Archive for the ‘Identity Theft’ Category

The Federal Trade Commission recently issued its annual report on consumer complaints filed in the last 12 months (summary available here, for the complete report, see below).

Identity theft was by far the largest complaint category, concerning 21 percent of all complaints filed. The top fifteen list looks like this:

  • Identity theft (21 percent)
  • Third party and creditor debt collection (nine percent)
  • Internet services (six percent)
  • Shop-at-home and catalog sales (six percent)
  • Foreign money offers and counterfeit check scams (five percent)
  • Internet auctions (four percent)
  • Credit cards (three percent)
  • Prizes, sweepstakes and lotteries (three percent)
  • Advance-fee loans and credit protection/repair (three percent)
  • Banks and Lenders (two percent)
  • Credit bureaus, information furnishers and report users (two percent)
  • Television and electronic media (two percent)
  • Health care (two percent)
  • Business opportunities, employment agencies and work-at-home plans (two percent)
  • Computer equipment and software (two percent)
  • The FTC reports that identity theft complaints also constituted the largest single group of consumer worries last year, but have dropped as an overall percentage of the whole. In addition to the release of 2009’s data, the FTC has posted an animated video detailing how and when to file a complaint (available here).

    A Potential Data Breach You Should Know About

    In another recent news release, the FTC noted that it has warned almost 100 companies that information they store on peer-to-peer websites (used for everything from playing video games to sharing text, audio and video files to conducting online phone calls) may be vulnerable to data breaches.

    Specifically, if peer-to-peer (P2P) software is improperly configured, any sensitive data may be accessible to anyone on the network. This presents a huge security risk, and could lead to identity theft or other costly and frustrating scams.

    What this could mean for you is that, if you have given your personal information to one of the companies in question, your information could be at risk.

    While no companies have necessarily broken the FTC’s regulations regarding storage of sensitive information, some may be at risk for significant future data breaches.

    Additional Resources

    FTC 2009 Full Report on Consumer Complaints.

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Sunday, July 5th, 2009

Protecting Your Money Online

Since the Internet’s explosion into our lives, we’ve been introduced to amazing new ways of interacting with each other, doing business and connecting with the world.

Unfortunately, the Internet has also introduced a variety of new crimes and consumer vulnerabilities.

The Numbers

  • A recently released Consumer Reports survey showed that 20 percent of Americans (that’s one in five!) have been victimized by online criminals in the past two years.
  • In that time, sources estimate that cyber criminals absconded with $8 billion of victims’ money.

These figures are shocking, but they don’t mean that victimhood is unavoidable.

In fact, related studies have shown some important steps you can take to protect yourself, your computer and your personal information - credit card numbers, SSN, bank information, etc. - from thieves.

Dangerous Browsing

So how do online crooks trick you into parting with your cash? Much more cleverly than you might have suspected.

A report released by McAfee called “The Web’s Most Dangerous Search Terms” reveals a lot about how online scams and crimes work.

The riskiest search terms are, in this order:

  • Lyrics
  • Free
  • Web
  • Gear, gadgets, games
  • Olympics
  • Videos
  • Celebrities
  • Music
  • News

What does this mean for you? After you search a term, say, “song lyrics," a list of Web sites will come up. You choose one by clicking on it. If the site is malicious, you could be compromised in a couple ways:

  • Simply visiting the site could infect you
  • Clicking on any links on the site could harm you

What Happens Once You’re Infected

Criminal sites often work by installing spyware onto your computer. You might find that some of your online passwords don’t work, then find yourself redirected to a site on which you have to enter personal information to “confirm” your identity.

Unfortunately, many scam sites look legitimate. And many Americans have spyware on their computers. Some spy programs work by recording password information you type in and sending it to another computer (the criminal’s).

How to Protect Yourself

  1. Stick to sites you know and trust. Understand that, when you attempt to download things for free, you may get much more than what you pay – in an unpleasant way.
  2. Install security programs onto your computer.
  3. Update your computer regularly. Many updates are designed to protect against the latest scams and viruses.

Protecting yourself online is important.

Some people's finances have been ruined thanks to identity theft scams. In fact, some people wind up filing bankruptcy because of identity theft.

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Friday, June 5th, 2009

Expensive Scams & How to Avoid Them

Day-to-day life demands enough of your hard-earned money: between bills, food costs, and unexpected expenses - sickness, injury, Grandma’s 80th blowout bash … - many people like they have a leak in their checking accounts already.

So scams and schemes that drain your funds without giving you anything in return should be avoided at all costs.

Your best bet for doing so? Educate yourself.

Fake Check Scams

A recent report on msnbc.com revealed that scams involving phony checks are on the rise.

Apparently, these scams involve three main elements: you receive a check in the mail, you’re instructed to cash the check and wire money to someone, and you end up losing a few thousand dollars.

