Archive for December, 2010

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How to report identity theft

Thursday, December 30th, 2010

If you’re a victim of identity theft, you may be wondering what you can do to begin to repair the damage.

First of all, you should call your local police or sheriff’s department. The police should take your report and give you a copy. You’ll need a report in order to pursue your case with creditors who have been victimized in your name. You should also consider reporting the crime to your state law enforcement, since many states have toughened their laws against identity theft.

Be sure to provide the police copies of all the documents that support your claim. You may want to provide them with a notarized copy of the Federal Trade Commissions ID Theft Affidavit, available online at www.ftc.gov/bcp/edu/microsites/idtheft/.

You should also check your bank accounts, and if a thief has accessed any account, close it immediately. Ask the bank to notify its check verification service. This will notify retailers to not honor checks written on this account. To find out if someone is passing bad checks in your name, call the Shared Check Authorization Network at 1-800-262-7771. If you think someone has opened a checking account in your name, call Chex Systems at 1-800-428-9623.

You should also contact the credit reporting agencies. You only have to call one, and it’s required by law to contact the other two. Call Equifax at 1-800-525-6285, Experian at 1-888-397-3742 or TransUnion at 1-800-680-7289.

Work with your creditors. You have 60 days from the date you normally receive your bill to notify them of any theft or fraud. If you do so, your loss for unauthorized charges will be limited to a maximum of $50.

And last, you should report your case to the Federal Trade Commission. You can do so at 1-877-IDTHEFT.

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BBB names top 5 identity theft scams of the year

Wednesday, December 29th, 2010

These days, savvy criminals can get your personal information in many ways, including stealing your mail, hacking into your computer, stealing your credit cards, and even going through your trash. The risk of becoming a victim of identity theft is everywhere.

“ID theft prevention should always be on an individual’’s mind,” said Matthew Fehling, president/CEO of the BBB. “When it comes to protecting your identity, an ounce of prevention is worth far more than the amount of money, energy and agony that goes into getting your life back to normal after your financial and personal information has been stolen.”

The Federal Trade Commission estimates that as many as 9 million Americans have had their identities stolen this year. Victims may not be aware of the theft until they open and review their credit card or bank statements, check their credit reports or are contacted by a debt collector for a debt they didn’t create.

According to the Better Business Bureau, there were five top identity theft scams in 2010.

• Social networking scam: Identity thieves hijack social networking site accounts and post status updates stating that the person they’re pretending to be is in trouble. Frequently, these posts indicate that the person is stranded overseas after being robbed, and asks for money to be wired. If you see such a post, contact the person on whose profile it was posted to determine if the message is legitimate. Chances are, it isn’t.

• Telephone denial of service attack scam: Criminals will tie up a phone line with hundreds of calls, while they loot bank accounts. As a result, the banks can’t contact consumers to verify the transactions being made. Never give your personal information to an unsolicited caller or via e-mail, and change your online banking and automated telephone system passwords frequently. Check your account balances often, and protect your computer with the latest virus protection and security software. If you are victimized in this way, contact your bank and telephone provider, and file a report with the Internet Crime Complaint Center.

• Renter’s scam: Criminals pose as homeowners listing the personal information of the real homeowner, asking potential tenants to fill out applications that require personal and financial information, as well as money that is to be sent to an overseas address. The criminal then disappears, leaving the victim homeless and broke. Be sure you research any property owner thoroughly before providing your information or money. Never wire money overseas.

• Charity scam: Criminals pose as representatives for a legitimate-sounding charity, and ask for money. Many set up fake Web sites and send e-mails requesting sensitive information like Social Security numbers and passwords, allowing them to steal a victim’s identity. Before making any donation, check with the BBB’s Wise Giving Alliance at www.bbb.org/charity.

• Job scam: Work at home scams allow criminals to recruit victims to engage in illegal activities such as money laundering. These scams often let victims know they’ve been hired, and then forms are forwarded to the new hire to be filled out, providing personal information. Victims are often asked to deposit checks, which are fake, and then asked to wire funds. To avoid this scam, be sure you have legitimate contact information from any potential employer. Contact the company directly to verify the request for your personal information, and never wire any funds.

If you are victimized by any of these scams, contact your local Better Business Bureau and file a report. You should also file a report with the Federal Trade Commission and your local police or sheriff’s department.

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After the gifts, be sure to unwrap your credit card and bank statements

Tuesday, December 28th, 2010

After the presents have been unwrapped and the less-than-desirable gifts have been returned, be sure to comb through your credit card and bank statements. You could uncover a few purchases you never actually made.

