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Government risks Consumers’ Identities

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Guess who may be compromising the security of your Social Security Number.

1PThe Social Security Administration!

Yep, that’s right. Did you know that 66 percent of the mail the SSA sends out contains someone’s Social Security number? This is what the inspector general of the SSA, Kimberly Byrd, says, and I believe it.

How many pieces of mail is this? Over 230,000,000. This situation is problematic.

  • The SSA claims it will cost over $19 million to reduce these mailings.
  • It also won’t happen anytime soon.
  • The SSA can’t even give a time estimation for when these mailings will be cut back, and Byrd says that security should trump convenience.
  • It is not known what percentage of the mail-outs reach their intended addresses, and this includes the not-so-uncommon problem of mail carriers delivering to the wrong address. Imagine that the wrong recipient is also an identity thief, and sees that Social Security number upon opening someone else’s mail…
  • Another reason many mail-outs may end up in the wrong hands is that the addresses are no longer accurate for the recipient.
  • And then of course there is mail theft. Or someone can easily change your mailing address. It’s maddening actually.
  • Though some mailings do require the SSN, others don’t, and many other entities, such as private businesses, have found a way around this sticky problem, though this doesn’t mean they’ve eliminated 100 percent of it.
  • Another plan to help reduce the number of SSNs flying around out there is the use of the Beneficiary Notice Control Number—used on a case-by-case basis, says the Social Security Administration.

Nevertheless, it’s maddening that the Administration has failed to yield a deadline range for these changes. Let’s face it, the SSN is responsible for the judicious handling of our Social Security numbers, and 230 million mailings—without verification that the addresses match the recipients—is hardly judicious.

Think of how often, over the past five years, you’ve accidentally received someone else’s mail. This is common and a gateway for crooks to steal somebody’s identity.

The Fix

  • The SSA should make deletion of SSNs from their correspondence a top priority—and once they do that, things will start falling more together.
  • Revisit the estimated cost it would take to implement the reduction of mail containing SSNs.
  • YOU need to getting a locking mailbox.
  • YOU need to get a credit freeze and invest in identity theft prevention. These two solutions make your SSN relatively less attractive to a thief.

Robert Siciliano is an identity theft expert to TheBestCompanys.com discussing  identity theft prevention.

What are Consumer Reports?

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You’ve heard the term “consumer report.” Many times, I’m sure. But do you really know what one is? If you’re nodding your head, would you be able to explain it to a Martian? If not, then you probably do not have a solid understanding of what one is.

12DBut lenders, landlords, creditors, employers and insurers certainly know what a consumer report is, because every time they’re about to deal with a new client, they put themselves at risk.

  • Is he in good health?
  • Will she stop paying her mortgage?
  • Will he total his car?
  • Will she be productive on the job?
  • And more questions abound.

An article on privacyrights.org explains that all sorts of businesses need to assess the risk of every new client. However, it would be quite unwieldy for businesses to sit every potential client down and run through a list of 100 questions, then wonder if the applicant is being truthful.

Enter the consumer report.

  • Credit report: Lenders can see the applicant’s financial status and bill payment habits.
  • Fair Credit Reporting Act: Encompasses entire financial status.
  • Miscellaneous companies are targeting consumer reports specifically for landlords, insurers and employers.

The article explains that the businesses that put together these targeted reports are called consumer reporting agencies. Consumer reports don’t just deal with finances and credit. Other types of reports come from nationwide specialty consumer reporting agencies. These other kinds of reports may detail one’s medical history, employment history, history of insurance claims and check writing history.

You are entitled to a free report every 12 months from a nationwide specialty consumer reporting agency.

  • Make your request to each specialty reporting agency; they act independently of each other.
  • Every agency has a toll-free number.
  • Some agencies allow faxed, mail-in or online requests. For online requests, the agency’s site must provide a FAQ or help page.
  • You are entitled to an update on your request’s status.
  • There is no deadline for the agency to honor your request.
  • The agencies gather information on people from a number of sources such as bankruptcy filings, driving records, credit history, public records of court cases and insurance companies.

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing identity theft prevention

Bank Account depleted, Company sues

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Is it Bank of America’s fault that a hospital was hacked and lost over a million dollars? Chelan County Hospital No. 1 certainly thinks so, reports an article on krebsonsecurity.com. In 2013, the payroll accounts of the Washington hospital were broken into via cyberspace.

4HBank of America got back about $400,000, but the hospital is reeling because the hospital says the bank had been alerted by someone with the Chelan County Treasurer’s staff of something fishy. The bank processed a transfer request of over $600,000—even though the bank was told that this transfer had not been authorized.

In short, some say Bank of America failed to follow contractual policies. And what does the bank have to say for this? They deny the lawsuit allegations. They deny brushing off the hospital’s alert that the wire transfer was not authorized.

This scenario has been replicated many times over the past five years, says the krebsonsecurity.com article. Hackers use Trojans such as ZeuS to infiltrate banks. And not surprisingly, phishing e-mails are the weapon of choice.

