Identity Theft

In more proof that identity theft can strike any American, no matter who they are, Fed Chairman Ben Bernanke told Newsweek a while back that a member of his own family was a victim of the crime in August 2008.

A thief stole his wife Anna’s purse from the back of her chair at a Washington, D.C. area Starbucks, and used this ill begotten find to attempt to cash checks in the Bernanke family name. In addition to getting a hold of Anna Bernanke’s checkbook, the thief also had access to credit cards and identification he may have kept to use in the future when the opportunity presented itself.

Luckily, police investigators were able to locate the perpetrator, who along with an additional 21 people, were indicted in a large scale crime ring. George L. Reid, the alleged purse snatcher, received a charge of conspiracy to commit bank fraud, not just due to his attempt to use Anna Bernanke’s information, but also for stealing information from several other individuals.

Ben Bernanke told Newsweek magazine that he and his family have had to take measures to prevent identity theft from harming them again. Perhaps these steps have included the purchase of an identity theft protection plan. Identity protection plans are especially helpful to people who have already been victimized by identity thieves for two reasons.

First, even after prior victims of this crime have cleaned up their credit files, their personal information may still be “floating around” on the black market. This makes it important for them to keep very vigilant watches on their credit to insure no further crimes are committed.

Second, there is a peace of mind factor that is incredibly important to those that have already been burned once, so to speak. These people may be afraid to use credit online, to carry identifying information in their purses or wallets or to mail payments. Instead of avoiding all of these tasks, which can make life very inconvenient, they can use a protection plan as a kind of backup security so that even if they occasionally slip up their credit is still safe.

It’s also a good idea to note how Anna Bernanke was targeted. Anyone who’s ever been to the D.C. area knows that the Starbucks coffeehouses are bustling, no matter the hour of the day. Sitting in a hectic restaurant packed with patrons, Anna most likely was not keeping a close watch on her handbag. This is the perfect opportunity for a thief.

People who carry handbags, whether they are in crowded areas or not, are best to store them in their laps, in a chair next to them, or somewhere else that is in plain sight. This can be all the deterrent a thief needs to move on to the next table.

If doing so is impractical, the next best option is to carry a small wallet in a pocket that contains cash and credit cards and put other items in the purse. That way even if a thief does make off with it, all he’ll get is, for example, a makeup bag and some car keys.

A lot of people complain that the government isn’t doing enough to prevent identity theft from happening in this country. Seeing as 12% of Americans have been victimized, it’s not hard to see things in this light. That being said, you may find it encouraging that something new is being done. The government is working on what it calls a National Strategy for Trusted Identities in Cyberspace.

The point of this policy is to help people protect their identities online by adopting online credentials, mobile identity cards or something similar that people can use to prove that they are who they say they are before they make a transaction over the Web. These personal identity cards and such are said to be part of an Identity Ecosystem.

If this policy becomes mainstream, you could see the age of usernames and passwords go away in favor of a more high tech way to automatically be identified. The point is to also make it easier to identify legitimate organizations by giving consumers an easy way to tell that the business they think they’re doing business with is who they are really submitting their information to. As of now, the policy is still in beta mode, and it is said that it will be voluntary for an indefinite period of time.

In a press release, government representatives stated that adopting this policy will make it harder for thieves to make fraudulent online transactions, allow for more efficiency, since they can use the same passwords for each online account or have fewer accounts altogether, and allow consumers a choice of which type of online identity they would like to use.
With these online IDs, people can choose how much information they would like to release to complete a transaction. For example, they don’t have to give personal data that is not necessary to complete the purchase.

While this new policy could help to keep you safer over the Web, it’s no substitute for a good identity theft protection plan. This is especially true since it hasn’t really been tested yet and, according to current message board postings, feedback is not overwhelmingly positive on this plan. There’s still a very good chance that it won’t be widely adopted, and you don’t want to risk doing business with a merchant that doesn’t participate and will not accept your high tech ID. It’s best to stick to the tried and true until more information is available.

While the iPhone was on top for a while, the phone of the minute seems to be the Android. Since so many people are purchasing these phones, it’s no surprise that identity thieves are starting to take notice. According to Kaspersky, a well known online internet security company, criminals developed the first Trojan horse virus that runs on the Android last year.

People invite this virus into their phones by downloading a “media player” app. Once the program is on the phone, it starts sending text messages to phone numbers that charge fees for their services. The crook is able to keep that money. It’s also possible that the crook could install spyware on the phone to collect names and phone numbers.

To prevent installing this virus, or another one like it, on your phone, only accept applications that are sold or given away through the official Android store, and be wary of apps that require manual installation. You could end up getting more than what you bargained for.

On a related note, you should be careful what personal information you store on your cell phone, since you never know when it could end up in the wrong hands. You could lose your phone, or someone could easily steal it, and if you have something like your Social Security number or bank account password on it, a thief can easily access it, even if your phone is protected with a pass code. Cell phones are some of the easiest devices to hack. That’s one reason why there are so many available on auction sites and on the black market.

