identity theft marcia l. depaula, esquire

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IDENTITY THEFT

Marcia L. DePaula, Esquire

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IDENTITY THEFTA fraud committed or attempted using the identifying information of another person without authority.

16 C.F.R. § 603.2

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Scope of the Problem

Scope of the Problem

Victims

27.3 million (2000-2005)

9.3 million (estimated 2005)

Under-reported (2005)

246,570 (filed with FTC)

7,600 (PA)

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Scope of the ProblemScope of the Problem

Total fraud amount

$53.2 billion (2003)

$54.4 billion (2005)

Discovery of theft:52% by monitoring of accounts26% alerted by credit card

company/bank 8% alerted when turned down for

credit

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Demographics Demographics

Average age of victim – 42 years old

Top locations: CA, NY, TX, FL

No relationship with suspect – 88%

Discovery of ID Theft – 15 months

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TYPES OF FRAUD

TYPES OF FRAUD

Credit Card Use Phone or Utility Service Bank Accounts Employment Related Government Documents/ Benefits/

Loans Other

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How Information is Obtained, Part 1


68.2% of stolen information was obtained off-line

• Stolen mail or wallets• Diverted/Forged change of address

forms• Credit reports• Employment records• From consumers by thieves posing

as legitimate businesses• Purchases from questionable sources

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PretextingPretexting

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11.6% of personal information was obtained “online”

Spyware 5.2%Online Transaction 2.5%Virus/hacker 2.2%Phishing 1.7%

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Phishing

A fraudulent reproduction of an official e-mail or website designed to fool recipients into divulging personal financial data such as bank account numbers.

Pending H.B. 2292 of 2005 – Criminal offense for a person or entity to misrepresent itself as a legitimate business in e-mail or on the Internet in an attempt to solicit private financial or personal information from consumers. 6/28/06

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Skimming

Theft of credit or debit card numbers or access numbers through use of a data storage device.

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Breaches Breaches 2/15/2005 ChoicePoint (Alpharetta, GA) 145,000

Bogus accounts established by ID thieves

2/25/2005 Bank of America (Charlotte, NC) 1,200,000Lost backup tape

3/10/2005 LexisNexis, (Dayton, OH) 32,000Passwords compromised

6/6/2005 CardSystems Hacking 40,000,000

5/2006 Dept. of Veterans Affairs 26,500,000Data stolen from employee’s home

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How Information is Used:How Information is Used:

Open new credit card account Establish phone or utility

service Open bank account Loans

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How Victims Learn of Identity Theft:

How Victims Learn of Identity Theft:

Denial of credit Contact by credit provider Contact by collection

agency Contact by police Arrest by police

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Legal AuthorityLegal Authority

Identity Theft & Assumption Deterrence Act of 1998, 18 U.S.C.A. §1028

Pennsylvania Identity Theft 18 Pa. C.S.A. §4120 (criminal)42 Pa. C.S.A. §8315 (civil)

Possesses or uses identifying information of another person without the consent of that other person to further any unlawful purpose.

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CRIMINAL- 18 Pa. C.S.A. §4120

CRIMINAL- 18 Pa. C.S.A. §4120

Possesses or uses, through any means, identifying information of another personwithout the consent of that other person to further any unlawful purpose.

Separate Offenses – each time person possesses or uses identifying information, but can aggregate to determine the grade of the offense.

Use of police report as prima facie evidence that ID information was used without person’s consent.

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CriminalCriminalGrading First Offense

Misdemeanor 1st degree if less than $2,000.00 Felony Third Degree, if more than $2,000.00

Third or Subsequent Offense Felony of 2nd degree, regardless of value

Part of a Criminal Conspiracy Regardless of amount—F2

Enhancement for victim over 60 years or care-dependent

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CIVIL- 42 Pa. C.S.A. §8315CIVIL- 42 Pa. C.S.A. §8315

Based on “ID Theft” as defined in criminal statute

Actual damages or $500, whichever is greater• Reasonable attorneys fees• Loss of money, reputation or property• Any additional relief the court deems necessary

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Breach of Personal Identification Notification Act

73 P.S. §2301 et seq.

Breach of Personal Identification Notification Act

73 P.S. §2301 et seq.Any entity that maintains, stores or manages computerized data that included personal information shall provide notice of the breach of security to residents of the Commonwealth. Effective June 20, 2006

Covers “unencrypted and unredacted personal information”

Notice “without unreasonable delay” to consumers

Enforcement by the Office of the Attorney General under the Unfair Trade Practices and Consumer Protection Law

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Notice to ConsumersNotice to Consumers

