Identity Theft

The Debix Identity Protection Network, gave Javelin data on 500 children who were enrolled in their service from July 18, 2008 through September 12, 2008 to research and analyze for their child identity theft study. The study found that 5% of children, aged 17 and under, had a credit report with their Social Security number. Children should not have credit reports. At 1 in 20 that is one child in every classroom in the United States that has their credit messed up in some way. Statistically, 3.8 million children may already be affected by identity theft. Other highlights of the study are:

• Among the 5%, the average amount of debt was $12,779.
• 12% of those with credit problems were aged 5 and under.
• 25% of these victims had bills or lines of credit in collections or foreclosure. 66% of these children had fake or wrong names listed under their SSN.
• 42% of those children with erroneous credit reports only had credit files at one credit bureau, meaning their fraud could have gone unnoticed without checking all three bureaus.

Debix has also released the story of some of these children, with the parents permission of course, and they are very interesting. Gregg White enrolled his 17 year old daughter along with himself and found she owed $325,000 and that her Social Security number was in use by a criminal for 25 years. That’s right 25 years, it was being used for 8 years before she was born. Another child had seven identities under his SSN. One fourteen year old had a credit history spanning 10 years and included credit cards and a foreclosed mortgage. These point to an important issue regarding child identity theft, that the crime can often go undetected resulting in larger losses and a far more difficult time restoring your credit and identity.

Debix helped all these victims restore their identity but many young adults are left to fend for themselves unaware that they were saddled with debt and fraudulent credit activity until they are turned down for their first job or refused their first credit application or student loan.

So what can you do to protect your child from identity theft?

First, you have to realize that they are just as vulnerable as you so you have to be vigilant in your protection of their personally identifying information. Just a few weeks back a former PTA president in California was convicted of identity theft and sentenced to three years in prison. Her victims, 57 people, included her neighbors, her dead mother and a 6 year old girl. Trust no one, not even family. Question those who require your child’s SSN. Do they really need it? How do they protect it? Talk to your child about keeping their personal information private especially online. Shred any identifying information.

Second, write to the credit bureaus using certified mail to see if your child has a credit report or if there are any public records using your child’s SSN. If your child has a credit report you know their is a problem and will unfortunately spend many hours researching, filing paperwork, and making phone calls to restore your child’s identity.

Third, your families private information at home, both physical and electronic, should be locked up. This means password protecting your computer and using a safe or locking file cabinet. Child identity theft is often committed by someone known to the victim.

The other option, and a much better one in our opinion, is to use an identity theft protection service such as Debix to protect their identities. Debix will monitor your child’s SSN to make sure it isn’t used fraudulently. They routinely search thousands of available public databases, including all three national credit bureaus, criminal and bankruptcy records, utility service records and others, to determine if someone is using your child’s SSN. They will also include identity theft insurance and restoration services in the event they do become a victim. With Debix you can even sign up your child even though you are not enrolled. Debix costs $24 per year per adult and $20 per year per child. Get the peace of mind you deserve, protect yourself and your children today.

A recent European data breach has rung alarm bells worldwide. According to the Wall Street Journal European law-enforcement officials discovered a high tech identity theft ring that funnels account data to Pakistan and has affected big retailers like Walmart Stores and Tesco in Britain.

What has raised alarm bells, in addition to the fact that account information was being sent to a county that al Qaeda uses as a base, is the use of untraceable devices and a sophisticated program that makes the data breach very hard to detect. In fact, Joel F. Brenner, the U.S. government’s top counterintelligence officer said

Pretty small but intelligent criminal organizations are pulling off transnational, multi-continent heists that only a foreign intelligence service would have been able to do a few years ago.

The Pakistan identity theft ring placed a 4 ounce card capable of wireless communication under the motherboard of credit card readers made in China. The bug would read credit or debit card information, store it and then call a Lahore Pakistan server once a day to upload the data.

