INTRODUCTION:

IDENTITY
THEFT
 What is Identity Theft?

The threat of identity and financial information theft is all around.

It is important to identify the most common sources of identity theft
to protect yourself from it and the actions that you should take
should it happen to you.

Identity theft occurs when someone steals your personal

information, such as your Social Security number or credit card
details, to commit fraud or theft. This can lead to financial loss,
damaged credit, and even legal issues, making it important to protect
your personal information
Types of Identity Theft:

Social Security There are several different types of

Identity Theft identity theft, but these are some of
Tax Identity Theft the most common ways that millions
of people in the United States
Medical Identity Theft
become victims of each year.
Employment
h Identity
Theft
Child Identity Theft
Criminal Identity
Theft
 Check your “Compare: Types of Identity
Theft”
worksheet from yesterday to make sure you
have the right answers:
Sources of Identity Theft:
DUMPSTER DIVING
When you are discarding important
documents, make sure you do so
properly. People who dumpster dive
may be able to steal your identity by
looking through the trash. Usually
they are looking for financial
documents, credit card offers,
insurance information, or anything
else of value.
 Sources of Identity Theft:
CREDIT CARD SKIMMING
Credit card skimming is when someone steals your credit card
information in an otherwise legitimate transaction. It could be a
device that has been added to an ATM or gas pump that skims your
number when you insert your card. It could be a waiter or waitress
who scans your card when they it to run after your meal. There are
even devices that can pick up your credit card information as you
walk by through your purse or wallet. You can purchase a special
RFID sleeve or wallet that can block transmissions to protect
these devices. You should be wary of non-bank ATMs, inspect
devices to check for tampering or a piece of extra plastic that
sticks out more than it should, and use your other hand to block
your PIN. Check your accounts often for unrecognizable
transactions!
 Sources of Identity Theft:
PHISHING
Phishing is when someone sends you an email ploy to “fish” for
your information. Usually the email looks like it came from a
legitimate source like a bank or insurance company, but if you
look closer, you can usually tell that hte email address itself
doesn’t look legitimate. If you can tell the email address doesn’t
look right, DELETE it without even opening it. It may give you a
link to click on, or may ask you to insert your username and
password to verify your identity. Banks and other legitimate
companies don’t usually send emails asking for information that
they already have. If the email makes it sound like your data has
been compromised or sounds fishy, try calling the number you have
on file for the company (not the one the email provides) to verify
that it is from them before you enter any personal information
Real Phishing Attempts:
Sources of Identity Theft:
DATA BREACHES
Data breaches can expose your sensitive information
through several different means. The company could have
been hacked by an outside party, could have had an insider
steal the physical or digital information (employee,
contractor, or customer), could have had a portable memory
drive or device stolen, or could have had an unintended
disclosure where sensitive information was posted or sent
to the wrong party on accident. If your information is
included in a data breach, the company is required to notify
you. Apart from the others, obviously your information
could just be stolen outright. It could be by someone who you
know when you left your bank statement or rejected credit
card offer on your counter, or it could be by someone at a
coffee shop on the open unsecured wifi when you decided to
check your bank balance. In general, it is important that
you use caution and are vigilant at all times regarding
your personal information.
 Sources of Protection
against identity theft: Shred

Any document that has an account number, financial

or banking information, travel itinerary, or your
social security number should be shredded. You
should shred important documents like credit card
or insurance offers, paid billing statements, ATM
receipts, sales receipts, paid utility bills,
expired warranties, expired identification
documents (driver’s license, passport). Otherwise,
someone could simply go through your trash and
find out everything they need to steal your
identity or open a credit card in your name.
 Sources of Protection against identity theft:
WAIT to open & Never SHARE personal information
over the phone
You should not open attachments to
unknown emails because opening it
alone can allow someone to install
something onto your computer that
allows them to clone your computer
or steal your data.

