Transcript Exit Counseling Presentation

Understanding Credit Reports
and Protecting Your Identity
© 2005 by Access Group, Inc. All rights reserved.
“Identity theft is an
epidemic”
Thomas Chapman
Chairman and CEO of Equifax
June 27, 2005
What is identity theft?
 A federal crime
 You’re a victim of identity theft when:
 someone
 without
 to
uses your personal information
your knowledge or permission
commit fraud or other crimes
A few recent statistics
. .
.
• 47 major data breaches in past 4 months
• 20 at universities
• Nearly 50 million records affected
• 40 million records compromised at a single
company
• 9.9 million Americans were victims of ID
theft in past 12 months (4.6% of US pop.)
A few more statistics
. .
.
• 16% of all ID theft complaints mention
new phone accounts opened; 5% see
added utility charges
• ID thieves are twice as likely to draw from
(and drain) existing accounts as to create
new accounts
• Fraudulent EFT charges have doubled
since 2002
Are you credit-safe?
“Identity Theft IQ Test”
• Are you at risk for identity theft?
• Test your “Identity Quotient”
Used with permission of the Privacy Rights
Clearinghouse, www.privacyrights.org.
Impact of ID Theft
• Spend an average of 28 hours resolving
credit, financial, and other problems from
crime
• Can last several years even after criminal
use of identity has ended
• Median cost per fraud victim is $750
• Costing billions annually in US
What information is used?
Following information about you is
used most often:
• Name
• Address
• Social Security number (SSN)
• Bank or credit account number, or other
identifying information
How is your information
obtained?
• Rummaging through trash
• Theft of personal property such as wallet,
purse, etc.
• Stealing mail, especially credit card and bank
statements
• Completing “Change of Address” forms to redirect mail to another address
• Using personal information shared on Internet
MORE Ways to Obtain Your
Information
• Posing as representative from legitimate
company you do business with, typically by
e-mail or phone call
• Obtaining information from workplace—
companies where you’re a customer,
employee, patient, student, etc.
• Stealing records directly from workplace
• Bribing an employee with access to records
• Hacking into company’s computer system
How might your information
be used?
• To access your current accounts to take
money or charge purchases
• To open new checking or credit card accounts
to write bad checks or charge purchases that
are not repaid
• To take out loan to buy a new car, etc., without
repaying debt
• To use your name to file bankruptcy on debts
they incurred in your name, or to use your
name when arrested by police
Detecting Identity Theft
What are some warning signs that
you may be a victim of ID theft?
• Not receiving anticipated bills or other mail
• Receiving credit cards not applied for
• Being denied credit or receiving less favorable
terms for no apparent reason
• Receiving calls or letters from debt collectors
or businesses regarding unpaid charges you
did not make
Discovering Theft Sooner is Better!
• The sooner you realize you’re a victim of
ID theft, the better . . .
• When contacted by creditors or turned down for credit,
average loss = $12,021
• When discovered by reviewing monthly paper
statements, average loss = $4,543
• When discovered by frequently reviewing electronic
statements, average loss = $551
• Monitor account statements electronically
How can you protect
yourself against ID theft?
Fair & Accurate Credit
Transactions Act of 2003
(“FACT Act”)
New protections against identity theft:
• Free credit reports annually (12-month roll-out)
• Easier to place a fraud alert on credit history
• Notification when derogatory information is reported
• Notification when offered credit terms are less
favorable than offered to the average applicant
Protecting Yourself from
Identity Theft
Protect your . . .
• Social Security Number (SSN)
• Personal information
• Credit
• Computer
• Mail
Protecting Your SSN
• Never carry anything with your SSN
printed on it
• Ask any company using your SSN as
your account number to assign you new
number
• Don’t print your SSN on any documents
(e.g., checks)
• Never provide your SSN to anyone
unless you initiated the contact
Protecting Your Personal
Information
• Never leave your wallet, purse, checkbook,
or credit card receipts in your car
• Don’t provide personal information over the
phone unless you initiated call
• Shred sensitive papers/documents
including all your financial garbage
• Memorize your ATM password/PIN—never
store it in your purse or wallet
Protecting Your Credit
• Check your credit reports at least once per
year from each of the three national credit
bureaus
• Review all account statements carefully
• Keep list of all credit/debit card numbers
and issuer phone numbers
• Block your name from pre-approved credit
card lists (call 1-888-5-OPT-OUT)
Protecting Your Computer
• Use firewall software to protect computer
from viruses and unwanted spam
• Use secure browser when making credit
card purchases online
• Consider using single credit card
account for all online transactions
• Never use debit card or electronic check
when shopping online
Protecting Your Mail
• Have your mail delivered to secure
location
• Don’t put bill payments in an unlocked
mailbox (e.g., as an outgoing mail bin
at work)
Obtaining Your Credit Report
Go to www.AnnualCreditReport.com for
a free copy of your report every 12 months.
Also available online (usually for a fee)
from three national credit reporting
agencies at:
• equifax.com
• experian.com
• transunion.com
AnnualCreditReport.com
Reading Your Credit Report
• Personal identifying
information
• Alerts
• Credit summary
• Account history
• Credit inquiries
• Collections
• Public Records
• Dispute file
information
Sample Credit Report
Personal Profile
Sample Credit Report
Credit Summary
Sample Credit Report
Public Records
Sample Credit Report
Credit Inquiries
“Soft” Inquiries Have NO Impact
Soft inquiries include:
• Self inquiries
• Promotional inquiries
• Administrative inquiries
• Inquiries from prospective employers
Sample Credit Report
Account History
Reading Your “Account History”
Verifying the Information
• Account Name
• High Balance
• Account Number
• Limit
• Acct Type
• Past Due
• Acct Status
• Payment Status
• Monthly Payment
• Comments
• Date Open
• 24-Month
Payment History
• Balance
• Terms
What should you do if
you are an ID theft victim?
When Identity Theft Occurs
FTC recommends following
four (4) FIRST steps:
1. File fraud alert with all three national credit bureaus
•
Review credit reports from all three bureaus
2. Close affected accounts immediately
•
Contact creditor(s) of affected account(s)
3. File police report
•
Obtain copy of report—submit to creditors and
others needing proof of crime
4. File complaint with the FTC
•
Can be done online at www.consumer.gov/idtheft
“Take Charge”
http://www.consumer.gov/idtheft/
Download this free
FTC publication as
PDF from the FTC
Web site (above).
When Identity Theft Occurs
You also should:
• Document all contacts
• Obtain legal counsel, if needed
For More Information
• Federal Trade Commission
www.ftc.gov
www.consumer.gov/idtheft
• Privacy Rights Clearinghouse
www.privacyrights.org
• Identity Theft Resource Center
www.idtheftcenter.org
We’re here to help you!
Access Group
800-282-1550
accessgroup.org