Though bank consumers are protected from being wiped out by hackers as long as they report the problem within 60 days, businesses like hospitals don’t have this kind of protection. The business victim will need to sue the bank to recoup all the stolen money. Legal fees will not be covered by the defendant, and they are enormous, which is why it’s not worth it to sue unless the amount stolen is considerable.

Businesses and consumers should:

  • Require that family and employees from the ground up complete security training that includes how to recognize phishing e-mails.
  • Stage phishing attacks to see how well everyone learned their security training
  • Retrain those who fell for the staged attacks
  • Make it a rule that more than one person is required to sign off on large transfers
  • Know in advance that the bank will not reimburse for most of the stolen money in a hacking incident, and that legal fees for suing can exceed the amount of money stolen.

Robert Siciliano is an identity theft expert to TheBestCompanys.com discussing  identity theft prevention. Disclosures.

Top 5 Scams to Watch Out For

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#1 Nigerian Scams: According to a Dutch study, victims of advanced-fee scams, which are also known as 419 scams or Nigerian scams, lost more than $9 billion in 2009, almost 50% more than the previous year. (This PDF contains the statistics from the study.)

While these types of scams are generally understood to be Nigerian in nature and origin, and are in fact named after the 419 Nigerian code that made them illegal, advanced-fee scams were launched from 69 other countries in 2009. Scammers are broadening their targets to include emerging Internet markets, rather than simply targeting English-speaking nations.

#2 Romance Scams: If you ever hear talk like this, run far and fast: “In me sweetheart you are going to find the most passionate, loving and romantic man you have ever met. There are very few promises in life but this is one of them! ROMANCE is the key to my happiness and to my heart and soul!”

#3 Classified Ad Scams: This story caught my eye: “An online scam targeting pet-lovers is circulating the web, and it could cost you more than a new pet. An ad posted to a local online classified website by a man who claimed he was living in Florida. The seller said he had recently moved to Miami, and couldn’t keep his dog due to his new living conditions. He was willing to give the Labrador Retriever puppy named Dely away for the cost of shipping, which was $220.“

#4 Phishing: Phishing continues to become more sophisticated, more effective, and more prevalent. In one example, criminal hackers waited until Pennsylvania school administrators were on vacation, then used simple money transfers to liquidate over $440,000 between December 29 and January 2, 2010.

#5 Spear Phishing: Spear phishing occurs when the scammers concentrate on a localized target, usually an individual with control over a company’s checkbook. This insidious type of phishing occurs when a recipient clicks a link, either in the body of an email or on the spoofed website linked in the email, and a download begins. That download is almost always a virus with a remote control component, which gives the phisher full access to the user’s data, including user names and passwords, credit card and bank account details, and Social Security numbers.

Never, ever click on links in the body of an email. There is always a workaround.

Like mom said, if it sounds too good to be true, it probably is. And even if you will never fall for these scams, someone in your life might be a tad more naïve. So educate them.

McAfee Identity Protection includes proactive identity surveillance to monitor subscribers’ credit and personal information, as well as 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 discuss job scams on Fox News.(Disclosures)

Attorney General Leads Senior Anti-Crime University

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Robert Siciliano Identity Theft Expert

“Give me your tired, your poor, your huddled masses” was written in a poem as part of a declaration that we, in the United States, protect those who need protecting. It’s an unfortunate statement about society that the weakest are often the most vulnerable, as opposed to the most protected. Even today, the elderly are often targeted by ruthless and heartless criminals who have no remorse.


“Arizona Attorney General Terry Goddard leads a team of experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors. The Senior Anti-Crime Universities are designed to teach attendees to detect fraud and other consumer abuse commonly perpetrated against seniors. Each university offers a half day of classes in consumer fraud and scams, identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving. Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html.”


20 years ago I was walking on the side of the highway because my vehicle broke down. A man in a car pulled over near me and asked if I needed a ride. I quickly accepted and got in. I don’t think I’d recommend doing that today, but that’s not the point of the story. After a minute in the car, I could see the man was handicapped, and only had one leg. I was moved by this man’s generosity and going out of his way to help me. I asked “why did you pull over and pick me up?” he then responded, “sometimes people just need help.” A simple act of kindness like this had a profound effect on my life. I don’t think any other words have ever impacted me so much.


Protecting the elderly from various abuses and crimes begins with getting involved. Everyone knows someone who needs help in some way. Reach out. Get involved in your local senior community center. Look in your own neighborhoods and determine if there is someone that could use an extra pair of eyes to watch out for and over them. Get familiar with all the scams, crimes, and potential issues they may face. If there are people who need a home security system, call on your local dealer and do a charitable event where the community donates to help out those in need. Work with local law enforcement and become a local expert in crime prevention. Put on your own events and give your time to those who need help.


Robert Siciliano personal security expert to Home Security Source discussing becoming a home security on NBC Boston. Disclosures