Robert G. Davis, 44, of the District of Columbia, received a sentence of 64 months in prison from U.S. District Judge Reggie Walton. The sentence also included payment of $48,765.80 in restitution to the victims. The sentence was in response to a guilty plea he entered earlier this year to charges of wire fraud (1 count) and aggravated identity theft (1 count).
Davis was employeed by a number of mortgage companies and subsequently by FEMA, from December 2003 to November 2007. During this time, Davis fraudulently used the personal information of 200 people to finance multiple shopping sprees. The items purchased were not just the everyday household products but luxury items instead. They included: gold and diamond jewelry, designer watches, gourmet food, and expensive clothing. Davis grew weary of wearing the same old jewelry, so he pawned some of it and bought more.
The victims of his fraud did nothing that would have put them at unusual risk. They were simply living normal lives trying to get by. In fact, 30 of the 200 were simply disaster victims applying to FEMA for relief.
This is just another excellent illustration that you have to exercise bad judgement or take unusual risks to be a victim of identity theft. All it takes is for one bad actor to have motive and opportunity.
That's why Merchants believes it is so important to protect yourself by enrolling in Merchants SmartIdentity program. We'll watch your credit file for you and send you email alerts when suspicious activity occurs. If you do become a victim, our Recovery Advocates can do the legwork for you to contact all of the creditors to straighten things out.
Thursday, December 11, 2008
Tuesday, November 25, 2008
Identity Theft, the IRS, and You
Question: What happens when someone steals your identity and gains employment under your identity (but conveniently doesn't pay income tax)?
Answer: The IRS sends you a bill for the taxes the identity thief didn't pay.
Surprise!
That's what happened to an Chicago area 41-yr old woman. Surprise! You owe the government $22,024.40 in back taxes (to say nothing of penalties and interest). Oh, and Happy Thanksgiving!
What a (un)pleasant bit of news that must have been to receive. With the economy in a tailspin, the banking and housing sectors in complete meltdown, and inflation in food and energy up significantly; one might have been tempted to ask what else could go wrong. For the victim of identity theft, we now know the answer.
An Old Theft
According to the news report, the identity theft had actually occurred years earlier (on or before mid-2006). The accused identity thief (Rosa Flores-Velasco of nearby Elgin, IL) had purchased the identity (Name, Social Security Number, and Date of Birth) for $500 and assumed the identity for purposes of, at least, employment and obtaining a telephone account.
Flores-Velasco had additionally obtained, an additional fraud, a resident alien card with her own picture but the victim's name and information. The telephone account was also a trouble spot as it had referred to collections for non-payment.
The Anticipated Future of the Thief
Flores-Velasco has been arrested and charged with Identity Theft. Her bail has been set at $5,000 and she has been inducted into the Kane County jail. Her hearing is set for December 3rd. Her immigration status and other potential frauds relating to the identity theft are likely to be discussed then. For Rosa Flores-Velasco, her journey through the criminal justice system is just beginning.
The Anticipated Future of the Victim
Since the full details of the frauds committed by the identity thief are not yet known, it is clear that the journey of discovery, repair, and remediation has only just begun. Dealing with the consequences of identity theft can take hundreds of hours. In this case (long-term theft), the damages are likely to be both broad and deep.
Recovering your good name, dissolving fraudulent debt, restoring a valid credit worthiness score are all challenging. Dealing with government agencies like the Immigrations and Customs Service as well as the Internal Revenue Service generally do not rate very high on the list of "fun things to do".
How Merchants Helps
Merchants Information Solutions, Inc. has developed a service offering that helps folks recover from the consequences of identity theft. We have trained Recovery Advocates (RA's) that can assume much of the burden of clearing your name. The RA's can, upon execution of a limited power of attorney, act on your behalf contacting banks, credit card companies, utility providers, and other creditors where there is fraudulent debt. They can also contact government agencies (like ICE and IRS) and get things straightened out. We call this procedure our "Managed Recovery".
Of no less importance than our system of Managed Recovery, is our prevention service. Merchants' SmartIdentity program actively monitors your credit and other factors and sends you email alerts when potential trouble is spotted. We believe that prevention truly is better than cure. So when yet one more story of how identity theft has made the life of someone else very unpleasant, do more than just think about protecting yourself and your family.
Source:
- http://www.dailyherald.com/story/?id=250846
Answer: The IRS sends you a bill for the taxes the identity thief didn't pay.
Surprise!
That's what happened to an Chicago area 41-yr old woman. Surprise! You owe the government $22,024.40 in back taxes (to say nothing of penalties and interest). Oh, and Happy Thanksgiving!
