Protecting our kids, as parents, is second nature. Whether it is instinctual or a recessed gene that suddenly becomes active once a child is introduced, we strive to keep our children out of harm’s way. Upgrading booster seats, keeping inoculations up-to-date, and checking on the children now and again as they play outside are just a few ways we watch over our kids and make sure they are healthy, happy, and safe.

In the headlines and in the blogosphere, even as recent as last week, an intangible threat has been reappearing. It is the hardest danger to fight for our kids because it is nearly impossible to detect. It’s not a disease, and it’s not a predator, but it is very real, even though you don’t see it.

Carnegie Mellon University’s CyLab cybersecurity research center released in 2011 their findings on a study of Child Identity Theft. From a group of 40,000 children, over 10 percent were found to have compromised social security numbers. These compromised numbers led to incredible cases of ruined credit histories belonging to kids who hadn’t even applied for their own debit cards. Some of these cases of stolen identities and credentials include:

• An Arizona teenager found herself $725,000 in debt, with 42 open accounts including mortgages, car loans and credit cards.
• A Kentucky teen was found to have a credit report that went back 10 years and included a foreclosed mortgage.
• Social Security numbers taken off kids as young as five years old, were used to purchase handguns. More than three hundred  victims were under five years in age, the youngest victim being five months old.

The lure of a child’s personably identifiable information (PII), in particular their Social Security number, is easy to understand. A child’s credit report is clean slate, theoretically having no prior applications for credit cards, major purchases, or investments. What makes this crime all the more abhorrent is the lasting damage it can have on a child. Student loans, future job opportunities, and even home loans are at risk due to a bad credit history falsely created and marginalized by a fraudster.

The more pressing question in the issue of child identity theft is how identity thieves are getting possession of this data. While the report itself does not offer solid leads as to how criminals are getting their hands on the PII of minors, trends are pointing toward children’s access to technology and the use of a child’s Social Security number as a unique identifier.

Concerning modern conveniences, children are being labeled as digital natives, those born around the time of digital technology’s integration (c. 1970), and possessing a greater understanding of digital concepts. As Biz Report states in their own study, the digital natives are out there as “while over two-thirds (69%) of 2-5 year olds can operate a computer mouse, just 17% can tie their own shoelaces.” Kids are expected to understand the latest technological advances; but with parents trying to catch up to what these advancements can do, kids are lacking the “respect” of it and fail to grasp what they are exposing in the way of sensitive data through apps, social networks, and online activity.

Away from your computer, the potential threat resides in where and with whom parents entrust their child’s PII, specifically their child’s Social Security number. Christopher Burgess, online safety advocate and co-author of Secrets Stolen, Fortunes Lost: Preventing Intellectual Property Theft and Economic Espionage in the 21st Century, recommends that parents be selfish with their  their child’s Social Security number.    “How many different forms does a parent fill out for their child, any number of which could be compromised by an attack on the host? Take for example the number of data breaches which occur at educational institutes. This data may be warehoused and bartered by the criminal elements for future aggregation,” he states.

Illegal immigration, organized crime, and family and friends who have ruined their own credit are the most common perpetrators of  children’s social security numbers. . This last revelation of the Carnegie-Mellon study is disturbing on many fronts, and  cannot be ignored.

Parents can do something to help minimize the risks associated with child identity theft and sythentic identity theft (where thieves piece-meal together a new identity from one victim’s SSN, another’s address, and another’s birthdate, and so-on):

• Don’t share your child’s Personally Identifiable Information (PII) unless it is absolutely necessary (IRS Tax Returns, Insurance issuers). 
• Always ask these three questions when asked for PII:  Who needs it?  Why to they need it?  Is there another source of PII they can use (and yes there is 9 out of 10 times).  How will they secure the information?
• Watch the mail for solicitations directed towards your kids. If you receive any offers from credit card companies offering pre-approved, low interest rates on credit cards or loans, there may be a problem. You can contact the Federal Trade Commission at 1-877-ID-THEFT for help.
• Keep your antivirus software up-to-date in order to keep your guard up against keylogging and other forms of malware that might find its way on your computer.
• Monitor your child’s online activity (credit and public records). You can also limit your child’s online presence by implementing a browser’s security add-on’s and barring access to certain websites.
• Install a firewall for your home network, make your network secure not open, or implement both options. Security options are easy to install and activate. What is usually needed is time. Time to understand them and time to put into practice the changes.

Child Identity Theft continues to rise at an alarming rate, but the best defense against such a crime is to remain involved in where your child is online and where your child’s PII is shared. Simply keeping your child’s private records is not enough. You need to remain cognizant of the technologies they are familiar with as well as their digital habits, both online and off. By remaining in the know, you can take steps as a parent to protect one of your child’s most important possessions: Their identity.

