2002 Identity Theft Chicago Public Library

A presentation on identify theft presented at the Chicago Public Library in 2002. I discussed fair information principles, criminal fraud, financial fraud (credit card, bank, utility, loan fraud), case studies, statutes, Illinois statutes, united states code, and more. I also provided recommendations to avoid identity theft.

1. Identity Theft and Privacy
Charles Lee Mudd Jr.
Privacy Resolutions P.C.
November 20, 2002
Chicago Public Library
© 2002 Privacy Resolutions P.C.

2. Introduction
1997Quinnipiac University School of Law
J.D., magna cum laude
2001, Adjunct Professor
University of Connecticut School of Law
2002, Adjunct Professor
John Marshall Law School

3. Introduction
2001 Founded Privacy Resolutions P.C.
President and Attorney
Privacy Resolutions P.C.

4. Identity Theft Statistics
•From November 1999 through December
2000, the FTC hotline processed 40,000
entries from consumers and victims of ID
Theft
•69% of these were victims complaints
(nearly 28,000)

5. Identity Theft Statistics
•14 months -The average amount of time to
notice ID Theft
•Only 35% noticed in one month

6. What is Identity Theft?
•Privacy
•Criminal
•Financial
•Misappropriation
•Reputation

7. Privacy
•Personally Identifiable Information
•Opt-in versus Opt-out
•Privacy Policies
•Fair Information Practice Principles
•Notice
•Access
•Choice
•Security

8. Criminal Fraud
•Using identities to avoid criminal prosecution or
as identity when committing a crime and/or caught
•Can be used from traffic violations to felonies
•If they’re released from police custody, but don’t
appear, warrants issued
•It can happen to anyone

9. Financial Fraud
•Credit card fraud (50%)
–More than 50% of victims reported credit card fraud through either
an existing card being used or a new credit card account being
opened without authorization
•Bank fraud (16%)
–Opening an unauthorized checking or savings account in another
person's name or writes checks on someone else's account
•Utility fraud (25%)
–25% of victims report having had an unauthorized account opened
in their name with a utility company
•Loan fraud (9%)
–An unauthorized loan is obtained
* Statistics obtained from FTC

10. Financial Fraud (cont’d)
Other forms of financial fraud
–Purchase or trade in securities or investments
–Lease
–Declare Bankruptcy
–Obtain Tax Refunds
–Obtain Medical Services
* Statistics obtained from FTC

11. Misappropriation
•Government Fraud (8%)
–Government benefits, government documents,
file tax returns
•Employment
•Internet Accounts
•Photos (Internet, and more)

12. Reputation
All of these forms of identity theft can easily
harm one’s reputation
Impact can be devastating
•Denied employment
•Driver’s license suspended or revoked
•Arrested or detained

13. Statistics Revisited
More than 50% of the FTC entries by victims
had experienced one or more forms of
identity theft

14. Case Studies
•Financial -Western Union and Credit
•Criminal -Warrants out for arrest
•Misappropriation -Pictures
•Internet -Ebay

15. How Do They Do It?
•Very very easily
•All that is needed is SS#, DOB, and some other
information
•Can obtain false driver’s license or other ID
•Yes, can use different address -claim address
changed

16. How do they do it? (Part II)
Information can be accessed about you from
any number of sources…..
……Anywhere personally identifiable
information has been provided and/or
stored…..

17. How do they do it? (Part II)
Steal wallets/purses containing ID and cards
Steal your mail, statements, pre-approved
(remember opt-out), new checks, tax
information
Steal business records

18. How do they do it? (Part II)
Reroute mail by change of address forms
Rummage through trash (“dumpster diving”)
Recover personal information in your home
Personal Information shared on the Internet
Scams through email
Fraudulently obtain credit reports posing as
employer, landlord, etc.

19. Statutes
Illinois
United States

20. Illinois
FINANCIAL IDENTITY THEFT AND
ASSET FORFEITURE LAW
(720 ILCS 5/16G-1)

21. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
"Personal identification document" means a birth certificate,
a drivers license, a State identification card, a public,
government, or private employment identification card, a
social security card, a firearm owner's identification
card, a credit card, a debit card, or a passport issued to or
on behalf of a person other than the offender, or any such
document made or altered in a manner that it purports to
have been made on behalf of or issued to another person or
by the authority of one who did not give that authority.

22. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
"Personal identifying information" means any of the
following information:
(1) A person's name;
(2) A person's address;
(3) A person's telephone number;
(4) A person's drivers license number or State of
Illinois identification card as assigned by the Secretary
of State of the State of Illinois or a similar agency of
another state;
(5) A person's Social Security number;

23. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
(6) A person's public, private, or government employer,
place of employment, or employment identification
number;
(7) The maiden name of a person's mother;
(8) The number assigned to a person's depository
account, savings account, or brokerage account;

24. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
(9) The number assigned to a person's credit or debit
card, commonly known as a "Visa Card", "Master Card",
"American Express Card", "Discover Card", or other
similar cards whether issued by a financial institution,
corporation, or business entity;
(10) Personal identification numbers;
(11) Electronic identification numbers;
(12) Digital signals;
(13) Any other numbers or information which can be
used to access a person's financial resources.

25. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
A person commits the offense of financial identity theft
when he or she knowingly uses any personal
identifying information or personal identification
document of another person to fraudulently obtain
credit, money, goods, services, or other property in the
name of the other person.

26. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
Aggravated -to someone 60 years or older, or someone
disabled

27. FINANCIAL IDENTITY THEFT AND ASSET
FORFEITURE LAW
Criminal Penalties
No Private Right of Action

28. United States Code
Identity Theft and Assumption
Deterence Act
18 U.S.C. §1028 (a) -(h)

29. United States Code
No Private Right of Action

30. Avoiding Identity Theft
•Identity Theft can happen to anyone
•Preventative steps can and should be taken

31. Preventative Measures
•INQUIRE about privacy policies -ask
how information will be used and/or be
shared
•ASK that information be kept
confidential
•KEEP information secure and in a safe
place

32. Preventative Measures
•SHREDall solicitations for credit cards, bank
accounts, insurance, etc.
•OPT-OUTof mailing lists
–1-888-5-OPT-OUT (1-888-567-8688)
•DON’T DISPLAYpersonal identifying
information (ie SS#, DOB, Phone, CC#) to
merchants on checks

33. Preventative Measures
IF YOU lose your wallet or purse (or if it’s stolen),
request new account numbers for all of your cards
and accounts

34. Preventative Measures (cont’d)
MONITOR
–Mail
–Financial accounts
Monitor activity, if haven’t received call
–Credit Bureau Reports
Correct any and all inaccurate information, Check your report
once every year

35. Preventative Measures (cont’d)
REVIEW
–Information security procedures in workplace
–Locations of information in home (ie roommates,
employed help)

36. Preventative Measures (cont’d)
DISCLOSE INFORMATION
–Only when you initiated contact
–Organization has been confirmed

37. Preventative Measures (cont’d)
ELECTRONIC PRECAUTIONS
–Update Virus Protection Software regularly (automate)
–Don’t download or click anything from strange email
–Use a firewall (particularly cable and DSL)
–Use a secure browser
–Use very strong passwords (quotes from books or poems)
–Delete personal information before discarding
–Secure all PDAs
–Website Privacy Policies

38. Preventative Measures (cont’d)
Unofficial TIPS
Avoid non-Bank ATMs
Collect all receipts (ie gas stations)
Pay cash for small purchases (avoid electronic signatures)

39. Preventative Measures (cont’d)
THINK SMART!

40. ERTID
Emergency Response to Identity Theft
Begin a Log…
–Write all names and numbers of people contacted
–Write all information found and from where or whom
–Write all activities completed, organize
Collect evidence
–Letters, correspondence
–Files
–Reports

41. ERTID
Emergency Response to Identity Theft
Contactall creditors and….
–Explain what has happened
–Request new account numbers (DON’T CANCEL)
–Verify address on file, request that don’t change unless
verified
–Change verifiable information to something out of
ordinary

42. ERTID (cont’d)
Emergency Response to Identity Theft
Contactall credit reporting agencies….
–Experian 1-888-397-3742
–Equifax at 1-800-270-3435
–Trans Union at 1-800-680-7289
Inform them and request fraud alertplaced on your record
(temporary 90 day or more permanent, depends on
circumstances, consult professional)

43. ERTID (cont’d)
Emergency Response to Identity Theft
REPORT the incidents to the police
You must obtain police report and may have to do some convincing
Provide documentation
Ask if others in area, have them check FTC database
If multiple states involved, contact Secret Service or local Federal Bureau
of Investigation Office

44. ERTID (cont’d)
Emergency Response to Identity Theft
•REPORT the incidents to all vendors involved
and attempt to cancel transactions
•REPORT the incidents to the Federal Trade
Commission
–1-877-ID-THEFT (1-800-438-4338)
–www.consumer.gov/idtheft

45. ERTID (cont’d)
Emergency Response to Identity Theft
Checking (to stop any checks being used)
Telecheck 1-800-710-9898 or 927-0188
Certegy, Inc. 1-800-437-5120
International Check Services 1-800-631-9656
Checking (to see if bad checks using your name)
SCAN 1-800-262-7771

46. Why an Attorney?
Civil Remedies
Resolving Disputes

47. Civil Remedies
•Statutes discussed do not yet provide civil right of
action
•Prosecution may pursue Imposter if identity
obtained, but again no civil recovery
•There do exist certain traditional torts that can be
explored depending upon circumstances

48. Resolving Disputes
•Unfavorable responses from vendors, credit cards
•Hasten resolution of issues, return of money, or
provisional credit
•Cooperation
•Consultation
•Experience, save time and frustration
•All experiences unique

49. Other Issues
•Fair Credit Reporting Act
–Delineates when and how credit bureaus may
disclose credit reports
–A company may obtain report IF YOU APPLY
for credit, insurance, employment, or to rent an
apartment
–Number of times requested can hurt rating

50. Online Resources
•www.pirg.org
•www.gao.gov
•www.epic.org
•www.fraud.org
•www.consumer.gov/idtheft

51. Notice
This presentation has been provided for informational purposes only. All
circumstances and cases of identity theft will be unique to each
individual. While general precautions have been provided, no legal
advice has been rendered. This publication should not be considered
legal advice or representation. Should you become a victim of identity
theft or have further questions, please do not hesitate to contact me
directly on a personal basis.

52. Contact Information
Charles Lee Mudd Jr
President, Privacy Resolutions P.C.
4710 North Virginia Avenue
Chicago, Illinois 60613
773.271.7600 (telephone)
773.989.4441 (facsimile)
[email protected]
www.privacyresolutions.com