IDENTITY THEFT - Financial Aid

Report
Budgeting for College:
IDENTITY THEFT
Andrea Morgan, Gary Moore, and Melissa Greenslade
Program Coordinators
Office of Financial Aid
University of Arkansas
TEST YOUR IDENTITY IQ…
1.
2.
3.
4.
5.
6.
Identity theft issues are resolved quickly
once reported to the authorities.
Placing orders over the Internet can increase
your risk of Identity Theft.
Identity theft can ruin your credit.
26% of teens know someone that something
bad has happened to because of
information or photos posted on-line.
Most thefts occur through electronic
exchanges.
50% of identity thefts involve family or
friends but only 6% of people believe thefts
by family or friends to be likely.
1.
False
2.
True
3.
4.
True
True
5.
False
6.
True
IDENTITY THEFT STATISTICS

One in four people are affected by identity theft
That’s 10 million American’s each year!!
34% of identity theft victims are college
students
 The average out-of-pocket expense for victims
is $631
 It takes an average of 21 hours to clean up
identity theft

WHAT IS IDENTITY THEFT?

Identity theft occurs when an unauthorized
person uses your personal information, like
your name, Social Security Number, or credit
card number, without your permission.
HOW DO THIEVES STEAL AN IDENTITY?
Dumpster Diving
 Skimming
 Phishing
 Pharming
 Changing Your Address
 Old-Fashioned Stealing
 Computer Hacking

HOW DO THIEVES USE YOUR IDENTITY?

Credit Card Fraud


Bank/Finance Fraud


Open new service in your name; get a job using your SSN; rent a house
or get medical services in your name;
Government Documents Fraud


Create counterfeit checks; open a bank account in your name and write
bad checks; clone your ATM or debit card; take out a loan in your name
Identity Cloning


Open a new credit card--delinquent accounts appear on YOUR credit
report; change the address on your bills; run up charges on your account
Get a driver’s license or ID in your name but with their picture; use your
name and SSN to get government benefits; file a fraudulent tax return or
FAFSA
Criminal Identity Theft

Give your personal information to police or when committing a crime
IT’S NOT ALWAYS RANDOM

Information can be stolen by
 Relatives
 Friends
 Hospitals
 Doctor’s
 Schools
Offices
FINDING OUT IF YOU ARE A VICTIM

85% of identity theft victims find out that they
are victims in a negative way
 Contact
with collection agencies
 Being turned down for credit

Only 15% of victims are alerted to identity theft
due to a proactive action taken by a business
SIGNS OF IDENTITY THEFT
Charges on your account that you didn’t make
 Suspicious activity on your credit report

Accounts you didn’t open
 Fraudulent or inaccurate personal information appears
like SSN, address, name, or employers

Failing to receive bills or other mail
 Receiving credit cards you didn’t apply for
 Being denied credit, or being offered less
favorable terms for no apparent reason
 Getting calls or letters from debt collectors about
merchandise or services you didn’t buy

DEFENDING AGAINST IDENTITY THEFT

If you are a victim of identity theft, take the
following actions as soon as possible and keep
records of all communications:
 Notify
and close the accounts you know, or believe,
have been tampered with or opened fraudulently
and dispute any unauthorized transactions
 File a complaint with the Federal Trade Commission
(FTC) at www.ftc.gov/idtheft or 1-877-ID-THEFT
 File an Identity Theft Report with the police
 Place a Fraud Alert on your Credit Reports (all 3)
 Monitor your financial records for several months
after
IDENTITY THEFT REPORT
A type of police report with specific details
relating to identity theft
 When filed, an Identity Theft Report will
permanently block fraudulent information from
appearing on your credit report
 Allows you to place an extended fraud alert on
your credit report

HOW TO USE AN IDENTITY THEFT REPORT
File your report with a local, state, or federal
law enforcement agency
 Send the businesses involved and the credit
reporting companies a copy of your Identity
Theft Report

 Mail
using certified mail, return receipt requested
 The companies then have 15 days from receiving
your report to request more information
FRAUD ALERTS
Initial Fraud Alert
 Extended Fraud Alert

INITIAL FRAUD ALERT

Stays on your credit report for at least 90 days
 File
if you believe you may have been the victim of
identity theft
 Creditors must use “reasonable policies and
procedures” to verify your identity before issuing
credit in your name
 Entitles you to one free credit report from each
bureau
EXTENDED FRAUD ALERT

