# Presentation: 293545

## Identity Crimes

## Postal Inspectors

- Postal Inspectors protect the Postal Service, its employees and its customers from criminal attack, and protect the nation’s mail system from criminal misuse.

**Notes:**
The U.S. Postal Service delivers more than 206 billion pieces of mail a year to roughly 142 million customers at some of the most affordable postal rates in the world. U.S. Postal Inspectors are mandated to safeguard all of it—including the people who move it and the customers who use it—and it’s all included in the price of a stamp. 
Postal Inspectors enforce more than 200 federal laws involving the misuse of the U.S. Mail for criminal activity. We’re the nation’s oldest Federal Law Enforcement Agency, dating back to 1772.

Our investigations include:
Financial crimes committed against the postal service and its customers, including embezzlement, counterfeit financial instruments, and fraudulent postage schemes
Violent crimes committed against postal service facilities and employees including robberies, burglaries and assaults; 
Prohibited mailings, including narcotics in the mail, child pornography, and explosives and other hazardous materials;
Mail theft, and 
Fraudulent schemes against the postal service and its customers, or involving the mail, including corporate fraud, mail fraud, worker’s compensation fraud, and identity fraud.

## Keys to Your Identity

- Name
- Address
- Date of Birth
- Driver’s License
- Social Security Number
- Mother’s Maiden Name
- Account Numbers

**Notes:**
When we talk about identity theft, stealing your name is not enough. Thieves need more information – and are very creative at obtaining it. Names, dates of birth, social security numbers, account numbers – all these pieces of information can add up to big dollars for an identity thief. Any source that maintains this information is a target of an identity thief.

## Identity Theft & Identity Fraud

- Identity theft involves acquiring key pieces of your identifying information without the victim’s knowledge.
- Identity fraud occurs when thieves use the victims’ personal identifying information to order merchandise, obtain credit, or otherwise falsely represent themselves without the victim’s express consent.

**Notes:**
Identity crimes involve the acts of unlawfully obtaining, possessing, transferring, or using identifying information of another person without the other person’s consent and with the intent to harm or defraud another.

There is a subtle difference between identity theft and identity fraud. Theft involves the acquisition process; fraud involves the use of the information acquired to inflict damage.

The personal information that is acquired enables a thief to commit numerous forms of fraud, which will be discussed more in depth as we continue.

## Identity Crimes Are Attractive

- Information is plentiful
- Credit is in abundance
- Absence of face-to-face contact with  victims
- Ability to vanish into cyberspace
- Crooks are resourceful and patient

**Notes:**
What is driving this crime today? There is no single factor that makes this crime attractive; rather, it is the combination of factors, some of which appear before you, that continues to make ID theft attractive to criminals.  Information is plentiful as is credit. Although many companies have improved security, we know from recent events that crooks are resourceful and often patient. Dumpster diving and wallet snatching are fairly easy to obtain consumer’s information. 

## Technology and Identity Theft 

**Notes:**
Opinions vary as to whether technology is driving the growth in Identity Theft. Who is right? 

Electronic crimes are particularly attractive to thieves, given their ability to gain access to large volumes of information during a single breach. Since January 2005, there were almost 52 million instances of identity compromise involving electronic commerce at such well-known and reputable companies as MCI, Choicepoint, Time Warner, Citifinancial, Bank of America, and the FDIC. Still, every compromise does not lead to a theft of identity. 

What is clear is that technology presents a tremendous opportunity for a variety of identity thieves – from those who use phishing, viruses, or key logging, to those who successfully hack a database. The absence of face to face contact with their victims and the ability to vanish into cyberspace make technology induced identity theft further appealing to crooks. 

## Internet Usage And ID Theft 

**Notes:**
Almost 70% of Americans surf the Internet today. In fact, Americans make up more than one-fifth of the Internet’s user base. Over the past five years, the worldwide use of the Internet has exploded, from 450 million users worldwide in 2000, to more than 817 million in 2004. That number has increased to more the 957 million during 2005. 

