ID theft : ID theft protection

Health Care Reform Fraud

IdentityTheft — Sun, 13 Jun 2010 07:01:00 GMT

Identity thieves have already begun to exploit provisions in the health care reform bill aimed at closing the Medicare “donut hole”

One provision of the health care reform bill is to start closing the Medicare “donut hole” - the coverage gap that many seniors have in their prescription drug coverage.

What exactly is the “donut hole?”

For seniors who must take expensive prescription drugs, or a combination of many drugs that add up to a large expense, Medicare rules state that they must pay the first $310 worth of drugs (the deductible), and then Medicare pays for the next $2,520 with only a small copay paid by the consumer. Once the total cost of $2,830 (the deductible plus the $2,520) is reached, they become responsible for 100% of the cost of their drugs until their total drug cost reaches $4,550. Once that total is reached, Medicare picks up the cost of the drugs they need for the rest of the year, minus the co-pay.

The $1,720 coverage gap is called the Medicare “donut hole.”

As part of the health care reform legislation passed in March of this year, $250 checks have begun going out to those who have already begun paying the total cost of their drugs due to this coverage gap. The amount of the Federal payments will increase each year – until 2020, when the gap will cease to exist.

The government keeps track through its drug usage database of how much Medicare beneficiaries have already spent on their drugs, and as such, it knows exactly the point when the senior has reached the coverage gap. Once a senior has reached the gap in coverage, a check is sent without the consumer having to do anything at all.

Unfortunately, seniors have long been the target of crooks and frauds. Here are some of the ways criminals are mis-using this program, as well as some suggestions about how to prevent the crime:

Phone calls: Someone pretending to work for the government or an aid agency calls with an offer to help the consumer “apply” for the $250 check.

Home visits: Someone comes to your door asking for information in order to "verify that you are eligible" to receive the reimbursement check. You may be asked to provide your social security number, bank account numbers or other personal data - which can result in fraudulent bank transactions or identity theft.

Internet pop up ads: Ads inviting you to fill out an application for your rebate check may “pop up” on some websites.

No doubt there are additional ways that criminals will think of to steal the money. If you are a senior or receive Medicaid drug coverage, you will automatically receive your check at the right time, and there is no information you need to provide, and nothing you need to do to get it.
If you know someone who is likely to get a check – advise them to ignore such scams.
If you or someone you know is contacted by scammers attempting to gain your personal information, report this fraud by calling 1-800-MEDICARE or by going on line to www.stopmedicarefraud.gov.

Synthetic Identity Theft

IdentityTheft — Sun, 25 Apr 2010 10:57:00 GMT

I thought I'd heard them all, but here's yet another twist on the crime of identity theft

Never underestimate the creative power of the criminal mind.

After seemingly endless stories about ATM theft, gas pump skimming, stolen laptops, data breaches at banks, insurers and hospitals – as well as the ever-present drumbeat of warnings about “low-tech” identity theft from stolen mail and dumpster-diving thieves, it would seem that identity thieves should have run out of ideas to steal your personal information by now.

Definitely Not …

The newest form of identity theft is called “synthetic” identity theft. Synthetic identity theft occurs when thieves create new identities either by combining real and fake identifying information to establish new accounts with fictional identities or to create a brand new identity from completely fake information.

For example, a thief may use a real Social Security number, but tie that number to a fictional name – creating a “new person.” The thief can then get credit, open a bank account, purchase a home or anything else using the new, fictitious identity. The thief can also go as far as to establish a credit history for a fake person by establishing credit accounts and an employment history – and can further muddy the waters by using multiple fake identities – sometimes tying them together in an intricate web that is hard to catch or decipher. Many current anti-identity theft systems search for pieces of your identity and match them together for confirmation – with synthetic theft, all the “bits and pieces” of personal information confuse the system — since the computer programs are designed to try and “match” a person’s personal and financial information (their name, address, Social Security number). If the computer doesn’t get a true “match” it moves on to the next record – often without identifying a threat.

