Shaun McGorry Executive Briefing July 30, 2009 Identity Theft

Introduction Every computer keystroke, online transaction, opened, trip taken, Internet social event, or Wi-Fi hook up places a person at risk for drained bank and investment accounts, months or years fighting “City Hall” to repair their reputation, being looked over on loan and mortgage approvals, and their life literally “tied up” until it’s over! Identity theft: term used to refer to fraud that involves someone pretending to be someone else in order to steal money or get other benefitsfraud This presentation: explains what identity theft is, details certain methods, gives some interesting statistics, and offers some insight of what actions are taking place to protect the public

Identity Theft Identity theft: occurs when someone uses another person’s personally identifying information, like a name, Social Security number, or credit card number, without permission, to commit fraud or other crimes; very serious crime While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports In rare cases, they may even be arrested for crimes they did not commit

Methods of Identity Theft Shoulder surfing ­ a criminal watches the victim from a nearby location as they punch in their telephone calling card number or credit card number ­ or listen in on their conversation if they give their credit-card number over the telephone to a hotel or rental car company Dumpster diving ­ a criminal goes through a victim’s garbage cans or a communal dumpster or trash bin -- to obtain copies of their checks, credit card or bank statements, or other records that typically bear their name, address, and even their telephone number The Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information through spam and Criminals reportedly have used computer technology to obtain large amounts of personal data Good, Old Fashioned Stealing - criminals steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information; they steal personnel records, or bribe employees who have access to names and Social Security numbers, credit card numbers, or other financial account information

Identity Theft Statistics Millions of people become victims of identity theft each year In 1 year, as many as 10 million people -- or 4.6 percent of the U.S. adult population -- discover that they are victims of some form of identity theft, translating into reported losses exceeding $50 billion Victims of identity theft will spend an average of 60 hours clearing their name and related credit problems Identity theft is now the fastest growing crime in the nation Less than one-third of identity theft crimes are reported to law enforcement

Prevention People should secure their business premises with locks and alarms People should also put their business records under lock and key Another important procedure is to shred, shred, shred People should also be cautious on the phone Network needs to be password protected Effort to protect the computer system from hackers Computer network needs to be protected by firewalls People should also be aware the Internet is a dangerous place Companies should also avoid broadcasting information and create and enforce a company wide security policy Companies need to disconnect ex-employees immediately

Legislation and Law Enforcement The Department of Justice prosecutes cases of identity theft and fraud under a variety of federal statutes Identity Theft and Assumption Deterrence Act Carries a maximum term of 15 years' imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense Schemes to commit identity theft or fraud may also involve violations of other statutes such as identification fraud, credit card fraud, computer fraud, mail fraud, wire fraud, or financial institution fraud Carry substantial penalties ­ in some cases, as high as 30 years' imprisonment, fines, and criminal forfeiture Federal prosecutors work with federal investigative agencies such as the Federal Bureau of Investigation, the United States Secret Service, and the United States Postal Inspection Service to prosecute identity theft and fraud cases Federal Bureau of InvestigationUnited States Secret ServiceUnited States Postal Inspection Service

Summary Goal: to make the public aware of the seriousness of identity theft Awareness is an effective weapon against many forms of identity theft Armed with the knowledge of how to protect themselves and take action, people can make identity thieves' jobs much more difficult The FTC has prepared a collection of easy-to-use materials to enable anyone regardless of existing knowledge about identity theft to inform others about this serious crime