Section 1 – Understanding Identity Theft
1.1. What is Identity Theft and How can someone steal an “Identity”?........................................... 1
       1.2. Identity Theft Laws ...........................................................................................................  2
              1.2.1.   Federal Law
           n The Identity Theft and Assumption Deterrence Act
           n The Identity Theft Penalty Enhancement Act
                 1.2.2. State Laws
 
1.3. Different Definitions:
       Law Enforcement and the Financial Services Industry............................................................. 4
 
1.4. General Classifications of Identity Theft.................................................................................... 5
   n Financial Identity Theft
   n Criminal Identity Theft / Impersonations
   n Identity "Cloning" / Assumption
   n Business / Commercial Identity Theft
 
1.5. Identity Theft Statistics............................................................................................................... 6
 
Section 2 – Credit Reports, Specialty Consumer Reports, and Public Records
2.1. Reviewing Credit Reports........................................................................................................... 8
       2.1.1. Free Annual Credit File Disclosures under the Fair and Accurate
                Credit Transactions Act (FACTA)
       2.1.2.  Additional Consumer Rights to Obtain Free Copies of Their Credit Report
       2.1.3.  Credit Bureau Contact Information
2.2. Fraud Alerts: Identity Theft Provisions under the Fair and Accurate Credit
      Transactions Act (FACTA) ……………………….......................……….…………………….…………… 11
      2.1.2. Fraud Alert
      2.2.2. Extended Fraud Alert
      2.2.3. Active Duty Alert 
 
2.3. Credit Report “Freeze”.............................................................................................................. 12
2.4.  Public Records – A Treasure Trove of Information …………….................…………………………. 13
 
Section 3 - Identity Theft Risk Management and Resolution
                    
3.1. What Experts and Others Say About Resolution…...........       .....………………………………...... 15
3.2. Consumer Education and Proactive Risk Management …………................……………………….. 16
3.3. Identity Theft Awareness and Prevention Guide™                      …………..............……………... 17
3.4. The Master Account Register ………………………………………….....................……………………. 18
       3.4.1. The Valid Account Register
       3.4.2. The Personal ID Inventory™
 
 
Section 4  - Consumer Protection Laws - Summaries
4.1.  The Electronic Fund Transfer Act (EFTA)  …..................…..…….…….....………………………..… 32 
        4.1.1.  EFTA Consumer Liability and Reporting Timelines
        4.1.2.  Reporting Unauthorized or Fraudulent ATM or Debit Card Transactions under EFTA
        4.1.3.  The Institution’s Responsibilities under EFTA
 
4.2.  The Fair Credit Reporting Act (FCRA) .……...................…………………………………………….... 33
        4.2.1.  Identity Theft – Fraudulent Account Information Blocking
        4.2.2.   Reinvestigation - Disputes of Account Information Not Related to Identity Theft
        4.2.3.  Timelines for the Inclusion of Accurate Items of Negative Information
        4.2.4.  Credit Card Receipts and Truncation
 
4.3. The Fair Credit Billing Act (FCBA) ……..................……………………….……………………………. 35
       4.3.1. Consumer Responsibilities for Disputing Billing Errors and Fraudulent Charges under
                FCBA
       4.3.2. Creditor Responsibilities upon Receipt of a Notice of Dispute under FCBA
      
4.4.  The Fair Debt Collection Practices Act (FDCPA) ………..............…………………………………… 36
       4.4.1. Notices of a Debt under FDCPA
       4.4.2. Disputing a Debt under FDCPA
       4.4.3. Requesting a Debt Collector to Cease Contact
       4.4.4. Debt Collections: Permitted Collection Actions under FDCPA
       4.4.5. Debt Collections: Prohibited Collection Actions under FDCPA
 
4.5. The Fair and Accurate Credit Transactions Act (FACTA) …………...............…………...……...…. 38
       4.5.1. Free Annual Credit File Disclosures under FACTA
       4.5.2. Changes and Additions to Fraud Alerts under FACTA
                4.5.2.1. Fraud Alerts
                4.5.2.2. Extended Fraud Alerts
                4.5.2.3. Active Duty Alerts
       4.5.3. Access to Specialty Consumer Reports under FACTA
       4.5.4.  Identity Theft Reports under FACTA
       4.5.5.  Requests for Account Documentation under FACTA
       4.5.6.  FACTA Information Disposal Rule
 
Section 5 - Identity Theft Risks and Issues for Businesses
5.1.  Principal Areas of Vulnerability for Businesses ……………...........……….………………..………. 43
   n Business Owners and Executives who are Victims of Identity Theft
   n Employees of the Business who are Victims of Identity Theft
   n Business Customers / Clients who are Victims of Identity Theft
   n The Business as the Victim of Identity Theft
   n Businesses as Holders of Protected Information
 
5.2. When the Business Owner is the Victim of Identity Theft …………...............………………..…… 44
       5.2.1. Credit Facilities, Liquidity
       5.2.2. Personal Guarantees
       5.2.3. Other Effects on the Owner and the Business
 
5.3. Impact of Employees who are Victims of Identity Theft ……….…............………………………… 45
       5.3.1. The Impact on the Business
       5.3.2. Assisting Employees in Managing Their Risk
     n Employee and Personnel Files
     n Employee Workspace and Personal Belongings
     n Use of the Employee’s Social Security Number
 
5.4. Customers / Clients who are Victims of Identity Theft …………….……............……….………..… 47
       5.4.1. Liability of Customer and Card-Issuer
       5.4.2. Bank and Merchant Account Chargebacks
       5.4.3. Double Loss for the Business
       5.4.4. Identity Theft Affidavits, Notifications, and Requests for Increased Account Security,
                Closure, or Documentation
     n Telephonic Notifications from the Customer / Victim
     n Types of Identity Theft Correspondence from the Customer / Victim
 
5.5. When the Business Itself is the Victim of Identity Theft …...……..........…………………...…...…  50
     n Businesses are easy prey and popular targets
 
5.6. Responsibilities of Businesses as Holders of Protected Consumer Information ..……........…… 51
       5.6.1. Holding Protected Consumer Information in the Normal Course of Business
       5.6.2. Legal and Practical Issues for Harm Suffered by Clients and Customers
       5.6.3. Database and Information Security
       5.6.4. Employee Dishonesty
       5.6.5. Business Liability Insurance Limitations: Risk and Coverage
       5.6.6. Policies and Procedures
       5.6.7. Security versus Convenience
 
APPENDIX
 
Appendix A – ICFE Consumer Warning: “Scrutinize Identity Theft Services Because They Are
                      Not Always What You Thought You Paid For” ……………………………..........….……. 56
 
Appendix B – Identity Theft and Fraud Information Resources ……………………..........….…...….... 63 
 
 

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