Florida Identity Theft “Victim Kit”

IdentityTheft — Wed, 14 Apr 2010 09:22:00 GMT

Floridians who fall victim to identity thieves have access to a step-by-step resource to help them minimize their financial exposure

The State of Florida has published online a “victim kit,” designed to help victims of identity theft through the complicated process of resolving their case and clearing their name. While there are many general identity theft resources available both in print and online, the website of Florida Attorney General Bill McCollum adds that “this kit was specifically developed to provide assistance to Floridians who are identity theft victims, as well as individuals in other states who had their personal information fraudulently used in the state of Florida.”

Anyone who has had their personal or financial information stolen and used fraudulently knows that navigating through the legal system can be a lengthy and often confusing process. Contacting law enforcement, creditors, and financial institutions, and keeping track of the actions you take, the calls you have made (and who you spoke with) and any correspondence is a daunting task by itself.

When your identity is stolen your personal and financial data can be misused in a variety of ways. If you have become aware of a theft of your personal information, or if you are concerned about the possibility, there are steps you can and should take to protect yourself.

Report any incident of suspected identity theft to the fraud department of the three major credit bureaus.
Contact the fraud department of each of your creditors.
Contact your bank or financial institution.
Report the incident to law enforcement.

For more details on other steps to be taken, visit the Florida Attorney General's web page at http://myfloridalegal.com/identitytheft

Be Careful of Census Scams

IdentityTheft — Tue, 30 Mar 2010 11:38:00 GMT

The 2010 Census is “Prime Time” for identity theft!

Its time for the 2010 Census. Government officials, census workers and volunteers are busy collecting information that can affect the funding available for many state and local programs, as well as determine the electoral makeup of the country, The Better Business Bureau has warned that census time is a prime time for identity thieves who try to trick people into giving out sensitive personal information.

If you are contacted by someone claiming to be a census worker, be aware that:

The Census Bureau does not conduct the Census via the Internet or send e-mails to individual Americans about participating in the Census. The Census Bureau does not collect your full Social Security number, credit card, bank, or other financial account information (including PIN codes and passwords), money or donations or make requests on behalf of a political party or candidate.

Legitimate census data collection takes place by mail, telephone or in-person by a census worker carrying identification as a U.S. Census worker. Mailed requests from the Census Bureau are marked as having come from the U.S. Census Bureau and as OFFICIAL BUSINESS of the United States If a “census” form asks for financial account information, passwords, or a Social Security number, it’s a phony.

In some areas, Census workers will start going door-to-door in May to visit households that didn’t return questionnaires. Legitimate representatives will always carry a valid Census Bureau ID badge featuring their name. The BBB suggests that you ask for a picture identification (such as a driver's license) to confirm the census worker’s identity.

Beware Ringtone Scams

IdentityTheft — Tue, 16 Mar 2010 08:13:00 GMT

The market online and electronic market for ringtones is full of scams.

Leave it to resourceful identity thieves to find a way to take advantage of our need for the latest ringtones and applications for our cellphones. Thieves have found a way to steal identities using ringtone web sites.

Kids make especially good targets.

Teenagers with cellphones invariably have to have the latest and coolest ringtones and, even worse, will almost always download “free” items without a second thought. Often, sites that advertise free ringtones will attach viruses to your download in order to steal personal information. or kids are enticed to text free ringtone sites to get free downloads.

The following tips can help keep you safe:

Teach your kids about identity theft and how thieves use the information they collect.

Use the ring tone that came with your phone. This isn't fun and it definitely isn't cool, but it's the only sure-fire way to avoid identity theft with ringtones.

Don't download ringtones from free sites. Too often, these sites attach viruses to your download, which can then steal personal information.

Don't send text messages to to sites in order to receive free ringtones. A common scam is to charge a fee or subscription that will appear monthly on your cellphone bill.

Don't keep sensitive personal or financial information on your cellphone (bank info, credit card numbers, Social Security numbers or dates of birth). The less personal information there is on your phone, the less thieves have to work with if you do get a virus on your phone.

Only buy your ringtones from established cell phone service providers.

If you do find yourself the target of ringtone thieves, file a complaint with the Federal Communications Commission (FCC) – click on this link.

"Password Protected"

IdentityTheft — Sat, 13 Feb 2010 09:32:00 GMT

Creating strong passwords to protect against identity theft.