Along with this increase, there has been a steady increase in the number of identity theft related complaints, as reported to the Federal Trade Commission and the Internet Crimes Complaint Center. In 2000, there were 50,000 complaints filed with these organizations; that number increased to more than 450,000 in 2004. 

Electronic storage of vast amounts of data enables thieves to work efficiently. Although the Internet may facilitate certain types of identity crime, experts disagree as to whether there is a direct correlation between identity crimes and the Internet.

## Identity Theft and       Methamphetamine Abuse

- Meth abuse is one of the country’s fastest-growing problems.
- When there is a meth problem in a community, there’s an increased likelihood of higher rates for all crimes.

**Notes:**
(DO NOT USE THIS SLIDE UNLESS YOU MUST ADDRESS A METH ISSUE IN THE COMMUNITY)

The abuse of methamphetamine, also known as meth, speed, ice, is one of the country’s fastest-growing problems, challenging communities everywhere regardless of their urban or rural makeup. Currently, we have no data that establishes a direct link between these crimes.

What we can say is that where there is a meth problem in a community, there’s an increased likelihood of higher rates for all crimes, including robbery, burglary, prostitution, and theft - including mail theft. But does this always lead to identity theft?

While it is possible for meth addicts to obtain your identifying information through the theft of your mail, your trash, or a purse or wallet, most often they are interested in getting quick cash to fund their addiction.

What do the statistics show?   

## Your Identity at Greatest Risk

- Source: FTC 2003 Identity Theft Study

**Notes:**
In 2006, The Federal Trade Commission released a study of identity theft victims, which included a section in which the victims described the method by which their identities were compromised. The victims stated that, in 98% of the cases in which they could determine the point of compromise, the mail was not the source. 

Despite the electronic revolution, the mail remains one of the safest methods of communication today.

The study demonstrated that victims were three times more likely to have information stolen via a financial transaction—from a credit card receipt or during a purchase, or purchases via the Internet, mail, or phone.

The study also demonstrated that victims were three times more likely to have their identity stolen as the result of a lost or stolen wallet, checkbook, or credit card. 

However, we were surprised to learn that victims were three times more likely to suffer from the actions of a family member, trusted friend, or co-worker. 

In 55% of those surveyed, identities were compromised by “other” means, including phishing, key logging, electronic data compromises, and computer viruses. 

## How Identities are Stolen

**High Tech Methods**
- Phishing
- Spyware and Key Logging
- Skimming
- Trojan Horses, Viruses and Worms
- Hacking
- Spamming

**Low Tech Methods**
- Automobile dealers, retailers, restaurants
- Personnel Files
- Dumpster Diving
- Lost/Stolen Wallets and Checkbooks
- Healthcare Records
- Mail Theft

**Notes:**
There are a number of ways a thief may compromise your identity – here are just a few. You probably recognize most of the low tech methods presented here. However, the high tech might be new to you. 

SUMMARY SLIDE. USE THE TEXT BELOW TO EXPLAIN THE CONCEPTS ON THIS SCREEN IF YOU CHOOSE TO EXCLUDE SLIDES 11-18. OTHERWISE, STOP HERE AND PROCEED TO INDIVIDUAL SLIDES.

Phishing - the stealing of personal identifiers such as PIN numbers, credit card numbers and passwords via a spoof Web site or email.
Spyware – AKA Adware or Malware, covertly gathers your information without your consent. It can monitor or control your computer use, send  pop-up ads or redirect you to websites, which, in turn, could lead to identity theft. 
Key Logging – a software tool or spyware that captures the user's keystrokes, and transmits personal information such as PINS, account numbers and passwords. 
Skimming – one of the most prevalent forms of counterfeit fraud, whereby a card's magnetic stripe details are electronically copied and put onto another card.
Trojan Horse - a destructive program that hides like an innocent application. 
Virus - a program or code that is loaded onto your computer without your knowledge, which may use all available memory and bring the system to a halt. 
Worm - a program or code that usually performs malicious actions, such as using up the computer's resources and possibly shutting the system down. 
Hacking – the act of getting around the technical limitations of computer systems, usually finding a way around the security of a computer system. 
Spamming - the practice of sending massive amounts of e-mail promotions or advertisements (and scams) to people that have not asked for it. 

