Houston Consumer Blog

Identity theft even hits TV station

By Michael Finney

Oct. 23, 2007 (KGO) - When it comes to identify theft, con artists are getting very creative.  We've been investigating an unusual case of identity theft, and the victim is 7 On Your Side.

We got ripped off and so did ABC7NEWS.COM, as well as others. Although it's of special concern to us, it goes much further than that. It really begs this question: on the Internet can you trust anything?

Here's the come on, a Web site, pretty standard these days, that offers training, then job placement in the Internet field. Audio played from the Web site says, "Our students report earning between $50,000 to $125,000 dollars in their first year alone."

The cost? Two-hundred-forty-nine dollars.  You can conveniently sign up online.

To show that it is all legitimate, there is a link to an article posted on ABC7NEWS.COM. It's written by the consumer reporter, but that reporter is not me.

"We had a lady call me and she was asking if we had a reporter named Bill Stanford, and I said, 'no, we don't have any reporters named Bill Stanford,'" explains ABC7 Web Producer Glenn Kimball.

Glenn Kimball is on the ABC7NEWS.COM staff. After that call he investigated and found the fake looks and feels real because this site is actually interlaced with our real site, so when you click on weather, for instance, you get our real up to date weather report.

"It would definitely seem to be identity theft to me because they're going into our site, hacking in there, and so they are basically stealing from us. So I would consider that to be identity theft," says Kimball.

And it wasn't just us, USA Today was also ripped off. The paper confirms there was a fake article. The Los Angeles Better Business Bureau was ripped off, too. A link shows Certified Career Institute was awarded an A+ rating. Better Business Bureaus don't give out A-pluses.

"Organized crime is behind a lot of this. So it's not just a small guy, it's large criminal bodies that are doing this on a large scale," says Mike Barton, a senior editor with PC World Magainze.

Barton says these new scams can fool even savvy consumers.

"The URL looks legitimate, and then you go to a site that looks legitimate, and in that process... that's going to imply the trust there that you're at the right site, you clicked on this e-mail, it all looks legitimate," explains Barton.

Our corporate security team went after these guys and the site moved to different servers. Then, eventually old Bill Stanford went to work for another TV station, the nonexistent WEWZ in Ohio.

Kimball: "And a couple of other Web sites too from what I'm seeing."

Finney: "Really?"

Kimball: "Yeah, it sounds like he's kind of moving all over the place."

Finney: "So you've seen him on some others as well now?"

Kimball: "Yeah, there's been a couple of other Web sites too, but he's not working for us anymore from what I'm seeing."

Finney: "Which is what you care about."

Kimball: "Yeah, definitely.  Yeah, that's embarrassing.  So I'm happy he's gone."

We have left messages with the Certified Career Institute, but have not heard back.  We will let you know if we ever do.

So how do you know if a site is legit? Don't go through a link. Log on yourself and if there's any money or personal information involved, you need to go further and check addresses and phone numbers.

Copyright 2007, ABC7/KGO-TV/DT.

Jury duty scam just another ID theft trick

Greg Abbott, the Attorney General of Texas, sent us this warning about ID thieves trying to trick you into giving them your information and money:

The FBI and other law enforcement agencies around the country have reported the resurgence of an old trick known as the jury duty scam.

In this scam, potential victims receive calls from people posing as court officers. The caller informs the victim that he or she failed to appear for jury duty and that a warrant has been issued for his or her arrest. After alarming the victim, the caller then seeks to "confirm" the victim's Social Security number and other personal information. After divulging this information, the victim is often told that the entire matter can be instantly dismissed by paying a fine. All the victim needs to do is provide a credit card or checking account routing number.

By the time the call ends, the scammer has all the information necessary to open lines of credit under the unsuspecting victim's name. Identity thieves can quickly empty the victim's bank accounts or run up staggering credit card bills.

As with many ploys to obtain consumers' personal information, it is likely that many of these identity thieves are actually thousands of miles away, often in other countries and out of reach of U.S. law enforcement. Under this scheme, criminals simply go through the phone book hoping that sooner or later someone will provide the sensitive information they need to steal an identity.

