ID Theft Statistics and Steps to Minimize Your Exposur

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ID Theft Statistics and Steps to Minimize Your
Exposure

• Joni Lovingood
• Senior Risk Management Specialist

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Number of Victims and Annual Losses
Source 2006 2005 Javelin Strategy Research
and Better Business Bureau
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Identity Theft Involving Minors (Under Age 18)
Source 2005 2006 Javelin Strategy Research
and Better Business Bureau
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Identity Theft Losses by Type
Source 2005 Javelin Strategy Research
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Recent Identity Theft Statistics

• Over 36 million new victims in past 5 years
• At current rate, approximately 20 of US adult
  population with credit standing will be victims
  by 2007
• Lost/stolen wallets/checkbooks/credit cards are
  primary source of compromised data (30)
• 47 of all ID theft is perpetrated by friends,
  neighbors, in-home employees, family members and
  relatives

Source 2005 Javelin Strategy Research and
Better Business Bureau Source 2005 2006
Javelin Strategy Research and Better Business
Bureau
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Recent Identity Theft Statistics

• 65 age group has smallest rate of identity theft
  (2.3 )
• 25-34 age group has the highest rate of identity
  theft (5.4)
• 35-44 age group has highest average fraud amount
  (9,435)

Source 2005 2006 Javelin Strategy
Research and Better Business Bureau
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What is ID Theft ?

• Identity theft is a crime in which an imposter
  obtains key pieces of personal information, such
  as Social Security or driver's license numbers,
  in order to impersonate someone else.
• The information can be used to obtain credit,
  merchandise, and services in the name of the
  victim, or to provide the thief with false
  credentials.

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Two Categories

• True Name
• Uses personal information to obtain new accounts
• Cell phones
• Credit cards
• Blank checks
• Account Takeover
• Use personal information to gain access to a
  persons existing account
• Will change address and run up large bills before
  the person realizes there is a problem

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How Information Is Obtained

• Theft of purse/wallet
• Mail theft
• Dumpster diving
• Shoulder surfing
• Workplace information
• Pretext calling
• Skimming
• External hacker breaches

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How Identity Theft Happens

• Referred to as Friendly Fraud
• Done by a trusted party
• Family members
• Roommates
• Housekeepers
• Party guests
• Friends of your children or family
• Repairmen
• Co-Workers

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Telephone Scams

• Do-not-call list scams
• Asking to confirm
• Addresses
• Date of birth
• Social Security Numbers
• Neural Network Scams
• Person purports to be from Visa/MC
• Security and fraud division
• Asks if you made a specific purchase
• Promises to make adjustment to your card
• Needs card information

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Phishing

• E-mail Scams
• Appear to be a legitimate message from a
  financial institution, a retailer or a credit
  card company
• Trick users into divulging personal and financial
  information
• Messages can appear remarkably official

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Phishing
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Educate Your Membership on Phishing

• Post phishing warnings on your website,
  newsletters and lobby bulletin board
• Post a warning on your credit union's website
  that you will never solicit personal/private
  information via e-mail
• Never click on the link provided in an e-mail you
  believe is fraudulent
• Do not open an attachment to an unsolicited
  e-mail unless you have verified the source

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Educate Your Membership on Phishing

• Do not be intimidated by an e-mail or caller who
  suggest dire consequences if you do not
  immediately provide or verify information
• If you believe the contact is legitimate, go to
  the companys website by typing in the site
  address directly or using a page you
  have previously book marked, instead of a link
  provided in the e-mail
• Use the  FTC (Federal Trade Commission) website,
  www.onguardonline.gov.  Consumers can take
  interactive quizzes designed to enlighten them
  about identity theft, phishing, spam and
  online-shopping scams--elsewhere on the site,
  consumers can find detailed guidance on how to
  monitor their credit histories, use effective
  passwords and recover from identity theft

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Pharming

• Uses software to redirect users to fraudulent
  websites
• Intercepts personal information
• Attacks through the users favorites section of
  their browser
• Scam enters computer via e-mail
• Asks user to install software
• Takes user to a look alike site

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Prevent Pharming

• Dont open e-mails from an unfamiliar address
• Dont open attachments unless you know who they
  are from
• Dont follow a link in an unfamiliar e-mail
• Keep anti-virus and anti-spyware software up to
  date
• Maintain an up to date operating system

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Pretexting

• The practice of obtaining personal information
  under false pretenses
• Surveys
• Get basic information and then call financial
  institution to request additional information
• Social security number
• Routing and transit number
• Debit card number and PIN

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Plastic Card Considerations

• Implement Card Security
• Card Activation
• CVV/CVC
• Expiration date mismatch
• Name Matching
• AVS
• CVV2/CVC2
• Verified by Visa - MasterCards Secure Code
• Neural Networks (24X7365 days)
• Educate your members about the security you have
  in place

