Identity Theft Daily - Updates on Identity Theft Legislation, Arrests and Prevention from the leading experts. http://www.identitytheftdaily.com 2008-08-20T09:06:11+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/images/M_images/identity-theft-daily-logo.gif text/html 2008-08-10T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080810400/Latest/New-Identity-Theft-Prevention-Service-by-LockDownMyId.com.html New ID theft prevention service touts individual privacy control: individuals not asked to grant power of attorney; sensitive info never stored, fraud alert call forwarding reinforces early warning notification, web based service places emphasis on total privacy control and secrecy of all individuals as the only way to stop ID theft. Smart technology along with an emphasis on total privacy of all individuals is the only way to prevent identity theft from ever occuring, says Anthony Tomei, V.P. of LockDown My ID LLC. The Phoenix Arizona based company's website, http://www.lockdownmyid.com, is offering quite a unique service that some say rivals other services that claim protection over prevention. Tomei says, There is no service out there that can protect an individual from identity theft. Only people who are interested in becoming classified can protect themselves fully and that's exactly what LockDown My ID helps them to do. Currently there are a few concierge services that require the individual to give them power of attorney and store that person's sensitive information on their server, this places the customer at risk of data breaches and possible attack from professional hackers. Storing sensitive personal information on another company's server defeats the entire purpose of preventing identity theft and is counterproductive to establishing any protection, says Tomei. LockDown My ID has taken a different approach to identity theft by allowing individuals to LockDown their identity using a virtual web based service that doesn't ask for power of attorney, doesn't store sensitive personal information and offers fraud alert call forwarding with up to 3 phone numbers, plus e mail alerts to make sure consumers are quickly notified wherever they may be. Actual services that benefit the consumer will spearhead an effort to help individuals extract and request removal of their indentity from numerous databases online and offline, says Tomei. According to the Privacy Policy on the LockDown My ID website: LockDownMyID respects the privacy of consumers. They do not require Power Of Attorney from consumers, nor do they act as a third-party middleman like other identity theft prevention/protection companies that store your sensitive personal data on their server where it is at risk for serious potential data breaches. LockDownMyID believes in individual sovereign/privacy . The more classified an individual is the less chance there is for identity theft to occur. In other words, they advocate the total complete privacy of individuals. That says it all. LockDown My ID has launched a campaign to send a clear message to its competitors and those who store sensitive personal information on databases that only total privacy is the key to protection and that individuals have an inherent right as Americans to LockDown their ID. text/html 2008-08-13T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080808398/Prevention/How-to-Protect-Your-College-Student-from-Becoming-an-Identity-Theft-Victim.html According to various studies, including the FTC complaint study, the 18-29 year old age bracket continues to account for almost 30% of all identity theft complaints. Nowadays, it’s not enough to send your college freshman to school with a laptop, cell phone, books and clean clothes. A cross-cut shredder and a locking box large enough to hold a laptop, loaded with current computer security software, are equally important. These protective measures, while seemingly insignificant, are critical steps in protecting your teen’s belongings and personal identifying information. It is also vital to arm them with information about identity theft, scams and other rip-offs they might encounter while living on their own for the first time. The Identity Theft Resource Center offers these tips for college students of all ages. Many of them can be found at the “Teen Space” on the ITRC website: www.idtheftcenter.org Keep your Social Security Card and number in a locked safe place. Do not carry it with you. Don’t share it with anyone without knowing why they need it. Most schools now use a student identification number instead of the SSN. Parents, please note: This may be one factor to consider when choosing a college. Store your laptop in a locking security box when you are not in the room and do not have it with you. Use your home address as the permanent mailing address rather than a temporary address used while in school. This will lessen the complications of multiple addresses. Dorm and apartment mailboxes are not always locked and are easily accessible by people who do not have your best interest in mind. Obtain and use a credit card and NOT a debit card. Credit cards may be pre-paid or have a low limit, if you so choose. Debit cards are targets for identity thieves. Check your monthly statements as they come in and look for unexplained expenses. Never supply a phone, in your name, to someone else, i.e. a friend or roommate. The reason they cannot get a phone is probably because they have bad credit to start in the first place. The chances of being paid back are slim. Never loan credit or debit card to a friend. Again, the reason they cannot get a card is probably because they have bad credit. Co-signing for any cell phone, utility account, car loan or credit card puts you at major, unwarranted risk. Never loan your driver’s license or identification card to anyone. They could use it as an ID card when stopped by the police and you will be listed as the offender. Once you have established credit, check your credit reports annually using the www.annualcreditreport.com program. The reports are free. If you have never established credit, you will be told there is no report. If there is a report, check it out and make sure that none of the information is a result of fraudulent activity. Parents: Talk with your college-bound student about blogging, scams, and tricks con artists use to get Social Security numbers, bank account or credit account numbers and other private information including date and county of birth. Identity thieves could use this information to create a new identity or steal using the information given to them. “All parents with teens or college-bound young adults need to make sure that their teens understand identity theft,” encourages Rex Davis, ITRC Operations Director and a parent of two. “I sent my kids to college to help them with their futures. I would be remiss if I failed to educate them about the fastest growing crime today. A college degree doesn’t mean much if an identity thief has put your child’s credit score in the garbage and affected their ability to get credit or a job.” text/html 2008-08-12T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080808397/Latest/ITRCs-5th-Annual-Aftermath-Study-Released-An-Analysis-of-Identity-Theft-Through-the-Victims-Eyes.html The Identity Theft Resource Center (ITRC) released an important report today discussing the impact of identity theft victimization. Since 2003, the Identity Theft Resource Center has conducted annual victimization surveys to study the impact of identity theft crimes on its victims. Now in its fifth year, the report allows us to analyze the data, draw some conclusions, map trends and identify areas for further research. While ITRC reports the data in terms of percentages, it is critical that we remember those numbers are people. These are people with lives that have been interrupted, altered, torn apart and/or changed. According to several sources, The Aftermath is the only study of its kind. This study reflects only the experiences of confirmed identity theft victims who worked with the ITRC, and is not a census or general population-based study. The questions asked ranged from the emotional impact this crime has had on their lives all the way through to their ability to recover their good name. It includes the financial loss to the business community in goods and services. The Aftermath 2007 does not distinguish between those who are still being affected from those who are not. Thus, certain measures of victimization represent conservative estimates since the assessment was limited to the ending date of the study. The following are highlights of The Aftermath 2007 (http://www.idtheftcenter.org/artman2/uploads/1/Aftermath_2007_20080529v2_2.pdf) study. An analysis of the entire study was done by two business analysts and a psychologist, with their comments included in the full report. The full report can be found on the ITRC website: www.idtheftcenter.org (http://www.idtheftcenter.org/). Prevalence of Types of Identity Theft