Richard Swed
CEO- The Risk Management Group
Richard is a recognized expert in the field of identity theft, with 14 years of experience, and speaks to groups of all sizes on identity theft & identity theft protection for all types of businesses.
Graduate of Univ. of Denver, Daniels School of Business, Denver, Colorado Bachelor of Science in Business Administration
He works with businesses to help protect them, their employees & customers against identity theft. Businesses have liabilities with the personal data they hold, & must comply with federal and state laws regarding identity theft (FACTA/The Red Flag Rules/Data Breach Notification).
He works with businesses to help them take the reasonable steps to lower their risk of a major identity theft incident that can destroy their business.
Tidewater Chapter
Virginia Society of CPAs
Presentation-
Identity Theft-Risks & Liabilities Affecting Your Clients
Richard Swed
IDENTITY THEFT
Identity Theft is spiraling out of control!
Over 217 million American’s Identities have been reported lost or stolen since Feb 2005. – PrivacyRights.org
Almost any company you walk into has at least one computer with Personally Identifiable Information (PII) on it.
Over 400,000 Dead People opened Bank accounts last year. –
AARP
The revenue from trafficking financial data has surpassed that of drug trafficking.
Driver’s License Identity Theft
♦
You could receive DWI, DUI, and other
driving-related charges
♦
Your driving privileges could be suspended or
revoked
♦
You could be arrested during a routine traffic
stop for crimes you did not commit
♦
Instant Credit in your name
What is Identity Theft?
Thieves use your information to acquire a drivers license
or claim to be you during a traffic stop etc…
Social Security (SSN) Identity Theft
♦
Thieves take the income, but don’t pay the
taxes, leaving you with the bill
♦
Wanted criminals use your SSN Identity so
they can get employment without being
found
♦
Illegal immigrants use your SSN Identity to
gain employment.
♦
Thieves and Criminals use your SSN for
employment, medical, financial, criminal,
school, and other purposes.
Social Security Identity Theft
What is Identity Theft?
A Chicago woman “applied for a job at a local Target department store and was denied. The reason? She already worked there – or rather, her Social Security number already worked there. Follow-up investigation revealed the same Social Security Number … was used to obtain work at 37 other employers. (MSNBC)
You may need access to an attorney to resolve these related issues. 10,000,000 Social Security Numbers are
Medical Identity Theft
Insurance Benefits,
R
x, Medicare, Medicaid, Medical tests
What is Identity Theft?
Medical Identity Theft occurs when criminals
obtain your health insurance identification or social security number to get health care. That means
your medical history and health care can include someone else’s information. This form of Identity Theft can be life threatening.
You may need access to an attorney to resolve these related issues. There are over 47,000,000 people in the U.S.
without Health Insurance
Stolen Health Insurance Card are being sold on
Character/Criminal Identity Theft
Driver’s License, Social Security Number, Date of Birth, etc.
What is Identity Theft?
Criminal Identity Theft occurs when an imposter gives another person’s name and personal
information such as a driver’s license, date of birth or social security number to a law enforcement
officer during an investigation or upon arrest. Or the imposter may present to law enforcement a counterfeit license containing another person’s data.
You may need access to an attorney to resolve these related issues. You Could be Arrested for Crimes You didn’t Commit !
Character / Criminal Identity Theft
Financial Identity Theft
Credit Cards, Bank/Auto Loans, Mortgages, Lease etc.
What is Identity Theft?
Victims of Financial Identity Theft are
people who have had bank accounts wiped
out, credit histories ruined and jobs and
valuable possessions taken away. In some
cases they have been arrested for crimes
they didn’t commit.
You may need access to an attorney to resolve these related issues. You could even be Responsible for Debts You didn’t create!
57% of victims had NEW ACCOUNTS
opened in their name
62% had warrants issued for their arrest 82% found out through an adverse action Cost to the average victim $1,865.27
Average victim spent 157.87 hours to clean
up the mess..70% stated up to 12 months!
Inability to clear Negative Records:
63% could not get their credit reports cleared
22% have their SSN tied to someone else’s 19% had their fraud alerts ignored
*ITRC - The Aftermath
More than 49% of the respondents reported
stressed family life
The strongest feelings expressed were:
Rage or anger, betrayal, unprotected by police,
personal financial fears, sense of powerlessness, sense they were grieving, annoyed, frustrated, exhausted, sleep disturbances, an inability to trust people, and the desire to give up and stop fighting the system.
ITRC long term emotional responses included:
8% felt suicidal
19% feeling captive 29% ready to give up
10% felt that they have lost everything *ITRC - The Aftermath
Lost, Hacked, or Stolen…
Notables
Boeing: 382,000 (Employees)
CitiFinancial: 3.9 Million
MasterCard: 40 Million
AOL: 92 Million
Veterans Admin: 26.5 Million
TJ MAXX: 94 Million
Starbucks: 60,000 (Employees)
Aetna/Nationwide: 200,279
TCLEOSE: 230,000 ( TX. Law Enforcement)
Once the credit systems accept bad data it can be next to impossible to
clear.
USAToday June 5, 2007
Medical identity theft can impair your health and finances… and detecting this isn’t easy… and
remedying the damages can be difficult.
WSJ Oct 11, 2007
Because it is so overwhelming to correct the victims’
records it is imperative for businesses to protect the data.
Where the law becomes
logical
Fair and Accurate Credit
Transactions Act (FACTA)
Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
Applies To Every Business And Individual Who Maintains, Or Otherwise Possesses, Consumer Information For A Business Purpose.
Employee or Customer information lost under the wrong set of circumstances may cost your company:
Federal and State Fines of $2500 per occurrence
Civil Liability of $1000 per occurrence
Class action Lawsuits with no statutory limitation
Responsible for actual losses of Individual ($92,893 Avg.)
Applies to any Organization Including :
Financial Institutions* School Districts
Credit Card Firms
Insurance Companies Lenders Brokers Car Dealers Accountants Financial Planners
Real Estate Agents
*The FTC categorizes an impressive list of businesses as FI and these so-called
“non-bank” businesses comprise a huge array of firms that may be unaware they are subject to GLB.
Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
FACTA-Red Flag Rule & Gramm,
Leach, Bliley Safeguard Rules
Require businesses to:
Appoint in writing an Information Security Officer.
Develop a written ID Theft protection plan & policy to protect Non-Public Information for employees and customers.
Hold mandatory training for employees who have access to Non-Public Information.
Oversee Service Provider arrangements
