Socializing Yourself Into Trouble

Nearly everyone has heard the term "social engineering" before. The term refers to a clever technique that can be used to get information from individuals without having to steal it or hack into a system. The technique is very effective. People like to talk, and if you ask enough questions, people will tell you quite a bit through the course of a normal conversation. Some people talk so freely in fact, that one senior citizen in Louisville, Kentucky apparently gave enough information for a nursing home employee to open up an American Express card with the patient as the co-signer and rack up $100,000 before the patient realized it. In fact, had the patient not received a call from American Express thanking her for opening the account, it may have taken much longer to figure out what was going on.

According to an article on WLKY.com, the suspect, Danielle McClain, actually had a criminal record for criminal possession of a forged instrument and spent 6 years in prison. Apparently, that's not enough of a red flag for some people. She was hired at the nursing home in Louisville anyway. Rest assured, a new policy is in place that will screen all employees and vendors' employees in the future.

It seems natural that someone recovering form surgery in a nursing home would make friends with the staff and get into lengthy conversations. That's part of our frail human nature. It's okay to be friendly, but as the phrase goes, "don't give away the farm" while you talk. As this example points out, we should be careful with the information we disclose. Without realizing it, you may be giving away valuable information, like your mother's maiden name, spouse's birth date, etc. This is information sometimes used to open new accounts.

The lesson here: be careful what you say. You never know how it can be used against you.

Paper Trails: Crumbs for the Identity Thief

When I think of someone stealing my identity, I often imagine a pick pocket or a burglar lurking in the shadows, waiting to grab my personal information along with my money. But often that’s not how it works. Sometimes our identity is stolen when we have a new baby, get a home loan or apply for a credit card -- sometimes our identity is stolen by employees of such institutions who steal our personal information. An identity theft is a crime where someone gains crucial pieces of identifiable information -- your driver's license number or social security number -- all in the hopes of then getting a credit card in your name, or renting an apartment in your name, getting a phone account etc., all for their own personal gain.

Take the example of Shenequa Brown, a child support collector charged with ID theft. Just this last month, this child support collector obtained the check number, routing number and bank number of her victim/client and used that money to pay for her utilities and cable.

Sometimes, however, it's not so blatant, but instead we leave a paper trail for not-so-honest employees to steal our information. We leave a paper trail in the form of birth certificates, church files, school records, diplomas, marriage and divorce certificates, voting registrations, doctor files, credit cards, land deeds and the list goes on. Certain milestones in our lives such as becoming financially independent and applying for a credit card, or having a baby, or even purchasing our own home puts our personal information on paper.

One way to prevent identity theft is not to leave a paper trail. Of course in some instances, we're putting our trust in certain institutions to keep our information confidential and we have no choice but to leave a paper trail. Sometimes the only recourse here is to closely monitor bank and credit card statements to catch the criminal quickly and also to have an identity theft service set up to help us monitor and regain our identity back quickly. But let's go over some things we can do to prevent identity theft via a paper trail.

• Don't have financial documents sent via snailmail and don't send paper checks out through the mail. Why? A thief can steal your personal information right out of your own mailbox or home. Rather, view them online. They're typically safer when stored online. Even pay your bills online through your bank's website. However that doesn't mean that we send people our personal info via email either.
• Invest in a shredder. Some crooks are attracted to the sport of dumpster diving.
• Where possible, don't use your social security number as a form of identification.

There's a lot to be improved upon here such as credit card companies not so loosely giving out our information to third party companies. But maybe we should even follow the example of our European neighbors and only use our social security number as a means of gaining our retirement benefits rather than a form of identification that is needed for loans and credit card applications that can then cause problems for many years if that information gets into the wrong hands. We can't control everything but we can be aware and cautious when we give out our personal information.

Phishing: An Online Identity Theft Scam

When I hear the word phishing, I imagine early dawn, a still morning and a smooth lake with not a single ripple. But outside the nature world -- and inside the world of computer security -- phishing is online identity theft. This process was described in 1987 and defined and recorded as 'phishing' in 1996 with one sole purpose: to bait innocent victims and catch their passwords, usernames, credit card information and any other financial details.

