ID Theft: Avoiding & Detecting

Welcome to today’s FREE WebinarSponsored by theSC State Library and SC Department of Consumer Affairs

Getting started… Host/Moderator - Dr. Curtis R.

Rogers, Communications Director, SC State Library

December ID Theft Prevention Month www.statelibrary.sc.gov

Recording Q&A at end of session contact info:

crogers@statelibrary.sc.gov 803-734-8928

Today’s PresentersJuliana Harris is the Communications Coordinator for the South Carolina Department of Consumer Affairs. She arrived at SCDCA in January 2012 and has since organized, presented, and facilitated consumer education programs. Ms. Harris is the main point of media contact at SCDCA and is the creator and distributor of SCDCA press releases. She also designs and creates SCDCA’s consumer publications, including newsletters, educational and promotional materials. Juliana is a recent graduate of the University of South Carolina having earned her Bachelor's of Arts in 2010.

Donna Backwinkel joined the Department of Consumer Affairs in November 2004. Her work as Consumer Services Director has focused on outreach efforts, staff training and consumer education. She has established a Business Liaison position within the Services Division, providing businesses a contact for consumer law questions. She also started the After Hours project to allow consumers who cannot attend luncheon and daytime programs a chance to learn about consumer law in the evening. Prior to Consumer Affairs, she was an attorney at the Columbia law firm of Berry Quackenbush and Stuart. While there, Ms. Backwinkel served as a trainer for other attorneys in the area of consumer law, and she concentrated her practice in this area.

ID THEFTAvoiding and Detecting

Juliana HarrisCommunications Coordinator

SC Department of Consumer Affairs

THE DEPARTMENT OF CONSUMER AFFAIRS

Department Overview: 5 Divisions

Consumer Services and EducationAdvocacyAdministrationLegalPublic Information

Next: ID Theft

WHY SHOULD YOU CARE?

FTC’s #1 complaint in 2011 was ID Theft.

Fastest growing white collar crime in the USA.

SC ranks #20 in nation for volume of ID Theft Complaints.

$50 Billion in losses annually.

It can happen to anyone!

Next: What is it?

WHAT IS ID THEFT?

Use of personal identifying information to commit fraud or crime.

FTC estimates that 9 million people are victims of ID Theft every year.

Next: How?

HOW DOES ID THEFT HAPPEN?

Friends & Family

Pretexting

Phishing

Skimming

Pre-Approval Offers

Unscrupulous employees @ businesses with which you have a relationship

Dumpster Diving

Hacking/Security Breach

Next: Red Flags

RED FLAGS

Mistakes on your financial statements.

Bills don’t arrive on time.

Bills or collection notices for things you never purchased.

Unexpectedly denied a loan.

You don’t get your tax refund and end up owing the IRS.

Next: Top 3

TOP 3 IN SC

24% Government Documents or Benefits Fraud Unlawful use or counterfeit of gov’t issued documents

15% Phone or Utilities Fraud Obtaining these services with false info

11% Credit Card Fraud Opening a line of credit with false info

Next: Credit Report

AVOIDING ID THEFT

Dispose of sensitive materials appropriately.

Don’t disclose personal info to someone you don’t know. On the phone Online Through the mail

Next: Pre-Screened

AVOIDING: OPT OUT OF PRESCREENED CREDIT OFFERS

If you receive pre-screened credit card offers in the mail (based on your credit data), tear them up after you decide you don’t want to accept the offer.

To opt out of receiving pre-screened credit card offers, call: 1-888-5-OPTOUT (1-888-567- 8688).

In addition, you can notify the three major credit bureaus that you do not want personal information about you shared for promotional purposes.

Next: Recordkeepin

g

AVOIDING: RELEASING YOUR SSN

Businesses may ask you for your SSN to do a credit check. Sometimes they want your SSN for general record keeping. You don’t have to give a business your SSN just because they ask for it. If someone asks for your SSN, ask the following questions:

Why do you need my SSN? How will my SSN be used? What law requires me to give you my SSN? What will happen if I don’t give you my SSN?

