Archive for February, 2012

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Take steps to prevent business identity theft

Wednesday, February 29th, 2012

Identity theft is a concern for all consumers, but even more so for business owners. Not only does business identity theft affect the business owner, but it can affect his customers as well, and even lead to the ruin of the business.

With business identity theft, the criminal steals the business identity and uses it to establish lines of credit. He may also hack into the business’ database and steal the personal and financial information of the customers found there. In either case, the damage to the business owner and to the business is devastating. This is why it is so important to do everything you can to protect your business and your customers.

First of all, you must develop a security strategy to help prevent and deal with identity theft. Put this plan into writing, and make sure your employees are familiar with it.

next, make sure that only the records you need to run or operate your business are kept on hand – shred the rest. This will help to minimize the risk for theft – identity thieves often dig through the trash dumpsters behind businesses to find information they can use.

You should also protect your business online. Don’t share financial documents, sensitive personal or financial information or account numbers via e-mail. And only do business on secured sites.

Use common sense and if you must make mistakes when it comes to protecting your business from identity theft, err on the side of caution. Your business is your life – don’t let a thief steal it from you.

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Social media sites are fun – and can be dangerous

Monday, February 27th, 2012

Social media accounted for the majority of personal data stolen or obtained through false pretenses last year. A recent study found that identity theft jumped 13 percent last year – which means that social media users were among the majority of those who were victims.

The study showed that users of Google+, LinkedIn, Twitter and Facebook are at the most risk for identity theft. Users with public profiles are the most accessible to identity thieves, as well as those who reveal too much personal information, such as birth dates, phone numbers, passwords, children’s names and pet names.

It’s important that all consumers remember that when you use a social media site, you become vulnerable, since you are literally leaving a trail of personal information behind that can make your identity much easier to steal. Here’s how you can remain social, yet protect yourself.

First of all, know who your friends are. Don’t accept friend requests from just anyone. When you accept a friend request, you give that person access to your personal information – and if that person is a thief, you’re in trouble.

Keep information like your birth date, e-mail address, cell phone number and home address off your social media profiles. Use the privacy settings to your advantage. There are default settings, but these settings allow anyone to see your profile. Customize your settings to only let those you trust see your information.

Be sure you are wary of extras and third-party apps. Criminals use these apps to steal your personal information. Use caution and modify your settings to limit the amount of information these apps can access.

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Do your homework before you choose a tax preparer

Friday, February 24th, 2012

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Technology is nice – But it can lead to ruin

Wednesday, February 22nd, 2012

We’re all used to the technology we’re fortunate to have access to these days. We have smartphones, computers, tablets and other devices that make our lives easier and more entertaining.

But all this technology can be a problem as well – particularly if these items are abused. Criminals who are seeking to steal your personal or financial information have found all sorts of ways to misuse technology in order to gain ill-gotten goods. Knowing how these criminals work and what to do to protect yourself can help.

First of all, be careful where you use the computer, particularly in public places. Public computers are never 100 percent safe, and neither is free Wi-Fi, which you can find all over the place. These networks are not secured, and therefore dangerous. Don’t conduct financial transactions on public Wi-Fi or on public computers, and always remember to sign off when you’re done.

If you use your debit card frequently, make sure you use it as credit, instead of debit, so you don’t have to input your PIN. Most places where you typically use your debit card do not have the level of security to really protect your card, so it’s much safer to use it as you would a credit card. The only time you should use your PIN is at the ATM.

If you shop online, make sure you only use secured sites. Criminals are very good at creating sites that look legitimate and appear to sell whatever you need. If you happen onto one of them, you will input your information in order to make a purchase, but what you’re really transacting for is heartache. Check out a site thoroughly before you shop, making sure the site is secured, and reviewing the site’s return policy. Read the comments as well – it will help you to know what others have said.

Last of all, use common sense. Don’t give your personal or financial information out unless you have to, and to only those with whom you have initiated contact. Remember: Better safe than sorry.

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Watch out for fake tax preparers only interested in stealing from you

Monday, February 20th, 2012

During this year’s tax season, experts predict that about 60 percent of taxpayers will use a tax preparer service to prepare and file their tax returns. Most of these service providers are legitimate. But there are those who will pose as legitimate tax professionals only to take advantage of taxpayers.

In years past, there has been a multitude of incidents: questionable tax preparers who skim off their clients’ refunds, charge inflated fees for tax preparation, and attract new clients by promising guaranteed or inflated refunds. This is why it is so important to be extra careful when selecting a tax professional to assist you.

