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• Presented by Joe Nollet• Certified Identity Theft Risk Management

Specialist• Independent Associate, Pre-Paid Legal

Services, Inc.,and Identity Theft Shield

Question…

What is the Nation’s

Fastest Growing Crime?

Identity Theft is not just about Credit Cards!ID Theft is an international crime and access to an attorney may be critical

What is Identity Theft?

• Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. Identity Theft includes:

Drivers License Identity Theft

MedicalIdentity Theft

Financial Identity Theft

Identity Theft is not just about Credit Cards!ID Theft is an international crime and access to an attorney may be critical

Social Security Identity Theft

Character / Criminal Identity Theft

Five Common Types of Identity Theft


Driver’s License Identity Theft

Thieves use your information to acquire a driver’s license in your name or claim to be you during a traffic stop

♦ 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



AARP Bulletin, February 2004

“An 82-year-old grandmother, quit driving during the Truman administration.” In 2001 she “suddenly found herself in what she describes as a ‘living hell’ after one of her neighbors, arrested on drunk-driving charges … pretended to be her. ‘I was told there were warrants for my arrest … I was afraid to answer the phone’.”

Social Security (SSN) Identity Theft

Thieves use your SSN Identity to gain employment or to report income under your name


Your SIN in Canada

♦ 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.


MSNBC, January 29, 2005

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 … used to obtain work at 37 other employers.”

“People need to wake up to this problem. They are destroying people’s credit, Social Security benefits, and everything else.”

Medical Identity Theft


Medical Identity Theft

Thieves use your information for insurance benefits, Rx, Medicare, Medicaid benefits, or for medical tests


♦ Your rates could go up or your coverage could be cancelled or used up

♦ You could owe thousands of dollars for a procedure you never had

♦ You could be unable to obtain medical or life insurance, other coverage, and/or employment because of conditions that you do not have (AIDS, Diabetes etc…)


♦ You could be arrested

♦ You could be denied employment because of fraudulent criminal records found during routine background checks

♦ Security checkpoints at airports could become a nightmare for you

♦ You could be denied a passport and be barred from leaving the country

Thieves mask their criminal activity behind your identity



Thieves mask their criminal activity behind your identity


after the September 11th terrorist attacks, it was determined that the attacks were funded in large part through fraudulently obtained credit cards, and nine of the terrorist operatives reportedly entered the United States using falsified visas and stolen or fraudulent identities.



A woman who identified herself as Alianiss Nunez Morales, 23, of Minnesota failed to stop at a stop sign before hitting a bus carrying 28 students from Lakeview School

Four students were killed

"THE ONLY NAME WE HAVE FOR HER IS THE NAME SHE GAVE US WHEN SHE WAS BOOKED," Officer Arnold said.

-Minnesota Herald, February 22, 2008-


♦ Thieves rob your accounts

♦ They rack up outrageous charges on credit cards, take out new loans, and more

♦ They destroy your credit, forcing you to pay higher rates

♦ You could be held responsible for the debts incurred by the thieves in your name

Thieves use your information to open new accounts or to gain access to existing accounts




What if they took…

…a name out of a phone book in Iowa … a Driver’s License number out of a DMV data base

… and YOUR Social Security number

and CREATED a new person?

-



It’s called

SYNTHETIC or MOZAIC IDENTITY THEFT

and it is becoming a nightmare!

-

“Thieves are so bold that they

held a conference in Kiev, Ukraine, for people

interested in breaking into this Growth Industry”

How do they get your information?

- USA Today


Phishing Facts

886 – The average dollar loss per Phishing Victim (Gartner, Dec 17, 2007) 3.6 Billion – The total dollar loss of all phishing victims over a 1 year period (Gartner, Dec 17, 2007) 3.2 Million – The number of people who fell victims to phishing scams over that same 1 year period (Gartner, Dec 17, 2007) 8.5 Billion – The estimated number of phishing e-mails sent world-wide each month (SonicWALL, 2008) 32,414 – The number of phishing web sites that were operational in May 2008 (Anti-Phishing Working Group)

New attack is now called Spear Phishing!

“Residents with mailboxes should pick up

their mail as soon as it has been delivered.”-Officer Kingman, SLT Police Department

Tahoe Daily Tribune, February 21, 2008 Photo by Jim Grant

Mail Theft


The DataBased You

Meet The DataBased You

™

™


Your Name1000’s of aggregators

Your Fingerprints and DNAFBI, State, and Local DBS

Your Insurance ClaimsC.L.U.E. DBS, etc...

Your Military RecordDOD DBS

Your Criminal HistoryNCIC DBS

Your Real Estate DeedsClerks of Court DBS

Your Legal HistoryState and Federal Court DBS

Your Credit HistoryCredit Repositories’ DBS

Your Birth CertificateChoice Point DBS, State, etc …Your Phone Number and Tracking Info

1000’s of aggregators

Your Social Security NumberSSA DBS

Your Address1000’s of DBS

The DataBased You™

Your Driver’s License # and Record – DMV DBS

Your Medical RecordsMIB DBS, etc …

Your Car Registration & InfoDMV, Local Treasurer, On Star, etc … DBS

Are you in their data base?