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Address Change Procedures

• Before making an address change, send a
  confirmation to both the old and new addresses
• If an address change is shortly followed by a
  request for a new plastic card, PIN, or checks,
  confirm the address change with the member
• The recent Fair and Accurate Credit Transactions
  (FACT) Act requires new procedures for this

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Telephone Procedures

• Written procedures to limit circumstances in
  which member information can be disclosed by
  telephone
• Use an authorization code/password
• Use Caller ID
• Use a call back procedure to the phone number on
  record
• Ensure phone number has been on file for at least
  30 days

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Workplace Considerations

• Know who you are hiring
• Background Checks
• Bondability Checks
• Run credit reports
• Develop written privacy protection policy
• Include responsible information handling
  practices
• Display your cus policy in your literature and
• on your website
• Train staff on cus security measures and
• privacy protection policies

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How to Protect Against Identity Theft

• Do not routinely carry your social security card,
  birth certificate, passport or more than two
  credit cards
• Always take credit card, debit card and ATM
  receipts with you
• Do not leave bill payment envelopes at your
  mailbox for the postal carrier to pick up

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How to Protect Against Identity Theft

• Never give out your credit card, bank account or
  social security number over the telephone unless
  you initiated the call and you are familiar with
  the caller
• Do not print your social security number on your
  checks
• If a business requests to use your social
  security number, ask to use an alternate number

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How to Protect Against Identity Theft

• If you do not receive your credit card statement
  on time, call the post office to see if a recent
  change of address request has been filed
• If you shop on the Internet, use a secure browser
  for your purchase transactions

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Do Not Call Registry

• No longer just home phones
• Can now register mobile numbers
• Will remain in effect for five years
• Unless you remove your number or the phone is
  disconnected
• Will reduce most calls from telemarketers
• If you have established a relationship with a
  company, they may still contact you until request
  contact cease.
• If contact continues, it is your responsibility
  to file a complaint

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How to Protect Against Identity Theft

• Make a list of your credit cards and bank
  statements in case your cards are lost or stolen
• Do not use all or part of your social security
  number in creating passwords or PINs
• Memorize all passwords or PINs

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How to Protect Against Identity Theft

• Shield the keypad when using the ATM machine
• Install a lock on your mailbox or use a post
  office box for incoming mail
• Pick up new check orders at your financial
  institution instead of having them mailed to your
  home

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How to Protect Against Identity Theft

• Shred unused pre-approved credit card
  solicitations and convenience checks
• Eliminate pre-approvals 888-567-8688 (Opt Out
  Line)
• Immediately review your credit card statements,
  utility bills, telephone bills for unauthorized
  use
• Contact the provider if necessary if you suspect
  unauthorized use
• Order your credit reports annually and review for
  accuracy and fraud

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How to Protect Against Identity Theft

• To Get a Free Credit Report
• Log on to www.AnnualCreditReport.com (a new web
  site created jointly by the credit reporting
  companies
• Or, call (877) FTC-HELP
• Or, mail a standardized form to Box 105281,
  Atlanta, GA 30348-5281
• Consumers are allowed one free report
• per year from each of the agencies

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Helping Members Prevent ID Theft

• Member education is key
• Free resources from FTC
• NCUA sample statement brochure How to Avoid
  Becoming a Victim of Identity Theft
• Consider member training and/or assistance
• Consider extending shredding service to members
• Credit union staff should know where to refer
  members if they are having a problem

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What to Do If You Are a Victim?

• Report to police immediately--ask the police to
  issue a police report
• Notify the fraud units of the three major credit
  reporting agencies. (Note The FACT Act only
  requires contacting one agency who will report to
  the other two)
• Request that a fraud alert be placed in your file
• Request that a victims statement be added to
  your file

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What to Do If You Are a Victim?

• Request a copy of your credit reports --check
  each credit report carefully
• Request each credit reporting agency to remove
  all erroneous information
• Ask each credit reporting agency to send you a
  copy of the corrected credit report
• Call each affected credit card issuer to close
  and reissue all affected accounts

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What to Do If You Are a Victim?

• Ask each credit card issuer about the status of
  your account
• Instruct the issuer not to honor any requests for
  information changes
• Close and reissue any affected checking and
  savings accounts
• Ask the financial institution to attach a unique
  identifier to your accounts

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What to Do If You Are a Victim?

• Get a new ATM card and PIN
• Contact the Department of Motor Vehicles if you
  suspect someone is using your drivers license
  number
• Contact the Social Security Administration if
  your social security number has become associated
  with bad checks and credit
• Call 800-772-1213 to check your Social Security
  Statement

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What to Do If You Are a Victim?

• Notify the Postal Inspector if you suspect your
  mail has been stolen or a fraudulent change of
  address has been filed in your name
• Notify the passport office that the perpetrator
  may apply for a new passport in your name

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Thank YouJoni LovingoodSenior Risk Management
Specialistjoni.lovingood_at_cunamutual.comVoice
mail [phone] x9316Cell phone [phone]