JULY 2010
THIS MONTH IN PROTECT
Inside This Issue . . .
Summertime and the living is easy. Or it should be. Unfortunately, identity thieves and fraudsters do not take a vacation. As you will see in this edition of the PROTECT newsletter, they are busy preying on Gulf Coast oil spill charities, posing as police officers to steal your identity, lifting your smart phone when youʼre not looking, overcharging on your house move, enticing students with fake loan offers, eyeing your vacation timeshare. No wonder more than 11 million Americans have already been touched by identity theft. So as the days turn warmer, enjoy — but remain alert, knowledgeable and proactive.
GIVING TO THE
ID THIEVES DON’T TAKE SUMMER VACATION
PROTECT can be part of the solution. It is brought to you by the people who operate I.D. SHIELD 360, a leading service that helps shields you from the criminals determined to steal your identity. Every month in our newsletter, youʼll find useful and authoritative ideas and information to protect your most important possession – your identity.
GULF COAST MOVE IT DON’T LOSE IT
IS YOUR SMARTPHONE TOO SMART? SUMMERTIME SCARES STUDENTS LEARN
THE HARD WAY GIRL SCOUT LEADER STRIKES
GIVING TO THE
In the face of any emergency, Americans reach for their checkbooks and donate money to aid and rescue organizations. The oil spill in the Gulf Coast is the greatest environmental disaster the country has known, and the urge to give is greater than ever. But the experts say that this event is not like a hurricane or earthquake, where donations are funneled to specific, focused, immediate disaster relief. Instead, as the mess plays out slowly and painfully, donors and volunteers are urged to consider the following:
1. First and foremost, as with all charitable giving, make sure the organization with which you are working is accredited, rather than an elaborately-named front. Demand documentation from any person or organization soliciting funds. Rely on expert opinion, such as the Better Business Bureau, when evaluating a charity.
2. Assuming the group is legitimate —most are — ask where your money is going. Find out how the organization plans to spend funds for Gulf relief and ecosystem recovery. In addition to shoreline rescue and protection, many charities are promoting needs assessment, litigation, economic relief, advocacy for new energy policies and research into long-term solutions. Is this where you intend your money to go? 3. Ask whether the organization will restrict your donation for use in its Gulf-related activities or intends to use it for general support of all its programs.
GULF COAST
4. Find out if the charity is doing Gulf-related work or simply raising funds for other relief organizations; you may want to “avoid the middleman” and giving directly to those performing the work.
5. Before donating, check whether the organization has enough experience to handle recovery-related tasks. New non-profits and relief organizations spring up during any major disaster. Often, new charities lack the resources and experience needed to be effective. Ideally, look for established organizations with environmental expertise or experience aiding Gulf communities. 6. Gulf clean-up volunteers require special skills or training. Learn what qualifications are necessary. If youʼre looking to get your hands dirty, youʼre out of luck unless youʼre certified to handle hazardous materials or to care for injured wildlife. Other volunteer options where you may be helpful are in shoreline monitoring, fund-raising, office work, food programs and providing transportation. The Gulf region will be suffering from the effects of the oil spill for years to come and, as the situation unfolds, there will be more opportunities for donors to step in and help in the future. Keep checking to see what you can do and when it may be the right time to dive in.
BBB WISE GIVING ALLIANCE LIST OF OIL SPILL CLEAN UP ORGANIZATIONS
IS YOUR SMART PHONE TOO SMART?
With a smart phone, a few taps or clicks can access email accounts, check bank balances, update a Facebook profile, and call up calendars and photos. In the case of the luckless Apple employee, the patron who found the abandoned device identified its owner by looking at his Facebook page which was on the phoneʼs display. By the time Apple wiped the phone clean, it was too late.
Phones these days may be too smart for their ownersʼ good. When a young Apple employee lost his smart phone containing a priceless prototype of the next-generation iPhone, it put the spotlight on a simple yet profound danger. As people switch from cells to smart phones, a lost or stolen device makes the owner especially vulnerable to identity theft.
Interestingly, the initial concern about smart phones was that they would be infected by mobile malware and viruses. This has not happened, at least not yet. Perpetrators continue to go after devices like PCs which promise a higher payback in stolen data, and wireless carriers are adept at catching spam text messages before they reach consumers.