• United Blood Services

• The Veterans Administration

• Choice Point

• AOL

• DSW Shoe Warehouse

• Lexis Nexis

• IRS

What is Identity Theft?The Cost of Identity Theft

37% of victims reported experiencing problems

other than out-of-pocket expenses or loss of time

-FTC 2006 IDT Survey Report

The Cost of Identity Theft


Problems include:-Harassment by collection agents

-Having utilities shut off

-Being subjected to criminal Investigation or civil suit

-Emotional problems

To put it in Perspective

Last Year in the United States•15,000 Murders

•500,000 Armed Robberies

•15 Million Identity Thefts

•Less than 3% of Identity Thieves were prosecuted


Identity Theft Resource CenterStatistics

• There will be a NEW Identity Theft victim every 2-3 seconds This Year!

• Average length of time before you find out you are a victim is 12-18 months (FTC)

• Over 53 BILLION dollars lost per year

The cost of Identity Theft

MSNBC, February 2004

ID Theft Victims Face Tough Bank Fights*• In 2003, The Korinke family was sued by Homecoming Financial Network INC., a division of GMAC, for $75,000, plus attorney fees.

• In 2001, an imposter got hold of a line of credit, switched the address, and the Korinkes never received the outstanding bills.

• Homecomings … claimed the Korinkes had been negligent. “The Korinkes were slow to discover and report the identity theft … as such, Korinke is liable for any and all sums attributed to his negligence.”**

*2/18/04 ** Pg.2 *** Pg. 3

NOTE: The FACTA law states clearly that the Korinke family must assume the liability in this case

The cost of Identity Theft

*Pg. 19

An excerpt from the report:

“The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit … accounts … To take advantage of the law’s consumer protection, you must:”

•send your letter so that it reaches the creditor within 60 days. If an identity thief changes the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill.”* … or you could owe the money.

See page 13 for additional information

The Cost to Individuals The average dollar amount charged

in Identity Theft: $92,893

The average number of checks written in Identity Theft: 74.6

The average number of credit card applications approved through Identity Theft: 8.4

Laws hold victims partially responsible for fraudulent debt after 48 hours, and can hold them fully responsible if not reported within 60 days…


The Cost to Businesses

Employees can take up to 600hours to restore their identities

Must spend regular business hours to resolve

Not as productive or focused

Take more sick leave

Safety problems…workers comp claims increase


*CIO Magazine, The Coming Pandemic, Michael Freidenberg, May 15th, 2006


According to the National Computer Security Survey, 32,000 businesses were asked to participate in a survey about cybercrime.

Of the 7,818 businesses that responded, 67% detected at least one cybercrime in 2005. The monetary loss for these businesses totaled $867 million.



Surveys indicate that personal issues account for 68% of employee absenteeism. Many which are legal issues.

Studies also show that employees with legal problems usually:

•Are absent 5 times more than average

•Use their medical benefits 4 times more than average

•Use sick leave 2 times as often as the average employee

•Experience a substantial reduction in their productivity


Think you’re not at risk?

The top States for victims have been1. New York2. California

– Sacramento ranks second in the state

3. Nevada - Reno ranks first in the state

4. Arizona5. Washington6. Texas

What can you do?

• Shred everything and dispose of

• carefully!

• ASK! Why do you need my Social

• Security number, driver’s license, etc.?

What if someone calls…

• …and says you missed jury duty, they are your banker, can lower interest rates, or they are from the IRS or FBI

• Never give info over the phone unless you are positive of the person to whom you are speaking! Mom might be ok!

Be aware!

Monitor Your: • Mail• Credit cards• Social Security card• Driver’s license• Passport• Access to your home, car, etc.• Computer, cell phone, Blackberry, etc.

Understand what you are getting when you

buy identity theft protection products

The 3 “MUST HAVES” in any Policy or Service

• Continuous Credit Monitoring

• Total Restoration

• Access to legal counsel

Identity Theft Prevention

Even if you are careful, consider…

• A service to monitor your information for you on a daily basis

• A service that will do the work for you if you need to restore your credit, clear up a criminal record, or correct medical records


We all pay!

• Multi-billion dollar international business

• Costs are passed to consumers

• You or your employees take time off work to deal with identity theft

F.A.C.T.A.

HIPAA Security Rule

Gramm, Leach, Bliley Safeguard Rule

Individual State Laws

Important Legislation…

Important Legislation

- “Stolen Lives”, ABA Journal, March 2006

“We’re not looking for a perfect system,’ Broder says. ‘But we need to see that you’ve taken reasonable steps to

protect your customers’ information.’”

‘Someone, Is Watching You’

No One is Immune, You Must be Diligent to Protect Your Family & Your Good Name!

Free Business Risk Assessment• I am offering a FREE Business Risk Assessment to you and or your

office staff.

• The assessment will show how your business is exposed to potential penalties, fines and lawsuits as a result of not being compliant with FACTA, OSHA, FCRA, GLB, HIPAA & ADA. A series of simple multiple-choice questions are answered by you that leads to the creation of a report based on those answers.

• This Assessment covers five areas of risk:– facilities, – labor, – identity theft, – financial and – business entity.

• The Business Risk Assessment is accessed over the Internet.


Give the thief some grief!

Schedule an identity theft seminar for your employees or organization today!

Joe Nollet, Certified Identity Theft Risk Management Specialist,

Pre-Paid Legal Services, Inc. Identity Theft Shield by Kroll Risk Management International, Independent Associate

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