The Third International Forum on Financial Consumer Protection & Education “Fostering Greater...

The Third International Forum onFinancial Consumer Protection & Education

“Fostering Greater Consumer Protection & Education”

Preventing Identity Theft and Fraud

Preventing Identity Theft & Fraud

23rd Int’l Forum on Financial Consumer Protection & Education

Agenda

1. Our Identity

2. Definition

3. How Can Identity Theft Happen

4. Misuse of Stolen Identities

5. Warning Signs

6. Preventing Identity Theft

7. Tackling the Problem



Our Identity

Our identity is a valuable asset

It’s a personal part of who we are

Open bank accounts

Obtain credit cards

Apply for loans, mortgages

Purchase goods and services

Claim benefits



Definition

Identity Theft: An illegal act in which someone accesses and uses the identifying information of an actual person in some way that involves fraud or deception.

Identify Fraud: The use of a misappropriated identity in criminal activity, to obtain goods, services or benefits by deception for economic gain without the victim being aware.



How Can Identity Theft Happen?

Your HOME or VEHICLE is burgled and your personal information and documents may be taken.

Your personal information may be stolen and used or sold by employees of legitimate BUSINESS.

Information found in the TRASH BIN could provide a thief with an opportunity to steal your identity.

Many important documents are posted to you and can be stolen from your MAILBOX.




Criminals could request for a “change of address” and have your MAIL DIVERTED to another address.

Your WALLET contains personal information such as your licence, credit and ATM cards and other personal documents, that may be stolen.

You may be the victim of a scam and be conned into providing personal information over the telephone by an IMPERSONATOR (social engineering).




SHOULDER SURFING in public place.

Your personal computer could be the weakest link, as it is vulnerable to threats posed by HACKING, PHISHING and MALWARE.

Most surprisingly, you could have your identity stolen and used by someone you know and trust - FRIEND, RELATIVE or COLLEAGUE.



Misuse of Stolen Identities

Submit false application for credit cards and loans

Take over existing accounts

Open bank accounts to write bad cheques

Open landline or mobile phone account

File for bankruptcy

Submit false claims on insurance policies

Submit fraudulent tax returns to collect refunds

Submit claim for unemployment or social security benefits




Terrorism financing

Money laundering

People smuggling (human trafficking)

Illegal immigration

Drug trade

Crimes

Abuse of government programmes




Fastest growing crime

US in 200310 million victims

US$1 billion loss by lenders

UK in 2003Over 100,000 cases

£1.3 billion loss

Australia in 2002A$1.1 billion loss



Warning Signs

You receive bills, invoices or receipts for goods which you have not ordered.

You receive letters or calls from debt collectors relating to debts that aren’t yours.

You receive bank statements for accounts in your name which you have not applied for or opened.

There are transactions on your account statements that you don’t recognize.



Warning Signs

Important identification documents are missing.

You stop receiving regular mails.

You did not receive any mail at all.

New accounts on your credit report.

Searches on your credit bureau report that don’t relate to any application made by you.



Preventing Identity Theft

Supply your personal information appropriately

Check financial information regularly

Ask for credit bureau report periodically

Maintain a record of important accounts

Destroy personal information before disposal

Use passwords for important accounts

Report loss or theft immediately

Secure your mail and personal information



Computer & Internet

Use passwords for protection

Change passwords periodically

Use anti-virus software

Install personal firewall software for online access

Beware of unsolicited e-mails (phishing & malware)

Transact at secure websites; avoid spoof websites

Wipe before disposing hard drive

Be wary of using public computers

Preventing Identity Theft



Tackling the Problem

Stringent verification process to detect fraudulent applications using stolen identities

Using scoring technology & neural networks

Robust procedure to prevent account takeover

Employee screening & training programme

One-time password and two-factor authentication for internet banking

Fraud Detection System

Customer education

Information sharing



Victim Assistance Programme

Citi Identity Theft Solutions

Comprehensive service

Close unauthorized accounts

Credit bureau checks

Contact other creditors/banks

Police report

Monitor account

Update status until close

Reclaim identity




ID card system

Criminal offence for identity theft and fraud

Police investigation

Sufficient deterrence to criminals

Access to public records




The End

THANK YOU

The Third International Forum on Financial Consumer Protection & Education “Fostering Greater...

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