1. Advanced Identity Theft Responses: Financial Identity Theft
National Center for Victims of Crime
Webinar – September 10, 2014
Joshua 1

2. FINRA & FINRA Foundation
Financial Industry Regulatory Authority (FINRA)
Independent, non-governmental regulator for all securities firms doing business with the public in the U.S.
Protects investors and maintains market integrity in a public-private partnership with the SEC
Created through consolidation of NASD and NYSE Regulation
Regulation, enforcement, education
FINRA Investor Education Foundation
Awards grants and manages targeted projects focused on investor education and protection
CHRISTINE – 1 minute
Brief overview of what FINRA and the FINRA Foundation do.
Then turn to the Foundation’s fraud prevention/Investor Protection Campaign.
Investor Protection Campaign - a targeted effort to reduce the incidence of investment fraud among investors. Last several years, FINRA Foundation and AARP partnered to produce a body of research: “Why do investors fall prey to investment fraud?”
Three different lines of research have been pursued:
victim profiling, 2) persuasion tactics and 3) curriculum testing.
We have:
Learned what the face of investment fraud looks like.
Established the risk factors that differentiate victims from other investors.
Identified the most common persuasion tactics used to perpetrate investment fraud.
[Research write ups of the are available online at
FINRA Investor Education Foundation joined together with AARP, the SEC, state securities regulators and non-profit agencies and community-based organizations to demonstrate simple steps every investor should take before making any investment decision.
Goal: to train fraud fighters across the country to carry these messages to their friends, families and community.

3. National Center for Victims of Crime
Mission: Forge a national commitment to help victims of crime rebuild their lives.
Dedicated to serving individuals, families, and communities harmed by crime. 
Through collaboration with local, state, and federal partners, the National Center:
Advocates for Stronger Rights, Protections, and Services for Crime Victims
Provides Education, Training, and Evaluation
Serves as a Trusted Source of Current Information on Victims' Issues
Jeff – 1 minute

4. Financial Crime Resource Center
Affiliate of the National Center for Victims of Crime
Mission: Help victims of financial crime recover their assets, and recover control of their lives
Partner with organizations around the U.S. who work with victims of fraud, identity theft and other financial crimes to ensure that victims have access to the best possible recovery
Advocate for fair compensation and restitution for all crime victims
Josh – 30 seconds

5. Presenters Hazel Heckers
CO Bureau of Investigation, Identity Theft/Fraud Investigation Unit
ID Theft Advocacy Network of CO
Merry O’Brien
National Identity Theft Victims
Assistance Network
Joshua

6. Objectives
Understand how identity theft can harm victims and the barriers faced in recovery
Identify the steps to help your clients take following the financial identity theft victimization
Learn to build your organization’s capacity to address the needs of identity theft victims
Access advocate training tools, materials for clients, and other online resources
Introduction – Josh 2 minutes
Brief Recap -  Merry – 5 minutes
Impact of ID Theft – Merry – 20 minutes
Steps to Recover – Hazel – 45 minutes
Building Capacity – Hazel – 10 minutes
Resources – Merry – 5 minutes
Conclusion and Q&A – Josh – 5 minutes

7. Part I:
The harm identity theft can cause to victims & barriers victims face after the victimization
Introduction – Josh 2 minutes
Brief Recap -  Merry – 5 minutes
Impact of ID Theft – Merry – 20 minutes
Steps to Recover – Hazel – 45 minutes
Building Capacity – Hazel – 10 minutes
Resources – Merry – 5 minutes
Conclusion and Q&A – Josh – 5 minutes

8. Identity Theft: A Quick Recap
Identity theft is the misuse of another’s personal information to:
fraudulently obtain
goods or services
a job
medical treatment, medications, or equipment
government services or benefits
hide from government, law enforcement, or others who perform background checks
Merry

9. Remember: Financial IDT is One of Many Types
Criminal Identity Theft
Medical Identity Theft
Child Identity Theft
Senior Identity Theft
Identity Theft Related to Governmental Processes (tax, social security administration, social services)
Domestic Violence Related Identity Theft
Criminal – financial implications – ex: background check leading to turned down for job, loss of current job.
Medical - affects estimated 1.5 million in US (Ponemon study ‘11). Financial implications. Also comingled records – deadly issues. Tough recovery – HIPPA hindering recovery plus regulations lacking to support victim. There is now a group forming specifically for this type of IDT – the Medical Identity Fraud Alliance – MIFA.
Tax – increasing issue – more and more reports each year. Top states: FL, GA, CA, MI, NV, MD, AZ, TX, NY, IL. Makes up majority of benefits IDT. Tax IDT Awareness Week will be hosted by FTC for the second year – January 26th – 30th, 2015

