Identity Theft Caused Online Brokerage Firms Millions
A new development in the evolving art of identity theft: scam artists can launder money by using your brokerage account to pump up stocks.
"A recent wave of identity theft attacks at online-brokerage houses hit the industry during what is traditionally its slowest period, sticking firms with millions of dollars in expenses and raising security concerns for their do-it-yourself investor clients. E*Trade Financial Corp. (ET) and TD Ameritrade Holding Corp. (AMTD) both disclosed during recent post-earnings conference calls that the latest quarter saw a pickup in the scams. For New York-based E*Trade, this meant an $18 million increase in losses due to fraud. Ameritrade, based in Omaha, Neb., booked $4 million in fraud-related expenses, which is higher than normal. The companies have fraud-protection guarantees, meaning they have to eat client losses. The crimes have caught the attention of regulators and law enforcement officials, the companies said. Securities and Exchange ..." Full StoryThe Worst States For Identity Theft
In this Federal Trade Commission study, Arizona was listed as the capital of identity theft. For full results, check out the interactive map provided by MSN Money.
"For the second year in a row, Arizona topped the Federal Trade Commission's list of states with the most identity-theft complaints, with 142.5 victims per 100,000 people in 2004. Nevada and California followed closely behind with 125.7 and 122.1 victims per 100,000 people, respectively. Because the FTC's Consumer Sentinel database relies on consumers to report the crimes, the number of actual victims is perhaps less interesting than the year-to-year trends. And those show the same states -- Arizona, Nevada and California -- ranking highly while others like North Dakota and South Dakota sit securely at the bottom." Full StoryIdentity Theft Statistics
According to the Federal Trade Commission, identity theft complaints are broken down as follows: - About 50% reported that a credit card was opened in their name - 25% reported that the thief established new telephone, cellular, or another service in their name - 16% reported that a bank account was opened in their name, or unauthorized withdrawals had been made from their account - 9% reported that the thief obtained a loan in their name - 8% reported that the thief obtained a fraudulent document such as a driver's license Full Story
What You Should Do If Your Identity Is Stolen
Follow the FTC advice and take action immediately.
"1. Contact the fraud departments of any one of the three consumer reporting companies to place a fraud alert on your credit report. The fraud alert tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too. Once you place the fraud alert in your file, you're entitled to order free copies of your credit reports, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. 2. Close the accounts that ..." Full StoryHow Does Email Phishing Work?
In a typical case, you'll receive an e-mail that appears to come from a reputable company that you recognize and do business with, such as your financial institution. In some cases, the e-mail may appear to come from a government agency, including one of the federal financial institution regulatory agencies. The e-mail will probably warn you of a serious problem that requires your immediate attention. It may use phrases, such as "Immediate attention required," or "Please contact us immediately about your account." The e-mail will then encourage you to click on a button to go to the institution's Web site. In a phishing scam, you could be redirected to a phony Web site that may look exactly like the real thing. Sometimes, in fact, it ... Full Story
How To Protect Yourself Against Phishing?
1. Never provide your personal information in response to an unsolicited request, whether it is over the phone or over the Internet. E-mails and Internet pages created by phishers may look exactly like the real thing. They may even have a fake padlock icon that ordinarily is used to denote a secure site. If you did not initiate the communication, you should not provide any information. 2. If you believe the contact may be legitimate, contact the financial institution yourself. You can find phone numbers and Web sites 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. The key is that you should be the one to initiate the ... Full Story
How To Place A Fraud Alert On Your Credit Reports
Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too. Equifax: 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374- 0241 Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013 TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790 Once you place the fraud alert in your file, you're entitled to order free copies of ... Full Story
What Are Fraud Alerts?
There are two types of fraud alerts: an initial alert, and an extended alert. An initial alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you've been taken in by a "phishing" scam. When you place an initial fraud alert on your credit report, you're entitled to one free credit report from each of the three nationwide consumer reporting companies. An extended alert stays on your credit report for seven years. You can have an extended alert placed on your ... Full Story
Biggest Source of Identity Theft
The Commerce Department is a leading contender of the biggest source of identity theft -- it lost 1,137 laptops in the last five years.
"The Commerce Department has lost 1,137 laptop computers since 2001, most of them assigned to the Census Bureau, officials said Thursday night. The Census Bureau, the main collector of information about Americans, lost 672 computers. Of those, 246 contained some personal data, the department said in a statement. However, no personal information from any of the missing computers has been known to have been improperly used, the department said. The number of people affected by the equipment losses could not be determined, the department said. "All of the equipment that was lost or stolen contained protections to prevent a breach of personal information," said Commerce Secretary Carlos M. Gutierrez. "The amount of missing computers is high, but fortunately, the vulnerability for data misuse is low ..." Full StoryIdentity Theft Task Force Suggests Less Use Of Social Security Numbers
This is the right move ... I still remember when Cigna was the health insurance provider of my employer. Cigna printed everyone's social security number in the insurance card! I'm glad we later switched to an insurer who has more privacy awareness.
"Federal agencies should restrict the use of Social Security numbers to guard against identity theft, a presidential commission said. The Identity Theft Task Force also urges greater penalties against identity thieves and creation of a "universal police report" to help track complaints. ... Under the plan, the task force urges the government to review the use of Social Security numbers as employee identification and determine ways it can conceal or eliminate their use in agency systems and paper and electronic forms. The plan calls on Congress to amend criminal laws so identity-theft victims can recover for their hours lost disputing fraudulent accounts with creditors or correcting credit reports." Full StoryCredit Card Number Breach At Nikon
Nikon is not the first major company that suffers security breach, and certainly will not be the last.
