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HSFPP Weekly Update #118—Avenues for Identity Theft

Message from Bob & Chris: When hearing about identity theft, many people think primarily of someone going into their mailbox or rummaging through their trash and stealing pre-approved credit card applications; they might even think of computer-based Internet crime. However, the most troubling type of identity theft is perpetrated by relatives or acquaintances. Surprisingly, many parents who have bad credit have applied for credit under their children’s identities, ruining their children’s credit in the process, though they probably didn’t intend to. College students can unwittingly be easy targets for identity theft. As we mentioned in Update # 98 (see the link below), the University of Kentucky, like many other universities, until recently used students’ Social Security numbers for their student ID numbers! In addition, all of UK’s computer systems that students might need to log onto still use part or all of users’ Social Security numbers for passwords! In fairness, UK is hardly an exception; many institutions are still learning how best to prevent privacy and security problems for their users.

 

Related Updates:

Update #112 - Online Security and Phishing - 10 January 2005

Update #110 - Online Payday Lending - 13 December 2004

Update #98 - Protecting Your Social Security Number - 20 September 2004

Update #70 - Tax and Identity Fraud Scams - 20 October 2003

 

Website Pick of the Week :

 

The following page on the Federal Trade Commission’s Web site is a one-stop site to answer all your questions about identity theft.
http://www.consumer.gov/idtheft/

 

Activity for Educators:

Have students read this week’s article In the New$... and then answer the questions that follow. Find out in class discussion what your students thought in their answers to the questions.

In the New$.... Identity Theft: How It Happens, Its Impact on Victims, and Legislative Solutions

The article deals with “the methods used by identity thieves to obtain identifying information about their victims. Typically, they obtain the Social Security number and name. That's often all that is needed to apply for credit (called ‘application fraud’). They also might obtain credit card numbers and hijack existing accounts (called ‘account takeover). Other pieces of information useful to identity thieves are dates of birth, mother's maiden name, and driver's license numbers.

• “One such method is the old fashioned way—by stealing a wallet or purse. The thief either uses the information obtained or provides the contents to a crime ring. Even if the individual does not carry the Social Security card in the wallet (and we recommend that they do not), he or she might have an insurance card or student ID with that number on it.
• “Another strategy is to fish credit card slips and loan or credit applications from the trash. Unfortunately many businesses, banks, mortgage companies, and restaurants do not shred these documents.
• “We are seeing an increase in the ‘inside job’ in the workplace—dishonest employees with access to computer terminals connected to one of the credit reporting agencies. They might look for names similar to theirs, or just someone with good credit. Obviously what goes hand in hand with this type of access is the negligence of the company which is permitting such uses in an unmonitored environment.”
• “Sadly, some identity theft is perpetrated by relatives or friends, roommates, household workers like health care givers, and spouses going through a divorce who have a grudge. These individuals obtain Social Security numbers, driver's license numbers, and credit card numbers by having access to their personal effects.
• “Mail theft is another way of obtaining identifying information, as mentioned above. We urge people not to leave their paid bills out at the mailbox for the carrier to pick up. It's better to drop them off at the Post Office. There's also insider mail theft, where credit card mail is stolen from the mail processing areas by postal employees.
• “Then there's the change of address routine. The thief fills out a change of address card so the victim's mail is diverted to the thief's drop box. The thief obtains bank statements and credit card bills, monthly investments reports, and pre-approved offers of credit containing the information necessary to impersonate the victim. The Postal Service has recently initiated changes to make this more difficult.
• “Application fraud is another method. The imposter fills out a credit application—perhaps a pre-approved offer of credit retrieved from the trash—with the victim's name and identifying information and has the credit card mailed to another address. The major credit card issuers say they are now more wary of changes of address, but their efforts are not foolproof.”
• “There are many more schemes. Most victims with whom we have spoken haven't a clue as to how their identifying information was obtained by the imposter.”

Source: Excerpted from “Identity Theft: How It Happens, Its Impact on Victims, and Legislative Solutions,” by Beth Givens, Privacy Rights Clearinghouse [Written Testimony for U.S. Senate Judiciary Subcommittee on Technology, Terrorism, and Government Information, July 12, 2000. http://www.privacyrights.org/AR/id_theft.htm

 

 Activity for Students:

 Read the article, then answer the questions. Be prepared to discuss the material in class.

1. After reading the article, in what way do you think you are most vulnerable to identity theft? What can you do the remedy this?
   
2. How can you make yourself less vulnerable to identity theft in general?
   
3. What can you do during your post-secondary education career to decrease your chances of becoming an identity theft victim? (Look at Update # 98 for help with this question.)

Update #98 - Protecting Your Social Security Number - 20 September 2004

 

Kentucky High School Financial Planning Program

http://www.ca.uky.edu/fcs/hsfp

The purpose of this Web site is to assist county extension agents, credit union educators, and high school teachers in improving the economic well-being of our constituency, beginning with today’s students; and also, to assist teachers in Kentucky in meeting KERA’s goal that all students become technologically literate. Weekly Updates are provided by the University of Kentucky Cooperative Extension Service, and are free to all educators.