10. How Does ID Theft Hurt Victims?
Direct financial losses, damage to credit score, reputation
Dangerous medical mistakes
Denial of employment, housing
Reduced ability to escape a domestic violence abuser
Inability for young adult to buy a car, secure an apartment, receive a student loan – gain independence
Problems with IRS
Civil judgments, criminal record, false arrest or detainment
Emotional harm
Time and cost of repairing damage
Merry

11. Some of What May Be Involved…
Criminal History (state/nation)
Known Relatives & Associates
Driving Records
Insurance Claims
Employment History
DL/Mug Shot Photos
Warrants
Social Media Information
DOC Records
Credit Headers, Financial Inquiries
Liens or other court actions
Student Loans
IRS & State Dept. of Revenue Actions
Birth & Death Records
Property
Social Security Number Confirmation Inquiries
Vehicles
Medical Records
Addresses

12. What Does the Data Tell Us?
16.6 million ID theft victims in 2012;
15.3 million – criminal misused of existing account;
1.9 million – criminal opened a new account or other fraud
Total financial losses in 2012 = $24.7 billion
Recovering victims spent an average of $2,200 in out-of-pocket costs, average of 600 hours of recovery work.
Over 3 million experienced issues such as having utilities cut off, being arrested, finding erroneous claims on their health records, having child support garnished for children they never had, and being harassed by collection agencies.
*Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey Supplement, Victims of Identity Theft, 2013
Examples: taking time off of work to make appearances at banks and making phone calls to correct erroneous credit report entries, getting documents notarized and writing letters

13. Not a “Victimless Crime”
Over half of the victims feel moderate to severe distress from the identity theft.
Also physical impacts: insomnia (Sharp et al ‘04), stomach aches, and headaches (ITRC ‘07). Heart palpitations, hyperventilation, dizziness, sweating, high blood pressure and muscle aches, sexual dysfunction (ITRC ‘09).
Langton, L. & Planty, M. (2010). Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey Supplement, Victims of Identity Theft 2008.

14. Latest Data from BJS
See webinar featuring Langton and Planty – give link
Langton, L. & Planty, M. (2013). Bureau of Justice Statistics Special Report, National Crime Victim Victimization Survey Supplement, Victims of Identity Theft

15. I apologize for the vernacular, but it just sucked, what he did
I apologize for the vernacular, but it just sucked, what he did. As soon as I hit…college...everything went downhill when everyone’s life should be going uphill, mine sank like a stone to the bottom of the ocean.
It took so long to dig out from underneath…it was always just this constant never knowing…“What shoe’s gonna drop? What bill is gonna come in the mail? Who’s gonna sue me today?”…That’s how you live your life…a state of paranoia…That sort of consumes you. And you’re also never taken seriously by anyone, so when you do speak to the police…they think you’re lying.
You know, as an adult now in my early 30s, it’s not something I think of every day, but I think of what could I be doing now at 30 hadn’t this happened…my contemporaries all have jobs and nice homes. I don’t particularly have that…I didn’t have that good foundation to build upon; my foundation was already used up before I got there.
“The Experiences of Adult/Child Identity Theft Victims,” Axton Betz:

16. -From an identity theft victim helped by CBI
“Not only am I getting bills for hundreds of thousands of dollars, but operations, pregnancies, substance abuse treatment—even an extended stay in an in-patient mental health hospital—are all showing up on my child’s medical history. He is only 5! And what happens if we get in a car accident or something and I can’t tell them in the emergency room? Will this kill my baby?” -From a mother of an IDT Victim Served by CBI
“I travel for my business. Now that this has happened, I have turned down jobs out of state because I’m afraid I might still be on a No Fly List and end up in prison. The police told me the person using my ID has made terrorist threats against the President. That is really scary!”
-From an identity theft victim helped by CBI

17. Trauma Response Shame and embarrassment Feelings of “paranoia”
Confusion & disbelief
Reluctance to report
Challenges in relationships, divorce
Fear
Unsure of how to report, overwhelmed
Loss of trust
Alteration of Lifestyle and prior life responses
Fear of recurrence
Anxiety, depression, suicide
Spiritual Questioning
Merry

18. No Justice For Me
Victims feel they receive no sense of justice for the crimes perpetrated against them
Repeatedly violated, often by same person, yet no arrest
Not only does perpetrator go free, but is also free to commit the crime again and again
Law Enforcement, Victim Advocates and “the system” often part of the problem – rather than a support
So….how can we provide a compassionate and competent response?.....

