Financial Identity Theft

When a criminal uses personal information of a victim for financial gain, Financial Identity Theft occurs.  This can happen when the Thief:

• Opens a Credit Card under the Victim's name and makes unauthorized charges.
• Opens Loans under the Victim's name.
• Writes checks under the Victim's name and/or Account Number.
• Utilizes personal information of the Victim to Access and/or Transfer funds.
• Other included in Financial Identity Theft Types are:
  o Purchasing an Automobile
  o Receiving a Home Mortgage under another's name.

When Financial Identity Theft occurs, thieves often prey upon the fears of their victims.  The thief may contact the victim describing their institution's policy, state special needs of the victim's account or discuss compliance issues to glean personal information.

This type of Identity Theft always includes a third party institution, such as a lender, bank or credit card issuer.

Financial Identity Theft Risks
Risks of the consumer's that have fallen victim to Financial Identity Theft often extend beyond their liability protection.  They are often unfair, frustrating and time-consuming.  Some grievous consequences may include:

• Credit History Marks
• Bill Contesting
• Time Spent Fixing of Credit Report Issues
• Credit/ Loan Denial for Months or Even Years
• Continual Efforts and Long Hours to Clear Fraudulent Charges

Financial Identity Theft Protection by the GLB
Gramm Leach-Bliley (GLB) applies to all companies that are financial institutions, or businesses that provide financial services or products for personal, family, or household use.

The Safeguards Rule is directed at protecting the privacy of consumers as financial institutions merge - specifically banking, brokerage, and insurance divisions.  Compliance is set in motion to control how the business is handling personal information and to minimize risk.  However, compliance is mandatory by financial and non-financial companies who receive Financial Information.

To ensure that your business is GLB compliant, contact our CITRMS Professionals.

Types of Financial Identity Theft
Bank Identity Theft
Bank ID Theft occurs when a thief accesses or withdrawals funds from a victim's bank account.

Banks are one institution that does not make it easy on Bank Identity Theft Victims - if you do not inform them that a thief has taken over your account within 60 days!  If you believe that your banking account information was lost or stolen, inform them immediately.

• Check your Bank Account Statement for unexplained/unwarranted activity.
• Make sure your bill is arriving on-time at the same time every month.
• Shred all financial documents!

Credit Card Identity Theft
This type of ID Theft occurs when a thief accesses your account.

This can happen by the thief stealing your physical card, copying the details and purchasing online or they may steal your PIN when you have not noticed.  Ways to reduce your risk of Credit Card ID Theft include:

• Lock Credit Cards at Home or Work.
• Stop "pre-approved" credit offers from arriving at your address.
• Carry only the most necessary Credit Cards in your wallet.
• Do not write your PIN on the back of your cards.
• Review Credit Card statements weekly and ONLINE.

Insurance Identity Theft (Insurance Fraud)
Insurance Identity Theft is the intentional misrepresentation to an insurer for financial gain.  This is an expensive type of ID Theft, estimated to cost $27.6 Billion a year in loss and may include:

• Unemployment Insurance Identity Theft
• Automotive Insurance Identity Theft

Senior Identity Theft
The elderly and seniors are a prime culprit for Identity Thieves for several reasons.

According to the FTC, 20 percent of Identity Theft Victims are seniors!
75 percent of private wealth is held by individuals 50 years or older.  What makes seniors an easy target?  Some reasons include:

• They have Well Established Credit
• Seniors generally carry Medicare Cards - that contain their SSN (Social Security Number)!
• They often have an unlocked or accessible mailbox.

Infant Identity Theft
When a thief steals the identity of a newborn infant, he will use the full name and SSN plus the parent's names - including mother's maiden name - to confirm the identity!  Depending on the situation, it may not even be necessary for the thief to obtain the Social Security Number of the infant. 

Approximately 10 percent of Identity Theft cases are Infants or Minors.  Almost 70 percent of those cases include theft from a parent - often their credit is ruined and they turn to their children for a solution!  Factors involved in Child or Infant Identity Theft include:

• Credit Reports - Infants to not have one!  If anything suspicious turns up, investigate with the Credit Bureaus.
• Social Security Numbers (SSN) - Institutions and clinics use this number for identification and not all of them protect this information well.  This info should be kept in a secure location.
• Age - This is not a verifiable factor for thieves to open an account in the infant's name - they may easily change the actual age of the child and a credit report will be begun.

Credit Identity Theft
Part of Credit Application Fraud, Credit Identity Theft occurs when a thief opens a new credit account or charges an existing account under the victim's name.  A thief will steal the SSN, Name and other personal identification of a victim and gets away with the steal until unpaid bills start to compile or credit agencies begin to call.

The majority of victims live unaware of the fraud for as long as 1-5 years.  One way to thwart thieves is to stop receiving pre-approved credit applications in the mail.

Victims of Financial Identity Theft
When you have become a victim of Financial Identity Theft, we can help.

If you suspect that you have become a victim, report the problem to the FTC and close accounts you believe have been tampered with or have been opened fraudulently.

FTC
Phone: 1-877-IDTHEFT
Internet: www.consumer.gov/idtheft/

Victim Plan-of-Action

• File a report with local law enforcement.
• Contact the Credit Bureaus to place a Fraud Alert:
  
  Equifax
  Phone: 1-800-525-6285
  Internet: www.equifax.com
  Mail: P.O. Box 740241, Atlanta, GA 30374-0241
  
  Experian
  Phone: 1-888-EXPERIAN (397-3742)
  Internet: www.experian.com
  Mail: P.O. Box 9532, Allen, TX 75013
  
  TransUnion
  Phone: 1-800-680-7289
  Internet: www.transunion.com
  Fraud Victim Assistance Division
  Mail: P.O. Box 6790, Fullerton, CA 92834-6790

Contact a CITRMS Professional today to protect your business from Financial Identity Theft.