1. IDENTITY THEFT WHAT WE SHOULD KNOW!!!

2. Standard/Objective: Standard 3 - Objective 4 Describe the rights and responsibilities of buyers and sellers under consumer protection laws. Explain the purposes and features of consumer protection laws, agencies and sources for assistance. Describe ways to avoid “Identity Theft” and fraud (e.g., keeps Social Security numbers secure, properly dispose of outdated documents). Explain the importance of understanding financial contracts (e.g., disclosure information, grace period, payment penalties, and method of interest calculation). List possible actions a consumer can take in response to excessive debt and collection practices (e.g., sell assets, negotiate a repayment schedule). Describe ways to avoid financial scams and schemes designed to defraud consumers (e.g., Ponzi and pyramid schemes, affinity fraud).

5. INTRODUCTORY ACTIVITY To introduce the topic of IDENTITY THEFT, have students empty their wallets, purses, bags, etc., on their desks. Have them find all information that tells something about who they are (their identity). Allow students time to share with a partner what they found and their reaction to the realization of how easily their identity could be stolen. Discuss ways they think this information can be used fraudulently.

7. http://www.youtube.com/watch?v=POihX-JKnRc MIKE HUCKABEE TAKES A LOOK AT IDENTITY THEFT

8. IDENTITY THEFT “TRUE-NAME FRAUD” Someone wrongfully acquires and uses a consumer’s personal identification, credit, or account information.

9. FRAUD A deliberate deception, designed to secure unfair or unlawful gain. (“Cheating the Consumer ”)

11. DELIVERING JUSTICE DVD “Nowhere To Run”

13. A CROOK’S BAG OF TRICKS Watch Out For Thefts Like These Here’s a sample of the way identity thieves commit their crimes. File a change of address form in your name to divert mail and gather personal and financial data Steal credit card payments and other outgoing mail from private, curbside mailboxes Lift driver’s license numbers, Social Security numbers, phone numbers, or other identifiers from checks

14. Go “dumpster diving” by digging through garbage cans or communal dumpsters in search of cancelled checks, credit card and bank statements, or pre-approved credit card offers A CROOK’S BAG OF TRICKS

15. THE ULTIMATE IDENTITY THEFT Dexter Evans life has been a nightmare for the last 12 years...He's been denied the American dream he worked so hard to try and achieve. http://www.youtube.com/watch?v=IdJYx1O28 lk http://www.youtube.com/watch?v=IdJYx1O28 lk

18. A CROOK’S BAG OF TRICKS Steal discarded applications for preapproved credit cards and fill them out with a different address Steal wallets and purses-and all the credit and identification cards inside them. Take important documents such as birth certificates, passports, copies of tax returns and the like during a burglary of your house Steal Social Security Cards

20. A CROOK’S BAG OF TRICKS Steal the Social Security numbers and identities of children who are especially vulnerable because they do not have credit histories and it may be many years before the theft is discovered. Lift names and Social Security numbers from such documents as a driver’s license, employee badge, student ID card, check, or medical chart

22. A CROOK’S BAG OF TRICKS Use personal information of a relative or someone he or she knows well, perhaps by being a frequent visitor to their home Pretend to be government officials or legitimate business people who need to gather personal information from credit reporting agencies or other sources Hack into a computer that contains your personal records and steal the data

23. A CROOK’S BAG OF TRICKS Buy Records stolen by a fellow employee who’s been bribed “Shoulder surf” by watching from a nearby location as he or she punches in a telephone calling card number or listens in on a conversation in which the victim provides a credit card number over the telephone in a public place.

24. PROTECTING YOUR CREDIT Keeping Track of Your Credit You can take steps to stop or prevent identity theft by:  Immediately closing any accounts accessed by an identity thief  Insisting on password-only access when opening new accounts  Stopping payment on stolen or misused checks  Canceling a lost or stolen ATM card and getting another one with a new PIN Stay alert to new instances of identity theft.

25. PROTECTING YOUR CREDIT Protecting Your Credit Information on the Internet Although you cannot control fraud or deception on the Internet, you can take steps to recognize, avoid, and report it. These steps include:  Using a secure browser  Keeping records of your online transactions  Reviewing your monthly bank and credit card statements  Reading the privacy and security policies of Web sites you visit  Keeping your personal information private  Not downloading files sent to you by strangers

26. PROTECTING YOUR CREDIT Protecting Your Credit from Theft or Loss Lost credit cards are a key element in credit card fraud. To protect your card, you should:  Be sure that your card is returned to you after you make a purchase.  Keep a record of your credit card number.  Notify the credit card company immediately if your credit card is stolen.