19. Recap: Basic strategy Stop impostor activity Report the crime
Repair the damage
Prepare for re-victimization

20. Recap: Basics for Victim Advocates
Remind victims to maintain copies of ALL paperwork associated with case in a secure, easily accessible location
Encourage questions & clarification
Encourage victims to keep detailed notes about contacts
Documentation is vital
Helping victims of IDT takes time & requires working with many organizations and agencies
Access Experts—if you do not know what you are doing, you will create more work for the victims
Work Collaboratively

21. Part II: Response & Repair

22. Credit Reports How to read What it shows What it does not show
When to take further action
Who to call for help

23. Anatomy of a Credit Report
Personal Information
Public Records (financial)
Credit History
Inquiries or Credit History Requests
Personal Statements/Fraud Alerts
“Other”

24. What a Credit Report Does Not Show
Credit Reports show most financial information, but do not always include:
All credit accounts (such as those opened at a “Buy Here Pay Here” car lot or a Rent to Own Shop )
Who is using the person’s credit
Business credit opened in the person’s name
ID Theft that is not financial

25. Repair

26. First Steps
Obtain Credit Report from all 3 Credit Reporting Agencies(CRA)
Report to Law Enforcement (some businesses will require a police report)
Report to the FTC with the FTC ID Theft Affidavit (optional, but helpful): 877-ID-THEFT

27. Repair Place Fraud Alerts Consider Credit Freeze
Determine what entries are fraudulent
Begin requests for corrections/blocking
Respond to any collections actions
Request documentation from creditors

28. Fraud Alerts 90 days Renewable for 7 years
Entitles victim to one free credit report
Credit reporting agencies:
Equifax:
Experian:
TransUnion:
Creditors must take “reasonable steps” to verify one’s identity
Cindy

29. Credit Freezes
Must request in writing from each credit reporting agency
Blocks all new credit
Effective until lifted
Possible fees, if no accompanying police report or Identity Theft Report
Cindy

30. Dispute Letters Send to all 3 CRA’s
Fraud Department of ALL creditors that are inaccurate—even if account is in good standing

31. Dispute Letters Cover letter explaining situation
Copy of Police Report
Copy of FTC Affidavit (optional)
Proof of ID
2 forms of government issued ID
State ID or DL
SS Card
Birth Certificate
Verification of Guardianship status or other legal status

32. Dispute Letters Letters Must State: Victim of ID Theft
Credit Report inaccurate due to ID Theft
Request inaccurate information is BLOCKED from appearing on credit report
Request verification of actions taken

33. Sample Dispute Letters Available
Merry – also mention that FTC’s guide (to be discussed later) also has sample letters with all the things Hazel mentioned included in the sample letters.
Access to Justice – Statewide Legal Services Websites
Find your state’s here: identitytheftnetwork.org/GetHelp

34. Return Letter Request Verification that:
Account is fraudulent and does not belong to victim
Victim is not liable for debt or account
Date account was closed
Date account was removed from all 3 CRA’s
Creditor will not sell or transfer loan under victim’s name and will not report to CRA in future

35. Blocking Once CRA accepts ID Theft report, it MUST
Block the fraudulent information within 4 business days
Notify business of the block and ID Theft findings

36. Blocking Once business is notified of block, it MUST
Stop reporting info on that account to the CRA’s
Must not sell or transfer debt for collections

37. Obtaining Documentation
Contact Fraud Department of creditor and request all documents:
Used to open new accounts
Used to charge purchases
Details of where and when fraudulent transactions took place
Copy of any applications for credit or loans, including signatures and copies of ID’s used

38. Obtaining Documentation
Documents must be sent AT NO COST to victim within 30 days
Law Enforcement may be able to obtain documents more quickly