What a (un)pleasant bit of news that must have been to receive. With the economy in a tailspin, the banking and housing sectors in complete meltdown, and inflation in food and energy up significantly; one might have been tempted to ask what else could go wrong. For the victim of identity theft, we now know the answer.
An Old Theft
According to the news report, the identity theft had actually occurred years earlier (on or before mid-2006). The accused identity thief (Rosa Flores-Velasco of nearby Elgin, IL) had purchased the identity (Name, Social Security Number, and Date of Birth) for $500 and assumed the identity for purposes of, at least, employment and obtaining a telephone account.
Flores-Velasco had additionally obtained, an additional fraud, a resident alien card with her own picture but the victim's name and information. The telephone account was also a trouble spot as it had referred to collections for non-payment.
The Anticipated Future of the Thief
Flores-Velasco has been arrested and charged with Identity Theft. Her bail has been set at $5,000 and she has been inducted into the Kane County jail. Her hearing is set for December 3rd. Her immigration status and other potential frauds relating to the identity theft are likely to be discussed then. For Rosa Flores-Velasco, her journey through the criminal justice system is just beginning.
The Anticipated Future of the Victim
Since the full details of the frauds committed by the identity thief are not yet known, it is clear that the journey of discovery, repair, and remediation has only just begun. Dealing with the consequences of identity theft can take hundreds of hours. In this case (long-term theft), the damages are likely to be both broad and deep.
Recovering your good name, dissolving fraudulent debt, restoring a valid credit worthiness score are all challenging. Dealing with government agencies like the Immigrations and Customs Service as well as the Internal Revenue Service generally do not rate very high on the list of "fun things to do".
How Merchants Helps
Merchants Information Solutions, Inc. has developed a service offering that helps folks recover from the consequences of identity theft. We have trained Recovery Advocates (RA's) that can assume much of the burden of clearing your name. The RA's can, upon execution of a limited power of attorney, act on your behalf contacting banks, credit card companies, utility providers, and other creditors where there is fraudulent debt. They can also contact government agencies (like ICE and IRS) and get things straightened out. We call this procedure our "Managed Recovery".
Of no less importance than our system of Managed Recovery, is our prevention service. Merchants' SmartIdentity program actively monitors your credit and other factors and sends you email alerts when potential trouble is spotted. We believe that prevention truly is better than cure. So when yet one more story of how identity theft has made the life of someone else very unpleasant, do more than just think about protecting yourself and your family.
Source:
- http://www.dailyherald.com/story/?id=250846
Wednesday, November 12, 2008
When the Going Gets Tough, the Identity Thieves Get Going
Things are already difficult and show no signs of improving in the near term. As if that were not sufficiently bad news, identity theft shows no sign of abating either.
Just yesterday at a Wal-Mart in the Phoenix metro area, a woman was arrested for reportedly stealing the identity of another Phoenix area resident and using the stolen credit card number (and an apparent forged driver's license) to purchase goods online from a local Wal-Mart.
Chandler police arrested Crystal Wright when she attempted to pick up the goods purchased with the stolen credit card (kudos to the Wal-Mart folks who spotted the fraud). However, when Ms. Wright was arrested, she did not reveal her true identity and instead used the stolen identity of Margaret Farnsworth. After Ms. Wright's arrest, she was released.
A local newspaper reported the arrest. An alert friend of the real Ms. Farnsworth read the report of the arrest in the newspaper and informed the real Ms. Farnsworth. The real Ms. Farnsworth, upon learning that someone claiming to be her had been arrested, contacted the Maricopa County Attorney's Office (kudos to both Ms. Farnsworth for promptly reporting and to the alert friend).
Tempe police then went back and discovered Ms. Wright's true identity and have begun to clear Ms. Farnsworth's good name.
Ms. Wright has subsequently plead guilty to the charge of Aggravated Identity Theft (Class 3 felony) and may be spending some quality time in Sherriff Arpaio's (Maricopa County) famous Tent City jail.
Among the interesting things about this particular incident was that it highlights that the danger of identity theft goes well beyond just money. Imagine how unpleasant it might have been for Ms. Farnsworth (the real one) when Ms. Wright didn't show up for an arraignment hearing. The Sherriff's deputies could be on her doorstep to arrest, to charge, and to induct her into Tent City.