In the battle to keep our personal and financial information out of the hands of identity thieves, passwords are frequently the last line of defense. To an identity thief, there is a virtual treasure-trove of information stored online. Web-based e-mail programs, online banking and brokerage sites, photo and document storage sites all store personal data and require a username and password to gain access. Some sites, such as online banking accounts, may provide additional protection through “secret questions” or other security features.

Even though I know all this, my number one criteria when choosing a password is making it easy to remember! I am guilty of using the same password for every site I can. Sometimes I have to choose a password for a site that requires that the password be formatted a certain way (i.e., must be at least 6 letters, with one number and one capital letter). Even though I know this is to help me choose a more secure password, I find it terribly annoying, mainly because I cannot use the one I use for every other site!

I suspect that I am not alone. Experts tell us that password-protected web sites are becoming more vulnerable because often people use the same passwords on numerous sites. One study found that over 30% of users recycle the same password for every site that they access.

A strong password can help protect against hackers and identity thieves. Here are some suggestions that I've found to help come up with passwords that can aid in preventing unwanted invasions of privacy, fraud or identity theft.

Don’t use personal information. Any part of your name, birthday, Social Security number, or similar information for your loved ones is a bad password choice.
Avoid sequences of letters or numbers such as “123” or “xyz.” Just as bad are sequences that occur via keys next to each other on the keyboard, such as “qwe.”
Most passwords are case sensitive, so use a mixture of upper case and lower case letters, as well as numbers.
If the site allows, use special characters such as $, #, and &.
The longer the password, the better. There are computerized “password cracking” programs out there that can easily defeat a password of seven characters or less.
Use different passwords for different accounts and applications. That way, if one password is breached, your other accounts won’t be put at risk too.
Write your passwords down and keep them in a secure place (secure places do not include post-it notes on your monitor, under your mouse pad or, worst of all, in a folder on your hard drive!)
Common words are easier to break than passwords that are not actual words. One good way to create a strong password is to pick an easily remembered word and misspell it or add special characters and numbers to it.
Many sites ask you to choose a security question, which is used when you have forgotten your password. While this can be a helpful feature, be careful when choosing your security question, as this can be a “back door” that lets unauthorized users gain access. Don't choose a question that can easily be answered by others.

Microsoft has an online password strength checker at: www.microsoft.com/protect/yourself/password/checker.mspx. If your password is weak, change it! Remember, passwords are there to keep your personal and financial information secure – and even though they are sometimes a pain in the $@#!*, they are necessary tool in the battle against fraud and identity theft.

ID Theft: Protecting Yourself

IdentityTheft — Thu, 11 Feb 2010 10:04:00 GMT

What should you do to protect yourself against identity theft?

According to the Identity Theft Resource Center (ITRC) in San Diego, up to 7 million people are victims of identity theft each year … this translates to more than a dozen people per minute! Thanks in part to the internet revolution and the increase in the use of credit and debit cards over the past few decades, a greater number of people have access to our sensitive personal information, which has dramatically increased the risk of identity theft. Identity thieves are often highly sophisticated criminals, using technology to steal your personal information … instead of dumpster diving or stealing mail.

To protect yourself against identity theft, shred or burn papers with credit card or bank account numbers, Social Security numbers or other personal information before throwing them away. Don't have your Social Security Number printed on your checks. Make sure that you check your credit report at least once per year to make sure it doesn't have accounts you don't know about. It's also a good idea to check your credit report before applying for a loan, if you've been denied for credit, or if you're planning to take steps to repair your credit. Under federal law, consumers who believe their identity has been stolen are eligible to receive a free credit report. These reports can be easily ordered on-line from all three major credit bureaus, or from a site like FreeCreditReport.com. Carefully read through each line of your reports, taking note of any discrepancies, unfamiliar accounts or credit inquiries, or any incorrect information (wrong home addresses, phone numbers, etc).

If somebody acting in your name illegally openes new credit accounts or applies for unsecured loans, you can ask the credit agencies to issue an initial fraud alert on your credit report. This is the same step you would take if, for example, your wallet has been lost or stolen. An initial alert requires companies to contact you to confirm requests for new accounts before they are established. In the event of more serious theft, you can have an extended alert placed on your credit report,which lasts for seven years, and entitles you to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. Consumer reporting companies will remove your name from their lists for pre-screened credit offers for five years. Contact all of the creditors who have issued fraudulent accounts to dispute any charges. By law you have 60 days from the day you receive your credit card or banking statements to contest any charges; after that you may be held liable for any false charges, regardless of whether or not you actually incurred them! Some creditors will require you to file a police report. Close all accounts that you know or suspect have been tampered with.

