New ‘chip card’ technology to add an extra layer of protection

INDIANAPOLIS, Ind. – In 2015, more than 400 data breaches exposing the personal and financial information of Indiana residents were reported to the Indiana Attorney General’s Office, and more than 1,000 identity theft complaints were filed. Nationwide, identity thieves stole more than $18 billion from 17.6 million U.S. victims last year.

Taking a proactive stance, Indiana Attorney General Greg Zoeller launched the “Freeze Identity Thieves” statewide public awareness effort aimed at educating Hoosiers on the single, most effective way to protect their identity: the credit freeze.  The effort featured ads of identity thieves getting “frozen” before they can commit identity theft against someone who has a credit freeze in place. The statewide initiative consisted of television, radio, print and digital spots.

Prior to the campaign kickoff in November 2015, the average number of daily visits to the credit freeze website was 61 per day.  That number climbed to 832 visits per day by the end of December 2015, with the total number of visits exceeding 50,000.  In addition, the digital ads gained over 234,000 views on YouTube.  The “Freeze Identity Thieves” video spot as well as other creative materials can be found at www.IndianaConsumer.com/idtheft.

The free credit freeze prevents any new lines of credit from being opened in someone’s name unless that person lifts the freeze himself or herself. This effectively stops identity thieves from using any stolen information, for example a Social Security Number, to access and rack up peoples’ credit.

“Placing a credit freeze allows us to stay one step ahead of identity thieves,” Zoeller said.  “This quick and easy tool is the number one thing that all Hoosiers should do for protection against fraud and identity theft.”

Another layer of protection surfaced in 2015, and that is the new technology of ‘chip cards.”  Chip card technology was introduced to reduce fraud, particularly in security breach situations.  These new cards generate a unique, one time code for each sale, as opposed to the old cards which encode the user’s information in the magnetic strip.  This technology is a step in the right direction to reduce fraud and is considered a best practice tool.  As the state’s chief consumer protection agency, the Attorney General’s Office is encouraging companies to adopt this technology and take an active role in fraud prevention for their customers. An added protection that guards against fraud when cards are lost and stolen, that is beginning to be adopted, is requiring a pin number along with the chip.  Consumers should consider using credit or debit cards that offer both of these protections.

If unusual activity is detected and someone believes they are a victim of identity theft, they should follow the below steps:

• Report fraud to the police and file a complaint with the AG’s Office at www.IndianaConsumer.com or by calling 800-382-5516.
• Place fraud alerts on credits reports by contacting one of the three credit agencies: TransUnion, Experian or Equifax.
• File a petition in court asking the judge to issue a court order declaring the person a victim of identity theft. That order can be used as legal grounds to clear up fraudulent activity.

More information on placing a credit freeze, preventing identity theft or restoring credit once theft has occurred can be found at www.IndianaConsumer.com/idtheft.

The $1.6 million “Freeze Identity Thieves” campaign was paid for exclusively with settlement funds received by the Attorney General’s Office for violations of Indiana’s consumer protection laws and required by the court to be used in consumer education, including a recent multi-state settlement reached with the three national credit reporting agencies that will strengthen consumer protections in the credit reporting process.