Transcript Credit Reporting and Scoring

Identity Theft
Barbara O’Neill, Ph.D., CFP
Rutgers Cooperative Extension, New Jersey
Adapted by Jean Lown, Ph.D.
& Lindsay Grover
Financial Planning for Women April 11, 2012
ID Theft
Deter
 Detect
 Defend


http://www.ftc.gov/bcp/edu/microsites/idth
eft/video/avoid-identity-theft-video.html
2
What is Identity Theft?
a crime of stealing personal information &
using it fraudulently

name

address

Social Security number

birth date

mother’s maiden name, etc.
3
What are Consequences?



Prevents you from getting mortgage, loan,
credit card, etc.
Costs you time & money
Destroys your credit & ruins your good
name

Criminals assume your identify
4
Warning Signs of Identity Theft




Not receiving credit card or bank statements
Denied credit
Getting bills from companies you don’t
recognize
Credit collection agencies calling to collect
on debts that are not yours
5
Common Forms of Identity Theft

Credit card fraud

Communications services fraud (cell phone)

Bank fraud

Fraudulent loans

Internet fraud
6
How Identity Theft Occurs
Identity thieves…

steal wallets and purses containing your ID

steal your mail

complete false “change of address” forms

rummage through trash (“dumpster
diving”)

pose fraudulently as someone else to get
your information
7
More Ways Identity Theft Occurs
Identity thieves…

steal business or personnel records

find personal info in your home

use info you put on Internet (FB)

buy personal info from “inside sources”

“shoulder surf” at ATMs

Tap into wireless communications
8
Technology Scams:
Phishing,
Fraudulent E-mails, etc.
Look-Alike (Fake) Web Sites

Spoof e-mail messages sent to “verify” or
“update” account info

Appears to come from reputable company

Example: eBay, Best Buy, banks, merchants

Looks “legitimate”

Scam is called “phishing”

Get people to disclose sensitive data

Data used to commit identity theft
10
Red Flags of a Phishing Scam

E-mails that direct users to a Web site to
“validate” or “update” info

E-mails warning accounts will be closed

Grammatical errors and typos

References to 9-11, the Patriot Act, etc.

Return addresses at yahoo.com, juno.com

Words Like “Urgent” and “Important”
11
How Identity Thieves
Use Your Information

Change mailing addresses on credit card accounts

Open new credit accounts

Establish phone or wireless service in your name

Open new bank accounts & write bad checks

File for bankruptcy under your name

Make counterfeit checks or debit cards

Buy and take out car loans in your name

Commit crimes in your name
12
Reducing the Risk of ID Theft

Shred credit card applications, receipts,
bank, & billing statements

Avoid giving your SSN unless absolutely
necessary -- use other identifiers

Guard mail from theft (in- & out-going)

Go Green; go electronic
13
More Ways to
Reduce the Risk of Identity Theft

Carry minimum identification
 Travel
with back up ID secured

Limit number of credit cards you carry.

Don’t give personal identification on phone
unless you initiate call.

Protect personal info in your home.

Use STRONG passwords on credit card, bank, &
phone accounts.
14
Still More Ways to
Reduce Risk of Identity Theft

Don’t carry your SS card.

Save ATM & credit card receipts to check
against statements.

Monitor your credit reports 3x/year

https://www.annualcreditreport.com
15
Deter ID Theft




Opt-out of pre-approved credit offers
 Thieves steal & alter to apply in your
name at their address
 https://www.optoutprescreen.com
Protect yourself w/ a credit report freeze
Don’t wait until you are a victim
Place 90 day freeze & renew

https://www.annualcreditreport.com
16
90 day fraud alert
a.k.a. initial security alert
a 90 day fraud alert is free
a credit freeze costs $
Fraud Alert takes only a couple minutes
https://www.experian.com/fraud/center.html
Register with 1 credit bureaus it notifies the
other two CBs.
Also removes you from prescreened offer
mailing list for 6 months. 
Defend: If You’re a Victim...

Contact credit bureau fraud departments
 https://www.annualcreditreport.com

Place fraud alert on your account

Contact creditors & financial institutions

Close accounts that you know or believe someone has
tampered with or opened fraudulently; get new account #

File police report

Report to FTC

Report to state Attorney General office
18
Who’s got your kid’s ID? (SLT 4/8/12)

Utah AG’s ID theft report system

> 3,000 cases in past 5 years


2/3 involved children’s SS#
FTC: 19,000 cases of child ID theft


Why kids? Theft goes undetected for years!
Cases of Utah kids w/ $500,000 in debts!
19
Utah Resources

KSL TV report January 2012
http://www.ksl.com/?nid=960&sid=190748
19&s_cid=rss-960

2:34 min.
Minor Theft Prevention Service
 ID Theft & Child Identity Protection



http://www.idtheft.utah.gov/
20
Protect your kids

AG’s Child Identity Protection Program

Partnership with TransUnion credit agency
 Places warning on child’s credit record
 Puts them in “High risk fraud” database
 If someone applies for credit in kid’s name
creditor gets warning that SS# is minor’s
Don’t pay for costly credit monitoring services

21
ID Theft through Social Networking Sites




Accepting invitations to connect with
unfamiliar persons or contacts
Using low privacy or no privacy settings
Downloading free apps for use on your
profile
Giving your password or other account info
to people you know
Tips from: ID Theft Resource Center: www.idtheftcenter.org
22
Tips from: www.idtheftcenter.org
Social Networking ID Theft



Participating in quizzes (i.e. How well do
you know me?)
 require you to divulge personal info
Clicking links that lead to other websites,
 Beware even if the link was sent by a
friend or posted on friend's profile
Using no or out-of-date security software
23
How to Protect Yourself in Social
Media Settings



Use least amount of info necessary to
register & use sites (use a nickname)
Create STRONG passwords; change often
 upper & lower case, symbols & numbers
Be wise about what you post
Tips from: www.idtheftcenter.org
24
Tips from: www.idtheftcenter.org
Protect Yourself on Social Media




Only connect w/ people you know & trust.
Read privacy and security polices closely
Verify emails & links in emails from your
social networking site.
Un-click the privacy settings that display
the time stamps of your posts
25
ID Theft & Smart Phones





Don't lose it!
Use passcode to protect phone in case it is
lost or stolen.
Use anti-virus software
Update software when updates are available
Only enable GPS when needed (?)
Tips from: www.idtheftcenter.org
26
ID Theft & Smart Phones




Don’t save account # & passwords in text
files.
Don’t use auto-save function on passwords.
Delete unused apps
Be careful about using wifi spots
27
ID Theft Resources




ftc.gov/idtheft
1-877-ID-THEFT
Identity Theft Clearinghouse
Utah:
http://www.idtheftcenter.org/artman2/publi
sh/states/Utah.shtml
28
Questions? Comments?
29