Identity Theft 101

 IDENTITY THEFT 101

“But he that filches from me my good name/Robs me of that which not enriches him/And makes me poor indeed.”

-Shakespeare, Othello, act iii. Sc. 3.

                                        

 

What is Identity Theft?

Identity Theft and Identity Fraud are defined as terms used “to refer to all types of crime in which someone wrongfully obtains another person’s personal data in some way that involves fraud or deception, typically for economic gain” (www.justice.gov, 2015). Identity Theft can be something as little as unauthorized persons taking funds out of your bank account or in worst cases taking over your identity altogether and running up debts, committing crimes, etc. According to the U.S. Department of Justice, the average number of Americans who fall victim to identity fraud is 11.5 million annually and the average financial loss is $5,000.

Before Congress created the Identity Theft and Assumption Deterrence Act of 1998, identity theft was not considered a federal crime. In one case prior to this Act, a thief incurred more than $100,000 of credit card debt, obtained a home loan, and bought homes, motorcycles and hand guns in the victim’s name. The thief even called the victim to taunt him that they could continue to pose as him as long as they wanted because identity theft was not considered a federal crime. In the court rulings, the thief was not made to pay any restitution to the victim for any of the harm he had caused. This case and others like it prompted the creation of the Identity Theft Act in 1998.

Warning signs that you are a victim of identity theft

• Notices from the IRS
• Strange withdrawals from your bank account
• Receiving bills that are not yours
• Debt Collector calls regarding debts you don’t owe 

What to do immediately if you are a victim of fraud

• Call the companies where fraud occurred
  -This would include discontinuing a compromised credit card, freezing a bank account, etc.
• Place fraud alert on credit reports and get a copy of your report to review
• Report identity theft to the Federal Trade Commission (FTC)
• File a police report with the local department

Some things you can do to keep your information safe and secure

Keep your information safe OFFLINE

• Shred any old receipts, credit card offers, bank statements, expired credit cards
  -Criminals will try to open up credit cards with the offers you tossed out and failed to shred
• Destroy labels on old prescription bottles
• If you are going on vacation, request a vacation hold on your mail
• Lock any financial documents and important records in a safe place
  

Secure Social Security Number

• Don’t be afraid to question someone who says they “need” your SS#
• You may ask these people why they need it, how it will be used, how they will protect it, etc.
  

Keep your information safe ONLINE

• Know who you are sharing your information with
• Never give out any personal information through the phone, mail or internet unless you have initiated the contact or know for certain who you are dealing with
• When disposing of a computer, make sure to get rid of all personal information that it stores (wipe the hard drive)
• When disposing of a mobile device, check how to permanently delete any information such as the contact list, calls, messages, etc.
   
   
                                                                                                    
                                                                                                                                                                                          _{Copyright, Douglas Adams}

Encrypt Data/Secure Devices  

• Keep your internet browsers secure. A lock icon on the status bar means your information will be safe when it is transmitted.
  
• Always use strong passwords and different passwords for each website. Be sure to change them from time to time.
• Don’t overshare on social networking sites (such as Facebook). This can cause an identity thief to take any personal information you share and use it to answer
  “challenge questions” on your online accounts to gain access to more personal information and/or money.
• Lock up your laptop or desktop with a password and not an automatic log in feature
• Avoid Phishing Emails: Do not open files, click on links, or download any programs sent by a suspicious source
  -“Phishing”-the attempt to acquire sensitive information often for malicious reasons, by masquerading a trustworthy entity in an electronic communication
  -For example: some of these emails can try to threaten you to click on a link or your bank account will be locked
• Use security/antivirus/antispyware software

 

Routine actions to protect your identity

• Review your credit card and bank statements carefully and often
• Review your credit reports at least once a year
   

There are many things you can do to protect your own identity, but you must also make sure your custodian or bank are doing all they can to protect your information as well.

 

Our primary custodian, Charles Schwab & Co., Inc. implements a security program called SchwabSafe to protect your account information from unauthorized access. They display your private information securely by:

• Going beyond login ID for authentication. Schwab uses multiple layers and factors beyond login ID and password before allowing access to your account. If they suspect unauthorized account activity, it will ask for additional authentication before permitting access to your account.
   
• Using advanced encryption technology. They use advanced technology, including 128-bit Secure Sockets Layer (SSL3) encryption. This allows you to communicate more safely with Schwab.com.
   
• Using the highest level of secure certificates. Schwab features the highest level of Extended Validation (EV) certificate, technology that allows you to verify you are on Schwab.com. Before logging in, look for the green web address bar on Schwab.com to verify our EV certificate if using a browser that supports EV. When you see the green bar, you'll know that you are protected by SchwabSafe.
   

• Offering you a free token. You can make every login to Schwab.com more secure by using a token, a small device that creates a six-digit number that serves as an additional password every time you log in. A token, in essence, gives you a new numeric password each time you log in. To order a free token, call Schwab at 1-800-435-4000.

 

 

 

They monitor for unauthorized account activity around the clock by:

• Scanning for suspicious behavior. Schwab uses pattern analysis and other advanced monitoring systems to detect suspicious account activity and deter unauthorized access. SchwabSafe fraud teams scrutinize activity on Schwab.com, looking for suspicious behavior. This allows them to spot attempted intrusions and act on them quickly.
  

 

“Bad news is that we are all vulnerable to identity theft, good news is that you can protect yourself.”

 

 

FBI. FBI, 17 Mar. 2010. Web. 7 Aug. 2015. <https://www.fbi.gov/about-us/investigate/cyber/identity_theft>.

 

"Consumer Information." Identity Theft. Web. 7 Aug. 2015. <http://www.consumer.ftc.gov/features/feature-0014-identity-theft>.

 

"Identity Theft." Identity Theft. Web. 7 Aug. 2015. <http://www.justice.gov/criminal-fraud/identity-theft/identity-theft-and-identity-fraud>.

 

"Client Learning Center." Safeguard Online Information. Web. 8 Aug. 2015. <http://content.schwab.com/learningcenter/safeguard_online_information.html>.