Child Identity Theft

Childhood is supposed to be an innocent time. Kids shouldn’t have to worry about paying bills, getting loans or using credit cards to make purchases. For this reason – plus the fact that most credit is only available to persons over 18 – kids should not have credit records on file. If you look up your child’s name through one of the three credit bureaus it should come back as “no record.”

The sad truth is, though, that some kids aren’t so lucky. These kids have been victims of identity theft, and most don’t even know it. They will find out – of course – when they get older and want to buy a car or a house or even just open a low-limit student credit card. That’s when the delinquent accounts, bad debts and even bankruptcies will come to light – which could have been on the record for years, making it even harder to get the removed in a lot of cases.

You may be asking yourself how kids can be victimized by identity thieves when they don’t even have any credit available to steal. It’s easy. Kids still have names, birth dates and Social Security numbers, with the Social Security number being the key item in this case. When you simply see a string of nine digits, you don’t know the age of the person it belongs to and you have no idea what this person looks like, buy you’d probably assume it is an adult – an assumption that can get an identity thief pretty far.

This assumption has led to babies with auto loans, toddlers with utility bills and the like. A lot of times a relative or close family member – sometimes even a parent – steals the child’s Social Security number to pass off as his or her own if this person has gotten into some credit trouble, but this isn’t always the case. Sometimes it’s a hospital or school employee, and sometimes it’s someone who simply guesses the number and doesn’t know it belongs to a child.

This is why identity theft protection plans – such as TrustedID – offer protection to parents and grandparents as well as their dependent children. While some people may think it’s silly to buy such a plan, it could be the best investment you ever make in your child’s future, and an affordable one at that. LifeLock also protects your children but grandparents will have to sign up separately.

THE SOCIAL NETWORK

While the new movie that just came out highlights some of the problems that occurred when Facebook was getting its start, it’s important to know that the mother of all social networks still have some serious issues, identity theft being one of them. Even with the management of Facebook getting a lot of flack as of late in regards to sharing users’ personal information with the community at large, it’s still super easy for an identity thief to create an account using another person’s name and picture – and then to use that profile to become “friends” with people that individual knows. There is no identity verification required to create a Facebook account.

Think about it. If you got a friend request from someone with a name you know and a photograph you know, you really wouldn’t have any reason to think that account was illegitimate, unless you specifically asked the person about it. Thieves take advantage of this innate trust and use these Facebook accounts to mine for additional personal information or to ask their “friends” for money.

One of the leading scams in regards to this was one that circulated for several weeks. Facebook users told their “friends” that they were stranded overseas and needed money wired to them so that they could get home. There is no record of how many people actually fell for this scam, but it’s likely that tens of thousands of individuals were contacted. The sheer volume of people with Facebook accounts makes these types of scams easy simply due to the law of odds. If you try enough times, someone will eventually fall for it.

FBI agent Alice Tsujihara recently told NBC LA, “A few years ago, statistically they said one in four are victims of identity theft, but with all the skimming and counterfeiting, I think all of us will eventually become a victim and we certainly will know people that have been victims of identity theft.”

Even if you’re not a member of Facebook, you can still be targeted by a thief using a Facebook scam. This happened to Diane Solomon. The only reason she found out she had a “Facebook account” is because a friend sent her a text message and brought up their recent Facebook chat, of which Solomon was not actually a participant.

Those who have Facebook accounts need to change their passwords on a regular basis and make sure they are not the same ones they use for other online accounts, such as their primary email address. If you get a strange message from a “friend” on Facebook, even if you know the person, contact that person directly to verify the legitimacy. Think of it in the same way you would a phishing email. There is nothing wrong with being suspicious.

Johns Hopkins Identity Theft

If you live in the Baltimore area, you probably know of Johns Hopkins as one of the premier medical centers in the country. If you live in another part of the country, you may have heard of Hopkins because it is the setting for a case of identity theft involving fraudulent credit cards and the stealing of over $600,000. On October 4, five individuals were indicted on charges of stealing patients’ personal information and using it to open accounts at retailers that offer instant credit.

At least one of the individuals, Jasmine Amber Smith, was on the hospital’s staff. Among the victims were both patients and the parents of patients who were under the age of 18. Smith and her accomplices allegedly got credit accounts at at least 50 different stores. While not all of these cards were in different people’s names, each one created a different file on the person’s credit accounts.