This ploy is particularly effective because it causes victims to react immediately out of fear, rather than taking the time to reflect about the information being requested. While citizens could face legal consequences for failing to respond to a valid jury summons, legitimate court officers would never leave threatening messages on someone's voicemail to demand personal information and immediate payment of a fine.

Consumers who receive such a call can verify whether they must appear for jury duty by calling their local courthouse or district court. Consumers should NEVER hand over personal information in response to an unsolicited telephone call or e-mail, no matter how legitimate it might appear.

Are Texans' IDs open to theft thanks to state?

Consumer Blog reader Scott B. points out an interesting post on the Freakonomics Blog.  It tackles what the writer infers is a hypocritical stance by the Texas Attorney General's Office and your identity:

Abbott blasted stores like the EZ Pawn chain, charging that its practice of throwing unshredded documents into Dumpsters “put hundreds of Texans at risk” by giving fraudsters access to confidential information. EZ Pawn is being charged with violating the new law, Abbott said, with penalties of up to $50,000 per infraction.

The writer then went to the AG web site and found that he could access all kinds of info about Texans with ease:

To his surprise, Peisner was allowed to proceed (without giving the three-digit security code on the back of his credit card, no less), and within moments he had access to the site’s database. For $1 per search, he ran searches on several common last names including “Campbell,” “Smith” and “Jones,” as well as “Greg Abbott,” the attorney general.

The result? Hundreds of PDF’s for the common names and a handful for Abbott, many of them containing addresses, Social Security numbers, and other personal information. Lucky for the attorney general, Peisner chose to publicize his findings here rather than sell them to the highest bidder — though he did receive an invoice for the searches within minutes of completing them.

READ THE REST

The Great Bellaire Paper Shred

Here is an event you might want to attend this weekend if you are concerned about ID theft through dumpster diving:

What: The Great Bellaire Paper Shred: Help Protect Yourself Against Personal Identity Theft

Who: Community National Bank and the Bellaire Police Department are joining forces for the fourth consecutive year

When: Saturday, May 12, 9 a.m. to Noon
Where: Community National Bank, 5123 Bellaire Blvd. @ South Rice in Bellaire
Why: Personal identity theft is the fastest growing crime of consumer fraud, topping the Federal Trade Commission's complaint list for seven years in a row

Action: Free document shredding to help local citizens minimize the risk of becoming victims of identity theft. An estimated 9.3 million Americans have reported being victims of such crimes, according to a 2006 Justice Dept. study.

Individuals may bring up to 100 pounds of paper to feed into the Iron Mountain® Secure Shredding mobile unit parked in front of the bank. The unit holds up to 15,000 pounds of paper.

What are your rights if your info is dumped?

What are your rights if your info is dumped?

By Jeff Ehling

(3/21/07 - KTRK/HOUSTON) - Document dumping, we've seen it two times this week alone, and in both cases personal financial information was left in the trash. We wanted to know what your legal rights are if an old employer or anyone else is careless with your credit information.

A lot of it depends on who was careless with the information. The answers are different when it comes to former employers and say a bank where you apply for a loan.

It happened Monday in Liberty County and then it happened again Tuesday in Fort Bend County.

In both places, personal financial information was left behind and anyone could have found dozens of names, addresses, and social security numbers. Clearly those whose names could be seen are not happy. In the Fort Bend County case the records were recovered. But what happens in those cases when potential victims actually have their identities stolen? Legal experts say a case can be made against the business that left your identity open to scammers.

"If that information gets out because of something they did such as throwing it away negligently they could be responsible," said UH law professor Richard Alderman.

Alderman says that responsibility means ID theft victims can file suit to be reimbursed for any expenses associated with an ID theft, but you'll have to prove a company was negligent with your information. The recent Liberty County document dumping raises a different set of issues. Someone at a CVS that closed its doors left personal information about former employees in a dumpster. You may be surprised to learn what happens to your personal information once you willingly hand it over in a job application.

