Title: ID Theft Statistics and Steps to Minimize Your Exposur
1ID 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
3Identity 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
5Recent 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
6Recent 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
7What 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.
8Two 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 -
-
9How Information Is Obtained
- Theft of purse/wallet
- Mail theft
- Dumpster diving
- Shoulder surfing
- Workplace information
- Pretext calling
- Skimming
- External hacker breaches
10How 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
11Telephone 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
12Phishing
- 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
13Phishing
14Educate 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
15Educate 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
16Pharming
- 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
17Prevent 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
18Pretexting
- 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
19Plastic 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
20Address 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
21Telephone 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
22Workplace 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
23How 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
24How 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
25How 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
26Do 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
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28How 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
29How 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
30How 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
31How 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
-
32Helping 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
33What 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
34What 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
35What 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
36What 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
37What 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
38Thank YouJoni LovingoodSenior Risk Management
Specialistjoni.lovingood_at_cunamutual.comVoice
mail (800)356-2644 x9316Cell phone (704)236-8294