Con artists have been around since the beginning of time. We've all heard the stories of strangers stepping into the shoes of long lost relatives and making claim for crowns or large sums of money, but now we're in the internet age and the story -- with a similar theme -- has unsuspecting online consumers as its main characters. One of the more recent phishing scams involves the social networking sites. Facebook users beware because if you're one of those users that re-use passwords, then Facebook may be your downfall. Many of us use the same password for every website, meaning if were lured to phishing sites from our facebook account, hackers can also potentially gain access to our Amazon, PayPal and eBay accounts. Read the full story here: Facebook Attacks Threaten All Web Sites

According to the APWG (Anti-Phishing Working Group), these types of crimes are on the rise with crimeware-spreading sites infecting PC's with password-stealing crimeware increasing 827% from January 2008 to December. Phishing schemes are gaining sophistication and sometimes for the everyday online consumer it can be overwhelming. The Anti-Phishing Working Group web site gives up-to-date reports on the latest phishing schemes authorities have uncovered.

There are some steps we can take to protect ourselves from these types of scams.

• Never give out personal information, including financial, via an email request. Remember the purpose of this is to gain your name, username, address, phone number, password, bank account number, credit card number, CVC code or social security number. Regular e-mail messages aren't encrypted so it's similar to sending a postcard. Be suspicious of email messages requesting this kind of information or even those messages asking to update or confirm such details. And don't call numbers listed on email messages, but rather get the phone numbers from statements. Never click links on suspicious emails or copy and paste links from messages into your browser, but instead you type the URL into your browser or use your Favorite Links.
• Use secure websites. Ones that you know and trust to submit personal information -- established companies with good reputations and privacy statements where they state that they won't pass on your personal information to others. And make sure these web sites use encryption.
• Continually monitor online transactions. Review bank and credit card statements and report anything suspicious by calling the number on your account statements. Use credit cards for online purchases, even those with a small credit limit. Debit cards are connected to your bank account and credit cards with high limits only give the thief more money.
• Use strong passwords, changing them often. Don't use real words, but rather combinations of numbers, uppercase and lowercase letters, and symbols so it's difficult for hackers to guess.
• Protect your PC. Make sure all your security patches are installed and your browser is up to date. Use a firewall, antivirus software, anti-spyware, and even anti-phishing software.

So if this information does get into the wrong hands, what will the thieves do with it? Identity theft is common and the hacker can now apply for credit in your name, empty out your accounts, max out cards, transfer money from your investments into your checking account and then use a copy of your debit card to take it all.

These identity theft scams are continually growing in sophistication on the internet, so be aware, protect yourself as best as you can, and be prepared with identity theft services for recovery and even prevention.

Identity Theft & Traveling: What You Need To Know

The summer is fast approaching and it may be time to start thinking travel plans. Whether we go near or far, we must be aware of identity theft. In 2007, over eight million people in the United States were victims of identity theft which resulted in almost fifty billion dollars of fraudulent financial charges as quoted by the Javelin Strategy and Research Survey. That number has most likely increased over the last year. Of those victims, a significant portion was business and holiday travelers.

When I travel it's a time to relax, get away from my routine and responsibilities, and enjoy some fun with my family. So, like most people, I let my guard down. Travelers are walking targets to the thief. So perhaps we're not donning the binoculars, loud hats and colorful shirts, but we are travelers nonetheless and to crooks we're quite obvious. These pickpockets lurk in crowded airports, hotel lobbies, bus and train stations, special events -- anywhere a victim is relaxed and seemingly unaware. Our wallet in a back pocket is an invite to these kinds. Besides the obvious stolen wallet, there are other ways our identity can be stolen when traveling. Crooks are becoming smarter -- more technically savvy -- so it's critical we stay one step ahead. We need to be cautious with our laptops and our usage of internet cafes. Rather than finding ourselves in such a situation, prevention is really the key and then leisure or business can follow. So what are some things we can do?