"Information about you is not really yours, it belongs to the person who has that information," said Alderman. "You don't have the right to say, 'I want you to destroy all that information, I want you to give me all that information back,' it belongs to the other person."

That does not mean an old employer is off the hook if the company is careless with your information, it just means you can't get it back when you leave and your old job is under no obligation to destroy the information.

While you can't make a former employer destroy your information, there are laws that require just that for some companies.

So if you are an id theft victim, how do you get the company that exposed the information to make things right?

First, contact the company, if that does not work try going to small claims court, but if your damages are more than $5,000, you can't go to small claims and may need a lawyer.

(Copyright © 2007, KTRK-TV)

Identity theft tips

Today Jeff Ehling talked about a consumer's options when it comes to their personal information being thrown away, for example in a dumpster.

We do a lot of ID theft stories around here, so here is a link to all of them. 

Jeff Ehling almost gets his ID stolen

Here is an interesting twist on a common story, our very own consumer reporter, Jeff Ehling, was almost the victim of identity theft (READ THE FULL STORY HERE). 

Here are the ways you can protect yourself:
- ID theft resources
- Protect your finances by checking your credit

Surprise charges on a bank account

Today at 4:55 pm, Jeff Ehling told us about a Houston-area couple that found a surprise charge on their bank statement.  What should you do if this happens to you?

Here are some steps to take

Spear Phishing

We've all heard about phishing scams but there's a new and dangerous type to watch out for. It's called spear phishing…and if you're one of the millions who visit social network sites, you could be a prime target. These fraudsters are honing their tactics and zeroing in on information listed on your profile to hook their teeth into your finances.

What is spear phishing?

Threat Alert: Spear Phishing

http://www.staysafeonline.info/

Here is Jeff Ehling's MySpace account you saw featured on TV today.  You can join his friends network.

Opting out of credit cards

Want to opt out of pre-screened credit cards? If you're like most people, chances are you can't open up your mailbox without finding at least a couple of credit card offers. You know...the kind that promise things like pre-approval and low interest rates. Some consider them a deal...but if you consider them "junk mail"...did you know that federal law gives you the right to opt out of unsolicited credit card applications??!! There's actually a toll free number and a website dedicated to allowing you to put an end to all the envelopes!

On the web:
https://www.optoutprescreen.com/

Or by phone:
1-888-5-OPT-OUT

Here is more from optousprescreen.com:

To Opt-Out of Direct Marketing Association (DMA) Lists
The Direct Marketing Association (DMA) tracks consumers who prefer not to receive mail or telephone solicitations. The DMA can provide information about opting out of lists produced by companies that subscribe to its Mail and Telephone Preference Services. You may contact the DMA at the following web address: http://www.dmaconsumers.org/consumerassistance.html.

To find out more about credit reports, your rights as a consumer, the Fair Credit Reporting Act and the FACT Act
Please visit www.ftc.gov/credit/.

To request a copy of your credit report from the Consumer Credit Reporting Companies
The federal Fair Credit Reporting Act (FCRA), as amended by the Fair and Accurate Credit Transactions Act, requires each of the nationwide Consumer Reporting Companies to provide you with a free copy of your credit report, at your request, once every 12 months. www. AnnualCreditReport.com is the only web source authorized by all three nationwide Consumer Credit Reporting Companies, Equifax, Experian and TransUnion, from which free annual credit file disclosures can be requested. Consumers are able to order their credit reports under the roll-out schedule established by federal law. For more information on this subject visit http://www.ftc.gov and click on the “for consumers” link.

You may also call toll free: 1–877–322–8228 to request your free annual credit file disclosure.
Hearing impaired consumers can access our TDD service at 1–877–730–4104.

To find out information on disputing or correcting information in your credit file
Please contact the Consumer Credit Reporting Company that provided the credit report

• Equifax - www.equifax.com
• Experian - www.experian.com
• Innovis – www.innovis.com
• TransUnion - www.transunion.com

To find out more about credit repair
Please visit the Federal Trade Commission Credit Repair information at http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm

To find out more about identity theft
Please visit the Federal Trade Commission Identity Theft Center at http://www.consumer.gov/idtheft/

"Vishing" Is Latest Twist In Identity Theft Scam

Oh no.  Here is another one to worry about.  We all know about phishing, but now consumeraffairs.com is talking about vishing!  Oh my:

It's called "vishing," and it's similar to "phishing" scams that rely on email to steal consumer’s identities. Vishing uses Internet telephone calls.