## Hacking

- Hackers accessed more than 5 million Visa and MasterCard credit card accounts in the US. – February 2003
- Hackers accessed a U.S. military database containing Social Security numbers and other personal information for 33,000 Air Force officers and enlisted personnel. -August 2005

- Hackers compromised the confidentiality of 40 million credit card holders, and 200,000 records had left the network at Card-Systems. – June 2005
- T-Mobile notified 400 customers whose data was accessed, but left open the possibility of  more victims as the case progresses. – February 2005

**Notes:**
Hackers use someone else’s computer to destroy or disrupt the system or to carry out illegal activities. Some files, disguised as MP3 files or other downloadables are really hacking Trojan horse applications which give their users access to your computer remotely. 

Identity theft is the by-product of hacker mercenaries obtaining your social security number (including those of your spouse and children), your bank account, your credit card information, etc., from the Internet. You become a virtual “Cash Cow” for hackers as your information is then sold to other felons for financial gain. Using your information, these criminals then:
access your bank account funds
create new bank accounts with your information
create driver’s licenses
create passports

## Most Common                       Low Tech Schemes

- Unknown caller posing as a bank employee trying to verify a SSN and mother’s maiden name
- Fraudster requests a victim’s credit report
- Dishonest employee with access uses or sells personal information
- Fraudster changes the address on your account to their address through the financial institution
- Thief who steals your information during a burglary

**Notes:**
The methods displayed on the screen demonstrate some of the more common low-tech methods that criminals use to obtain your information, including theft of information by insiders and acts of fraud against businesses that maintain your records. Low tech doesn’t equate to less of a threat – its just the good old fashioned way of doing business. 

## Counterfeit Documents 

- Drivers Licenses
- Social Security cards
- Credit reports
- Birth certificates
- Bank Statements
- Student IDs
- Company IDs

- 	Using personal information, the stolen identity is created and can be supported by counterfeit documents such as:

**Notes:**
The information stolen by thieves can easily be converted into counterfeit identification documents, including those displayed on the screen. Using the pieces of information the thief has obtained, a variety of counterfeit instruments which appear very much like legitimate documents can be created. 

## Counterfeiting Tools

- Computer, monitor and keyboard
- Color ink jet or color laser printer
- Flatbed scanner
- Commercially available software (VersaCheck, Adobe Photoshop, etc)
- High quality paper and/or check stock

**Notes:**
It doesn’t take much to create counterfeit documents. The tools are pretty common. The costs associated with technology have been driven down over the years, making this a very affordable criminal venture. With just a little cash and a bit of skill, the thief is in business. 

## Types of Identity Crimes

- Fraudulent Applications
- Account Takeover
- Merchant Fraud
- Credit Card Fraud
- Check Fraud

**Notes:**
Once a thief has your identity, what type of scheme might he become involved in? Listed on the screen are several of the most common. All it takes are a few key pieces of information, and the identity thief is ready to set up shop. 
SUMMARY SLIDE. USE THE TEXT BELOW TO EXPLAIN THE CONCEPTS ON THIS SCREEN IF YOU CHOOSE TO EXCLUDE SLIDES 24-28. OTHERWISE, STOP HERE AND PROCEED TO INDIVIDUAL SLIDES.
Fraudulent Applications. With just a few pieces of information, any fraudster can fill out a credit or loan application and receive instant credit.
Account Takeovers. Thieves impersonate you by using your credit and financial accounts to do their bidding. They may change the address with the financial institution, to avoid detection by the account holder. 
Merchant Fraud. A range of schemes which victimize consumers and businesses alike. Thieves place orders with merchants using your credit information. Merchants ship the goods only to find that payment is ultimately denied. They are out the goods and the payment.
Credit Card Fraud. Thieves use your credit cards to obtain cash advances, through ATM’s, banks, or insiders at retail and banking institutions. 
Check Fraud. This can involve check washing, a process which erases the ink on a check with common household chemicals. This allows the thief to reuse your check. Check fraud can also involve the use of commercial software to create counterfeit checks which gives the thief direct access to your accounts. 

