IDENTITY THEFT Robb Cummings Director, Business Development Spring 2018 KASFAA Conference April 5, 2018
What is Identity Theft? Identity (ID) theft is a crime where a thief steals your personal information, such as your full name or social security number, to commit fraud 2 The identity thief can use your information to fraudulently apply for credit, file taxes, or get medical services These acts can damage your credit status, and cost you time and money to restore your good name You may not know that you are the victim of ID theft until you experience a financial consequence (mystery bills, credit collections, denied loans) down the road from actions that the thief has taken with your stolen identity Source: information obtained 09/2017 from https://www.usa.gov/identity-theft
What are the Consequences of Identity Theft? 3 Once identity thieves have your personal information, they can: Drain your bank account Run up charges on your credit cards Open new utility accounts Get medical treatment on your health insurance File for a tax refund in your name and get your refund Give your name to the police during an arrest Source: information gathered 09/2017 from https://www.identitytheft.gov
4 Ways to Identify Identity Theft? You see withdrawals from your bank account that you can t explain You don t get your bills or other mail Merchants refuse your checks Debt collectors call you about debts that aren t yours You find unfamiliar accounts or charges on your credit report Medical providers bill you for services you didn t use Your health plan rejects your legitimate medical claim because the records show you ve reached your benefits limit A health plan won t cover you because your medical records show a condition you don t have The IRS notifies you that more than one tax return was filed in your name, or that you have income from an employer you don t work for You get notice that your information was compromised by a data breach at a company where you do business or have an account Source: information gathered 09/2017 from https://www.identitytheft.gov
5 What are Your Rights If Your Identity Is Stolen? If someone steals your identity, you have the right to: Create an identity theft report Place a 90-day initial fraud alert on your credit report Place a seven-year extended fraud alert on your credit report Get free copies of your credit report Get fraudulent information removed (or "blocked") from your credit report Dispute fraudulent or inaccurate information on your credit report Stop creditors and debt collectors from reporting fraudulent accounts Get copies of documents related to the identity theft Stop debt collectors from contacting you Source: information gathered 09/2017 from https://www.identitytheft.gov
Losses From Identity Theft Are Limited 6 You have limited liability for fraudulent debts caused by identity theft Under most state laws, you re not responsible for any debt incurred on fraudulent new accounts opened in your name without your permission Under federal law, the amount you have to pay for unauthorized use of your credit card is limited to $50. If you report the loss to the credit card company before your credit card is used by a thief, you aren t responsible for any unauthorized charges. If someone makes unauthorized debits to your bank or credit union account using your debit card number (not your card), you aren t responsible if you report the problem within 60 days after they send your account statement showing the unauthorized debits Most state laws limit your liability for fraudulent checks issued on your bank or credit union account if you notify the bank or credit union promptly Source: information gathered 09/2017 from https://www.identitytheft.gov
Losses From Identity Theft Are Limited, cont. 7 If your ATM or debit card is lost or stolen, you can limit your liability by reporting the loss immediately to your bank or credit union Source: information gathered 09/2017 from https://www.identitytheft.gov
Preventing Identity Theft Secure your social security number. Don t carry your social security card in your wallet or write your number on your checks. Only give out your social security number (SSN) when absolutely necessary. 8 Beware of SPAM and chain emails. Don t respond to unsolicited requests for personal and financial information (your name, birthdate, social security number, driver s license number, passport number, credit card number, or bank account number) by phone, mail, or online. Watch out for shoulder surfers. Shield the keypad when typing your passwords on computers and at ATMs. Collect mail promptly. Ask the post office to put your mail on hold when you are away from home. Pay attention to your billing cycles. If bills or financial statements are late, contact the sender. Source: information gathered 09/2017 from https://www.usa.gov/identity-theft and www.identity guard.com/identity-theft-resources
Preventing Identity Theft, cont. Review your receipts. Ask for copies and incorrect charge slips. Promptly compare receipts with account statements. Watch for unauthorized transactions. 9 Shred receipts, credit offers, account statements, and expired cards to prevent dumpster divers from getting your personal information. Store personal information in a safe place at home and at work. Install firewalls and virus-detection software on your home computer. Create complex passwords that identity thieves cannot guess easily. Change your passwords if a company that you do business with has a breach of its databases Order your credit report once a year and review to be certain that it doesn't include accounts that you have not opened. Check it more frequently if you suspect someone has gained access to your account information. Be wary of using public Wi-Fi. Do not login to your financial websites when using them. Source: information gathered 09/2017 from https://www.usa.gov/identity-theft