So todayʼs focus is on preventing old-fashioned loss and theft of the 50 million-plus smart phones currently in use. At least one company is about to launch an application for Googleʼs Android operating system that allows users to remotely lock down or wipe their phone by texting a code. Security industry experts say that a major challenge for the wireless industry is consumer education. People tend to take their phone for granted since it is small, portable and around 24 hours a day. They should pay more attention to where it is at all times and recognize how rich in data it really is. With a little effort, such as setting a PIN for their device or uploading security software offered by carriers, consumers could better protect themselves. Not leaving in a bar or restaurant or cab wouldnʼt hurt, either.
SUMMERTIME SCARES
Most people let their guard down during the summer. It is human nature. But a little preparation before you go on outings or vacation, can help reduce the threat of identity theft. PROTECT has touched individually on many of these topics all year, but here are a few basic summertime reminders on how to protect your identity as you prepare to enjoy those lazy, hazy days. Secure Your Mail. Ask the Postal Service or a trusted neighbor to hold your mail for you. Mail left in an unlocked mailbox is a goldmine for identity thieves.
Limit Public Wi-Fi. Be careful when using Wi-Fi networks. Most hotspots are unsecured and unencrypted. Similarly, be alert if you using a cyber café, hotel business center or other public access facility.
Too Much Information. Be careful with the information you share on Facebook and Twitter. You wouldn't put a sign on your front door saying nobody is home. When you disseminate your travel plans on a social networking site, you are essentially doing Limit Your Credit Cards. Itʼs best to limit the same thing. yourself to two credit cards away from home. Why two rather than one? Carrying Photocopy Your Wallet. Photocopy or too many credit cards will subject you to make a list of the contents of your wallet. additional hassles if your wallet is lost or Keep the copies in a secure and locked stolen, but carrying only one card is a location or with a trusted individual at major headache if it is lost or deactivated home whom you can contact in case your wallet is lost or stolen. for some reason. Avoid Debit Cards. Do not use a debit card while you are away. This reduces the chance that your checking account will be emptied while you are on vacation.
ATM Only Card. If you plan on using an ATM card during vacation, use one that does not have debit or check card privileges, and always requires a PIN. Use ATM machines found at banks that are in welllit areas and be alert for skimming devices on the machines.
Eye On The Prize. When dining out, try to keep an eye on your credit card when you pay your bill. If the server removes your card from sight, they may be able to create a “clone” using a skimmer. Notify Your Bank. Let your financial institution know if you are traveling far away so they do not automatically disable your account when they see “foreign” transactions.
TIMESHARE RESALE SCAM
people who claim that they have a buyer. The pitch is almost always the same: your timeshare is in a “hot area” and they have a buyer. All you, the seller, have to do is send cash in advance. The money and the reseller regularly disappear without a trace.
In Florida, for example, where the scam targets senior citizens, a remarkable 3,000 people complained to the Attorney Generalʼs Office about timeshare resale issues last year. This year, that robust figure has already been exceeded. Real estate industry executives and state attorneys general tell us there are four simple rules of thumb to avoid becoming a victim:
Letʼs say you bought a timeshare for a beach resort and now, with the economy still sour, you want to sell your share to cut your expenses. You are not alone; the numbers wanting to sell are growing and the number of sales have fallen more than 30 percent. Scammers are aware of your pain and, as a result, timeshare resale scams are soaring.
Timeshare owners throughout the country report that they've been receiving phone calls or emails – generally unsolicited — from sales-
1. NO UPFRONT FEES No reputable reseller will ever ask you to give money upfront fees. There are generally no buyers and the money is never seen again. Never pay upfront fees. 2. BE SKEPTICAL Donʼt believe what they tell you. These companies will tell you anything just to get you to sign up. They promise several bids a month and lots of free stuff to sign up. Never happens.
3. HANG UP They use hard selling tactics to get you to buy. Most of these companies will also use hard selling tactics to get you to sell. Tell them you sold the timeshare and hang up the phone. 4. JUST AN AD Timeshare resale companies donʼt really do much selling; they just list it like an ad. You can do it cheaper yourself using ad networks and other listing vehicles.
STUDENTS LEARN THE
HARD WAY
HERE ARE A FEW COMMON METHODS CON ARTISTS EMPLOY TO HOOK IN STUDENTS, AND SOME WAYS STUDENTS CAN PROTECT THEMSELVES.
Be wary of upfront fees. Nominal fees are a common part of todayʼs world, but do not be fooled by something that seems routine; if a scholarship offers huge rewards for a fee, a bell should ring. Most high quality programs do not charge students fees to read their applications. This is especially true if the fee is small, and the scholarship or grant promise is monumental. Whenever a fee is required, take a second look at the organization sponsoring the scholarship.