Unfortunately, millions of Americans have already been taken in by these scams, which often seem legitimate. Common tricks scammers use include the following:

  • Fake buyer offers: Some checks arrive in response to an ad you’ve placed to sell an item, like a car or a piece of furniture. These may follow an email or letter explaining that the person will send a check for more than your asking amount (RED FLAG!), and ask you to wire the extra money to a third party.
  • Fake lottery wins: Other bad checks come as your “prize money” for a lottery game you never played. After depositing the money, you’ll be asked to pay some taxes and fees to collect. Legitimate organizations would never require you to do this.
  • Mystery shopper tasks: Yet another scheme involves identifying you as a “mystery shopper” who needs to deposit a check and wire most of it (you’ll keep some for your trouble) from a specific location – ostensibly to evaluate that location’s services.

THESE OFFERS ARE SCAMS

As a basic rule of thumb, never agree to wire money to or for someone you don’t know.

This is serious. In fact, one reason some people turn to filing bankruptcy is because they became victims of scammers. Don't be fooled.

And, while many of us consider ourselves fairly savvy about the scams out there, they can be treacherous because they’re often very clever. Sources indicate that:

  • 59 percent of respondents to a poll incorrectly thought that a bank will make sure a check is good before letting you withdraw the money
  • 40 percent thought they couldn’t be liable for transactions made after depositing a bad check

In reality, neither of these is true. In fact, even asking whether a check has “cleared” is not enough to make sure you’re safe: “clearing” only means that you have access to the money involved – it has nothing to do with whether or not a check is valid.

Be an active, informed consumer, and know your consumer rights.

People will continue to develop new scams to trick the unsuspecting. The best thing you can do to protect yourself and your hard-earned cash is to learn as much as you can about what’s out there and how to avoid it.

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Identity theft is a crime that occurs when someone uses another person’s identification information to make credit transactions.

The severity and specifics of identity crimes vary from case to case, but identity theft victims often face frustrating (if not devastating) setbacks to their credit.

In fact, some people are forced to file bankruptcy thanks to these identity theives.

Although there’s no guaranteed way to prevent identity theft, a new (free) service may help you determine your risk for becoming a victim.

Traditional Wisdom: Check Your Credit Report

Checking your free credit report (www.annualcreditreport.com) is one of the most important ways of making sure your not a victim of identity theft.

By comparing action reported by the three major Credit Reporting Bureaus with action you know you’ve taken, you can see whether anyone besides you has been using your personal information.

But, though such checks can help you discover identity theft before it becomes a huge headache, they can only detect crimes that have already been committed.

Calculating Your Risk

The new service from MyIDScore.com claims to predict how likely you are to have your identity stolen. Here’s how it works:

• Visit www.myidscore.com and fill in the personal information it requests (note: giving your Social Security Number is optional).
• Answer multiple-choice questions to verify your identity.
• View your “identity theft risk” score, which ranges from 0 to 999.

Lower scores indicate a lower risk of identity theft victimization.

How It Works

According to the Washington Post, the service works by identifying warning signs that someone has used all or part of your personal information to take credit action.

The service can reportedly detect suspicious actions before actual purchases are made – for example, if a thief applies for and is issued a credit card using your SSN.

Insiders for the site suggest the service for those who have found out that their personal information was compromised in a data breach (data breach updates).

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The crime of identity theft occurs when someone uses another person’s identifying information (including Social Security Number, account numbers and credit card information) to make fraudulent transactions.

Unfortunately, the same technological advances that allow us to pay bills, shop and bank over the Internet also offer identity thieves opportunities to steal our data.

What Happens if My Identity is Stolen?

If you’re victimized by an identity thief, you may find your finances thrown into turmoil – and, depending on how quickly you realize the problem, you may have quite a headache in store.

Identity thieves can do many things, including:

  • make purchases with your credit cards
  • pose as you during a criminal arrest
  • use your SSN to pose as you during everyday life
  • obtain lines of credit using your information

Preventing Identity Theft

There’s no surefire way to prevent identity theft, but you can take steps to make sure you protect yourself as much as possible, including the following.

  1. Check your credit report! This is the single most important preventive measure you can take. Visit www.annualcreditreport.com for a truly free credit report from major reporting bureaus. This report will include information about action on all of your accounts. You’ll be able to see any suspicious activity – and take care of it immediately.
  2. Avoid phishing scams. Be cautious about e-mails. Many scammers pose as legitimate banks or lenders and request personal information for “verification” purposes. Never send sensitive information unless you are SURE you know where it’s going and that it’s secure.
  3. Treat your SSN like gold. Some people, like lenders and employers, actually need your Social Security Number; but most do not. If you’re uncomfortable about giving out your Social Security Number, ask how it will be used and why it’s needed. If you still feel uncomfortable, withhold that information. It is generally considered best practice to never give it out over the internet.
  4. Shred your important mail. Once you’re finished with credit card offers, bank statements, medical reports and other important mail, shred them. Shredding is an easy and effective way to prevent identity thieves from getting their hands on your information.

