IDENTITY THEFTIDENTITY THEFTJust Because You’re Just Because You’re

Paranoid Doesn’t Mean Paranoid Doesn’t Mean They’re They’re NotNot Out To Get Out To Get

You!You!

Evan EnglerEvan EnglerCoordinator of Financial Coordinator of Financial

ServicesServices

NYSUT Member BenefitsNYSUT Member Benefits

(631) 273-8822(631) 273-8822

eengler@nysutmail.orgeengler@nysutmail.org

Facts & FiguresFacts & Figures Still the fastest-growing crime in AmericaStill the fastest-growing crime in America $15.6 Billion in Consumer Fraud losses annually-FTC*$15.6 Billion in Consumer Fraud losses annually-FTC* $48 Billion in Consumer Fraud losses annually-Javelin**$48 Billion in Consumer Fraud losses annually-Javelin**(Why the disparity? Different methodologies, possible (Why the disparity? Different methodologies, possible statistical errors)statistical errors)

Est. 9-10 million victims in U.S. per yearEst. 9-10 million victims in U.S. per year Time-consuming and potentially expensive to correct*Time-consuming and potentially expensive to correct*- Median: 4-6 hrs., minimal out-of-pocket expenses- Median: 4-6 hrs., minimal out-of-pocket expenses- Severe: 75-100 hrs., $2,000 out-of-pocket- Severe: 75-100 hrs., $2,000 out-of-pocket

Overall: number of incidents up, severity downOverall: number of incidents up, severity down ID thieves more common, move more quicklyID thieves more common, move more quickly Gender disparity: women 26% more likely to be victimsGender disparity: women 26% more likely to be victims

*Source: www.ftc.gov/os/2007/11/SynovateFinalReportIDTheft2006.pdf**Source: www.javelinstrategy.com, 2009 ID Fraud Survey Report

Defining the CrimeDefining the Crime

Identity theft occurs when Identity theft occurs when someone uses your personally someone uses your personally identifying information (name, identifying information (name, Social Security number, credit Social Security number, credit card number, etc.) to commit card number, etc.) to commit

fraud or other crimes.fraud or other crimes.

The Crime ItselfThe Crime Itself Basic – Basic – Lost/stolen wallet/purseLost/stolen wallet/purse

use for purchasesuse for purchases time frame and security issuestime frame and security issues the MOST COMMON form: low-techthe MOST COMMON form: low-tech

Account TakeoverAccount Takeover switch address and billing for accountsswitch address and billing for accounts use for purchases, goods & servicesuse for purchases, goods & services

Full ID TheftFull ID Theft in addition to Account Takeoverin addition to Account Takeover creation of new accountscreation of new accounts other forms on the decline; “new account” other forms on the decline; “new account” fraud is on the risefraud is on the rise

What is Needed (Part 1)What is Needed (Part 1) InformationInformation

- Name- Name- Address- Address- Phone number- Phone number- Date of birth- Date of birth- Social Security Number- Social Security Number- Driver’s license- Driver’s license- Account #s: existing - Account #s: existing

credit cards, credit cards, checking, checking, savings, utility, policy #s)savings, utility, policy #s)

What is Needed (Part 2)What is Needed (Part 2) Mother’s maiden nameMother’s maiden name Name of high school/mascotName of high school/mascot Model of first car ownedModel of first car owned Place of birthPlace of birth Pet’s namePet’s name E-mail addressE-mail address On-line ID’sOn-line ID’s Favorite colorFavorite color

Where Do They Get The Where Do They Get The Info?Info?

