Archive for November, 2010

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Former students charged with hacking into university’s system

Tuesday, November 30th, 2010

Two former University of Central Missouri students have been charged with computer hacking and identity theft.

Daniel J. Fowler, 21, of Kansas City, and Joseph A. Camp, 26, a New York resident, each face charges of conspiracy, fraud, computer intrusion, illegal interception of electronic communications and aggravated identity theft.

Camp has also been charged with trying to sell the personal information of more than 90,000 people to an undercover FBI agent.

For three months, beginning in October 2009, the duo hacked into the university’s computer network and downloaded large databases of faculty, staff, alumni and student information.

Data breaches such as this are becoming more and more common, and many of them aren’t even reported. What happens if you become a victim? Should you be worried? Here are some things to consider.

Seventy percent of all data breaches come from an attack by an external third party. This includes system hacks or intercepting e-mail. The variety and creativity of cyber criminals is greater than ever.

Seventy-five percent of all mid-size companies in America cut their security budgets in 2009 – but criminals don’t suffer during a recession; instead, they thrive. If you’re a small or medium-size business owner, don’t assume you won’t be hit. Thieves know businesses this size are an easy target.

The No. 1 cause of data breaches is human error. Forty-eight percent of all breaches occurred as the result of misuse, compared to 40 percent due to direct hacking. If businesses recognized this and acted accordingly, it would likely cut the number of data breaches by 50 percent.

Simple or intermediary controls would make 96 percent of all data breaches avoidable. But this doesn’t mean businesses must adopt complicated solutions to keep their data safe – simple basic protection would suffice.

Data loss can affect any business at any time. But the vast majority appear to be due to lax controls and the resulting human error. Human error isn’t necessarily something you can ever get rid of, but you can protect your business’ data so that should it be lost, misplaced or intercepted, the confidential business and client information won’t be compromised.

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Keep your eyes open this holiday season

Monday, November 29th, 2010

Police in Upper Darby, Pa. arrested two men who purchased gasoline with stolen credit cards. The arrests were fairly routine – until the cops dug a little deeper.

Sheik Fofana, 29, of Yeadon, Pa., and Conde Mamady, 28, of Bladensburgh, Md., were picked up after filling up two cars with gas with stolen credit cards Nov. 24. When the cars were searched, police officers found a quantity of credit and gift cards registered in New Hampshire and Maryland. The two men were also carrying stolen cards in their pockets.

The men have each been charged with credit card fraud, identity theft and other related offenses. The Secret Service was called in to assist with the investigation because of the number of credit cards. Investigators from the Secret Service were already in Philadelphia working on a rash of recent credit card thefts.

The case in Philadelphia involved hundreds of credit cards found in a raid at a house on the 1000 block of South 57th Street. Investigators found cards and the machinery needed to make phony cards.

Officers said those arrested had been making cards bearing victims’ identities and buying gift cards. Money was also being counterfeited at that location, with bleaching and changing $1 bills into $50 bills. Investigators called it a “major operation for counterfeiting and for the manufacture and distribution of credit cards.”

Activity involving stolen credit cards and fraudulent cards created using purchased gift cards will be on the rise in the coming weeks as Christmas approaches. Experts say there is an increase in these types of crimes during the weeks leading up to Christmas day each year.

Be vigilant about your credit card. When your statement arrives, check it carefully for any questionable activity. If you find charges listed that you didn’t make, contact the card issuer immediately.

If you are a business owner, be sure to ask for photo identification when a customer presents a credit card. Be suspicious if a person pays for a transaction with a gift card, but your computer readout indicates it is a credit card.

The key to playing it safe this holiday season is to be alert and aware. You can’t afford to not be.

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What if a relative steals your identity?

Tuesday, November 23rd, 2010

A Westland, Mich. woman has been charged with stealing more than $350,000 from her mother.

Carol Brazeika, 49, raided her 76-year-old mother’s retirement, pension and Social Security funds for five years, beginning in 2004. She was arraigned this week on 14 felony charges, including embezzlement of more than $100,000, identity theft and larceny by false pretenses.

