1. © 2008. Oklahoma State Department of Education. All rights reserved. 1 Beware! Consumer Fraud Standard 9. 1 Fraud and Identity Theft

2. Building Interest Building Interest Offers come to us everyday: Through the mail Over the telephone Through E-mail Over the Internet Ultimate goal of scammers: Get our money! 2© 2008. Oklahoma State Department of Education. All rights reserved.

3. Vocabulary Federal Trade Commission – A federal Agency that enforces consumer protection. Fraud – Someone who knowingly deceives you for their own personal gain. Identity Theft – Using a person’s name or personal information without the person’s permission to steal money or get other benefits. © 2008. Oklahoma State Department of Education. All rights reserved.3

4. Most common types of fraud Bait and switch Bankruptcy Fraud Confidence trick or confidence game Embezzlement False Advertising False Billing Forgery © 2008. Oklahoma State Department of Education. All rights reserved.4

5. Most common types of fraud Health fraud Identity theft Insurance fraud or false insurance claims Long firm Marriage Fraud Ponzi Scheme or Pyramid Scheme Security Fraud © 2008. Oklahoma State Department of Education. All rights reserved.5

6. Is Fraud a Crime? Yes, any form of fraud is a criminal act and anyone knowingly participating in it can be prosecuted. It is also a violation of civil law. A civil fraud generally means that someone intentionally set out to deceive another person for gain. 6© 2008. Oklahoma State Department of Education. All rights reserved.

7. Tips to avoid being a victim of fraud The greater the potential return, the greater the risk. Investments seldom exist without risk involved. Always get all the information in writing before you give any money. Never let your emotions interfere with your business affairs. © 2008. Oklahoma State Department of Education. All rights reserved.7

8. Tips to avoid being a victim of fraud Never invest what you cannot afford to lose. Legitimate offers will always be there tomorrow. Take time to do careful research. If an offer sounds too good to be true, it probably is. Do not send cash by mail, bank transfer, or messenger. © 2008. Oklahoma State Department of Education. All rights reserved.8

9. Protecting Yourself from Consumer Fraud The best guard against consumer fraud is awareness. Bottom line: If something seems too good to be true, it probably is! 9© 2008. Oklahoma State Department of Education. All rights reserved.

10. Steps to Take if Victimized The Federal Trade Commission recommends the following actions if you become a victim: Contact the Fraud Division of the three credit bureaus. Contact credit card companies or the issuers of any other cards that were affected. File a complaint with the Federal Trade Commission. Contact the your local police. Contact State Attorney General’s Office 10© 2008. Oklahoma State Department of Education. All rights reserved.

11. Steps to Take if Victimized In Oklahoma, the best place to start is by calling the Office of the Attorney General at 405- 521-3921 or 918-581-2885 11© 2008. Oklahoma State Department of Education. All rights reserved.

12. Earnings Earnings Consumer fraud has a major impact on consumers and on the overall economy of the United States. According the FTC survey on consumer fraud in 2004, people with moderate to low incomes and lower levels of education are more likely to be victims; however, anyone can become a victim. 12© 2008. Oklahoma State Department of Education. All rights reserved.

13. Earnings Earnings When it comes to your money and your personal information, trust only those people you know to be trustworthy. If you do become a victim, take immediate steps to contact law enforcement officials. 13© 2008. Oklahoma State Department of Education. All rights reserved.

14. Pop Tart!!!!! Pop Tart!!!!! Identify and describe three common types of fraud. Identify three things you can do to avoid becoming a fraud victim. What should you do if you suspect you are a victim of fraud? 14© 2008. Oklahoma State Department of Education. All rights reserved.

15. 15 Beware! Identity Theft Standard 9. 2 Fraud and Identity Theft

16. How do they do it? How do they do it? ID thieves use many methods: Dumpster Diving Skimming Phishing Changing Your Address Stealing Pretexting Hacking 16© 2008. Oklahoma State Department of Education. All rights reserved.

17. How do they do it? How do they do it? How can you protect yourself from ID theft? Monitor your billing statements and your bank statements each month. Check your credit report on a regular basis. Subscribe to one of several business services that will monitor your monthly payments on a regular basis. 17© 2008. Oklahoma State Department of Education. All rights reserved.

18. How to Protect Yourself from ID Theft How to Protect Yourself from ID Theft Safety measures you may want to consider: Use passwords on your credit card, bank and cell phone accounts. Put your personal information in a secure place. Only enter personal data on secure web sites. Shred all papers with your personal information before throwing them in the trash. 18© 2008. Oklahoma State Department of Education. All rights reserved.

19. How to Protect Yourself from ID Theft NEVER give out any personal information on the phone, through the mail, on the Internet, in an email or in person unless you are sure with whom you are dealing. Avoid cutting and pasting or clicking web links from emails, unless you are certain it is a valid link. Place your outgoing U.S. mail in a postal mail drop or take it to the post office. Safety measures you may want to consider: (continued) 19© 2008. Oklahoma State Department of Education. All rights reserved.

20. How to Protect Yourself from ID Theft Leave your Social Security Number card in a secure place. Be careful about giving out your Social Security number or using it as an ID number. Carry only the identification information and the credit/debit cards you actually need. Avoid responding to promotions. Safety measures you may want to consider: ( continued) 20© 2008. Oklahoma State Department of Education. All rights reserved.

21. How to Protect Yourself from ID Theft Keep your purse or billfold in a safe place at school and at work. Order a copy of your credit report from the three primary credit bureaus to monitor your credit history. Safety measures you may want to consider : (continued) 21© 2008. Oklahoma State Department of Education. All rights reserved.

22. Steps to Take if Victimized If you become the victim of a fraud or even suspect you might be, let your parents know and contact your local law enforcement officials immediately. 22© 2008. Oklahoma State Department of Education. All rights reserved.

23. Steps to Take if Victimized The Federal Trade Commission recommends the following actions if you become a victim: Contact the Fraud Division of the three credit bureaus. Contact credit card companies or the issuers of any other cards that were affected. File a complaint with the Federal Trade Commission. Contact the local police. Contact State Attorney General’s Office 23© 2008. Oklahoma State Department of Education. All rights reserved.