Lost/stolen purse or walletLost/stolen purse or wallet Mail theft Mail theft Your place of businessYour place of business

time cardstime cards ID badgesID badges newslettersnewsletters HR updatesHR updates

Where Do They Get The Where Do They Get The Info? (continued)Info? (continued)

Stores/RestaurantsStores/Restaurants purchases with credit cards or checkspurchases with credit cards or checks

Mailing lists – legal/illegal Mailing lists – legal/illegal home/businesshome/business

InternetInternet

- search engines- search engines

- news archives- news archives

- public records- public records

- internet purchases/auctions- internet purchases/auctions

An Internet Hacker’s An Internet Hacker’s ToolkitToolkit VirusesViruses: take over computer, perform : take over computer, perform

mischief and/or destroy contentmischief and/or destroy content WormsWorms: Destroy, slow down, frustrate: Destroy, slow down, frustrate Trojan horsesTrojan horses: designed to lower your : designed to lower your security and let anyone insecurity and let anyone in

SpywareSpyware: programs that run silently in : programs that run silently in the background, gathering information the background, gathering information about your online habits (sold to about your online habits (sold to marketers)marketers)

AdwareAdware: similar to spyware, but : similar to spyware, but information delivered to a much larger information delivered to a much larger base of corporate interestsbase of corporate interests

KeyloggersKeyloggers: VERY dangerous; records : VERY dangerous; records every keystroke you make (usernames, every keystroke you make (usernames, passwords), and delivers them to a passwords), and delivers them to a third partythird party

New School…New School… ““Phishing” - Phishing” - hunting for information; hunting for information; e-mails or pop-ups sent to your computer, e-mails or pop-ups sent to your computer, ostensibly from financial institutions or ostensibly from financial institutions or other companiesother companies

““Pharming” - Pharming” - fake web sites on fake web sites on servers; authentic looking, but gathering servers; authentic looking, but gathering data for criminal interestsdata for criminal interests

““Skimming” – Skimming” – using electronic using electronic readers/storage devices to steal credit readers/storage devices to steal credit or debit card numbersor debit card numbers

““Screen scrapersScreen scrapers” – can snatch and send ” – can snatch and send images of what is on your screen to a images of what is on your screen to a third party (account numbers, usernames, third party (account numbers, usernames, etc.)etc.)

……and Old Schooland Old School ““Dumpster diving” – Dumpster diving” – your garbage can be your garbage can be a treasure trove of information for ID a treasure trove of information for ID thieves: bills, bank statements, old W-2’s thieves: bills, bank statements, old W-2’s or tax forms…or tax forms…

““Pickpocketing” – Pickpocketing” – what are you carrying what are you carrying around every day that a thief can use?around every day that a thief can use?

““PretextingPretexting” – using false pretense on ” – using false pretense on the phone (or via e-mail) to get you to the phone (or via e-mail) to get you to give up valuable information: “I’m calling give up valuable information: “I’m calling from the Hurricane Relief Disaster Fund…”from the Hurricane Relief Disaster Fund…”

What Can Happen Then?What Can Happen Then? Info used to obtain documents to create Info used to obtain documents to create fraudulent IDfraudulent ID

Internet sites – “Entertainment only” – Internet sites – “Entertainment only” – for IDs, licenses, birth certificatesfor IDs, licenses, birth certificates

Contact account issuers to change Contact account issuers to change address, then run up chargesaddress, then run up charges

Use pre-approved offers to open new Use pre-approved offers to open new accts – use until limit is hit – accts – use until limit is hit – delinquent account on your credit reportdelinquent account on your credit report

Open bank accounts to write bad checksOpen bank accounts to write bad checks Establish new lines of Establish new lines of credit/loans/mortgagescredit/loans/mortgages

What Can Happen Then?What Can Happen Then? Forge counterfeit checks or debit cardsForge counterfeit checks or debit cards Clone cell numbers to make calls or Clone cell numbers to make calls or establish new service in your nameestablish new service in your name

Obtain utility services in your nameObtain utility services in your name Use info to file for Gov’t. Use info to file for Gov’t. loans/grants/benefits including loans/grants/benefits including unemployment and/or tax refundsunemployment and/or tax refunds

Once debt is accumulated, file bankruptcy Once debt is accumulated, file bankruptcy in your name to avoid paymentin your name to avoid payment

Provide your name to police if arrested; Provide your name to police if arrested; when they don’t show for court date, when they don’t show for court date, arrest warrants go out in your namearrest warrants go out in your name

Applications limited only by their Applications limited only by their imagination and intelligenceimagination and intelligence

Remember…An Ounce of Remember…An Ounce of Prevention is Worth a Prevention is Worth a

Pound of CurePound of Cure

Now That I’ve Scared You Now That I’ve Scared You …… ……

What Do You Do?What Do You Do?