Crimes: Financial identity theft crimes were reported by 78% of the respondents, 2% reported criminal cases only, and 2% reported governmental issues only. The rest were combination cases: financial and criminal (7%), financial and governmental (9%), and a mixture of all three types (3%). Uses of victim information: More than one-half (57%) of the 2007 sample reported their personal information had been used to open a new line of credit in their name. 13% of all respondents noted their information was used for obtaining new cable and/or utility services. It should be noted, check fraud and debit card fraud are increasing. The ITRC continues to predict that criminals will turn to other types of identity theft when it becomes more difficult to open new lines of credit. This may indicate changes due to the sampling taken. Non-financial forms of identity theft: In 2007, 62% of respondents reported thieves had committed financial crimes that resulted in warrants being issued in the victim’s name, more than 2 ½ times higher than in 2006. All areas of criminal identity theft combined with other issues increased between 2006 and 2007. It should be noted that identity thieves continued to obtain government assistance and benefits using the victim’s information. Sources of Stolen Information: With a five-year history to study, it is clear that according to the respondents about 1/3 of cases were started by a person known to the victim. The next highest category of identity theft originated from a lost/stolen wallet or PDA. Scams have become more of a problem for victims in 2007 than in previous years. Identity theft due to mail theft and theft of information from a burglary of car or home has dropped in the past few years. Moment of Discovery: In 2007, 82% of victims found out about the identity theft through an adverse action compared to 76% in 2006. Only 10% of respondents found out about the crime due to proactive measures taken by businesses and 8% saw something unusual on their credit report. 42% reported that they found out within the first three months of the crime. One analyst believes that people found out more quickly because of the more aggressive nature of collection efforts and the tightening of the credit market. Costs to Victim: Respondents in 2007 spent an average of $550.39 in out-of-pocket expenses for damage done to an existing account. In reference to new accounts, respondents spent an average of $1,865.27 compared to $1,342 in 2006. Cost to Business: In 2007, the average loss in goods and services to businesses, as reported by survey respondents, was $48,941 compared to $87,303 in 2006. Six individuals exceeded $100,000, with one in excess of $700,000. This study only includes respondents who contacted the ITRC in 2007 and is not necessarily indicative of a national business loss average. Victim Hours Repairing Damage: In The Aftermath 2007, victims reported spending an average of 116 hours repairing the damage done by identity theft to an existing account used or taken over by the thief. Answers included 6,000, 8,640, and 5 years of time (outliers). In cases where a new account was created, respondents reported an average of 158 hours to clean up the mess with outliers of “endless” and “too many to count. Extended involvement: In 2007, 70% of victims indicated that it took up to 12 months to clear issues of all misinformation, compared to 50% in 2006. A moderate amount of victims (12%) took one to two years. Unfortunately, some 19% indicated that it took two or more years to resolve their case. Response by Creditors, Utilities and Collection Agencies: As in previous years, credit issuers, utility companies and collection agencies continue to rate poorly in their handling of identity theft victims. Inability to Clear Negative Records: Credit agencies, either by putting negative information back in records (31%) or not removing it in the first place (32%), topped the list of reasons for victims’ inability to clear their records. Other prominent responses include Social Security Number tied to another person’s file (22%) and victims’ fraud alerts ignored (19%). An increase was also seen in the sale of credit accounts even though the fraudulent account was cleared by the creditor and the inability to get proof even with a police report. Unexpected secondary effects: Victims reported a number of additional problems including: increases in insurance rates, current credit card interest rates and criminal records not being cleared. The inability to get credit resonated with the majority of respondents (64%). In addition, 53% have collection agencies still calling, 27% had credit cards cancelled (even though the accounts were being properly maintained), 18% said it affected their ability to get a job, and 14% reported tenancy issues. Relationship of Imposter to Victim: It is important to note that a large percentage of respondents seem to have been victimized by those who may have had easy access to personal identifying information including friends, family members, ex-spouses/significant other, or those in close contact with the victim, such as co-workers. Child Identity Theft: In 2007, 47% of this special case group reported that one, both, or a step parent was the thief. Another 12% reported that it was another family member. 18% said that the person had access to information but is not related and 24% did not know how the case first began. The age of the victim when the crime FIRST began varied, with 18% under five years old. It should be noted that the crime may have been discovered years later. Victim Response to Family or Child Identity Theft: Throughout the five year range, we have seen spikes in categories such as “family supports victim in trying to force responsibility on the thief.” Family support does appear to be increasing, yet some families are torn or still in denial or want the victim to drop the case. Emotional Impact: Few significant positive changes have occurred in the feelings of victims and in terms of reported victim symptomology. More than 49% of the respondents reported stressed family life, 22% felt betrayed by unsupportive family members and friends, and 23% said their family didn’t understand. (Table 17) The strongest feelings expressed were: rage or anger, betrayal, unprotected by police, personal financial fears, sense of powerlessness, sense they were grieving, annoyed, frustrated, exhausted, sleep disturbances, an inability to trust people, and the desire to give up and stop fighting the system. Long term emotional responses included: suicidal, feeling captive, ready to give up and felt that they have lost everything. text/html 2008-08-11T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080808396/Latest/Prevent-Identity-Theft-this-Tax-Season-with-Security-Tips-from-Identity-Finder.html According to the Internal Revenue Service (IRS), a record 77 million taxpayers had their tax returns filed electronically in 2007, a figure sure to increase in 2008. For an identity thief, tax time is prime time. Tax documents are a gold mine for hackers as they contain social security numbers, addresses, and financial information. Over 8 million Americans have their identity stolen each year and the Federal Trade Commission (FTC) reports that in 2007, the highest category of complaints was identity theft, attributing to 32% of total complaints received. Consumers reported fraud losses totaling more than $1.2 billion, almost double that of 2005. The makers of Identity Finder - software designed specifically to prevent identity theft -offer tax-time tips to prevent identity theft and benefit every taxpayer. Password-protect all tax returns that you print to PDF from your tax software so your SSN is secure. Configure all peer-to-peer file sharing programs to disable the sharing of your personal folders so identity thieves can't download your tax return. Don't email tax documents to your accountant unless they are encrypted to prevent anyone snooping on your network from gaining access to your financial information. If downloading your IRS W2 forms, 1099s, and other personal tax documents from your employer, create a strong password when registering to download them so it is not easily guessed by strangers. If you receive an email purporting to be from the IRS that requires personal information to process your return, rebate, or refund, do not respond to it. The IRS does not contact you via email and this is more likely a phishing attack. When you postal mail your tax return to the IRS, mail it from a secured location, like the post office or an official USPS collection box, and do not let it sit in the box overnight as it could be stolen. For added security use certified mail. If you receive an unsolicited phone call from someone claiming to represent the IRS, do not give personal information over the phone. Hang up and call the IRS directly. Permanently shred unsecured documents from your computer that contain personal information used to prepare your tax return. Printed