Public Trust

Trust is fragile and powerful. Trust allows insecurity in life to be tolerable, changing our perspectives to view challenges as opportunities as opposed to threats. Time builds trust but yet trust can be shattered almost instantaneously. Human nature is a dichotomy of sorts, tugging us emotionally and rationally at the same time. Logically, we analyze and scrutinize the pros and cons and then decide whether someone deserves our trust. Emotionally, we feel it in our gut when we trust someone which seems to be the most common method and also the very reason why trust is so delicate.

In an organizational setting, trust is the driving strength. We only tend to acknowledge such a force when this cornerstone is missing. In a trustworthy organization, there is productivity, calmness, loyalty, teamwork, delegation, empowerment, and reciprocity. Compare it to a child. There’s a point in parenthood when we give our children our trust. If it’s used wisely, they grow and more responsibility is entrusted. If not, trust is removed and the quality of relationships may deteriorate. Walking through life, we observe. People can make promises emphatically but until their behavior matches their words, trust can be breached. We learn to listen half-heartedly, watching actions while ignoring images that are portrayed and expressions. We know the ones who keep their promises; those are the people we trust.

There are some professions who have gained a collective trust such as doctors or policemen. What about lawyers and politicians? Some professions have a steeper hill to climb to gain the public’s trust. Listen to me appeals aren’t enough. Trust needs to be rebuilt by professions through actions. Trust in politics, public service jobs, and business management is one of the most important issues today.

Public office is a public trust. Those who manage the government and run the various departments must be candid, accountable and loyal. It’s only then when they are worthy of the public’s trust. Public servants are entrusted to provide services that are efficient, dependable and free from dishonesty and misconduct. What are some of the locales that provide such services?

1. Those providers that are given a monopoly by the government: Bus and railway companies.


2. Public regulatory organizations within the financial and real estate sectors.


3. Organizations that spend and disburse public funds: Universities, hospitals.


4. Mass media Organizations: Television and broadcasting.


5. And any other organization that performs public service functions: Land development, charities etc.

Public service and administration needs to be recognized, stemming from the desire to care for others. We can be idealistic about our public servants but still we mustn’t be naïve. When trust is breached, no one wins. We can exercise our trust in those public servants, but yet we can still use preventative measures to protect ourselves. This isn't pessimism but more hope with a safety net.
Take the example of a retired clerk at the Department of Taxation. His breach of privacy earned him time in jail. He stole the identities of taxpayers, deceased family members and children where he wracked up credit card charges of over $200,000 and which ultimately gave him six months in jail and a bill of $220,000. Ultimately, he gained 90 credit cards from 20 banks using the fake ID’s he obtained using the stolen identities (Read the full story here).

We can hope that those organizations or employees that require our social security numbers are trustworthy -- after all in public services we have no choice -- but our safety net here,where we are in control, would be identity theft protection. The government’s safety net could be employee screening, teaching and promoting ethical behavior, and other similar methods. The moral of the story? Let’s be as cautious and trusting as we can be and must be, but let’s trust using wisdom. Life is not foolproof so there will always be outliers among the norm.

Credit Card Identity Theft

Police of Morgan Hill, California received a call for a potential DUI, but instead three people were arrested for numerous incidents of identity theft. The driver of the Camaro, Charles Allen, didn't have a license and the passenger, Arena Adanandus, had a suspended license and neither one had ownership documentation of the Camaro. Allen was arrested on suspicion of driving with a suspended license. In the meantime, they impounded the Camaro and found merchandise totaling $800+ from Home Depot. The passenger, Adanandus, had used a customer's account number where she had fraudulently added her own name and the grand total of charges is suspected to be around $3,400. Not only that, but the Camaro was rented using a stolen credit card. During this time a third party, Aaron Fields, came to the station to meet with Allen and Adanandus and the kicker -- he drove to the station in a Ford Fusion which he rented using stolen credit card information. All three were arrested and booked (Read the full story here).

Identity theft is a recognized problem and credit card identity theft is one of the forms it may take. As in the prior case, the thief can use details of another person's credit card and wrack up debts which the unsuspecting customer ends up with. They may also use the person's name and information to open up new credit cards where they charge to the victim's name. So how can they even get this information? Through stealing mail from your mailbox or trash, credit card skimming, or stealing information from records where your details are kept (such as a crooked employee or a thief breaking into hospital records etc).

