102-Year-Old Woman’s Identity Stolen

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How low can you go? In Virginia, a man has been accused of identity theft, forgery, and obtaining money by false pretenses.

The 25-year-old accused claims, “I know I’m not guilty of any of theses charges…The day that it aired people were calling me and texting me and asking me what have I done and I was like what are you talking about? I thought I was being pranked.”

He is, however, on probation for similar charges, but he swears that he’s no longer a criminal, though he was six years ago. Well, all right then, I guess he must be innocent!

According to detectives, in one scam he used counterfeit checks to make purchases at various stores, and then returned his purchases to different stores in exchange for cash.

One of his identity theft victims is a 102-year-old woman who recently graduated from the city’s citizen police academy, the oldest person ever to do so. “I don’t know how they got my identity,” she said.

How cool is she? But how difficult must it be to recover from identity theft at 102 years old?

Observing a few basic security precautions to protect your identity may help you avoid such a chore.

Consumers should also consider investing in an identity theft protection product that offer daily credit monitoring, proactive identity surveillance, lost wallet protection, and alerts when suspicious activity is detected on your accounts. McAfee Identity Protection includes all these features, as well as live access to fraud resolution agents in the event that your identity is ever compromised.

For additional tips, visit CounterIdentityTheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss identity theft victims on The Morning Show with Mike and Juliet. (Disclosures)

Epsilon Breach Will Impact Consumers for Years

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This week consumers are receiving messages from trusted companies such as 1-800-Flowers, Chase, Hilton HHonors and others, letting them know that their e-mail addresses have been exposed due to the recent Epsilon data breach.  This provides a perfect opportunity for cybercriminals, who may try to take advantage of the breach to send out phishing e-mails designed to steal user names and passwords.  Since consumers are receiving legitimate e-mails, they may be less suspicious of the phishing  or spear phishing ones.

Generally when a credit card is compromised a new number and card is issued making the breach a forgotten inconvenience. However when a Social Security number is breached, the victim can feel the effects for decades. Email addresses fall in the middle because consumers have the ability to change them, but often weigh the pros and cons and keep them for convenience sake.  This is what makes getting phished a higher probability.

McAfee Labs believe scammers will probably wait until they figure out how best to turn their scams into money, and may wait until the news cycle dies down.  That’s why it is important for consumers to stay vigilant for a period of time…really for the entire time you posses a hacked email address.

Here are some tips for consumers to stay safe:

– Consider ditching your compromised address and starting new.

– Be aware that companies will never ask you for credit card information or other personal information in email.  If you are being asked to provide that information, it’s a scam.
– If you are suspicious of an email, go directly to the Web site of the company that purportedly sent it and don’t follow links in the email as those may be fraudulent. Call the company’s number listed on their Web site, not the number in the email as that may be a fake
– Consider unsubscribing from email communications and re-subscribing using a new email address for commercial communications. That way you know that messages that land in that new inbox are more likely to be genuine as the new address wasn’t part of the breach

– Use the latest security software, including Web security features to protect you from going to malicious Web sites such as phishing sites

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing the Epsilon breach for McAfee on Fox News. (Disclosures)

Identity Theft Tops Consumer Complaints for Eleventh Year

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The Federal Trade Commission recently released the list of the most common consumer complaints in 2010. Identity theft topped the list for the eleventh year in a row. The FTC received 1,339,265 in 2010, and 250,854, or 19%, involved identity theft. In second place, there were 144,159 debt collection complaints.

For the first time, “imposter scams,” in which imposters pose as friends, family, respected companies, or government agencies in order to persuade consumers to send money, made the top ten. The FTC has issued a new consumer alert to help consumers avoid imposter scams.

FTC spokeswoman Claudia Bourne Farrell commented, “Most people don’t know how their identity was stolen. If you lose your wallet on Monday and Tuesday someone starts using your cards, you have a pretty good educated guess. Otherwise you don’t. And how would you know if someone stole your identity on the Internet?”

More than half of complaints to the FTC involved some other type of fraud. 45% of those scams were initiated via email, including phishing emails. 11% of the scams originated from websites, and 19% were initiated over the phone.

Protect yourself from identity theft and other varieties of fraud by locking your mailbox to prevent stolen mail, storing sensitive paperwork in a locked file cabinet, and shredding any documents that include a name or account number before discarding them.

Protect your PC by installing antivirus and spyware removal software, and keeping your PC’s critical security patches updated.

To ensure peace of mind, subscribe to an identity theft protection service, such as McAfee Identity Protection, which offers proactive identity surveillance and lost wallet protection. If your credit or debit cards are ever lost, stolen or misused without your authorization, you can call McAfee Identity Protection and they’ll help you cancel them and order new ones. If their product fails, you’ll be reimbursed for any stolen funds not covered by your bank or credit card company. (See McAfee’s guarantee for details.)

