U.S. Secret Service on Identity Theft

Last night, I attended a seminar on "Identity Theft" presented by a U.S. Secret Service Special Agent. According to Javelin Strategy and Research (Wall Street Journal -- 2/10/2010), identity-theft is on the rise in the U.S. A record 11.1 million adults, up 12% from 2008, were victims. The total cost was $54 billion, up 12.5% from 2008.

The agent covered a number of topics including: how fraudsters get personal information, how fraudsters use that information, what to do if personal information is stolen and, finally, how to safeguard personal information.

How Fraudsters get Personal Information

According to the Secret Service, some of the methods used by fraudsters to get personal information are:

• Stealing mail (e.g., credit card statements, tax information, etc.)
• Rummaging through trash
• Bribing employees who have access to personal information
• Hacking databases containing personal information
• Stealing personal information from a place of work
• Obtaining a person’s credit report by posing as their landlord, employer, etc.
• Stealing card numbers by capturing data in an electronic “skimming” device
• Stealing wallet or purse
• Breaking into a home to steal personal information
• “Phishing” for personal information via email

How Fraudsters use Personal Information

According to the Secret Service, some of the ways fraudsters use personal information are:

• Call credit card issuers to change victim’s billing address
• Open new credit cards in victim’s name
• Establish new phone service in victim’s name
• Open a bank account in victim’s name and write bad checks
• Counterfeit checks or credit cards in victim’s name
• Authorize electronic transfer of victim’s funds
• File for bankruptcy in victim’s name to avoid debts fraudster incurred using victim’s name
• Taking out a loan in victim’s name
• Seeking employment in victim’s name
• If arrested, giving victim’s name to police

What to do if Personal Information is Stolen

According to the Secret Service, the following four immediate steps should be taken if personal information is stolen:

• Review and place a fraud alert on credit reports
• Close all accounts that may have been tampered with or opened fraudulently
• File a police report
• File a complaint with the Federal Trade Commission

How to Safeguard Personal Information

According to the Secret Service, these are some of the ways to safeguard personal information:

• Setup “strong” passwords for all accounts (e.g., avoid easily available information)
• Secure personal information at home
• Be vigilant when providing personal information on the phone, through email, etc.
• Deposit outgoing mail at post office and remove mail from mailbox promptly
• Shred personal information before placing in trash
• Don’t carry Social Security Card
• Limit amount of identification information and credit/debit cards when going out
• Install virus protection software
• Don’t open files sent by strangers
• Don’t store financial information on laptops
• Delete personal information from computers before disposing

After the presentation, the agent and I spoke about how voice biometrics can help stem the rising tide of U.S. identity theft and fraud. For example, financial institutions could deploy voice biometrics in their call centers. Fraudsters who obtained a victim’s personal information (e.g., mother’s maiden name, date of birth, etc.), would be thwarted when they are prompted to provide a sample voiceprint (which would then be compared to the victim’s base voiceprint). Also, credit card companies could require voice biometrics identity verification, at point of purchase, for certain transactions. These are just some of the ways that voice biometrics could be used to reduce identity theft related crimes.

Who are You? Voice Biometrics Knows for Sure!

Most contact centers rely on a combination of "challenge questions" to verify a caller's identity. Examples of commonly asked questions follow:

What is your mother's maiden name?
What is your address, phone number?
What are the last 4 of your Social Security number?
What is the name of your favorite childhood friend?
What street did you live on growing up?
What was the last name of your favorite childhood teacher?
In what city or town was your first job?
What was the name of your elementary / primary school?
What is the street number of the house you grew up in?
What was the make and model of your first car?
What is the your pet's name?
What is your favorite team?
What is your favorite movie?
In what city were you born?
What is your favorite color?

Contact center agents can't assume that the caller answering the challenge questions correctly is actually who they say they are. For example, the fraudster may be an immediate family member (as shocking as that sounds!) who knows all the answers. Only voice biometrics can positively verify the caller's identity!

Voice Biometrics Can Help Stem the Rising Tide of U.S. Identity-Theft

Identity-theft is on the rise in the U.S., according to recent study by Javelin Strategy and Research (Wall Street Journal -- 2/10/2010). A record 11.1 million adults, up 12% from 2008, were victims. The total cost was $54 billion, up 12.5% from 2008. The article goes on to say that incidents of identity-theft show no signs of decreasing in the foreseeable future.

Voice biometrics can help stem the rising tide of U.S. identity-theft. For starters, financial institutions could deploy voice biometrics in their call centers. Fraudsters, who may have stolen the answers to challenge questions (e.g., mother’s maiden name, date of birth, etc.), would be thwarted when their sample voiceprint is compared to the identity-theft victim’s base voiceprint. Our phones should be ringing off the hook!