When you dispose of your phone, make sure you keep the memory card, or else it’s perfect pickings for a dumpster diver. Better yet, grab the memory card and recycle your phone at an electronics store. That way you are preserving your personal information and helping Mother Earth at the same time.

Also, keep your eyes on the news for the latest in cell phone viruses and malware. That way you know which files to stay away from. Identity thieves and other hackers are coming up with new tactics all the time, and you have to stay one step ahead of them.

For peace of mind add an identity theft protection service to your arsenal. It not only helps protect you from identity theft but also includes either a guarantee or insurance should you become a victim.

When you think about buying and selling products online, you probably imagine eBay or Amazon.com. However, the identity thief has different ideas. He or she goes to underground trading channels and buys and sells credit card numbers and personal information. And this information can be gotten for low, low prices of as little as $5 for certain items. See the Dateline video on our home page for proof.

This so-called online black market is most likely here to stay – and business is booming. According to an article by Brad Reed of Network World, Symantec, maker of the popular Norton antivirus software, recently published a report on the state of the market. It found that it currently holds over $270 million in information and other goods – 16% of that being identity theft information and a whopping 59% reserved for credit card accounts.

Could your information be involved in this ring around the Web? While odds are that it isn’t at present, there is no way to rule out the thought completely or know that it won’t make its way there in the future. That’s because people don’t release their information to the trade voluntarily. An identity thief takes it upon him or herself to procure it. And, since business seems to be pretty darn good, there’s no doubt that thieves will continue to take advantage.

Unfortunately, there’s no way to completely prevent your identifying information from falling into the wrong hands. But once it’s there it’s better to find out ASAP than to learn about it when your credit rating suddenly plummets for no particular reason.

One thing you can do to stay ahead of the game as much as possible is invest in identity theft protection.

Many protection plans offer services that will scour the Web for you to look for your information in the most popular underground markets. Once such plan is LifeLock’s eRecon. If you sign up for this service in conjunction with a complete protection plan, LifeLock will look for your Social Security number, driver’s license number, email address and credit card account numbers and notify if any are spotted.

Since it’s very difficult to do this yourself and you could get caught up in some legal trouble for frequenting the underground sites, a plan such as this is definitely your best bet. Other identity protection companies that include this service that we highly recommend include Identity Guard, TrustedID and Identity Force.

Besides that, all you can do is keep your information safe as best you can. Don’t respond to unsolicited emails requesting personal information (these phishing emails are the source of a good deal of the information on the black market), never enter personal data on a website unless you’re sure it’s legitimate (as there are faked and spoofed sites being created all the time) and shred credit cards, bank statements and other financial paperwork before you throw it in the trash or the recycling bin (some thieves will be happy to dig through for account numbers). The reality is, you never know who’s looking to make that next big sale or trade, so don’t make it easy for them to get their hands on the merchandise.

You may have heard the slogan, “Don’t worry. We’ll make more” used to describe Doritos chips. But you probably didn’t know that this can be just as easily applied to identity theft as to food. Despite a rash of recent indictments, identity thieves are stepping up their efforts to garner personal information from unsuspecting computer users.

According to Information Week, a trusted publication in the technology world, there has been a whopping 600% increase in computer users with personal-information capturing malware on their machines in the period of January through June of 2009, compared to the same period in 2008.

Despite increased public awareness of identity theft and measures to use to prevent it, it seems the thieves are still doing pretty well at their game, and they are getting more creative at the same time. Instead of sticking with phishing emails and low-tech methods, like dumpster diving, they are increasingly using Trojans, viruses and worms to do their dirty work.

They distribute these files not so much by using email, as before, but by sending files to their “friends” on social networking sites; targeting third party payer sites, like PayPal; and creating Web pages that contain malware that consumers may stumble upon simply by using a search engine.

One of the big scams right now is a group of pop-up windows that appears in front of a legitimate looking webpage. These windows are a spoof of virus scan windows. The consumer is told that there are viruses on his or her machine and that antivirus protection is needed to get rid of them. Luckily, the site that launches these windows happens to sell such a product for $50. If a worried consumer pays the money, he or she is rewarded with an “antivirus program” that is actually spyware. So he or she is not only out the cash, but his or her “private information” is now a thing of the past.

Some blame the economic downturn for the increase in ID theft. Others blame the sheer demand for personal information – especially as it relates to finances – on the black market. In the end, it doesn’t really matter why your information was stolen when you are faced with a loan denial due to a black mark on your credit report.

That makes this an ideal time to stop worrying and get a credit protection plan. Just like malware, these programs are readily available. The difference is that they are designed to have a positive effect on your life – and potentially your finances. If something happens and your computer gets infected with malware, a plan can help to keep your credit safe.

You can be notified if someone tries to open a credit account without your permission or if your information comes up on the black market for sell or trade. Many identity protection plans are sponsored by the three major credit bureaus: TransUnion, Equifax and Experian. These companies are in the business of protecting consumers, since identity theft can hurt their credibility. Think of them as the anti-identity thieves.

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