For additional tips, visit CounterIdentityTheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him explain how to protect yourself from identity theft on CounterIdentityTheft.com. (Disclosures)

Most Willing to Pay to Reduce Identity Theft Risk

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When you compare the cost of various services, you begin to see how much your time is worth. For example, it would take most homeowners a significant chunk of nights and weekends to paint a house themselves, but a professional crew can get it done in a week, for a reasonable price.

Recovering from identity theft can take as little as an hour for some, or up to several hundred hours for others. For some, it takes a lifetime. The average identity theft victim loses anywhere from $2800.00 to $5100.00, which, coincidentally, happens to be roughly the cost of painting a house!

Nicole Piquero, one of the most distinguished female criminologists in the nation, according to The Journal of Criminal Justice Education, explains, “Identity theft, also known as ‘identity fraud,’ has affected between 5 and 25 percent of U.S. households. Because of our increasing reliance on technology, and given the resourcefulness of hard-to-catch identity thieves, it seems likely that most if not all of us will at some point be victims of this crime or know others that have been.”

Piquero and her spouse, Alex Piquero, who has made significant scholarly contributions to the field, conducted a study that “reveals that most individuals will agree to a small tax increase to support government-sponsored identity theft prevention efforts.”

Unfortunately, the government isn’t doing anything to protect you. Fortunately, McAfee Identity Protection includes proactive identity surveillance to monitor subscribers’ credit and personal information, as well as access to live fraud resolution agents.

For additional tips, visit CounterIdentityTheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss identity theft on YouTube. (Disclosures)

Spyware A Major Identity Theft Threat

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Spyware is sold legally in the United States. This software records chats, emails, browsing history, usernames, passwords, and basically everything a person does on that PC. Some spyware programs can record everything in a video file, which can then be accessed remotely.

This is all perfectly legal as long as the PC’s owner installs the software. It is illegal to install spyware on a computer that is not your own.

Spyware can be great if, for example, you want to monitor your twelve-year-old daughter who obsessively chats online, or your employees whose lack of productivity has you wondering if they’re watching YouTube all day.

Spyware also comes in the form of a virus, which essentially does the same thing. When you click a malicious link or install a program that is infected with malicious software, several different types of spyware can be installed as well.

Spyware can also take the form of a keylogger or keycatcher, a USB device similar to a USB flash drive, which can connect to a PC and piggyback the keyboard connection. Keycatchers have a made a splash in schools, where students plug them into the back of teachers’ PCs, trying to get test information ahead of time.

In England, two keyloggers were found plugged into public library computers. This would have allowed whoever planted the USB devices to access a record of activity on the compromised computers. “It’s unclear who placed the snooping devices on the machines but the likely purpose was to capture banking login credentials on the devices prior to their retrieval and use in banking fraud.”

Keep in mind that anyone with special access to a computer, including friends, family, and employees, poses the main threat. A cleaning person or security guard could always be paid to install spyware in order to record sensitive data.

Check your USB ports to make sure there are no mysterious devices attached to your PC. Prevent unauthorized password installation by password protecting the administrator account on your PC.

Only download files from trusted websites, and avoid torrents and software cracks, which are often seeded with spyware.

Never click “Agree,” “OK,” “No,” or “Yes” in a popup. Instead, hit the red X or shut down your browser by hitting Ctrl-Alt-Delete.

Keep your operating system’s security patches updated, and be sure to install the latest, most secure version of your browser. And Run McAfee Total Protection, including spyware removal.

McAfee Identity Protection includes proactive identity surveillance to monitor subscribers’ credit and personal information and access to live fraud resolution agents who can help subscribers work through the process of resolving identity theft issues. For additional tips, please visit http://www.counteridentitytheft.com

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing spyware on Fox Boston (Disclosures)

3 Year Old’s Identity Stolen To Buy Porn

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A thief hacked into a woman’s checking account and used her daughter’s name on an electronic check to pay for an online porn subscription. The FBI believes this is a relatively new scam, with reports coming in from across the country.

The little girl isn’t a signer on the account, but the bank cashed the check for $29.95 made out to a porn company in her name.

“Somebody took money from me, somebody took my account number, somebody used my daughter’s name for porn,” the mother says.

According to the Colorado Banker’s Association, “any company you send a check to has enough information to steal from you… Online bill pay isn’t any safer because criminals have been known to hack into computers.”

That’s a serious statement from a bank representative. I can’t help but wonder if it was translated correctly? She went on to note that many checks were being cashed for small amounts, which doesn’t send a red flag to banks.

