Identity Theft Victims: Guilty until Proven Innocent

You'd think as a victim of identity theft, you'd have people bending over backwards to help you in your crisis. Just the opposite it seems, at least when it comes to creditors. The thieves can be idiots, even misspelling your name when signing as you, but you however have to be faultless, proving your innocence via your perfection. Because if not, those creditors will continue to harass, assuming you’re a lazy deadbeat and unwilling to pay your bills. Obviously the best scenario is to prevent such a situation: Take all the steps to protect your identity such as not carrying your social security card in your wallet, having a lock on your mailbox, using caution when using credit cards (ie. Stay with the card when paying at a restaurant), travel with limited credit cards -- even prepaid cards -- and be guarded when giving out personal information. Another crucial precaution is to routinely check your credit score and even better; be enrolled in an identity theft protection program. In this way, you'll be alerted when suspicious purchases are made on your credit card and if your credit score changes drastically and even if you've opened up new accounts. Being enrolled in such a program is the best prevention and also provides current information on identity theft resources. We need to be continually updated on the new scams as identity thieves are getting sneakier and more creative. There's even a recent trend of stealing children's identity, demonstrating that these crooks will stoop to any level.

Just before Christmas, a story came out in Spartanburg, South Carolina where a mother learned that someone was using the social security number of her deceased son. Imagine a Christmas present that consisted of the IRS sending you a letter informing you that someone had filed a tax return under your dead child's name. Ricki Escalante's son died at ten months from SIDS. Now it's up to Ricki to send as much information about her son to the IRS(Read the full story).

Social security numbers of children are valuable resources for thieves. Why? It is assumed parents don't check the credit reports of their children. Once again the best defense is to have your children's credit reports monitored and even place a freeze on their credit files. So with any newfound scam, monitoring is always the best way to secure your name and credit.

The Identity Theft Victim & Their Rights

So here's an ironic story for you about identity theft. The last blog I wrote on identity theft was on a Friday. I wrote about what steps you can take to protect yourself from identity theft -- especially mail identity theft. I then went to a nice barbeque party and watched my kids swim with their friends. Didn't really enjoy my turkey dog -- an attempt to be healthier -- but have decided since then that I'll stick to all-beef franks. On the way home, I grabbed my mail, tucked the kids in bed, and then read my mail. And to my horror, received a letter from my credit card company who was putting me on alert as one of their former employees had stolen personal information from some accounts and mine happened to be one of them. I looked at my husband, thinking perhaps this theory of Law of Attraction might actually be valid, and then began a scenario of what-ifs with this villain using my very name to open up accounts, buy a home etc. After wallowing for seconds, I called the fraud alert hotline. So they've caught the thief but the investigation is ongoing and who knows if he's sold the information already. What I realized is that it's one thing to discuss identity theft and the steps to take, and it certainly is another to feel yourself vulnerable and at risk -- and of no fault of your own. My husband saw the rainbow of it all -- well, now you'll have another article to write -- so here I am.

There are certainly many steps you can take to protect yourself from not carrying your social security card in your wallet to having a secure mailbox. But what about if you give trusted information to a company -- like a credit card company -- and one of their employees steals it. There's nothing you can do after that point. You hope that the company has done background checks, employment screenings, behavioral assessments, but there are always risks -- which is what I discovered. What is immediate action you can do once you've realized someone has stolen your information? Of course if it's a stolen wallet, you notify banks, credit card companies, social security etc. But what else should you do? What are your rights?

1. Immediately call the nationwide consumer reporting companies and place a fraud alert in your file. Everyone has the right to do this and this lets potential creditors know that you may be a victim of identity theft. Therefore, this makes it much more difficult for someone to get credit in your name. There are three nationwide consumer reporting agencies and if you contact one and place a fraud alert -- they'll contact the other two. They are Equifax: 1-800-525-6285; www.equifax.com, Experian: 1-888-397-3742; www.experian.com, and TransUnion: 1-800-680-7289; www.transunion.com. These fraud alerts will be in your file for 90 days. Extended alerts are also possible, but an identity theft report is required. For more information, go to www.consumer.gov/idtheft.
2. You have a right to obtain a free copy of your file disclosure. What is a file disclosure? This is the information in your file at each of the 3 nationwide agencies and will help you detect if fraudulent accounts have been opened in your name. Go to www.ftc.gov/credit.
3. If fraudulent accounts were opened using your information, you have the right to get hold of those documents. Go to www.consumer.gov/idtheft.
4. You have a debt collector harassing you? And if you believe these debts were racked up by an identity thief, the debt collector has an obligation to tell you the amount of debt and the name of the creditor. You also have the right to have the consumer reporting agency to block file information which is a direct result of identity theft. Of course you must prove this with your identity and a copy of your identity theft report. Once this is done, a person or business with notice of the block can't sell, transfer or place the debt for collection. But even before this, you have the right to prevent businesses reporting information about you to consumer reporting agencies. You must then provide information to the businesses -- via a specified address given by the business that reports information to the consumer reporting agency -- by providing an identity theft report. So whatever step you are on -- via the business, the consumer reporting agency and even the debt collector -- you always have rights.