27. PROTECTING YOUR CREDIT Government Agency Protection If you continue to experience identity-theft problems after taking these steps, contact the Privacy Rights Clearinghouse of the Federal Trade Commission (FTC). The FTC:  Cannot resolve individual problems for consumers  Can against a company if it sees a pattern of possible law violations

29. ASSESSMENT/ACTIVITY (CONT.) Delivering Justice Watch this Example Presented by the United States Postal Inspection Service “Identity Crisis”

30. Identity Theft

31. Have students respond to the following scenarios based on what they have learned. Bethany purchased a new pair of shoes from the Internet. What steps should she take to ensure her identity was protected while making the purchase? Bethany should have all of the details about the shoes before buying, make sure her purchase is made over a secure line stating “https” or “shttp”, she should use a credit card or escrow service, keep proof handy, and research the company to ensure they are reputable.

32. Have students respond to the following scenarios based on what they have learned. Dana went out to dinner and left her credit card there. The next day she called the restaurant and they said they didn’t have the card. What should she do? Dana should call and cancel her credit card immediately and follow up in writing; keep a record of all correspondence, file a police report, contact the three major credit bureaus, and file a complaint with the Federal Trade Commission.

33. Have students respond to the following scenarios based on what they have learned. Jacob has just finished writing bills. What steps should he take to ensure the bills reach their destination safely? Jacob should destroy all statements not needed and store the rest in a locked file and he should not leave statements lying around. He should deposit mail in a post office collection box or at the post office.

34. Have students respond to the following scenarios based on what they have learned. Sam purchased a bicycle on credit. When he received his credit card statement, he noticed several charges he did not make. What should he do? Keep receipts of purchases made with a credit card, file a complaint with the credit card company immediately (within 60 days), follow up with writing, keep a detailed record of correspondence, contact the credit bureaus, and contact the Federal Trade Commission.

35. ATM THEFTS In our first slide you see an individual who apparently is making a bank transaction at the ATM.

36. What he really is doing is placing a trap in the ATM machine to “capture” the next user card. Placing The Trap

37. Lookout Warning Altering the ATMs is a risky business, these individuals work in teams. The lookout warns of any possible eye witnesses / or of the next potential victim.

38. Here we see the next client using the ATM, after the trap has been set. He inserts his card and begins his transaction. The Victim

39. Springing The TRAP The ATM card is confiscated, and the customer is confused, asking himself, Why has my card been confiscated? However, here we see the cavalry coming to help, (¿HELP?).

40. Honest,Samaritan Offering HELP Here we see the thief pretending to help. What he is really doing is trying to gain the “chumps” PIN, now that he has captured his card.

41. Gaining Access To The PIN The good Samaritan convinces the “chump” He can recover the card,if he presses his PIN at the same time the Samaritan press “cancel” and “enter”.

42. Situation Hopeless, “They Leave” After several attempts the “chump”is convinced his card has been confiscated. The “chump” and the Samaritan leave the ATM.

43. Recovering The CARD Satisfied the area is clear, the thief returns to recover the confiscated card from his trap. He not only has the card, he also has the PIN the “chump” provided unknowingly.

44. The Escape In possession of the card and the PIN he leaves the ATM with $4000 from the “CHUMPS”acc ount.

45. THE TRAP The trap is made up of XRAY film, which is the preferred material by thieves; Simply because of the black color which is similar in appearance to the slot on the card reader.

46. Placing The TRAP The trap is then inserted into the ATM slot. Care is taken not to insert the entire film into the slot, the ends are folded and contain glue strips for better adhesion to the inner and outer surface of the slots.

47. INVISIBLE Once the ends are firmly glued and fixed to the slot, it is almost impossible to detect by unsuspecting clients.

48. ¿How Is Your Card Confiscated? Slits are cut into both sides of the trap, This prevents your card being returned prior to completing your transaction.

49. Retrieval Of Confiscated Card As soon as the “Chump” is gone, and they have your PIN, The thief can remove the glued trap, by grasping the folded tips, he simply pulls the trap out that has retained your card..

50. RECOMENDATIONS 1.-Once your card has been confiscated, observe the ATM slot and the card reader for any signs of tampering. Should you see the film tips glued to the slot, unglue, pull the trap out and recover your card. 2.- Report IMMEDIATELY to the BanK.

51. DISCLOSURE INFORMATION Provides full information about a financial institution’s policies, such as electronic funds transfer policies, lending policies, interest crediting, and compliance with banking regulations. These statements are required by law.

52. SCAM Fraudulent or deceptive schemes.

53. ASSESSMENT DVD – “Web of Deceit!”

54. SKIMMING & SCAMMING

55. PYRAMID SCHEME A type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to other people.

56. PONZI Closely related to a pyramid scheme but the promoter generally has no product to sell and pays no commission to investors who recruit new members.

57. AFFINITY FRAUD A name for a type of scam that targets members of a specific demographic. Perpetrators may attempt to relate to or exploit characteristics common to the demographic. Targeted groups can include the elderly, ethnic groups, and religions.

58. ASSESSMENT IDEA STANDARD 3 OBJECTIVE 4 Identify a type of fraud using a FTC publication or web site www.ftc.gov. Create a visual on this fraud and share your findings to the class.www.ftc.gov

59. Guard Your THERE IS NO FORGIVENESS WITH FINANCES