1. Written notice 2. Telephonic notice3. Email4. Substitute notice:

If cost of notice would exceed $100,000; or

Affected class is over 175,000; or Entity does not have sufficient

contact info

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SOCIAL SECURITY NUMBERSSenate Bill 601 (Adopted 6/29/2006 ; Effective 180 days)

SOCIAL SECURITY NUMBERSSenate Bill 601 (Adopted 6/29/2006 ; Effective 180 days)

No person, entity, state agency or political subdivision will do any of the following:

Publicly post or display any person’s social security number

Print an individual’s social security number on any card required for the person to access products or services provided by the entity

Require an individual to transmit his social security number via the internet unless encrypted or the connection is secure

Require an individual to use his social security number to access an internet website unless a password or other authentication device is also required

Print an individual’s social security number on any materials mailed to the individual, unless required by State or Federal law

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Fair and Accurate

Credit Transactions Act (FACTA)

15 U.S.C.A. §1681

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Requires merchants to truncate credit and debit card numbers on receipts for purchases.

Requires industry standards governing the “accuracy and integrity” of information furnished to credit reporting agencies.

Allows consumers to place fraud alerts on their credit files and block information caused by identity theft or fraud.

Entitles consumers to one free credit report annually. Begins September, 2005 for PA residents

Website: www.annualcreditreport.com

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BUSINESSES – 15 U.S.C. §1681g(e)(6)

BUSINESSES – 15 U.S.C. §1681g(e)(6)

Provide transaction information to victim

Within 30 days of written request

No charge to consumers

Confirm requester is a victim Proof of identity Police report & completed affidavit

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Business may decline to provide information where:

Business may decline to provide information where:

No “Good Faith Belief” of Identity

Based upon a misrepresentation of fact

Internet navigational data or similar info about a person’s visit to a website

Prohibited by law

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DEBT COLLECTORS & CREDITORS –

15 U.S.C. §1681t(b)(5)(F)

DEBT COLLECTORS & CREDITORS –

15 U.S.C. §1681t(b)(5)(F)

Prohibited from selling or transferring “ID Theft debt”

Notify creditor and victim of a fraudulent debt or debt incurred as a result of ID Theft

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FACTA DISPOSAL RULE -16 C.F.R. §682.1 ET SEQ.


Any person who maintains or otherwise possesses consumer information for a business purpose must properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.

Effective date – June 1, 2005

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“Person”

Any person over which the FTC has jurisdiction, that for a business purpose, maintains or possesses consumer information

Lenders, consumer reporting agencies, record management, landlords, utility companies

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“Consumer Information”

Any record about an individual, whether in paper, electronic, or other form, that is a consumer report or derived from a consumer report or a compilation of such records

Social Security Number, Driver’s License, Telephone Number

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“Disposal”

Discarding or abandonment of consumer information

Sale, donation, or transfer of any medium including computer equipment, upon which consumer information is stored

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“Reasonable Measures”

Information cannot be read or reconstructed after disposal

Shredding, burning, and pulverizing of documents

Destruction or erasure of electronic media

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TIPS FOR ORGANIZING YOUR CASE

TIPS FOR ORGANIZING YOUR CASE

Follow up in writing with all contacts you made.

Keep copies of all correspondence/forms.

Write down the name, date and substance of any conversations.

Keep originals of supporting documentation.

Set up a filing system. Keep old files, even if you

believe your case is resolved.

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Resolving Credit Card DisputesResolving Credit Card Disputes

Provide documentation to creditor (police report + ID Theft affidavit)

Insist on a letter from the creditor(closing the disputed account + discharging fraudulent debts)

Dispute in writing unauthorized charges on credit card within 60 days

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EQUIFAX – 1-800-525-6285 EXPERIAN – 1-888-397-3742 TRANS UNION – 1-800-680-7289

3. Close accounts

4. Call the FTC’s ID Theft Clearinghouse 1.877.438.4338

www.ftc.gov/opa/2002/02/idtheft.htm

Remedial Actions by VictimsRemedial Actions by Victims

1. File Police Report2. Contact fraud departments of credit

bureaus

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Protecting yourselfProtecting yourself Never provide personal or financial

information to those you don’t know, especially unsolicited telephone or Internet requests.

Check your monthly bills and statements for questionable charges.

Don’t have your bank pin number written down on something you carry in your wallet, purse or briefcase.

1-888-5-OPT-OUT (1-888-567-8688) To opt-out of

pre-approved credit offers

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Key ContactsKey Contacts

Bureau of Consumer Protection: 1-800-441-2555

Social Security Administration: 1-800-269-0271

Federal Trade Commission: 1-877-ID THEFT

www.consumer.gov/idtheft/pdf/affidavit