## False Change of Address (COA)

- 	False change of address orders are most often filed with the financial institutions and **NOT** through the Post Office.

_*Why don’t they go to the Post Office?*_
* **Victim alerted by non-receipt of mail*
* **USPS Move Validation Services *
* **Address Verification Service*

**Notes:**
Many of these schemes are made possible by the use of fictitious addresses. In the vast majority of cases, this takes place when the fraudster changes the address directly with the institution that maintains the account on your behalf. It is not likely they will use the Postal Services’ change of address system.

Each year, the Postal Service processes more than 40 million address changes. It has adopted procedures that are designed to prevent false changes of address from being filed. By using confirmation letters and, in some cases, credit card-based verification, the Postal Service ensures that consumers and businesses are safe from would-be thieves. 

You should be aware, however, that identity thieves often prefer to change an address directly with a vendor, bank, or other financial institution, rather than risk being detected by the Postal Service’s verification process. The Postal Service and Inspection Service partner with business mailers to help avoid unwarranted changes of address, but you must remain alert. Watch for expected mailings of financial or other personal correspondence to ensure you receive them.

## USPS Move Validation Letter

**Notes:**
For prevention, there is the move validation program, where upon receiving a change of address notification, the Post Office will send a confirming letter to the old address to confirm the change, this will help detect an unauthorized change of address.  This program also has a confirming letter go to the new address when the change takes effect. This is an example of a move verification letter. 

## Attacking the                   Identity Crime Problem

**Notes:**
There is no single solution to the Identity Theft problem. Resolution can only come about through the combined efforts of the government, consumers, law enforcement, and the commercial sector. In other words, we’re all in this together

## General Prevention

- Shred pre-approved credit applications, bills, & other financial information before discarding.
- Empty your wallet of extra credit cards.
- Memorize or secure your passwords                           and SSN. Don’t carry them around.
- Never leave receipts behind at ATMs,                 merchants, banks, or gasoline pumps.
- Check your credit report once a year                             for accuracy and fraud abuse.
- Don’t use a date of birth as your password.
- Never give personal information to a stranger.
- Match receipts against financial statements.

**Notes:**
Here are some of the most common steps to protect your identity. They’re not difficult, and in many cases, they are just plain common sense. 
Keep your private information private. Do NOT provide personal information to anyone over the telephone, Internet or mail unless you initiated the contact. And make certain you know who you are dealing with. 
Never disclose your Social Security Number unless it is an absolute necessity, and only if you are comfortable with the safeguards in place by the merchant or vendor.
Review your financial statements; if your bills do not arrive on time, contact the companies.
Familiarize yourself with your financial institutions address change policy. If you change your address or phone number, notify your credit card companies. Make certain they’ll contact you prior to making a change or honoring a large withdrawal not received in person. 
Never loan your ID to anyone (including your driver’s license)

## Using Social Security Numbers 

- Why do you need it?
- How will you use it?
- How do you protect it from being stolen?
- What will happen if I refuse to give it?

- 	Your employer, medical and financial institutions, as well as other businesses may ask for your Social Security Number. If someone asks, be prepared to ask them:

**Notes:**
The Social Security number is the most frequently used recordkeeping number in the United States. Common uses include employee files, medical records, health insurance accounts, credit and banking accounts, university ID cards, and many other purposes. 