Be alert for e-mail “phishing” scams. "Phishing" is the attempt to obtain personal information via fraudulent email. These e-mails look real and are an attempt to scam you into surrendering private information. The e-mail will usually contain a link to a bogus Web site where you will be asked to update personal information, such as passwords and credit card, social security, and bank account numbers. Reputable organizations will almost NEVER send you and e-mail asking you to send personal information! If you do receive such an e-mail and are not certain whether is is fraudulent or not, call the company involved.

Unfortulately, identity theft is a fact of life and repairing your damaged credit and reputation can take months or years and cost you a lot of money. Be alert to possible fraud and take preventive action to minimize your chances of becoming a victim. Take the ID Theft quiz at LifeLock.com to see if you are at risk for identity theft!

Preventing Identity Theft

IdentityTheft — Sat, 30 Jan 2010 10:18:00 GMT

Some simple steps you can use to prevent identity theft.

Identity theft can occur when someone uses your personal information without your permission. Identity theft is a major problem in today's society and it can affect anyone. In order to prevent identity theft it is crucial that you do everything you can to protect your personal information. Identity theft can cause long-term financial harm to you because, once the thief has enough of your personal information, he or she can commit financial crimes such as applying for and receiving credit cards and loans in your name or making significant purchases on your credit cards or other financial accounts. This can damage your ability to get credit on your own for years afterwards. People whose identities have been stolen can spend years cleaning up the mess thieves have made of their good name and credit record, not to mention a significant amount of money! While your financial good name is damaged, you may miss out on job opportunities, be refused loans for a home or car, or even get arrested for crimes you didn't commit.

Identity theft is a shockingly simple crime to pull off. According to a survey commissioned by the Federal Trade Commission (FTC), an estimated 10 million Americans become victims of some form of identity theft each year. The estimated loss in business revenue is estimated at more than $33 billion annually.

Ideally, prevent identity theft before it happens to you! Keep a eye out for warning signs: a denied credit application notice, collection agency calls, a revoked drivers license, or changes to your bills that you did not initiate. Prevent identity thieves from getting your personal information in the first place. Some of the typical ways that thieves obtain their information are by:

stealing your wallet or purse to get your identification and credit cards.
"dumpster diving” - digging through your trash.
stealing your mail, especially bank and credit card statements, pre-approved credit offers, new check deliveries, or your tax information.
Posing as you and completing a "change of address form" to divert your mail to another location.
Pretending to be a legitimate business or government official to scam information from you.

You can get a more complete list of the ways that identity thieves steal information from the Federal Trade Commission web site: http://www.ftc.gov/.

Some of the steps you can take to avoid becoming a victim of identity theft are to:

Buy a shredder. Shred all communications from doctors and other health care providers, banks and financial institutions and anything else that contains personal information. Be sure to shred any credit offers you get in the mail.
Keep track of your credit cards. Always put them back in your wallet or purse immediately after using them. Keep your receipts; when you get your credit card statement, match the receipts to the transactions listed on the statement. Call your credit card company immediately if there are discrepancies.
Never put your outgoing mail in your mailbox. Take it directly to the post office instead.
Update the firewall, spyware and virus protection software on your home and business computers.
Do not carry your Social Security card with you. Give out your Social Security number only when absolutely necessary. If you can, only give out the last four digits of you number.
Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know who you're dealing with.
At least once a year contact the three major credit bureaus to obtain copies of your credit reports and examine them carefully for any discrepancies.

If you do have the misfortune to become a victim of identity theft, there are some concrete steps you can take to get your life back on track. Immediately stop all payments on your credit and bank cards. Close your existing bank account and open new ones. Report an identity theft by calling the FTC's ID Theft Hotline-1-877-ID-THEFT (438-4338) or use the FTC's online ID Theft Complaint form (http://www.consumer.gov/idtheft/index.html).