Consumers often overlook these smaller transactions, or “microcharges,” which are fraudulent charges ranging from 20 cents to $10. The victims of this particular scam would see the fictional merchant’s name and toll-free number on their debit or credit card statements. If they called to dispute a charge, the phone numbers would be disconnected or go straight to voicemail. Many frustrated consumers don’t even bother to dispute the charges.

This scam can often be fixed by paying attention to your statements and refuting charges within a specified time frame. You have up to 60 days, at most, depending on the nature of the card. Check with your bank.

McAfee Identity Protection includes proactive identity surveillance to monitor subscribers’ credit and personal information and access to live fraud resolution agents who can help subscribers work through the process of resolving identity theft issues. For additional tips, please visit http://www.counteridentitytheft.com

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing child identity theft on NBC Boston (Disclosures)

Identity Theft Ring Operates From Federal Prison

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For nearly a year, a prisoner at Fort Dix Federal Correctional Institution operated an identity theft ring from his jail cell. “Federal prosecutors say the man was able to get personal information communicated to him while in the prison, including names, addresses, and Social Security numbers of credit card holders at various department stores. He would then contact the stores and add additional users to the accounts or open new accounts in the person’s name.”

His eight accomplices, who used the fraudulent credit accounts to spend more than $250,000, recently pled guilty to charges related to identity thefts.

This type of organized crime ring is made up of many players, including:

Kingpin: This ringleader intimidates those on the outside into acting on his behalf while he’s behind bars. His associates are primarily motivated by money, but the kingpin often relies on violence to keep them in line.

Insiders: Department store employees had access to account data. These insiders violated the trust of their employer and fed the information to the ringleader in prison.

Mules: Street level criminals who don’t mind being recorded on surveillance cameras will often use the stolen accounts to make big-ticket purchases in stores.

Store clerks: Mules often need a cohort at the register who allows a purchase to be made without checking the mule’s ID.

Fences: The fraudulently purchased merchandise end up being handled by a fence, who sells the items on the black market or trades them for drugs. Fences often interact with drug dealers, who tend to have the money for purchases.

A similar group targeted Apple stores, obtaining stolen account numbers, which they used to forge credit cards and buy laptops, iPhones, and other items. Again, a ringleader orchestrated the scheme from behind bars.

This is what we are up against: organized criminals with no consideration for the law, working in trusted positions with access to our information. You can shred all day and limit the amount of information you give out. But your identity is at risk, no matter what.

It is important to observe basic security precautions to protect your identity. However, the safety of your information with corporations and other entities that you transact business with is very often beyond your control. Consumers should consider an identity theft protection product that offer daily credit monitoring, proactive identity surveillance, lost wallet protection, and alerts when suspicious activity is detected on your accounts. McAfee Identity Protection includes all these features in addition to live help from fraud resolution agents if your identity is ever compromised. For more tips on protecting yourself, please visit http://www.counteridentitytheft.com

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing identity theft on YouTube. (Disclosures)

Identity Theft Victim Held Hostage By Bank

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The Huffington Post reports, “The Identity Theft Resource Center says Ty Powell is a victim of identity theft. Freddie Mac says he hasn’t paid his mortgage in two years. The local paper says he’s dead. Powell says, ‘I don’t know what to say.’”

Powell bought a house in Arizona from a builder, paying $217,000 in cash that he made playing professional basketball in Brazil. While he was in Brazil, someone sucked the equity out of the home to the tune of a $376,703 mortgage, and of course, defaulted. It is believed that the builder, who had the personal information on Powell, took out the loan and even paid some of the debt in order to keep the scheme until after Powell had taken possession of the house.

Then one day, Powell gets an eviction notice saying he has to move out of his home because of the unpaid mortgage. Unfortunately, it’s been demonstrated time and again that when it comes to being an identity theft victim, you are guilty until proven innocent.

Freddie Mac’s spokesperson replies, “We believe the foreclosure was legitimate because the loan secured by the property was in default. Despite a mortgage workout in 2008, no mortgage payment had been received since January 2009. We have also referred the matter to our fraud investigations unit.”

The local paper incorrectly reported that Powell had died of a heart attack. This was more than likely planted by the identity thief so that a death certificate would be issued, making it difficult for the bank to proceed.

Meanwhile, the scammers opened new credit card accounts and got a fraudulent driver’s license in Powell’s name.

Most, if not all, of this was preventable.

