SEPTEMBER 2010
Inside This Issue . . . THEY’RE TARGETING
YOUR KIDS
JENNIFER ANISTON’S BAD HAIR DAY
WEB CRAMMING WOES YOU’LL ‘DISLIKE’
NEW FACEBOOK SCAM
THIS MONTH IN PROTECT
There is a theme running through all the stories in this monthʼs edition of the PROTECT enewsletter. Whether it is a trucker tricked into giving a stranger his driverʼs license or a small businessman billed for internet services he never ordered or parents failing to secure their childʼs Social Security number or Jennifer Aniston having her credit card number ripped off, identity thieves are counting on their victims to let their guard down. To trust when they should verify. To not check phone bills and bank statements and credit reports. Theyʼre betting you wonʼt take the basic precautions to protect yourself. Until it is too late.
WHEELS COME OFF FOR TRUCKER UNDERSTANDING YOUR CREDIT REPORT
PROTECT can be part of the solution. PROTECT is a monthly newsletter to help you avoid becoming one of the 11 million Americans already been victimized by identity theft. Each issue explains the latest crimes and scams and, most importantly, tell you how to protect yourself and loved ones. PROTECT is brought to you by the people who operate I.D. SHIELD 360, a leading service that helps shield you from the criminals determined to steal your most important possession – your identity.
DON’T TRUST WHEN YOU CAN VERIFY
THEY’RE TARGETING YOUR
KIDS
The age of innocence is over. Children are an excellent target for identity theft, since their credit records are spotless, they do not make use of their credit, and no one may notice the theft for years. More than half a million children a year are victims.
There are two ways to prevent most child identity theft. One is to protect their Social Security number. This is the number most asked for by the government for tax purposes, for doctors and hospitals, for banks and businesses, and for schools, daycare centers and sports teams. As a result, it is the most open to attack of all childrenʼs documents. Recommended safeguards include keeping the Social Security card and other important documents, such as the birth certificate, locked in a safe place. Further, when a medical provider, bank or institution asks for the Social Security number, always ask why. It is your right to refuse to provide it unless the reason is sound. Do not give the number to your child before they need it. Be skeptical of any telephone call or website that asks for the number. And never, ever,
put it online for any purpose. Finally, check your childʼs credit reports frequently and ask for a Social Security earnings record. The latter can alert you as to whether someone is using the number to apply illegally for a job.
The second key to preventing child identity theft is to monitor their computer use. There are predators out there who threatening both safety and identity. To combat this, talk to your kids and educate them to keep personal information private when they are online. Children should not use their real name in an email account or give too much detail on social networking sites. You can help them. Check out the sites your kids visit, see what kinds of information they are being asked for, be selective about what websites they have permission to see, and become familiar with your rights to control or delete your childʼs personal data under the Childrenʼs Online Privacy Protection Act (COPPA). This legislation, enforced by the FTC, gives parents control over what information websites can collect from their kids. All websites for kids under 13, or any general site that collects information from kids, are required to comply. Finally, report any website that you believe has wrongly collected or disclosed information from your kids.
JENNIFER ANISTON’S BAD HAIR DAY
A beautician to the stars has been arrested for ripping off her celebrity clients with an old-fashion credit card scam.
The client list includes Jennifer Aniston, Liv Tyler, Anne Hathaway, Cher, and Melanie Griffith. The salon owner, Maria Gabriella Perez of Chez Gabriela Studio, is charged with taking credit card information from clients, reentering the information manually after they leave the salon, and ringing up hundreds of thousands of dollars in bogus extra charges. Specifically, Perez is accused of “fraudulently [charging] approximately $280,000 worth of charges in a one year period.”
The biggest victim appears to be Liv Tyler, whose Amex cards showed overcharges of more than $200,000 dollars over a five month period. Another alleged victim was jewelry designer Loree Rodkin, whose attorney told investigators that $68,000 had been charged without authorization to her credit card from Perez's studio. Similar unauthorized charges are said to have showed up on the cards of Aniston, Hathaway, Griffith and Cher. It is speculated that Perez believed the stars would not check bills, balance checkbooks or notice small price add-ons. The U.S. Secret Service made the arrest on fraud charges. Perez opened her salon in 1986. The self-proclaimed “temple of beauty” is a frequent stop for a number of youth-seeking Hollywood types, including several not named in the court filing, such as Penelope Cruz, Brad Pitt, Halle Berry, Angelina Jolie and Val Kilmer. Indeed, Cheri has a testimonial on the studio website: “Gabriela is my favorite ass-kicking facialist, she is the Michelangelo of skin care!” Aniston appeared on Good Morning America to talk about the problem. "We had a situation that was not cool so I just stopped going to her,” the star said. “I knew something like this would eventually happen because there's no way you can get away with that. It's terrible.”
