Identity theft was the top consumer complaint made to the Federal Trade Commission (FTC) in 2009. New York State ranked 8th per capita in identity theft complaints. While credit card fraud remains the most common form of reported identity theft, emerging categories include government document fraud, benefits fraud and medical identity theft. The New York State Consumer Protection Board (CPB) has been recognized as a national leader in providing identity theft resources and programming.
Medical ID Theft
Medical identity theft is a crime involving the theft of your insurance ID, Medicare or Social Security number (SSn) and the use of this information to obtain medical treatment, equipment or drugs under your name. Larger cases may involve health insurance fraud and bogus payouts.
This crime can result in victims receiving improper treatment because their medical records contain inaccurate information. Victims of medical identity theft may find that their health insurance is exhausted. The financial risks of medical identity theft are similar to other financially-based forms of identity theft. A consumer faces the risk of bills for services he or she did not receive. Depending on the sophistication of the thief, a consumer may not learn about these bills until they show up in collection notices, or as debts on credit reports, ruining credit and exposing the consumer to potential legal liability. Other risks include the loss of insurance coverage, reputation, medical records privacy and time, and the expense involved in clearing one's record.
Evidence shows that medical identity theft is significant. According to a February 2010 study by the Ponemon Institute, 5.8% of American adults - - or an estimated 1.42 million people - - have been victimized by medical identity theft. The average cost per victim is more than $20,000, which can include out-of-pocket payments to a health insurer to restore coverage.
To address this growing problem, the CPB developed a series of innovative, step-by-step recommendations to help consumers reduce the threat of medical identity theft, determine when their medical identity has been stolen, and help them fight back if they become a victim.
Protecting the Name of a Deceased Loved One
There is no greater tragedy than the loss of a loved one. Unfortunately, even dead people are not immune from identity theft. ID thieves sometimes assume the identity of a deceased person for their own financial gain. Scam artists search the obituaries, steal death certificates, or even get the information from websites that offer the Social Security Index file. In some cases, the identity thief may be a family member who is looking to take advantage of the situation.
To help ensure that a deceased loved one is not the victim of identity theft, the CPB issued a guide that family members and executors can follow to protect the personal and financial information of deceased individuals. This information was distributed through a variety of outlets, including public outreach events, the CPB website, the Department of Health, local registrars of vital records, and the newsletter of the New York State Funeral Directors Association.
Active Military Personnel and Veterans
Active military personnel, veterans and their families can be particularly vulnerable to identity theft and fraud due to nonstandard work schedules, lengthy absences from home, frequent relocations and duty assignments to remote locations. These circumstances can make it difficult to monitor credit statements and credit reports, and to check personal data where indications of identity theft and other fraud might appear.
To honor the unselfish service of our armed forces, the CPB developed a resource called "Privacy Basic Training for Armed Forces: Responding to Identity Theft." Included are tips on how to prevent identity theft and how to respond if you become a victim. Special emphasis is placed on the right of service members to place an active duty alert on their credit reports. This publication was distributed at outreach events, through various State agencies, including the New York State Division of Veterans' Affairs, and posted online.
The CPB also partnered with the Division of Veterans' Affairs this past fiscal year on a statewide series of roundtables for veterans 55 and older. The CPB presented information about identity theft, scams and other consumer protection issues.
Free Credit Reports
In 2009, the CPB continued its advocacy for the issuance of rules that would crack down on deceptive advertisements for "free" credit reports that aren't truly free, but come with hidden strings attached - - such as automatic enrollment in a for-pay credit monitoring service.
The CPB's advocacy paid off when the Federal Trade Commission adopted new rules, effective April 2, 2010, intended to protect consumers from "free" offers that come with conditions. Advertisements for "free" credit reports must now contain a prominent disclosure that free credit reports are available -- with no strings attached -- at the government-authorized www.AnnualCreditReport.com or 1-877-322-8228.
Security Freeze Law
Through various means and the media, the CPB alerted consumers about enhancements to the identity theft protection law that took effect January 1, 2010. The provisions were part of the final phase-in of the identity theft legislation that was proposed by Governor David A. Paterson, and advanced by the CPB, in 2008. The law expedites the placement of a security freeze on a consumer's credit report by a credit reporting agency to no later than one business day after receiving such request. Previously, credit reporting agencies had up to three business days from the time of a consumer's request to freeze a report.
ID Theft Victim Quick Response Checklist -- Awareness Campaign with Law Enforcement
To aid individuals who have fallen victim to identity theft, the CPB developed an Identity Theft Quick Response Checklist. Through a partnership with the New York State Division of Criminal Justice Services (DCJS), the checklist was distributed electronically to the New York State Association of Chiefs of Police, the New York State Sheriffs' Association, all New York State District Attorney Offices, the New York State Crime Victims Board, and members of the New York State e-Justice program.
Shred the Word!
The CPB expanded its program of free public shredding days across the State to help people dispose of unwanted records and documents in a secure fashion. Shredding is a reliable way of safely and properly disposing of documents containing personally identifying information that, if discarded improperly, could be a conduit to identity theft. All shredded materials are later recycled.
The Shred the Word! program, first launched in the Capital Region in 2008, was expanded to six locations in 2009, including Troy, Utica, two events in Dutchess County, and Amsterdam New York. Since the program began through FY2009-2010, consumers across the State have shred more than 30,000 pounds of personal records. This fiscal year, more than 17,000 pounds were shredded.
Exercise Your Privacy Options and Other Resources
Now more than ever people are looking for ways to protect their personal privacy. That's why the CPB launched a new initiative called Exercise Your Privacy Options, which offers instructions and steps consumers can take to reduce unwanted marketing messages, take hold of their personal privacy, and reduce their risk of identity theft.
This CPB initiative was launched on National Data Privacy Day 2010. The CPB has a wealth of resources and services for consumers on how to safeguard their personal information, including an Identity Theft Prevention and Mitigation Program in which trained personnel are available to assist New York State residents in dealing with the threat and consequences of this crime.
Census 2010
With the launch of the Census, the CPB issued guidance and media messages to consumers encouraging the public to participate and not to be deterred by the fear of identity theft or falling victim to a scam. The message was that New Yorkers can fulfill their civic duty and safely participate in the Census by taking simple precautions and understanding the census process, including how to verify a census taker. The Agency's work in promoting Census participation was done in association with the Governor's Complete Count Committee, of which the CPB was a member.