Ppl World Atl June 2007 Training

The Scary New Face of Identity

Theft!

youand what

can do!youand what

can do!


Theft!

Credentials and Certifications

Presented by Jeffrey Omtvedt

CITRMS

Certified Identity Theft Risk Management Specialist

By the

What is Identity Theft? The Cost to Victims Industry Response The Solution to the Crime Marketing Our Services

Could You Be at Risk?

IDentityTheft

3 Misconceptions

1. It is just about your credit cards or finances

2. You can’t be held liable for debt racked up in your name by thieves

3. You can 100% prevent the crime

Drivers License Identity Theft

MedicalIdentity Theft

Financial Identity Theft

Identity Theft is not just about Credit Cards!ID Theft is an international crime and access to an attorney may be critical

Social Security Identity Theft

Character / Criminal Identity Theft

Five Common Types of Identity Theft

What is Identity Theft?

Driver’s License Identity Theft

Thieves use your information to acquire a driver’s licenses in your name or claim to be you during a traffic stop

♦ You could receive DWI, DUI, and other driving-related charges

♦ Your driving privileges could be suspended or revoked

♦ You could be arrested during a routine traffic stop for crimes you did not commit



“the Department has discovered that identification information in your file is inconsistent with corresponding records at the Federal Social Security Administration … Before your document can be renewed, any inconsistencies will need to be corrected. You will need to present legal documents that certify your current legal name, social security number and date of birth.”


February 2004

“An 82-year-old grandmother, quit driving during the Truman administration.” In 2001 she “suddenly found herself in what she describes as a ‘living hell’ after one of her neighbors, arrested on drunk-driving charges … pretended to be her. ‘I was told there were warrants for my arrest … I was afraid to answer the phone’.”

Social Security (SSN) Identity Theft

Thieves use your SSN Identity to gain employment or to report income under your name


Your SIN in Canada

♦ Thieves take the income, but don’t pay the taxes, leaving you with the bill

♦ Wanted criminals use your SSN Identity so they can get employment without being found

♦ Illegal immigrants use your SSN Identity to gain employment.

♦ Thieves and Criminals use your SSN for employment, medical, financial, criminal, school, and other purposes.


Jan. 29, 2005

A Chicago woman “applied for a job at a local Target department store and was denied. The reason? She already worked there – or rather, her Social Security number already worked there. Follow-up investigation revealed the same Social Security Number … used to obtain work at 37 other employers.”

The Secret List of ID Theft Victims

“People need to wake up to this problem. They are destroying people’s credit, Social Security benefits, and everything else.”

Medical Identity Theft

Thieves use your information for insurance benefits, Rx, Medicare, Medicaid benefits, or for medical tests


♦ Your rates could go up or your coverage could be cancelled or used up

♦ You could owe thousands of dollars for a procedure you never had

♦ You could be unable to obtain medical or life insurance, other coverage, and/or employment because of conditions that you do not have (AIDS, Diabetes etc…)


“If the person who steals your health identity has allergies or specific medical conditions that collide with yours for instance … when you go in for care, you may experience a dangerous drug interaction or unknowingly be denied potentially lifesaving medications or treatments because they will assume the thief’s medical information is yours.*”


Sept. 2005

*Carole Pennington 9/7/2005

“As the health care system transitions from paper-based to electronic, this crime may become easier to commit and harder to trace. Victims may find it more difficult to recover from medical identity theft as medical errors are disseminated and redisseminated through computer networks and other medical information-sharing pathways.*”

May 2006*Pam Dixon, Pg 3.,5/3/2006

Medical Identity Theft: The information crime that can kill you

Character / Criminal Identity Theft

♦ You could be arrested

♦ You could be denied employment because of fraudulent criminal records found during routine background checks

♦ Security checkpoints at airports could become a nightmare for you

♦ You could be denied a passport and be barred from leaving the country

Thieves mask their criminal activity behind your identity


* Cover, Kiplinger, October, 2005


The October 2005 issue of Kiplinger’s Personal Finance portrayed a different side of Identity Theft when they devoted an entire section to character/criminal identity theft. “Identity Theft Update: Could losing your wallet land you in jail?*”