Consumers should be looking for transactions that are theirs and making sure that receipts match up following the holiday rush and last minute shopping. If you do find something that’s unusual or out of place, report it immediately. Victims of identity theft typically have 60 days to file a fraud claim with their credit card company or bank. Often times, by the time you receive your statement, it’s already 10 days old, so it’s important to act quickly.

To avoid credit card fraud, be sure to carry your cards separately from your wallet, just in case your wallet is stolen. Keep a record of the account numbers, expiration dates and the phone number and address of each company in a secure place. When making a purchase, keep an eye on your card and get it back as soon as possible.

Be sure to void incorrect receipts, and destroy carbons. Save receipts to compare with billing statements. Open bills promptly and reconcile accounts monthly, just as you would your checking account.

Never lend your cards to anyone, and don’t leave cards or receipts lying around. Don’t ever sign a blank receipt, and when you sign one, make sure to draw a line through the blank space above the total. You should never write your account number on the outside of an envelope, and never give your account number out over the telephone unless you initiated the call or are sure of the person at the other end.

Remember that once you report the loss or theft of your card, you have no further responsibility for unauthorized charges. Your maximum liability under federal law is $50 per card. If you suspect fraud, you may be asked to sign a statement under oath that you did not make the purchases in question.

You should also report the theft to the Federal Trade Commission. You can do so by going online at www.ftc.gov, or by calling toll free, 1-877-FTC-HELP.

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Another successful year is winding down

Tuesday, December 21st, 2010

As 2010 winds down and we all begin to look forward toward 2011, LifeLock is proudly taking a look back at a very successful year.

The Federal Trade Commission has reported that identity theft was its No. 1 complaint category in 2009. While the incidents of this threat are growing, LifeLock can report that nearly 2 million people trust the leader in proactive identity theft protection to protect their personal information from would-be identity thieves.

“The criminal mind is hard at work every day plotting and devising new methods to use our personal information to their advantage,” said Todd Davis, chairman and CEO of LifeLock. “As this crime continues to grow, it is imperative that consumers understand what steps they can take to help reduce their vulnerability. Requesting their free credit reports and checking their bank and credit card statements every month is no longer enough. We need to take a proactive stance to deter identity thieves.”

Utilizing its state-of-the-art LifeLock Identity Alert™ system, LifeLock helps protect its customers from identity theft by searching for credit and non-credit related threats and notifying customers immediately if any such threats are found. LifeLock searches more than 45 million data points daily, and its advanced detection system has helped stop more than 13,000 potential identity threats this year. The system was recognized by the 2010 American Business Awards as the Best New Product or Service of the Year this year.

In addition to the alert system, LifeLock members receive WalletLock™ protection, which assists in the event of a lost or stolen wallet. Recovery specialists will assist members with calling each credit card, bank or document-issuing entity, and completing paperwork or any other needed steps to cancel or replace the contents of the lost or stolen wallet. In 2010, recovery specialists aided more than 3,800 members in recovering from a lost or stolen wallet.

LifeLock was also recognized by several entities for its top-drawer service during 2010. LifeLock received awards from AlwaysOn to the Top Global Company 250 list, Arizona Corporate Excellence as Arizona’s Fastest Growing Company, and American Business Awards Best New Product or Service of the Year. LifeLock was placed at No. 29 on The Phoenix Business Journal’s list of Best Places to Work in the Valley.

LifeLock also was recognized for being a great place to work in its hometown of Phoenix, Ariz., and Arizona Business Magazine and Best CompaniesAZ handed LifeLock the inaugural Arizona’s Most Admired Companies Award.

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Survey says: Consumers are getting smarter

Monday, December 20th, 2010

As the number of incidents of identity theft continue to rise, consumers are beginning to get more savvy – and they’re fighting back, taking measures to protect themselves and reporting incidents as soon as they happen.

A recent survey reported that the top two types of personal identification being compromised in a data breach were the victim’s full name and physical address. The percentage of Social Security numbers being compromised in data breaches decreased from 38 percent in 2008 to 32 percent in 2009.

The survey also reported that the number of identity fraud victims in the U.S. had increased by 12 percent to 11.1 million adults in 2009, the annual fraud amount increased by 125 percent to $54 billion.

It was also found that the average fraud resolution time dropped 30 percent to 21 hours. The survey also reported that nearly half of all victims were reported to have filed police reports that ended up doubling the reported arrests, tripling the prosecutions and doubling the percentage of convictions in 2009.

