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  1. IDENTITYTHEFT What is Identity Theft?

  2. A Legal Definition “A fraud committed or attempted using the identifying information of another person without authority.”

  3. Scope of Identity Theft • In 2004, there were almost 250,000 ID theft complaints and victims spent nearly 250 million hours trying to sort out bogus accounts and set their credit records straight • Credit Card Fraud – 28% • Phone/utilities Fraud – 19% • Bank Fraud – 18%

  4. Scope of Identity Theft • In 2004, merchandise and services obtained as a result of ID Theft exceeded $52 billion • In 2005, an estimated 10 million Americans became victims of Identity Theft. On average, a victim spent $500.00 and 30 hours resolving the problem

  5. Scope of Identity Theft • In 2004, plastic card losses were $17 million • In 2005, plastic card losses are expected to be approximately $35 million

  6. Common Types of Identity Theft or Financial Fraud • Unauthorized transactions on existing accounts (e.g., unauthorized charges on a credit card or checks on a checking account) – often more easily corrected than others • Make purchases on your credit card and have the statements sent to a different address • Takeover of existing accounts (e.g., prolonged use or emptying of a financial account) • Creation of new accounts • Establish wireless service • Open an account in your name and write bad checks on that account • File for bankruptcy under your name • Get identification, such as Driver’s License made with their picture and your name

  7. Warning Signs • A financial institution may call if a transaction seems out of the ordinary • You may see unauthorized charges on a credit card or checking account statement • Credit card statements don’t arrive • Bills arrive for something you didn’t request • You may see an account that you did not open on your credit report • Suspicious inquiries on your credit report • Suddenly denied credit • You may get a call from a collection agency asking why you have not paid a bill

  8. Name Address Date of Birth Social Security Number Driver’s license number Mother’s maiden name Account numbers Card expiration dates Internet passwords Personal identification numbers User Ids for online account access Security codes from the back of credit and debit cards Other identifying information Identity Thieves Look For:

  9. How Your Identity Can Be Stolen • Loss or theft of your wallet, purse, or credit card • Mail theft • Skimming information from the magnetic strip on credit or debit cards • “Dumpster diving” through the trash • “Shoulder surfing,” looking over your shoulder when you are entering a PIN or password • Stealing records or information on the job • Bribing an employee who has access to records

  10. How Your Identity Can Be Stolen • Hacking records • Conning information out of employees • Steal your credit reports by abusing their employee’s authorized access to them, or by posing as someone who may have a legal right to access your report (landlord, employer) • Steal personal information found in your home

  11. How Your Identity Can be Stolen • Eavesdropping • Impersonation • Scam phone calls where a stranger asks for personal or financial information • Pretexting – by posing as legitimate companies and claiming you have a problem with your account • Computer hacking • “Phishing” e-mails • Spyware

  12. TELEMARKETING FRAUD • How Can I Tell if it’s Fraud? • High-pressure sales tactics • Insistence on an immediate decision • The offer sounds too good to be true • A request for your credit card number for any purpose other than to make a purchase • An offer to send someone to your home or office to pick up the money, or some other method to get your funds more quickly

  13. TELEMARKETING FRAUD • A statement that something is “free,” followed by a requirement that you pay for something • An investment that is “without risk” • Unwillingness to provide written information or references that you can contact • A suggestion that you should make a purchase or investment on the basis of “trust”

  14. TELEMARKETING FRAUD • Ways to Avoid Becoming a Victim: • Don’t allow yourself to be pushed into a hurried decision • Always request written information, by mail, about the product, service, investment or charity and about the organization that’s offering it • Don’t make any investment or purchase you don’t fully understand

  15. TELEMARKETING FRAUD • Ask with what state or federal agencies the firm is registered • Check out the company or organization • If an investment or major purchase is involved, request that information also be sent to your accountant, financial adviser, banker, or attorney for evaluation and an opinion • Ask what recourse you would have if you make a purchase and aren’t satisfied

  16. TELEMARKETING FRAUD • Beware of testimonials that you may have no way of verifying • Don’t provide personal financial information over the phone unless you are absolutely certain the caller has a bona fide need to know • If necessary, hang up the phone

  17. DO NOT CALL LIST • National Do Not Call Registry • • Effective for 5 Years • Free • Texas No Call Registry • • Effective for 3 Years • Free online registration • Nominal fee for automated registration or registration by mail

  18. Phishing • Seek to obtain the same kind of information that any ID thief wants • May mimic: • Financial Institutions • Government agencies • Computer software companies • E-Commerce sites • Other legitimate business • May ask you to go to a Web site to verify and enter your personal information • May contain a link that takes you to a Web site that looks just like your financial institution’s