• Before you even travel, hold mail and newspaper delivery. A pile of newspapers is an open invitation and bills and credit card offers contain all of your information.
• Go through you wallet. What do you really need? Take out all personal information items that aren't crucial, such as social security cards, memberships, receipts, check books, bills etc. Lock these up in your home -- identity theft can occur at home also by a house sitter or burglar.
• Carry a fanny pack. Traveling through a crowded airport, trying to get from one point to another can be an arduous task. Carry your credit cards and other personal information with you in your fanny pack. It's much harder to nab someone's fanny pack strapped firmly to their body than a wallet peeking from a pocket. Don't leave these items in checked luggage either. Lost luggage seems more common than in the past, even if it's just for a day.
• Pay your bills before you leave. Bills lying around in hotel rooms are easy targets for identity crooks.
• Even open a separate account before traveling and only put in it as much money as you'll need for your holiday. Bring that one debit card with you -- not one linking to all your savings back home.
• Bring a couple of credit cards with you. These are protected by Federal law and so fraudulent charges are generally covered. Make sure they haven't expired and you can even purchase prepaid cash cards from Visa, American Express or Mastercard. Have a list of the credit cards you brought with you easily available so that you can report the information stolen and set up fraud alerts with the credit bureaus. You can even sign up for identity theft services which can provide continual credit monitoring among other preventative measures and recovery programs.
• Use the ATM machines available in banks. There is a threat of fake ATM machines in popular tourist areas so be safe and go to the bank.
• Leave passports, major cards, and any other personal information that's not necessary on a day to day basis in your hotel room safe.
• Bring a copy of important documents and also store these in a secure and separate place. You'll definitely want a copy of your passport.
• Keep an eye on your laptop at airports, hotel lobbies and restaurants. Thieves can access personal information when laptops are unattended -- they don't even have to steal it and then the traveler is clueless. Back up your laptop before you leave and put this disc in a safe place at home or in a safety deposit box. Write your name, destination address and any other relevant contact information on a piece of paper that’s taped to your laptop in case it's inadvertently left behind. Use caution here though and use your work address and phone number.
• Be on guard when using public computers. Key stroke loggers could be installed but generally business centers located on cruise ships and hotels are safer than other public computers.

Stealing someone's identity is not just about having your credit card stolen while the thief enjoys a shopping spree. No, this criminal can then open new credit cards, new accounts, get new loans and then not pay them, leaving 'guess who's name' on the credit report? The worse case scenario is getting arrested for crimes you've never committed. Rather than becoming paranoid, apply the steps listed and be prepared. Preparation and prevention are the two crucial keys in protecting your identity. If a worse case scenario does occur, identity theft services can help with the recovery process along with preventative steps. Travel with confidence this summer season, knowing you've done all that you can do.

Your Identity Getting a Workout

There is one surefire method to ensure that nobody can get your personal information and steal your identity while you're out and about: leave your personally identifiable information and belongings at home. However, is this a realistic approach? For most people, probably not. Continue reading and decide for yourself.

Today in Sacramento, a husband and wife were arrested on charges of identity theft, forgery, burglary, possession of stolen property and vehicle theft according to an article at KCRA.com. The thefts occurred at local 24 Hour Fitness centers in the Sacramento area. While working out at various locations, the wife would go into the locker room and break into lockers and steal purses, cell phones, car keys, credit cards, etc. Such tactics are not uncommon. This is not the first time this type of crime has been committed, and unfortunately it won't be the last.

So how do we avoid this type of crime? Should we just leave all of our belongings at home? That doesn't sound like a practical idea. If all you're doing is going to the gym, okay, I suppose it's easier to leave a lot of things at home. But what if you're going to the gym on the way home from work? Leaving your items in your car is probably no better a solution. After all, you have to still take your car keys in the business and leave them in your locker.

It seems the answer to my original question is best left to the reader. It's your stuff. You decide how to best keep it safe. If you don't need to take it with you, you probably shouldn't. But when it comes to your identity, you can at least get recovery protection on your side in case you have the misfortune of having your personal information stolen.

A good identity theft plan should provide a fully managed recovery solution. That means a recovery advocate will work on your behalf, through a limited power of attorney, and make all the phone calls and clear up any problems that arise as a result of your identity being compromised. The advocate will also work until your good name is restored to its pre-theft status. In addition, there should be some sort of insurance reimbursement to help cover the out of pocket expenses.

A good identity theft recovery solution can save a lot of headache. So, if your identity winds up getting more of a workout than you do, you don't have to run around trying to catch up with it.

ACLU Supports Identity Thieves -- Sues County Sheriff

The ACLU has filed a suit against the County Sheriff and District Attorney of Weld County, Colorado in a strange twist of logic supporting the position of identity thieves. These stories (Operation Number Games and Fight with ACLU suits Buck to a ‘T’) from Weld County, Colorado are illustrate some of the contention between protecting fourth amendment rights and prosecuting criminals.

The back story ---
It begins with former mayor of El Paso, Texas and tax accountant Ray Salazar. In 1988, Salazar listed among his clients a Mr. Jose Lopez. Lopez is a citizen of Mexico and a resident alient in the US (he has a green card permitting him to work in the US). Three weeks of the month, Lopez works at a ranch near El Paso and returns home to his family just across the border in adjacent city, Ciudad Juarez for the fourth week (El Paso and Ciudad Juarez both part of the same metro area but are separated by the US/Mexico border).
All was well until one evening when Lopez was returning home he was mugged and his wallet stolen. He reported the theft to, among others, the Social Security Administration which issued another green card with the same ID number as the original card.


