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11.7 Million Identity Theft Victims Occur Per Year: Are You Next?

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According to Bureau of Justice Statistics, 5% of U.S. residents over the age of 16 fell victim to identity theft within a two-year period. More than half of those affected were victims of credit card fraud.

Identity theft was defined in the survey as the attempted or successful misuse of an existing account, such as a debit or credit account, misuse of personal information to open a new account, or misuse of personal information for other fraudulent purposes, such as obtaining government benefits.

Nationwide 1 out of 4 of those victims faced out of pocket loses of an average $1,870.00. Total losses exceeded $17 billion dollars.

More and more banks and credit card companies are getting better at detecting and preventing fraud in addition to offering zero liability policies. However there is still a significant dollar loss as the public is still being victimized at a staggering rate.

People are victimized in a number of ways including run of the mill scams, advanced fee scams, dumpster diving, mail theft, email phishing and criminal computer hacking.

The study further showed ages 65 and older were least likely to be victimized while those under 35 are much bigger targets. Those with incomes of $75,000.00 are more likely targets.

  1. Invest in a locking mailbox
  2. Shred everything disposable that has personal information
  3. Protect your PC with updated anti-virus and critical operating system security patches
  4. Beware of scams and ruses trying to separate you from your money
  5. Pay close attention to bank and credit card statements and refute unauthorized charges within 60 days.
  6. 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. Backed by $1 million Guarantee, 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. 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 explain how a person becomes an identity theft victim on CounterIdentityTheft.com (Disclosures).

Tips to Keep Your Online Shopping Secure

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With Christmas coming fast, this is a last ditch effort to enlighten, empower and protect online shoppers.  The abridged source of the following information is from the National Cyber Alert System by US-CERT, a government organization.

How do attackers target online shoppers?

  • Targeting vulnerable computers – If you do not take steps to protect your computer from viruses or other malicious code, an attacker may be able to gain access to your computer and all of the information on it.
  • Creating fraudulent sites and email messages – Unlike traditional shopping, where you know that a store is actually the store it claims to be, attackers can create malicious websites that appear to be legitimate or email messages that appear to have been sent from a legitimate source.
  • Intercepting insecure transactions – If a vendor does not use encryption, an attacker may be able to intercept your information as it is being transmitted.

How can you protect yourself?

  • Use and maintain anti-virus software, a firewall, and anti-spyware software.
  • Keep software, particularly your web browser, up to date – Install software updates so that attackers cannot take advantage of known problems or vulnerabilities.
  • Evaluate your software’s settings – The default settings of most software enable all available functionality. Apply the highest level of security available that still gives you the functionality you need.
  • Do business with reputable vendors – Before providing any personal or financial information, make sure that you are interacting with a reputable, established vendor.
  • Take advantage of security features – Passwords and other security features add layers of protection if used appropriately
  • Be wary of emails requesting information – Attackers may attempt to gather information by sending emails requesting that you confirm purchase or account information.
  • Check privacy policies – Before providing personal or financial information, check the website’s privacy policy.
  • Make sure your information is being encrypted – Many sites use SSL, or secure sockets layer, to encrypt information.
  • Use a credit card – There are laws to limit your liability for fraudulent credit card charges, and you may not have the same level of protection for your debit card.
  • Check your statements – Keep a record of your purchases and copies of confirmation pages, and compare them to your bank statements. If there is a discrepancy, report it immediately.

Robert Siciliano personal and home security specialist to Home Security Source discussing Cyber Monday on the Mike and Juliet Show.



7 Tips To Better Credit Card Security

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Every time you use a credit card, you increase the chances of that card number being used fraudulently. Cards can be skimmed and hacked in a number of different ways.

#1 Watch your card. Whenever you hand your credit or debit card to a salesperson or waiter, watch to see where your card is taken and what is done with it. It’s normal for the card to be swiped through a point of sale terminal or keyboard card reader. But if you happen to see  your card swiped through an additional reader that doesn’t coincide with the transaction the card number may have been stolen.

#2 Cover your PIN. There may be cameras or “shoulder surfers” recording your PIN at an ATM or point of sale terminal. Cover up the keypad to foil the bad guys’ plan.