HEAR JENNIFER ANISTON ON GOOD MORNING AMERICA
YOUʼLL
DISLIKE
THE NEW FACEBOOK SCAM
Facebook scams just keep on coming. The latest is a rogue “Dislike” button feature that lures users to give away personal information to identity thieves. Facebook is now warning its members to avoid this button. The scam, like previous ones that promise users certain content for clicking on a link, tricks members into giving away permission to access their profile pages. Playing off the official “Like” button legitimately in place on Facebook, the scammers create a fake “Dislike” button that looks quite real. Phony posts invite friends to click on it, giving the symbol the aura that it is coming from a trusted source.
Once it is clicked on, a link then sends people to an application that does not download a “Dislike” button. Instead, it requires the completion of an online survey in order to eventually proceed to the “Dislike” button. All the while, it silently reads your profile and updates your Facebook status to promote the link that tricked you in the first place, thus spreading the message virally to your Facebook friends and online contacts.
Experts note that the “Dislike” button is just one the growing number of scams on Facebook that are piggybacking on fleeting pop culture obsessions. They say that Facebook users should:
• Think very carefully before they click on an unknown link. • Do not be lured in by unknown links on a friendʼs status update, as these scams are becoming increasingly common. • It is especially risky to provide personal information in a survey or allow an application to access your profile. • Use the beefed up Facebook reporting system by using the “flag” button to report any content suspected to be spam or having the potential to compromise a user's account.
PASSPORT TO TROUBLE
Passports have long been a common form of identity theft. In the wrong hands, they enable fake identification and travel. Lose control of your passport and you may as well say goodbye to your whole identity.
This is particularly troubling today; stolen passports can be used for acts of terrorism as well as for more common crimes such as illegal entry, money laundering and narcotics trafficking. Minor alterations to the picture, name and description in a passport makes it appear as if it belong to the identity thief. Some basic tips for softening the blow of a lost or stolen passport: travel with copies of major documents, like birth certificate and marriage certificate, as well as the passport; keep copies separate from the originals; know the phone numbers and addresses of the U.S. embassy or consulate for the relevant countries. If your passport is lost or stolen, report it promptly to the State Department. Two new forms of digital passports add a technological twist to the risk of passport theft. One is the U.S. Passport Card, a relatively simple card that is good for travel within North America. More than a million Americans have been issued these cards. They contain RFID microchips which transmit a signal so your movement across borders can be automatically recorded. A second digital security document, the Biometric Passport or U.S. Electronic Passport, is also becoming commonplace. These are true international travel passports and replace old-style passports as they expire. The Biometric Passports store lots more data on the chips, including facial or iris recognition, fingerprints, digital photos, personal data, and more. As you go through passport control, those features are electronically checked. No sooner have these new digital passports been implemented than reports are surfacing that the microchips on the devices can be read by scanners from 20 or 30 feet away. Many security experts argue that the system, though encrypted, is not secure enough and is susceptible to identity theft. Others say the system is safe. But in a telling YouTube clip, an ethical hacker can be seen driving around San Francisco, reading off the numbers of people始s digital passports inside purses and pockets, and transferring them to the laptop computer in his car. Expert advice for protecting yourself: keep the digital passports in their sleeve since they cannot be read in that circumstance. And, of course, the same safety rules as in the old days for making sure these items do not fall into the wrong hands.
