Identity Theft

Don't let identity thieves steal your future!

I'm a student; why do I need to be concerned about identity theft? I don't have a lot of money or assets, why would I be a target for identity theft?

Being a student does not safeguard you against identity theft, one of the fastest growing consumer crimes in the nation. Identity thieves don't steal your money; they steal your name and reputation and use them for their own financial gain. They attempt to steal your future! Identity theft literally steals who you are, and it can seriously jeopardize your financial future.

Imagine having thousands of dollars of unauthorized debt and a wrecked credit rating because of identity theft. Also, the unfortunate reality of identity theft is that it is you, the victim, who is responsible for cleaning up the mess and re-establishing your good name and credit. The experience of thousands of identity theft victims is that this frustrating experience often requires months and even years.

In fact as a student, you may even be more vulnerable to identity theft because of the availability of your personal data and the way many students handle this data. A recent national survey of college students found that:

Almost half of all college students receive credit card applications on a daily or weekly basis. Many of these students throw out card applications without destroying them.
Nearly a third of students rarely, if ever, reconcile their credit card and checking account balances.
Almost 50 percent of students have had grades posted by Social Security number.

All of these factors make students potential identity theft victims. In addition, as a student, you may be surprised to learn how many of your daily activities expose you to this crime. For example:
Do you use your personal computer for online banking transactions?
Do you use your personal computer to buy merchandise or purchase tickets for travel, concerts, or other services?
Do you receive credit card offers in the mail? Do you discard these documents before you shred of them?
Do you store personal information in your computer?
Do you use a cell phone?
Do you use your Social Security number for identification?
Do you have a student loan?

You probably answered yes to at least one of these questions about daily transactions that you routinely perform. Each of these routine actions places you at risk of being a victim of identity theft because each of these transaction requires you to share personal information such as your bank and credit card account numbers, your Social Security number, or your name, address, and phone number. This is the same personal information that identity thieves use to commit fraud.

What is identity theft?

Identity theft is one of the fastest growing crimes in the United States, costing victims over $5 billion annually. Identity theft occurs when someone else uses your personally identifying information without your knowledge or permission to obtain credit cards, get wireless or phone products and services, obtain loans and mortgages, get a job, and commit other types of fraudulent or even criminal acts, in your name, leaving you responsible for the consequences.

The identity thief uses key pieces of your information such as Social Security and driver's license numbers to obtain credit, merchandise and services in your name. An estimated 9.9 million consumers were victims of identity theft in 2003, and unfortunately, that number is growing.

If your identity is stolen, you may spend months or even years clearing up the damage thieves have caused to your reputation and credit record. In the time it takes to resolve these issues, you may lose job opportunities and be refused loans for education, housing, or a car. Although you have not committed a crime, been late with a payment, or abused your credit, you are the one who would suffer severe financial consequences as a result of identity theft. As a student or recent graduate, being a victim of identity theft jeopardizes your financial future just as you are beginning to establish your credit record.

Identity theft is a federal crime. The Identity Theft and Assumption Deterrence Act of 1998 made it a federal crime when anyone "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of the Federal law, or that constitutes a felony under any applicable State or local law."

Conflicting Information

LINK

MISUSED Home Page Fraud Hotline
ID Theft How ID Theft Happens Reduce Your Risk
What to Do if a Victim OIG Investigates
School Responsibility Scholarship Scams

School Responsibility

In order to raise your students' awareness of identity theft, we encourage you to download our informational handout and distribute it.

All school personnel are responsible for reporting fraud, waste, or abuse to the U.S. Department of Education, Office of Inspector General. You can make your report at the OIG Fraud Hotline. The regulations governing this responsibility can be found in the verification regulations under 34 CFR 668.16.

"(f) Develops and applies an adequate system to identify and resolve discrepancies in the information that the institution receives from different sources with respect to a student's application for financial aid under Title IV, HEA programs. In determining whether the institution's system is adequate, the Secretary considers whether the institution obtains and reviews--

All student aid applications, need analysis documents, Statements of Educational Purpose, Statements of Registration Status, and eligibility notification documents presented by or on behalf of each applicant;
Any documents, including any copies of State and Federal income tax returns, that are normally collected by the institution to verify information received from the student or other sources; and
Any other information normally available to the institution regarding a student's citizenship, previous educational experience, documentation of the student's social security number, or other factors relating to the student's eligibility for funds under the Title IV, HEA programs;

(g) Refers to the Office of Inspector General of the Department of Education for investigation--

After conducting the review of an application provided for under paragraph (f) of this section, any credible information indicating that an applicant for Title IV, HEA program assistance may have engaged in fraud or other criminal misconduct in connection with his or her application. The type of information that an institution must refer is that which is relevant to the eligibility of the applicant for Title IV, HEA program assistance, or the amount of the assistance. Examples of this type of information are--
(i) False claims of independent student status;
(ii) False claims of citizenship;
(iii) Use of false identities;
(iv) Forgery of signatures or certifications; and
(v) False statements of income; and

Any credible information indicating that any employee, third-party servicer, or other agent of the institution that acts in a capacity that involves the administration of the Title IV, HEA programs, or the receipt of funds under those programs, may have engaged in fraud, is representation, conversion or breach of fiduciary responsibility, or other illegal conduct involving the Title IV, HEA programs. The type of information that an institution must refer is that which is relevant to the eligibility and funding of the institution and its students through the Title IV, HEA programs.”

Identity Theft Resource Center
Dont Get Stung
THE NATIONAL CENTER FOR HIGHER EDUCATION RISK MANAGEMENT

Financial Aid

FAFSA
Federal Laws
MESA College Financial Aid Information - FAQ
FINAID
Policy on Satisfactory Academic Progress and Title IV Student Financial Aid Eligibility
Administrative Capability
Standards of Administrative Capability
Title 34 Student Assistance