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I am pleased to discuss the Department of Education's efforts to help college students and graduates protect themselves from identity theft. Identity theft is one of the fastest growing crimes against consumers. In 2003, it affected nearly 10 million people and cost victims over $5 billion. And it can affect all of us.

Identity theft occurs when a criminal uses someone else's personal information--a name, social security number, credit card number or other identification--without permission to commit fraud. Identity thieves strike in many ways, including:

• Stealing wallets and purses to get personal information, such as a social security number;
• Stealing mail, including credit card solicitations and bank statements;
• Scamming people into giving up personal information on the Internet; and
• Illegally requesting birth certificates or credit reports.

With stolen information, these thieves try to obtain credit cards, telecommunications products, loans and mortgages, and even jobs. If successful, the thief gets the goods, and the victim carries the consequences. Victims could be denied credit, lose job opportunities or even be arrested. Identity-theft crimes can take months or years to clean up.

Why is identity theft of particular concern for students and recent graduates? There are two main reasons: One, they are often just starting to take responsibility for their finances and are still establishing their credit history. Two, although they typically don't have many assets, they have sources of credit, such as credit cards, that criminals find tempting. Identity theft can trip students and recent graduates just as they are gaining their financial footing.

College students can be particularly vulnerable. Almost half of college students receive credit card applications every week. If not destroyed, these applications can be stolen and used to open an account in the student's name. A recent survey found that a large percentage of students--about one in three--rarely reconcile credit card and checking account balances, meaning fraud can go undetected for months. Additionally, students often use the Internet to make purchases and manage their finances, exposing themselves to online fraud.

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

That's why we have come together today to inform college students and graduates about ways to guard against identity theft. The Department of Education has a multipronged public awareness campaign aimed at college students and graduates:

• Two popular Department publications, the Student Guide and the High School Counselor's Handbook, have newly added information on guarding against fraud when applying for a student loan. These brochures are distributed to counselors and millions of students across America.

• The Department will soon include helpful tips on student loan billing statements on avoiding identity theft and protecting student loan information. This is a new initiative that will reach almost 2.5 million borrowers each month.

• And we are happy to announce a new Web resource on the Department's Web site: www.ed.gov/misused. This Web resource contains comprehensive information for students, including tips for protecting personal information and advice on how to detect and combat identity theft. A few minutes spent reviewing the site now can save hours of future headaches.

• Furthermore, the Department has a hotline for anyone who suspects they are the victim of student loan fraud. They should immediately contact 1-800-MIS-USED so that their claim can be investigated. The Department's Office of Inspector General has special agents who are available to examine cases of fraud.

I want to stress that every student should feel secure in obtaining a federal student loan. With a few elementary precautions, the application process is convenient and safe:

• When applying for federal student aid using the Free Application for Federal Student Aid (FAFSA), keep your secret PIN number secure. Don't reveal it to anyone.

• Review your financial aid award documents. Keep track of the amount of aid you applied for and received.

• Shred receipts and copies of documents with personal information.

I urge all students: pursue your education and protect your finances. Identity theft is a problem--but it is one that can be avoided with a few simple precautions. Please, spend a few minutes reviewing the information on the Department's Web site. And then follow the common-sense advice. Help secure your future today.

Thank you. We are happy to take your questions.

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