Some simple tips to prevent identity theft are:

1. Shred any documents with personal information before putting in the trash.
2. Opt out of mailing lists where credit card offers are sent through the mail.
3. Keep your eyes on your credit card at all times especially at stores and restaurants. It's not just on the internet where you need to be careful.
4. Identity theft insurance services.

Identity theft is a growing problem but gradually people are becoming more aware of it and are protecting and educating themselves against these types of crimes. As in the case cited, some of these losers do get caught and we're all happy when they bring their 'friends' along for the ride.

Employee ID Theft at AT&T, an Inside Job

If you've ever thought that your personal information was safe at work, this might make you change your mind.

This week a federal grand jury has indicted a Chicago area temporary employee for identity theft of over 2,100 employees. The employee, who was working for AT&T, had two accomplices. The trio of women apparently used the stolen information to fill out "payday" loan applications, then used random photos of individuals and faxed in the account information. After that, they would wire the money into their accounts. Before being apprehended, the trio stole more than $70,000.

It's pretty despicable when an employee steals trusted customer data. But stealing employee data is even worse, because if you can't trust your own employees or co-workers, who can you trust? They're supposed to be on your side.

On the brighter side of things, at least the number of affected people is lower than your typical data breach. If they had stolen customer data, the number of people affected could have easily been in the millions and that would have been a tremendous blow to AT&T.

These criminals will face 20 years in prison and $250,000 each for the fraud charges and 2 years for each count of identity theft, to be served consecutively, after the other 20 years for the fraud. These girls aren't going anywhere, anytime soon. Score one for the Feds.

Read the article from the SC Magazine here.

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.

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.

Non-fat, Low-foam Laptop Please!

Starbucks has once again lost a laptop containing employee data. In October 2008 the company lost a laptop that contained 97,000 employee's personal data, including Social Security numbers and addresses. I guess that fits in the extra-extra-large cup. Notice I said "once again?" In November of 2006 a laptop containing personal data of over 60,000 current and previous employees was also stolen. The difference is, this time the employees decided to file a lawsuit.

Some employees are saying that Starbucks took too long to notify them about the breach and provide them adequate time protect themselves against identity fraud. Starbucks has offered the employees one year of identity theft protection and credit monitoring, but some employees are asking for up to five years. Some of the plaintiff's have seen evidence of fraud due to the data breach, and are therefore seeking monetary damages.

This is bad news for you coffee drinkers. If this lawsuit is successful, I would expect to see the price of a Starbucks coffee increase. It's going to take a lot of beans to pay for the double blunder.

You can read the full story here.

Who's Watching the Watchers?

I'm the kind of individual that believes if I have to spend the night in the hospital, I shouldn't take anything of value with me (iPods, cellphones, laptops, etc.). These only serve as temptations to those with lesser scruples, causing them to wait until I'm out of the room, in the restroom, or fast asleep to sneak in and help these items grow legs. If it's valuable, leave it at home. It's unfortunate that we can't take the same approach with our identities.

Today, some delightful health care billing worker in Los Angeles has been accused of stealing the identities of more than 1,000 patients at Cedars-Sinai Medical Center, and using those identities to steal from insurance companies. What a black eye for the medical community. The former employee, James Allen Wilson, is accused of taking around $69,000, but the investigation continues. Read more here, or here.

I can't help but wonder if Mr. Allen was ever properly screened before obtaining employment at the medical center? Even if he was, he may have had a, pardon the pun, clean bill of health prior to this event. Regardless, I hope that Cedars-Sinai Medical Center takes proper precautions in the future to ensure such an event never happens again. Screen, screen, screen.

ID theft is growing rapidly and it can happen any time, any place. Have you taken measures to ensure your identity remains healthy? If not, Merchants Information Solutions identity theft product, SmartIDentity+, can help you protect yourself and your family by offering email alerts, credit monitoring, identity monitoring, and a fully-managed recovery solution in case you ever become a victim. Cover your bases. Make sure someone is watching the watchers.

*You* might be a victim

Today, US Attorney General Michael Mukasey announced indictments against 11 people for (according the allegation) stealing more than 40 million credit cards. The credit cards were stolen by hacking into the computer networks of at least nine major US retailers:
- TJX Corporation (TJ Maxx and Marshalls)
- BJ's Wholesale Club
- Barnes and Noble
- Sports Authority
- Boston Market
- Office Max
- Dave and Busters
- DSW shoe stores
- Forever 21

With so many major retailers having been hacked and so many credit card numbers stolen; what are the chances that *you* might be a ID Theft Victim?