documents should be traditionally shredded. Don't save your password in your web browser when accessing banks and other institutions that keep your personal information because it could be leaked if you ever get a virus, Trojan, or are hacked. Install the latest updates to your operating system to prevent known Windows or Mac vulnerabilities from being exploited by hackers. If making photo copies of your financial documents, make sure the photocopier does not store images of them in memory. text/html 2008-08-19T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080806395/Latest/Top-3-Things-You-Must-Do-to-Protect-Your-Identity.html 1. Mind Your Computer. The internet is probably one of the greatest, if not the greatest invention in the last 20 years. This being said, it has made crimes like identity theft the fastest growing crime in the U.S. How do thieves access your personal information you ask? They do this via unsecured operations on YOUR computer. Your personal information can be collected through e-mails, text messages and phishing. An unencrypted wireless connection can allow others to peek in on your web surfing. This includes any accounts you may be checking and bills you may be paying. Spyware can be downloaded to your personal computer, recording and transmitting every keystroke you make to a thieving third party. You should protect yourself with anti-virus software-especially if you do any type of online banking or conduct any financial transactions online. 2. Check your credit report at least 4 times per year. It is important to view the reports on all 3 of the major credit bureaus (Equifax, Experian and TransUnion) as creditors don’t all report to all 3 bureaus. What shows up on one report may not show on another and vice-versa. You should verify any inaccuracies, errors and validity of accounts. There are a number of online “credit-monitoring” services like Credit Expert through Experian, MyFICO through Equifax and TrueCredit through TransUnion. These programs will update you anytime there is an “inquiry” of your credit and any changes to any accounts. Doing so will enable you to know what is going on at all times regarding your credit. Most people don’t realize they have become a victim until a potential creditor “pulls” their credit report and notices delinquent accounts. 3. Fraud Alerts. Credit freezes would fall into this category as well. Anyone can have a fraud alert or credit freeze added to their credit file with all 3 credit bureaus. This is probably the most aggressive thing you can do to help protect yourself from Identity Theft. This puts any “potential creditor” on notice to take extra measures before extending credit. This may include the furnishing of a Drivers License, Social Security Card, Passport, etc. This step alone would make it extremely difficult for someone to obtain a credit card or loan as they would need some additional documentation to do so. By law, lenders who see a fraud alert are required to do more diligence to verify the identity of someone applying for credit. It is fairly easy to do this but they only last for a set timeframe-usually 90 days. So, to continue to have the fraud alert prevalent, you would need to renew every quarter. These are only 3 things you can do to protect your identity. There are many steps you can take to maintain your good name and credit. Be sure to find out more information on this subject with the necessary tools to clean up any credit issues you may have-especially those relating to identity theft or fraud. text/html 2008-08-17T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080806394/Latest/IdentitySweep-Reduces-Medicare-Identity-Theft-Risk.html IdentitySweep, the cutting-edge identity fraud detection technology that scans billions of public records for suspicious activity associated with identity fraud, today announced a protection plan for Medicare cardholders concerned about Social Security Number theft. Growing stress of seniors and Medicare patients who worry about their Social Security Number on their health cards have prompted IdentitySweep to extended their proactive solution. “Everyday millions of American seniors are subjected to identity theft and numbers are growing constantly. We know that our solution can help those who are prime targets. With Social Security Numbers directly on Medicare cards, predators have easy access to important and pertinent information,” said Pat Dane, Chief Revenue Officer for MyPublicInfo. “With IdentitySweep, user can feel secured knowing that their information is being watched and monitored and in any situation where it has been discovered, IdentitySweep notifies the victim.” Today, identity theft predators can use only a name and a SSN to successfully steal an identity. IdentitySweep searches through billions of public records for suspicious activity associated with identity fraud; scans Internet newsgroups, search engines, blogs, and hundreds of thousands of chat rooms and websites for personal and financial information; and sweeps online directories that list consumer’s information and requests removal of that information to prevent abuse by telemarketers and identity thieves. IdentitySweep provides its users with a “risk score” that accurately measures how much and how long personal information has been compromised. Additionally, IdentitySweep comes with a zero deductible $25,000 ID Theft Insurance policy that reimburses the consumer for most out-of-pocket expenses from an identity breach, including lost wages. Finally, IdentitySweep offers Recovery Butler, the industry's most comprehensive Recovery services. This includes filling out all forms and documents, notifying all three credit bureaus, placing fraud alerts, and ordering hard copy credit reports for Identity Theft victims along with assisting the victim in reviewing their credit files for accuracy. text/html 2008-08-18T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080806393/Latest/IdentitySweep-Protects-Vulnerable-Online-Banking-Customers.html IdentitySweep, the leading-edge identity fraud detection technology that scans billions of public records for suspicious activity, extended their protection to over 24 million at-risk online banking users. With over 60 million online banking users today and over 40 percent of those at risk for a hacker attack through Dan Kaminsky’s recently announced DNS flaw, IdentitySweep has stepped up to the challenge of closely monitoring and protecting users through their revolutionary proactive solution. “With so many online banking users out there, a lot of personal information has the risk of being stolen and used,” says Pat Dane, Chief Revenue Officer for IdentitySweep. “When I first heard about these numbers, not only was I shocked and appalled, I knew that now is the time to feel secure in such an unsecure world. IdentitySweep is here to monitor and aid in identity theft prevention and we’re happy to extend this to the millions of ‘at-risk’ users.” IdentitySweep provides its users with a “risk score” that accurately measures how much and how long personal information might be compromised. Additionally, IdentitySweep comes with a zero deductible $25,000 ID Theft Insurance policy that reimburses the consumer for most out-of-pocket expenses from an identity breach, including lost wages. Finally, IdentitySweep offers Recovery Butler, the industry's most comprehensive recovery service. This includes filling out all forms and documents, notifying all three credit bureaus, placing fraud alerts, and ordering hard copy credit reports for Identity Theft victims, along with assisting the victim in reviewing their credit files for accuracy. text/html 2008-08-14T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080806392/Latest/Rapper-DMX-Charged-With-Identity-Theft.html Controversial rapper DMX has been accused of using a false identity to avoid paying hospital medical expenses. The rapper -- real name Earl Simmons -- was charged in Arizona on Tuesday with one count of theft and one count of stealing someone else's identity. LockDownMyID.com, a Phoenix Arizona based identity theft protection service calls on state and local governments to do more to protect citizens from identity theft. Here you have a very famous rapper, movie star, and talented entertainer being accused of identity theft says Anthony Tomei, V.P. of LockDown My ID LLC. A phoenix based ID theft prevention service. Identity theft is an obvious problem and the service we offer can help prevent these types of occurences from even happening says Anthony. It's unfortunate that DMX is being accused of identity theft but it's quite apparent there is a problem in America with identity theft that needs to be addressed and Identity Theft Prevention service LockDownMyID.com claims to offer what they call America's solution to the identity theft problem. text/html 2008-07-31T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729389/Latest/Metro-Tries-to-Prevent-Identity-Theft-After-Accidentally-Posting-Social-Security-Numbers-of-Workers.html