Students need tuition money more than ever and students are traditionally easy targets for scam artists. Thatʼs a combination fraught with trouble. With so many scholarships, loans, and grants being advertised, it is hard for students to know which are legitimate and which ones are frauds. FinAid, a reputable web-based financial aid resource, reports that the population of college students as a whole loses millions annually by falling victim to scam artists posing as grant foundations.
Be realistic about interest rates. Loans are a tricky territory for all students because of the confusing paperwork and complex language. Students should be on high alert when offered an incredibly low interest rate on a loan. Take a deep breath. If a declaration like “Winner, Winner, Winner!” is written on the letter or envelope, be careful. Students often “win” money without any recollection of submitting an application. These scams often excite students enough that they will send a minimal fee to receive their substantial prize money. Winning is fun; losing money is not. Students should calm down before writing that check, and do some in depth research as to who is awarding the prize money. Remember the public option. Keep in mind that the government, in the form of Federal Student Aid, has reliable legitimate financial aid resources. This organization can provide students with information about real loan opportunities and a free application their federally sponsored program.
CLICK HERE TO FILE FOR A FREE APPLICATION FOR FEDERAL STUDENT AID
MOVE IT DON’T LOSE IT
breakage of valuable items that is not sufficiently covered by the moverʼs minimalist insurance policy; pricing based on cubic feet rather than the more verifiable weight method; and the tacking on of extra charges such as additional parking expenses or penalties for “long carries ” if the truck cannot find a parking spot near your home. HERE ARE TEN TIPS TO HELP YOU AVOID BEING TAKEN:
1. Get a referral from your real estate agent since they are motivated to make your move a positive experience.
Any guy with a truck can advertise himself as a mover, but it is essential to pick a mover who is a qualified professional. In the moving business, spring and summer are the big moving months, and thousands of people fall victim to seasonal scammers posing as movers. Negative scenarios range anywhere from damaged items during the process of the move to customerʼs belongings being held hostage in the truck with a large ransom for the property.
Among the common scams: low rate bids in which you are giving a low estimate and them charged substantial extra fees at the destination; getting you to pay full price and then subcontracting the bid to a cheap and possibly unprofessional third party;
2. Investigate the companies thoroughly with the Better Business Bureau, the trade industry association and several reliable websites that track mover performance. 3. Be sure your mover visits your home to look over the logistics and see what must be moved; good companies will invest the time. 4. Get three estimates to have a sense of what the legitimate price or range may be. 5. Request a contract that covers everything and has no hidden charges or surprises.
6. Check out the claims process in advance so that you might recoup damages from anything broken or lost. 7. Ask if the mover conducts drug testing or background checks on their employees.
8. Be cautious when it comes to the internet; ads for cheap movers are often used by scam artists to prey on consumers.
9. Examine the trucks themselves to see if they look clean and in good condition. 10. Minimize the upfront payment; reputable companies rarely require a downpayment or deposit as high as 25 percent of the total move cost. CLICK HERE FOR A SITE THAT MONITORS MOVING COMPANIES
TRUE STORIES
BE PREPARED The Girl Scout motto rings especially true in this case. Daisy Troop 4366 from Mount Olive NJ was shocked when their leader, Kelly Willard, was arrested after a three-week investigation. It turns out that Willard had stolen personal information from two volunteers and applied for credit cards under their names. One of the victims was told by Capital One Bank that the fraudulent credit card was used to purchase $2,126 worth of items over a 48-hour period. Willard was charged with credit card fraud, false application to secure a credit card, and identity theft. As for the girls in Daisy Troop 4566, they are carefully preparing to search for a law-abiding leader this time around.
RENTER IN HER OWN HOME Maria-Theresa Wilson thought she was being rescued when preacher Calvin Baltimore and his business associate, Vincent Abdell, offered to help her stay in her house after she believed she was going to be foreclosed. Per their instructions, Wilson signed over her Washington DC house to Abdell, Wilson became a renter in her own house which, she was told, was a mere technicality. Soon Wilson, a frequent sufferer of seizures and caregiver to her elderly mother, could not make rent and Abdell promptly evicted her. Only after Wilson sued Abdell and his company did she get her house back as well as reparation payments. Several other homeowners in the neighborhood eventually brought similar suits against Abdell. THEFT AND THE CITY Approximately 8,700 Durham NC employees and retirees became exposed to fraud after a list with their Social Security numbers and birthdates was stolen from a government office. The list was taken during the renovation of city offices. Alexis Faison, a Durham local, was among the thieves; she has now pleaded guilty to 39 counts of credit card fraud, 25 counts of identity theft, and 12 counts of obtaining property by false pretense. When Faison始s house was searched, police found firearms including a sawed-off shotgun, stolen documents with identity information, and $4,000 worth of furniture from Rooms to Go.
