Identity Theft Essentials

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© Family Economics & Financial Education – September 2010– The Essentials to Take Charge of Your Finances– Identity Theft Essentials – Slide 2

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

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IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account

information

The FTC is a government agency that promotes consumer protection



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Identity thieves try to obtain personal

information from victims in order to steal their identities

Personal

Information



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• Making purchases with a check, credit or debit card

• Applying for a credit card or loan• Online or telephone shopping• Paying bills through the mail or online• Going to the doctor

What daily activities require an individual

to share personal information?

What daily activities require an individual

to share personal information?



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Thieves obtain personal information through a variety of methods: Stealing - Information is taken from a purse or wallet,

personnel records from a workplace, tax information, bank or credit card statements, or pre-approved credit card offers from the mail

Diverting Mail - Thieves can complete a change of address form and have the victim’s bills and statements mailed to a different location

“Dumpster Diving” - Personal information is discarded and thieves remove it from the trash

Skimming - Thieves attach a device to card processors to steal credit and debit card information



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Methods continued... Phishing - Thieves use a form of electronic

communication (usually email) to pretend to be a company or depository institution in order to get the victim to give up their personal information

Pretexting - Thieves use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources

Spyware - Software installed on the victim’s computer, without their knowledge or consent, that monitors internet use, sends pop up ads, re-directs the computer to other sites, and tracks key strokes

Hacking - Information is stolen by breaking into a computer system



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Apply for a new driver’s license Open new bank accounts Apply for credit cards or store credit accounts Obtain cash with bank cards Get a job Rent an apartment Take out student loans File for bankruptcy

What can identity thieves do if

they obtain personal information?



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Key Guidelines Protect your Social Security number

Only give it out to trusted organizations and only when absolutely necessary

Protect financial informationSign the back of credit and debit cards with

signature and “Please see ID” Close unwanted accounts by writing and by

phoneCut up credit, debit, and ATM cards and

dispose of the pieces in separate places



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Key Guidelines Safeguard your purse and wallet

Carry only what you'll actually need when you go out

Don't carry your Social Security number or card, birth certificates, or passport

Verify a source before sharing informationDon't give out personal information over the

phone, through the mail, or on the Internet unless you've initiated the contact



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Key Guidelines Be careful using the Internet

Only give out personal information when making a purchase and only on a secure site (indicated by a “https” or a picture of a lock after the URL or in the bottom right corner)

Use a credit card instead of a debit card when making online purchases

Watch for clues that might indicate a computer is infected with spyware Many pop-up ads, unexpected toolbars or icons, keys that

don't work, random error messages, and sluggish performance

If it is suspected that a computer is infected with spyware, immediately stop shopping, banking or doing any other online activity that involves sensitive information



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Key Guidelines Keep usernames and passwords safe and

select intricate passwords For passwords, choose a combination of letters,

numbers, and symbols that are not easily identified Use different usernames and passwords for different

sites and change them regularly Select security check questions with answers only

you would know Treat your trash and mail carefully

Shred all documents that you are discarding that contain personal information A cross-cut shredder is safest

Deposit mail containing personal information in secured mailboxes



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Key Guidelines Protect your identity

Search your name occasionally to see if your name, picture, or other information is being used by someone else

Keep all documents containing personal information in a safe place where others cannot easily access them

Check credit reportsCheck credit reports for errors at least once a year

with all three reporting agencies To stay constantly informed, request a credit report from

one of the three reporting agency every four months



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Experian

PO Box 2104Allen, TX 75013-2104

Report Order: 1-888-397-3742

Fraud Hotline: 1-888-397-3745

www.experian.com

Trans Union

PO Box 390Springfield, PA 19064-0390

Report Order: 1-800-888-4213

Fraud Hotline: 1-800-6807289

www.tuc.com

Equifax

PO Box 105873Atlanta, GA 30348

Report Order: 1-800-685-1111

Fraud Hotline: 1-800-525-6285

www.equifax.com

To order a credit report from any of the three reporting agencies,

use the following website: www.annualcreditreport.com



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New accounts or charges you didn’t make

Calls from collection agencies

Incorrect information on your credit report

Being denied credit when there is no reason to be

Missing bills or mailed statements

Early detection is key!Watch for the following signs



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Credit CardsTruth in Lending Act limits liability for

unauthorized charges to $50.00 per cardA letter must be received by the creditor within

60 days of the first bill containing the errorThe dispute must be resolved within 90 days of

the creditor receiving the letter



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ATM and Debit CardsThe Electronic Funds Transfer Act

provides protectionThe amount a person is liable for

depends upon how quickly the loss is reported Within two days: maximum $50.00 Within sixty days: maximum $500.00 After sixty days a person may be liable for

everything



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ChecksContact the financial institution and

stop paymentMost states hold the financial institution

responsible for losses of a forged check



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IDENTITY THEFT occurs when someone wrongfully acquires and uses a consumer’s personal identification, credit, or account informationOnce an identity thief obtains personal

information, they can complete many malicious acts with the information

There are many ways to DETER identity theft

Early DETECTION is key There are basic rules to follow in order to

DEFEND against identity theft if it does occur

Identity Theft Essentials

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