Please view this video to learn how Criminal Identity Theft can happen to ANYONE, ANYTIME!
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Staying safe while you’re shopping online is paramount. Here are five tips for shopping safely online:
- Choose Credit Over Debit: You probably don’t often hear advice to use a credit card instead of a debit card or cash, but if you can do it responsibly, you absolutely should. Credit cards offer protection from identity theft that debit cards don’t. For example, with a credit card, your liability for fraudulent charges caps at $50 as long as you report the fraud within 30 or 60 days (depending on the company). However, if you’re using your debit card online and someone gains access to it, they can clean out your checking account before you even learn there’s a problem. It’s likely you’ll get part of that money back, but possible that it can take a while, and that you won’t get it all. So, use a credit card instead and pay the bill off monthly.
- Disposable Is Better: Even better than using a credit card is to use a disposable credit card. Disposable credit cards work just like most gift cards. You add a specified dollar amount to the card, and it’s good until that is gone. Once it’s gone, you can add more, or purchase a new one. And both Visa and American Express now offer these cards in varying amounts, so they’re easy to get hold of. The bonus is that if the number from a disposable credit card is stolen, it’s anonymous, and criminals can’t gain access to anything more than the dollar amount that’s still available on the card.
- Verify Website Security: The variety that’s available when shopping online can be dizzying, but it doesn’t stop at just the products and prices that are available online. There are also different levels of security that are available online, and you want to be aware of them. Some online web sites don’t offer secure shopping. That means that savvy criminals can capture everything that you enter onto a form on those sites, including your personal and credit information. If you’re going to shop online, limit yourself to secure sites. You can tell if a site is secure by the URL. A secure web site starts with HTTPS:// instead of HTTP://. Secure sites will also have a small lock icon in the lower right corner of the screen.
- Don’t Shop Publically: If you plan to do any shopping online, do it at home. At home, you can shop in your pajamas (or nekkid) and you can do it any time of the day or night. You also know who accesses your computer at home. If you’re using a public computer—at the library, at a cyber café, or at work—to do your shopping, you have no control over who might be using that computer as well. You also don’t have any control over what kind of spyware or malware might be infecting that computer. So, just don’t do it. Shop at home. It’s much safer.
- Don’t Store Information Elsewhere: Many shopping sites, even the major ones, offer you the ability to save your credit card information on their servers to speed the shopping process. Think Amazon.com’s OneClick shopping. It’s definitely faster, but there are some risks to maintaining your personal information elsewhere. If a company that you’re shopping with has a data breach, your personal information could be put at risk. It takes a little longer, but instead of storing your information on some server that you have no control over, just enter it yourself each time you shop.
Several federal laws protect victims of identity theft. These laws have to do with documenting the theft; dealing with credit reporting companies; dealing with creditors, debt collectors, and merchants; and limiting your financial losses caused by the theft of your identity. Here is a brief summary of the rights of identity theft victims, with links to websites that provide more information.
Documenting the Theft
You have the right to:
- File a report with a law enforcement agency and ask for a copy of it to show how your identity has been misused. This report is often called a police report.
An identity theft report is a second kind of report. It is a police report with more detail. To be an identity theft report, it should have enough information about the crime that the credit reporting companies and the businesses involved can verify that you’re a victim, and know which accounts or information have been affected. It’s the report that will give you access to many of the rights described here.
The FTC’s ID theft complaint form is a good place to start documenting the theft of your identity. This form asks you for the kind of detail that the identity theft report requires. Once you fill out this form online and print it, you can use it with the police report to create your identity theft report.
Dealing with Credit Reporting Companies
You have the right to:
- Place a 90-day initial fraud alert on your credit files. You would do this if you think you are — or may become — the victim of identity theft. A fraud alert tells users of your credit report that they must take reasonable steps to verify who is applying for credit in your name. To place a 90-day fraud alert, contact just one of the three nationwide credit reporting companies. The one you contact has to notify the other two.
- Place a seven-year extended fraud alert on your credit files. You would do this if you know you are a victim of identity theft. You will need to give an identity theft report to each of the credit reporting companies. Each credit reporting company will ask you to give them some way for potential creditors to reach you, like a phone number. They will place this contact information on the extended fraud alert as a signal to those who use your credit report that they must contact you before they can issue credit in your name.
- Get one free copy of your credit report and a summary of your rights from each credit reporting company. You can get these when you place a 90-day initial fraud alert on your credit reports. When you place an extended fraud alert with any credit reporting company, you have the right to two copies of that credit report during a 12-month period. These credit reports are in addition to the free credit report that all consumers are entitled to each year.
- Ask the credit reporting companies to block fraudulent information from appearing on your credit report. To do this, you must submit a copy of a valid identity theft report. The credit reporting companies then must tell any creditors who gave them fraudulent information that it resulted from identity theft. The creditors may not then turn the fraudulent debts over to debt collectors.
- Dispute fraudulent or inaccurate information on your credit report with a credit reporting company. The credit reporting company must investigate your charges, and fix your report if they find that the information is fraudulent.