Brazeika used her mother’s identity to pen credit card accounts and obtain loans in her mother’s name. Investigators say the money was “squandered,” and that Brazeika and her husband were unemployed during part of the time, and that likely contributed to the misuse of funds.

One of the most difficult types of identity theft is when a family member is the thief. Our family members are among the most trusted people in our lives, and the conflicts that come with this type of theft are deep and troubling.

Worse yet are the guilt pangs that come if you decide to press charges. The problems that it can cause with peripheral relatives are terribly painful emotionally. Many people decide that they’ll let the relative in question pay the money back. But this then puts the burden on the victim to sort out the mess. And whether or not the money is paid back, trust can never be regained.

Relatives, close friends and neighbors make up 50 percent of all identity thieves. And the thieves you know cost more money – the average cost to identity theft victims when the perpetrator is known is more than $15,000.

But those figures are misleading. Many victims who know the perpetrator are children, and most of those cases are not reported because they’re not discovered yet – in this type of theft, the crime goes undetected for years, until the child grows up and tries to apply for credit. The sad part is that many times, the theft in this case is a parent.

For some parents, stealing their child’s identity is a stop-gap solution. Their own credit is destroyed, so “borrowing” their child’s Social Security number is a “necessity.” And they often have the intention of paying the money back.

In any of these cases, the biggest question mark is this: “Should I report the crime?”

In most cases of identity theft, the chances of the thief being prosecuted is 1 in 700. But when it’s a relative who commits the crime, the odds go sky-high. It’s because of the whole “blood-is-thicker-than-water” thing.

If you are victimized by a family member or someone else you know, remember that it’s your good name and credit they’re destroying. And if they’ve committed a crime using your name, you’ll be the one arrested – not them. It can take years to recover from an incident of identity theft. Is it really worth it to not report it and keep the peace at the family reunion?

Report this crime just like you would any other. Let your local law enforcement assist you in your recovery, and you’ll get back on your feet sooner. It will be a difficult process, for sure. But it’s important to do the right thing – for everyone involved.

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Lead411 says LifeLock is ‘hot’

Monday, November 22nd, 2010

LifeLock, the industry leader in proactive identity theft protection, has been recognized by Lead411 as one of the country’s fastest-growing technology companies as a Hottest Southwest Company.

Researchers for Lead411 look through more than 600 press releases and business articles, including venture capital fundings, company launches, new office openings, customer press releases and more. Based on the findings, Lead411 selects the fastest-growing companies.

The award was created to recognize fast-growing companies in different geographical regions. The list of southwest businesses began with more than 900 companies and was later narrowed down to the top 50.

To be eligible, companies must be in the software, wireless, Internet, hardware or media industries, be privately-held, and be located in Arizona, Utah, New Mexico or Nevada. The chosen company must show a 100 percent increase in revenues over the past three years, more than $1 million in funding in the past two years, traffic gains of two times the previous amount to the company’s Web site in the past 12 months or over one million unique visitors per month to the site.

Lead411 provides information, news and research about U.S. companies and their executives. Founded in 2001, its goal has been to focus on quality corporate data that is valid and useful, rather than producing as many company records as possible.

In addition, Lead411 tracks company news in order to alert its customers about venture financing, new hires and hiring plans, among other things.

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Simple steps go a long way in ID theft protection

Friday, November 19th, 2010

When you think of identity theft, it’s likely that you think of a person who is looking to steal money from you. This is certainly one form of identity theft.

But thieves are also looking to obtain your personal information in order to bypass the system for themselves. Your stolen information can be used to obtain a driver’s license, find a job, get utilities service, get cell phone service or even commit crime.

You may wish to check with your Department of Motor Vehicles and get a copy of your driving record to be sure your information isn’t being used by someone else. You should also put a stop to pre-approved credit offers coming in your mail. You can remove you name from the list by calling 1-888-5OPTOUT. This is important because thieves looking to steal your information will go through your trash, looking for offers like this. They reply and obtain credit cards, which they use to amass charges in your name.