Metro has advised nearly 4,700 past and present employees that their social security numbers were published accidentally on the transit agency’s Web site last month. The information was posted between June 9 and 25 as part of a solicitation from Metro to companies interested in providing worker’s compensation and risk management services. The document mistakenly included the social security numbers of 4,675 employees. A smaller group of employees had their names and social security numbers posted in the lengthy document. Metro officials continue to analyze the information for any other data breaches. Letters warning of the breach were sent out to the affected employees. The letter urges employees to watch their credit reports for signs of identity theft. The agency is offering the 4,700 employees one year of free credit report monitoring, $25,000 in identity theft insurance and counseling services. An internal Web site also was set up for employees to verify if they were affected. Former employees who have not received a letter but still want to verify if their information may have been released, can contact Metro at 202-962-2297. “We deeply regret this incident, and believe the likelihood of misuse of the information is low,” said Metro Chief Safety Officer Ronald Keele. “However, we have taken additional steps to protect employee information by bolstering Internet security and requiring more checks and balances of materials before they are being released publicly.” Metro officials say they are not alone in this type of data breach. According to the Identity Theft Resource Center, data breaches at businesses, governments and universities were up 69 percent in the first half of 2008 compared with a similar period in 2007. The nonprofit fraud prevention group found 15 percent of reported data breach cases were caused by the inadvertent posting of personal and financial data online. text/html 2008-07-30T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729385/Latest/Bill-to-Protect-Medicare-Patients-from-Identity-Theft-Introduced.html Congressman Sander Levin applauded today the introduction of legislation to help protect seniors and the disabled from identity theft. The bill, H.R. 6600, of which Rep. Levin is an original cosponsor, would require the Centers for Medicare Medicaid Services (CMS) to phase out the display of Medicare beneficiaries’ Social Security numbers on Medicare cards to reduce the likelihood that patients’ numbers can be obtained for use in pernicious identity theft crimes. “Identity theft is a large and growing problem, and its effects can be very onerous for the elderly and disabled citizens on Medicare to resolve,” said Rep. Levin. “We should take every step available to protect privacy and curb these insidious crimes.” The Office of the Inspector General (OIG) of the Social Security Administration has identified the display of Social Security numbers on Medicare cards as a threat to Medicare beneficiaries’ privacy and financial security. The OIG stated in a May 2008 report to the Social Security Commissioner: “Displaying [Social Security numbers] on Medicare cards unnecessarily places millions of individuals at risk for identity theft.” The OIG went on to recommend that the Social Security Administration Commissioner proactively encourage Congress to pass legislation to require phasing out the use of Social Security numbers on Medicare cards in order to prevent identity theft. “One sector of government, the Social Security Administration, urges citizens to avoid carrying their Social Security numbers on their person. Meanwhile, another government agency is printing Social Security numbers on cards intended to be carried,” said Rep. Levin. “It’s not good when the left hand doesn’t know what the right hand is doing, but it’s even worse when the left and right hands are working in direct opposition to each other. The bill we are introducing today will eliminate the contradiction in policies of two federal government agencies, and will protect people’s privacy and financial security.” text/html 2008-08-03T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729384/Latest/International-Identity-Theft-Ring-Operating-in-the-U.S.-and-Romania-Disrupted.html Thirty-eight individuals with ties to international organized crime have been charged in two separate indictments involving computer and credit card fraud schemes, Deputy Attorney General Mark R. Filip, Romanian Prosecutor General Laura Codruţa K övesi, U.S. Attorney for the Central District of California Thomas P. O’Brien and Acting U.S. Attorney for the District of Connecticut Nora R. Dannehy announced today. The Deputy Attorney General made the announcement with the Romanian Prosecutor General to highlight the extensive and continued cooperation between the two countries in addressing these types of international crimes. The announcement comes less than one month after U.S. Attorney General Michael B. Mukasey announced the Department’s new Law Enforcement Strategy to Combat International Organized Crime. “International organized crime poses a serious threat not only to the United States and Romania, but to all nations,” said Deputy Attorney General Mark R. Filip. “Criminals who exploit the power and convenience of the Internet do not recognize national borders; therefore our efforts to prevent their attacks cannot end at our borders either. Through cooperation with our international partners, we can disrupt and dismantle these enterprises, just as we have done today with these indictments and arrests.” A federal grand jury in Los Angeles charged 33 individuals in a 65-count indictment unsealed today for their alleged participation in an international racketeering scheme that used the Internet to defraud thousands of individual victims and hundreds of financial institutions. Seven individuals were charged in a District of Connecticut indictment for their roles in an Internet phishing scheme, including two who were also charged in the Los Angeles case. U.S. law enforcement authorities are executing nine arrest warrants in the Los Angeles area and Romanian law enforcement authorities are executing search warrants in Romania today in connection with the racketeering indictment. As described in the indictments and other publicly filed documents, a phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages, which are made to appear as if they originated from legitimate banks, financial institutions or other companies. The Los Angeles indictment alleges a conspiracy to violate the RICO Act; conspiracy in connection with access devices; production, use and trafficking in counterfeit access devices; bank fraud; aggravated identity theft; unauthorized access to a protected computer; possession of device making equipment; and a forfeiture allegation. The RICO conspiracy charge carries a maximum prison sentence of 20 years. The count of access device fraud conspiracy carries a maximum sentence of seven and a half years in prison; the charge of production, use and trafficking in counterfeit access devices carries a maximum 10 year prison sentence; and possession of device making equipment carries a 15 year maximum prison sentence. The charge of bank fraud carries a maximum 30 year prison sentence. The unauthorized access count carries a maximum prison sentence of five years, and aggravated identify theft carries a mandatory two year prison sentence. All charges except aggravated identity theft also contain provisions for fines and terms of supervised release. According to the indictment, the Romania-based members of the enterprise obtained thousands of credit and debit card accounts and related personal information by phishing, with more than 1.3 million spam emails sent in one phishing attack. Once directed to a bogus site, victims were then prompted at those sites to enter access device and personal information. The Romanian “suppliers” collected the victims’ information and sent the data to U.S.