Sources:
- http://www.azcentral.com/news/articles/2008/11/11/20081111cr-idtheft1112.html
- http://www.eastvalleytribune.com/story/113191
Just yesterday at a Wal-Mart in the Phoenix metro area, a woman was arrested for reportedly stealing the identity of another Phoenix area resident and using the stolen credit card number (and an apparent forged driver's license) to purchase goods online from a local Wal-Mart.
Chandler police arrested Crystal Wright when she attempted to pick up the goods purchased with the stolen credit card (kudos to the Wal-Mart folks who spotted the fraud). However, when Ms. Wright was arrested, she did not reveal her true identity and instead used the stolen identity of Margaret Farnsworth. After Ms. Wright's arrest, she was released.
A local newspaper reported the arrest. An alert friend of the real Ms. Farnsworth read the report of the arrest in the newspaper and informed the real Ms. Farnsworth. The real Ms. Farnsworth, upon learning that someone claiming to be her had been arrested, contacted the Maricopa County Attorney's Office (kudos to both Ms. Farnsworth for promptly reporting and to the alert friend).
 |  |
| Margaret Farnsworth | Crystal Wright |
Tempe police then went back and discovered Ms. Wright's true identity and have begun to clear Ms. Farnsworth's good name.
Ms. Wright has subsequently plead guilty to the charge of Aggravated Identity Theft (Class 3 felony) and may be spending some quality time in Sherriff Arpaio's (Maricopa County) famous Tent City jail.
Among the interesting things about this particular incident was that it highlights that the danger of identity theft goes well beyond just money. Imagine how unpleasant it might have been for Ms. Farnsworth (the real one) when Ms. Wright didn't show up for an arraignment hearing. The Sherriff's deputies could be on her doorstep to arrest, to charge, and to induct her into Tent City.
Sources:
- http://www.azcentral.com/news/articles/2008/11/11/20081111cr-idtheft1112.html
- http://www.eastvalleytribune.com/story/113191
Tuesday, November 11, 2008
More Vishing Attacks Seen
We continue to see more and more "Vishing" attacks mounted against unwary consumers. Attackers typically like to target large consumer bases so they focus efforts on impersonating large organizations (federal, state, or local government entities, banks, utilities, employees of large companies, etc.).
I recently read of just another such attack. In this particular attack, the attackers targeted a large utility company (DTE Energy). Metro Detroit residents were contacted by telephone by the attackers posing as representatives of DTE. In the recorded message, the attackers threatened the residents by stating that the resident's account was overdue and that services would be cut. The residents were then instructed to call a toll-free number for resolution.
The provided toll-free number was one operated by the attackers. When the residents called the number, they were instructed to supply their name, address, and social security number. Once the identity information had been harvested by the attackers, the residents were told that they had been contacted in error and the issue had been successfully resolved (no further action required on their part).
The attack was well executed. The recording was believable and convincing. The attack appeared legitimate as DTE does use an automated phone system to contact customers for billing issues but does not collect sensitive information.
It is very easy to become a victim. Identity theft wouldn't be the popular crime that it is if it didn't pay well for the attacker and was reasonably easy to execute successfully. It only requires that the target drop their guard for a moment.
If you receive phone calls like this, be suspicious and verify the source. You can visit the website of the utility company to get their phone number or use the telephone directory. Don't assume that the call is legitimate. You can confirm the veracity of the call by calling back using the phone number you obtained by using your telephone directory or visiting the company's website. A healthy dose of skepticism will go a long way.
Here at Merchants, we see a number of folks who have concluded that their personal information was at risk and didn't feel comfortable not having a safety net were they to discover that their identity had been stolen. For these good folks we offer broad spectrum consumer oriented identity theft services which include: education, prevention, detection, and remediation.
In some cases, forward-thinking companies use our business-to-business oriented services to safeguard their employees (offering them as an employee benefit) or to their customers (a customer benefit for valuable customers). In other cases, companies or other large entities approach us when they fear that information they possess relating to their customers and/or employees might have been compromised (lost, stolen, or made public).
However our customers come to us, we provide the security and peace of mind they seek. It's a risky world out there with bad actors ready to steal not only your money, but also your good name and reputation. You don't have to go it alone, Merchants can help.
I recently read of just another such attack. In this particular attack, the attackers targeted a large utility company (DTE Energy). Metro Detroit residents were contacted by telephone by the attackers posing as representatives of DTE. In the recorded message, the attackers threatened the residents by stating that the resident's account was overdue and that services would be cut. The residents were then instructed to call a toll-free number for resolution.
The provided toll-free number was one operated by the attackers. When the residents called the number, they were instructed to supply their name, address, and social security number. Once the identity information had been harvested by the attackers, the residents were told that they had been contacted in error and the issue had been successfully resolved (no further action required on their part).