It is hopeful that the victims of these thefts had identity theft protection plans. That way they could have learned quickly that the fraudulent accounts were being set up in their names. Otherwise, it could have been weeks or even months before they noticed anything was awry. The protection plan not only helps prevent some cases of identity theft, but it also helps the victims know before collection agencies have the opportunity to get involved. It’s much easier to fix things before you have a negative mark on your credit.

Zeus Malware Program Designed to Steal Data

While those familiar with Greek mythology know of Zeus as the king of the gods, those familiar with identity theft know that the mighty Zeus has a much more sinister side. Zeus is the name of a malware program that has been around for a while and is designed to steal data. Recently this program was used to phish people’s information when they made online purchases. While you are probably familiar with phishing emails, you may not have heard of this newer and similar scheme.

With this Zeus attack, legitimate merchants are having their websites taken over. When a customer goes to make a purchase, a popup window appears stating that the person needs to create an account with either MasterCard SecureCard or Verified by Visa to continue. These legitimate services are, ironically, designed to give you greater Internet security. They require you to set up a password to use when shopping online so that people who have your credit card number and three digit security code still can’t use it to shop online without your permission.

However, when you “sign up” for these protections through a Zeus hacked site, this of course isn’t the case. To register for one of these services, you’ll need to – understandably: – provide your credit card information. If you enter your credit card information on a hacked site, well, the rest is history.

To prevent this from happening, pay attention to your online surroundings, so to speak. If you notice a suspicious popup window on a site that is not itself suspicious, get off the site and contact the webmaster. Sometimes webmasters don’t know that their sites have been victimized. Either they don’t visit often or the attack hasn’t been going on very long

– usually the latter. If the site itself is suspicious, it’s likely the webmaster knows and is probably embracing the practice.

Before entering personal information, even if you’re just signing in to an existing account with your username and password, look for the Web address to start with “https” instead of just “http.” Also look for the lock icon, which is just like what it sounds like. It appears to be a padlock and should show up in the bottom right corner of your screen. If the page is super secure, you might see a green address bar. This is not something to worry about…. its a good thing.

While this Zeus virus is, obviously, out in the open now, it doesn’t mean it’s not still out there – plus – you may have already been victimized and not realized it. That’s where identity theft protection can come into play as your fallback option. To paraphrase an old commercial, it works hard so you don’t have to. If you’ve seen a questionable popup or you do in the future, it’s smart to run a virus scan on your machine. Sometimes malware can take residence on your computer behind the scenes – logging keystrokes or recording your preferences so it can send you spam.

Lessons From A Colorado Scam

Colorado based business got a little more than what they bargained for thanks to a lax security policy on a website that was completely open to the public. This site was one that contained registration data for companies located in the state. While having registration data viewable to the public is normal, and it can actually help you determine that you’re dealing with a legitimate business, the problem arose when people were allowed to edit the business listings at will – no user name or password required.

Guess who discovered this and used it to their advantage? Identity thieves of course. They found that they could change business’ addresses and other contact information, which allowed them to apply for lines of credit in the business’ names. They were then able to make purchases for their “businesses” at retailers like Home Depot, Apple, Dell and Lowe’s. The charges to Home Depot alone topped $750,000.

So why were there no security measures in place? No one worried about identity thieves accessing the database. A spokesman for the Colorado Secretary of State told ComputerWorld that this was done on purpose so that the directory would be easy to use. The only safeguard they had, though, was if they requested to be emailed if their records were updated.

Would an identity theft protection service prevented these thieves from creating the lines of credit? Probably not. Why I bring this to your attention is because it brings up an interesting point. Just because you’re careful with your personal information doesn’t mean others that have access to it are as careful. Your information could show up on a website without your knowledge or someone could pretend to be you just by knowing one little detail, like your home address.

The difference is this. If you have identity theft protection, thieves will still be able to get your information if they try hard enough, but the service can prevent them from using it or shut them down as soon as they try to use it once. Instead of having $750,000 of debt on your hands to ruin your credit rating, the damage will likely be minimal, and you can probably get any expenses you incur refunded. If you have no protection you are taking chances, just like the millions of other Americans who will learn things the hard way this year.

Identity Thieves and Tourists

The long winter days mean lazy days for identity thieves. With all the tourists traversing the country, many of whom are unfamiliar with their surroundings, it is prime season for yanking wallets, purses and passports. No matter what city you’re visiting, or what city you’re visiting from, you need to be extra careful to keep your personal information safe – not to mention other belongings – like your camera.