What made their system almost undetectable was a sophisticated program that would only upload account information sporadically, changing the pattern of the theft to avoid detection. The bug would also communicate with the server in Pakistan to receive new instructions daily and could even be told to become inactive to avoid detection.

So far hundreds of tampered credit card readers have been found in Britain, Ireland, the Netherlands, Belgium and Denmark. Investigators can only tell the tampered readers by weight as there are no indications externally. The investigation is continuing and is likely to find many more data breaches though it is uncertain whether this particular scheme may have been implemented anywhere outside Europe.

According to the WSJ the ring has made repeated bank withdrawals and online purchases, including airline tickets, in several countries including the United States. Early estimates peg the loss in the $50 to $100 million range. Hard to believe that everyday good citizens ‘could be’ contributing to terrorists to the tune of $100 million or more. The key there is ‘could be’ as there has been no official blame put on al-Qaeda or anyone for that matter. Still it is alarming that identity theft rings from far away countries can steal our personal information and withdraw money from our bank account or charge our credit cards. Terrorists or not, we all know they are not up to anything good.

If you have not taken the time to educate yourself about the threat of identity theft I think this gives you a clear and present reason to do so. In the last three years over 217 million Americans had some form of personal information exposed by a data breach and over 25 million Americans have become victims of this crime. Data breaches are still increasing. Street gangs and sophisticated identity theft rings have already been busted but far more have not been uncovered. Large criminal rings like the mafia, biker gangs and even terrorists have far more resources and if not already involved will be soon. This is not meant to scare you, it is simply reality. Please follow the link to learn about the best identity theft protection services available. Your financial security is far too important to leave unprotected.

So you’re afraid of unwanted activity on your credit report—who isn’t? Or, you’ve already noticed some. What is the best way to protect your name?

The two main ways to flag your account is by issuing a fraud alert or a credit freeze. But which one should you use?

A fraud alert is simply that—it alerts creditors that you are trying to protect yourself from fraud, and it does not affect your current credit. It protects you from credit applications that are made without your authorization. It makes the creditors take one more step, in that they must confirm your identity (routinely done by personal contact at the phone number you provide), before issuing new credit or bank accounts. This way, they contact YOU and no one else before opening an account in your name.

So, say Joe Shmoe got a hold of your information and tried to open a new interest free credit card at Electronics ‘N More. You’ll get a call asking for confirmation. This way, you may know the exact moment the activity is being done, where, and by whom, and can instantly alert the authorities with a better shot at success than if you just find the information on your credit report—after all has been said and done.

Of course, even when you apply for your own credit, you’ll be called as well. But at least this time you can confirm that it is indeed you that is applying for credit and NOT Joe Schmoe!

Fraud alerts expire after 90 days, so if you want to keep one continually on your account, you’ll have to renew it every three months. Or, if you sign up for an identity protection service, such as LifeLock or TrustedID, they will handle this for you and keep it renewed until cancellation of their service.

Alternatively, you can place a credit, or security freeze on your accounts. This, unlike do it yourself fraud alerts, costs money, generally around $10 per credit reporting agency though it does vary by state. Some states have even made it free for identity theft victims who have a police report proving they are indeed victims.

Credit freezes previously involved writing a certified letter with your personal information to each agency requesting that this freeze be placed, lifted, or removed but the bureaus are starting to allow this to be done online (please see each of their personal websites for specific information regarding placing a credit/security freeze, as each company’s policy is different). All credit bureau sites are listed in our identity theft resources section. We suggest using certified mail to send any valid identification that is requested by the credit bureaus. You may also want to look at TrustedID as they have an add-on service to their regular offering that allows you to freeze and unfreeze your credit at all three bureaus from a single interface. An additional charge that varies by state applies.

Remember when placing a freeze, it also keeps YOU from applying for additional credit. So if you place a freeze, don’t expect to run to Electronics ‘N More and open a credit account, as you will quickly be denied due to the freeze. Utilities, landlords and employers often need access to your credit file as well so this service is definitely not for everyone. Credit freezes are suggested for people who have moved passed the point where they need credit, like seniors, or people who are currently under attack by an identity thief.