The attack was well executed. The recording was believable and convincing. The attack appeared legitimate as DTE does use an automated phone system to contact customers for billing issues but does not collect sensitive information.
It is very easy to become a victim. Identity theft wouldn't be the popular crime that it is if it didn't pay well for the attacker and was reasonably easy to execute successfully. It only requires that the target drop their guard for a moment.
If you receive phone calls like this, be suspicious and verify the source. You can visit the website of the utility company to get their phone number or use the telephone directory. Don't assume that the call is legitimate. You can confirm the veracity of the call by calling back using the phone number you obtained by using your telephone directory or visiting the company's website. A healthy dose of skepticism will go a long way.
Here at Merchants, we see a number of folks who have concluded that their personal information was at risk and didn't feel comfortable not having a safety net were they to discover that their identity had been stolen. For these good folks we offer broad spectrum consumer oriented identity theft services which include: education, prevention, detection, and remediation.
In some cases, forward-thinking companies use our business-to-business oriented services to safeguard their employees (offering them as an employee benefit) or to their customers (a customer benefit for valuable customers). In other cases, companies or other large entities approach us when they fear that information they possess relating to their customers and/or employees might have been compromised (lost, stolen, or made public).
However our customers come to us, we provide the security and peace of mind they seek. It's a risky world out there with bad actors ready to steal not only your money, but also your good name and reputation. You don't have to go it alone, Merchants can help.
Thursday, October 2, 2008
Identity Theft and Illegal Aliens
If you are a resident of the state of Arizona, you already are familiar with the E-Verify program. At the beginning of this year (2008), Arizona adopted a law requiring all employers to verify the employment eligibility of new employees. This goes beyond the mandatory (in all states) I-9 and now requires the use of E-Verify. Many other states are watching with interest to what is happening in Arizona in consequence of requiring the use of E-Verify.
One consequence is a significant drop in the number of ineligible workers applying for employment, as one might imagine.
Before the Form I-9 and E-Verify, illegal workers wanting to secure employment had been able to supply completely bogus information on employment application. After the introduction of the Form I-9, many began to respond to the challenge that the I-9 form represented by stealing the identities of legitimate workers (name, address, social security number, etc.).
The reason for the identity theft is that the federal government checked the I-9 forms and required employers to fire workers who were not authorized to work (name and social security numbers did not match the existing records). The solution for the illegal workers seemed to be to assume the identity (use the name and social security number of someone who would be authorized to work in the US). This frequently required the illegal worker to purchase forged identity documents so that they would be able to cash/deposit the payroll checks.
Now that Arizona has raised the bar with respect to verification of eligibility, the illegal workers have either moved to another state where employment is more easily obtained or have become more sophisticated in their identity theft / impersonation.
Arizona law enforcement has made several arrests of individuals involved in the production of counterfeit identity documents (U.S. Social Security cards, U.S. Permanent Resident cards, etc.). The Department of Homeland Security (DHS) has proposed a program (Real-ID) to improve the quality (and reduce the likelihood of forgery) of identity documents.
However, and quite curiously, Arizona and several other states have passed laws requiring non-compliance with the Real-ID program. It is not certain at this point what the final outcome will be for Real-ID (full adoption, partial adoption, or abandonment).
While the debate continues, illegal workers will continue to acquire forged documents and obtain employment. In order to do so, the identities of legitimate workers have been, and will continue to be stolen.
One consequence is a significant drop in the number of ineligible workers applying for employment, as one might imagine.
Before the Form I-9 and E-Verify, illegal workers wanting to secure employment had been able to supply completely bogus information on employment application. After the introduction of the Form I-9, many began to respond to the challenge that the I-9 form represented by stealing the identities of legitimate workers (name, address, social security number, etc.).
The reason for the identity theft is that the federal government checked the I-9 forms and required employers to fire workers who were not authorized to work (name and social security numbers did not match the existing records). The solution for the illegal workers seemed to be to assume the identity (use the name and social security number of someone who would be authorized to work in the US). This frequently required the illegal worker to purchase forged identity documents so that they would be able to cash/deposit the payroll checks.
Now that Arizona has raised the bar with respect to verification of eligibility, the illegal workers have either moved to another state where employment is more easily obtained or have become more sophisticated in their identity theft / impersonation.
Arizona law enforcement has made several arrests of individuals involved in the production of counterfeit identity documents (U.S. Social Security cards, U.S. Permanent Resident cards, etc.). The Department of Homeland Security (DHS) has proposed a program (Real-ID) to improve the quality (and reduce the likelihood of forgery) of identity documents.
