Presentation on theme: "Avoiding the Money Pit of Identity Theft Liability Exposures Joe Campana, Ph.D., CIPP/US/G, CITRMS Regional Vice President, Wisconsin 608-244-4772"— Presentation transcript:
Avoiding the Money Pit of Identity Theft Liability Exposures Joe Campana, Ph.D., CIPP/US/G, CITRMS Regional Vice President, Wisconsin 608-244-4772 campana@LegalShieldAssociate.com
DEFINITION Identity theft is the assumption and misuse of personal identifiers by an imposter for their advantage, which may be financial, non-financial, or both.
♦ Financial ♦ Existing Account Fraud (credit, debit, banking, trading, retirement) ♦ New Account Fraud ♦ Bank ♦ Credit Card ♦ Trading Accounts ♦ Government ID ♦ Employment ♦ Social Security ♦ Tax Refund ♦ Phone/Utility ♦ Housing ♦ Medical ♦ Character - Criminal ♦ Insurance ♦ Child TYPES OF IDENTITY THEFT
Identity theft increased 32% nationwide last year -- National Identity Theft Examiner www.IDTheftExaminer.comwww.IDTheftExaminer.com Identity theft increased 46% in Wisconsin last year Since 2005, 3,700 breaches reported that compromised 607 million consumer profiles Privacy Rights Clearinghouse Tens of thousands more breaches go undetected or unreported Approximately 1/3 of schools reporting breaches did not know how many profiles or types of profiles were breached IDENTITY THEFT FACTS
“Risk and Liability Considerations” 5 ♦ Tens of thousands of dollars in losses to victims. ♦ Median Actual Loss $31,356 Center for Identity Management and Information Protection IDENTITY THEFT FACTS ♦ Several hundred hours for identity restoration ♦ Post-traumatic stress, restoration, inconveniences and financial issues can take years to resolve. ♦ Estimated 10 - 20 Million Victims per year FTC, Gartner Research and ITRC ♦ 91% of consumers are concerned about ID theft Zogby Poll
6 Consequences of Staff Victimization Post-traumatic stress reactions (confusion, anxiety, rage, etc.) Increased accidents and worker compensation claims Increased illnesses with increased health insurance costs Financial issues – creditors, collection agencies, legal Civil and criminal issues Increased absenteeism ― personal and sick time Decreased productivity
7 Examples Houston school teacher Candida Gutierrez talks about the frustration of having her identity stolen. Benita Cardona-Gonzalez, a Mexican national living in Topeka, Kansas, pleaded guilty Monday, Jan. 7, 2013, to a reduced charge of possessing fraudulent identification documents in a deal with prosecutors that calls for an 18-month prison term. The case put a face on the growing crime of "total identity theft" in the United States. For 12 years, Cardona-Gonzalez used Gutierrez's identity to get a job, credit, a mortgage, food stamps and medical care.
8 Examples What Happens When Someone Else Gets Your Tax Refund by DAN BOBKOFF --February 18, 2013 4:02 PM A teacher in Bakersfield wondered what happened to her refund. "I just figured something was wrong with their system," says Joyce Hood. Someone had filed a return in her husband's name, using his Social Security number. The ID thief falsified earnings and made off with thousands of dollars from the Treasury. Joyce Hood, the teacher in Bakersfield, says she spent hours at the IRS office. Officials told her it could take up to a year to get her refund. "And I just looked at them, and I said, I can't, I really need this money. I have a daughter starting college," says Hood. As she waited, she paid part of her daughter's tuition with a credit card, racking up interest charges until the refund finally came last fall.
9 Examples Teacher Is Victim of Twitter Identity Theft In an unusual case of identity theft, someone impersonating a Bay District Schools middle school teacher set up a fraudulent Twitter account and posted derogatory comments about autistic students, Superintendent Bill Husfelt said Wednesday. Education Week. Published on May 13, 2011 Bloomington teacher victim of fake Facebook page Posted by EducationViews.org on June 29, 2011 Police say a Bloomington high school teacher was recently the victim of a Facebook page that she did not create and which was used to send inappropriate messages to students.
10 Examples Prostitute Steals School Employee's Identity VOLUSIA COUNTY, Fla. — One woman is a prostitute. The other is a Volusia County school employee. But a case of stolen identity blurs the lines of who's who. The school employee walked into work on a Monday morning and her boss asked her if she was arrested for prostitution over the weekend. He just read about her arrest in the morning newspaper. Here's some background. The woman's purse was stolen in a violent mugging two months prior. She was walking to her car in a Publix parking lot when her purse was snatched. "Someone wrote $1,300 dollars worth of checks [that] I had to prove it wasn't me." Apparently, the thieves were interested in more than money. Another woman took on her identity and then got arrested for prostitution, in the school employee's name.
Local Victim of Identity Theft “My health seems to be deteriorating rapidly. My broken marriage did a number on me especially after the loss of the unfair termination case. I've lost a substantial amount of weight and the stress of it all has taking me down. I dropped school as well as taking time off work. I'm not feeling too good at all. I'm going to see a doctor tomorrow.” --- Malcolm Byrd 11
70+% are derived from the workplace Stolen computers and media Hacking Web access Social engineering Dumpster diving Unprotected paper files Mail theft Dishonest workforce WHERE IDENTITY THIEVES GET INFORMATION
13 Examples Lawsuit filed over horrific student records breach Sep12, 2010 A parent and her child are suing the New York City DoE after the child’s high school dumped hundreds of unshredded confidential student records onto the street last year. Federal class action lawsuit over data leak Texas State Comptroller faces a federal class action lawsuit initiated by a school teacher over a data breach that compromised the personal information of more than three million Texans. Employees from the comptroller’s office inadvertently posted the information, including social security numbers and birth dates, on a public server where it remained exposed for one year. The information included data transferred by the Teacher Retirement System (TRS) of Texas, the Texas Workforce Commission (TWC) and the Employees Retirement System (ERS) of Texas.