#3 Change up your card number. This is inconvenient but effective. The more frequently you change your number, the more secure that number will be. Once or twice a year is good.

#4 Select online shopping websites carefully. When searching for a product or service online, do business only with those you recognize. Established e-retailers are your safest bet.

#5 Beware of phishing. Never purchase products or services by responding to an email. This generally results in your card number being phished.

#6 Use secure sites. Before entering a credit card number, always look for “https” in the address bar. The “s” in “https” means the site has an additional layer of protection that encrypts the card number.

#7 The most important tip of all is to watch your statements. This extra layer of protection requires special attention. If you check your email daily, you ought to be able to check your credit card statements daily, too, right? Once a week is sufficient, and even once every two weeks is okay. Just be sure to refute any unauthorized withdrawals or transactions within the time limit stipulated by your bank. For most credit cards, it’s 60 days, and for debit cards the limit can be 30 days or less.

Robert Siciliano, personal security expert contributor to Just Ask Gemalto, discusses credit card fraud on NBC Boston. 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)

Part 1 of Identity Theft – 5 Identity Theft Myths Unveiled

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#1 You can’t protect yourself from identity theft.

Some, not all Identity theft is preventable. There are many things people can do to minimize their risk, both online and offline. Shred anything that has names and account numbers or any other data that can be used to con someone else into divulging even more information. Keep financial records protected and private in a locking file cabinet at home or protected PC. Opt out of junk mail. Invest in an identity theft protection service and get a credit freeze.

#2 Identity theft is only a financial crime.

There is also medical identity theft when someone poses as you to get medical attention, criminal identity theft when the thief commits crimes under your identity. There is also employment fraud when they use your SSN to get a job and identity cloning when the thief is simply trying to evade the law or others by posing as you in plain sight.

#3 Technology and computers are why identity theft is so big.

Certainly data breaches are responsible for some identity theft. However, low tech identity theft is the bigger problem. A lost or stolen wallet, checkbook, or a debit or credit card handed over to a clerk or information tossed in the trash are all the most prevalent ways your identity is jacked.

#4 Caller ID is safe.

Caller IDs are easily spoofed with technology that allows the bad guy to change what shows up on your handset. First, no matter who calls, never giver personal information over the phone if you stand to gain or lose something or if the caller states your data was lost in a computer crash. Always use the phonebook or look up the number online and call them back.

#5 Checking your credit report protects you from identity theft.

I’ve always though thought this was silly advice. Checking your credit report just tells you if your identity has been stolen. But you should still check your credit report as often as possible. Some identity theft protection services let you check it every day. I’d check it monthly if you have the option.

Robert Siciliano personal security expert to Home Security Source discussing identity theft on YouTube. Disclosures.

Five Ways Identities Are Stolen Online

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Cybercrime has become a trillion dollar issue. In a recent survey, hundreds of companies around the world estimated that they had lost a combined $4.6 billion in intellectual property as a result of data breaches, and spent approximately $600 million repairing the damage. Based on these numbers, McAfee projects that companies lost more than a trillion dollars in the last year.

There are several motives for this type of theft, but the most prevalent is to steal identities. Your identity is your most valuable asset, but most consumers lack the time, knowledge, and resources to protect their identities. Five of the most common ways identities are stolen online are through phishing scams, P2P file sharing, social networking, malicious websites, and malicious attachments.

Phishing: Phishing scams still work. Despite consumer and employee awareness, a carefully crafted email that appears to have been sent by fellow employee or trusted entity is probably the most effective spear phish. “Whaling,” or targeting a CEO or other high level executive with a phishing email can be even more successful. As they say, the bigger they are, the harder they fall. Never click links in emails, even if they appear to come from a bank or other trustworthy source. Instead, type the address in manually or use a bookmark.

P2P File Sharing: Peer-to-peer file sharing is a fantastic way to leak company and client data to the world. Obama’s helicopter plans, security details, and notes on Congressional depositions have all been leaked on government-controlled computers via P2P. You should set administrative privileges to prevent the installation of P2P software.