In many states, you have the right to restrict access to your credit report through a credit freeze. A credit freeze makes it more difficult for an identity thief to open a new account in your name. Your state attorney general’s office has information about using a credit freeze where you live.
Dealing with Creditors, Debt Collectors, and Merchants
You have the right to:
- Have a credit report free of fraudulent accounts. Once you give creditors and debt collectors a copy of a valid identity theft report, they may not report fraudulent accounts to the credit reporting companies.
- Get copies of documents related to the theft of your identity — for example, applications used to open new accounts or transaction records — if you give the company a valid police report. You also can tell the company to give the documents to a specific law enforcement agency; that agency doesn’t have to get a subpoena for the records.
- Stop the collection of fraudulent debts. You may ask debt collectors to stop contacting you to collect on fraudulent debts. You also may ask them to give you information related to the debt, like the names of the creditors and the amounts of the debts.
In many states, you have the right to be notified by a business or organization that has lost or misplaced certain types of personal information. Contact your state attorney general’s office for more information.
Limiting Your Loss From Identity Theft
Various laws limit your liability for fraudulent debts caused by identity theft.
- Fraudulent Credit Card Charges: You cannot be held liable for more than $50 for fraudulent purchases made with your credit card, as long as you let the credit card company know within 60 days of when the credit card statement with the fraudulent charges was sent to you. Some credit card issuers say cardholders who are victims of fraudulent transactions on their accounts have no liability for them at all.
- Lost or Stolen ATM/Debit Card: If your ATM or debit card is lost or stolen, you may not be held liable for more than $50 for the misuse of your card, as long as you notify the bank or credit union within two business days after you realize the card is missing. If you do not report the loss of your card promptly, your liability may increase.
- Fraudulent Electronic Withdrawals: If fraudulent electronic withdrawals are made from your bank or credit union account, and your ATM or debit card has not been lost or stolen, you are not liable, as long as you notify the bank or credit union in writing of the error within 60 days of the date the bank or credit union account statement with the fraudulent withdrawals was sent to you.
- Fraudulent Checks: Under most state laws, you are liable for just a limited amount for fraudulent checks issued on your bank or credit union account, as long as you notify the bank or credit union promptly. Contact your state banking or consumer protection agency for more information.
- Fraudulent New Accounts: Under most state laws, you are not liable for any debt incurred on fraudulent accounts opened in your name and without your permission. Contact your state attorney general’s office for more information.
Other Federal Rights
Identity theft victims have other rights when the identity thief is being prosecuted in federal court. For example, under the Justice for All Act, the U.S. Department of Justice says identity theft victims have the right:
- to be reasonably protected from the accused;
- to reasonable, accurate, and timely notice of any public court proceeding, any parole proceeding involving the crime, or any release or escape of the accused;
- to not be excluded from any such public court proceeding unless the court determines that the identity theft victim’s testimony would be materially altered if he or she heard other testimony at that proceeding;
- to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding;
- to confer with the attorney for the government in the case;
- to full and timely restitution as provided in law;
- to proceedings free from unreasonable delay; and
- to be treated with fairness and with respect for his or her dignity and privacy.
Other State Rights
You may have additional rights under state laws. Contact your state attorney general’s office to learn more.
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.
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.
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.
The following are effective strategies to prevent identity theft during tax season:
- 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.
Identity theft continues to plague Americans at an estimated cost of over $50 billion annually. While lawmakers and businesses seek to implement safeguards and to better inform the public, one significant threat remains largely unaddressed: the data stored on hard drives inside of digital copiers. Digital Copier Security Inc. (DCSI), a California based company, uses forensic data recovery tools to prove that used copiers sold into domestic and foreign resale markets often contain highly sensitive data.
It’s time for consumers to stand up and say to credit card companies, “stop the madness”. Credit card companies are putting our identity at risk when they send pre-approved credit card applications to consumers without their permission. Credit card companies are putting our identity at risk when they don’t require all merchants, small, medium and large to install and maintain secure credit card verification and transmission systems. Credit card companies are putting our identity at risk when they intentionally take advantage of one of our most vulnerable population…college students. Paying colleges and universities to flood their campuses with credit card applications directed at students, knowing that those same students have little or no credit history. Credit card companies are putting our identity at risk when they send marketing materials or monthly statements to addresses that have not been verified. It’s time for consumers to say to credit card companies, “stop the madness”.
A new and ominous kind of fraud has surfaced - Jury Duty Scam. This has been verified by the FBI (their link is also included below). Please pass this on to everyone in your email address book. It is spreading fast so be prepared should you get this call.
The caller claims to be a jury coordinator. If you protest that you never received a summon for jury duty, the scammer asks you for your social security number and date of birth so he or she can verify the in formation and cancel the arrest warrant. Give out any of this information and bingo; your identity was just stolen.
The fraud has been reported so far in 11 states, including Oklahoma, Illinois and Colorado. This (swindle) is particularly insidious because they use intimidation over the phone to try to bully people into giving information by pretending they are with the court system. The FBI and the federal court system have issued nationwide alerts on their web sites, warning consumers about the fraud.
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