More Resources Secretary Paige's Remarks Event Photo Website

U.S. Secretary of Education Rod Paige today urged college students to be aware of the growing problem of identity theft, and announced several action steps the Department of Education is taking to help combat this problem. Secretary Paige made the announcement during a press conference at Howard University in Washington, D.C., where he was joined by Howard University President H. Patrick Swygert, Department of Education Inspector General Jack Higgins, Federal Student Aid Chief Operating Officer Terri Shaw and college students.

"Identity theft is one of the fastest growing crimes against consumers," Secretary Paige said. "In 2003, it affected nearly 10 million people and cost victims more than $5 billion. And it can affect all of us—including students.

"Most students are well informed about the basic rules for protecting their physical well being and possessions—rules like walking in well-lit areas, traveling in groups and locking their doors and windows. But too many students don't know the basics of protecting their identity. Fortunately, with the proper safeguards, students can secure their personal information and prevent criminals from abusing their good name and record.

"That's why we're launching an intense effort to reach college students and graduates about how they can guard against identity theft. Victims of identity theft can spend months or even years clearing the damage caused to their reputations and credit records. During the time it takes them to resolve these issues, they can possibly miss out on job opportunities and be refused student loans, a mortgage or car loans. We want to help students prevent those headaches."

The department is launching a new Web resource—www.ed.gov/misused—that includes comprehensive information for students and families, including tips for protecting their identity and advice on how they can detect identity theft. In addition, the department has a hotline—1-800-MISUSED-for anyone who suspects student loan fraud. And, the department of Education's student aid publications have information about identity theft, and soon the student loan billing statements will include tips for protecting against identity theft.

The new website warns that college students are particularly vulnerable to having their Social Security numbers and driver's license information stolen—troubles that can lead to thousands of dollars of unauthorized debt, wrecked credit ratings and even possibly lost job opportunities. Months, even years, could be needed to repair the damage.

"This is a very important resource for students all over the country because they are targeted groups for credit card companies and others interested in obtaining their personal information," said Howard University President H. Patrick Swygert. "As we make more and more technology available to them, we have an equal responsibility to make them aware of the pitfalls that go along with the territory. Identity theft is one of those pitfalls and certainly, one of the most devastating. The Department of Education is to be commended for this initiative and I sincerely hope that our students will visit this website frequently and do their part to protect themselves."

The website includes a number of tips for protecting your identity, including:

• Memorize your Social Security number and passwords, and don't record your password on papers you carry with you.
• Don't use your date of birth as your password.
• Shred pre-approved credit applications and other financial documents before discarding them.
• Order credit reports every year from each of the major credit reporting agencies and thoroughly review them for accuracy.
• Never give personal or financial information over the phone or Internet unless you initiated the contact.
• Don't carry your Social Security card or birth certificate with you.
• Report lost or stolen credit cards immediately.
• Check your monthly credit card and bank statements for unusual activity.
• Use a firewall program on your computer, especially if you leave your computer connected to the Internet 24 hours a day.
• Do not download files sent to you by strangers or click on hyperlinks from people you don't know.

"Although you have not committed a crime, been late with a payment, or abused your credit, you are the one who suffers the 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," Secretary Paige said.

Credit card offers, dormitory burglaries, inexperience in financial management skills, and even the way many professors post grades make students extremely exposed to identity theft.

For example, a recent national survey found that 48 percent of respondents stated that they keep personal financial information in their dormitory room, and 31 percent said their room or a room in their building had been burglarized, risking both their personal information and belongings to theft.

"Working together, we will ensure that our nation's students are aware of the seriousness of identity theft and understand the role they play in preventing misuse of their personal information," Paige said.

In addition to the website, anyone with information about identity theft involving Department of Education funds can call 1-800-MISUSED or email the department's Inspector General's office at oig.hotline@ed.gov.

The Department of Education's Office of Inspector General has criminal investigators with offices nationwide. Special agents for the office conduct identity theft investigations that involve federal education funds in conjunction with the U.S. attorney's office.

Federal Student Aid manages and administers the postsecondary student assistance programs authorized by the Higher Education Act of 1965. This year, FSA will deliver approximately $60 billion in financial aid to more than nine million students and families. In 1998, FSA became the federal government's first performance-based organization, requiring FSA to improve the delivery of federal financial aid services by developing a market-focused and results-oriented management approach.

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