The Privacy Act of 1974 requires all government agencies -- federal, state and local -- that request SSNs to provide a "disclosure" statement on the form. The statement explains if you are required to provide your Social Security number or if it is optional, how the SSN will be used, and under what statutory or other authority the number is requested. 

Usually you are not legally compelled to provide your Social Security number to private businesses -- including private health care providers and insurers -- unless you are involved in a transaction in which the Internal Revenue Service requires notification. There is no law, however, that prevents businesses from requesting your SSN, and there are few restrictions on what businesses can do with it. However, they most likely cannot compel you to provide that number to private businesses. 

If a business insists on knowing your Social Security number when you cannot see a reason for it, speak to an administrator who may be authorized to make an exception or who may know that company policy does not require it. If the company will not allow you to use an alternate number, you may want to take your business elsewhere. 

In California, a new law restricts how certain businesses can display their customers' Social Security numbers. It does not restrict their collection, however, and it does not affect government agencies. Know your rights under the law.

## Safeguarding Your Mail

- Deposit mail at your local Post Office, in a collection box, or hand it to your letter carrier
- Retrieve mail as soon as possible after delivery
- Place your mail on hold with the Post Office if you are planning a trip
- Report suspicious activity concerning mail to your local Postal Inspector

**Notes:**
The mail remains one of the most secure means of transmitting personal information. Crimes involving the mail, including fraud and mail theft, are investigated by more than 1,900 Postal Inspectors, nationwide.  Stealing, or tampering with mail is a federal offense.

Recent surveys show there is a 96% chance victims’ identities will be compromised by some means other than the mail. There are steps you can take to further reduce your risk, which will better safeguarding your personal information and other important items in the mail.

If you have a concern about security in your neighborhood, make use of one of the many USPS collection boxes throughout your town, place your outgoing mail in a secure receptacle at your place of business, or use your local post office. 

If you are mailing an important package, such as Priority Mail, Express Mail or Parcel Post, don’t leave it unattended in plain view of casual passersby. You can schedule a special pickup for a nominal fee, or drop the package at your local post office or postal service contract station. Visit USPS.com for more information.

A post office box is a great way to receive mail where and when it’s most convenient for you. And its secure. You can direct all of your mail, or specific items such as financial statements, to your P.O. Box, while maintaining regular delivery at your home. You can get a P.O. box at most Post Offices. Prices vary depending on the location of the Post Office and the box size. 

When theft happens, it often happens under the cloak of night, when there is a lesser chance the thief will be seen. Always retrieve your mail as soon as possible after delivery; never leave your mail in your mailbox overnight. And just as important – don’t forget to place your mail on hold with the post office if you are unable to retrieve it for several days.  

## www.usps.com/postalinspectors 

- Identity Theft: Safeguarding Your Identity
- Publication 280
*Prevention Tips*
*Recovery Steps*
- Identity Crisis:
- Protect Your Identity
*DVD Format*
*Spanish Subtitle*
*Free of Charge*

**Notes:**
The United States Postal Inspection Service offers information on identity crimes, free of charge. Visit www.usps.com/postalinspectors for more information, including free copies of our Publication 280, Identity Theft: Safeguarding Your Identity. The publication includes information that can help you in protecting your good name, including tips on protecting yourself from identity theft and identity fraud, and steps to take if you believe someone has stolen your identity. 

You can also obtain a free copy of our DVD, “Identity Crisis,” the first installment in our award winning consumer education series. This DVD takes a dramatic look at a couple who were victimized by identity theft and fraud, the criminals who defrauded them, and the devastating aftermath. 