October 2005


Financial Identity Theft

♦ Thieves rob your accounts

♦ They rack up outrageous charges on credit cards, take out new loans, and more

♦ They destroy your credit, forcing you to pay higher rates

♦ You can absolutely be held responsible for the debts incurred by the thieves in your name

Thieves use your information to open new accounts or to gain access to existing accounts


Order the Federal Trade Commission free report

Take Charge: Fighting Back Against Identity Theft

Phone: 877.IDTHEFT

Web: http://www.consumer.gov/idtheft

When you read this, it will become crystal clear why it is good for the company and the employee to have an ID Theft service that offers

Legal Access, Monitoring, and Restoration versus resolution or reimbursement.



*Pg. 19

“The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit … accounts … To Take Advantage of the law’s consumer protection, you must:”

•send your letter so that it reaches the creditor within 60 days. If an identity thief changes the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill.*” … or you owe the money.

See page 13 for additional information


February 2004

ID Theft Victims Face Tough Bank Fights*• In 2003, The Korinke family was sued by Homecoming Financial Network INC., a division of GMAC, for $75,000, plus attorney fees.

• In 2001, an imposter got hold of a line of credit, switched the address, and the Korinkes never received the outstanding bills.

• Homecomings … claimed the Korinkes had been negligent. “The Korinkes were slow to discover and report the identity theft … as such, Korinke is liable for any and all sums attributed to his negligence.**”

• Korinke’s attorney said “ victims who don’t have the means to find a good lawyer, may be losing out in battles with financial institutions.***”

*2/18/04

** Pg.2

*** Pg. 3

“Each year, 7 to 10 millionAmericans fall prey to Identity

Theft… From massive data-brokerage firms

to tiny local banks, your identity

is irretrievably ‘out there.’ ”


A recent Gartner survey showed 15.5 million victims from mid 2005 – 2006. That is 4.9 people every 10

seconds.


The DataBased You

Meet The DataBased You

™

™


Your Name1000’s of aggregators

Your Fingerprints and DNAFBI, State, and Local DBS

Your Insurance ClaimsC.L.U.E. DBS, etc...

Your Military RecordDOD DBS

Your Criminal HistoryNCIC DBS

Your Real Estate DeedsClerks of Court DBS

Your Legal HistoryState and Federal Court DBS

Your Credit HistoryCredit Repositories’ DBS

Your Birth CertificateChoice Point DBS, State, etc

…Your Phone Number and Tracking Info

1000’s of aggregators

Your Social Security NumberSSA DBS

Your Address1000’s of DBS

The DataBased You™

Your Driver’s License # and Record – DMV DBS

Your Medical RecordsMIB DBS, etc …

Your Car Registration & InfoDMV, Local Treasurer, On Star, etc … DBS



Whether it was hacking, lost computers or lost data tapes,

there were

155,048,651*

records lost due to computer data breeches from major

companies.

Between Feb. 15th 2005 and June 7th, 2007:


™What is Identity Theft?

privacyrights.org

Lost, Hacked, or Stolen… Notables

You can’t control The DataBased You

Circuit City: 2.6 Million

CitiFinancial: 3.9 Million

MasterCard: 40 Million

TJX Companies: 45.3 Million

Nissan Motor: 5.3 Million

Bank of America: 1.2 Million

Turbo Tax: Unknown

™What is Identity Theft?

