Chapter 6 What is identity theft?

 What are the three Credit Bureaus which you can obtain your FICO SCORE?  Is a high FICO score a measure of winning financially? Explain  What is the amount of time a credit bureau must remove any inaccuracies?  How long does accurate account information stay on your credit report?  What % of credit reports have mistakes?  Explain what to do if there are mistakes on your credit report?

1. Place a fraud victim alert on your credit bureau report ( only stays for 90 days without one) 2. Get a police report 3. Remember this is a theft you owe nothing and therefore pay NOTHING 4. Contact fraud victim division and furnish documentation 5. Be persistent ( can be annoying and time consuming)

 States that a credit bureau has to remove all inaccuracies within 30 days  Take the following steps: 1. Write a separate letter for each inaccuracy. 2. Staple a copy of your credit report to each letter 3. Circle the account number. 4. Send Certified Mail 5. If not removed within 30 days complain to Federal Trade Commission (FTC)

Standard 9.2 E. Becoming a Critical Consumer E7

Today’s Objectives: 1.Explain how Identity theft and account fraud happen. 2.Identify the effects of ID theft and account fraud. 3.Prevent Identity Theft from happening to you. What will you learn?

 What is Identity Theft? ( Your personal information is obtained without your permission for personal gain )  What is Identity Fraud? (Is misuse of your information for financial gain)

Your wallet is stolen Electronic files are hacked Your personal information is stolen from the trash Identity Theft Your account information is used for purchases New accounts are opened or insurance purchased using your personal information Your information is used for another crime Identity Fraud 8

 What is a credit report?  Detailed record of your credit history  Compiled by credit reporting companies  Equifax, Experian,TransUnion  Lets check out a sample credit report  /pdf/samplecreditreport.pdf /pdf/samplecreditreport.pdf  Used for credit decisions  Identity Fraud can temporarily ruin your credit !!!

 Identity Theft Identity Theft 

 Dumpster Diving

Skimming

Phishing  Pretending to be a legitimate company  Trick you into giving personal information

Stealing your Mail

 What harmful things could happen as a result of Identity Theft?  Withdraw money from your bank account  Ruin your credit score  Frustration and stress  Expense involved: ( cancelling accounts, getting new accounts and account numbers, etc) Identify the Effects

 Shred  Never carry social security card in your wallet  Never give personal information over the phone  Passwords ( omit personal information)  Mail (hold at post office while on vacation)  Check on late arrivals of bills or statements  Use passwords to access all mobile devices  Prevent..  

1. What precautions should you take to protect yourself from Identity Theft? 2. List three things that could happen as a result of Identity Theft. 3. Who do you lodge complaints with if inaccuracies are not removed from your credit report in 30 days? 4. Which type of information stays on your credit report for 10 years?

 Best way to pay debt is with a plan  Bill collectors only want your money  Trained salespeople with low pay and high turnover  Your bill paid is the sale!  You must still pay yourself first!  Then make a plan and stick to it to get debt down.

 Always set your priorities by the Four Walls:  1. Food  2. Shelter  3.Clothing  4. Transportation

 List the four walls ? Explain  How often should you talk to a debt collector?  What is the time frame a debt collector can call you?  Explain the relationship between a FICO score and debt.

 Passed in 1977  Harassment is illegal  Can call between 8:00 am-9:00 pm  Cannot call you at work  Request in writing ( certified mail)  Cease and Desist Letter: Stop all contact  Except for lawsuit proceedings  Collectors or Creditors cannot garnish wages or take money from your bank accounts.  Be prepared with a realistic plan

Investigate and Report Scams  Investigate consumer scams  Write a warning that will prevent other people from becoming victims  Be creative: write editorial,create an ad, brochure, poster etc.... Research Identity Theft Project  Research a specific type and a real life story Create a report and a visual including at least two statistics precautions and preventions. Be creative !

 Work on your mini projects ( 20 minutes)  Stock Market Groups (10 minutes)  One Shark Tank presentation:  Identify:  Name of business  Amount of Capital they were seeking  Deal ?  Would you invest ? Why ? Why Not?  Discuss end of class

 List which type of bills are not covered under bankruptcy.  When can you most likely be sued if you are behind in paying your bills?  What are some ways to protect yourself from identity theft?

 Use pro rata plan when it becomes impossible to pay the minimum payment 1. Determine your total disposable income ( money left over after all expenses are paid) 2.Add total amount of debt ( exclude home) 3.Total of monthly payments 4.If total of monthly payments are more than your disposable income : use the pro rata form.

 Joe and Suzie’s total debt=$2,  Combined Minimum payment = $  Disposable income=$  Use pro rata plan to give each creditor a fair share of the $210.00

1. Name and type of account 2. Total Payoff ( amount due on account) 3. Total of all Debt 4. Percent : Divide Total Pay off for each account by Total Debt 5. Disposable Income 6. New Payment: Calculate by multiplying percent of debt by disposable income 7. Let’s try it out