Preventing Identity Theft

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Preventing Identity Theft

• Michael Sullivan, USPS Postal Inspector

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Identity Crimes
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Postal Inspectors
Postal Inspectors protect the Postal Service, its
employees and its customers from criminal attack,
and protect the nations mail system from
criminal misuse.
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Identity Theft Identity Fraud

• Identity theft involves acquiring key pieces of
  your identifying information without the victims
  knowledge.
• Identity fraud occurs when thieves use the
  victims personal identifying information to
  order merchandise, obtain credit, or otherwise
  falsely represent themselves without the victims
  express consent.

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Identity Crimes Are Attractive

• Information is plentiful
• Credit is in abundance
• Absence of face-to-face contact with victims
• Ability to vanish into cyberspace
• Crooks are resourceful and patient

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Technology and Identity Theft
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Internet Usage And ID Theft
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Identity Theft and Methamphetamine Abuse

• Meth abuse is one of the countrys
  fastest-growing problems.
• When there is a meth problem in a community,
  theres an increased likelihood of higher rates
  for all crimes.
• Both identity theft and meth abuse is on the
  rise, but there is no statistical evidence to
  support a direct relationship.

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Your Identity at Greatest Risk
Source FTC 2003 Identity Theft Study
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How Identities are Stolen

• High Tech Methods
• Phishing
• Spyware and Key Logging
• Skimming
• Trojan Horses, Viruses and Worms
• Hacking
• Spamming

• Low Tech Methods
• Automobile dealers, retailers, restaurants
• Personnel Files
• Dumpster Diving
• Lost/Stolen Wallets and Checkbooks
• Healthcare Records
• Mail Theft

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Phishing

• High-tech scam using spam or pop-up messages from
  known businesses requesting account validation.
• Warnings of dire consequences if the victim fails
  to respond.
• Directs the victim to a Web site resembling a
  legitimate site where the operators trick the
  victim into divulging personal identifier
  information.

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Spyware and Key Logging

• Software that collects personal information from
  your computer without your knowledge.
• Downloaded to your computer from the websites you
  visit, or invites itself in unannounced when you
  agree to download another program.

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Skimming

• Occurs anywhere a credit card is accepted
• Rarely done at any location for more than 7 days
• A collusive employee completes a valid sale, then
  captures a second (unauthorized) swipe covertly
  before returning the card to the cardholder
• Fraudulent transactions frequently occur within
  24-48 hours of the compromise
• Cardholders are not aware that they have been
  victimized until they receive their credit card
  statements showing the fraudulent charges

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Skimming Devices
Can be made easily accessible inside clothing
Hand Held Skimmer/ Wedge
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Hacking

• Hackers accessed more than 5 million Visa and
  MasterCard credit card accounts in the US.
  February 2003
• Hackers accessed a U.S. military database
  containing Social Security numbers and other
  personal information for 33,000 Air Force
  officers and enlisted personnel. -August 2005

• Hackers compromised the confidentiality of 40
  million credit card holders, and 200,000 records
  had left the network at Card-Systems. June 2005
• T-Mobile notified 400 customers whose data was
  accessed, but left open the possibility of more
  victims as the case progresses. February 2005

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Most Common Low Tech Schemes

• Unknown caller posing as a bank employee trying
  to verify a SSN and mothers maiden name
• Fraudster requests a victims credit report
• Dishonest employee with access uses or sells
  personal information
• Fraudster changes the address on your account to
  their address through the financial institution
• Thief who steals your information during a
  burglary

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Keys to Your Identity

• Name
• Address
• Date of Birth
• Drivers License
• Social Security Number
• Mothers Maiden Name
• Account Numbers

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Using Social Security Numbers
Your employer, medical and financial
institutions, as well as other businesses may ask
for your Social Security Number. If someone asks,
be prepared to ask them

• Why do you need it?
• How will you use it?
• How do you protect it from being stolen?
• What will happen if I refuse to give it?