Stays on your credit report for 7
years
 File
if you have been the victim of
Identity theft and you can provide a
copy of the Identity Theft Report
 Potential creditors must actually
contact you or meet with you in person
before they issue credit
 Entitles you to two free credit reports
per year
 Removes your name from marketing
lists for 5 years
A CAVEAT ABOUT FRAUD ALERTS
Fraud alerts will not protect you from a thief
using your existing credit cards or other
accounts
 They will not protect you from a thief opening
an account in your name that does not require
a credit check
 It won’t stop already ongoing identity theft

CREDIT FREEZE
Most states have the option to put a Credit
Freeze on your credit report
 Credit Freeze laws vary by state and there may
be a fee
 This lets you restrict access to your credit
report (i.e. for opening new accounts)
 Can be temporarily lifted if you need to let
someone check your credit report

CREDIT MONITORING
Multiple companies offer this service
 Provide updates to customers including
information about credit checks and new accounts
 Receive immediate notification about any
suspicious activity on your credit report
 There are multiple types of monitoring available



Credit reports, public records, credit cards, social
security
Fees can vary from $5-17
CREDIT MONITORING CONT’D…

If you are considering one of these services,
make sure you understand what you are getting
 Some
only monitor one of the credit reporting
companies
 Check the Better Business Bureau (BBB), a
consumer protection agency (federal, state, or
local), and your state Attorney General’s Office to
see if they have any complaints on file
IDENTITY THEFT INSURANCE
Identity Theft Insurance won’t deter thieves,
but it can, in certain circumstances, minimize
losses if identity theft occurs
 Think about the potential losses vs. coverage
available and deductible required
 Can often only guide you (as opposed to doing
the work) in order to clear your name

PROTECT YOUR: MAIL/DOCUMENTS
Routinely monitor your financial accounts, billing
statements, and your credit report
 Opt out of pre-approved credit card offers
(optoutprescreen.com or 888-567-8688)
 Use a locked mailbox and stop mail when you are
on vacation.
 Send important mail from the PO or a USPS
mailbox vs. your home mailbox
 Store info in secure locations
 Shred paper documents and digital info

PROTECT YOUR: ONLINE IDENTITY







Never share info if YOU didn’t initiate the transaction
Use credit cards vs. debit cards on-line
Keep PINs and passwords difficult and to yourself and
use different passwords for all Web accounts
Use spyware, anti-phishing filters, and anti-virus
programs and update regularly
Be aware of the security of the network you are using;
use secure websites (https) and review a site’s security
page for current alerts and steps to take if you become a
victim
Be aware of the information you are posting online on
Facebook, on blogs, etc.
Don’t accept “friend” requests from people you don’t
know.
PROTECT YOURSELF, IN GENERAL

Protect your property and information in general

SS card, seldom used credit cards, checkbook,
purse/wallet, computer, cell phone
Don’t think that “See I.D.” will stop criminals from
using a stolen card
 Be suspicious of anyone who asks for money
 Verify circumstances independently—not through
the medium requested
 Keep private in public



Documents, cell phone use, on-line
Be aware and on guard
CREDIT REPORTS
www.annualcreditreport.com
 You are entitled to a free credit report from each of
the 3 credit reporting agencies once every 12
months
 Equifax: 1-800-685-1111



Experian: 1-888-397-3742


www.equifax.com
www.experian.com
TransUnion: 1-800-916-8800

www.transunion.com
IDENTITY THEFT RESOURCES
www.ftc.gov (detailed info to help deter, detect,
and defend)
 www.privacyrights.org (Consumer info and
advocacy)
 www.fraud.org (help to avoid and defend)
 www.idtheftcenter.org (understanding and
prevention of identity theft)
 http://security.uark.edu/

BEFORE YOU GO…
Please complete and submit your evaluation
forms
 PowerPoint presentation will be posted on our
website

THANK YOU!

Contact Information:
 Office
of Financial Aid; Andrea, Gary, and Melissa
 Campus location: 114 Silas Hunt Hall
 Phone: 479-575-3806
 Fax: 479-575-7790
 Website: http://finaid.uark.edu/
 And find us on Facebook at University of Arkansas
Financial Aid!

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