WATCH A VIDEO ABOUT DIGITAL PASSPORT THEFT
TRUE STORIES WHEELS COME OFF Trucker Earl Robert Hood didnʼt know his identity had been stolen until his commercial driver's license was pulled for several DUIs that he did not commit. Then the slippery slope started: he lost his job and his marriage ended in divorce. Prosecutors say that Danny Arnold Rodgers stole Hood's identity, went on a drunken spree in Wyoming, South Dakota and Nebraska, and then identified himself as Hood to the police. Hood said he met Rodgers at a truck stop in Florida, who approached him, claimed to own a small trucking company, and offered him a job driving a rig for more pay and better hours. He took copies of Hoodʼs commercial driver's license and U.S. Department of Transportation medical card. “I never dreamed in a million years that the guy would take my information and do something like this,” said Hood. MAILBOX MADNESS A stakeout at a Malibu shopping center led to the arrest of previously convicted identity thief, Phillip Macksoud. His wife Dawn escaped after trying to hit an officer with her car. The couple had spent between $10,000 and $20,000 using credit cars opened in the names of people in the Los Angeles area. Focusing on an area with lots of wealthy people and easy to access mailboxes, the crooks began forwarding the victimʼs mail to a PO Box in a nearby town. The box was rented with a fake identification card with Macksoudʼs picture. “At that point it was clearly evident that this was a case of identity theft,” said Detective Michael Rosenberger. “They had been using peopleʼs names and information to order items either online or over the phone and have them shipped to [the PO Box]. Then they came and picked them up.” Rosenberger said that “easily accessible mailboxes are the genesis of the crime.”
CASHING IN
The employee of a company that provides consumers with cash loans is facing two charges of identity theft from using client information to obtain loans for himself. Randall Parker allegedly admitted to using Social Security numbers and date of birth information obtained as a Check ʻN Go employee to apply for various loans. The victims did not discover there were loans in their names until contacted by the lenders for missing a payment. The local Police Department captain handling the case commented that the best way to prevent this kind of incident is to watch your accounts closely. “Keep an eye on your credit report,” he said. “Make sure you check it periodically … for any charges or accounts you didnʼt open up.”
GIVING BIRTH TO FRAUD
Dr. Lisa Barden, a Southern California obstetrician and mother, has been arrested on 276 felony charges of identity theft, forgery, possession of controlled substances and burglary. She's an admitted painkiller addict. To facilitate her Vicodin habit, she delivered babies and then stole the identities of the new mothers. She used the identities to obtain prescription painkillers at 43 different pharmacies across the Coachella Valley. Barden's scheme ended with an arrest outside a Palm Springs hospital where she's delivered hundreds of babies. "It's fraud. She's lied. She's cheated," said Riverside County Deputy District Attorney Jeanne Roy. Barden has agreed to plead guilty to the narcotics-related charges against her. She says she would like to practice medicine again but would look for a job that would not require her to write prescriptions for narcotics.
BEAUTY QUEEN BOOKED
A former Hawaiian beauty queen, with a husband and young children, has been accused of stealing the identities of more than 11 people and leading a double life in Southern California. Susan Shaw was indicted by a Hawaii grand jury on more than one hundred counts. The former Miss Hawaii International allegedly stole hundreds of credit cards and fraudu-
lently obtained credit reports, gift cards and other documents which were found inside a rental home. Manhattan Beach police Detective Joe Aiello said the reports and documents included Social Security numbers, addresses and birthdays of victims and potential victims. Shaw is accused of stealing some $160,000. She was especially hard to track down because she used public internet locations such as Starbucks.
SIDE ORDER OF THEFT
The owner of a restaurant in San Antonio TX received a police escort after evading authorities for months. Andrew Paparella, 36, was booked on 20 counts associated with identity theft. Police accuse him of obtaining credit card numbers from customers of his now defunct French bistro and using them to buy electronics and sports equipment and then re-selling them on eBay. Paparella fled knowing police were investigating him for "thousands and thousands" of dollars of fraudulent purchases made with stolen credit card numbers.
BURYING THE EVIDENCE
It is being called the most high-profile case of medical identity theft in Canadian history. A man admitted himself into a local hospital under a false identity — giving the nurses a false name, address, and health insurance card. His case took a turn for the worse, and he died and was buried under the false identity. Fast forward a year: a man is stopped for a traffic violation and it turns out that he is a victim of the identity theft and considered officially dead. Albertaʼs privacy commissioner has announced an investigation into the case, and police are trying to determine the dead manʼs identity. Thus far, they only know that the corpse was known in life as “Golo,” a Chinese nickname for tall guy. The investigation is examining “what steps are reasonable to take to ensure health information is accurate and complete before it is used by a health services provider.”
UNDERSTANDING YOUR
Your credit report, and knowing what is in it, is vital to your economic health. You need a clean report to apply for a mortgage on a house, to buy a car, or to finance any big ticket item. You need to know how the reports work so that you can work to improve your credit scores.
You need to monitor it for errors and discrepancies, which happen
often, and to make sure no one has stolen your identity is running up debts in your name. Since credit reports are updated all the time, it始s also good to check your credit report regularly with the three credit
bureaus, Equifax, Trans Union and Experian; some say at least once a year while many experts recommend a quarterly review.