In today's culture identity theft is something that everyone needs to know how to prevent. Make sure that you know the warning signs of identity theft and know what to do if it happens to you.

Be Careful Of Identity Thieves At Tax Time!

IdentityTheft — Mon, 11 Jan 2010 04:37:00 GMT

Once again, tax season is upon us. The documents and emails we send and receive at this time of the year contain a wealth of information for identity thieves: your name, address, social security number (as well as those of your dependents), bank and investment account information, etc. For an identity thief, tax time is a golden opportunity.

Its vitally important that you safeguard your personal financial information and not become a victim of identity theft this tax season. There are some concrete steps you can take to keep your personal data out of the wrong hands.

Understand what the IRS requires. According to the IRS web site, you will never receive an email or telephone communication from them requesting personal information. The IRS does business through the mail. If you receive an email or phone call that purports to be from the IRS, don’t respond to it. If you do receive what you believe to be a fraudulent phone call, call the IRS assistance line at 1-800-829-1040. If you receive an email that appears to be from the IRS, forward it to phishing@irs.gov. Once you file your tax return, the IRS will not ask for additional forms or information in order to process your return.

Keep your paper documents safe. Always keep your tax paperwork in a safe, locked location. Financial documents don’t belong in a briefcase, handbag, purse or in your car. They can be lost or stolen if left unguarded for even a few minutes. Invest in a document shredder and put papers you no longer need through it. Identity thieves love it when you leave receipts, papers with credit card account and Social Security Numbers (such as health benefit payment and income reporting forms), and loan documents where they can find them, like in your trash! All it takes is a few documents with your personal information on them for a thief to open a new account in your name. Even a seven-year old receipt can often be used by a thief.

Protect your computer. If your computer is linked to the internet, make sure to have updated firewall, antivirus, and spyware software to protect you from identity theft hackers. e sure to password protect your files. Since many taxpayers file their taxes and store financial information on their computer or online, it is critically important not to let thieves steal your information electronically. Even if you do not file online, identity thieves can still get access to important information through an unprotected computer.

Watch for email scams. Tax time is an especially fruitful time for email scams. If you receive an email asking for your Social Security Number or other financial information, delete it or send it to the Federal Trade Commission (FTC) at spam@uce.gov for investigation. In some cases, you will receive an email stating that you are being electronically audited or notifying you of a refund and asking for bank account information. Remember – the IRS does not send emails to taxpayers!

Watch your mail. Uncollected mail sitting in a mailbox is an open invitation for an identity thief. If you plan on being away from home, arrange with the postal service to have your mail held until you return (you can even do this online!). When mailing your tax documents, always take them directly to the Post Office. Don’t ever leave tax documents in an outgoing mail box at work.

Be careful when hiring a tax preparer. Its always a good idea to check out tax preparation companies before entrusting them with your personal data! Many online tax preparation companies spring up around tax time, some of them nothing more than elaborate scams. Investigate tax preparation companies with the Better Business Bureau, especially new or seasonal offices. Unfortunately, even reputable tax preparation companies can hire an identity thief. Check to see how your information will be stored, what computer security software is used, and if the person working on your taxes has undergone a thorough background screening. Trust your instincts. If you see personal papers displayed on desks or are uncomfortable or doubt the firm’s commitment to protecting your private information, go elsewhere.

Tax time can be stressful. Don't make it worse by letting your personal financial information fall into the wrong hands. Be careful, and aware of the risks. Avoid identity theft. Protect your personal data - in the real world and online.

Identity theft protection for elderly family members

IdentityTheft — Mon, 10 Aug 2009 21:26:00 GMT

As my mother’s Alzheimer progressed, she lost more and more stuff. Her watch, eyeglasses and rings always showed up eventually, but never her lost wallets.

She was lucky and no one used her credit cards or identity. But, Alzheimer or no Alzheimer, seniors are frequently easy targets for ID thieves. Here are a few steps you can take to protect someone you love.