So many laptops … we lost count


October 2005

“Identity thieves are increasingly finding their jackpot is not in your mailbox or kitchen trash

bag, but the computer files stored at your chiropractor, accountant or doctor … the future is not burglaries of your home, but of dentists,

CPA’s, insurers etc …*”

ID Fraudsters Stay One Step Ahead

* MarketWatch, October 2cd, 2005

The Cost to Individuals

The Cost to Victims

The average dollar amount charged in Identity Theft: $92,893

The average number of checks written in Identity Theft: 74.6

The average number of credit card applications approved through Identity Theft: 8.4

Laws hold victims partially responsible for fraudulent debt after 48 hours, and hold them fully responsible if not reported within 60 days…

The Cost to Businesses

Employees can take up to 600hours, mainly during businesshours, to restore their identities

Employers will be held liableif lost information is traced backto their businesses

Employers are exposed to class action lawsuits, with fines of $2,500, or more, per employee…

Laws now require jail sentences for Executives…

The Cost to Victims

“People whose identities have been stolen can

spend months or years and thousands of dollars cleaning up the mess the

thieves have made of their good name and credit

record”FEDERAL TRADECOMMISSION

“When Bad Things Happen to Your Good Name” — September 2002

The Cost to Victims

Reimbursement Policies

♦ Reimbursement policies are not proactive and some ID Theft problems cannot be corrected after the fact (such as arrest records, etc...) …

♦ You must pay out of pocket first (up to 25,000 in some instances), then file a claim, and then hope for an underwriters approval for reimbursement. This process can take weeks or months and be very frustrating …

♦ Your insurance agent does not do the work for you…

♦ You carry the full burden of clearing your name…

These policies play a part, but they only help after you become aware of the theft…

Reimbursement policies do not pay for the fraudulent losses, yet many think they do…

Industry Response

Monitoring Services

♦ Monitoring helps primarily with FinancialIdentity Theft

♦ Monitoring services often cover only the accounts you have with the company offering the service

♦ Monitoring services do just that, Monitor. They notify you that the nightmare is beginning but do nothing to help you. The real headache associated with Identity Theft is the cost of the 600 Hours* it takes you to restore your identity.

Monitoring credit activity is the single best method to detect identity theft, but…

Industry Response

* USA Today Estimate, January 2005

Resolution Services

♦ These services only provide guidance, leaving you to clear your good name

♦ It takes you an average of 600 hours ofwork to clear your name, if you ever do…

Resolution Services provide phone consultation for you, which is vital, but it is not enough…

Professionals steal identities. Doesn’t it just make sense to have professionals restore those identities?

Industry Response

Restoration Services

♦ Restoration means that experienced professionals — not you — do the work to clear your name

♦ These services can save hundreds, possibly thousands of hours of work…

Restoration Services provide tremendous relief to you

Industry Response

Restoration Services provide incredible support, but they do not include monitoring services or legal help, particularly 24-hour legal access in the event you are being arrested …

LifeLock

Industry Response

This is a service that basically puts what is known as a pre-emptive fraud alert on your social security number in the three major credit repositories. This lasts for 90 days and then they do it again for another 90 days. They also have a $Million Dollar insurance policy to help you in you are victim.1. This service does not monitor you credit like ours

2. This service does not restore your identity like ours (Kroll/PPL)

3. This service does not understand the five areas like ours

4. This service can be damaging (see experian.com askmax)

5. This service does not do anything you can’t do yourself. We have Kroll, they don’t and you can put the same alert they do!

Applies To Every Business And Individual Who Maintains, Or Otherwise Possesses, Consumer Information For A Business Purpose.

Employee or Customer information lost under the wrong set of circumstances may cost your company: Federal and State Fines of $2500 per occurrence Civil Liability of $1000 per occurrence Class action Lawsuits with no statutory limitation Responsible for actual losses of Individual ($92,893 Avg.)

Fair and Accurate Credit Transactions Act (FACTA)

Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You

Industry Response

HIPAA Security Rule

April 21, 2005 - Scope broadened on April 21, 2006

Applies To Any Organization Or Individuals Who Retain Or Collect Health Information.