HELLO OFFICER
The elderly residents of Venice FL never thought to question Sheriff Detective Louis Farra Khan Reed when he called to ask for their personal information during an identity theft investigation. Only one problem: Reed was not really a cop. The smooth talker was, in fact, gathering information to open credit cards under the Venice residents始 names thereby creating his own identity theft scam. Reed has now been charged with fourteen counts of identity theft.
BABY ON BOARD Targeting babiesʼ identities has become a trend for illegal aliens; almost 1.2 million children are estimated to be victims of identity theft. A recent example: Monica Zamora Vazquez, 28, was arrested in Utah for stealing the identity of an 11-month baby in order to apply for a job. The theft came to light when the baby needed public medical assistance for a heart treatment, and was denied because the record showed Vazquez earning a salary under the victimʼs Social Security number. Child identities are in especially high demand because their Social Security numbers can be used for years without anyone noticing.
They also had his home phone number and told the bank to call to verify. Police say that person then intercepted that phone call to Menard's house. Luckily, the bank called Menardʼs office, and was told he was on an airplane at the time. The bank did not make the transfer, and police are investigating. No arrests have been made.
INSTANT GRATIFICATION A Seattle WA woman was sentence to six years in prison for leading an identity theft ring that would use stolen credit cards to open “instant credit” accounts at various retailers. Eania Andrea Dyson hit retailers in the Puget Sound area; if the account was successTHATʼS RICH fully opened, several co-conspirators would quickly John Menard, head of the Menards home improve- go to other outlets of the retailer and purchase ment store chain and reputedly the richest man in thousands of dollars of goods from a shopping list Wisconsin, was the target of an identity thief. Police provided by Dyson. The scheme touched 42 victims say someone called an Eau Claire WI bank and and added up to more than $130 thousand dollars. asked them to wire $475,000 of Menard's money to Most victims did not know they had been victimforeign bank account. The person had account num- ized until the instant credit charges started rolling bers, passwords and Menard's social security number. in weeks later.
A FAMILY AFFAIR
The Moore Family of Chicago IL took family together to an extreme, joining together to conduct an identity theft ring. Ayonela Moore, daughter of Corine and brother of Herman Campbell, used a stolen health care credit card to get a “tummy tuck” procedure. She had also obtained credit cards and opened bank accounts under several victimsʼ names. When the police proceeded to search the family home, they found additional evidence of fraud including furniture bought in the names of several female victims by mother and son. All three Moores have been arrested on several counts of identity theft.
ON RISE
SHREDDING EVENTS
In order to raise awareness about the importance of shredding, cities and towns all over the country are sponsoring shredding events. At these events, residents are invited to bring — and destroy — their bank statements, ATM slips, credit card statements and the like. The idea is four fold: to educate people about the risks of identity theft; to encourage consumers to purchase small home shredders; to help people get rid of heavy documents for which home shredders may not be up to the task; and to aid the environment by recycling tons of paper.
PROTECT editors have documented shredding events in more than 30 states. The latest major confab just took place place last week in New York City. ShredFest 2010 was the third annual event under Mayor Michael Bloomberg, and was hosted in 11 locations citywide. Nearly three dozen shredders were given away as prizes to early risers.
Here is the takeaway from these events. High tech identity theft is one thing, but the everyday risk for the average American comes from low-tech dumpster divers who make their living searching through the garbage from private homes and apartment buildings. They are hoping to find bank statements, insurance coverage documents, invoices, tax documents, pay stubs, credit card applications, and material with your Social Security number, birth date or a PIN/Password — anything they can use to know more about you and steal your identity. At the same time, guarding against paper-based identity theft has never been easier. You can fight back. New home shredders are affordable and easy to operate, and are typically all the average guy needs.
So, look for a community shredding event near you. They are popping up everywhere throughout the country. Or consider this PROTECT article your own personal consciousness-raising event and start shredding! CLICK HERE FOR SPECIAL SHREDDING DISCOUNTS FOR ID SHIELD SUBSCRIBERS