For some insane reason, Medicare cards have the owners’ Social Security number on them. To get around this, make a copy of the card, and blacken out the last digits of their SSN on the copy. This can be safely carried in a wallet, ensure medical care, and allow that the original be locked up safely.
Make sure elderly family members order their credit reports annually. They can be hard to interpret, so offer to help review them.
Recommend that your loved one never donate to a charity before checking it at CharityNavigator.org. If the charity checks out, it’s safe to make a contribution, otherwise report it to the police.
Sign your loved one up on the Do Not Call Registry to prevent spammers from calling.
Cut down on junk mail and pre-approved credit offers by calling 1-888-567-8688. The less they receive, the less dumpster divers have to go on.
Be sure your parents or grandparents have a good crosscut shredder. If they don’t use it, tell them to save the mail, and you can shred for them when you visit.
Replace their old mailbox with a locking one. Advise them to use public post office boxes for outgoing mail.

FTC delays Red Flag Rules enforcement ... again

IdentityTheft — Fri, 01 May 2009 18:01:00 GMT

The Federal Trade Commission has granted yet another delay in the enforcement of the Red Flag Rules, pushing the deadline to November 1, 2009.

The initial compliance deadline was November 2008, but after five years of procrastination, retailers, health care providers and law firms that extend credit claimed to be surprised to learn they were considered creditors, and asserted they needed more time to devise their identity theft recognition and prevention strategies.

In response to their well-funded hue and cry, the FTC allowed creditors another six months to comply and moved the deadline to May 1, 2009.

The red flags businesses and creditors are to watch for are pretty straightforward:

Identifying documents that appear fraudulent (If it looks like the fake ID you used to buy beer as a college student, consider that it might be a fake ID.)
Photo IDs that don’t match the person offering them (If a white man offers a driver’s license with a picture of a black woman on it, that should be a red flag.)
Repeated or unreported changes of address (An established client’s address is changed to that of a storage facility.)
Unusual use of established account (a client’s increase in credit usage or change in usage pattern, e.g., a customer who historically paid off low account balances monthly suddenly exceeds allowed maximum balance.)
Fraud alert or freeze on a credit report (If a credit check reveals the credit applicant has been a victim of identity theft, consider the possibility that the person asking you to extend credit might not who they say they are.)

The Rules were established by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), in an effort to force businesses to better protect consumers from identity theft and credit fraud. While creditors will undoubtedly accept the delay gratefully, it does make a thinking person question the sincerity of the FTC’s stated intent of protecting consumers.

Speakers Series brings ID theft education to communities nationwide

IdentityTheft — Tue, 21 Apr 2009 14:56:00 GMT

Ah, the good old days, when we were innocent enough to believe buying shredders and taking our Social Security numbers off our checks was all we had to do to protect ourselves from identity theft.

Alas, the data breach and identity theft headlines make it clear those days are over. The Identity Theft Resource Center announces there were 656 reported data breaches in 2008. Verizon Business’ Data Breach Investigations Report reveals a total of 1,152 data breaches (70% of which were unreported) with more than 285,000,000 records compromised. And every day there are more reports of threats as low-tech as mail theft, or as high-tech as the attacks by international identity theft syndicates.

In light of the escalating identity theft risks, LifeLock has launched a program to bring identity theft education and prevention resources to communities nationwide. The LifeLock Speakers Series features Certified Identity Theft Risk Management Specialists who deliver free audience-tailored presentations to update groups on identity theft trends and protection strategies.

They’ve already delivered several talks in Texas, Michigan, North Carolina and the District of Columbia, but if you’ve missed those, the schedule below provides some additional opportunities.

If you’re interested in scheduling a speaker for your group (senior citizens, high school and college students businesses and law enforcement agencies are among the groups who’ve already been scheduled), or if you’d like more details about the dates below, contact Cortney Read at (480) 457-2032.

5/18 Newark, Delaware
5/18 Pittsburgh, Pennsylvania
5/18 Benincia and Escalon, California
6/8 Cleveland and Columbus, Ohio
6/8 Detroit, Michigan
6/15 Las Vegas, Nevada
6/15 Pasadena and Newport Beach, California
6/22 Reno, Nevada
7/06 Chicago, Illinois
7/13 Ann Arbor and Warren, Michigan
8/3 Oklahoma City, Oklahoma
8/10 Dallas, Texas
8/10 Orlando, Florida
8/10 Denver, Colorado
9/21 Seattle, Washington
10/12 Kansas City, Missouri
11/2 Tampa, Florida
12/1 Los Angeles and San Diego, California

ID theft up 22% in 2008

IdentityTheft — Wed, 18 Feb 2009 02:24:00 GMT

More than 10 million Americans became identity theft victims in 2008, according to the annual report released by Javelin Strategy and Research last week. That's a huge increase over the 8.1 million victims of 2007, and the first time Javelin has reported an increase in the number of victims since they began tracking ID theft in 2003.