The BasicsThe Basics Carry only what you need – no SSN or extra Carry only what you need – no SSN or extra credit cardscredit cards

PasswordsPasswords create different passwords: no “magic password” create different passwords: no “magic password” that provides access to ALL your accountsthat provides access to ALL your accounts

rotate regularlyrotate regularly be creative – mix letters & #sbe creative – mix letters & #s

Invest in a cross-cut shredder (or Invest in a cross-cut shredder (or BURNBURN everything)everything)

Locked mailbox or PO box Locked mailbox or PO box Check your credit report and review your file Check your credit report and review your file annually– annually– www.annualcreditreport.comwww.annualcreditreport.com

Do not provide personal or financial Do not provide personal or financial information over the phone or in public areasinformation over the phone or in public areas

The Basics (continued)The Basics (continued) Register for “Do Not Call” listRegister for “Do Not Call” list Opt out ofOpt out of

the sale of your information by the institutions the sale of your information by the institutions you do business withyou do business with

pre-approved credit offers by calling 1-888-pre-approved credit offers by calling 1-888-5OPT-OUT (they will require SSN) or at 5OPT-OUT (they will require SSN) or at www.optoutprescreen.comwww.optoutprescreen.com (preferred: (preferred: “permanent” opt-out vs. “five-year” option)“permanent” opt-out vs. “five-year” option)

Remove your name from commercial marketing Remove your name from commercial marketing databases: Direct Marketing Association databases: Direct Marketing Association www.the-dma.org/cgi/offmailinglistwww.the-dma.org/cgi/offmailinglist ($1)($1)

Keep a list or photocopy of all credit Keep a list or photocopy of all credit accounts with expiration dates and phone accounts with expiration dates and phone numbers numbers in safe secure spotin safe secure spot

The Basics (continued)The Basics (continued) Be alert to telephone scams – be wary of Be alert to telephone scams – be wary of providing personal information over the providing personal information over the phone and notify institutions of suspicious phone and notify institutions of suspicious inquiriesinquiries

Do not give out financial information unless Do not give out financial information unless you have initiated the call and know the you have initiated the call and know the person/institution you are dealing with person/institution you are dealing with

Block line of sight when using ATMs, phone Block line of sight when using ATMs, phone or bank cardsor bank cards

Do not sign up for unfamiliar contests or Do not sign up for unfamiliar contests or sweepstakessweepstakes

The Basics (continued)The Basics (continued) Restrict use of SSN in business Restrict use of SSN in business relationships – ask for alternate PIN – relationships – ask for alternate PIN – push the issue – if required ask for push the issue – if required ask for company Privacy Act noticecompany Privacy Act notice

Carefully review your copy of your SS Carefully review your copy of your SS Personal Earnings & Benefits StatementPersonal Earnings & Benefits Statement

Be cautious of the need/use of child’s Be cautious of the need/use of child’s SSN or the appearance of your child’s SSN or the appearance of your child’s name in mail solicitationsname in mail solicitations

Never throw away receipts in public trash Never throw away receipts in public trash canscans

Stay up to date: Stay up to date: www.ftc.gov/idtheftwww.ftc.gov/idtheft or or www.lookstoogoodtobetrue.comwww.lookstoogoodtobetrue.com

What Do You Do? What Do You Do? – Your Mail– Your Mail

Do not use your mailbox for outgoing Do not use your mailbox for outgoing mailmail

Never put acct # on outside of envelope Never put acct # on outside of envelope (OR on personal checks)(OR on personal checks)

