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Title: ID Theft Statistics and Steps to Minimize Your Exposur


1
ID Theft Statistics and Steps to Minimize Your
Exposure
  • Joni Lovingood
  • Senior Risk Management Specialist

2
Number of Victims and Annual Losses
Source 2006 2005 Javelin Strategy Research
and Better Business Bureau
3
Identity Theft Involving Minors (Under Age 18)
Source 2005 2006 Javelin Strategy Research
and Better Business Bureau
4
Identity Theft Losses by Type
Source 2005 Javelin Strategy Research
5
Recent Identity Theft Statistics
  • Over 36 million new victims in past 5 years
  • At current rate, approximately 20 of US adult
    population with credit standing will be victims
    by 2007
  • Lost/stolen wallets/checkbooks/credit cards are
    primary source of compromised data (30)
  • 47 of all ID theft is perpetrated by friends,
    neighbors, in-home employees, family members and
    relatives

Source 2005 Javelin Strategy Research and
Better Business Bureau Source 2005 2006
Javelin Strategy Research and Better Business
Bureau
6
Recent Identity Theft Statistics
  • 65 age group has smallest rate of identity theft
    (2.3 )
  • 25-34 age group has the highest rate of identity
    theft (5.4)
  • 35-44 age group has highest average fraud amount
    (9,435)

Source 2005 2006 Javelin Strategy
Research and Better Business Bureau
7
What is ID Theft ?
  • Identity theft is a crime in which an imposter
    obtains key pieces of personal information, such
    as Social Security or driver's license numbers,
    in order to impersonate someone else.
  • The information can be used to obtain credit,
    merchandise, and services in the name of the
    victim, or to provide the thief with false
    credentials.

8
Two Categories
  • True Name
  • Uses personal information to obtain new accounts
  • Cell phones
  • Credit cards
  • Blank checks
  • Account Takeover
  • Use personal information to gain access to a
    persons existing account
  • Will change address and run up large bills before
    the person realizes there is a problem

9
How Information Is Obtained
  • Theft of purse/wallet
  • Mail theft
  • Dumpster diving
  • Shoulder surfing
  • Workplace information
  • Pretext calling
  • Skimming
  • External hacker breaches

10
How Identity Theft Happens
  • Referred to as Friendly Fraud
  • Done by a trusted party
  • Family members
  • Roommates
  • Housekeepers
  • Party guests
  • Friends of your children or family
  • Repairmen
  • Co-Workers

11
Telephone Scams
  • Do-not-call list scams
  • Asking to confirm
  • Addresses
  • Date of birth
  • Social Security Numbers
  • Neural Network Scams
  • Person purports to be from Visa/MC
  • Security and fraud division
  • Asks if you made a specific purchase
  • Promises to make adjustment to your card
  • Needs card information

12
Phishing
  • E-mail Scams
  • Appear to be a legitimate message from a
    financial institution, a retailer or a credit
    card company
  • Trick users into divulging personal and financial
    information
  • Messages can appear remarkably official

13
Phishing
14
Educate Your Membership on Phishing
  • Post phishing warnings on your website,
    newsletters and lobby bulletin board
  • Post a warning on your credit union's website
    that you will never solicit personal/private
    information via e-mail
  • Never click on the link provided in an e-mail you
    believe is fraudulent
  • Do not open an attachment to an unsolicited
    e-mail unless you have verified the source

15
Educate Your Membership on Phishing
  • Do not be intimidated by an e-mail or caller who
    suggest dire consequences if you do not
    immediately provide or verify information
  • If you believe the contact is legitimate, go to
    the companys website by typing in the site
    address directly or using a page you
    have previously book marked, instead of a link
    provided in the e-mail
  • Use the  FTC (Federal Trade Commission) website,
    www.onguardonline.gov.  Consumers can take
    interactive quizzes designed to enlighten them
    about identity theft, phishing, spam and
    online-shopping scams--elsewhere on the site,
    consumers can find detailed guidance on how to
    monitor their credit histories, use effective
    passwords and recover from identity theft

16
Pharming
  • Uses software to redirect users to fraudulent
    websites
  • Intercepts personal information
  • Attacks through the users favorites section of
    their browser
  • Scam enters computer via e-mail
  • Asks user to install software
  • Takes user to a look alike site

17
Prevent Pharming
  • Dont open e-mails from an unfamiliar address
  • Dont open attachments unless you know who they
    are from
  • Dont follow a link in an unfamiliar e-mail
  • Keep anti-virus and anti-spyware software up to
    date
  • Maintain an up to date operating system

18
Pretexting
  • The practice of obtaining personal information
    under false pretenses
  • Surveys
  • Get basic information and then call financial
    institution to request additional information
  • Social security number
  • Routing and transit number
  • Debit card number and PIN

19
Plastic Card Considerations
  • Implement Card Security
  • Card Activation
  • CVV/CVC
  • Expiration date mismatch
  • Name Matching
  • AVS
  • CVV2/CVC2
  • Verified by Visa - MasterCards Secure Code
  • Neural Networks (24X7365 days)
  • Educate your members about the security you have
    in place