If you've been a victim of identity theft, a bankruptcy lawyer may be able to help you sort things out.

Learn more about how filing for bankruptcy may help you.

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Wednesday, February 11th, 2009

Scammers Target Online Job Seekers

The FBI issued a warning to online job seekers on Feb. 4., as it and the Internet Crime Complaint Center (IC3) continue to receive numerous complaints about work-at-home fraud.

As millions of Americans who are currently unemployed seek job opportunities, scammers work to devise schemes to take advantage of them.

The FBI warns that criminals operate many work-at-home schemes.

The scammers attempt to gain the trust of online job seekers in an effort to use working relationships to increase the reach of their illegal activities.

Although many people are aware of "phishing" and other identity theft scams, those seeking employment may not recognize this brand of criminal activity until they are already in the middle of it.

In most of the reports to the FBI and IC3, job seekers are offered jobs processing payments, transferring funds or reshipping products.

The victims usually don’t realize they are participating in crimes by cashing fraudulent checks, transferring illegally obtained funds or handling stolen merchandise until it is too late.

Other scams the FBI warned of include "mystery shopper" jobs.

The victims of these schemes are sent fraudulent checks and instructed to cash the checks and wire the proceeds as an audit of a company's service. As payment, they’re told to keep a portion of the funds.

In addition to participating in a crime, the victims of these scams may also unwittingly give criminals their personal information, which can then be used for identity theft.

These "employers" have reportedly used victim's identities not only to open credit accounts, but to commit additional crimes as well.

Richard Kolko of the FBI National Press Office advises everyone who may be seeking a job online to be wary of unsolicited job offers and to report any criminal activity.

The old adage applies - If it seems too good to be true, it probably is.

If you've been a victim of identity theft and your finances have been hurt, filing bankruptcy may help you.

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If someone calls you and says you missed your date for jury duty and could be arrested as a result, hang up the phone. According to various postings on the Federal Bureau of Investigation's website, this is a scam. It works like this:

  1. The scammer calls your house and tells you that you missed your jury duty date and there is a warrant out for your arrest.
  2. The scammer then tells you can avoid arrest with a small fine, payable by credit card.
  3. The scammer will then get your credit card information and any other personal information he can (account number, card number, social security number) from you.
  4. The scammer will use your credit information to open new credit cards, apply for loans, and engage in other forms of identity theft.

The FBI notes that any legitimate employees of the U.S. court system will almost always contact you by mail, and will NEVER ask for sensitive information over the phone.

For details about what to do if you have been victimized by this scam, follow the link above to the FBI's website.

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Sunday, August 26th, 2007

Monster.com Loses 1.3 Million Names

Cyberthieves broke into the job search site Monster.com’s database and stole the personal data of at least 1.3 million people. According to the USA Today, Monster released a statement saying it had shut down the “rogue server” being used to steal data. Monster said only names, addresses, phone numbers and e-mail addresses were found were stored on the infiltrated server.

To target Monster, thieves put out emails and pop-up adverts pitching job-finding services to get victims to click on a false web link. Clicking popped up in an error message and turned over control of the victim’s computer to the intruder. Infected computers are incorporated into a “zombie” network to spread more email spam, deliver more infections, and steal more data. All of the information typed into the victim’s computer, including user names and passwords for online accounts get collected.

Thieves apparently used stolen data to log into a job recruiter’s Monster account and order contact information for 1.3 million users. The data was used to target the Monster.com users with email scams touting Monster’s services.

David Cole, director of Symantec Security Response team, said “The advice to just stay out of the dark corners of the Internet really doesn't hold water any more. The bad guys are going to legitimate websites and attacking people.”

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TJX Companies, the parent company of TJ Maxx, told the Boston Globe that its costs for the largest data breach in corporate history have reached $256 million. The costs include fixing the company’s computer system, dealing with lawsuits and investigations, and other claims stemming from the theft.

Data thieves broke into TJX’s computer system and stole credit and debit card numbers for more than 45 million customers. Authorities say some of the numbers have been used to make fake credit cards that have been used to buy expensive electronics from Wal-Mart and other retailers.

Three months ago, the retailer estimated the damage to amount to only $25 million. Several analysts say TJX’s costs could run as high as $1 billion.

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An Oregon woman won $1 million on a scratch-and-win lottery ticket. Too bad she bought the ticket with a stolen credit card. A Jackson County judge recently ruled Christina Goodenow’s winnings were the proceeds of illegal activity and must be forfeited under Oregon law.

The Seattle Times reported Goodenow had asked lottery officials to keep her win quiet, claiming she was a victim of domestic abuse. Goodenow bought the ticket with a credit card belonging to her boyfriend’s dead mother in 2005. Police learned of her crime two weeks later as she continued to use the stolen credit card. Oregon had already paid Goodenow $33,500 which she has mostly spent.

Although Goodenow pled no contest to forgery, cheating, and aggravated theft, she maintains she bought the winning ticket with cash from her own pocket.

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