Because understanding your credit report is so important, we have planned a series to explore indepth whatʼs in your report, how mistakes are made and corrected, how credit scores work, how you can improve your scores, and more.
This first feature in our planned series looks at the basics of whatʼs in your credit report. Whilte each agency formats and reports credit reports differently, all share some basics. IDENTIFICATION. Name, address, birth date, employer and Social Security number are all there to identify you. These are not used in the credit score. ACCOUNTS. Lenders report on each account you have established with them. These reports include the type of account such as credit card, auto loan and mortgage, the date the account is opened, your credit limit or amount of the loan, the account balance, and your payment history.
INQUIRIES. When you apply for a loan, lenders ask directly for a copy of your credit report. These inquiries are listed, so you can see everyone who has accessed it in the past two years. Some are voluntary, the ones you authorized, and some are involuntary, such as lenders who order your report before making preapproved credit offers.
COLLECTIONS. Credit agencies collect public record information about you from state and county courts, and from collection agencies about overdue debt. This data includes bankruptcies, foreclosures, suits, wages garnishments, liens and judgements.
THIEVES CLEAN UP WITH
CHECK WASHING
Check washing takes place to the tune of $815 million every year in the U.S. alone. And it is increasing at an alarming rate. The process turns every check into a blank check by “washing ”already written checks with a chemical solvent, and rewriting it so the criminal can reuse it. Sometimes the entire check is rewritten. Often, only the recipientʼs name is changed, so all you see on your bank statement is that the check went through for the right amount. It may take months for the companies you owed to notify you. The damage adds up fast. There are a few simple tips to protect yourself from this scam. First, make sure your mail is as secure as possible: drop it off at the post office or a USPS mailbox. You cannot control check theft completely, but you can do your best. Second, change the pen you use. Standard ballpoint pens are the easiest to wash, with felt tip and roller-ball pens close behind. Many tests have shown that gel pens are the hardest to wash off and some companies are starting to market special inks which adhere to the paper. You may also seek out permanent markers with tips fine enough for check writing. Third, many checks are now printed on chemically sensitive paper that will discolor when chemicals are used on them. Ask your bank if they have checks printed on this paper.
Finally, consider online bill paying. You can save time, avoid the problems of check washing — and a whole range of other check-related threats —by ditching the checkbook and paying your bills online. Most billers now let you make payment online through their website and most banks now provide a sophisticated online bill pay option. There are also third-party services, many of whom collect bills for you and send email alerts when payments are due. Weʼll explore the advantages of online bill pay in the next edition of PROTECT. For now, just know that these options are exist and are an increasingly secure way to avoid oldfashioned check writing.
WEB CRAMMING WOES A long-running scam, web cramming, is now emerging as a national problem. The FTC has placed web cramming on the list of fastest growing scams, and is beginning to act aggressively against it.
This deception starts with a telephone call to a small business owner. The caller offers one of two things: a free trial of internet services for 30 days or a customized website for 30 days free of charge. Sometimes victims are told they will be automatically billed after the 30 days is up. Sometimes they reject the proposal but are billed anyway. Most times victims are told they won't be billed unless they specifically authorize the continuation of the service. Whatever they are told, the billing begins automatically month-in-and-monthout. And, to add insult to injury, the websites that are constructed are usually poorly executed, filled with typos, and essentially useless to the business.
These scammers are violating the FTC Act on many levels: by billing consumers without their consent; by by failing to disclose adequately that consumers must cancel the services before the end of the free trial; and by failing to explain to consumers how to cancel the trial service or otherwise avoid the charges. The FTC offers some suggestions to help protect small businesses from internet service scams and other unordered services:
Know your rights. If you receive bills for services you did not order, do not pay. The law allows you to treat unordered services as a gift.
Review your phone bills as soon as they arrive. Be on the lookout for charges for services you have not ordered or authorized. If you find an error on your bill, follow the instructions on your statement. Assign purchasing to designated staff and document all your purchases. Ask for documentation in writing if you purchase a web service, or any service, over the telephone.
Train your staff about this type of scam and how to deal with scammers on the telephone; designate one or two employees to do all the purchasing, and all others to say they are not authorized to make purchases.
Buy from people you know and trust. Be skeptical of cold calls and feel free to reject high pressure sales tactics.
SEE A FTC BUSINESS ALERT ABOUT WEBSITE WOES