So how do you remove it? You will have to contact each credit bureau and pay them again to remove or lift the freeze temporarily. Be expected to give out all your personal information again to identify yourself—they want to make sure it is you, and not someone else, trying to remove the freeze. Keep in mind that dealing with the bureaus can be a frustrating experience as they are not known for their customer service.

The only other choice some consumers may want to consider is credit monitoring. Credit monitoring services can be an effective identity protection tool but they are not pro-active like fraud alerts in that they only notify you after the fact that you have become a victim. Unlike fraud alerts and credit freezes they do not stop identity theft, they just make you aware quickly so that you can start cleaning up the mess immediately. Many credit monitoring services do come with identity insurance, which is a great benefit, just make sure that the company you choose monitors all 3 credit bureaus or you may be unaware of an identity theft attack that does not propagate to the bureau that is monitoring your credit.

What’s best? It depends on your wants and needs. If you just want to make sure that creditors take the extra step to verify your identity, then place a fraud alert and renew it every 90 days. But if you notice suspicious activity already, or don’t plan on applying for any credit, jobs, rentals or loans, feel free to freeze your credit to keep anything from happening to your personal data. Remember though, a credit freeze is still not full proof and though access to your credit report will be blocked to companies you do not currently deal with, existing creditors will still have access. In this way an identity thief can still trick existing creditors such as your bank to extend further credit to them. Keep in mind though that freezes and do it yourself fraud alerts don’t have the additional benefit of identity theft insurance.

The alternative is to have an identity protection service do the work for you for a minimal charge. It’s a small price to pay for peace of mind and they offer other services not included with a credit freeze. Most identity protection companies also monitor black market internet sites and databases to stop potential leaks or the buying and selling of your information. They also order your free credit report and remove you from pre-approved credit cards and junk mail lists. Additionally, they provide you with identity theft insurance which is extremely important since, irregardless of your identity protection choice, there is no such thing as full proof identity protection.

Whatever you decide, remember to take action. Often with our busy lives we forget to follow through and identity theft can be such a horrific experience that you don’t want to let this task slip through the cracks. Educate yourself on the four options available – credit monitoring, credit freeze, fraud alert company or do it yourself fraud alerts and credit reports – and then take action. Though some are better than others the only bad choice is to sit idly by waiting to become the next victim. Protect yourself and your family from identity theft today.

Congress is once again taking positive steps to combat the growing epidemic of identity theft. According to K.C. Jones at InformationWeek, Congress passed a very important bill on Monday that will help fight identity theft. They did this by adding an amendment containing most of an anti-spyware bill.

Bill H.R. 5938 an amendment to Senate bill S. 2168 has been passed and is expected to be signed by President George Bush. It is an important piece of legislation because it gives the federal government the ability to prosecute identity theft crimes even if the perpetrator and victim are in the same jurisdiction. Previously federal prosecution was only possible if the identity thief used interstate or foreign communications to infect a computer with spyware or keystroke loggers. Another important aspect is that it allows identity theft victims to obtain restitution for the time and money they spent restoring their credit.

The legislation will also make it a criminal activity to delete, threaten to obtain, or release data from a computer or even to threaten to crash a computer. Furthermore, it addresses cyber extortion by making it a crime to demand money for the protection of a computer. A conspiracy charge was also added and rights were given to federal prosecutors to seize property used in the commencement of the crime.

In addition to identity theft, the amendment also includes stiffer penalties for the use of malicious spyware and keystroke loggers that damages a computer. It is now a misdemeanor (up to one year in prison) to send spyware that causes any loss. Previously that loss had to be greater than $5000. The legislation would also make it a felony (up to 10 years in prison) to use spyware or keystroke loggers that causes damage to ten or more computers.

The Interactive Advertising Bureau praised Congress for passing the legislation with appropriate language that balances the protection of legitimate industry practices and the rights of consumers to be properly protected from identity theft and fraud.