This year, every paid preparer must have a Preparer Tax Identification Number, which must be entered onto the tax returns he or she prepares. If you are dealing with a tax preparer that does not sign the return or place a PTIN on the return, you should be extra careful and watch for these signs that your tax preparer is a scam artist.

First of all, if your tax preparer does not give you a copy of your tax return, or promises larger than normal refunds. Watch out for a preparer that charges a percentage of the refund amount as a preparation fee, or if the preparer requires you to split the refund in order to pay the preparation fee. If your preparer adds forms to the return that you’ve never had to file before, of if he or she encourages you to place false information on your return, like false income, expenses or credit.

If you note any of these behaviors, gather your information and leave. Do not allow this person to file your taxes, and don’t pay a dime. Contact your local authorities and report the tax preparer as a phony.

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Check your child’s credit – no matter the child’s age

Friday, February 17th, 2012

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Endure the ‘attitude’ – keep your card safe

Wednesday, February 15th, 2012

When it comes to financial identity theft, there are basically two types: new account fraud and account takeover. New account fraud happens when someone opens a new account in your name and then doesn’t pay the bill. Account takeover happens when a person gets your financial information and uses it to take over your existing credit or bank accounts.

But thieves also use a technique called “ghosting,” in which they create fake Social Security numbers. Once a phony SSN is used successfully the first time, the thief can then use it to create new accounts, obtain jobs, get mortgages, buy cars, etc.

It’s not uncommon for the thief to have a little inside help. The thief will sometimes pay an employee at a store in order to manipulate the system and obtain a store credit card, which he will then use to establish the credit he needs to obtain more accounts.

It’s also become a common thing for store and restaurant employees to use skimmers to scan credit and debit cards to steal the information for their own use. It’s easy to do: they simply scan the card in the point of sale machine the store issued like they’re supposed to, but they also quickly scan the card through the skimmer as well, out of the sight of the card owner.

This is why it is important whenever you use your credit or debit card in public to never let it leave your sight. When in a restaurant, ask if the card can be processed in front of you, or go with the waiter to watch as he scans it. Same goes for a retail situation.

Doing this may get a few strange looks or a little attitude thrown your way – but it’s worth it if it keeps your card protected.

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Don’t help hackers get your personal, financial information

Monday, February 13th, 2012

There’s a lot of talk out there currently about data breaches at banks. But should you panic?

The fact is, that when a data breach occurs at a bank, hackers can and will make off with your bank account numbers and any other information the bank has on file. But without the expiration date, your password and the credit card’s validation code, there’s not much they can do with the information they’ve stolen. And that’s where you come in.

Once a thief has your bank information, you can bet he knows how to reach you. And he will be in touch – in the form of a very convincing phishing scam.

If your information has been stolen as part of a data breach, you can expect to get an e-mail, phone call or text. The scam usually works like this: You get an e-mail that appears to be from your bank, stating that your account has been suspended (or some other excuse) and you need to verify account details. The e-mail will include link to a very official looking site that asks you to input this information. You’ll be told it is urgent, and you must provide the information immediately.

Banks don’t send you e-mails verifying information they already have on file. If you receive such an e-mail, call or text, contact your bank directly and ask if you have been sent any such communication. It’s a safe bet your bank will tell you no such communication was sent.

It is good practice to never provide your personal or financial information to anyone in response to an unsolicited request. Verify the request from the source first – before you provide any details. And don’t click on any links you might get in unsolicited e-mails, since the link could contain malware, which would provide a hacker with your information, whether you like it or not.

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Watch out for scams on Skype

Friday, February 10th, 2012

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New ID theft filters have caused tax refund delays

Wednesday, February 8th, 2012

IRS officials sent notices to tax professionals recently apologizing for a delay which the agency says will only affect some early filers – but if you filed after January 26, you’re in the clear.

The reason for the delay was issues with the agency’s newly-installed filters, which are designed to prevent tax fraud and identity theft. The delay was expected to only last about a week, although some have found that their refunds will be delayed by as much as two weeks.

The delay has caused concern among tax preparation chains like Jackson Hewitt and H&R Block. Both have been fielding calls from anxious taxpayers counting on their refunds. The chains have also been offering less refund anticipation loans, or rapid refunds, because of the delay.

The IRS has been working for the past year to step up its efforts to prevent identity theft by installing these new filters in its computer systems, which the agency hopes will catch identity theft attempts before refunds are issued. The changes came after the IRS was pressured by Congress and the National Taxpayer Advocate, as well as the Tax Inspector General for Tax Administration.

In years past, the IRS has issued millions of dollars in tax refunds based on fraudulently filed tax returns. The newly-installed filters are supposed to increase the IRS’ ability to spot bogus tax returns before they are processed and before a refund is issued.

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