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Understanding Familiar Fraud

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Have you heard the saying “familiar fraud?” If not, you should. This is a crime that is as old as they come; essentially, it’s a crime where someone is taken advantage of by someone they know. For instance, a woman named Axton Betz-Hamilton had her entire savings account drained and the person responsible was unknown…that is until Axton’s mother passed away, and it was discovered that it was her, Axton’s own mother, who had drained the account.

credit fraudIt’s believed that familiar fraud is not often reported, likely because victims of these crimes think that police won’t take them seriously, or that it will negatively affect their relationship with their family. There is also the fact that, in many cases, these crimes go undetected because people just can’t believe a member of their family would do something like this.

As you might imagine, the fallout of familiar fraud can run deep. Think, for a minute, how it would feel to find out that your best friend of 30 years has stolen your identity. Something similar happened to a man named Thomas Nitzsche. He hired his cousin to remodel his bathroom, and he gave his cousin his credit card. What did Thomas’ cousin do? He took the card, bought a bunch of merchandise, and then he sold the merch on the streets.

Even when this happens, it’s common for people who learn that they are a victim of familiar fraud to want to naturally protect their loved ones. This might be due to protecting relationships or to avoid backlash from others. There is also the fact that your family might not believe you when you tell them your sister or your father has been stealing from you.

What Should You Do?

 If you think that you are the victim of familiar fraud, you should do the following:

  • Do your best to keep your emotions out of it.
  • Keep an eye on your credit report. You should also place a fraud alert or better, get a credit freeze on your credit file.
  • Think about resolving things without police intervention if it is pretty minor.
  • If not, you might want to contact the cops, but think about the pros and cons of this.
  • If you do report this, expect some turmoil within the family, but also realize that you are protecting your credit.

If you file a police report, you will also be able to get an extended fraud statement, which can last for seven years. This may or may not mean you won’t be responsible for any charges. Lenders sometimes look at familiar fraud as an approved purchase and will not negotiate forgiveness.

Other Safety Measures 

  • Each month review your credit card statements.
  • If you see changes, even small ones, you should report it immediately
  • Don’t give out your debit or credit card to your friends or relatives. If you want to give them money, give them cash.
  • Set up push notifications or push alerts so you are aware of charges in real time.

Written by Robert Siciliano, CEO of Credit Parent, Head of Training & Security Awareness Expert at Protect Now, #1 Best Selling Amazon author, Media Personality & Architect of CSI Protection Certification.

Protect Your Mail From Thieves

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Do you have Informed Delivery from the US Postal Service? If not, you should. Every day, it sends you an email that shows what is coming in your mail.

Robert Siciliano, CSP, SAFR.MEHowever, there is also the possibility that someone could pose as you and get your Informed Delivery. This means that they could get your mail before you do.

In fact, this is already happening. The bad guys are signing up with the addresses of other people, and then collecting their mail. Why? Because they want to get access to things like credit card applications or new credit cards.

What if your mail contains a check? The thief could easily cash it before you even realized it was gone.

There are numerous reports that show groups of thieves in actually used the USPS to apply for credit cards via an application that we all get in our mail. They then just had to wait. They knew the exact day the credit cards would arrive because they had access to the owners’ mail via Informed Delivery. By doing this, they were able to spend around $400,000, and the owners didn’t realize it until it was too late.

A locking mailbox could certainly help, and you can also opt out of informed delivery by emailing eSafe@usps.gov. This prevents anyone from signing up for it in your name.

You can also consider a credit freeze. This does not guarantee that a thief won’t be able to steal your identity and open a credit card, but it makes it much more difficult.

Other Things You Can Do

Here are a few other things you can do:

  • Check your credit cards statements each month for any charges that look strange or unfamiliar, and then immediately report them, even if it is a small amount.
  • Contact the three major credit reporting agencies and sign up for alerts to get any changes in your credit report.
  • Get a mailbox that locks. There is too much information out there not to have this.

Written by Robert Siciliano, CEO of Credit Parent, Head of Training & Security Awareness Expert at Protect Now, #1 Best Selling Amazon author, Media Personality & Architect of CSI Protection Certification.

Is Freezing Your Credit Enough?