Wary consumers now know better than to click on e-mail links from unknown senders, so "vishers" have dropped links in favor of phone numbers. Using spoofed e-mail headers and camouflaged Caller ID information to make requests appear legitimate, con artists have managed to fool customers of Santa Barbara Bank & Trust, as well as PayPal members.

Be careful out there.

IRS Renews E-mail Alert Following New Scams

Warning!  We have told you before and now we are telling you again about an IRS centered scam.  But guess what?  The Internal Revenue Service has nothing to do with it:

The current scams claim to come from the IRS, tell recipients that they are due a federal tax refund, and direct them to a Web site that appears to be a genuine IRS site. The bogus sites contain forms or interactive Web pages similar to IRS forms or Web pages but which have been modified to request detailed personal and financial information from the e-mail recipients.

If you get one of these emails, you can send them to the following address phishing@irs.gov.  More than 7,000 bogus emails have been forwarded to the IRS, with nearly 1,300 forwarded in June alone.

Protecting Yourself From Fraud

I bet you didn't know it is National Fraud Awareness Week.  If you did, you get a gold star!  To celebrate, the National Crime Prevention Council (NCPC) is sending out tips on how to protect your family from fraud and ID theft:

Eliminate paper trails. Some identity thieves “dumpster dive,” that is, they rummage through garbage cans and communal dumpsters searching for discarded bill stubs, cancelled checks, credit card and bank statements, preapproved credit card offers, and other private information. So, tear up your correspondence, or, even better, shred it before throwing it away.

Sign up for direct deposit.  If you currently receive Social Security or other federal benefits by check, consider making a switch. Direct deposit eliminates the risk of lost or stolen checks, reduces fraud, and gives people more control over their money. Direct deposit also protects against identity theft. For more information about signing up for direct deposit of your Social Security or other federal benefit payment, call the Go Direct helpline at 800-333-1795 or go to www.GoDirect.org.

Protect your personal information. Be extremely cautious of whom you trust with personal information online. Guard your account numbers, Social Security Number and other confidential information. Some thieves “phish” for these numbers by constructing bogus emails, pop-up ads and websites that appear to be those of legitimate businesses or agencies. Remember: Legitimate businesses will never ask you to provide nor confirm any personal information through an email or pop-up message.

Check your credit report.  A new law entitles everyone to at least one free report a year from each of the three major credit bureaus. If you see something erroneous or suspicious, contact any one of the three major credit bureaus. Ask how they can help you monitor your credit report for suspicious activity.

Stay alert in public places. Make sure no one is standing behind you when you use an ATM. He or she may use a cell phone with a camera to try to photograph your card number and PIN number. Always shield your card and the screen.

For more information on how to protect yourself from fraud and identity theft, visit the National Crime Prevention Council online at www.ncpc.org.

The Council reminds you that on average, victims report spending 30 hours cleaning up after an identity crime at a cost of $500.  Yikes!

Identity Thief Finds Easy Money Hard to Resist

The New York Times ran a great article on the story behind a convicted ID thief.  Sure you hear about these types of cases, but you never know who's behind them. Now you do:

But Mr. Sharma, now 22, says he never really kept track of his earnings.

"I don't know how much I made altogether, but the most I ever made in a quick period was like $20,000 in a day and a half or something," he said, sitting in the empty meeting hall at the Mohawk Correctional Facility in Rome, N.Y., where he is serving a two- to four-year term. "Working like three hours today, three hours tomorrow — $20,000."

And once he knew what he was doing, it was all too easy.

"It's an addiction, no doubt about that," said Mr. Sharma, who inflected his words with the sort of street cadence adopted by smart kids trying to be cool. "I get scared that when I get out, I might have a problem and relapse because it would be so easy to take $300 and turn it into several thousand."