Medical information lost under the wrong set of circumstances may result in: Fines up to $250,000 per occurrence Up to 10 Years Jail Time for Executives


Industry Response

Eight Federal Agencies and any State can enforce this law

Applies To Any Organization That Maintains Personal Financial Information Regarding It’s Clients Or Customers

Non Public Information (NPI) lost under the wrong set of circumstances may result in: Fines up to $1,000,000 per occurrence Up to 10 Years Jail Time for Executives Removal of management Executives within an organization can be held accountable for non-compliance both civilly and criminally

Gramm, Leach, Bliley Safeguard Rule


Industry Response

Gramm, Leach, Bliley Safeguard RuleAny Organization Includes:Financial Institutions*

Schools

Credit Card Firms

Insurance Companies

Lenders

Brokers

Car Dealers

Accountants

Financial Planners

Real Estate Agents

*The FTC categorizes an impressive list of businesses as FI and these so-called “non-bank” businesses comprise a huge array of firms that may be unaware they are subject to GLB.


Industry Response

Requires businesses to:

Appoint an Information Security Officer

Develop a written policy to protect NPI

Hold mandatory trainings for employees who have access to NPI

Safeguard and Security Rules


Industry Response

ABA JournalMarch 2006

Industry Response

- “Stolen Lives”, ABA Journal, March 2006

Industry Response

According to Betsy Broder of the FTC,

“We will act against businesses that fail to protect their data … She understands that most small

businesses cannot be expected to hire a full time privacy specialists but adds that all businesses must be

able to show they have a security plan in place. “We’re not looking for a perfect system .. But we need

to see that you’ve taken reasonable steps to protect your customers’ information”.

- “Stolen Lives”, ABA Journal, March 2006

Industry Response

Pre-Paid Legal Services®, Inc. and Kroll Background

America provide The Best Answer:

Harland C. StonecipherCEO and Founder,Pre-Paid Legal Services, Inc.

SHIELDIDentity Theft

TM

with the Pre-Paid Legal Plan

The Best Answer

MonitoringServices

Life EventsLegal Plan


You

The Best Answer …

The Best Answer


Three Areas of Coverage

Credit Report and Continuous Monitoring

Access to Counsel Life Event Legal Plan

The Best Answer

You will receive an up-to-date credit report through Experian

Your credit files will be regularly monitored. Suspicious activity will be brought to your attention, providing you with early detection

You will receive prompt notice if any new accounts are opened in your names, if derogatory notations are added to your credit reports, if your address is changed, or if a public record is posted in your name.

Credit Report & Continuous Monitoring

The Best Answer

As Identity Theft Shield SM members you will have experienced professionals working for you!

♦ Fraud alert notifications will be sent on your behalf with applicable follow up to affected agencies and institutions

♦ Searches of local and national databases will be made proactively on your behalf to find information you may not know about, including warrants for your arrest, etc …

Identity Restoration will not apply if the identity theft is the result of a dishonest, criminal, malicious, or fraudulent act you, your spouse, or your child participated in, directed, or had knowledge of. Restoration services will not be provided for a known stolen identity event that occurred prior to enrollment date. You must be an active member to receive restoration services. Services provided do not cover financial losses arising from the identity theft. A signed limited power of attorney must be provided to Kroll when an Identity Theft Restoration case is opened in order for Kroll to work on your behalf and/or provide the Proactive Database Searches listed. A stolen identity event does not include the theft or unauthorized or illegal use of your business name, d/b/a, or any other method of identifying your business activity.


The Best Answer

Five Areas of Coverage – Life Events Legal Plan

Preventive LegalServices

Motor Vehicle Legal Services

Trial Defense Services

Federal Tax Audit Legal Service

Other Legal Services

25%

The Best Answer

The Legal Shield service will not apply if the member is alleged to be under the influence of or impaired by alcohol, intoxicants, controlled substances, chemicals or medicines, whether prescribed or not; the member is alleged to be involved with domestic violence or stalking; and/or the member is being detained for outstanding warrants. Check benefit availability in your state.

Legal Shield

The Legal Shield gives you and your family 24-hour access to legal consultation if you are detained, for only $1 a month - as an additional benefit to your Family Plan membership.

