Identity Theft And Identity Fraud How Does It Affect Insurance Claims
Identity Theft and Identity Fraud How Does it Affect Insurance Claims FLORIDA INSURANCE FRAUD EDUCATION COMMITTEE June 2017
PRESENTERS Mariela Perez Pennock Maria Elena Abate SIU Manager Shareholder Olympus Insurance Colodny Fass, PA
Scope of the ID Theft Problem In 2014: 17.6 million people were victims of identity theft Up from 8.1 million in 2010 The ID theft fraud amount was 18 billion Down from all time high of 48 billion in 2010 Every 2 seconds there is a new identity fraud victim To correct ID theft and restore credit, victims spent: An estimated 631 An estimated 33 hours www.colodnyfass.com
Scope of the ID Theft Problem Every 2 seconds there is another victim of identity theft 1 in every 4 individuals that have been notified of a data breach become victims of identity theft. Those who have had SS# compromised in a data breach are 5 times more likely to become victims. It may take up to 14 months for an individual to learn he or she has become a victim of identity theft. www.colodnyfass.com
Top 10 States for Cybercrime Rank State Percent 1 California 12.54 2 Florida 7.56 3 Texas 6.87 4 New York 5.85 5 Pennsylvania 6 Illinois 3.14 7 Virginia 2.88 8 New Jersey 2.85 9 Washington 2.59 10 Ohio 2.48 3.3 www.colodnyfass.com
https://youtu.be/Iy5jiYWuNKo www.colodnyfass.com
Let’s See How Vulnerable We Are to Identity Theft Let’s take this test www.colodnyfass.com
“Identity Quotient” Test I receive several offers of pre-approved credit every week. (5 points) I carry my Social Security card in my wallet. (10 points) I do not shred the pre-approved credit offers I receive (cross-cut shredder preferred) before putting them in the trash. (5 points) I use a computer and do not have up-to-date anti-virus, antispyware, and firewall protection. (10 points) www.colodnyfass.com
“Identity Quotient” Test (cont) I do not believe someone would break into my house to steal my personal information. (10 points) I have not ordered a copy of my credit reports for at least 2 years. (20 points) I do not have a P.O. Box or a locked, secured mailbox. (5 points) I use an unlocked, open box at work or at my home to drop off my outgoing mail. (10 points) I carry my military ID in my wallet at all times. (It may display my SSN.) (10 points) www.colodnyfass.com
“Identity Quotient” Test (cont) I do not shred my banking and credit information, using a crosscut “confetti” shredder, when I throw it in the trash. (10 points) I throw away old credit and debit cards without shredding or cutting them up. (5 points) I use an ATM machine and do not examine it for signs of tampering. (5 points) I provide my Social Security number (SSN) whenever asked, without asking why it is needed and how it will be safeguarded. (10 points) www.colodnyfass.com
“Identity Quotient” Test (cont) I provide my Social Security number orally without checking to see who might be listening nearby. (5 points) I leave my purse or wallet in my car. (10 points) I respond to unsolicited email messages that appear to be from my bank or credit card company. (10 points) I have my driver's license number and/or SSN printed on my personal checks. (10 points) www.colodnyfass.com
“Identity Quotient” Test (cont) I carry my medical insurance card in my wallet at all times. (It displays my SSN.) (10 points) I do not believe that people would root around in my trash looking for credit or financial information or for documents containing my SSN. (10 points) I do not verify that all financial (credit card, debit card, checking) statements are accurate monthly. (10 points) www.colodnyfass.com
Quiz Results 100 points – 50-99 points You are at high risk. Your odds of being victimized are about average. 0-49 points Congratulations. You have a high "IQ.” www.colodnyfass.com
https://youtu.be/TUXEg0JEn6k www.colodnyfass.com
What can be stolen from an individual? Social Security Number Driver License Number Vehicle Identification Number (VIN) Vehicle Registration Credit Cards Bank Account Numbers Internet Transactions Medical Records www.colodnyfass.com
How Are These Stolen Items Obtained? Finding personal information you share on the Internet Dumpster diving Stealing your mail Stealing your wallet or purse Skimming Phishing Smishing Vishing Pre-texting www.colodnyfass.com
Does anyone know what this device is next to the lighter? www.colodnyfass.com
How Are These Stolen Items Obtained? Obtaining your credit report through posing as your employer or landlord. Business or medical record theft Going through the trash of a business to get employee records, customer information and register receipts. Diverting your mail to another location by filling out a "change of address" form. Copying your registration and insurance information from your glove box at car washes or repair shops. Obtaining your personal information at an accident scene. www.colodnyfass.com
Identity Theft vs Identity Fraud www.colodnyfass.com
What to Look For www.colodnyfass.com
Identity Theft The theft of an individual’s data such as their name, birth date, social security number, mother’s maiden name and other personal data. www.colodnyfass.com
Identity Fraud A criminal makes up personal information Using fictitious identity the thief can obtain insurance policies or other types of transactions. Sometimes called “ghosts” in the insurance industry. www.colodnyfass.com
Identity Theft and Insurance Fraud Not only steal someone’s identity, but their reputation. Good Credit Good Policyholder www.colodnyfass.com
In Insurance Personal information is stolen from an individual or an identity is made up Insurance policy is purchased Fraudulent claims are submitted Insurance payments are made Also found in 3rd party claims www.colodnyfass.com
Organized Groups- Auto Steal identities of legitimate people and use them to further their schemes Create new documents based on identifiers Obtain a vehicle often from a salvage yard Apply for multiple insurance policies with different companies Will file claims with the various companies using different accident dates Will often work with a body shop, attorney and medical provider www.colodnyfass.com