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You might think that freezing your credit is enough to keep you safe. In fact, freezing your credit was actually a smart thing to do in order to prevent fraud and stop yourself from becoming a victim of ID theft. It is free to freeze your credit whether or not you are a victim of ID theft, and the FTC (Federal Trade Commission) recommends that people do this in order to protect themselves. But what if it doesn’t work?

credit freezeLet’s talk about Chuck. Chuck is a guy who contacted the Consumerist with a story about his mother. She was a victim of ID theft and froze her credit because that’s what the FTC suggested. However, one of the three major credit bureaus, TransUnion, allowed the hack who had stolen his mother’s ID in the first place, actually lift the freeze! How could something like this happen? Well, it’s much easier than you might think.

These credit bureaus give people a PIN when they freeze their credit. So, to life the freeze, the person must provide the PIN again. However, a PIN is pretty easy to forget, so the companies have created other ways to lift the freeze. For instance, with TransUnion, you must answer a series of personal questions such as “Which of the following phone numbers have ever belonged to you?” or “Which of the following streets have you lived on.” The problem is, this information is extremely easy for a scammer to access.

Of course, this isn’t extremely common, but it can happen, and Chuck’s mother is a good example of it.

TransUnion says that there is an extra layer of protection that it offers to people who cannot remember the PIN they were given. The company sends a written confirmation. This means that they would expect to hear from the consumer if they did not need a new PIN or ask for the account to be unfrozen.

On the surface, this sounds pretty safe, but not everyone constantly checks their email, and many people only check a few times a week. On top of that, it could be a few days before a person knows that their account has been compromised. If this happens, the damage has likely been done.

When you look at security, you should see that it is built up of several layers of protection. This means that if one layer fails, another comes in to bring security. The more layers that are there, the more secure your account information is. This is why experts like me recommend a combination of a credit freeze, ID theft protection, and credit report monitoring. Though nothing can offer a 100% fool-proof method, all of this can greatly increase your chances of not becoming a victim.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.

Check Your Free Credit Report Now

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When is the last time you checked your credit report? If it has been more than a year, you can get a free one. The issue is, however, is how to really understand it. Here’s some information about obtaining and reading your credit report.

Obtaining Your Free Credit Report

Based on US law, everyone is entitled to look at their credit report from all three major credit reporting agencies. If you want to look at more than that, you can pay a fee. This law dates back to 2003, and all three major bureaus, TransUnion, Equifax, and Experian, must allow people to access their credit reports from AnnualCreditReport.com. Keep in mind, you won’t see your credit score through the free reports. You’d have to pay to see your scores.

When you go to this site, you can fill out a form that requires a number of items. You have to supply your name and address, your date of birth, and your Social Security number. Once entering that information, you can submit it, and you will be taken to a new page.

The next page allows you to choose which credit reporting company you want a report from. There are checkboxes next to the name of these companies. You can select all three, only two, or a single credit reporting bureau. There are some cases where you might want to access all three reports at once, but there are also instances where you might only want to access one. This is further explained on the website.

Before you can access your credit report, you have to verify your identity. You should get a page of questions on the screen about a variety of things. It might include credit accounts, loan terms, or even what cars have been purchased by you. The only way to access your report is to answer these questions correctly.

Since this website is integrated with the sites of the credit bureaus, once you gain access, you will see how easy it is to switch from one report to the next. Now, you only get one free report each year, but it is possible to check reports again, if necessary. You just have to pay a fee of about $20 to view them.

Understanding Your Credit Report

Credit reports are not easy to understand. The top of your report contains information such as your name, address, employment information, and addresses. Next, you will see public records, such as collection accounts and judgements.

Next, you will see a list of all credit accounts you have in good standing. Revolving accounts are listed next, and then you will see all requests to view your credit report. Finally, you will see any personal statements that you have placed on your credit report. Generally, this is done if you have been a victim of identity theft.

Robert Siciliano personal security and identity theft expert and speaker is the author of Identity Theft Privacy: Security Protection and Fraud Prevention: Your Guide to Protecting Yourself from Identity Theft and Computer Fraud. See him knock’em dead in this Security Awareness Training video.

How to Remove Fraudulent Lines of Credit

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You just learned you have a new credit card account by checking your credit or because a bill collector called you. Problem is that you don’t remember ever applying for it. You must find out what’s behind this new account and how it got there.

  • Call the corresponding phone number listed with the account seen on your credit report.
  • Begin the process for disputing the entire account.
  • Get the name (and employee ID number) of every person you speak to and a transaction or reference number for every phone call.
  • Speak to the fraud specialist for the issuer of this new account.
  • Maybe you did apply for it. If you didn’t, find out if there are any charges on it.
  • If the issue isn’t cleared up with one phone call, see what your options are to put a freeze on the account while things are being checked into.
  • Get your free credit reports from TransUnion, Equifax and Experian to see how this new account appears.
  • If you’re still in a quandary over this, put a fraud alert and security freeze on all three reports.