"Nikon Inc. warned subscribers to its Nikon World magazine to cancel their credit cards after the company learned sensitive consumer information had been exposed on the subscription sign-up page of the magazine's Web site. In a statement, Nikon said personal information of Nikon World subscribers was disclosed on Tuesday over a nine-hour period through the magazine's online-subscription Web site. Nine new subscribers were able to access the personal information of 3,235 subscribers who had signed up since January 1, 2006, the company said. Nikon blamed the security breach on an outside vendor's system failure. "At present, we are in the process of notifying all those customers who may have been affected to make certain they are aware of the situation, take action to protect themselves ..." Full StoryTips To Protect Yourself Against "Pretexting"
You will probably be of less risk than the unfortunate board member at HP when it comes to be a victim of pretexting, but the following tips may still be valuable to you.
"Frank recommends that you contact your phone companies, banks and any other businesses where you have accounts, and do five things: -- Change your passwords so that they are at least 8 to 10 characters long, combining letters and numbers. Be sure, too, to change your passwords every six to eight months -- Insist the company never use your Social Security number for verification of your identity and instead use a randomly assigned number. -- Ask the company to use three to four pieces of information to verify your identity, especially if it continues to use the last four digits of your Social Security number. For example, have them ask you specific questions as part of the verification process the answers to which are not ..." Full StoryHow To Avoid ID Theft On Campus
17 quick tips that you may want to send to your college-age kids as a reminder.
"1. Guard your mail. 2. Use U.S. Postal mailbox for outgoing mail. 3. Opt out of preapproved credit card offers. 4. Deep-six the junk mail. 5. Limit number of credit or debit cards 6. Find a safe place for valuables. 7. Keep financial papers private. 8. Act quickly. 9. If SSN is student ID number, request a change. 10. Get your credit report regularly. 11. When you're out, keep your purse or wallet close. 12. Safeguard your computer. 13. Be cautious with public computers. 14. Be smart about sharing personal info on the Web. 15. Look for security when you buy online. 16. Beware of phishing scams. 17. Protect your PIN. " Full Story5 Ways to Monitor Your Credit Reports
Bankrate is recommending we consciously monitor our credit reports so we have a lesser chance to be victimized by identity theft. Probably before very soon, everyone of us has to pay a monthly due to credit reporting agencies to have the comfort of mind.
"Identity theft can cost you thousands of dollars if it goes unnoticed, not to mention dozens of hours cleaning up your credit report and clearing debts owed. To save time and money, it makes good sense to guard -- or at least watch -- your credit reports. That said, protections come in several flavors. Some won't do much, other than alert you to unusual activities on your credit report. Others will prevent anyone from accessing your credit report, including other credit bureaus. It all depends on how much you care about convenience versus safety. Each preventative measure carries its own set of benefits and caveats, so to help you decide, we highlighted the key differences between credit freezes, fraud alerts and various types of credit ..." Full StoryHow To Protect Yourself Against "Pretexting"
It might be very hard to stop pretexting since smart con artists can always woo not-so-smart CSRs. For consumers, it is therefore very important that we move our business to privacy-conscious companies.
For me, I am now moving away from the practice to shop at the lowest-price online store to save a few bucks. I have better confidence level for Amazon, and I don't mind to pay a few bucks more for the peace of mind.
"The best way to prevent someone from viewing account information without permission is to do business with companies with strong privacy protections in place. Where once all that was needed was a Social Security number or account number to access personal information by phone or online, many companies now require additional information." Full StoryAOL Customers To Get Insurance Coverage For Identity Theft
In a bid to improve customer confidence and differentiate its flagship subscription service, AOL is giving away free identity theft insurance coverage to its paying members. Will other ISPs follow suit?
"Free insurance coverage for identity theft and computer damage is among the premium security offerings AOL is making available to its dwindling base of paying subscribers. The move, which AOL said it would announce to its members Tuesday, follows last month's decision to give away AOL.com e-mail accounts, software and other features once reserved for paying subscribers and remove key reasons for millions of customers to keep paid accounts. The insurance, offered through American International Group Inc. (AIG), pledges up to $10,000 to help restore users' identity and credit regardless of how their Social Security number, bank account or other personal information got compromised. The policy covers costs for refiling rejected loan applications, legal fees, credit reports and up to $2,000 in lost wages. A ..." Full StoryWhat Is "Pretexting?"
With the HP board drama, almost everyone learned the new word "pretexting." Here is how con artists use pretexting to get assess to your identity.
"Pretexting is the practice of getting your personal information under false pretenses. Pretexters sell your information to people who may use it to get credit in your name, steal your assets, or to investigate or sue you. Pretexting is against the law. Pretexters use a variety of tactics to get your personal information. For example, a pretexter may call, claim he's from a survey firm, and ask you a few questions. When the pretexter has the information he wants, he uses it to call your financial institution. He pretends to be you or someone with authorized access to your account. He might claim that he's forgotten his checkbook and needs information about his account. In this way, the pretexter may be able to obtain personal ..." Full StoryHow Can My Identity Be Stolen
Con artists have more than one ways to steal your identity, so be careful!
"Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods to gain access to your data. They get information from businesses or other institutions by: • stealing records or information while they're on the job • bribing an employee who has access to these records • hacking these records • conning information out of employees • They may steal your mail, including bank and credit card statements, credit card offers, new checks, and tax information. • They may rummage through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving." • They may get your credit reports by abusing their employer's ..." Full StoryWhat Is The Impact Of Identity Theft?
Identity thiefs can monetize stolen identity in many ways and really destory a good part of your life.
"Once identity thieves have your personal information, they use it in a variety of ways. • They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem. • They may open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts are reported on your credit report. • They may establish phone or wireless service in your name. • They may open a bank account in your name and write bad checks on that account. • They may ..." Full StorySponsors
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