal
  record due to identity theft
• Almost impossible to completely remove criminal
  record once it is in law enforcement databases

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How Can I Prevent It?

• Total prevention is impossible!
• Minimize risks as much as possible
• Protect four primary areas
• Information
• Property
• Documents
• Technology

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Protect Your Information

• Do not give out information unless you must!
• Ask why a piece of information is needed
• You can refuse to give information, but you may
  not receive the service in return
• Do not use your Social Security number as an
  identification number
• Needed by IRS, SSA

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Protect Your Information (cont.)

• Make sure you know who is requesting the
  information
• Are they legitimate?
• Do not give out personal information unless you
  initiate the call/email

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Protect Your Information (cont.)

• Be especially cautious with the big three
• Social Security number
• Passport number
• Bank/credit account numbers

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Protect Your Information (cont.)

• Check your credit reports regularly
• Every four months, request one credit report from
  one credit bureau
• Federal law allows you one free copy of each
  bureaus credit report annually
• See http//www.annualcreditreport.com/ for
  information
• Each credit bureau must be dealt with individually

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Protect Your Information (cont.)

• Should you use a credit monitoring service?
• In most cases, no
• Exception is if you are already a victim of
  identity fraud
• Note credit bureaus will try to sell you credit
  monitoring when you request free reports. Be
  aware!

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Protect Your Information (cont.)

• Run a public records search annually
• Available free from ChoicePoint
• Allows you to check publicly available data about
  yourself for accuracy
• Can provide clues that identity fraud has occurred

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Protect Your Information (cont.)

• Guard PINs and other identifiers from spying
• Consider using electronic bill delivery/ bill
  paying services
• Removes possibility of mail theft
• Allows earlier detection of unauthorized activity
• Encourages more careful monitoring of financial
  activity

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Protect Your Information (cont.)

• Keep a record of all bank/credit account numbers
  along with phone numbers
• Keep a photocopy of your wallet contents and
  passport in a safe place

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Protect Your Information (cont.)

• Omit personal identifying information from
  resumes and job applications
• You will eventually have to provide this if hired
• Should not be needed until late in hiring process
• If demanded early, do you really want to work
  there?

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Protect Your Property

• Keep property secured at all times
• Carry only necessary items in purse/wallet
• Minimize number of credit cards
• Do not routinely carry Social Security card,
  passport, birth certificate, or any document with
  bank routing information

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Protect Your Mail

• Use a locked mailbox, or pick up mail promptly
• Place all outgoing mail in secured mailbox
• Keep track of billing cycles
• Make sure all expected mail is actually received

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Protect Your Documents

• Store identifying documents in a safe, locked
  place
• Critical because of business liability
• Georgia law up to 10,000 fine PLUS unlimited
  civil liability

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Protect Your Documents (cont.)

• Shred any personal or business document with
  identifying information before throwing away

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Protect Your Technology

• Control access to computers
• Minimize storage of sensitive data on laptop
  computers and centralized network storage
• Keep safeguards up to date
• Operating system updates
• Security program updates

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Im a Victim What Do I Do Now?

• Some measures apply to all cases
• Others only for certain situations

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Record-keeping

• Send all correspondence
• Certified mail
• Return receipt requested
• Document EVERYTHING
• Log all phone contacts
• Company name, contact name, date, time
• Keep copies of all correspondence you send
  forever
• File ANYTHING you receive that MAY relate to the
  situation

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File a Police Report

• Contact local law enforcement
• Georgia law requires that
• Law enforcement must take report
• Report must be forwarded to Governors Office of
  Consumer Affairs
• Consumer Affairs will forward to Georgia Crime
  Information Center

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File a Police Report (cont.)

• Get copies of the law enforcement report
• Keep for your records
• Send copies to creditors when reporting
  fraudulent activity

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Notify Credit Bureaus

• All three credit bureaus should be alerted
• Call first, follow up in writing
• Request fraud alerts on your files
• Normal duration of fraud alert is 90 180 days
• Request, in writing, extension for seven years

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Notify Creditors

• Call first, follow up in writing
• Notify ALL creditors
• Banks
• Credit card companies
• Other lenders
• Phone companies
• Utilities
• ISPs and other service providers

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Notify Creditors

• Existing creditors
• Report fraudulent activity immediately
• Cancel existing account
• Request replacement cards with new account numbers

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Notify Creditors

• Fraudulently obtained accounts
• Take action as soon as you discover existence of
  account
• State that you never requested account
• Provide with copy of police report and fraud
  affadavit
• Request that account be closed
• Get confirmation in writing

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Get Credit Reports

• Should be automatically sent at no charge when
  fraud alert is filed
• Review carefully for inaccurate information
• Remember that some inaccurate information may
  predate the crime
• Dispute all inaccurate information in writing

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Report the Crime

• Federal Trade Commission
• http//www.consumer.gov/
• Fill out FTCs ID Theft Affidavit
• Many companies will accept as documentation
• Others insist on their own paperwork

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Additional Agencies

• U.S. State Department (passport agency)
• Social Security Administration
• U.S. Postal Inspection Service/local Post Office
• Department of Motor Vehicles
• Internal Revenue Service/Georgia Department of
  Revenue
• Check approval agencies

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When Criminal Activity is Involved

• You MUST take additional steps
• Failure to do this could result in
• Arrest
• Jail time
• Significant expense to repeatedly clear your
  record

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When Criminal Activity is Involved (cont.)

• Have local law enforcement confirm your identity
• Fingerprints
• Photograph
• Copies of identifying information
• Have them send information to other jurisdictions
  involved as well

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When Criminal Activity is Involved (cont.)

• Request a key name switch in databases
• Entry should be under impostors actual name
• If not known, as John/Jane Doe
• Make sure your name is listed as an alias, not as
  real name
• Include local, state, federal databases

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When Criminal Activity is Involved (cont.)

• Obtain a clearance document
• Called by different names
• Clearance letter Mis ID
• Certificate of release
• Make multiple copies of this document
• Carry a copy with you at ALL times
• Make sure a trusted friend/family member has a
  copy

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Long-Term Damage Control

• Do NOT pay any fraudulent charges/bills/ checks
  per Fair Credit Reporting Act provisions
• Continue to get credit reports regularly (at
  least every six months)
• Carefully monitor all financial activity
• Carefully monitor mail
• Do NOT change your Social Security number

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Resources -- Federal Agencies

• Federal Trade Commission
• http//www.consumer.gov/idtheft/
• Department of Justice
• http//www.usdoj.gov/criminal/fraud/idtheft.html
• Social Security Administration
• http//www.ssa.gov/pubs/idtheft.htm
• U.S. Postal Inspection Service
• http//www.usps.com/postalinspectors/welcome2.htm

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Resources State Agencies

• Georgia Stop Identity Theft Network
• http//www.stopidentitytheft.org/

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Resources -- Nonprofit Organizations

• Better Business Bureau
• http//www.bbbonline.org/IDTheft/
• Identity Theft Resource Center
• http//www.idtheftcenter.org/index.shtml
• Privacy Rights Clearinghouse
• http//www.privacyrights.org/identity.htm

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Credit Bureaus

• Equifax http//www.equifax.com/
• Experian http//www.experian.com
• TransUnion http//www.transunion.com

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Check Approval Companies

• CheckRite [phone]
• Chexsystems [phone]
• CheckCenter/CrossCheck [phone]
• Certigy/Equifax [phone]
• International Check Services [phone]
• SCAN [phone]
• TeleCheck [phone]

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Opt-Out Resources
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In Closing

• This presentation is available online
  athttp//www.gpc.edu/jbenson/presentations/idthe
  ft.ppt