If you have ever purchased clothing, accessories, or home decor from TJ Maxx or Marshalls; you might be a victim.

If you have ever acquired electronics, accessories, home decor, sports equipment or toys from BJ's Wholesale Club; you might be a victim.

If you have ever obtained books, DVD's, magazines, toys, or even a gift card from Barnes and Noble; you might be a victim.

If you have ever procured clothing, footwear, or sports equipment from the Sports Authority; you might be a victim.

If you have ever grabbed lunch, dinner, or even a snack at Boston Market; you might be a victim.

If you have ever secured office supplies, technology, electronics, or furniture from Office Max; you might be a victim.

If you have ever earned the high score on the games, or enjoyed food or drinks at Dave and Busters; you might be a victim.

If you have ever collected footwear (boots, slippers, pumps, clogs, mules, athletic, casual, or even slippers) from DSW; you might be a victim.

If you have ever expanded your wardrobe (top, bottoms, dresses, outerwear, or even intimates) by shopping at Forever21; you might be a victim.

Let's pause for a moment and consider how vast the scope of the theft was. Let's bring this into focus by comparing it to something more tangible. If we were to compare the number of credit cards stolen against the population of New York City how would that turn out? The US Census Bureau estimates that New York has a 2007 population of 8,274,527. It is not even close (40 million versus 8.2 million).

If our most populous city (bear in mind that we're counting every man, woman, and child) doesn't stack up against the size of the theft. How about if we were to add Los Angeles(3,834,340), Chicago(2,836,658), Houston(2,208,180), and Phoenix(1,552,259)? Nope. The combined population of the five largest cities still doesn't compare to the scope of the theft (18,705,964 vs 40,000,000) . To approach the size of the theft, we would need to have the entire populations of the top 33 most populous cities (New York through Atlanta) to equal the number of credit cards stolen. That is a staggering sum!


So, if you are concerned about your chances of becoming a victim of Identity Theft, what should you do? An excellent choice is enrolling in Merchants SmartIDentity plus. There are several companies offering ID Theft services that you might turn to, but Merchants distinguishes itself by offering "Fully Managed Recovery".

Fully managed recovery services are different than most others. Most other service providers offerings are limited to "consultation". In other words, they provide only advice on how *you* go about recovering your credit and good name. At Merchants, Recovery Advocates (RA's) can act on your behalf to contact retailers, credit institutions and others and clean your record. With the "consultation" from other providers, you bear the full (sole) responsibility for knowing and taking all of the steps required to restore your good name. At Merchants, the RA's can act on your behalf (once you have executed a limited power of attorney) to do the legwork for you.

Busy Week for Identity Theft in Texas

By Robby Ward

Thursday, June 19, 2008

It seems as if the old Texas adage of everything being bigger holds true with ID theft as well… at least this week.

Today in Dallas a man was indicted by a grand jury for stealing PGA Golfer Justin Leonard’s identity. The crook (30-year old Joel Keith Bridger), who obtained Leonard’s SSN, and Drivers License Number (doctored with his own picture) was caught by a witty postal worker while trying to pick up Mr. Leonard’s mail, as the worker knew the Leonard family. Mr. Bridger, if convicted, now faces up to two years in prison.

Next, a Houston based company - Sunsmart Convenience Stores parent company, Petroleum Wholesale, L.P. has been charged by the Texas Attorney General with “failing to protect its customers’ sensitive information”, by knowingly dumping an unknown number of documents, containing social security numbers, bank account numbers, and credit/debit card information, behind their headquarters in Houston. The company now faces up to a $50k fine for each record.

Lastly, another consumer class action suit was filed earlier this week in Tyler Texas against LifeLock, a leading Identity Theft solution provider. The suit filed by Marks & Klein mimics the other 5 suits filed against LifeLock and alleges that LifeLock’s advertising campaign misled consumers by “dramatically overstating the level of identity protection the company provides”. The suit also tacks on similar allegations, alleging that the identity of Mr. Davis (CEO of LifeLock) has been used fraudulently numerous times while on the service.

These three events exhibit a wide cross-section of the Identity Theft landscape and the struggles that businesses, consumers, and solution providers face today.