39. Repairing Other Actions
Bankruptcy
Investment Accounts
Foreclosures
Fraudulent Student Loans

40. Debt Collectors
Tell the debt collector to stop calling as debt is due to ID Theft
Ask that the account be flagged as ID Theft being disputed
Write to the debt collector
Include all info mentioned above
Call and write to the initiating business

41. Debt Collectors
Notifying debt collectors that debt is related to ID Theft may not stop civil law suits
Request mediation
Seek legal representation
Prepare documents (see obtaining documents)

42. Document All Actions DOCUMENT EVERYTHING
The most important thing any victim of ID Theft or person assisting a victim of ID Theft MUST do:
DOCUMENT EVERYTHING
Keep record of all calls, letters sent, reports files
Copy everything
Send s as follow up for phone calls so there is written documentation of conversation
Request read receipts and a response from party ed verifying info included in your
ALWAYS get the name and title of party speaking with
Send Certified Mail

43. Questions?

44. Part III:
Building your organization’s capacity to address the needs of identity theft victims
Introduction – Josh 2 minutes
Brief Recap -  Merry – 5 minutes
Impact of ID Theft – Merry – 20 minutes
Steps to Recover – Hazel – 45 minutes
Building Capacity – Hazel – 10 minutes
Resources – Merry – 5 minutes
Conclusion and Q&A – Josh – 5 minutes

45. Tips Understand process before trying to lead victim through it
Establish contacts in community who will help
Banks and Credit Unions
Financial Advisors
Credit Card Companies
Attorneys (including “Legal Aid”)

46. Tips Consider Retired Volunteers Retired Bankers
Retired Fraud Investigators
Retired Law Enforcement
Retired Prosecutors
Retired Attorneys
Retired Business Owners
Retired IRS Employees

47. Tips
Do you have a grant that requires or allows volunteer hours as Matching Funds?
You may be able to count “specialized volunteers” at a higher dollar per hour rate
Win for your agency and Win for the victims

48. A Word About Criminal Enterprises
Identity Theft & Fraud have been directly linked to Global Organized Crime Activities including:
Human Trafficking
Drug Trade
Terrorist Activities
Known Terrorist Organizations

49. Questions?

50. Part IV:
Advocate training tools, materials for clients, and other online resources

51. Advocates’ Handy Desk Guide
Laura

52. Lawyers’ Handy Desk Guide
articles/pdf-0119-guide-assisting-id-theft-victims.pdf

53. Resources for your Clients & Outreach Materials

54. Alerts on Latest Fraud & Scams
Cindy
aarp.org/FraudWatchNetwork

55. A Support Network for Professionals Helping IDT Victims
IdentityTheftNetwork.org
Twitter.com/IDTheftNetwork
Facebook.com/IdentityTheftNetwork
Merry

56. Printable Outreach Material
Brochures
Website Material
PSA Scripts & Audio & Visual Samples
Quick Tip Sheets
Ready-To-Use Forms
Sample MOU’s
Slides, Instructor Manuals, Worksheets
Access to Topic-Specific Trainings & National Experts
Merry

57. Finding Your State’s Laws & Resources
State Victim Resources (numbers, links)
Security Freeze Law & State-Specific How To’s
Mandatory Police Report Law for IDT Victims
ID Theft Passport Law
Inclusion in state’s restitution definitions
Related Laws including Civil Suits, Access Devices, Computer Crimes, Security Breaches

58. Online Interactive Training for Advocates
Laura

59. Resource Round Up
FTC - ftc.gov/idtheft OVC - ovc.gov/pdftxt/IDTrightsbooklet.pdf NCVC Financial Crime Resource Center - victimsofcrime.org/our-programs/financial-crime-resource-center National Identity Theft Victims Assistance Network - identitytheftnetwork.org AARP - aarp.org/FraudWatchNetwork Identity Theft Resource Center - idtheftcenter.org
Laura

60. Questions? Hazel Heckers: Hazel.Heckers@state.co.us
CO Bureau of Investigation, Identity
Theft/Fraud Investigation Unit
ID Theft Advocacy Network of CO
Merry O’Brien:
National Identity Theft Victims
Assistance Network

61. What’s Next?
Download or order a copy of Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud
SaveAndInvest.org/FraudCenter – see Program and Outreach Toolkit
Encourage your colleagues to order copies of the guide.
Stay tuned for future webinars related to financial fraud advocacy.
Josh
-Checklists
-ID Theft Webinar