Medical ID Theft Fastest growing area of ID Theft in America The average victim may face 20,000 in costs associated with Medical ID Thef In 2010 1.4 million people or 5.8% of American adults were victims of medical ID Theft Inflated/bogus treatment Prescription drugs Free treatment Electronic medical records www.colodnyfass.com
Workers Compensation File false claims for unnecessary treatment or surgeries Obtain disability benefits from one job Create a new identity so they can work and get paid at another job Sometimes they may have 3 or more identities and collect benefits under each identity www.colodnyfass.com
ID Theft/Fraud General Indicators Applicant / insured / claimant is reluctant to use the mail Applicant/insured /claimant is never available to meet in person and supplies all information by telephone Applicant/insured /claimant has been at present address for less than six months www.colodnyfass.com
ID Theft/Fraud Claim Indicators Appears to have “selective memory”. Will remember facts about the claim but not routine personal information, such as mother’s maiden name Has a recently issued policy with a claim filed shortly after the policy goes into effect Lives at same address as on a previous claim, yet the middle initial, date of birth or other minor detail is different from a previous claim Very inquisitive on claim handling procedures www.colodnyfass.com
WHO AM I? - William Jefferson Blythe IV - Demetria Guynes - Reginald Kenneth Dwight - Frances Gumm - Jennifer Anastassakis www.colodnyfass.com
https://youtu.be/Aq dzm4WW68 www.colodnyfass.com
Preventive Measures Keep the amount of personal information in your purse or wallet to the bare minimum. Guard your credit card when making purchases. Shield your hand when using ATM machines or making long distance phone calls with phone cards. Always take credit card or ATM receipts. Whether on the phone, through the mail or over the Internet, don’t give out any personal information unless you have initiated the contact or are sure you know who you are dealing with and that they have a secure line. Before submitting personal or financial information through a website, check for the locked padlock image on your browser’s status bar or look for "https://" (rather than http://) in your browser window. www.colodnyfass.com
Preventive Measures https://www.va.gov/identitytheft/protect.asp www.colodnyfass.com
Action Steps Sound underwriting and claims investigation Investigate questionable claims as identified by indicators and make the appropriate claims decision Train agents to manually scrutinize the forms of identification of applicants Utilize public records / databases to verify addresses and other personal data Permit claims adjusters to obtain verifiable ID from third party claimants www.colodnyfass.com
Stealing an Identity is only “Skin” Deep The Identity Thief is stealing “public” knowledge that the victim let him have We have to look deeper and get such things as photographs, mothers’ maiden names, and/or zip codes for alleged addresses. We strongly recommend photograph identification where ever possible Record complete name (John Quincy Adams) DOB SSN Former Addresses Telephone Numbers including Cell Phone Vehicle Information Former Insurance Company Copy of Drivers License including Photo www.colodnyfass.com
Working Together The Federal Trade Commission Financial Institutions United States Post Office Social Security Administration Retail Companies Credit Reporting Agencies National Insurance Crime Bureau Department of Insurance Internal Revenue Service www.colodnyfass.com
Available Coverages for Identity Theft/Fraud Limited Homeowner’s Coverage Identity Theft Insurance www.colodnyfass.com
Putting you and your girlfriend on your fake drivers license: www.colodnyfass.com
Mariela Perez Pennock SIU Manager Olympus Insurance MPennock@oigfl.com Maria Elena Abate Shareholder Colodny Fass, PA mabate@colodnyfass.com
Scope of the ID Theft Problem In 2014: 17.6 million people were victims of identity theft Up from 8.1 million in 2010 The ID theft fraud amount was 18 billion Down from all time high of 48 billion in 2010 Every 2 seconds there is a new identity fraud victim To correct ID theft and restore credit, victims spent .
identity theft we have seen or believe to be likely. ased on these reviews and our review of the FT 's identity theft rules and its suggested responses to mitigate identity theft, as well as other sources, we have developed our procedures below to respond to detected identity theft Red Flags. Procedures to Prevent and Mitigate Identity Theft
What are Identity Theft and Identity Fraud? The U.S. Department of Justice defines Identity Theft and Identity Fraud as: "Terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain."
IDENTITY THEFT If you are a victim of identity theft, or you suspect that someone is using your name . and your notarized ID Theft Affidavit (located at the back of this kit). Identity theft is a Class D Felony under KRS 514.160. Theft related to credit or debit cards is a Class A Misdemeanor or Class D Felony under KRS 434.550 - 434.730. 2 .
identity theft Goal: prevent identity theft and detect refund fraud before it occurs and assist taxpayers who are victims Actions: Implemented enhanced fraud protection processes for the 2012 filing season Developed a comprehensive identity theft strategy focused on: Prevention and detection Protection Victim assistance
Card Fraud 11 Unauthorised debit, credit and other payment card fraud 12 Remote purchase (Card-not-present) fraud 15 Counterfeit Card Fraud 17 Lost and Stolen Card Fraud 18 Card ID theft 20 Card not-received fraud 22 Internet/e-commerce card fraud los
Identity Theft Unit in response to increased identity theft incidents reported by Indiana citi-zens and to enhance existing efforts to educate Hoosiers about protecting their identities. The Identity Theft Unit assists ID theft victims and provides investigative services to help promote the prosecution of identity thieves.
Jan 19, 2016 · Identity theft is using the identifying information of another person. Identity theft can be in the form of financial identity theft or medical identity theft. Medical identity theft occurs when someone uses another person’s name or other parts of anot
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