-based “cashiers” via Internet “chat” messages. The domestic cashiers used hardware called encoders to record the fraudulently obtained information onto the magnetic strips on the back of credit and debit cards, and similar cards such as hotel keys. Cashiers then directed “runners” to test the fraudulent cards by checking balances or withdrawing small amounts of money at ATMs. The cards that were successfully tested, known as “cashable” cards, were used to withdraw money from ATMs or point of sale terminals that the cashiers had determined permitted the highest withdrawal limits. A portion of the proceeds was then wire transferred to the supplier who had provided the access device information. “Partnerships and cooperation among all levels of law enforcement – both domestic and foreign – are the keys to tackling criminal activity that increasingly knows no borders,” said U.S. Attorney for the Central District of California Thomas P. O’Brien. “Just as street gangs don’t respect municipal borders, computer criminals can reach into other countries and prey upon unsuspecting victims who have no idea their identities and money are going to another country.” The individuals named in the indictment operated from locations in the United States and abroad including Canada, Pakistan, Portugal and Romania, and include both U.S. citizens and foreign nationals. Sonny Duc Vo, Alex Chung Luong and Leonard Gonzales are U.S. citizens. Nga Ngo, Thai Hoang Nguyen, Loi Tan Dang and Dung Phan are permanent legal residents of Vietnam. Hiep Thanh Tran is a U.S. permanent resident from Vietnam. Caroline Tath is a permanent legal resident of Cambodia. Hassan Parvez is a citizen of Pakistan. Rolando Soriano is a Mexican citizen and is currently charged in Los Angeles with illegal entry by an alien following deportation. Ovidiu-Ionut Nicola-Roman; Petru Bogdan Belbita; Stefan Sorin Ilinca; Sorin Alin Panait; Costel Bulugea; Nicolae Dragos Draghici; Florin Georgel Spiru; Marian Daniel Ciulean; Irinel Nicusor Stancu; Didi Gabriel Constantin; Mihai Draghici; Marius Sorin Tomescu; Lucian Zamfirache; Laurentiu Cristian Busca; Dan Ionescu; Marius Lnu; Alex Gabriel Paralescu; and Andreea Nicoleta Stancuta are Romanian citizens. An additional four individuals known only by their aliases, “Cryptmaster”; “PaulXSS”; “euro_pin_atm” and “SeleQtor” are believed to be Romanian citizens. Seuong Wook Lee, a cashier in the scheme, pleaded guilty on May 15, 2008, in U.S. District Court in Los Angeles to racketeering conspiracy, bank fraud, access device fraud and unauthorized access of a protected computer. In a related case, seven Romanian citizens were charged in an indictment returned by a federal grand jury in New Haven, Conn., on Jan. 18, 2007, and unsealed on May 16, 2008, in connection with an Internet phishing scheme. The indictment alleges conspiracy to commit fraud in connection with access devices, conspiracy to commit bank fraud and aggravated identity theft. The investigation in the District of Connecticut resulted from a citizen’s complaint concerning a fraudulent e-mail message made to appear as if it originated from Connecticut-based People’s Bank. In fact, the e-mail message directed the identity theft victims to a computer in Minnesota that had been compromised, or “hacked,” and used to host a counterfeit People’s Bank Internet site. During the course of the investigation, it was determined that the individuals had engaged in similar phishing schemes against many other financial institutions and companies, including Citibank, Capital One, JPMorgan Chase Co., Comerica Bank, Wells Fargo Co., eBay and PayPal. “This case shows that Internet fraudsters cannot avoid prosecution just by launching their attacks against U.S. residents and U.S. companies from overseas,” said Acting U.S. Attorney for the District of Connecticut Nora R. Dannehy. “With the help of our law enforcement partners around the world, we will investigate and prosecute fraudsters wherever they can be found.” “We will continue to work closely with our foreign and domestic law enforcement partners and employ the investigative tools available to bring organized criminals to justice,” said FBI Deputy Director John S. Pistole. “The recent cooperation and information sharing with our Romanian law enforcement partners and allies at the Southeast European Cooperative Initiative has been invaluable. Despite being separated by oceans, we are united in the fight against organized crime.” The individuals named in the District of Connecticut indictment are Ciprian Dumitru Tudor, Ovidiu-Ionut Nicola-Roman, Mihai Cristian Dumitru and Petru Bogdan Belbita, all residents of Craiova, Romania; and Radu Mihai Dobrica, Cornel Ionut Tonita and Cristian Navodaru, all residents of Galati, Romania. Nicola-Roman was located in Bulgaria and arrested on an Interpol warrant on June 6, 2007. He was extradited to the United States on Nov. 8, 2007. Nicola-Roman and Belbita are also charged in the Los Angeles case. If convicted, each of the individuals in the District of Connecticut case faces a maximum term of five years in prison on each conspiracy charge, and a mandatory term of two years in prison on the aggravated identify theft charge. In addition, each of the individuals is subject to a maximum fine of $250,000 on each count, or twice the gain resulting from the offense, whichever is greater. The individuals also may be sentenced to a maximum term of three years supervised release on each charge. On April 23, 2008, Attorney General Michael B. Mukasey announced the Law Enforcement Strategy to Combat International Organized Crime to address the growing threat to U.S. security and stability posed by international organized crime. The strategy was developed following an October 2007 International Organized Crime Threat Assessment. The strategy specifically reacts to the globalization of legal and illegal business, advances in technology, particularly the Internet, and the evolution of symbiotic relationships between criminals, public officials and business leaders that have combined to create a new, less restrictive environment within which international organized criminals can operate. Without the necessity of a physical presence, U.S. law enforcement must combat international organized criminals that target the relative wealth of the people and institutions in the United States while remaining outside the country. Ultimately, the strategy aims to create consensus among domestic law enforcement in identifying the most significant priority targets and then unified and concerted action among domestic and international law enforcement in significantly disrupting and dismantling those targets. International organized crime is defined as those self-perpetuating associations of individuals who operate internationally for the purpose of obtaining power, influence, monetary and commercial gains, wholly or in part by illegal means, while protecting their activities through a pattern of corruption and violence. International organized criminals operate in hierarchies, clans, networks and cells. The crimes they commit vary as widely as the organizational structures they employ. An indictment is a formal charging document notifying the defendant of his/her charges. All persons charged in an indictment are presumed innocent until proven guilty. The Los Angeles case is the result of a joint investigation involving the FBI, the Romanian General Inspectorate of Police, the U.S. Postal Service, the Internal Revenue Service and local law enforcement agencies including the Seal Beach, Costa Mesa, Huntington Beach, Irvine, Westminster and Anaheim, Calif., Police Departments. Additional assistance was provided by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Mark Aveis in the U.S. Attorney’s Office for the Central District of California. The case being prosecuted in the District of Connecticut was investigated by the FBI and the Connecticut Computer Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Edward Chang of the U.S. Attorney Office’s Computer Hacking and Intellectual Property Unit. text/html 2008-08-04T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729390/Latest/Consumer-Reminders-How-to-Protect-Yourself-from-Identity-Theft.html As consumers, to protect oneself from personal identity theft, including credit card fraud and even mail fraud, it is vital that one does not give out personal information over the phone or in response to unsolicited emails. Recently, as some consumers have experienced, people have received automated phone calls claiming that their bank account information had been compromised. The automated caller then requests access to personal account information. Consumers should never provide personal information over the phone without first confirming the identity of the caller. Consumers should hang-up and contact their bank directly. Identity theft occurs when someone steals your personal information and uses it to commit financial fraud or other crimes. Personal information includes your name, address, driver’s license number, Social Security number, mother’s maiden name, birth date, bank account, credit card, or PIN number. To protect yourself, follow some of these important tips. -Never provide personal financial information, including your Social Security number, account numbers or passwords, over the phone or the Internet if you did not initiate the contact. -Never click on the link provided in an email you believe is fraudulent. -Do not be intimidated by an email or caller who suggests dire consequences if you do not immediately provide or verify financial information. -If you believe the contact may be legitimate, contact the financial institution yourself. You can find phone numbers and websites on the monthly statements you receive from your financial institution, or you can look the company up in a phone book or on the Internet and contact them directly. -Never provide your password over the phone or in response to an unsolicited phone or Internet request. A financial