Be conscious of how and what mail you Be conscious of how and what mail you discarddiscard

Track arrival of regular billsTrack arrival of regular bills Put response postcards in envelopesPut response postcards in envelopes Have mail held or picked up when you Have mail held or picked up when you are awayare away

What Do You Do? – Bank What Do You Do? – Bank AccountsAccounts

Ask bank or creditors to add Ask bank or creditors to add security protection to security protection to accounts – special code or accounts – special code or passwordpassword

Carefully review statementsCarefully review statements ChecksChecks

don’t preprint personal don’t preprint personal information on checksinformation on checks

report lost/stolen checks report lost/stolen checks immediatelyimmediately

review shipment completelyreview shipment completely pick up at bank instead of pick up at bank instead of deliverydelivery

store cancelled checks securelystore cancelled checks securely

What Do You Do? – What Do You Do? – Credit Accounts/Credit Credit Accounts/Credit

CardsCards

Sign credit cards in permanent ink Sign credit cards in permanent ink immediately immediately ---add “ask for photo ID”---add “ask for photo ID”

Never write PIN’s on cards (or anywhere Never write PIN’s on cards (or anywhere else)else)

Cut/shred old credit and ATM cardsCut/shred old credit and ATM cards Destroy unwanted credit card Destroy unwanted credit card convenience checks convenience checks

Use credit cards instead of Use credit cards instead of debit cards whenever possibledebit cards whenever possible

What Do You Do? – What Do You Do? – Credit Accounts/Credit Credit Accounts/Credit

CardsCardsFRAUD ALERTS: Creditors must use “reasonable FRAUD ALERTS: Creditors must use “reasonable policies and procedures” (usually a phone policies and procedures” (usually a phone call) to verify your identity before call) to verify your identity before issuing new credit in your name issuing new credit in your name

Initial: 90 days, issued upon request, may Initial: 90 days, issued upon request, may be renewedbe renewed

Extended: 7 years, requires Identity Theft Extended: 7 years, requires Identity Theft ReportReport

CREDIT FREEZE: Restricts access to your CREDIT FREEZE: Restricts access to your credit report; potential creditors cannot credit report; potential creditors cannot get access until you remove the freeze; in get access until you remove the freeze; in New York, free for first-time users or New York, free for first-time users or identity theft victims, $5 each time it is identity theft victims, $5 each time it is used thereafterused thereafter

What Do You Do? – What Do You Do? – Credit Accounts/Credit Credit Accounts/Credit

Cards (continued)Cards (continued) Cancel credit accounts no longer Cancel credit accounts no longer in use in use

Draw line through any blank area Draw line through any blank area above your signature above your signature

Lost/stolen credit cardsLost/stolen credit cards report immediatelyreport immediately ask issuer to close account and ask issuer to close account and start new one if neededstart new one if needed

update any automatic paymentsupdate any automatic payments

What Do You Do? – What Do You Do? – ComputersComputers

Firewall protectionFirewall protection – especially DSL or – especially DSL or cable modemcable modem

Use Use credit cardscredit cards, NOT debit cards, for , NOT debit cards, for online purchases (as well as any other online purchases (as well as any other kinds of purchases!)kinds of purchases!)

Don’t store informationDon’t store information in accounts on in accounts on websites, or use online “wallets”websites, or use online “wallets”

What Do You Do? – What Do You Do? – ComputersComputers Before buying from Web site:Before buying from Web site:

check with Better Business Bureaucheck with Better Business Bureau check the site’s privacy policycheck the site’s privacy policy ensure site is ensure site is secure secure and protects your and protects your personal info before sending itpersonal info before sending it- - https https in address line of browserin address line of browser- - “Lock” icon“Lock” icon in address line OR at bottom in address line OR at bottom right of browserright of browser

What Do You Do? – What Do You Do? – Computers (continued)Computers (continued)

Do not respond to internet or phone Do not respond to internet or phone solicitations even from businesses you solicitations even from businesses you recognize recognize