## Will You Know                            if You are a Victim?

- Statements or credit cards arrive for accounts for which you haven’t applied
- Bills and other mail fail to arrive or are late
- Credit is denied, or you are offered less favorable credit terms, like a high interest rate, for no apparent reason
- Debt collectors contact you about merchandise or services you didn’t buy

**Notes:**
If an identity thief opens new credit accounts in your name, the accounts will likely show up on your credit report. You can determine this by ordering a copy of your credit reports, and you are entitled to a free copy of your credit report each year. Check the report carefully to ensure it’s accurate. If your personal information has been lost or stolen, check your reports more frequently for the first year. Don’t forget to review your financial account statements promptly and look for unauthorized debits or charges. You should also watch for the following signs.

Although any of these indicators could be the result of a simple error, don’t assume there's been a mistake and do nothing. Always follow up with the business or institution to find out.

## Action Steps for             Identity Theft Victims

- File a report with your local police or the police in the community where the identity theft took place.
- File a report with the Federal Trade Commission.
- Report lost or stolen credit cards to the issuer immediately.
- Consider changing account numbers, passwords, and PIN numbers immediately.
- Advise the credit bureaus of your situation and consider placing a fraud alert on your account.
- Request a copy of your credit report.
- Alert your banks to flag your accounts and contact you to confirm any unusual activity.
- Maintain a record of names and phone numbers of the people with whom you discussed your case,  and all supporting documents.

**Notes:**
Identity theft is a serious crime. People whose identities have been stolen can spend months or years and thousands of dollars cleaning up the mess the thieves have made of a good name and credit record. In the meantime, victims of identity theft may lose job opportunities, be refused loans for education, housing, or cars, and even get arrested for crimes they didn't commit. Humiliation, anger, and frustration are among the feelings victims experience as they navigate the process of rescuing their identity. If you believe you’ve been victimized, don’t hesitate. Immediately start to reclaim your identity. The steps displayed on screen can be found on many consumer websites, including the United States Postal Inspection Service and the Federal Trade Commission site. 

## Contacting the Credit Bureaus

- Equifax Credit Bureau, Fraud 800.525.6285
- Experian Information Solutions 888.397.3742
- Trans Union Credit Bureau, Fraud 800.680.7289

**Notes:**
Here you will find contact information for the credit bureaus. This information is also available on our website, as well as the Federal Trade Commission’s website.

Consider placing a fraud alert on your credit file, which can help prevent an identity thief from opening any more accounts in your name. You only need to contact one of the three companies to place an alert; they will alert the other credit agencies. 

There are two types of fraud alerts. An initial alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. When you place an initial fraud alert on your credit report, you're entitled to one free credit report from each of the three nationwide consumer reporting companies.

An extended alert stays on your credit report for seven years. You can have an extended alert placed on your credit report if you've been a victim of identity theft and you provide the consumer reporting company with an "identity theft report." This also entitles you to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. 

Contact the credit bureaus for more information on these processes.

## Report Identity Theft Cases

**The Federal Trade Commission**
**Victims should be encouraged to report their complaints to:**
**     ****	****(877) – ID THEFT**
**	****(877) – 438- 4338**
**	****	****	**
**	****	****Or**
***	******www.consumer.gov/idtheft***

**Notes:**
By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC can refer victims' complaints to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces.

## Identity Theft                 Internet Resources

- United States Postal Inspection Service
- 		http://usps.com/postalinspectors
- Federal Trade Commission’s ID Theft Center
- 		http://www.consumer.gov/idtheft
- Looks too Good to be True
- 		http://www.lookstoogoodtobetrue.com
- Consumer Privacy Guide
- 		http://www.consumerprivacyguide.org
- Identity Theft: Prevention & Survival
- 		http://www.identitytheft.org
- Privacy Rights Clearinghouse
- 		http://www.privacyrights.org/identity.htm

**Notes:**
The Internet contains a number of references which you might find useful in educating yourself on the topic of Identity Theft. Here are just a few:

## Contact Information

- Tony Reed
- Postal Inspector
- (817)359-2700
- careed@uspis.gov
- 14800 Trinity Blvd., Ste. 600
- Fort Worth, TX 76155
- www.usps.com/postalinspectors

**Notes:**
Enter your information on this slide.