Here are some tips to prevent identity theft while travelling:
• Keep an eye on your luggage. While this may seem like a no brainer, it happens all too often. An unsuspecting tourist looks up to check the arrival times for the train and looks down only to see that his Samsonite slip into a departing car. Hold the handle while you look.

• Store valuable items on your person or in a hotel safe. In this case, valuable items mean your passport, your driver’s license, your extra cash. You’re asking for trouble if you bring along fancy jewelry or other pricey valuables. Insist on them tagging along? Buy insurance.

• Use an indoor voice. If you have to give sensitive information out orally. Perhaps you need to tell a reservation agent your credit card number over the phone; if you do, speak only loud enough for the person on the other end up the line to hear you, not for any passersby. Try to use a cell phone instead of a pay phone so you can speak in a more private place.

• Never make reservations by sending an email if they require credit card information. There are no guarantees the information transmitted this way is secure.

• Be careful what sites you visit if you’re going online from you hotel, the airport, an Internet café or any other public place. While it’s okay to check the performance
schedule for a play you want to see or to download a map to your next destination, don’t log in to your bank account, pay bills or do any online shopping. The networks are not secure like the one at your home (hopefully) is. There could be a hacker sitting at the table right next to you posed as another tourist. There is basically no way for you to know.

If you get travel insurance before you leave for your destination, it’s likely the insurance will reimburse you for the value of items in your suitcase, but very few plans will help you if identity theft occurs. Instead, it’s smart to have a separate identity theft protection plan to supplement this coverage.

Fake Debt Collectors Poised to Commit Identity Theft

Residents of the state of Indiana are requested to be on alert due to a rash of identity thieves posting as debt collectors. According to the state’s attorney general, these collectors have a large amount of personal information about their potential victims, which is making them more susceptible to falling for this scheme – and losing a rather significant amount of money.

The identity thieves are posing as collectors for official sounding agencies, like the IRS Collection Service and aggressively trying to browbeat their targets into repaying alleged debts in order to prevent being sued, being arrested or being thrown in jail. They are asked to either wire money to the thief’s account or to provide information about their bank accounts.

If the consumer doesn’t fall for the scam the first time, thieves have been known to call them over and over again to the point of harassment, along with using increasingly abusive language when speaking to them. The point is to make the consumer so upset and worried that he or she will do anything to make the harassment stop.

So how do the thieves already have information, such as addresses, birth dates, Social Security numbers and possibly even closed bank account numbers? Simple. They’ve collected them from past data breaches. This makes consumers even more vulnerable because it can cause them to trust the thieves when they shouldn’t. The thieves may also ask them to verify the information they have and then provide additional information, which will only make things worse in the long run.

Whether you live in Indiana or not, be wary if you get a call from a “debt collector.” Ask that the person send you a collection notice in the mail, which, if the company is legit, it is legally required to. Legitimate agencies are not allowed to make harassing or threatening phone calls.

If the person already has information about you, such as your Social Security number, it would be wise to contact the three major credit bureaus and have fraud alerts put on your credit files. This is also the time when you should sign up for identity theft protection services before anything major happens with your credit.

You can also report the harassing calls to the Federal Trade Commission by calling 1-877-FTC-HELP.

Dog forces woman to become identity thief

There are enough problems with identity theft in the United States, with nearly nine million Americans victimized in 2008, without our four-legged friends getting in on the action. However, this appears to be happening, at least according to one woman in Arlington, Washington. According to this woman’s statement to local authorities, her dog ate all of her checks making it imperative that she steal her ex-husband’s bank account information and use it to pay her bills.

Oh, what a sad world it is when even the faithful family dog tries to lead us to a life of identity theft, or when a person uses this rather unoriginal take on the “my dog ate my homework” excuse you may have tried back in grammar school.

While this case is rather laughable at best, it does bring to light a sobering fact. Just like with many other crimes, if you become a victim of identity theft, it is likely that the perpetrator will be someone you know. It could be an ex-spouse, a coworker, a person you have contracted to do a service or even your child or parent. It’s not always going to be that sinister individual hiding behind a keyboard somewhere in Nigeria.

The reason for this is pretty simple. People that know you don’t have to try too hard to get access to your personal information. In the Arlington, Washington, case, it sounds like the woman already knew her ex-husband’s account information, possibly because the account used to be shared. So all she had to do was take it upon herself to use it to finance a few things. The same thing can happen when someone you know has ready access to your driver’s license and Social Security number, for example; not to mention your home address.