Check for spyware regularly at home & work – Check for spyware regularly at home & work – Spybot®, Ad-aware® both effective AND freeSpybot®, Ad-aware® both effective AND free

If setting up a home network, enable If setting up a home network, enable encryption on wireless routers immediatelyencryption on wireless routers immediately

When disposing of an old computer, do not When disposing of an old computer, do not rely on “delete” function to remove files – rely on “delete” function to remove files – use a strong “wipe” utility programuse a strong “wipe” utility program

Rules to FollowRules to Follow Document Everything!!!!!!!!Document Everything!!!!!!!! Follow up on your actionsFollow up on your actions Be persistentBe persistent Don’t give upDon’t give up Don’t give in – and never, Don’t give in – and never, NEVERNEVER agree agree to pay to pay ANYANY portion of the debt!!!!!!! portion of the debt!!!!!!!

Keep records of all correspondenceKeep records of all correspondence (dates, time, etc.) – include (dates, time, etc.) – include commitments to take actioncommitments to take action

Things To ConsiderThings To Consider

If creditors, agencies or credit bureaus are If creditors, agencies or credit bureaus are uncooperative, consult an attorney that uncooperative, consult an attorney that specializes in consumer law – NYSUT Member specializes in consumer law – NYSUT Member Benefits Trust-endorsed Legal Service PlanBenefits Trust-endorsed Legal Service Plan

To deal with stress and anxietyTo deal with stress and anxiety psychological counseling may be neededpsychological counseling may be needed you can network with other victims via The you can network with other victims via The Identity Theft Resource Center (Identity Theft Resource Center (www.idtheftcenter.orgwww.idtheftcenter.org))

Identity Theft CoverageIdentity Theft Coverage

Relatively new - offered by limited Relatively new - offered by limited carrierscarriers

Most commonly a rider on existing Most commonly a rider on existing insuranceinsurance

Coverage focuses on Coverage focuses on 1) Education – Who, What, When , Where, 1) Education – Who, What, When , Where, Why & How?Why & How?2) Prevention 2) Prevention 3) Restoration3) Restoration4) Reimbursement4) Reimbursement

Identity Theft Identity Theft InsuranceInsurance

Coverage includes $ benefit for victims to Coverage includes $ benefit for victims to covercover- lost wages ($500 week x 4 weeks)- lost wages ($500 week x 4 weeks)- loan re-application fees- loan re-application fees- attorney fees- attorney fees- misc. costs for documentation, postage, - misc. costs for documentation, postage, copying materials, etc. copying materials, etc.

Premium costsPremium costs $15-25k coverage/$100 deductible ($25 to $125 $15-25k coverage/$100 deductible ($25 to $125 annually)annually)

Hand holding varies from plan to planHand holding varies from plan to plan

NYSUT Member Benefits NYSUT Member Benefits ProgramsPrograms

Identity Theft 911 Identity Theft 911 - Added to MetLife - Added to MetLife Home/Renters/Condo/Mobile Home Insurance Home/Renters/Condo/Mobile Home Insurance PoliciesPolicies- Specialists in Education & Restoration- Specialists in Education & Restoration

Equifax – Credit Watch GoldEquifax – Credit Watch Gold- Voluntary Program- Voluntary Program- NYSUT Member Benefits Discount- NYSUT Member Benefits Discount- Includes ID Theft Insurance coverage- Includes ID Theft Insurance coverage

NYSUT Member BenefitsNYSUT Member Benefits

For information about the programs For information about the programs mentioned in this presentation or mentioned in this presentation or for information about contractual for information about contractual expense reimbursement/ endorsement expense reimbursement/ endorsement arrangements with endorsed program arrangements with endorsed program providers, please call NYSUT providers, please call NYSUT Member Benefits at 800-626-8101 or Member Benefits at 800-626-8101 or visit us at visit us at www.memberbenefits.nysut.org.www.memberbenefits.nysut.org.