Next: Online Banking

AVOIDING: ONLINE BANKING SAFETY

Monitor your account regularly. Don’t login in the library or at your local internet café. Don’t try to access your account through e-mailed or popup

links, even if they do look like they came from your bank. Make sure the web address begins with “https”, which means

the server is secure. Change your password regularly. And don’t share it! Install firewalls, spyware blockers, and antivirus software.

Next: Info Compromised

INFORMATION COMPROMISE

If you know or suspect that some of your personal identifying information has been compromised.

Place an initial Fraud Alert on your credit report. Monitor your financial statements. Request a free credit report 1-2 months after placing the fraud alert.

Next: Recovering

RECOVERING

• Document all correspondence.

• It can take many hours of phone calls and letters to repair the damage.

Next: Security Freeze

SECURITY FREEZE

Stops businesses from accessing your credit report without your permission

Doesn’t affect existing accounts Free to place, lift, or thaw Contact each of the THREE CRAs Thaw if you want to apply for new credit or services

Remember to monitor your credit report and financial statements!

Next: Credit Reports

CREDIT REPORTSHow to read them and correct errors.

Donna Backwinkel, Esq.Director of Consumer Services and Education

SC Department of Consumer Affairs

WE WILL LEARN:

How to read your credit report

How to correct errors

CREDIT REPORT – GENERAL INFORMATION• Contains information about your credit history, address, place

of employment• A snapshot taken at a given point in time – may vary from day-

to-day• Credit score is a numerical value of the information contained

in the report• Lenders use the score as a predictor of future payment and to

determine if credit will be given, interest rates• Different formulas for each CRA

HOW TO READ THE REPORT

Usually divided into four sections: • identifying information, • credit history, • public records, and • inquiries

IDENTIFYING INFORMATION

• Includes current and previous addresses, date of birth, telephone numbers, driver’s license number, employer and spouse names

• Review carefully – sometimes incorrect information may indicate attempted or actual identity theft

CREDIT HISTORY

Credit accounts are listed - may be referred to as trade lines

Name of creditor and account number When you opened the account Kind of credit Individual or joint Total amount of loan/high credit How much presently owed Fixed monthly payment/minimum monthly payment Status How well you have paid

PUBLIC RECORDS

• Best if this section is blank!• Financial-related data: bankruptcies, judgments, tax

liens• Does not include criminal activities or arrests

INQUIRIES

Two sections under this heading“Hard” inquiries – consumer initiates this by filling out credit application

“Soft” inquiries – companies want to send promotional information to pre-qualified groups – or – current creditors who are monitoring your account

REVIEWING YOUR CREDIT REPORT

• Date of last activity: Last payment made or last charge on the account. If more than 7 years (plus additional time), delete.

• Accuracy of information: amount owed, when last payment made, status, payment history

• Is it your debt?• Any other issues or disputes?

CREDIT REPORT REALITY

• No one can remove information that is accurate and timely

• You can request an investigation of information that is inaccurate

• You are entitled to a free credit report if you have been denied credit, insurance or employment based on an item on your credit report

• Disputes are free

CREDIT REPORT TIDBITS

• Lenders generally look at the last two years – they are looking for trends

• Some estimates show 80% of credit reports have misinformation

• You are entitled to a free report if negative action has been taken due to something on report

• The three major credit reporting agencies may have different information – so your score may be different at each agency

HOW TO DISPUTE

• Send letter to credit reporting agencies as well as company that provided the information

• Clearly identify yourself – use report ID number, if available

• Be specific as to inaccuracy• Explain why it is in error• State how it needs to be corrected• Keep copy of letter

IF YOUR DISPUTE IS NOT RESOLVED

• You have the right to place information in your report, 100 words or less, explaining why you dispute the item

• You can go to court – must be done within 2 years of item appearing on report

MONITORING YOUR CREDIT REPORT

Call 877.322.8228 to request your free report; or

Go to annualcreditreport.com

Three free each year (one from each CRA).

Next: Avoid

RESOURCES

SCDCA consumer.sc.gov 800.922.1594

FTC ftc.gov 877.382.4357

Credit Reporting Agencies (Fraud Lines) Equifax: 800.525.6285 Experian: 888.397.3742 TransUnion: 800.680.7289