Affirmative Defense “One solution that provides an affirmative defense against potential fines, fees, and lawsuits is to offer some sort of ID theft protection as an (voluntary) employee benefit... The key is to make the protection available, and have a mandatory employee meeting on ID theft and the protection you are making available, similar to what most employers do for health insurance” 14
Affirmative Defense “Employees can elect either to accept or decline to have ID theft coverage. If employees have coverage and become ID theft victims, the employer gains. The victimized employees will spend less time and money and experience less frustration in restoring their identities.” 15
Affirmative Defense “If employees decline the coverage and later claim their identities were stolen as a result of the [employers] actions, the employer has signed proof that they attended the presentation and declined the coverage.” Peter Marshall Business and Legal Reports January 19, 2006 16
LOW/NO-COST VOLUNTARY BENEFITS SOLUTION Two 40-Year-Old Companies One suite of services to protect the employer and employees Comprehensive Employee-Paid Voluntary Benefit for Identity Protection and Legal Services
Decreases employee stress Decreases accidents and worker compensation claims Fill gaps in general liability and other applicable insurance Compliments coverages Decreases identity theft related claims Increases employee productivity Reduces employee absenteeism Employees pay for the solution through voluntary payroll deduction. How Employer Benefits by a Voluntary Benefits Solution
Identity Theft Protection Plans... *Review the membership brochure for certain requirements and exclusions **Services are performed upon member request
Identity Protection Premium Benefit 3.5 This slide includes a link to an external video. To view the video an Internet connection is necessary.
21 Legal Needs Study Results Source: The Legal Needs of American Families. A Research Study Conducted by Decision Analyst, Inc. Commissioned by LegalShield 93% of employees believe lawyers charge too much. 76% of employees said were hesitant to call a lawyer. 9 out of 10 employees said if cost were more affordable, they would seek legal advice. 93% of employees believe lawyers charge too much. 76% of employees said were hesitant to call a lawyer. 9 out of 10 employees said if cost were more affordable, they would seek legal advice.
22 Source: The Legal Needs of American Families. A Research Study Conducted by Decision Analyst, Inc. Commissioned by LegalShield Nearly 90% of Americans say they do not have any form of legal insurance or legal protection service. Two-thirds of Americans More than 60% reported they would be interested in purchasing legal protection. Nearly 90% of employees say they do not have any form of legal insurance or legal protection service. Two-thirds of employees say they have never heard of any such plans or services. More than 60% reported they would be interested in purchasing legal protection. Legal Needs Study Results
* Up to 90% of member inquiries are covered by the plan with no additional fees. All other requests for service are entitled to a 25% discount to the law firm’s hourly rate (including pre-existing issues). Legal Services Available Legal Advice - Unlimited issues Letters/Calls made on your behalf Contracts/Documents reviewed up to 10 pages Online Legal Forms Lawyers Prepare Y H T * Trial Defense Pre-Trial Representation at trial I 2 Legal Advice - Unlimited issues Letters/Calls made on your behalf Contracts/Documents reviewed up to 10 pages Online Legal Forms Lawyers Prepare Your Will, Living Will, Healthcare Power of Attorney Traffic-Related Issues 24/7 Emergency Access for covered situations Trial Defense Pre-Trial Representation at trial IRS Audit Assistance 25% Preferred Member Discount* Legal Services Benefits
LegalShield Voluntary Employee Benefit 3.5 This slide includes a link to an external video. To view the video an Internet connection is necessary.
ID Protection and Legal Voluntary Benefit Packages Up to 8 children are covered under the Identity Protection Plan for an additional $1 Membership cost will vary based on the plan that employees select. Individual enrollment fee waived for voluntary employee benefit groups
LegalShield works directly with school districts nationwide and optionally LegalShield can work directly with your benefits broker. Contact us and we will make the necessary arrangements with your benefits broker. Joe Campana, Regional Vice President, Wisconsin Employee Benefits Specialist Independent Associate 608-244-4772 email@example.com Benefits Brokers and Agents
The following items are excluded from coverage under the contract: Any action, proceeding or dispute related to the Named Member’s employment. This exclusion applies specifically to contract number xxxxx. Legal Plan Amendment
Who’s covered 29 The member The member’s spouse Never-married dependent children under age 21 living at home Dependent children under age 18 for whom the member is legal guardian Full-time college students up to age 23; never married, dependent children Physically or mentally challenged children living at home The employee The employee’s spouse or partner Never-married dependent children under age 21 living at home Dependent children under age 18 for whom the member is legal guardian Full-time college students up to age 23; never married, dependent children Physically or mentally challenged children living at home Legal Plan
Who’s covered 30 The member The member’s spouse Never-married dependent children under age 21 living at homeat home The employee The employee’s spouse or partner All children up to 18 are covered for $1 per month. Identity Protection
Learn About Our Provider Law Firms 4 This slide includes a link to an external video. To view the video an Internet connection is necessary.