Taking Matters Further

  • If it’s fraud, file an ID theft complaint with the Federal Trade Commission. You’ll get an identity theft affidavit online; immediately print it because it can be viewed only once through the FTC’s system.
  • Next, bring the ID affidavit form to the police, plus other documents relevant to your case, and file a report. Don’t assume your problem is too trivial.

What if the credit card issuer is not helpful?

  • Send a certified letter requesting they freeze or even close the account.
  • Include with that letter a copy (not the originals) of the FTC affidavit and police report.
  • The letter should request written proof of the authorization for opening this account.
  • Another request: written statement absolving you from any responsibility towards charges on this mysterious account.
  • Did you know that the creditor has 30 days or less to send you a written summary of its investigation?

If you’ve been assured that the account will be removed, don’t just take their word; follow up to make sure this was done.

You should not be responsible for any debts incurred by this fraudulent account. Any negative notes on your credit report, related to this account, should be wiped clean.

What if after all that, the account still remains open and you feel the case was not handled properly? File a complaint with the Consumer Financial Protection Bureau. Hopefully you won’t have to hire an attorney, though that’s also a next step.

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

How to build up or rebuild your Credit

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After taking all the necessary steps to Fixing a Credit Report after being hacked, it is then tome to rebuild your credit. Bad credit is bad credit no matter how it happens. No matter how responsible you are with your money, you won’t get a loan if there’s no evidence of this. The evidence comes from having credit. You need to show lenders you can be trusted.12D

  • Every time you apply for a credit card, this puts a dent in your credit score. In other words, it can negatively affect your scores especially if there are lots of credit checks in a short period of time. So apply with a lot of discretion; do you really need that extra charge card? Or is it worth it to continually cancel accounts and open new accounts while playing the interest/points game?
  • Get a major credit card. A charge card is an opportunity to show that you will pay back, on time, money that you “borrowed.” A debit card for this purpose is meaningless because it withdraws money from your account on the spot.
  • An option is a type of credit card that requires a security deposit. Payment of your bills will not come from this security deposit. But it looks good to a potential lender, making you seem more trustworthy.
  • Charge things like gas, food and other items, and/or put a monthly bill on the card for automatic payments such as your cable bill, then pay the card on time every single time—ideally the entire balance. This will create a record of your trustworthiness.
  • Charge no more than 50 percent of the card’s limit in any given month, even if you CAN pay the whole thing off every month. Exceeding 50 percent, some say, can adversely affect your credit score.
  • A rule of thumb is to charge only what you’d be able to pay in cold cash every month. Just because your card has a $5,000 limit doesn’t mean you should rack up $4,500 worth of purchases in one billing cycle.
  • Use the card every month; don’t let it go dormant, as this is not impressive to a lender. If you’re having a tough time remembering to charge things like new shoes, food, drug store items, etc., then set it up for automatic draft of a monthly service.
  • Even ONE late payment will screw things up. Remember, charge only what you’d be able to pay for in cash each month. If you can’t, don’t charge it.
  • If YOU check your credit report any time; it won’t dent your credit score. When lots of creditors check your credit, that can affect your scores.

Robert Siciliano is an identity theft expert to TheBestCompanys.com discussing  identity theft prevention. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247. Disclosures.

Fixing a Credit Report after being hacked

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First off, how NOT to fix a hacked credit report: signing on with a service that promises to correct the problem in a jiffy—a “sounds too good to be true” advertisement. A company that claims they will 100% fix your bad credit by removing negative information from your credit report is a bit scammy. In fact, whatever a credit repair company CAN legally do, you yourself can do.

Tips to Know Ahead of Time3D

  • If a company takes action against you, you’re entitled to a free credit report if you request it within 60 days of being notified.
  • Experian, Equifax and TransUnion are required to provide you, free of charge, your credit report every year.
  • It’s free to question anything on your credit report.
  • Credit reporting agencies are required to investigate your disputes, if valid, within 30 days.