But the single ray of light the survey found was that there is an increasing number of consumers fighting back against identity theft, and taking the necessary precautions to preserve their personal information.

Consumers are getting more aggressive in monitoring, detecting and preventing fraud with the help of technology and partnerships with financial institutions, government agencies and resolution services.

Experts encourage consumers to take some simple steps to protect themselves from fraud. It’s important to carry on the identification and bank or credit cards you actually use and need. You should shred receipts, credit card solicitations, expired cards, statements, checks or other sensitive personal information before disposing of it.

Be aware of those around you when you are using your cards in public places, and pay attention as clerks fill in debit and credit card slips to prevent a dishonest clerk from making a second slip and submitting a false charge later.

Don’t give out your sensitive information over the telephone unless you initiated the call or are sure of the other party’s identity, don’t leave your cards in your vehicle, even if it’s locked, and don’t e-mail your personal information.

A little safeguarding with personal information can go a long way toward giving consumers the power to stop identity theft before it leads to bigger problems down the road.

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Study shows many people just don’t get it

Wednesday, December 15th, 2010

A recent study involving more than 200,000 Internet-using households in America showed that more than 30 percent of those households were infected and at risk of online identity theft, cybercrime and other threats.

The study also showed that spyware accounted for 47 percent of the attacks, while trojans and other threats specific to identity theft made up 21 percent. Twenty-six percent of the infected households were made accessories to cybercrime by botnet or other attacks that turn control of the home computer over to criminals. Only 6 percent of the attacks were identified as traditional computer viruses.

In a companion survey to evaluate how well the average user understands the need for identity protection, results showed that the average computer user has serious misconceptions about identity theft and online safety.

Consumers must remember that their home computers are a popular target for thieves. Why? Because you’ve got just the information they need stored on it – credit card numbers, bank account information, Social Security numbers, etc. By stealing that information, they can commit any number of crimes.

But why home computers? Because home computers are typically not very secure and are easy to break into. No matter how a PC is connected to the Internet in your home, the attack of a thief is often successful because so many homeowners don’t pay attention to cyber security.

How do these thieves break into your computer? They send you e-mail with a virus, look for weaknesses in one of your computer’s programs and install programs to give themselves access to your computer.

What can you do? Install and use anti-virus programs. Keep your system patched with the latest bug-fixing updates. Be cautious when reading e-mails with attachments, particularly if it’s unsolicited. Install and use a firewall. Make backups of important files and folders. Use strong passwords, and change them often. Be careful when downloading and installing programs. Use a file encryption program and access controls.

The bottom line is this, pay attention to the safety features on your computer now – or pay the price later.

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Is shopping online safe?

Tuesday, December 14th, 2010

Each day that passes, we all face risks. Those risks increase during the holidays. We risk car accidents on the way to the mall. We risk being mugged as we walk about the mall. We even risk catching a cold or the flu from a store clerk or another shopper.

So many people decide to play it safe and do their shopping online. But is this really safer?

Just as shopping at the local mall has risks, shopping online has its own set of pitfalls. But these pitfalls can mean financial loss, credit card fraud or identity theft.

According to a recent study by the National Cyber Security Alliance, of almost 3,500 U.S. adults surveyed, 64 percent have not made an online purchase from a specific Web site due to cyber security concerns. Sixty percent said this was because they were unsure whether that site was secure. More than 50 percent worried about providing the requested information, and 48.4 percent felt that the Web site requested more information than necessary for the purchase.

When shopping online, you risk landing on a potentially unsecured or even infected Web site, which could infect your computer with spyware. This spyware could be used to steal your data. Or you might provide your credit card information to a legitimate online merchant that later becomes a victim of a data breach.

But shopping online can be safe – if you take the right precautions. Make sure you have the latest version of your browser loaded onto your computer, keep your anti-virus software updated, and install critical updates to your operating system. You should also make sure to have a firewall installed.

To defend against credit card fraud, pay close attention to your statements and refute any unauthorized transactions within 60 days of discovery.

The only way you can avoid getting scammed by a “shady” site is to do business only with trusted web merchants. Do an online search for the Web site or company’s name prior to making a purchase, and read any reviews you find.

By taking these simple precautions, you can get your holiday shopping done online and keep yourself – and your personal information – safe and secure.

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LifeLock reaches thousands with educational program

Monday, December 13th, 2010

LifeLock reached out to educate law enforcement personnel and consumers this year, reaching a total of nearly 10,000 people.