The last four numbers of your Social Security number are very important to protect. While it is true that most banks, creditors and the government might need those numbers at times, be sure you are talking to a legitimate person. This important information should only be provided on a need-to-know basis.

If you have children, be sure their Social Security information is protected and uncompromised. One of the best ways to do so is to check to see if your child has a credit report; if so, it’s likely a compromise has occurred.

It’s important that you shred documents containing your personal information before you dispose of them. You should also be suspicious of e-mails you receive that look fraudulent. To be safe, if you aren’t sure of where it came from, don’t click on it. You should be sure that your computer has the proper software protection, including anti-virus, firewall and malware-detecting software.

Following these tips and using some common sense, coupled with a lot of caution, can go a long way toward protecting you against identity theft.

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Woman uses daughter’s victim’s ID info to commit fraud

Thursday, November 18th, 2010

A 41-year-old Sheboygan, Wisc. woman has been charged with five counts of identity theft for renting an apartment and setting up utilities using the identity of a woman her daughter robbed in 2003.

Yvonne H. Johnson was charged with using identity theft for financial gain, five counts, with each count carrying a maximum penalty of three years in prison. Her current whereabouts are unknown, and warrants have been issued for each count she is charged with.

According to the complaint, the identity theft stemmed from a robbery that took place in Milwaukee in 2003 in which a Social Security card and other identifying information were stolen from a then-17-year-old girl. The victim filed an identity theft report in August 2009 after being contacted by collections agencies about services set up under her name in Sheboygan from 2007 to 2009.

One of the people arrested for the burglary in 2003 was Johnson’s daughter, who was a teenager at the time.

Police discovered last year that Johnson had used a misspelling of the Milwaukee woman’s name to rent an apartment in 2007. She also used the name and Social Security number to sign up for services from Alliant Energy, Charter Communications, Wisconsin Public Service and Direct TV. Johnson accumulated bills totaling $3,966 under the victim’s name.

How do you protect yourself from this type of circumstance? You sign up with LifeLock.

LifeLock monitors for non-credit related threats to your personal information, as well as monitoring your credit. So if someone applies for any type of services in your name, LifeLock will alert you immediately and the threat will be squashed.

Call LifeLock today. You’ll sleep easier tonight.

Receive 30 days free and get a 10 percent discount on enrollment with the LifeLock Promo Code “Defense.”

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West Virginia woman charged with stealing Special Olympics CEO’s identity

Wednesday, November 17th, 2010

A former bookkeeper for the Special Olympics was sentenced this week to prison for stealing more than $163,000 from the nonprofit.

Victoria Jarvis, 48, of Mineral Wells, W. Va., will serve six months in prison, to be followed by two months of home confinement and three years of supervised release. She was also ordered to pay $120, 653 in restitution.

West Virginia U.S. Attorney Booth Goodwin called the act of stealing from a charity like Special Olympics “intolerable.”

“This sentence should deter others who work in a position of trust from stealing from those organizations that serve our most vulnerable citizens,” he said.

Jarvis pleaded guilty to identity theft, admitting that from 2002 through 2008, while working for the state’s chapter of the organization, she used a computer and check creation software to counterfeit checks payable to herself.

She then placed the computer-generated signature of the CEO of Special Olympics on the checks, and deposited the checks into her personal account. She created about 108 fraudulent checks totaling $163,650.

The case was part of the U.S. Attorney’s Identity Theft Initiative, in which cases of identity theft are pursued at the federal level based on the vulnerability of the victim and the amount of loss. West Virginia State Police conducted this investigation.

The CEO of the West Virginia Special Olympics, whose identity was stolen by Jarvis, has yet to comment on the case.

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Facial recognition technology helping to curb ID theft

Friday, November 12th, 2010

The state of Washington is using facial recognition technology to fight identity theft.

The state’s Department of Licensing is using facial recognition scans to compare driver’s license photos to other pictures in its database. The goal is to make sure every picture only matches up to one name.

So far, the system is flagging more than 10 photos per day. A federal grant paid for the technology, and the state began applying the technology to all licenses in October.

More than 30 states have deployed the controversial technology thus far. The technology works by examining digital photographs, comparing the unique underlying structures of the face across different images, flagging suspicious matches.