Social Networking: One of the easiest ways into a company’s networks is through social media. Social networking websites have grown too big, too fast, and can’t keep up with security. Criminals know exactly how to take advantage of this, so create policies and procedures that outline appropriate use, and beware of social networking scams.

Malicious Websites: Websites designed to attack your computer and infect it with viruses number in the millions. Hacked websites, along with out-of-date operating systems and vulnerable browsers, put your identity at risk. Use antivirus software to protect your PC and your data.

Malicious Attachments: PDFs used to be safe, but Adobe is the same boat today that Microsoft found itself in years ago: hack central. Adobe’s software or files are used on almost every PC and across all operating systems, and criminal hackers love it. Every browser requires software to view PDFs and many websites either link to PDFs or incorporate Adobe Flash to play video or for aesthetic reasons. According to an estimate from McAfee, in the first quarter of this year, 28% of all exploit-carrying malware leveraged an Adobe Reader vulnerability.

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, providing live access to fraud resolution agents who work with victims to help restore identities. For additional tips, please visit http://www.counteridentitytheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss P2P file sharing on Fox News. (Disclosures)

Half Billion Records Breached in 5 Years

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In the late 90s and early 2000s, hacking had evolved from “phreaking” (hacking phone systems) to “cracking” (breaking into networks). At the time, hackers hacked for fun, for the challenge, and for fame and popularity within the hacking community. But soon enough, the public began spending more time online, shopping, banking, and managing personal affairs. Hackers are no longer wreaking havoc for its own sake, deleting files, or tormenting IT administrators. Now, they’re stealing proprietary data. Instead of fun and fame, today’s hackers are motivated by illegal financial gain.

Over the past five years, criminal hackers from all over the world have been targeting huge databases of Social Security and credit card numbers. The endgame for criminal hackers is identity theft. Once they obtain stolen data, their objective is to turn it into cash as quickly as possible. This either entails selling the data to identity thieves on black market forums, or using the information to create new accounts or to take over existing credit card accounts.

According to the Privacy Rights Clearinghouse’s Chronology of Data Breaches, more than 500 million sensitive records have been breached in the past five years. The Chronology of Data breaches lists specific examples of incidents in which personal data is compromised, lost, or stolen: “employees losing laptop computers, hackers downloading credit card numbers and sensitive personal data accidentally exposed online.”

So when a so-called “identity theft expert” claims that you can protect yourself from identity theft for free, simply by shredding documents, not giving out your Social Security number, locking your mailbox, and monitoring your online accounts, that person does not have the full picture. You should take all these precautions. But when almost everyone’s personal information has been stolen or compromised once or twice, as a result of breaches that are entirely out of our control, it’s clear that you simply can’t protect yourself on your own. This is why identity theft protection is a must.

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 visithttp://www.counteridentitytheft.com.

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

Victim Rebuilds Life After Identity Theft

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This story is about a victim of criminal identity theft. The victim is a trucker who discovered that his identity had been stolen when his commercial driver’s license was suspended because the thief who stole his identity had been busted for drinking and driving on four different occasions. Imagine.

The consequences of identity theft are often so overwhelming that the pressure affects every aspect of the victims’ lives. Sometimes the stress is so great that people just fall apart. In the case, the victim lost his license, his possessions, and his marriage.

After testifying against the identity thief, the victim, Earl Robert Hood, told the Associated Press, “It was just hard to sit there in that room with him, knowing what he’d done to me and my family. It’s not just me that it affected; it affected all four of my children, too. Because for two years, they didn’t have Christmas.” The victim went on to say the thief didn’t just steal his name; he stole his life. “I’ve lost everything,” he said. “It just completely wiped me out.”

When this victim’s commercial driver’s license was suspended, so was his ability to earn a living. With no money coming in, bills piled up and the downward spiral began.

Hood’s identity was stolen after he handed his personal information over to a potential employer. Job applications often require applicants to provide home addresses, copies of existing driver’s licenses, Social Security numbers, and, in some cases, birth certificates. This is more than enough information for an identity thief to assume a victim’s full identity.

