Fraud and Identity Theft. Megan Stearns, Credit Counselor

Fraud and Identity Theft

Agenda

• Fraud and identity theft statistics • Fraud

• Identity theft

• Identity theft prevention

• Protecting your Social Security Number • Online prevention

Indiana Fraud and Identity Theft

Statistics

• In 2013, Indiana ranked 35th _{in the U.S. for}

U.S. Fraud and Identity Theft Statistics

• In 2013, Florida ranked 1st _{in the U.S. for both}

fraud and identity theft complaints.

Types of Fraud Scams

Skimming

• Thief swipes your debit or credit card through a hand-held device

• Thief installs an overlay device on an ATM

– These devices glean information off the magnetic strip on the back of the card

• Name, account number, expiration date, and security features

Skimming

Email Phishing

• Email messages are sent that try to trick you into clicking on a link to reveal your financial and personal information

– Sense of urgency

– State account will be closed or restricted if you do not take action

• Purdue Federal CU or any legitimate

Email Phishing

• What to do:

– Do not reply

– Do not click on links

– Do not open attachments

– Do not provide personal or financial information via email

– Use anti-virus software and firewall protection

– Contact the Federal Trade Commission (FTC) if you have been scammed

Phone Phishing

• Technology is used to create a legitimate

sounding copy of a financial institution’s message • Number will show up on your caller ID as the

financial institution

• Message will state your card has been compromised

• You will be prompted to verify the card number and PIN to re-activate

Data Breach

• When information has been subject to unauthorized access

– The information is usually lost, stolen, or hacked into

• Merchant processors • Lost tapes

Types of Check Scams

• Internet sales • Lottery scams

Internet Sale Scam

• Buyer sends you a larger check than expected • You are instructed to wire excess funds

through Western Union or Money Gram • Original check is counterfeit and returned

Lottery Scams

• Receive an email or piece of mail notifying you that you’ve won the lottery

• Cashiers check, commercial check or U.S. Treasury check is received

• Check is larger than expected or you owe taxes • Instructed to wire out the difference

• Original check is returned as counterfeit

Email and Fax Solicitations

• Commonly known as Nigerian scams

• Your help is requested to move funds from fraudster’s country to the United States

• Need your account number to hold the money • Money is withdrawn from your account

Secret Shopper Scams

• Receive a letter and a check

– Instructed to cash the check and make several detailed purchases over the next few days

– Usually one or two of the purchases involves wiring funds out via Western Union or Money Gram

• Check returned as counterfeit

Helpful Tips

• Do not accept checks over the purchase price • Do not wire out any excess funds

• Verify contact information provided for checks received

• Do not respond to emails asking for personal or financial information

What is identity theft?

• Occurs when someone assumes your identity by using:

– Your date of birth

– Social Security Number – Photo identification

What is identity theft?

• Impact on victims

– Damaged credit record – Loss of job opportunities

What is identity theft?

• Impact on consumers

– Cost of fraud reduces profit margins for companies

How do fraudsters obtain your

information?

• Stealing your wallet/ purse

• Stealing your statements from your mailbox • Diverting your mail to a new address

• Digging through the trash • Phishing scams

• Compromised debit or credit cards from a data breach

How do fraudsters use your personal

information?

• Open new accounts in your name and go shopping

– Accounts then reported as delinquent on your credit report

• Call your creditors and change your billing address

• Take out loans, buy cars, get utility services in your name

• Authorize electronic transfers to drain your account

ID Theft Prevention

• Do not give out your personal information • Store all personal information in a safe place • Safeguard wallets, purses, checkbooks, and

account statements – at home and at work • Protect your PINs and other passwords

• Guard against shoulder surfers • Carry only a minimum amount of

ID Theft Prevention

• Review statements and account activity on a regular basis

• Pay attention to billing cycles

• Sign up for fraud alert services provided by your financial institutions

• Sign up for e-statements, direct deposit, and online bill pay

ID Theft Prevention

• Opt out of preapproved credit offers by calling 888. 5 OPT OUT or online at

www.optoutprescreen.com

• Mail bills from a locked mailbox or Post Office • Stop mail if you’re out of town

ID Theft Prevention

• Review your credit report

– Make sure you recognize all the accounts – Make sure you recognize all addresses – Review your report at least annually

– You are entitled to one free credit report a year from each of the three credit bureaus

ID Theft Prevention

• Review your credit report

– www.annualcreditreport.com

– 877.322.8228

– Annual Credit Report Request Service P.O. Box 105281

Protect Your Social Security Number

• Ask “Why do you need it?”

• Don’t carry Social Security card in your wallet, unless you need it that day

• Don’t use last 4 digits of SSN as a PIN

– Memorize PINs

• Don’t let clerks write SSN on checks as ID • Don’t have SSN preprinted on checks

Protect Your Social Security Number

Must give SSN

• Credit unions/ banks • Employers

• Income tax records • Loan applications

• Credit bureau reports • College records

May want to refuse

• Over the phone

• On personal checks • On club membership • As ID for purchases

Online Prevention

• Don’t click on links within email messages from unknown sources

• Look for https:// in the URL

• Use up-to-date antivirus and firewall software • Avoid emailing personal and financial

information

Online Prevention

• Shopping

– Shop only with companies you know

– Pay only with a credit card or third-party intermediary

– Consider having a credit card designated for online only purchases

– Watch for URL to change from http:// or https:// – Use a secure browser

What to do if you are a victim

• Contact the Federal Trade Commission (FTC) Identity Theft Hotline

– 877.ID.Theft (877.438.4338) – www.consumer.gov/idtheft

• The FTC will put your information into a

What to do if you are a victim

• Contact your financial institutions and creditors

• Follow each conversation with a certified letter, return receipt requested

– Keep copies

• Close your accounts if possible

What to do if you are a victim

• File a police report

• Keep a copy of the report and case number for your records

• Contact the fraud departments of all three credit bureaus

What to do if you are a victim

• Credit bureau contact information

Megan Stearns

Email: [email protected] Phone: 765.497.7455