Indiana Bureau of Motor Vehicles Deputy Commissioner Dennis Rosebrough said the technology has been more of a deterrent. Indiana began using the technology in November 2008, and officials say they are finding less than half as many fraud cases this year as they did last year.

Rosebrough said the state is rapidly losing its reputation for being a “hotbed of fraud” to being a state where it’s difficult to get a fraudulent ID.

When the technology is in place, and a flag is raised, officials then have probable cause to check the applicant against other law enforcement databases, to find out if the applicant is wanted for other crimes.

The technology is not a “silver bullet,” but it does help find those attempting to commit fraud, and law enforcement officials are hopeful that all 50 states will adopt the technology.

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Service members should be proactive when it comes to ID theft

Thursday, November 11th, 2010

Once he’s served his tour of duty overseas, the last thing a serviceman wants to come home to is a pile of bills, mortgage loans and credit cards – even more so if the accounts bear the name of the serviceman, but he didn’t open them.

Identity theft takes place when someone steals the identity of another person and uses it to open credit accounts, purchase services and even commit crime. And the military isn’t immune to this type of crime.

For example, the Social Security number of a chief staff officer for a Virginia-based Naval Network and Space Operations Command post was misused by a family member. A half-brother placed the officer’s name and information on a W-2 form to avoid child support payments, and then set up cable television and wireless phone services in his name. Bills were not paid and, in the end, the staff officer suffered a serious blow to his credit rating, and his security clearance was jeopardized.

When it comes to identity theft of military personnel, it is the use of Social Security numbers for common identification throughout the military that has made obtaining additional information much easier for thieves. And on top of this, the Internet is filled with skilled hackers who can infiltrate personal information in a matter of minutes.

In an effort to reduce the number of incidents of identity theft against military personnel, the Defense Finance and Accounting Service has dropped the first five digits of each service person’s Social Security number when preparing hard-copy earnings statements and checks.

To avoid suffering an attack of identity theft, military personnel living in on-post housing should keep an close eye on any paperwork that discloses personal information, including home addresses and credit card statements.

If you are being deployed out of the country, make sure you make arrangements for your mail to be held or received by a person you trust. While on active duty, ask creditors to make moves to verify your identity before credit is issued in your name.

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Data breaches becoming more common; still frequently not reported

Wednesday, November 10th, 2010

Since the data breach by ChoicePoint six years ago, regulators, businesses and consumers have increased their awareness and reaction to organizations that mishandle sensitive consumer data.

In early 2005, California was the only state that had a breach notification law. ChoicePoint allowed information on approximately 150,000 consumers to be accessed fraudulently. When ChoicePoint only notified California victims of the breach, a precursor to identity theft, both victims and regulators reacted.

Since 2005, 46 states and three territories have enacted data breach laws. Only Alabama, Kentucky, New Mexico and South Dakota are left. Each state law is different, making compliance difficult for any organization that has security a security breach in which the victims reside in multiple states.

Since the CheckPoint incident, over a half-billion profiles have been compromised in 2,500 reported incidents. Some Americans have been victimized by security breaches multiple times, for example, by their schools, local, state or federal government, a retailer, financial institution or their favorite charity. Some organizations have suffered numerous breaches.

Of the 2,500 reported breaches, one third of the reporting organizations could not quantify how much information was accessed, lost, stolen or improperly disposed.

The most frightening statistics are a bit more general. Most organizations haven’t inventoried the consumer information they possess, and they don’t have a method in place to detect a breach. Others report that their employees don’t report breaches because they fear retribution by consumers and regulators.

It pays for consumers to take action to protect themselves with a service such as LifeLock.

LifeLock is the only proactive identity protection service on the market today. As a LifeLock customer, you will be notified the moment any threat to your personal information, whether credit related or not, is detected. This, in effect, stops identity theft in its tracks, and makes any information a thief could acquire during a data breach useless.

Call LifeLock today. Receive 30 days free and get a 10 percent discount on enrollment with the LifeLock Promo Code “Defense.”

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