To ensure peace of mind —subscribe to an identity theft protection service, such as McAfee Identity Protection, which offers proactive identity surveillance and lost wallet protection. If your credit or debit cards are ever lost, stolen or misused without your authorization, you can call McAfee Identity Protection and they’ll help you cancel them and order new ones. If their product fails, you’ll be reimbursed for any stolen funds not covered by your bank or credit card company. Please see Guarantee for details. For additional tips, please visit http://www.counteridentitytheft.com

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing how to protect yourself from identity theft on CounterIdentityTheft.com. (Disclosures)

Protecting Mail from Identity Theft

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While criminal hackers are cracking databases and stealing millions of electronic records every year, street level identity thieves are a more insidious element of the identity theft epidemic. Thieves of this nature live in your neighborhood. In some parts of the country, local identity thieves tend to be meth heads.

Local identity thieves understand all too well that the money is in your mailbox. They simply open your mailbox and steal any mail that could provide an opportunity for identity theft.

Think about what comes in the mail. Bank, credit card, and financial statements. Utility, mobile phone, and membership statements. Pension, Social Security, and benefit statements. Employment, tax, and income statements. Checks, disbursements, and credit card offers.

These sensitive documents contain enough information for an identity thief to take over your existing accounts or open new accounts in your name. While some data is left off paper statements for privacy’s sake, they generally contain enough sensitive details for a thief to impersonate you over the phone in order to obtain even more details, enough to fill in the puzzle pieces of your identity.

Protect yourself by getting rid of paper statements. Electronic statements in your email inbox are eco-friendly and more manageable and secure than paper statements.

Get a mailbox with a lock. You can get a chain for under $60 at most hardware stores, which allow the carrier to put mail in the box, but requires a key to get mail out.

Get a P.O. box. Any sensitive mail that I can’t receive digitally goes to my P.O. box. A P.O. box is locked, and the only one with access is the postal carrier.

If you go more than a few days without receiving new mail, it may be getting stolen, so call the post office.

Pay attention to the delivery dates of all bills. You should know when to expect recurring mailings, so you’ll notice if they don’t arrive on schedule.

Have yourself removed from the Direct Marketing Association’s lists. Eliminate all unnecessary solicitation to minimize mail that creates a risk.

Opt out of preapproved credit card offers. Go to OptOutPrescreen.com or call 1-888-5-OPT-OUT (1-888-567-8688) and get removed now.

McAfee Identity Protection includes proactive identity surveillance to monitor subscribers’ credit and personal information and access to live fraud resolution agents who can help subscribers work through the process of resolving identity theft issues. For additional tips, please visit http://www.counteridentitytheft.com

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing how a person becomes an identity theft victim on CounterIdentityTheft.com (Disclosures)

How To Prevent Investment Fraud

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The Securities and Exchange Commission defines a Ponzi scheme as “an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.”

The best way to avoid being taken by a Ponzi scheme is to make an effort to understand how the system is supposed to work.

The North American Securities Administrators Association recommends the following precautions:

– Contact your state or provincial securities regulator to see if the investment vehicle and the person selling it are registered.

– Contact your local Better Business Bureau to see if any complaints have been filed against the venture’s promoters or principals.

– Deal only with financial advisers, broker-dealers or financial institutions having a proven track record.

– Ask for written information on the investment product and the business. Such information, including financial data on the company and the risks involved in the investment, is contained in a prospectus.

– Don’t take everything you hear or read at face value. Ask questions if you don’t understand, and do some sleuthing for yourself.

– Steer clear of investments touted with no downside or risk.

But these tips wouldn’t be enough to prevent someone like Bernie Madoff from making a convincing play for your money.

To prevent yourself from falling for a more sophisticated scam, you need to understand the concept of “custody,” which refers to where the funds are housed. Make sure your funds are under the custody of a reputable investment firm such as a Charles Schwab, Fidelity, or Merrill Lynch. You should be able to see your accounts when logging into their website. Financial advisers may be employed by a custodial firm or may be independent brokers. Your funds should be with a large, well-known firm, not in the custody of a broker.

Bernie Madoff was a financial adviser who got away with his fraud because he controlled his clients’ assets and falsified the documentation. If you invest with a financial advisor that generates his own statements, you are at risk.

A financial adviser or broker should only have access to your funds in order to manage them, not to control them. They shouldn’t be able to withdraw funds without your consent. And they should never have the ability to move funds without your awareness.

Identity theft can happen to anyone. McAfee Identity Protection, offers proactive identity surveillance, lost wallet protection, and alerts when suspicious activity is detected on your accounts. McAfee Identity Protection puts victims first and provides live access to fraud resolution agents who work with the victim to help restore their identity even from past theft events. For additional tips, please visit http://www.counteridentitytheft.com.

Robert Siciliano is a McAfee Consultant and Identity Theft Expert. See him discussing Ponzi Scams. on CBS Boston (Disclosures)