20
Address Change Procedures
  • Before making an address change, send a
    confirmation to both the old and new addresses
  • If an address change is shortly followed by a
    request for a new plastic card, PIN, or checks,
    confirm the address change with the member
  • The recent Fair and Accurate Credit Transactions
    (FACT) Act requires new procedures for this

21
Telephone Procedures
  • Written procedures to limit circumstances in
    which member information can be disclosed by
    telephone
  • Use an authorization code/password
  • Use Caller ID
  • Use a call back procedure to the phone number on
    record
  • Ensure phone number has been on file for at least
    30 days

22
Workplace Considerations
  • Know who you are hiring
  • Background Checks
  • Bondability Checks
  • Run credit reports
  • Develop written privacy protection policy
  • Include responsible information handling
    practices
  • Display your cus policy in your literature and
  • on your website
  • Train staff on cus security measures and
  • privacy protection policies

23
How to Protect Against Identity Theft
  • Do not routinely carry your social security card,
    birth certificate, passport or more than two
    credit cards
  • Always take credit card, debit card and ATM
    receipts with you
  • Do not leave bill payment envelopes at your
    mailbox for the postal carrier to pick up

24
How to Protect Against Identity Theft
  • Never give out your credit card, bank account or
    social security number over the telephone unless
    you initiated the call and you are familiar with
    the caller
  • Do not print your social security number on your
    checks
  • If a business requests to use your social
    security number, ask to use an alternate number

25
How to Protect Against Identity Theft
  • If you do not receive your credit card statement
    on time, call the post office to see if a recent
    change of address request has been filed
  • If you shop on the Internet, use a secure browser
    for your purchase transactions

26
Do Not Call Registry
  • No longer just home phones
  • Can now register mobile numbers
  • Will remain in effect for five years
  • Unless you remove your number or the phone is
    disconnected
  • Will reduce most calls from telemarketers
  • If you have established a relationship with a
    company, they may still contact you until request
    contact cease.
  • If contact continues, it is your responsibility
    to file a complaint

27
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28
How to Protect Against Identity Theft
  • Make a list of your credit cards and bank
    statements in case your cards are lost or stolen
  • Do not use all or part of your social security
    number in creating passwords or PINs
  • Memorize all passwords or PINs

29
How to Protect Against Identity Theft
  • Shield the keypad when using the ATM machine
  • Install a lock on your mailbox or use a post
    office box for incoming mail
  • Pick up new check orders at your financial
    institution instead of having them mailed to your
    home

30
How to Protect Against Identity Theft
  • Shred unused pre-approved credit card
    solicitations and convenience checks
  • Eliminate pre-approvals 888-567-8688 (Opt Out
    Line)
  • Immediately review your credit card statements,
    utility bills, telephone bills for unauthorized
    use
  • Contact the provider if necessary if you suspect
    unauthorized use
  • Order your credit reports annually and review for
    accuracy and fraud

31
How to Protect Against Identity Theft
  • To Get a Free Credit Report
  • Log on to www.AnnualCreditReport.com (a new web
    site created jointly by the credit reporting
    companies
  • Or, call (877) FTC-HELP
  • Or, mail a standardized form to Box 105281,
    Atlanta, GA 30348-5281
  • Consumers are allowed one free report
  • per year from each of the agencies

32
Helping Members Prevent ID Theft
  • Member education is key
  • Free resources from FTC
  • NCUA sample statement brochure How to Avoid
    Becoming a Victim of Identity Theft
  • Consider member training and/or assistance
  • Consider extending shredding service to members
  • Credit union staff should know where to refer
    members if they are having a problem

33
What to Do If You Are a Victim?
  • Report to police immediately--ask the police to
    issue a police report
  • Notify the fraud units of the three major credit
    reporting agencies. (Note The FACT Act only
    requires contacting one agency who will report to
    the other two)
  • Request that a fraud alert be placed in your file
  • Request that a victims statement be added to
    your file

34
What to Do If You Are a Victim?
  • Request a copy of your credit reports --check
    each credit report carefully
  • Request each credit reporting agency to remove
    all erroneous information
  • Ask each credit reporting agency to send you a
    copy of the corrected credit report
  • Call each affected credit card issuer to close
    and reissue all affected accounts

35
What to Do If You Are a Victim?
  • Ask each credit card issuer about the status of
    your account
  • Instruct the issuer not to honor any requests for
    information changes
  • Close and reissue any affected checking and
    savings accounts
  • Ask the financial institution to attach a unique
    identifier to your accounts

36
What to Do If You Are a Victim?
  • Get a new ATM card and PIN
  • Contact the Department of Motor Vehicles if you
    suspect someone is using your drivers license
    number
  • Contact the Social Security Administration if
    your social security number has become associated
    with bad checks and credit
  • Call 800-772-1213 to check your Social Security
    Statement

37
What to Do If You Are a Victim?
  • Notify the Postal Inspector if you suspect your
    mail has been stolen or a fraudulent change of
    address has been filed in your name
  • Notify the passport office that the perpetrator
    may apply for a new passport in your name

38
Thank YouJoni LovingoodSenior Risk Management
Specialistjoni.lovingood_at_cunamutual.comVoice
mail (800)356-2644 x9316Cell phone (704)236-8294
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