Sounds like a story of a smart kid who didn't have enough challenges in his life.  He found that challenge online.

Planning a Summer Vacation?

Are you about to take a summer vacation?  Beth Givens of the Privacy Rights Clearinghouse sent us some good tips regarding traveling and identity theft:

• Clean out your wallet. Remove unnecessary credit cards, your Social Security card, and other unneeded documents that could compromise your identity if lost or stolen while on vacation.

• Photocopy or make a list of the remaining contents of your wallet. Keep it in a secure and locked location or with a trusted individual at home whom you can contact in case your wallet is lost or stolen.

• Do not leave your wallet or any documents containing personal information in your hotel room unattended. Use a hotel safe when available.

To see more, click here.

Do you have an identity theft/travel story?

A police warning

The Rosenberg Police Department released this following warning, but it really   applies to everyone...no matter where you live.

FOR IMMEDIATE RELEASE:

May 12, 2006

Rosenberg,Texas: Once again the residents of Rosenberg are being approached with various illegal scams from people attempting to steal money from hardworking citizens. Many of these scams have appeared in the past but continue to return over and over again unfortunately with new victims.

CANADIAN LOTTO SCAM: Notification is either received in the mail or by e-mail that the recipient has won a large amount of money in the Canadian Lotto. All that is required is for the person to send a

Western Union money order to cover the initial expenses, handling charges, etc. The victim never receives the “winnings” and is out the money mailed to

Canada. This scam may be followed by another letter stating the sender can get their money back if they pay a small recovery fee to a fictitious company. Once more the victim is victimized and out even more money.

PHISHING:This refers to a person or a group of cyber-criminals who create or copy an existing legitimate web page to trick users into providing sensitive personal information. Unsuspecting victims may provide information such as credit card numbers, PIN numbers, social security numbers, or passwords. DO NOT PROVIDE SENSITIVE PERSONAL OR FINANCIAL INFORMATION unless you have initiated the transaction!

TELE-MARKETING SCAMS:  This is the same scam as used in the Phishing Scam, except the victim is contacted over the telephone to “verify” their personal information.

SWEEPSTAKE LOTTO:  A “final notification award” letter originating primarily from

Nigeria or

Spain announcing that your name was drawn in a sweepstakes. The victim is asked to complete a form and mail it to the sweepstakes representative. The form requests personal information such as name of your bank, bank account number, routing number, bank address, etc. The true purpose is to empty out your bank account against your wishes.

PIGION DROP: This scam has been around for years and unfortunately it continues to work as more citizens become victims. Basically, the victim is approached by a stranger who says they have won a large sum of money but can not claim it for various reasons.

They will give the victim, in good faith, the lotto ticket to hold if the victim will provide a large sum of money for the scam artist to hold, usually in a paper bag. Then the scam artist skips out and leaves the victim holding an empty bag with no money in it

According to the Texas Attorney General, some of the warning signs of a scam are:
Unsolicited mail or phone call.
A promise that you will get a large sum of money.
Any effort to obtain personal financial information.
You have to PAY money first before you GET money.
You are asked to WIRE money instead of using US Mail.

Greg Abbott, Attorney General of Texas says, “Just Hang Up “ if it is a phone call or if it is in the mail “Throw it Away.” Don’t become a victim of a scam or identity theft. JUST SAY NO!

ID Theft Alarm

Today at 4:55, Jeff showed you a new way to protect your identity.  Here is more on LifeLock.

Have you been a victim of ID theft? Email and let us know, we might be able to help.

Identity Theft Victims Getting Younger

Consumeraffairs.com tells us about a new ID Theft trend...younger people:

The Federal Trade Commission reports the number of identity theft complaints involving Americans 18 or younger nearly doubled in the past three years.

Why are identity thieves targeting kids? Because, the FTC says, it's easy.

Children have no credit history, so they have clean records. No one will know the child's identity has been stolen for years, since children won't be applying for loans or getting credit cards.

Do you know of any ID thefts regarding young people?