While most of the high profile cases of late where this type of identity theft took place were committed by exes or estranged family members, the dynamics of many of today’s families tell us that you never know when a rift can happen. It’s best to share information on a need to know basis even in your own circle. Just think of it as an extra safeguard, even if it’s doubtful that you need it.

If the unfortunate happens and a person does end up getting divorced or falling out of favor with a family member with whom he or she shares an account, the best thing to do is to close that account and open two separate ones to avoid any suspicion of impropriety — real or imagined. A lawyer or mediator can help facilitate the process if needed.

Of course you would rather just trust people. Seriously, who wouldn’t? The next best thing you can hope for is an identity theft protection plan. At least with a protection plan you can remove some of the burden from your shoulders and place it on the plan’s watch instead. Then it is up to the company to keep your accounts guarded against unauthorized use, especially the opening of new accounts in your name.

One thing a plan can’t do? Keep Rover or Fido from munching on your checkbook – which could apparently lead you to a life of crime. So please keep it out of his reach to avoid the temptation.

A Quick Virus Story

You would think that someone who writes about identity theft on a regular basis would be able to avoid being put at risk for this crime. Well, unfortunately, you would be wrong. A couple days ago, I was doing some research on the Internet and I came across a message board I thought I could glean some information from. I had been on the site all of two minutes when all of a sudden a virus alert popped up on my screen; then another; then another.

Soon my monitor was filled with gray pop-up windows with bright red text. Then a green shield appeared in the bottom right corner. I clicked on the shield and up came the homepage for AV Security Suite. A virus scan window from AV Security also popped up telling me I had a number of Trojans and other types of malware. It was only when the opportunity to buy the Security Suite appeared that I realized something was up. I immediately closed the window and called tech support. The process of removing the program was arduous, but it was better than what could have happened if I had typed in my credit card number.

AV Security Suite, and other programs like it, are types of rogue or fake antivirus software. Just like in a phishing email, the person who creates the program attempts to scare the consumer into doing something that causes them to give away his or her personal information. If I had taken the bait and “bought” the antivirus program, my credit card number, and probably my name and address too, could be on its way around the globe right now via a black market message board. I can certainly understand how people fall for this scam.

A few things I’ve learned from this experience:
1. Be familiar with the antivirus software on your machine. I wasn’t sure which antivirus program I was using, so, if only for a second, I thought maybe AV Security was my antivirus software.
2. Keep your antivirus software up to date. Don’t forget to download the latest version.
3. Be careful which sites you visit. It’s best to stick with ones that you know are legitimate. There are literally thousands that can harm your computer.
4. If something looks suspicious, even if you’re not sure why, you’re having doubts for a reason. Don’t ignore your gut.
5. Think about an identity theft protection plan. It can help you out if you end up in a sticky situation. If I can get targeted, you may too at some point.

International Credit Card Scam

Yet another large scale credit card scam has been found and stopped by the Federal Trade Commission. This latest one involved over $10 million in unauthorized credit and debit card charges and affected over a million Americans. An interesting thing about it is that it’s possible thousands of the victims didn’t even notice they were part of this scam since the thieves made charges of only about $10 on each stolen credit or debit card.

Another reason victims may not have figured out they were scammed is because the thieves used fake company names that were close to the names of real companies to filter the charges through. For example, a person could receive a charge on his or her statement from Amazen.com instead of Amazon.com and be none the wiser.

The people that did notice the bogus charges on their bank statements weren’t much luckier either. If they called a number that was associated with the charge in order to try and dispute it, they got either an answering machine or found out that the number was disconnected altogether.

So how did the scammers get the numbers in the first place? It’s likely a lot of them came from phishing emails, where the scammers pose as legitimate companies and encourage people to make purchases or log in to fake accounts. It’s also possible that they got them through hacking or through low tech methods like simply stealing people’s wallets.

Possibly the worst thing to come out of this case is the fact that the vast majority of victims didn’t even know they were victims. How horrible would it be to know that a thief has had your personal information, in some instances for five years, without your realizing it? You never know where it could end up next.

This is a great advertisement for an identity theft protection service. If these people had one in place, they probably wouldn’t be in the dark. The point of a plan is to allow individuals to be notified right away if someone that shouldn’t have has access to their credit. It’s not out of the question for someone to not notice a charge that is relatively small, but a plan should be able to catch it.

It’s also important to continue to check your statements each month even if you have an identity theft protection plan. Looking for unauthorized charges is a good habit to get into, and it can also help you get a good idea of how you are spending your money.

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