Victims of identity theft are generally presumed guilty until proven innocent. In this case, the perpetrator committed crimes in multiple states, which further complicated the situation. It took years for this victim to recover his license, even after contacting his state’s Attorney General.

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 discuss identity theft victims on The Morning Show with Mike & Juliet.(Disclosures)

How Much for a Fake I.D.?

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If you want a Puerto Rican identity, it’s about $6000 for a “tripleta,” which can be used to hide illegal immigrants. Other forms of identification vary in price. A United States passport can range from $950 to $1650 to as much as$5500.

In the U.S., we have as many as 200 different forms of identification circulating, including passports from state to state, plus another 14,000 birth certificates and 49 versions of the Social Security card. These are paper and plastic documents that can be recreated with a PC, scanner, printer, and laminator.

McAfee Avert Labs researcher Francois Paget found and posted an ad showing U.S. identities for $650 each. It’s not incredibly difficult to buy fake IDs online, but will they pass muster with technologies that look for tampering? Unfortunately, many will.

An order form asks all the right questions:

“By placing your order, you must have read and agreed to our Terms of Service.

The order procedure is the following:

1. You send us all the necessary information (depending on the document you want to order). We receive and process your order and give you payment information.
2. You pay 50% upfront money for document(s) producing.
3. We start to produce your document(s). Time constraints are 2-7 days (depending on your order).
4. We send you scan/photos of your ready-made document(s). You check all the details and give us confirmation.
5. You send us the second half of amount and your delivery address. You will receive your document(s) in several days via UPS, FedEx, TNT Express, DHL or EMS (free of charge for you).”

Here in the U.S., we use numerical identifiers that have no physical connection to ourselves. Some documents contain pictures that may not look like us, especially if eye glasses, beards, hair coloring, hair growth, hair removal, or weight fluctuations are involved. Some identification documents don’t include a photo at all. This is not effective authentication. Worldwide, the system isn’t much more secure.

All this makes it easier to steal your identity. Once the bad guy has a few bits of information, he can easily become you.

To ensure peace of mind, subscribe to an identity theft protection service, such as McAfee Identity Protection, which offers proactive identity surveillance, lost wallet protection, and alerts when suspicious activity is detected on your accounts. For additional tips, please visithttp://www.counteridentitytheft.com.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss Social Security numbers as national identification on Fox News.(Disclosures)

Killer Computer Viruses

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When most people think about a virus, they think of a fever, chills, and maybe a potential pandemic. But when they think about a computer virus, they think of a headache, or worse, identity theft.

Unusually, one report claims that a computer virus played a role in the deadliest air disaster in Spanish history. Others refute this claim, arguing that a virus was not the cause.

USA Today reports, “Spanish newspaper El Pais cites a 12,000-page investigative report that outlines how a computer infection, spread via an infected USB thumb drive, may have been a contributing factor. The report says a malicious program precipitated failures in a fail-safe monitoring system at the airline’s headquarters in Palma de Mallorca.”

Whether or not a virus contributed to the delay or cancellation of the flight’s departure, which led to the crash, this type of scenario is possible. Now and in the future, incidents like this may involve malicious technology.

Technology plays a role in many aspects of our lives, and when that technology is corrupted, the results can be disastrous. Consider the extent to which hospitals, banks, water treatment facilities, electrical grids, airports, gas stations, and even roads rely on technology.

Steve Stasiukonis, a penetration tester, describes how USB thumb drives can turn external threats into internal ones in two easy steps. After being hired to penetrate a network, he says, “We gathered all the worthless vendor giveaway thumb drives collected over the years and imprinted them with our own special piece of software. I had one of my guys write a Trojan that, when run, would collect passwords, logins and machine-specific information from the user’s computer, and then email the findings back to us.”

In this scenario, the USBs were dropped in a bank parking lot, then picked up by the employees and used to compromise the network. Fortunately for the bank, this was only a test of the network’s security.

Bad guys will use every possible mechanism to accomplish their goals. Do your best to increase your security intelligence. Regardless of your job description, security is everyone’s responsibility.

Robert Siciliano is a McAfee consultant and identity theft expert. See him discuss another data breach on Good Morning America. (Disclosures)