Identity Theft and You
Presented to Delta Kappa Gamma
February 4, 2006 – Beeville, Texas
By: Brian T. Burris
The Burris Law Firm
Is there a problem?
•
How many people are affected?
•
How big is the problem?
•
Who is affected? (Surely not me!)
How many people are affected?
•Good
news or bad news?
•The good news is…
•
that the number of identity thefts fell
from the year 2004 to 2005
•The bad news is…
•That the number of victims in the year
2004 was approximately 9.3 million!
•In 2005, the number “fell” to 8.9 million
How big is the problem?
•Identity
theft is a world-wide problem.
•In
the U.S. alone, the composite loss to
victims was $57 billion in the year 2005
•That
number is up from $54.4 billion in the
year 2004
How does that affect me?
•Who
is your most likely victim?
•People earning less than $35,000 per year
report the most instances of identity theft.
•The average fraud during the year 2005
was $6,383 per victim…
•Up from $5,885 in 2004
•The largest frauds, however, are typically…
How does that affect me?
•Committed
against those earning between
$75,000 and $100,000 per year
•The
average fraud committed against these
persons was $9,978 in the year 2005
How does that affect me?
•Question
– how much time does it take the
“average” victim to discover identity fraud?
•According
to the Federal Trade
Commission…
•12
months!
How does that affect me?
•Question
– once identity theft is discovered,
how much time should a victim expect to
invest to “recover” from the problem?
•According
to the Federal Trade
Commission…
•175
hours
How does that affect me?
Who steals identities?
Someone at your workplace…4%
A random person…8%
Someone at a company with access to personal
information…13%
A friend, neighbor or in-home employee…18%
A complete stranger outside the workplace…24%
A family member or relative…32%
How does that affect me?
•BOTTOM
•Unless
LINE!!!!!
you have…
•An extra $6,000 sitting around that you
have contemplated setting fire to,
•An extra 175 hours of free time to spend on
the phone with credit agencies, etc.,
•And don’t need credit in the near future,
•Take steps to PROTECT YOURSELF!
How to protect yourself.
How does a person discover that she is a victim?
---Get a phone call or letter telling you that you
have been approved or denied credit for accounts
that you didn’t request
---You cease to receive a credit card statement or
some of your mail doesn’t seem to come
---Your credit card statement includes charges for
things that you never bought
---A collection agency tells you that they are
collecting on an account that you never opened
How to protect yourself.
If you are aware of any unusual activity with
regard to any financial institution….
INVESTIGATE – IT COSTS YOU NOTHING!
I got an e-mail the other day…
VISA/Mastercard Scam
TRUE!
More examples….
“Phishing”
“Payment processing”–it’s a part time…scam
Nigerian “rich uncle” scam
Lottery scams
Free credit report scams
Free gift scams
Sign-In Rosters – Watch Them
More examples….
E-Mail Chains/Pyramid Schemes
“If you forward this letter to ten of your
friends, Bill Gates will pay you….”
NOTHING!!!!!!!!
More examples….
Employment Scams
In-Store Security Scam
Jury Duty Scam
IRS/Bank Scams
Ultra-Low Mortgage Brokers
Skimmers
How do I avoid identity theft?
What shouldn’t I do?
DO NOT:
Leave your social security card in a discoverable
place…that includes your purse
Print personal information on your checks (like
driver’s license, date of birth, SSN)
Leave receipts (ATM, credit card) behind
Let your credit card out of your sight
Accept offers from credit agencies that you haven’t
heard of (Experian, TransUnion, Equifax)
Keep PIN numbers in your wallet
How do I avoid identity theft?
DO NOT:
Put your important information on your
computer if it is (i) used by others, (ii)
connected to the internet, or (iii) not
password protected.
How do I avoid identity theft?
DO:
Keep a copy of your credit cards, other documents
that you keep in your purse (keep them in a
secure place…with your social security card)
Write “Photo ID Required” instead of signing cards
Shred or destroy records, statements, and credit
card offers that you receive
If necessary, protect your mail box. Either
incoming or outgoing can be a problem!
Know who you are dealing with when applying for
credit, a job, etc.
How do I avoid identity theft?
DO:
Place passwords on your bank/credit accts
Take your name off of the telemarketer’s hit
list – 1-800-382-1222 is the National Do Not
Call Registry toll-free number
Review your credit card statements carefully.
Make sure that you recognize vendors and
amounts that appear there.
Close old credit accounts (dept. stores)
How do I avoid identity theft?
General Tips:
BE DEFENSIVE WITH YOUR PERSONAL
INFORMATION! Ask salesperson if they
need information. If you are suspicious, use
alternative payment method (cash) or don’t
buy!
MONITOR YOUR CREDIT REPORT – 1-877322-8228 or www.annualcreditreport.com
What if I become a victim?
Immediately call the fraud departments of
all three credit bureaus:
Equifax: 1-800-525-6285
Experian: 1-888-EXPERIAN
TransUnion: 1-800-680-7289
What if I become a victim?
Place a “fraud alert” on your accounts. This
can help prevent an identity thief from
opening additional accounts.
Theoretically, each company is required to
contact the other two when a fraud alert is
entered, but you should contact all three,
just in case!
What if I become a victim?
If you become a victim, you are entitled to
free copies of your credit report – request
them!
Get fraudulent information removed.
What if I become a victim?
If you confirm victim status, request that an
“Extended Fraud Alert” be placed on your
account.
A Fraud Alert stays on your account for 90
days.
An Extended Alert is for 7 years.
Will mean delays in approval of credit, you
will have to produce positive ID to do so.
What if I become a victim?
If you spot a fraudulent credit account,
contact the creditor directly. Speak with
someone in the fraud department.
File a police report with (i) your local police
department or (ii) the community where the
fraud took place. Get a copy of the report.
What if I become a victim?
Keep EVERYTHING related to the fraud,
including your correspondence with
creditors, credit agencies, etc.
File a complaint with the FTC. While the
feds might not take any further action, they
do maintain a database that is utilized by
law enforcement agencies nationwide.
REMEMBER!
Would you give your purse to a stranger?
It is YOUR information. Protect it.
Keeping a strong “front line” defense against
identity theft goes a long way.
If you see something out of the ordinary
going on at your neighbor’s house, you
exercise caution. Do so when someone is
snooping around for YOUR information.
REMEMBER!
If you were suspicious that someone had
broken into your house, you would
investigate, right?
Do so if you are suspicious that your identity
has been stolen.
Follow up.
Follow up.
Follow up again.
REMEMBER!
If you discover that your identity has been
stolen, refer to your brochure as a starting
point.
If you need further guidance…
Just call my mom.
Contrary to her claims, she doesn’t know
everything, but….
She has my phone number!
REMEMBER!
Use your common sense!
Don’t become a victim.
Questions.
IDENTITY THEFT AND YOU
Brian T. Burris
The Burris Law Firm