Clearly, no one wants to be a victim of identity theft, but if you have tools in hand and are aware of what actions need to be taken and what rights you have -- you can reverse the scenario and stop the thief in his tracks. An even simpler way is to set up with a company who provides identity theft services. There they will help prevent and also monitor your accounts if any significant changes occur. A word of caution, I'd do your research first -- before and if you become a victim. There are companies out there who provide the same service but for a much better cost. When we're desperate, we'll take the first monitoring bidder whatever the cost. So the message here? Prepare, prevent and monitor.

Identity Thieves Stealing Your Mail

Identity theft is an increasing concern as we hear of nightmarish ordeals that some people must endure when their identity is stolen. In some cases, these crooks are getting smarter and more sophisticated with their scams, but in other situations -- which is good for us -- these types aren't playing too wisely.

Take the example of this theft: On August 8th, 2009 in Manteca, California, two young adults -- a male and female -- broke into an apartment complex and then proceeded to steal from the tenants' mailboxes. But the big kicker -- there was a warning that they were being videotaped. The authorities are confident they'll catch these criminals. Not too bright I'd say. You can read the report and view the videotape here: Manteca Mail Theft Caught on Camera
What can we do personally to protect ourselves from mail theft?

1. Use a Mailbox with a Lock. That's a significant start. It's not a sure guarantee but will definitely deter some. And of course, keep your mailbox locked at all times and have a limited number of keys. Remember, you can have valuable data for the thief on bank and credit card statements and even personal letters may give away some detailed information about you.
2. Collect Mail after Delivery, within reason. If you are going on vacation, put a hold on your mail. It's a simple process and in most places can de done online. Or even have a neighbor pick it up for you.
3. Use Ink that's Check-Safe. Cleaning products can erase some inks and then the thief has one of your blank checks in his hands with your signature. Use pens -- such as gel, rollerball and fountain -- that clearly state they are check-safe. Fill in all the empty spaces on your check such as the date and memo line. And finally, go to the post office with your checks. Locked mailboxes are pretty secure but the hands of a postal worker is even a safer bet.
4. Keep Good Records. This will enable you to identity any unauthorized activity in your accounts. You may not be able to avoid mail being stolen and information taken, but with good records the damage can be minimized. Identity Theft recovery programs can also be set up that will serve this same purpose.

If we're informed we can play with the wisest of the thieves and beat them at their own game. As far as those more dense ones, we'll let the videorecordings take the credit.

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.

Going to the Hospital?--Leave Your Purse at Home

If you are making a trip to the hospital, you will be making yourself exceptionally vulnerable to others. No, I am not referring to the quality of medical care from the doctors and nursing staff. I am referring instead to the probability of your becoming a victim of identity theft and fraud.

To illustrate the point, I refer to a recent event that occurred to a patient while staying at Scottsdale HealthCare Shea in Scottsdale, Arizona. The patient, a 79-yr old woman seeking treatment, was apparently victimized not once but twice by two separate members of the support staff operating independently and without knowledge that the other had also victimized the patient.

The alleged perpetrators are Nancy Adame 34, and Sylvia Cubit 40. The victim reported to police that she had been contacted by her bank about suspicious activity in her account. When she examined the contents of her purse after her stay at the hospital, she discovered that personal checks, credit cards, and her debit card had been stolen.



Nancy Adame has been charged with fraud, theft, and forgery and has been released pending completion of the investigation. Slyvia Cubit (who also works at another Phoenix area hospital and medical laboratories) has been arrested after Scottsdale police obtained a search warrant and entered her home finding evidence linking her to several other identity thefts. She, Cubit, has been charged with theft, aggravated identity theft, theft of a credit card, forgery, fraudulent use of a credit card, trafficking in the identity of another, and trafficking in stolen property.

What lessons do(should) the rest of us learn from the misadventures of these two hospital staff?

1. Difficult times often brings out the worst in people.
2. Constant vigilance to guard against identity theft is always a good idea.
3. Motive and opportunity are all that it takes.
4. Don't assume that others are not motivated to steal from you and your creditors.
5. You can influence, if not control, how much opportunity is provided to identity thieves.

Source: http://www.azcentral.com/community/scottsdale/articles/2009/02/05/20090205abrk-hospitaltheft0205.html

*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.