Fast forward to 1995 when Servando Trejo, a citizen of Mexico paid $1,500 to a human smuggler to take him across the border into Arizona. Once there, Trejo purchased a fraudulent birth certificate and social security card in the name of Jose Lopez. Trejo, an illegal immigrant, then assumed the identity of Lopez. With the Lopez identity, Trejo worked at several different jobs and eventually moved to Greeley, Colorado where he opened a bank account and gained a Colorado drivers license.

The fraud seemed to be going well for Trejo. Especially well, since Trejo chose not to pay income tax on his earnings during the years and by 1999 had accumulated a bill for $11,000 in taxes owed. That (1999) was when the IRS decided that the tax bill needed to be paid and contacted the real Lopez in El Paso and presented him a bill for $12,000. The real Jose Lopez, the part-time ranch hand in El Paso only made $10,000 per year and not only did not truly owe that much.  Moreover, he lacked the means to pay the bill.

That is when he turned to his CPA, Ray Salazar. Salazar worked with the IRS to resolve the problem but the IRS was skeptical of Lopez' claim. It wasn't until 2003 that Salazar was able to have an IRS agent take a close look at the circumstances and realize that Lopez had been the victim of identity theft. The IRS promptly removed the claim for back taxes and the situation appeared to be fully resolved. Jose Lopez never did find out who had been using his identity and could not be sure that it would not happen again.

In 2005, Trejo (still masquerading as Lopez) living and working in Greeley, filed an income tax return. Trejo had less than $2,000 withheld from his check to cover taxes but when he filed the return, he was given a refund of more than $4,000. This event apparently triggered something in the IRS system and again the real Lopez in El Paso was presented with a bill for $11,000 in taxes. Once more, Jose Lopez turned to Salazar the CPA for assistance in working with the IRS. Through another source, Lopez discovered that someone in northern Colorado was using his social security number. Lopez contacted the Loveland, Colorado police department who referred him to the Weld County Sheriff's office.

The Weld County Sheriff's deputies begin an investigation. On August 13, the deputies located the "Jose Lopez" they sought and arrested Servando Trejo at a feedlot where he worked. Trejo was arrested on charges of identity theft and forgery. Trejo later pleaded guilty to the lesser charge of criminal impersonation and was sentenced to probation for two years. Trejo was subsequently transferred from the Weld County jail to the custody of Immigration and Customs Enforcement (ICE). ICE subsequently deported Trejo to Mexico.

While still in the custody of the Weld County Sheriff's office, Trejo told the deputies how he was able to get large income tax refunds through a local business, Amalia's Translation and Tax Service. With this information the deputies investigated further to found that, not only Trejo but, a great many other illegal aliens were using Amalia's Translation and Tax Service to obtain income tax refunds under assumed identities ($2.7 million). Deputies sought and obtained a search warrant and seized the Amalia records. The seized tax records revealed approximately 1,300 cases of identity theft.
--- end back story


Information in a court case is normally considered public record. The evidence in the case was the tax records of Amalia's clients who had an interest in their tax records not being disclosed as a part of the public record of the case. Consequently, the Weld County District Attorney had the tax records put under seal and reviewed by grand juries (whose sessions are secret).

The ACLU, curiously, rather than supporting the Sheriff and District Attorney in their efforts to bring the identity thieves to justice chose to oppose their efforts and demand that the evidence either be returned to Amalia or destroyed and abandon attempts to prosecute the fraudsters.

Today the court heard opening arguments in the case. It is not certain how this will end or if there can be found an elegant compromise that both protects the rights of citizens from unreasonable search/seizure while still giving law enforcement the ability to effectively perform their duties and keep us safe from criminal activity.

Thieves Take More Than Towels

Wyndham Hotels in Florida notified the state Attorney General about a data breach in which the credit and debit card information as well as personal data of 21,000 hotel guests was compromised in December 2008. Wyndham notified the affected guests by letter.

So far there has been no evidence that foul play has occurred, but Wyndham is urging those affected to be vigilant and obtain fraud alerts from the major credit bureaus.

Another solid piece of advice would be to watch for suspicious credit card activity. Any suspicious charge can be challenged and taken care of fairly easily with your credit card company. This is yet another reason to use credit cards rather than debit cards. If your debit card information is compromised, thieves can easily drain your bank account before you even notice a problem.

Read the original story by clicking here.