Financial Services & Identity Fraud

Financial Services & Identity Fraud

Presented by Great-West In partnership with Colorado Jump$tart

January 26 - 28, 2012

CJ Juleff, Executive Director, Colorado Jump$tart Coalition

Hazel Heckers, Victim Advocate,Colorado Bureau of Investigation,ID Theft/Fraud Investigation Unit

1-Minute Check-in

1. Teaching responsibilities?

2. Share where you do your “banking” (bank, credit union, other?)

Session Topics

• The unbanked and the underbanked

• Types of financial service providers• Services offered by financial institutions• Features of traditional, online, and mobile banking

services• Costs and fees related to financial services• Banking trends

TO BANK OR NOT TO BANK

UNBANKED & UNDERBANKED

2009 FDIC National Survey of Unbanked and Underbanked Households

BANKING STATUS OF HOUSEHOLDS: COLO


HOUSEHOLDS BY RACE AND ETHNICITY


HOUSEHOLDS BY INCOME


HOUSEHOLDS BY EDUCATION


ALTERNATIVE FINANCIAL SERVICES


About 66 percent of unbanked households

use the following alternative financial

services (AFS):

non-bank money orders

non-bank check-cashing

pawn shops

payday loans

rent-to-own agreements

(RTOs),

refund anticipation

loans (RALs).

SO WHAT?

WHAT’S THE DIFFERENCE?Bank• Deposits insured up to

$250,000 by FDIC• For Profit• Business corporation owned

by private investors• Governed by a board of

directors chosen by the stockholders

Credit Union• Deposits insured up to

$250,000 by NCUA• Not for Profit• Financial cooperatives

owned by their members• Governed by a board of

directors elected by, and from among, those members

ACCESS MONEY YOUR WAY

Session Topics

• Identity theft and fraud statistics

• Financial impact of fraud on individuals and society

• How individual identify information is stolen and deceptively used

• Ways to protect against identify fraud

PRODUCTS AND SERVICES

FINANCIAL SUPERMARKETS

WHAT’S INSURED?

SavingsMutual FundsCertificates of

DepositAnnuities

StocksBondsCheckingInsurance

THE PLASTIC PUZZLE

DEBIT CREDIT ATM DEBIT CREDIT ATM DEBIT

Identity Theft/Fraud Investigations UnitHazel Heckers

Victim Advocate303-239-4649

[email protected] Hour ID Theft & Fraud Hotline

1-855-443-3489Toll free

English/Spanish

Colorado Bureau of Investigation

mailto:[email protected]

What is Identity Theft?

A Working Definition

Unlawfully obtaining, possessing, transferring, or using identifying information of another person without the other person’s consent. In doing so

subjects the victim to civil liability, criminal prosecution, collections, etc.

Scope of the Crime in Colorado

• Where does Colorado rank in the nation

• Are any Colorado cities at higher risk

• What age group is at highest risk

• How does ID Theft compare with other crimes in Colorado

One Mobile Meth Lab

456 Individual Victims of ID Theft

What’s in Your Wallet?

Are You At Risk? Do you have:

– Social Security Number– Drivers License or other ID– Health care benefits– Address– Professional License or Certification– Education– Clean Criminal History– Bank and/or credit accounts or loans– Business you own or manage– Computer with Internet access– Phone, cell phone, utilities– Hand held device that accesses Internet

Risk?

Do you or a family member:– Attend college or grad school– Facebook, Twitter, Blog or use other online social networks– “Friend” people you don’t actually know– Allow people you don’t know to “Friend” you– Post resumes on line– Use Craigslist or E-Bay– Have a credit card or passport with a radio frequency chip– Use on line dating services

Did You Answer “YES”

To Any of the Questions?

You Are At Risk For ID Theft!

Did you answer“No”

To ALL of the Questions?

You Might Be an ID Thief!

Types of Identity Theft• Financial• Medical• Social Security Number Theft

– Employment– Benefits

• Criminal Activity • Corporate/Business• Domestic Violence/Stalking Related

Financial

• Obtaining or using credit in victim’s name• Fraudulent checks or other banking activities• Credit/Debit Card Theft

What most people think of first when thinking of Identity Theft. Defined as any form of ID Theft that accesses a person’s financial resources or credit. Includes, but not limited to these most common forms of theft:

What’s New in Financial ID Theft?

• Skimmers

• Electronic Pick Pocketing

• Server Hacking

• Still Using Older methods such as hacking, theft, etc.

Skimmers

• May be attached to devices such as Pay at the Pump, ATM Machines, Red Box Video Rentals, Grocery Store Check Outs, etc.

• May be hand held devises

• May be attached to a cell phone or hand held electronics

Skimmer at Self Checkout

Pay at the Pump

Electronic Pick Pocketing

• Radio Frequency ID Technology

• Pay for your burger at record speeds (and maybe for years to come)

• Credit/Debit Cards, some states’ Drivers Licenses, Newer Passports

Server Hacking

Ridgeway, Northern Colorado, Western Slope

Hack into server at local Mom & Pop business that is used frequently (grocery store, gas station, etc.)

