1. Consumer Economics Chapter 11
The Internet, Technology, and Identity Theft
Copyright©2009 Taylor & Francis Group, an informa business

2. Learning Objectives
Discuss the role of the Internet, technology, and technical disruption on consumption
Explain the environmental impact of the Internet
Define identity theft, biometrics, and privacy protection
Describe how to do self-background checks
Discuss the federal agencies involved in resolving identity theft
List deceptions occurring online in regard to charitable giving

3. Introduction Emphasizes growing consumer and privacy issues
Explores technical disruptions
How consumers can protect themselves from identity theft

4. The Internet: Consumption Patterns
Common complaints about online shopping
Internet use is based on several factors
Consumers use the Internet for several tasks
As one source of information, the Internet is especially important
The Internet is a major force in the worldwide economy

5. Search Engines There are at least 10 major search engines
Web search engines are software programs
They compile information and make it available
Search engines are a profitable source of advertising revenue

6. Typical Online Auction Categories
Smartphones and tablets
High-end clothing and accessories
Art and musical instruments
Sports and fitness equipment
Antiques and collectibles
Home furnishings and electronics
Travel packages/hotels
Cars

7. Security and Trust
The marketspace – buying and selling on the Internet
Trust is needed in the process, fairness, and institutions
Privacy is easily compromised
Many federal regulations address privacy issues
Benefits of shopping include 24/7, comparison shopping, and safety if good practices are followed

8. Children as Online Consumers
FTC specifically protects children online
Children are heavy consumers of specific products
Parents must partner with children as consumers to protect them

9. Environmental Impact of the Internet
The Internet has both positive and negative influences on the environment
The Internet saves paper
The Internet uses electricity
Reduces need for warehouses and excess transportation

10. Biometrics Using one’s unique physical traits for ID
Although spreading, raises privacy issues

11. Identity Theft and Privacy Protection
The Internet increases identity theft
The Internet increases threats to privacy
Many Federal statutes address these issues

12. Identity Theft: Methods and Protections
Watch credit card statements
Guard checkbooks, pay stubs, credit card receipts, credit & ATM cards, driver’s licenses, and health insurance cards.
Use difficult passwords
Secure personal information at work
Update virus protection regularly
Never click on hyperlinks from strangers
Log off computers when finished
Use post office for mailing
Use a “wipe” program to protect personal information on the computer
Copyright©2009 Taylor & Francis Group, an informa business

13. Self-Background Checks
More and more organizations are using background checks
Use Google to check yourself
Use Experian, TransUnion, or Equifax to monitor your credit score and identity safety

14. Recourse for Victims of Identity Theft
Contact your financial institutions
Contact the local police
Contact fraud departments of the three credit reporting bureaus
File a complaint with the FTC. This can be done online

15. Charities Many charities use the Internet to solicit donations
Confirm the genuineness of the charity before donating
Evaluate how efficiently the charity spends its money
Ask how the money is spent

16. Chapter Summary Technical disruption is changing the marketspace
Consumer behavior online is different from offline
Opportunities for identity theft and privacy invasion have multiplied
Consumers must use information wisely to protect themselves from identity theft