  19. Phishing and Spyware Phishing (continued) • At the fake Web site, crooks copy, or “spoof,” graphics from real Web sites • The message may include an excuse (e.g., the bank is undergoing a computer upgrade), or sound urgent or intimidating (e.g., you will lose access to your account if you don’t provide the information promptly) Spyware software: • Monitors your online activity and diverts information while you are using legitimate Web sites • May be installed on your computer when you visit deceptive Web sites, download seemingly innocent games or other software, or open e-mails that may have spyware attached

  20. Protect Yourself from Phishing • Update your browsers, spam filters, anti-virus and anti-spyware software regularly • Use parental controls • Visit a Web site by typing the Web address – or URL – into your Web browser yourself, not by clicking a link

  21. Phishing and Spyware • Look for the “s” in “https” when engaging in financial transactions because it indicates scrambling or encryption of the communication (don’t just copy a link that appears to have an “s” in “https”) • Look for the lock icon in the lower right corner of the screen when engaging in financial or other sensitive transactions because the lock signifies an encrypted session (Spoofed phishing sites may have fake locks, so beware)

  22. Phishing and Spyware • More information on Phishing is available at: • • •

  23. Spyware • Use anti-spyware software • Set parental controls • Keep current with other software updates and patches

  24. On-Line Safety • Protect your computer like you would protect your personal information • Turn it off when you walk away from the computer so that no one else can gain access while you are not there • Use a firewall • Make sure that your operating system and software are updated on a frequent basis (keep patches current)

  25. On-Line Safety • Make sure that you have anti-spam software – many phishing attacks come as a result of spam • Use strong passwords • Words or numbers that are not easy to guess • Use a combination of numbers, letters, and other characters • Do not use the same password for every account. Consider changing your passwords periodically

  26. On-Line Safety • Know the Web address – or “URL” – of the Web site that you are going to visit • Read and learn how the Web site is going to protect and use your personal information • Clean your hard drive before you dispose of an old computer

  27. FRAUDULENT CHECK TRANSACATIONS • If your personal checks are stolen: • Close the account • Ask your financial institution to notify ChexSystems, Inc. • To prevent retailers from accepting the stolen checks, call: • TeleCheck at 1-800-710-9898 or 1-800-927-0188 • Certegy, Inc. at 1-800-437-5120 • To find out if an identity thief has been passing bad checks in your name, call: • SCAN: 1-800-262-7771

  28. FRAUDULENT NEW ACCOUNTS • Problems opening a new account? Contact ChexSystems, Inc. at: • ChexSystems, Inc. • Attn: Consumer Relations • 7805 Hudson Road, Suite 100 • Woodbury, MN 55125 • 1-800-428-9623 • Fax: 602-659-2197 •

  29. What is FTWCCU doing to Fight Back? • Developing and implementing new technologies to improve online and physical security of information and communication • Complying with new regulatory requirements and enhancing procedures to prevent, find and fight Identity Theft • Educating consumers about how to protect themselves • See FTWCCU Home Page at

  30. What is FTWCCU doing to Fight Back? • Providing assistance to victims of Identity Theft • Cooperating with local, state and federal law enforcement to investigate the crime and prosecute the thieves • Partner with Fair Isaac’s Falcon Fraud Manager to protect member’s credit and debit card transactions worldwide • Falcon Analyzes 65% of all credit card transactions and 85% of all US credit card transactions for possible fraudulent activity • Falcon services ensure lower fraud rates without compromising member satisfaction • Monitors and protects members against account takeover, counterfeit, lost/stolen cards, and more

  31. Protect Your Information • Do not leave a lot of financial records lying around your house for prying eyes to see • Do not keep information that you don’t need in your purse or wallet • Do not leave credit or debit card receipts at the ATM, gas pump, or anywhere else • Do not keep personal identification numbers attached to credit, debit, or ATM cards

  32. Protect Your Information • Shred personal records or get rid of them as effectively as possible • Beware of giving information to anyone over the phone or Internet unless you initiate the contact • Remember that your bank or credit card issuers already have your account numbers, PINs, access codes, passwords, Social Security numbers and other information they need. They won’t phone or e-mail you to ask for it • Protect your mail – send and receive it safely

  33. Protect Your Social Security Number • Do not carry around your Social Security number • Do not give the number to others just because a merchant or someone else says he or she needs it • Ask questions before deciding whether to give it out – Why is it needed? How will it be protected? • Remember, financial institutions will need your Social Security number – for tax reporting and other identifying purposes

  34. Income Tax-Related Identity Theft • Your Social Security number can be used by identity thieves to file a false tax return and get a refund using your name • Your Social Security number could be used by someone to get a job and report income that you didn’t know about • If you do not prepare your own income tax return, be very careful in choosing a tax preparer