To contact your Provider Law Firm, simply call the toll-free number on your Legal Shield card. You will reach the Pre-Paid Legal offices, who will then put you in contact with your Provider Law Firm, so you can consult with an attorney about your detainment. It’s that easy.

The Best Answer

Pre-Paid Legal Services®, Inc.is the only company with a suite of

products that provides help in every area of Identity Theft – before, during, and

after the crime occurs…

The Best Answer

Who Is Covered By The Plans?

1) The Member

2) The Member’s Spouse

3) Never Married Dependent Children Under 21 Living At Home

4) Dependent Children Under Age 18 For Whom The Member Is Legal Guardian

5) Full Time College Students Up To Age 23 Never Married, Dependent Children

6) Physically Or Mentally Challenged Child Living At Home

The Best Answer

With the Life Events Legal Plan and Identity Theft Shield SM you will receive all these benefits for just . . . .

That's less than the price of a cup of coffee a day!

$0.88 per day or less$26.95 per month or less

One time $10 enrollment fee

Month-to-Month Commitment

The Best Answer

With the Life Events Legal Plan and Identity Theft Shield SM you will receive all these benefits for just . . . .

That's less than the price of a cup of coffee a day!

$1.18 per day or less$35.95 per month or less

One time $10 enrollment fee

Month-to-Month Commitment

The Best Answer

Why Do we have the, second to none, most comprehensive approach to Identity Theft in the Marketplace?

Most products only deal with one fifth of the problem, the financial side, while our product is helpful in every area of Identity Theft.

Marketing Our Services

1. Would you agree that if you were the victim of Identity Theft, you would want to have unlimited consultation with an attorney? … because you get that with Pre-Paid Legal.

2. Would you agree that if you were the victim of Identity Theft, you would want to have an attorney write a letter or make a phone call on your behalf? … because you get that with Pre-Paid Legal.


3. Would you agree that if you were the victim of Identity Theft, the company who is at a loss might not believe you and try and come after you in civil court and sue you? … because Pre-Paid Legal provides you with Trial Defense Services

4. Would you agree that if you were the victim of Social Security Identity Theft, you would want to have a tax attorney at an audit with you? … because you get that with Pre-Paid Legal Services!


5. Would you agree that if you were the victim of Character, Driver’s License or Medical Identity Theft, you would want to have access to a nationwide network attorneys to go to bat for you? … because you have that access with a Pre-Paid Legal Plan!

We Don’t Claim to prevent it, we’re just the BEST at putting YOU back together!


• Pre-Paid Legal Product – you are not a representative of KROLL.Pre-Paid Legal and Kroll are in a joint marketing venture.

•Refer to Credit Companies as Repositories not Bureaus.

•We work with one repository on the proactive side … Experian.

•Don’t tell anyone we restore Credit problems – we don’t. If you had bad credit before, the Identity Theft Shield is not the answer.


•Do not make a claim the we cover 100% of the cost of the problem. This is not true and often stated. We offer access to specialists that assist with the problem. A member still may incur out-of-pocket expenses.

•Be hesitant to compare us to other products unless you REALLY know what you are talking about. Plain and simple, you are giving somebody access to the company who did the security for the Vatican with the election of the recent Pope … we don’t need to oversell this just as we don’t need to oversell our legal plan.


•Do not make ridiculous claims like we can “Prevent Identity Theft”. We don’t prevent Identity Theft – we are a proactive monitoring and restoration service.

•Do Not make your own marketing material EVER for the product. All material used for the purposes of marketing a plan must be approved by Marketing Services. 580.436.7424 When in doubt, call Marketing. Plain and simple, we are highly regulated, so don’t mess it up for the rest of us.


• Stay up to date on Identity Theft news.

1. Monday morning Corporate Leadership Call

2. Monday morning Corporate Group call

3. Create a Google news alert. Go to news.google.com and select “News Alerts” and follow the instructions.

• MOST IMPORTANT – Have Fun!



Theft!

youand what

can do!youand what

can do!


Theft!