Mike Zaneis, VP of Public Policy at the Interactive Advertising Bureau stated.

“We appreciate the attention that Congress is giving to the important issues of combating identity theft and the proliferation of malicious spyware, and we support the approach taken in this legislation. The threat of having consumers’ identities stolen and the proliferation of spyware can erode consumer confidence in the Internet and undermines legitimate advertising and e-mail practices. IAB endorses the approach taken by Congress, which appropriately targets illegitimate conduct and provides law enforcement agencies with additional tools and resources to bring these criminals to justice.”

Keyloggers, which log every keyboard stroke, and spyware have become tools of the trade for many identity thieves. This is important legislation in that it not only gives federal agencies more power to deal with these crimes but also because it increased prison sentences, both of which may act as a deterrent to some would be thieves. Victim restitution is also another important aspect. Further legislation in regards to data breaches and the responsibilities of those holding our information is still needed, but this Bill certainly helps address the problem of cybercrime. It is great to know that Congress is still thinking about identity theft prevention and how they can help the 9 million victims who fall prey to this crime every year.

That being said it is still very important for Americans to protect their computer from these online security threats. A review of internet security software packages may be on the horizon at Identity Theft Labs since online security is an important aspect of a complete identity protection plan. Currently Identity Guard is the only company offering an online security suite as part of their package. If you still don’t have computer protection and are interested in combining this with an effective identity protection service then Identity Guard is the right choice for you.

You hear about it all the time—identity theft and the victims that deal with it.

Identity theft is growing every day, and is becoming quite the epidemic with the growth and popularity of online shopping, social networking sites, and the numerous uses of a person’s social security number. Add in poor security measures at institutions, a growing number of hackers and the new work from home lifestyle that has resulted in far too many stolen laptops and you get a recipe for disaster.

How do you protect yourself from identity theft?

Well, you could spend tons of time and money pulling your credit report each month and scoping out any unusual activity. By pulling your credit report and reviewing it, activity has already occurred by this time. Credit monitoring comes with a monthly fee similar to other identity protection services but it still only lets you know after the fact about any unusual activity. Wouldn’t you be better off being proactive about protecting your identity, rather than spending numerous hours on the phone with creditors and faxing paperwork back and forth explaining that you’ve been a victim of identity theft and didn’t rack up all those charges?

Most would rather take the steps to initially avoid identity theft. What you have to do then is contact each of the credit bureaus to place fraud alerts on your account. Of course, fraud alerts only go for 90 days before they expire, and you have to start the whole process over again being careful to not miss your renewal date. But with so many busy families, who has the time?

Many Americans don’t! Life is hectic these days, especially if you have kids. A lot of us would rather have someone else do the work of watching their credit instead of depending on themselves to do so. This way there is no lapse in your credit protection due to a missed or late fraud alert renewal. And for a measly average of $9 a month, it is very affordable especially when you consider the costs and headaches involved in fixing the problem and the additional benefits you get by employing a service.

With professionals hired you also get additional services many of which you can not do on your own. You can remove yourself from junk mail and pre-approved credit offers, highly recommended by the way, but most companies also provide scanning of black market internet sites that sell your information and database monitoring. If your private information is found, anywhere it shouldn’t be, you are immediately notified. Most importantly, these services give you a service guarantee and/or identity theft insurance which is a must have given the scope of identity theft.

There are many companies out there offering identity theft protection. LifeLock, TrustedID, and Debix are just a few of the services out there to help you protect your credit and good name. Each of these companies are experienced and are the best of the best in our opinion, Of course, each one has their unique services, but for the most part, they will monitor your current credit and personal information and make sure you are contacted as new accounts are being open to make sure it is you requesting the loan, and if not, allowing you to take action immediately to stop the transaction rather than fixing the damage later.

If you’re worried about identity theft, these services will help keep your mind at ease knowing that someone is watching over your information with an eagle eye, so you have time for the more important things in life. Take the time now to review the services offered by these companies. It is far easier to set up an identity protection plan then go through the horror of fixing your credit.