Posts Tagged ‘Identity Theft’

There are two pieces of news to report in terms of various consumer data protection acts at the state and national levels.

This month, President Bush signed into law a bill that will make it easier for prosecutors to go after cybercriminals, and for identity theft victims to be compensated. The Identity Theft Enforcement and Restitution Act of 2008 [HR 5938], which passed the Senate in July, would remove the $5000 damages floor that was previously required for prosecutors to charge individuals under the federal cybercrime laws.

Identity Theft Enforcement and Restitution Act (HR 5938) would:

• Give identity theft victims the ability to seek restitution
• Ensure cyber criminals posing as businesses can be prosecuted
• Make it a felony to employ spyware or keyloggers that damage 10+ computers
• Extend cybercrime definitions to include cyberextortion cases
• Allow prosecution when cybercriminal and victim live in the same state

In other legislative news, the Massachusetts Office of Consumer Affairs and Business Regulation has released a new set of rules requiring companies to encrypt personal data on laptops and monitor employee access to data. These new rules apply to credit card information and Social Security Numbers. Companies and government agencies are required to comply with the new regulations by January 1, 2009.

In August, Governor Patrick signed an identity theft prevention law that requires the reporting of data breaches to the Office of Consumer Affairs and Business Regulation. Since then, 320 breaches have been reported, affecting 625,365 Massachusetts residents. A report outlining the incidents has been released here [PDF].

Via i’ve been mugged, 2, boston globe, washington post ; Image: clip art

Children are increasingly becoming the targets of identity theft. Although the problem is not new, it is possible the issue is more common than was previously realized.

Children become targets by identity thieves for a number of reasons: the stolen Social Security Number can become associated with crimes, lines of credit, or for work purposes. Most people do not consider that their children are at risk for these crimes, so many go undetected for long periods of time. From 2005 – 2007, more than 34,000 reports of identity theft involving minors under age 18 were reported to the Federal Trade Commission.

With adults, identity fraud can usually be detected more quickly. Children, however, are not attempting to apply for loans or credit cards, and so don’t have that trigger situation to highlight the issues. Sadly, in about 50% of cases, the thief is someone known to the child.

Randy Waldron Jr., now 27, has spent the last 10 years trying to clean up his reputation after his father abused his Social Security Number to run up millions of dollars in debt.

Some tips to protect your child’s identity include:

• Shred all papers that contain Social Security Numbers
• Store Social Security cards in a safe place – don’t carry it
• Investigate if your child receives pre-approved credit applications
• Ask for a credit report for your child – there shouldn’t be one yet for minors, so if there is, it may be problematic
• Be wary when providing documentation to anyone that could be used for fraud

Via AP, AP ; Image: Microsoft Office Clipart / iStockphoto.com

The Federal Trade Commission (FTC) is warning victims of Hurricane Ike and Gustav, and donors to the recovery, to beware of identity theft scams.

The FTC works to prevent fraudulent, deceptive and unfair business practices, and to educate consumers about these practices. One such warning involves being extra cautious in the wake of current events, particularly those that pull at your heart strings. Many people will take advantage of natural disasters like Ike and Gustav to create bogus fund-raising operations.

The FTC advises consumers to give to charities that have been around for some time, as they are best prepared to delivery assistance, and to ensure (among other things) that you are donating to the charity you intended to. They recommend a checklist of things to do to prevent becoming a victim of fraud.

In addition to charity fraud, victims of Hurricane Ike and Gustav are cautioned against becoming victims of home repair fraud. They recommend taking the time to check the references of your contractors and to be responsible with your payment process. The FTC reminds consumers not to sign an insurance check over to a contractor.

In order to get relief benefits or replacement documents, victims of the hurricanes will need to share personal information. Be cautious of scams of people claiming to be government officials - check their IDs and know that the government never charges application fees.

Here are some resources from the FTC:

• FTC Charity Checklist – to ensure your donation dollars benefit the people and organizations you want to help
• FTC Hurricane Recovery Resources (Charity Fraud, Home Repair Fraud, Identity Protection)
• Hurricane Recovery Consumer Information – more information about a slew of scams to beware of

Via MarketWatch ; Image: NASA by Jesse Allen

Identity Theft 911 has published a white paper about Identity Theft in California [PDF]. The white paper examines identity theft within the state and what steps are being taken by the government officials and businesses to combat the issue.

In 2007, California was ranked as the second-worst state in terms of identity theft complaints per capita, according to Federal Trade Commission (FTC) data. From 2002-2006, it held the third position on this list, so it’s clear that identity theft is a growing and persistent issue in California.

“Each year, more and more consumers fall victim to various forms of this insidious crime. This report puts a spotlight on California, highlighting several issues that are likely responsible for driving up these numbers in the state,” said Judd Rousseau, Chief Fraud Officer of Identity Theft 911.

According to the FTC, 1.5 million Californians were victims of identity theft in 2007 (out of a population of 36.5 million). The most common forms of identity theft were credit card fraud and employment-related fraud. The incidents of 2007 cost an estimated $749 million in out-of-pocket expenses for victims (and 6 million hours in resolution time). That’s an astronomical figure.

California has been responding to the issues of identity theft at the government level. New legislation has been passed, including breach notification laws, prohibitions for the public display of Social Security Numbers, and restrictions on the sharing / selling of personally identifiable information. The white paper outlines various other types of legislation that might mitigate the identity theft issue in California.

Via press release