institution would never ask you to verify your account information on the phone or online. -Review account statements regularly to ensure all charges are correct. If your account statement is late in arriving, call your financial institution to find out why. If your financial institution offers electronic account access, periodically review activity online to catch suspicious activity. text/html 2008-08-05T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729388/Latest/Kansas-Consumers-Alerted-to-Credit-Card-Scam.html Representatives claiming to be from credit card companies may be trying to obtain critical information to allow them to charge Kansas consumer's credit cards, while claiming to be helping prevent credit card fraud. Attorney General Steve Six announced today that his office was alerted to a fraudulent pattern that has impacted Kansas consumers in recent days. The scam has already been reported in five Kansas counties. The caller, claiming to be from Visa or Mastercard, says they are calling in response to an unusual purchase pattern on your card. They will already have your credit card number and address - the only thing they are missing is the security numbers printed on the back of your card in the signature line. They will ask you to verify this three-digit code to prove that you have not lost your credit card. This verification will then give the scammer access to your credit card for online purchases. Keep in mind that these con artists are good at convincing consumers and will offer bogus assurances that they are calling from the credit card company, such as name and a badge number or other ID number to corroborate their scam. Your credit card company will never need to call you for the numbers on your card; they issued the card and have that information readily available. As always, consumers should be very cautious about giving out personal and financial information to someone who calls them on the telephone and should promptly file a police report if someone tries to obtain personal information over the telephone. text/html 2008-08-06T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729387/Latest/Man-Charged-of-Purchasing-S.D.-Padres-Tickets-Using-Fraudulent-Credit-Card.html United States Attorney Karen P. Hewitt announced that Jonick Franz “Nick” Larsen was sentenced today in federal court in San Diego by the Honorable Larry A. Burns, United States District Judge, to serve 6 months in prison for credit card fraud directed against the San Diego Padres Baseball Club in August 2007. Mr. Larsen pleaded guilty on April 30, 2008. In addition to custody, Mr. Larsen was ordered to pay $15,529.80 in restitution to the San Diego Padres. According to Assistant U. S. Attorney Mitch Dembin, who prosecuted this case, Mr. Larsen admitted in connection with his guilty plea that he used pilfered credit card numbers supplied to him by others to purchase a large number of tickets for the series of games to be played in San Diego in early August 2007 between the San Diego Padres and the San Francisco Giants. At the time, former Giant Barry Bonds was chasing baseball’s home run record so demand for tickets for the games was high. Mr. Larsen purchased tickets and sold them to innocent third parties. This case was investigated by Special Agents of the United States Secret Service and Detectives of the San Diego Police Department under the auspices of the San Diego Regional Fraud Task Force. text/html 2008-08-01T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080729386/Latest/Identity-Theft-and-Internet-Crimes-on-the-Rise.html Reports have shown that identity thieves are becoming more ruthless and creative in the way they obtain personal data online. Internet users are being urged to aware and install internet filters such as Integard to prevent the incident of identity theft. Identity thieves have been known to form online friendships until personal information is obtained. Other cases involve victims releasing personal details such as credit card numbers, phone numbers or addresses to unauthorized or illegitimate websites. The best preventative to identity theft is the installation of internet filters such as Integard. A filter will ensure that internet users think twice before releasing personal information online. Spokesperson for Race River Corporation, Mr. Daniel Millerson said that internet users should not underestimate the intelligence of hackers or the persuasive methods used by identity thieves. “Victims of identity theft have said that they hardly realized that they gave personal information to their ‘online friend’ because he or she seemed so genuine.” Mr. Millerson said. Thus, to be safe, all Internet users should install programs that block the release of credit card numbers and other personal details to illegitimate websites. Adults should also make sure that their kids don’t give their phone numbers or addresses to strangers in chat rooms or on websites. text/html 2008-07-23T16:02:13+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080723380/Latest/City-Officials-and-Frank-Abagnale-Hosted-Shred-Fest-NYC-to-Raise-Awareness-About-Identity-Theft.html Consumer Affairs Commissioner Jonathan Mintz, Criminal Justice Coordinator John Feinblatt, officials from the Departments of Parks Recreation and Sanitation and Frank Abagnale, author of Stealing Your Life and subject of the motion picture Catch Me If You Can , kicked off Shred Fest NYC, the City's first-ever free shredding event, to increase public awareness of identity theft prevention. The event served as a reminder to New Yorkers about the importance of shredding documents that contain personal identifying information before throwing them away. Every year, an estimated 14,000 New Yorkers become victims of identity theft, the fastest growing crime in the country. Document shredding is one of the most important ways New Yorkers can protect their identity. Shred Fest NYC was held on Sunday, April 27, from 10 a.m. to 4 p.m. at 11 locations throughout the five boroughs where New Yorkers could bring personal documents to be shredded. In addition to having their documents shredded by industrial shredding equipment, New Yorkers received information on how to prevent identify theft and had an opportunity to receive one of fifty Staples MailMate 3 paper shredders donated by Staples. All of the shredded paper generated by Shred Fest NYC will be recycled. Perhaps the single biggest surprise when it comes to protecting your identity is that you're in a terrific position to protect yourself, said Consumer Affairs Commissioner Jonathan Mintz. The City's 11-site, 5-borough 'Shred Fest NYC' launches our public awareness campaign on identity theft protection, which will empower New Yorkers to take proactive steps to protect sensitive personal information. Having your identity stolen can turn your life upside down, said John Feinblatt, the Criminal Justice Coordinator. The good news is consumers can take simple steps to safeguard their personal information and avoid becoming a victim. I encourage New Yorkers to clean those old files out of their closets and bring them to a Shred Fest NYC location so their documents can be safely destroyed and the paper recycled. Your private documents are better shred than read, so bring your personal documents to one of the 11 Shred Fest locations to be shredded and recycled – and enjoy your parks while you're at it, said Parks Commissioner Adrian Benepe. Public parks are accessible gathering places and we are pleased to host Shred Fest NYC in many parks throughout New York City. Recycling all types of paper is a very good way to help manage our solid waste, said Sanitation Commissioner John J. Doherty. Shredding valuable documents then recycling the residual paper is an excellent way to protect against identity theft. Hence, Sunday's Shred Fest NYC sounds like an absolute win-win for all New Yorkers and for the Mayor's innovative measures to 'green' our environment. Identity theft is the fastest growing crime in the United States, and with 70 percent of the American public having had some piece of personal data stolen, we have an epidemic on our hands, said Frank W. Abagnale, world-renowned expert on identity theft and fraud, and subject of Steven Spielberg's movie Catch Me if You Can. Many of the incidents of identity theft from individuals and businesses come from the most unexpected places and can be avoided with simple common sense. When you look at the time and financial costs incurred by ignoring these safeguarding behaviors, it is staggering. New Yorkers brought their documents containing personal information to be shredded, and securely disposed of, at the 11 Shred Fest locations throughout the City. New Yorkers were invited to bring boxes or bags of documents, mail or any paper materials, including bank statements, paycheck stubs or credit card applications to be shredded in trucks mounted with industrial shredding equipment provided pro bono by Code Shred, Brink's Document Destruction