Credit Reporting Agency

  • Send the reporting company a document explaining your issues. Include copies of documents for evidence.
  • Your mailed packet (use certified mail) should include an itemized list of your disputes and associated details.
  • The agency will send your material to the entity that provided the information in question. This entity must investigate the issues, then provide feedback to the credit reporting agency, and that includes corrections in your report if it’s deemed that the suspicious information was, in fact, inaccurate.
  • You will then hear back from the reporting agency: an updated report (free) and the results in writing. The agency will send a copy of the revised report, at your request, to anyone in the previous 24 months who had received the erroneous one.

Creditors

  • Inform them in writing of your dispute.
  • Include copies of all evidencing documents.

Repairing errors and getting rid of accurate but negative information are not the same thing. Time heals wounds; you’ll need to let time (usually seven years) completely get rid of the bad stuff.

Should you decide to use a credit repair company, know that it’s against the law for them to lie about their services or charge you before they’ve done their job. By law they must provide a contract explaining your rights and their services, plus many other details including total cost.

Robert Siciliano is an identity theft expert to TheBestCompanys.com discussing  identity theft prevention. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247. Disclosures.

Everything you need to know about a Credit Freeze

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A credit freeze locks down your credit report so lenders can’t see your scores, making your credit/SSN useless to them because they don’t know their risk level.

1SIf thieves get ahold of your ID, they can’t get credit in your name as long as your credit is frozen. Freezing your credit will seal your credit reports. You’ll need a PIN to access your credit to allow valid services to check your credit when needed. Freezing won’t affect existing credit lines and are free to victims of ID theft. Since 2008, the three big credit bureaus have allowed non-victims to freeze their credit for a small charge.

When is a credit freeze a good idea?

For anyone 18 and over who has a credit report and those under 18 whose identity is stolen and for whom a report is then generated by default.

What should I consider before ordering a credit freeze?

Nothing. Just do it. Credit should be frozen across the board, but banks/retailers/lenders have spent millions lobbying to prevent that, as it would eliminate instant credit, and these institutions say that it would “gum up” the system of lending.

What are the costs?

Free to $15.00 per credit bureau for life, depending on the deal your state attorney general made with the bureau back in 2008. Then free to $5.00 to thaw it each time you apply for new lines of credit.

Inconvenience: It requires planning large financial decisions and being responsible. So horrible. Otherwise it takes five minutes per bureau to temporarily thaw your credit prior to financing a new line of credit at an auto dealer, mobile phone provider, etc.

Can a credit freeze hurt your credit score?

NO.

How does a credit freeze differ from a fraud alert?

Fraud alerts are only 90 days, and they don’t freeze your credit; they only alert a lender that you may have had your identity stolen, but don’t stop the lender from issuing credit in any way.

Fraud alerts at best are “notifications” that something may have gone wrong with your identity, but only suggest the lender takes additional steps to contact you before establishing credit in your name. It’s a false sense of security.

Where to Freeze:

Equifax

https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp

Experian

https://www.experian.com/freeze/center.html

Transunion

http://www.transunion.com/personal-credit/credit-disputes/credit-freezes.page

Just do it. NOW.

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing  identity theft prevention. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247. Disclosures.

Federal Investigators Bust Credit Fraud Ring

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A federal investigation dubbed “Operation Open Market” recently yielded 19 arrests in nine states, for crimes including identity theft and counterfeit credit card trafficking. The defendants allegedly participated in “Carder.su,” a Las Vegas-based transnational ring that bought and sold stolen personal and financial information and manufactured counterfeit IDs and credit and debit cards in order to commit fraud. This criminal organization has also been known to host online forums wherein members are encouraged to buy and sell counterfeit documents and stolen data.

Executive Director of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations James Dinkins commented, “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be understated.”

According to the Federal Financial Institutions Examination Council’s latest update, “Fraudsters use keyloggers to steal the logon ID, password, and challenge question answers of financial institution customers. This information alone or in conjunction with stolen browser cookies loaded on the fraudster’s PC may enable the fraudster to log into the customer’s account and transfer funds to accounts controlled by the fraudster, usually through wire or ACH transactions.”

The FFIEC recommends that financial institutions incorporate device identification into their layered security approach in order to thwart attacks like these, but smart financial institutions are going a step further by employing device reputation analysis approach.

iovation, an Oregon-based firm helping to fight cybercrime, offers device reputation, which builds on its complex device identification technology. It does this by offering real-time risk assessments which look at evidence of past fraud attacks, risk profiles, detects anomalies, and uncovers relationships between devices and accounts that have a history of working in collusion to stealing from online businesses.

Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses the latest data breach on Good Morning America. (Disclosures.)