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Identity Theft - Identity Theft& Identity Fraud...

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Unformatted text preview: Identity Theft & Identity Fraud Definition Common ways to commit How to avoid What Are Identity Theft and Identity Fraud? "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. The short answer is that identity theft is a crime. Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. What Are Identity Theft and Identity Fraud? Unlike your fingerprints, which are unique to you and cannot be given to someone else for their use, your personal data - especially your Social Security number, your bank account or credit card number, your telephone calling card number, and other valuable identifying data - can be used. In many cases, a victim's losses may include not only out-of-pocket financial losses, but substantial additional financial costs associated with trying to restore his reputation in the community and correcting erroneous information for which the criminal is responsible. Data, Data Everywhere... Video surveillance E-commerce Customized video on-demand Video-conferencing Networked devices Data mining Biometrics Radio Frequency Identification (RFID) Location-Based Services (LBS) 4 In one notorious case of identity theft, the criminal, a convicted felon, not only incurred more than $100,000 of credit card debt, obtained a federal home loan, and bought homes, motorcycles, and handguns in the victim's name, but called his victim to taunt him -- saying that he could continue to pose as the victim for as long as he wanted because identity theft was not a federal crime at that time -- before filing for bankruptcy, also in the victim's name. While the victim and his wife spent more than four years and more than $15,000 of their own money to restore their credit and reputation, the criminal served a brief sentence for making a false statement to procure a firearm, but made no restitution to his victim for any of the harm he had caused. This case, and others like it, prompted Congress in 1998 to create a new federal offense of identity theft. What Are Identity Theft and Identity Fraud? Identity Theft FTC Complaints: 2000: 31,000 2001: 86,000 2002: 162,000 Top consumer fraud complaint in 2002 30% growth predicted going forward Estimated 9.9 million victims in 2002 Average impact: $1500 175 hours of clean up credit disruptions Cost to consumers = $5 billion Cost to industry = $48 billion 42% of complaints involve credit card fraud Video free credit report http://youtube.com/watch?v=MqSc92uMAbw Most Common Ways To Commit Identity Theft shoulder surfing listen in on your conversation dumpster diving "preapproved" credit cards (activate the card only from his or her home telephone number but this is not yet a universal practice) Spam Google a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real name. If the criminal takes steps to ensure that bills for the falsely obtained credit cards, or bank statements showing the unauthorized withdrawals, are sent to an address other than the victim's, the victim may not become aware of what is happing until the criminal has already inflicted substantial damage on the victim's assets, credit, and reputation. Identity Theft: The New Way To Rob a Bank http://youtube.com/watch?v=t3olh5mVl7U&featu ID Theft Websites http://www.usdoj.gov/criminal/fraud/websites/idtheft.html http://www.bbbonline.org/IDtheft/ http://www.ftc.gov/bcp/edu/microsites/idtheft/ Federal Crimes: ID Theft Laws 1998 Congress passed Identity Theft & Assumption Deterrence Act of 1998, 18 U.S.C. 1028 "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law" Identity Theft Penalty Enhancement Act Increases penalties for aggravated identity theft, prescribes minimum prison sentences Most states have laws, vary widely http://www.ftc.gov/bcp/edu/microsites/idtheft/lawenforcement/laws.html 18 U.S.C. 1028(a)(7). This offense, in most circumstances, carries a maximum term of 15 years' imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense. Schemes to commit identity theft or fraud may also involve violations of other statutes such as identification fraud (18 U.S.C. 1028), credit card fraud (18 U.S.C. 1029), computer fraud (18 U.S.C. 1030), mail fraud (18 U.S.C. 1341), wire fraud (18 U.S.C. 1343), or financial institution fraud (18 U.S.C. 1344). Each of these federal offenses are felonies that carry substantial penalties - in some cases, as high as 30 years' imprisonment, fines, and criminal forfeiture. recent cases Central District of California. A woman pleaded guilty to federal charges of using a stolen Social Security number to obtain thousands of dollars in credit and then filing for bankruptcy in the name of her victim. More recently, a man was indicted, pleaded guilty to federal charges and was sentenced to 27 months' imprisonment for obtaining private bank account information about an insurance company's policyholders and using that information to deposit $764,000 in counterfeit Southern District of Florida. A woman was indicted and pleaded guilty to federal charges involving her obtaining a fraudulent driver's license in the name of the victim, using the license to withdraw more than $13,000 from the victim's bank account, and obtaining five department store credit cards in the victim's name and charging approximately $4,000 on those cards. ID Theft & Data Breach Data Theft Enables ID Theft Insecure Personally Identifiable Information (PII) susceptible to abuse Key PI: name, ssn, addresses, birthdate, mothers maiden name, various acct#s & PINs, what else? CA's SB.1386 1st & most significant 30 states since passed laws requiring individual notifice of security breaches http://www.privacyrights.org/ar/ChronDataBreaches.htm CA Leadership in Privacy Law Security Breach Disclosure SB 1386 Effective 7.1.03 ID Theft applicable to govt AND business Applies to "persons" conducting business in CA Covers PII "linked" to ssn, drivers lic #, acct#, security codes (e.g., pin, p/w) Unencrypted data raises risk exposure CA's SB 1386 What: any breach of securityunauthorized acquisition of computer data triggers duty To Whom: affected CA resident When: "most expedient time possible" & "without unreasonable delay" How: written, electronic If cost exceeds $250,000 or to over 500,000 persons, then: email, conspicuous website & press Remedies: damages, injunction, but not security fix, market pressures enabled Fair & Accurate Credit Transactions Act: FACTA Effective 1.1.04 ID Theft Protections, Quicker Resolution of Disputed History & New Business Models Free Credit Report, Regional Roll Out 9.05 Notice to Consumers Before Adverse Report to Credit Bureau Creditor Investigation before Invoking Collector Requires FFR Consumer Report Disposal Security/Data Breach Sites http://www.ftc.gov/bcp/edu/microsites/idtheft/business/data-brea EFF.org EPIC.org Litany http://www.privacyrights.org/ar/ChronDataBreaches.htm http://www.idtheftcenter.org/breaches.pdf U.S. v. Gibson (W.D.Wash. 8.19.04) No. CR04-0374RSM 2004 U.S. Dist. LEXIS 20445 1st HIPAA Conviction, plea bargain: 16 mos prison & $15,000 restitution ID Theft by technician of leukemia patient during 1st bone marrow transplant @ Seattle Cancer Care Alliance on 9.03 Despite U.S. Sectoral Approach, Privacy Sectors Frequently Linked children, video rentals, Privacy rights limited to "sectors" E.g., financial, healthcare, telecommunications, online, Healthcare workers enabled to ID & abuse vulnerability from financial information Identity Theft Prevention What Can You Do to Protect Yourself? http://youtube.com/watch?v=uFcRMrsZsJU CNBC's Big Brother, Big Business http://www.cnbcbigbrother.com/ http://video.google.com/videoplay?docid=6061213358499552766 The rapid advance of technology allows companies to monitor our every move and record our most private personal information. Driving habits are being recorded; employees are monitored, shoppers and diners are observed and analyzed; internet searches are saved and used as evidence in court. It is big business that collects most of the data about us. But increasingly, it is the government that's using it. BIG BROTHER, BIG BUSINESS takes an enlightening and sometimes disturbing look at how the growth of the information society may be eroding the freedoms many people take for granted. 23 ...
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