Preventing Identity Theft, cont. Don t print your driver s license, phone, passport, social security numbers on your checks. Report lost or stolen checks, debit cards, passports, and credit cards immediately. Contact the actual company to report any suspicious email or phone inquiries asking for your account information so they can investigate. If you get financial offers in the mail that do not interest you, shred them before throwing them away. Also destroy any other financial paper before getting rid of them. If you don t get one or more of your regular bills in the mail, call each company to find out why. A thief could have filed a false change-of-address notice to send your mail to another address. 10 Don t put outgoing mail in or on your mailbox. Drop it into a locked US Postal Service collection box. Thieves could steal this outgoing mail and use it to steal your identity. Source: information gathered 09/2017 from https://www.chase.com/digital/resources/privacy-security/security/how-you-can-protect
Preventing Identity Theft, cont. Review your bank statement periodically to ensure checks written for a certain amount were only cashed for that amount and cashed by the intended person. Thieves can get checks and wash (erase) the ink, then rewrite them to themselves for a higher amount. Don t let others use your computer and lock your computer. Update your computer software, passwords, and security questions periodically. If you were hacked, the thief has access to both critical components of your security. Never use the same password twice. If hackers get the password for one of your online accounts, they can try to use it to access your other accounts that take the same credentials. Periodically check your outbound emails for unfamiliar sent emails to ensure no one is using your email. If possible, turn on two-factor authentication. On its own, a password isn t always the strongest line of defense. 11 Source: information gathered 09/2017 from https://www.chase.com/digital/resources/privacy-security/security/how-you-can-protect and http://money.cnn.com/2016/09/22/technology/yahoo-hack-password-tips/ and www.identity guard.com/identity-theft-resources
If You are the Victim of Identity Theft 12 Immediately contact: The Federal Trade Commission The three major credit bureaus Your local police department Any businesses where the identity thief fraudulently conducted a transaction in your name Source: information gathered 09/2017 from https://www.justice.gov/criminal-fraud/identity-theft/identity-theft-quiz
Recovery Steps 13 Step 1 Step 2 Step 3 Step 4 Call the companies where you know fraud occurred Call the fraud department and explain that someone stole your identity Ask them to close or freeze the accounts Change your logins, passwords and PINS for your accounts Place a fraud alert and get your credit reports Place a free 90-day fraud alert by contacting one of the 3 credit bureaus. That company must tell the other two Get your free credit reports from Equifax, Experian and TransUnion Go to annual credit report.com or call 1 877-322-8228 Report identity theft to the FTC Create an online account which will help you walk through each recovery step, track your progress, access forms and letters File a report with your local police department Ask for a copy of the report Create an identity theft report (police report + FTC affidavit) Source: information gathered 09/2017 from https://www.identitytheft.gov
Step 1 - Communicate with Creditors and Debt Collectors 14 Stop creditors and debt collectors from reporting fraudulent accounts Get copies of documents related to the theft of your identity, like transaction records or applications for new accounts Stop debt collectors from contacting you Get written information from debt collectors about a debt, including the name of the creditor and the amount you supposedly owe Source: information gathered 09/2017 from https://www.identitytheft.gov
Step 2 - Work With Your Credit Bureaus 15 Place a 90-day initial fraud alert on your credit report. To place this alert, contact one of the three national credit bureaus: Equifax, TransUnion or Experian. The one you contact must notify the others. When you place an initial fraud alert, you re also entitled to a free copy of your credit reports. You ll get a confirmation letter from each credit bureau with instructions for how to get your free reports. Place a seven-year extended fraud alert on your credit report Get credit bureaus to remove fraudulent information from your credit report Dispute fraudulent or inaccurate information on your credit report In many states, you have the right to place a freeze on your credit report Source: information gathered 09/2017 from https://www.identitytheft.gov
16 Step 3 Reduce your Risk You have a right to a free credit report every 12 months To order: annualcreditreport.com 1-877-322-8228 Contact any one of the three nationwide credit reporting companies. Equifax 1-800-525-6285 Experian 1-888-397-3742 TransUnion 1-800-680-7289
17 Step 4 Contact the FTC File an identity theft complaint with the FTC: ftc.gov/complaint 1-877-ID-THEFT 1-877-438-4338 Learn more identity theft: ftc.gov/idtheft
Step 5 Creating an Identity Theft Report 18 If you have your identity stolen, create an identity theft report An identity theft report proves to businesses that someone stole your identity, and makes it easier to correct problems caused by identity theft You can create an Identity Theft Report by combining your FTC Identity Theft Affidavit (www.ftccomplaintassistant.gov) with a police report Source: information gathered 092017 from https://www.identitytheft.gov
19 Step 6 Working with the IRS Respond quickly to notices from the Internal Revenue Service. If someone has used your Social Security number on a tax return, contact IRS s Specialized Identity Theft Protection Unit 1-800-908-4490
Questions?
The information contained in this presentation is not comprehensive, is subject to constant change, and therefore should serve only as general, background information for further investigation and study related to the subject matter and the specific factual circumstances being considered or evaluated. Nothing in this presentation constitutes or is designed to constitute legal advice. For school use only. Not to be distributed to students. MKT12896 09/2017