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Someone steals your personal information to commit fraud.

A “buy now, pay never” shopping experience.

What is Identity Theft?

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How big is the problem?

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Credit Card

Phone/Utilities

Bank Employ-ment

Gov. Docs/Benefits

LoanFraud

OtherID Theft

AttemptedID Theft

How victims information was misused.

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How does Identity Theft happen?

• Mail theft• “Dumpster diving”• “Insider access”• Purse / wallet theft• Computerized information services• Internet• etc

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Contributing factor

NEGLECT

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NEGLECT !Retailers may not carefully check signatures on the identification provided for check and credit card transactions.

Salesmen may fail to check validity of the drivers license when credit is applied for.

Consumers fail to check bank statements andcreditor statements promptly.

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How can you tell if you are a victim of Identity Theft?

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Have you failed to receivebills or other mail?

Were you denied credit for no apparent reason?

Have you received calls from debt collectors or companies about merchandise or services you did not buy?

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Have you received credit cards you did not apply for?

Have you looked carefully at your bank and credit card statements and discovered postings you do not remember?

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• Credit card payments

• Pre-approved credit card offers

• Convenience checks

• Mail to you from your bank and creditors

Mail Theft

Items stolen from your mail box can be used to steal your identity.

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• Mail bills & sensitive items in a BLUE BOX or at the post office.

• Remove items from your mail boxas soon after delivery as possible.

• Install a locked mailbox at your residence or use a P.O. box.

To Prevent Mail Theft

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• Block change of address.

• Pick up check orders at your bank.

• Contact creditors if your bills don’t arrive.

To Prevent Mail Theft

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Dumpster Diving

• A business may discard paper containing customer information without shredding.

• The scavenged information can be used to apply for credit and open accounts in your name.

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Insider Access

Employees who sell copies of checks used for purchases,credit card numbers from receipts or

data from employment or credit applications,

order forms or information

collected for legitimate reasons.

The ‘sold information’ can be used to apply for credit and open accounts in your name.

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Protect Yourself...

DO NOT ROUTINELY CARRY……your Social Security Cardyour birth certificate oryour passportor more than one or two credit

cards.

Limit what you carry in your Purse or Wallet.

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Credit Card Protection

• Cancel all unused credit card accounts

• Shred credit card receipts

• Watch the mail when you expect a new or renewed card to arrive.

• Don’t give credit card numbers over the phone unless you initiated the call to a trusted business.

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• Keep a list of:

– credit card account #s

– expiration dates

– telephone numbers for customer service& fraud departments.

Identity Theft Recovery…

Consider keeping a copy - back and front - of the card.

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The Skimming Wedge

Used to capture data off the back of the card.

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Capturing data from the magnetic stripe on the back of the card.

Replication of the data to enable a transaction authorization to occur without the original card.

• The card remains in TRUE cardholder's possession• The card’s Magnetic Stripe Data is cloned.

Skimming is...

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65% Restaurants

15% Gas Stations

20% Other Merchants (hotels,convenience stores, retail merchants, parking garages)

Where skimming occurs

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Computerized Information Services

A business that sells personal information may fail to safeguard it adequately or may sell it to purchasers who have not been properly screened.

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The Internet

Personal information used on the internet

may be accessed by a thief.

Have you heard the phish tale?

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Phishing or Brand Spoofing

Consumers are receiving unsolicited emails asking the for updates to their billing information or to activate a new credit card, online.

Confidential personal information is collected by the “fraudster” and used to open new credit accounts or makepurchases in the name of the consumer.

The phony emails and fake company websites are cleverly designed and virtually impossible to distinguish from the real thing.

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Phishing Protection

•DO NOT STOP using your ATM, POS or Credit Cards.

•Review all statements - AS SOON AS THEY ARRIVE!

•Order your credit report each year from all 3 credit bureaus

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• Be passionate about protecting its use.

• Insist businesses use a different number.

• Ask why they need it

• Order your Social Security Earnings & Benefits Statement once a year to check for fraud.

Protect your Social Security Number

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If your Social Security Number appears on bank statements or health care provider cards

SUGGEST that it be removed!

If your Social Security Number is EVER used as your account number, ASK WHY?

Be aware of the DANGER

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Identity Theft prevention...

•Put passwords on all your financial accountsbefore the thief does. Test them!

•Never use expected passwords. Avoid using your mother’s maiden name.

•Keep excellent records

•Cooperate if asked to open a new account.

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Identity Theft detection...

•Review all statements -

bank, credit card and utility bills

AS SOON AS THEY ARRIVE!

•Order your credit report each year from all 3 credit bureaus

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Identity Theft recovery...

•Do not pay any bill or portion of a bill which is a result of identity theft.

•Keep copies of all letters and documents.

•Call police – you will need the police report

•Place a Fraud Alert with credit bureaus

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Solution #1

Establish yourself as a

Deterrence is prevention.

‘hard target’

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Solution #2

Share protection techniques

~~~with everyone.

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Thank you for inviting us!

Prepared and distributed by

The Minnesota Bankers Association