and USA Shred. The trucks were equipped with television monitors mounted on the sides of the trucks to allow for viewing of the shredded material. Criminal Justice Coordinator John Feinblatt also announced that a recent examination of retailers' use of personal information on credit card receipts revealed that some merchants are not complying with the law. Federal and state law requires that electronically issued credit card receipts redact the credit card expiration date and all but the last five numbers of the credit card. The Mayor's Office has asked over 36 merchants to change practices that do not comply with the law, and over three-quarters of those merchants have already done so; the rest are in the process of complying with the law. DCA recently announced that it issued violations against LifeLock, Inc. – the self-proclaimed industry leader in the identity theft protection industry. Its deceptive print and Web site advertisements can lead consumers to believe falsely that they are insured against any identity theft that takes place while they are enrolled with LifeLock. text/html 2008-08-02T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080728383/Latest/Company-Report-Benchmarks-25-Top-Credit-Card-Issuers-for-Consumer-Identity-Safety-Features.html Javelin Strategy Research announced results from their annual Card Issuers Identity Safety Scorecard Report, raising greater awareness about the impact of credit card fraud on consumers and identifying the most recent trends on how to work with cardholders to effectively battle identity fraud. In this report Javelin scores 25 of the nation’s top credit card issuers against a benchmark of criteria for customer safety features essential to fraud Prevention, Detection and Resolution™. “Card issuers have done a excellent job with providing comprehensive resolution services that essentially make consumers ‘whole’ after fraud is committed, said James Van Dyke, President of Javelin Strategy Research. “However, our data shows that consumers want to play a proactive role in monitoring and protecting their accounts. We believe this creates an important opportunity for card issuers to more actively partner with consumers, which will help to reduce overall fraud loss, as well as improve consumer loyalty.” Javelin scores credit card issuers against a benchmark of highly-specific safety criteria for each category area of Prevention, Detection and Resolution. The benchmark is based on extensive surveys of both fraud victims and institution practices, so that the Prevention, Detection and Resolution criteria reflect card features that address current trends on how to effectively battle identity fraud in the card portfolio. Overall, Bank of America achieved top honors in Javelin’s 2008 Card Issuers’ Identity Safety Scorecard; second place went to Discover, followed by FNB Omaha and U.S. Bank. Javelin also benchmarked card issuers within each category area: -In the Prevention category, the top three card issuers were Bank of America in first position, followed by FNB Omaha and then Discover. -In the Detection category, American Express leads, then U.S. Bank, in third position, Bank of America. -In the Resolution category top honor is equally shared by seven card issuers including, American Express, Bank of America, Discover, JPMorgan Chase, State Farm Bank, Wachovia, and WaMu. The scorecard provides insight into the state of safety features among credit card issuers, highlighting strides being made to advance consumer safety. It also offers recommendations for improvements and expansion of features in each category area of Prevention, Detection and Resolution. -Overall credit card issuers are honing in on online purchase authentication, with 84% of issuers offering secondary passwords for online purchases through programs such as Verified by Visa and Mastercard SecureCode™, as well as virtual account numbers (VANs). -Paper turn-off is becoming a more ubiquitous offering among card issuers, as electronic statements not only help the environment, but from a fraud prevention perspective, consumers lessen the risk of identity theft from stolen or discarded paper statements. -Card Issuers have made considerable strides in providing alerts for changes in personal information, with the average percentage of top issuers offering alerts for changes to physical address dramatically jumping from 16% in 2007 to 56% this year. -User-defined limits and prohibitions (UDLAPS) on customer-specific accounts activity continues to be overlooked despite the ability of UDLAPS to prevent fraud. -While all of the leading credit card issuers maintain a zero liability policy for fraudulent transactions, only four out of ten reverse fraudulent charges within 24 hours. “Last year, identity fraud reached $45 billion in losses and affected 8.1 million American consumers, so identity protection is now a mainstream issue with considerable public awareness,” said Van Dyke. “Credit card issuers benefit from our research because is based on actual consumer data. In the case of this year’s Credit Card Issuer’s Identity Safety Scorecard, Javelin research demonstrates that concerns about identity fraud not only influences consumers purchasing behaviors, it defines what credit cards they will use.” What Consumers Need to Know Because fraud can be committed through so many methods, consumers are advised to utilize a variety of effective measures to protect themselves. Javelin provides consumer information for identity protection at www.idsafety.net. The website was created to raise awareness about the impact of identity fraud and highlights important safety measures consumers can follow to protect their identity. Featured on the site is an easy-to-take Safety Identity Quiz for consumers to learn if their daily habits are keeping their identity safe or putting them at risk. Javelin’s Methodology for the Card Issuer Safety Scorecard Report Javelin conducted rigorous and comprehensive research on consumer-facing identity fraud Prevention, Detection and Resolution features. Javelin ranked 25 of the nation’s top credit card issuers on the services and measures they have implemented in partnership with consumers to protect against identity fraud. It analyzed data supplied by the issuers’ customer service representatives (CSRs) and consulted information available on card issuers’ websites. Javelin researchers validated the process with firsthand reviews of actual features in selected cases. The research employed a multi-disciplinary approach: statistical analysis, review of features and policies on card issuer websites, and mystery shopping with multiple senior level customer service representatives. The Prevention and Detection categories were weighted more heavily than Resolution due to the greater potential benefits and cost savings. text/html 2008-07-29T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080728382/Latest/Two-Plead-Guilty-in-Check-Fraud-Scheme.html United States Attorney McGregor W. Scott announced that the last two defendants, JASMIN NICOLE BUTTS, 23, of San Francisco, Calif., and TIFFANY CHARANADA PIPPINS, 21, of Hayward, Calif., pleaded guilty this morning to bank fraud and attempted bank fraud before United States District Judge Morrison C. England, Jr. Three other defendants pleaded guilty recently in the same scheme: JASMINE CHANEL CARMICHAEL, 23, of Sacramento, Calif., pleaded guilty on April 3, 2008; EBONY CROMWELL, 22, of Vallejo, Calif., pleaded guilty on June 12, 2008; and DARCELL EPPS, 21, of San Francisco, pleaded guilty on July 3, 2008. This case is the product of an investigation by the Placer County Sheriff’s Department and the United States Secret Service. According to Assistant United States Attorney Kyle Reardon, who prosecuted the case, between May 29, 2007 and August 8, 2007, the defendants were part of a coordinated scheme to steal account information from Wells Fargo customers. Using that information, they called Wells Fargo Customer Service and changed the contact information on those accounts to a phone number that they controlled. They would then prepare checks with the stolen account information in amounts ranging from $2,000 to $7,500. BUTTS would drive CARMICHAEL, PIPPINS, CROMWELL, or EPPS to various Wells Fargo branches in Roseville and Rocklin, as well as the Bay Area and Reno, Nevada, and give them forged checks to be cashed. BUTTS and CROMWELL also traveled to Las Vegas, Nevada to cash forged checks. When presented with the checks, Wells Fargo called the account holder to confirm its validity. Due to the fact that the contact information had been changed, a co-conspirator would receive the call and authorize payment. The proceeds of the fraudulently cashed check would be shared among all parties. In total, the conspiracy netted $199,163. Unsuccessful attempts were made by the co-conspirators to cash an additional $17,962 worth of fraudulent checks The defendants are scheduled to be sentenced by Judge England at different times in the next several weeks. The maximum statutory penalty for each violation of 30 years in prison, a $250,000 fine, a five-year term of supervised release, and restitution. