Preventing Identity Theft and Fraud

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Agenda

1. Our Identity
2. Definition
3. How Can Identity Theft Happen
4. Misuse of Stolen Identities
5. Warning Signs
6. Preventing Identity Theft
7. Tackling the Problem

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Our Identity

• Our identity is a valuable asset
• Its a personal part of who we are
• Open bank accounts
• Obtain credit cards
• Apply for loans, mortgages
• Purchase goods and services
• Claim benefits

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Definition

• Identity Theft An illegal act in which someone
  accesses and uses the identifying information of
  an actual person in some way that involves fraud
  or deception.
• Identify Fraud The use of a misappropriated
  identity in criminal activity, to obtain goods,
  services or benefits by deception for economic
  gain without the victim being aware.

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How Can Identity Theft Happen?

• Your HOME or VEHICLE is burgled and your personal
  information and documents may be taken.
• Your personal information may be stolen and used
  or sold by employees of legitimate BUSINESS.
• Information found in the TRASH BIN could provide
  a thief with an opportunity to steal your
  identity.
• Many important documents are posted to you and
  can be stolen from your MAILBOX.

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How Can Identity Theft Happen?

• Criminals could request for a change of address
  and have your MAIL DIVERTED to another address.
• Your WALLET contains personal information such as
  your licence, credit and ATM cards and other
  personal documents, that may be stolen.
• You may be the victim of a scam and be conned
  into providing personal information over the
  telephone by an IMPERSONATOR (social
  engineering).

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How Can Identity Theft Happen?

• SHOULDER SURFING in public place.
• Your personal computer could be the weakest link,
  as it is vulnerable to threats posed by HACKING,
  PHISHING and MALWARE.
• Most surprisingly, you could have your identity
  stolen and used by someone you know and trust -
  FRIEND, RELATIVE or COLLEAGUE.

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Misuse of Stolen Identities

• Submit false application for credit cards and
  loans
• Take over existing accounts
• Open bank accounts to write bad cheques
• Open landline or mobile phone account
• File for bankruptcy
• Submit false claims on insurance policies
• Submit fraudulent tax returns to collect refunds
• Submit claim for unemployment or social security
  benefits

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Misuse of Stolen Identities

• Terrorism financing
• Money laundering
• People smuggling (human trafficking)
• Illegal immigration
• Drug trade
• Crimes
• Abuse of government programmes

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Misuse of Stolen Identities

• Fastest growing crime
• US in 2003
• 10 million victims
• US1 billion loss by lenders
• UK in 2003
• Over 100,000 cases
• 1.3 billion loss
• Australia in 2002
• A1.1 billion loss

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Warning Signs

• You receive bills, invoices or receipts for goods
  which you have not ordered.
• You receive letters or calls from debt collectors
  relating to debts that arent yours.
• You receive bank statements for accounts in your
  name which you have not applied for or opened.
• There are transactions on your account statements
  that you dont recognize.

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Warning Signs

• Important identification documents are missing.
• You stop receiving regular mails.
• You did not receive any mail at all.
• New accounts on your credit report.
• Searches on your credit bureau report that dont
  relate to any application made by you.

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Preventing Identity Theft

• Supply your personal information appropriately
• Check financial information regularly
• Ask for credit bureau report periodically
• Maintain a record of important accounts
• Destroy personal information before disposal
• Use passwords for important accounts
• Report loss or theft immediately
• Secure your mail and personal information

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Preventing Identity Theft

• Computer Internet
• Use passwords for protection
• Change passwords periodically
• Use anti-virus software
• Install personal firewall software for online
  access
• Beware of unsolicited e-mails (phishing
  malware)
• Transact at secure websites avoid spoof websites
• Wipe before disposing hard drive
• Be wary of using public computers

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Tackling the Problem

• Stringent verification process to detect
  fraudulent applications using stolen identities
• Using scoring technology neural networks
• Robust procedure to prevent account takeover
• Employee screening training programme
• One-time password and two-factor authentication
  for internet banking
• Fraud Detection System
• Customer education
• Information sharing

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Tackling the Problem

• Victim Assistance Programme
• Citi Identity Theft Solutions
• Comprehensive service
• Close unauthorized accounts
• Credit bureau checks
• Contact other creditors/banks
• Police report
• Monitor account
• Update status until close
• Reclaim identity

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Tackling the Problem

• ID card system
• Criminal offence for identity theft and fraud
• Police investigation
• Sufficient deterrence to criminals
• Access to public records

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The End
THANK YOU
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