The report also confirms findings from early surveys regarding the source of personal and financial information used by thieves. Among the 35% of respondents who are certain who stole their information and how it was obtained,

    * 43% can trace the crime to a lost or stolen wallet, checkbook, credit card or other document.
    * 19% know that the information was stolen while they were making purchases or other transactions.
    * 13% knew the criminal as a friend, acquaintance or in-home employee.

Of the 10 million people who became identity theft victims last year, more than 1 million of them place the blame squarely on business or government institutions that lost information in data breaches.

Another 11% reported their information was stolen while they were online, mostly through the machinations of hackers, viruses or spyware. A few more of the victims admit to falling prey to phishing attempts.

It's nearly impossible to establish a causal relationship between the declining economy and increasing numbers of identity theft crimes, but there's certainly a correlation.

"The short story is that criminals are getting more desperate," said Jim Van Dyke, a Javelin spokesman.

Almost 600,000 people lost their jobs during the first week of February, the same week the report was released.

If there's any good news to be found in the report, it's that the average out of pocket loss for an ID theft victim is down to only $500.

Las Vegas mortgage broker faces federal charges for dumping applications

IdentityTheft — Tue, 27 Jan 2009 20:20:00 GMT

One man’s trash is another man’s treasure … or it might be another man’s mortgage application, credit report, tax returns or bank statements. In this case, it’s the basis for charges filed by the Federal Trade Commission.

Gregory Navone, a Las Vegas mortgage broker, stored in his garage roughly 40 boxes of mortgage applications, tax returns, bank statements, photocopies of driver’s licenses and credit cards, and at least 230 credit reports. After that, he threw them all in a public dumpster.

The boxes of documents were found December 20, 2006 by a neighbor who’d complained before about loose trash and litter blowing into his yard from the nearby office building’s trash containers. A closer look revealed that the papers came from First Interstate Mortgage, which had an office just down the street.

Navone was registered as the president of First Interstate Mortgage, and First Interstate Realty and BNG LLC, which had offices at the Decatur Boulevard address where the documents were found.

The FTC filed a complaint with in the U.S. District Court for the District of Nevada on Dec. 30, 2008.

Navone is charged with violating the Fair Credit Reporting Act and the Disposal Rule because he didn’t take reasonable care in protecting consumers’ information. And, because he gave his clients a written statement assuring them that the companies maintained “physical, electronic, and procedural safeguards that comply with federal standards to store and secure information about you from unauthorized access, alteration and destruction” (though apparently the companies didn’t), Navone is also charged with violating the FTC Act.

Obama inauguration spam

IdentityTheft — Fri, 23 Jan 2009 22:11:00 GMT

Barack Obama’s inauguration has inspired millions of people, including cyber crooks bent on identity theft.

Watch out for headlines like “Barack Obama refused to be president of the United States of America,” and “There is no president in the USA anymore”; they’re linked to malicious software called “netbots” that automatically invade your computer and steal your information. They also “worm” their way into the computers of everyone else in your address book or anyone else you connect with online.

Just hours after Obama was elected last November, millions of email inboxes received spam with “Obama acceptance speech” in the subject line, enticing millions of people to click on the link, thinking they’d get a chance to read the transcript. What they got instead was a nasty Trojan horse malware installed on their computers. When that happens, any information on the computer—bank account information, credit card statements, Social Security numbers, etc—is captured and sent back to a remote computer.

To avoid an invasion, follow these rules:

If you receive an email with a tempting subject line like “You’re a winner” don’t open it; just delete it.
If you receive an email that instructs you to provide personal or financial information by clicking on a link, delete it. Even if it seems to be from a reputable source—your bank, credit card company, or the IRS—delete it. It’s been said a million times already: no financial institution or government agency will ever send you an email requesting that your information be submitted via email or the Internet.