However, and quite curiously, Arizona and several other states have passed laws requiring non-compliance with the Real-ID program. It is not certain at this point what the final outcome will be for Real-ID (full adoption, partial adoption, or abandonment).
While the debate continues, illegal workers will continue to acquire forged documents and obtain employment. In order to do so, the identities of legitimate workers have been, and will continue to be stolen.
Wednesday, September 24, 2008
Hurricane Victims Beware
Sadly enough, hurricanes aren't the only force of nature that disaster victims need to be on the look out for. Apparently identity thieves are also interested in tearing your life apart and leaving you in shambles.
Today, MarketWatch picked up a piece the FTC has put out warning victims of hurricane Ike and those who would like to contribute to the relief for those victims to be on the look out for scam artists, home repair scams and fake charities, all wanting your money.
It certainly is admirable that the human side of us desires to contribute to relief funds intended to help victims of natural disasters. And those willing to do so should continue their efforts, and are to be commended. Identity theft is a devastating force in its own right. But targeting people trying to get their lives back in order, or those willing to help in such efforts is certainly demonstrative of subhuman behavior.
Don't be fooled by these creeps. Before you generously donate money to any charity or relief effort, do your homework. The article referenced from MarketWatch has links to a list of precautions that consumers should take when desiring to aid those in need. If you suspect that a charity is fake, or if you have become a victim of fraud or identity theft, contact the FTC and look immediately into getting identity theft protection, if you don't already have it. Even those who are already victims can get further protection and be eligible for recovery efforts. You don't have to do it alone.
Today, MarketWatch picked up a piece the FTC has put out warning victims of hurricane Ike and those who would like to contribute to the relief for those victims to be on the look out for scam artists, home repair scams and fake charities, all wanting your money.
It certainly is admirable that the human side of us desires to contribute to relief funds intended to help victims of natural disasters. And those willing to do so should continue their efforts, and are to be commended. Identity theft is a devastating force in its own right. But targeting people trying to get their lives back in order, or those willing to help in such efforts is certainly demonstrative of subhuman behavior.
Don't be fooled by these creeps. Before you generously donate money to any charity or relief effort, do your homework. The article referenced from MarketWatch has links to a list of precautions that consumers should take when desiring to aid those in need. If you suspect that a charity is fake, or if you have become a victim of fraud or identity theft, contact the FTC and look immediately into getting identity theft protection, if you don't already have it. Even those who are already victims can get further protection and be eligible for recovery efforts. You don't have to do it alone.
Monday, September 15, 2008
FTC Mandating Identity Theft Programs
The Stanley News and Press is reporting today that the FTC is now requiring municipalities to implement identity theft programs. The reason? Apparently utility companies and other similar municipalities are ranked third in the list of identity theft targets. Read the full story here.
This really seems to be more of an attempt to enforce compliance with the Red Flag Rules then anything. From the Merchants Information Solutions Red Flag Rules web page we can learn that the red flag rules are an initiative put in place by the "Fair and Accurate Credit Transactions Act (FACTA), Section 114 which states that all financial institutions and creditors must have a written plan to prevent, detect, and mitigate identity theft in relation to its new and existing covered accounts by November 1st, 2008."
When you think about it, it really just makes sense that the municipalities also take the same initiatives as the financial institutions. After all, to open an account with your local power company they want your name, address, phone number, social security number and many other pieces of personal information. Is it any wonder they are the number 3 target? This really is good news for us all.
Merchants' SmartIDentity+ line of identity theft products will help support your company's efforts to comply with these rules. Take a look at how we can help your company today and beat the November 1st deadline.
This really seems to be more of an attempt to enforce compliance with the Red Flag Rules then anything. From the Merchants Information Solutions Red Flag Rules web page we can learn that the red flag rules are an initiative put in place by the "Fair and Accurate Credit Transactions Act (FACTA), Section 114 which states that all financial institutions and creditors must have a written plan to prevent, detect, and mitigate identity theft in relation to its new and existing covered accounts by November 1st, 2008."
When you think about it, it really just makes sense that the municipalities also take the same initiatives as the financial institutions. After all, to open an account with your local power company they want your name, address, phone number, social security number and many other pieces of personal information. Is it any wonder they are the number 3 target? This really is good news for us all.
Merchants' SmartIDentity+ line of identity theft products will help support your company's efforts to comply with these rules. Take a look at how we can help your company today and beat the November 1st deadline.
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