If someone you do not know calls you, you should not reveal personal information over the phone.
Sometimes they will tell you that they are from a company that you know, but if they ask you for
information that they already have about you, you should take caution. Ask them to tell you something
they should know about you from your account to verify that they are who they say they are. Sometimes,
they will make it sound like you won something in an effort to get your information to send it to you.
Remember, if it sounds too good to be true, it probably is. The same goes for email - you should never send
personal information like passwords, banking accounts, or social security numbers via email.
 Sources of Protection against identity theft:
SECURE NETWORKS

It is important to always use secure networks.

It is not a good idea to open up financial
accounts while on public WiFi or a shared
computer. On your home network, you should be
using a high level of encryption on your own
WiFi which can be added to your router. You
should also have firewall and antivirus
protection in your computer (which is
sometimes built in) and you should never
download items from suspicious sources.
 Sources of Protection against identity theft:
PASSWORDS
It is important to regularly change
passwords on important accounts. Most
experts recommend that they be changed
at least once per year and that they
should meet certain minimum
requirements. Strong passwords should
be at least 8 characters long, include
numbers, special characters, and both
capital and lowercase letters.
 Sources of Protection against identity theft:
SOCIAL MEDIA
Carefully manage social media to make sure they don’t
overshare or give out more personal information than
they should. They should never post their address, phone
number or current location on social media. They should
be careful not to include identifying information in
photos like their house number or the street name. There
is even location data embedded in some types of photos.
An excited new driver should never post a picture of
their new driver’s license. If they wouldn't want a
random stranger to know the information, they shouldn’t
post it
Sources of Protection against identity theft:
Steps for a Victim
Steps to Take When You're a Victim of Identity Theft:
1. Freeze affected credit cards – Immediately freeze any compromised credit cards
and request new card numbers.
2. Report to the FTC – Visit identitytheft.gov and file a report to get government
assistance in resolving the issue.
3. Check your credit report – Review your full credit report for unrecognized
transactions and report them immediately.
4. Freeze your credit – Contact Experian, TransUnion, and Equifax to freeze your
credit to prevent new accounts.
5. Update passwords – Change passwords for all financial accounts and important
websites. Use strong passwords with at least 8 characters, including upper and
lowercase letters, numbers, and special characters. Don’t reuse passwords
across multiple sites.
6. Secure password storage – Avoid storing passwords in easily accessible places.
Consider using a secure password manager.
 Sources of Protection
against identity theft:
Ponzi Schemes
Ponzi schemes are investment scams that
offer very high returns with very little
risk. Often these schemes include
collecting from new investors to pay past
investors rather than from actual returns.
Usually the person orchestrating it will
try to cash out before the whole pyramid
falls apart. Students should understand
that risk and return are directly related,
and that they should be wary of any
investment opportunity that “guarantees”
certain returns. All investment has risks
involved and those risks should be
presented honestly.
 Sources of Protection
“Pump and dump” is a term that relates
against identity theft: certain types of speculative investments
like stocks and cryptocurrency. In the
PUMP AND DUMP stock market, certain stocks’ prices are
pumped up from rampant hype beyond
realistic fundamental valuations. The
pump can be started by large market makers,
influencers or by members on internet
forums. Once it gets to an unsustainable
level, people will start to dump the stock
to get their returns out as quickly as
possible, causing the price of the stock to
plummet. The most famous recent examples
involved GameStop and AMC stocks from
early 2021. Cryptocurrency markets are
famous for pump and dump schemes as well.
Sources of Protection against identity theft:
ADVANCE FEE SCAMS

"Too Good to Be True": If an offer sounds unbelievable, it probably

is. Be cautious of promises of large sums of money.
Unexpected Contact: Scammers often reach out unexpectedly claiming
you’ve won or inherited money.
Request for Fees: They ask for upfront fees for shipping, account
verification, or other reasons.
Don't Send Money: Legitimate winnings don’t require upfront fees;
real prizes come with no strings attached.
Examples: Common scams include scholarship guarantees, credit card
requests, and "free" seminars asking for small payments.