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Counterfeiting Tools

• Computer, monitor and keyboard
• Color ink jet or color laser printer
• Flatbed scanner
• Commercially available software (VersaCheck,
  Adobe Photoshop, etc)
• High quality paper and/or check stock

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Fraudulent Applications

• Personal information of a true person used to
  open a new account
• Common to add an additional fictitious person to
  the cardholders account
• Driven in part by the ease of obtaining instant
  credit vehicles, loans, department store
  accounts

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Account Takeover

• Personal and account information of a true person
  is compromised.
• Victims documents, statements and identifying
  cards are diverted by changing the address with
  custodian.
• Fraudster usually waits one month to order checks
  and/or credit cards.
• Upon receipt of the credit card, fraud charges
  occur quickly and usually end after a short time.
• Account kiting may follow.

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Merchant Fraud
The use of stolen identities to defraud merchants
of goods and services

• Purchases often made by internet, mail or phone
• Merchandise is shipped, often to a fraudulent
  occupant at an address controlled by thief
• May also involve reshipping schemes (work-at-home
  scams)

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Credit Card Fraud

• Test purchases with small charges before larger
  cash withdrawals
• Obtain large advances within a very short period
• Randomize banks using the same credit card
• Exhaust credit limit as quickly as possible
• Use bank or merchant insiders to avoid early
  detection

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Check Fraud

• Check washing
• Counterfeit checks

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False Change of Address (COA)

• False change of address orders are most often
  filed with the financial institutions and NOT
  through the Post Office.

• Why dont they go to the Post Office?
• Victim alerted by non-receipt of mail
• USPS Move Validation Services
• Address Verification Service

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USPS Move Validation Letter
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General Prevention

• Shred pre-approved credit applications, bills,
  other financial information before discarding.
• Empty your wallet of extra credit cards.
• Memorize or secure your passwords
  and SSN. Dont carry them around.
• Never leave receipts behind at ATMs,
  merchants, banks, or gasoline pumps.
• Check your credit report once a year
  for accuracy and fraud abuse.
• Dont use a date of birth as your password.
• Never give personal information to a stranger.
• Match receipts against financial statements.

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Online Prevention

• Dont reveal personal information inadvertently
• Dont reveal personal details to strangers
• Beware sites that offer some sort of reward or
  prize for your contact info
• Become familiar with home computer security,
  including software solutions

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Safeguarding Your Mail

• Deposit mail at your local Post Office, in a
  collection box, or hand it to your letter carrier
• Retrieve mail as soon as possible after delivery
• Place your mail on hold with the Post Office if
  you are planning a trip
• Report suspicious activity concerning mail to
  your local Postal Inspector

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Will You Know if You
are a Victim?

• Statements or credit cards arrive for accounts
  for which you havent applied
• Bills and other mail fail to arrive or are late
• Credit is denied, or you are offered less
  favorable credit terms, like a high interest
  rate, for no apparent reason
• Debt collectors contact you about merchandise or
  services you didnt buy

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Action Steps for Identity Theft
Victims

• File a report with your local police or the
  police in the community where the identity theft
  took place.
• File a report with the Federal Trade Commission.
  
• Report lost or stolen credit cards to the issuer
  immediately.
• Consider changing account numbers, passwords, and
  PIN numbers immediately.
• Advise the credit bureaus of your situation and
  consider placing a fraud alert on your account.
• Request a copy of your credit report.
• Alert your banks to flag your accounts and
  contact you to confirm any unusual activity.
• Maintain a record of names and phone numbers of
  the people with whom you discussed your case,
  and all supporting documents.

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Contacting the Credit Bureaus

• Equifax Credit Bureau, Fraud 800.525.6285
• Experian Information Solutions 888.397.3742
• Trans Union Credit Bureau, Fraud 800.680.7289

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Report Identity Theft Cases
The Federal Trade Commission Victims should be
encouraged to report their complaints to
(877) ID THEFT (877) 438-
4338 Or www.consumer.gov/idtheft
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Identity Theft Internet Resources

• United States Postal Inspection Service
• http//usps.com/postalinspectors
• Federal Trade Commissions ID Theft Center
• http//www.consumer.gov/idtheft
• Looks too Good to be True
• http//www.lookstoogoodtobetrue.com
• Consumer Privacy Guide
• http//www.consumerprivacyguide.org
• Identity Theft Prevention Survival
• http//www.identitytheft.org
• Privacy Rights Clearinghouse
• http//www.privacyrights.org/identity.htm

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Contact Information

• Michael W. Sullivan
• [phone]
• mwsullivan_at_uspis.gov
• P.O. Box 142148
• Austin, TX 78714-2148
• www.usps.com/postalinspectors