  35. Income Tax-Related Identity Theft • If you receive a notice from the IRS that leads you to believe someone may have used your Social Security number fraudulently, respond immediately either by phone or in writing as directed in that notice • IRS tax examiners will work with you and other agencies such as the Social Security Administration to help resolve these problems • • 1-877-777-4778

  36. Avoid Mail Theft • Mailboxes are vulnerable because they have no locks and are located at the end of a drive or walkway, or at the curbside • Identity thieves know that unsecured mail boxes may contain easy and valuable pickings for them because the mail may include: • Credit cards • Credit card statements • Bank statements • Bank checks • Credit card convenience checks • Insurance policies • Mortgage documents • Driver’s licenses • Other material with important information

  37. Secure Your Mail • Take your incoming mail out of the mailbox as soon as possible • Consider getting a mail box with a lock or using a Post Office box • Put your outgoing mail in a blue, United States Postal Service collection box on a street corner; or • Hand it to your letter carrier directly; or • Bring it to the Post Office • If you put it in your mailbox, remember that putting the red flag up alerts the thieves as well as the mail carrier that there is outgoing mail • If you think you are an identity theft victim and the mail is involved, contact

  38. Steps to Catch Identity Thieves • Monitor your online financial accounts frequently • Promptly review your other financial statements, credit card statements, and other bills • Quickly call the financial institution or company if you see anything suspicious and follow up in writing • Sign your new credit and debit cards promptly

  39. What To Do If You Are, or Think You May Be A Victim “Must Do” List – Act Quickly • Use the “Chart Your Course of Action” form (page 11 in “Take Charge: Fighting Back Against Identity Theft” material - • Contact the financial institutions or the companies where the information about you has been misused and let them know that you’re a victim of Identity Theft • Close accounts that you know, or believe, have been tampered with or opened fraudulently

  40. What To Do If You Are, or Think You May Be A Victim • Fraudulent Electronic Withdrawals • The Electronic Fund Transfer Act protects consumers for fraudulent ATM, debit or credit card withdrawals; or any other electronic debit or credit transaction • You have 60 days from the time the statement was sent to you to report discrepancies in writing

  41. What To Do If You Are, or Think You May Be A Victim • Lost or stolen ATM card • Loss is limited to $50 if reported within 2 business days of discovery of loss • If after 2 business days, but within 60 days after discrepancy appears on your statement, loss could be up to $500 of what thief withdraws • If more than 60 days after loss, you are responsible for loss of all unauthorized funds

  42. What To Do If You Are, or Think You May Be A Victim • Credit Card Fraudulent Charges • Write to the creditor at the address given for “billing inquiries,” NOT the address for sending your payments (See sample letter on page 20 – “Take Charge” document • Send your letter within 60 days after the first billing containing the error was mailed to you. • If the billing address was changed by the identity thief and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill

  43. What To Do If You Are, or Think You May Be A Victim • Send your letter by certified mail and request a return receipt. • Include copies of the police report • Keep original police report and copies of letter and supporting documentation • The creditor must acknowledge your complaint in writing within 30 days after receiving it • The creditor must resolve the dispute within two billing cycles (but no more than 90 days) after receiving your letter

  44. Contact a Financial Institution • They will investigate the circumstances • They should take the suspect charges off the account, pending investigation • They will reissue cards, PINs, access codes and passwords, and close accounts, as necessary • They need a written report of what you are claiming

  45. Where to Find Help • If not satisfied with the way the financial institution is handling your complaint you may contact the agency that oversees them • If not sure which agency oversees your financial institution, refer to pages 15-17 in “Take Charge” manual for specific agency web addresses and phone numbers.

  46. Contact the Credit Bureaus • Contact the credit bureaus immediately when you find out you are a victim of Identity Theft to place a fraud alert in your credit report • You also may want to contact the credit bureaus to place a fraud alert if you feel like you may become a victim of Identity Theft (e.g., your wallet containing identifying information has been stolen) • The fraud alert on your credit file signals to would-be creditors to do extra verification before they grant credit in your name

  47. Contact the Credit Bureaus • You only need to notify one of the three nationwide credit bureaus; it will notify the other two to place a fraud alert • Carefully review your credit reports to make sure that there are no fraudulent accounts opened in your name or other errors • After the fraud alert is in place, the credit bureaus will also make available to you a free copy of your credit report

  48. How To Get Credit Reports You Are Entitled to ONE Free Annual Credit Report every 12 Months at: 1-877-FACT ACT or 1-877-322-8228 Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 See Web site, FTC Brochure, or Resource Library for the necessary form for a postal request