Multiple thefts from individuals who have card replaced and continue to use business

Medical Identity Theft

• The theft of a medical professional’s identity for nefarious purposes

• The theft of a person’s social security number, insurance information or other personal identifying information (PII) to obtain medical care or prescription medications

Medical Clinic

• ID Thieves steal credentials of MD’s and set up fraudulent Medical Marijuana Clinics that deal in cash only

• Victim doctors begin receiving calls from Health Department regarding MM prescriptions

Theft of an ID for Medical Treatment

• Social Security Number (SSN) or other PII– Child or other relative– Stranger– Co-worker– Some known suspects have used excess of 30 SSN’s to

seek medical care

Compromised Medical and Insurance Records

ID Thief uses victim’s SSN/PII to obtain medical care

Thief’s medical conditions, drug allergies, blood type, treatment become a part of the VICTIM’S medical record

May have life threatening ramifications when victim seeks emergency medical care

Medical ID Theft, cont.• Victim becomes responsible for payment for thief’s

medical care

• Victim becomes responsible for thief’s actions (drug seeking, giving birth, surgeries)

• Victim’s insurance company may deny victim treatment due to thief’s expenses

HIPAA• Due to privacy constraints of HIPAA laws, if a medical

professional believes that information in a patient’s medical records belongs to an ID Thief, the doctor may be compelled to withhold that information from the patient to respect the privacy of the thief

Social Security Number Theft

• Employment

• Benefits

SSN Theft For Work

ID thief uses victim’s SSN to gain employment

ID thief does not pay taxes on wages

Victim receives notice of wage garnishment or property lien for unpaid taxes

Victim is denied refund due to taxes owed by thief

SSN For Work, cont.

• Victim’s Disability, Medicaid or Unemployment benefits are denied or stopped due to wages being earned

• Possibly life threatening if there is no immediate intervention to reinstate benefits

SSN For Work, cont. Victim is denied employment as already working at job

not listed on application, often in another state

Victim is denied student loans or financial aid due to income

Victim is denied food stamps, LEAP, TANF or other income based benefits

Victim experiences complications in child support or related court proceedings due to extra income

SSN For Work Complications

Multi-jurisdictional cases

Dealing with Federal and State agencies

Laws regarding SSN often have “loop holes” if suspect does not know victim

Immigration concerns

Re-victimization

SSN Theft for Benefits

SSN is used by ID thief to apply for and collect benefits such as food stamps, housing, Veterans’ benefits, etc.

ID thief uses SSN to file tax returns and collects refund

ID thief owes child support, provides (or has mother of child provide) false SSN for collections and potential wage garnishment through Child Support Enforcement Division of Human Services

Criminal Activity, cont.

• ID thief uses victim’s ID during traffic stop

• Does not show up in court or pay ticket

• Warrants are issued

• License may be suspended

Criminal Activity, cont. Victim owes court fines or restitution

Victim is arrested

Victim’s license is suspended

Victim is denied employment or entrance into military due to criminal history

Victim is listed on Sex Offenders Registry

Victim is on “No Fly” or terrorist watch list

Corporate/Business Theft

ID thief goes to Secretary of State website and changes business listing – Registered agent– Addresses– Business name– Status

Thief uses business credit worthiness to obtain credit

Thief sells business

Business, cont.

Create false websites with phone and email contacts to appear legitimate

Pay to have priority standing in online searches

Divert business away from legitimate business owner

Destroy reputation and credit standing of small businesses struggling in bad economy

ID Theft Connected to Other Crimes

• Domestic Violence and Stalking cases often involve ID Theft

• As high as 16-20% of DV cases include some form of ID Theft

• 50% of foster children discover ID Theft when they become adults (financial and criminal most common)

Other Crimes, cont.

• Elder Abuse and ID Theft

• Any crime that involves the theft of anything containing PII could lead to ID Theft

• Scam artists want your money AND your ID

Top Scams

• Granny Scams• Loan Scams• FDA Scams• Name came up in investigation• Work At Home• Craigslist Scams• Phishing Scams (now includes Medicare benefits

check or free medical supplies)

How Can You Help

LISTEN to the victim’s story. You may be the first person that has heard the entire story

BLAME the perpetrator. Victims of ID Theft and Scams often blame themselves or have family and friends who blame them for “falling for it”. By placing the blame where it belongs, you may help the victim cope, recover and take steps to prevent re-victimization

How Can You Help

• HELP file a Police Report

• OFFER resources and emotional support (remember victims of ID Theft are victims and experience the same trauma response as victims of other crimes)

How Can You Help

• COORDINATE with services in your community or department that serve victims of DV, elder abuse or child abuse to provide information and assistance regarding ID Theft

• EDUCATE your community, department and victims about the risks of ID Theft and preventive measures to reduce risk

Victim Support

• CBI provides Victim Advocacy 24/7

• “Hand hold” victims as they negotiate the many agencies to restore good name

• Prepare victims for potential re-victimization

• Public Education

Helpful Resources CBI

– 24 hour Hotline 1-855-443-3489 (toll free/English/Spanish)– Victim Advocate: 303-239-4649– [email protected]

FBI– Internet Crimes Complaint Center– IC3.gov

Federal Trade Commission– FTC.gov– 1-877-ID-THEFT (1-877-438-4338)

Colorado Attorney General– Coloradoattorneygeneral.gov– 1-800-222-4444

Questions?

Contact

24 Hour ID Theft & Fraud Hotline1-855-443-3489

Toll Free English/Spanish

CBI Victim AdvocateHazel Heckers303-239-4649

[email protected]

Reflection• Reflect on what you have learned during this seminar about

financial services and identity fraud. Think about how you can integrate what you have learned into your classroom instruction. Be prepared to share your reflections in a wrap-up discussion.

Think about: – How can you help your students develop skills and knowledge to be

informed consumers when selecting financial services that match their money management styles and needs?

– How will you alert students to the risks of fraud and strategies to protect themselves (and their families) against those risks?

Application• Apply what you have learned in this seminar as you carry out

the following tasks.

– Think about the financial services you currently use and what you have learned about banking services. Select at least one additional service or modification of services that might better meet your banking needs.

– Determine several strategies you can employ to prevent identity theft from happening to you ,and/or list steps to take if you have recently been a victim of identity theft.

– Set a deadline to carry out the strategies.

Financial Services & Identity Fraud

Documents

Transcript of Financial Services & Identity Fraud