LifeLock educated more than 3,500 law enforcement officers and more than 5,500 consumers, sharing educational curriculum about the growing threats of identity theft. The leader in proactive identity theft protection, LifeLock offers its educational initiatives at no cost to either group.

“Our award-winning educational programs are the foundation to creating a national discussion among consumers and law enforcement agencies nationwide,” said Todd Davis, LifeLock chairman and CEO. “Getting front line law enforcement officials to connect across jurisdictions and speak the same ‘language’ regarding how to investigate identity theft crimes can ultimately lead to safer communities.”

Working with the FBI Law Enforcement Executive Development Association, LifeLock will end 2010 with 30 one- and two-day Identity Theft Summits for law enforcement all over the country. The summits bring together LEOs to learn from current investigators the methods of thieves, as well as the best investigative practices.

The program has garnered the company the Communitas Awards Leadership in Community Service and Corporate Social Responsibility. The program was also recognized by the International Business Awards, which presented the LifeLock Corporate Communications Team with the Communications Team of the Year award.

LifeLock also strives to educate consumers on identity theft, empowering them to protect themselves from one of the nation’s fastest-growing crimes. Seminars for consumers were also presented in various areas of the country. Dubbed the LifeLock Speakers Series, the program provided participants with a better understanding of their risks associated with identity theft, as well as current ID theft crime trends and the diverse ways these crimes are committed.

LifeLock has provided consumers with the necessary tools to help consumers prevent ID theft victimization since 2005. The company is focused on educating consumers and working with law enforcement and elected officials to better understand the ever-increasing threat identity theft poses.

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Look out for holiday scams; particularly those aimed at the elderly

Friday, December 10th, 2010

‘Tis the season to give. But unfortunately, there are those who see it as the season of taking.

During the holidays, it’s likely you’ll see an increase in requests from charitable organizations, but be aware that this is also a busy time for scam artists. Scammers often use soundalike names of well-known and respected charities. They may also invent ones which purport to help with “hot-button” causes that target older donors in particular, such as police and firefighters, sick or needy children, victims of natural disasters and veterans.

But there are some steps you can take to reduce the risk of fraud. First of all, if you receive requests from charities you are unfamiliar with, do your homework. Research the charity and make sure the request is legitimate. You can look up the charity’s home office and call them to be sure the request is real. If you can’t find any information about the charity, don’t make a contribution and don’t share your personal information with anyone representing it.

If you receive a solicitation by e-mail, be especially careful, and don’t click on any links embedded in the e-mail.

If someone calls you for support of a certain charity, ask them to send you the paperwork in the mail in advance before agreeing to make any donation. Make sure to ask for their contact information. That way you can follow up and do more detective work. You can contact the Better Business Bureau in the town where the charity is located to verify it.

To keep it safe, only contribute to those charities you know and trust. If you have any doubts about the charity, even if it’s just a bad feeling, don’t make a donation. Never make a donation or give your personal information to anyone over the phone.

If a person calls representing a charity and he or she is unwilling to mail you information about the cause or charity, consider it a big red flag. A reputable company will be more than willing to do this; scammers will not.

So enjoy your holiday season, and make sure your money goes where you want it to go.

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Cancer survivor beats credit reporting agency in court

Thursday, December 9th, 2010

A cancer survivor who won more than $1 million from Equifax for improperly handling his identity theft report can keep the full award, a federal judge has ruled.

Eric Drew was twice referred to hospice care by hospitals which said they could not treat his cancer. Drew’s identity was stolen in 2003 by a phlebotomist working at the cancer are center where Drew underwent treatment. Drew discovered that multiple fraudulent credit accounts had been opened in his name, with thousands of dollars in balances.

Fearing that his life was in danger, Drew called newspapers, the FBI, police and the mayor in his native Los Gatos, Calif. Once the story broke on television, the thief was caught and convicted of criminal violation of the Health Insurance Portability and Accountability Act.

But over the two years following the conviction, Equifax and other credit reporting agencies and banks thwarted Drew’s attempts to clean up his credit. Drew took the matter to court, and was awarded $6,326.69 in economic damages, $315,000 in non-economic compensatory damages and $700,000 in punitive damages.

Equifax submitted a motion for a new trial and asked that the court set aside what it called “excessive damages.” The company argued that the compensatory and punitive damages should be reduced to $200,000 and $50,000, respectively.

The judge ruled, however, that Drew had presented significant evidence of emotional distress that he suffered as a result of the incident, and that the harm he suffered was not the result of an accident.

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