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors. text/html 2008-07-28T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080728381/Latest/Identity-Theft-Scammers-Pose-as-IRS.html The Internal Revenue Service cautions taxpayers to be on the lookout for a new wave of scams using the IRS name in identity theft e-mails, or phishing, that have circulated during the last two months. In May and June alone, taxpayers reported almost 700 separate phishing incidents to the IRS. In 2008 so far, taxpayers have reported about 1,600 phishing incidents to the IRS. “Taxpayers should take steps to keep their personal information out of the hands of identity thieves,” said IRS Commissioner Doug Shulman. “That includes not falling for any of the phony e-mails or faxes now in circulation pretending to come from the IRS.” The most common scams involve tax refunds and, this year, economic stimulus payments. Although most of these scams consist of e-mails requesting detailed personal information, the IRS generally does not send e-mails to taxpayers, does not discuss tax account matters with taxpayers in e-mails, and does not request security-related personal information, such as PIN numbers, from taxpayers. Refund e-Mail Scam There are several variations of the refund scam, in which an e-mail claiming to come from the IRS falsely informs the recipient that he or she is eligible for a tax refund for a specific amount. The bogus e-mail instructs the recipient to click on a link to access a refund claim form. The form requests personal information that the scammers can use to access the e-mail recipient’s bank or credit card account. This notification is phony. The IRS does not send unsolicited e-mail about tax account matters to taxpayers. Filing a tax return is the only way to apply for a tax refund; there is no separate application form. Taxpayers who wish to find out if they are due a refund from their last annual tax return filing may use the Where’s My Refund? interactive application on this Web site. IRS.gov is the only official IRS Web site. Economic Stimulus Payments Scam In this scam, a taxpayer receives an e-mail pretending to come from the IRS which tells the recipient he or she is eligible for an economic stimulus payment. The message recommends direct deposit into the taxpayer’s checking or savings account. To receive the payment, recipients must click on a link to complete and submit an online form by a certain date; otherwise, the e-mail warns, payment may be delayed. The form requests personal and financial data, including checking or savings account numbers that the scammers can use to gain access to the accounts. In reality, the way members of the public receive their economic stimulus payment is to file a tax return with the IRS, not a special form. Additionally, the IRS does not request personal or financial information via e-mail. Substitute Form 1040 Fax Scam This scam consists of a cover letter and form that are faxed, rather than e-mailed. The cover letter is addressed “Dear Valued Tax Payer (sic)” and appears to be signed by an IRS employee. The letter says that the IRS is updating its files and that recipients who supply the requested information will receive a nominal tax refund. It also states that those who fail to immediately return the completed form risk additional tax and withholding. The attached form is labeled a substitute Form 1040 and is titled “Certificate of Current Status of Beneficial Owner For United States Tax Recertification Withholding.” It requests a large amount of detailed personal and financial information, such as mother’s maiden name (often used in security screening), bank account numbers, estimated assets and more. It asks the recipient to sign and fax back the completed form, as well as a copy of the recipient’s driver’s license and passport. The letter, signature and form are all fraudulent. Moreover, the IRS does not send unsolicited faxes to taxpayers and does not request such detailed personal and financial information. Company Report Scam This e-mail appears to come from an IRS.gov e-mail address, addresses recipients by name and references the company the recipient works for. These personalized details may convince the recipient that the e-mail is legitimate. The e-mail says that the IRS has a report on the company and asks the recipient to review a copy by clicking on a link to download the report. However, when the link is clicked, malware is downloaded to the recipient’s computer. There are various types of malware, which can hijack a victim’s computer hard drive to give someone remote access to the computer, search for passwords and other information and send them to the scammer, or cause other types of identity theft or damage. The IRS does not compile reports on companies or send e-mails to company staff asking them to review a report. Generally, the IRS does not send unsolicited e-mails to taxpayers. Tax Court Scam In this scam, an e-mail that appears to come from the U.S. Tax Court contains a petition involving a court case between the IRS and the recipient. The document instructs the recipient to download other files. The downloads transfer malware, or malicious code, to the recipient’s computer. There are various types of malware, which, for example, can hijack a victim’s computer hard drive to give someone remote access to the computer, or can search for passwords and other information and send them to the scammer. The truth is that the Tax Court is not e-mailing notices to anyone who currently has a case before the court. Visit the court’s Web site at http:www.ustaxcourt.gov/ for more information. Recipients are advised to avoid clicking on any links in the e-mail and to delete the e-mail. How Scams Work To lure their victims, phishing scams use the name of a known institution, such as the IRS, to either offer a reward for taking a simple action, such as providing information, or threaten or imply an unpleasant consequence, such as losing a refund, for failing to take the requested action. The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft. Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scammers to act quickly and cover their tracks before the victim becomes aware of the theft. People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their reputations and credit records. In the meantime, victims may lose job opportunities or may be refused loans, education, housing or cars. What to Do Anyone wishing to access the IRS Web site should type www.irs.gov into their Internet address window, rather than clicking on a link in an e-mail or opening an attachment, either of which may download malicious code or send the recipient to a phony Web site. Those who have received a questionable e-mail claiming to come from the IRS may forward it to the following address: phishing@irs.gov. Following the instructions will help the IRS track the suspicious e-mail to its origins and shut down the scam. Those who have received a questionable telephone call that claims to come from the IRS may also use the phishing@irs.gov mailbox to notify the IRS. text/html 2008-07-24T23:00:00+01:00 http://www.identitytheftdaily.com http://www.identitytheftdaily.com/index.php/20080724378/Latest/Congressman-Hodes-Introduces-Legislation-to-Help-Prevent-Senior-Identity-Theft.html Congressman Paul Hodes announced that he has introduced legislation that would help protect seniors from becoming the victims of identity theft. H.R. 6399, the Medicare Card Security Act, would prohibit displaying Social Security Numbers on seniors’ Medicare cards. Over eight million Americans were the victims of identity theft costing the US economy over 15 billion dollars. The Social Security Administration insists on its website that citizens should not “routinely carry your Social Security card or other documents that display your number” in order to prevent identity theft. But, Medicare issues cards to over 44 million Americans clearly displaying the beneficiary’s Social Security Number. According to a General Accounting Office Report released last year and despite Congressional instructions to accelerate ongoing plans to convert the beneficiary identifiers, the Centers for Medicare and Medicaid Services do not plan to remove the Social Security Number from Medicare identification cards. “Millions of American seniors enroll in Medicare to gain access to vital health care services. Enrolling in Medicare should not leave our parents and grandparents vulnerable to the crime of identity theft that could endanger their retirement,” Congressman Paul Hodes said. “This legislation will help prevent our seniors from becoming the next victim.” Nearly 200,000 New Hampshire seniors are eligible for Medicare and 606 New Hampshire residents were the victims of identity theft in 2006. Seniors on average make up 20% of victims of identity theft.