Black Friday has come and gone, leaving in its wake record numbers, a hint of optimism on the stock market, and at least one story concerning overenthusiastic shoppers. Just because Black Friday 2011 is done, though, does not mean that holiday shopping has concluded. With a mere eighteen days remaining (and while that sounds like a lot of time, those eighteen days will fly by), consumers are still shopping for that perfect holiday present. According to the National Retail Federation’s 2011 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, holiday shoppers say they plan to spend an average of $704.18 on holiday gifts and seasonal merchandise. Additionally, nearly six in 10 holiday shoppers (59.9 percent) say they plan to take advantage of retailers’ sales and discounts to make additional non-gift purchases for themselves and their families during the holiday season.

Once your purchases are made, though, there are still concerns to keep in mind. As reported by Bloomberg Businessweek, MSNBC, and this blog, many cases of identity theft happen after purchases are made, originating from within the business or service where a transaction has occurred. Just last month, New York authorities shut down an identity theft ring where waiters were skimming credit cards of their patrons in order to make counterfeit cards for themselves.

One way of preventing identity theft and credit fraud is awareness. You as a consumer should not only remain aware of what you are spending but where you are spending your hard-earned money and what is happening in your bank account after a transaction has happened. Whether purchasing merchandise online or at the mall, IDGuardian offers a few tips that can help you stay within their budget and help protect you and your accounts from potential fraud.

1. Double check your email inbox.  It is often reported that email scams from retailers will appear to be legitimate when sent to the consumer; however, savvy fraudsters have designed these “fake” emails to steal the consumer’s personal information by having them click on a fraudulent link.  When in doubt, do not respond.  The safer option instead of clicking on the link, is to enter the address directly into the address bar.  Most retailers will not ask for personal information via email.
2. Beware of Public Wi-Fi.  With the increase in popularity of mobile gadgets, they have made shopping at your fingertips more convenient.  But keep in mind that your local coffee shop or hotel lobby may not be secure. Know your device settings, and double check that your network is secure before you type in your credit card information.
3. Create a secure environment. Before shopping online, make sure your computer is up-to-date with the latest anti-virus software, updated regularly. Make sure the anti-virus package you install prevents viruses, malware, and keylogging to keep the fraudsters from capturing your most private information like passwords and user IDs.
4. Keep a close eye on your accounts for suspicious activity.  As you do your holiday shopping, you need to constantly monitor bank statements and accounts to detect any fraudulent or suspicious activity. Save your receipts to help compare your purchases against your bank and credit card statements.  Fraud does happen and can happen to anyone.  If you suspect fraudulent activity, immediately contact your bank or credit card company.
5. Be careful about where you shop online.  As more and more people turn to the Internet for their holiday shopping, it’s important to make sure the websites they are using are secure and legitimate.  Check to see if there is an “s” in the website address (https:// instead of http://).  Look into anti-virus software packages that can also verify IP addresses you are logging into to make sure it’s legitimate.

Particularly around the holidays and the closing of a year, it is sometimes difficult to remember to take a breath; but when it comes to your identity, it only takes a moment to protect yourself. And with that moment taken, you can now have peace of mind as you wish “Peace of Earth” to friends and family this holiday season.

Recently, I decided to get back into the world of credit cards. It was only a few years ago that I paid off my credit card debt and swore off the powerful plastic in order to live without the debt accumulated across those cards. Then, on looking at my credit score and seeing how terrific it was, I applied for and was granted two new credit cards.

I quickly re-discovered the convenience of a credit card.

It is easy — very easy — to find yourself staring at a mountain of debt come January 2012. While acquiring that “perfect gift” or preparing for that fantastic holiday party, it is easy to forget other expenses that rise such as electricity and heating bills. When the bills from decking the halls come in, paying the minimum payment that the credit card company suggests does little to chip away at this amassed debt, debt that is steadily growing interest. In a January 2011 poll, Consumer Reports found that the average spending on gifts, food, and entertainment around the holidays averaged out to nearly $600 per person. This poll also revealed that over 50 percent of these festive purchases were made with credit cards. Now, with the 2011 holiday season fast approaching, 14.1 million consumers are still paying off their 2010 holiday shopping debt, a slight bump up when compared to the 13.6 million consumers paying off holiday debt accrued back in 2009.

No matter how good it feels to make your child’s face light up at Christmas or finding that perfect gift for someone, the reality of satisfying those impulse buys is debt; and depending on your impulses, a lot of it. If you are currently managing a credit card balance of zero, or facing the threat of a large debt becoming even larger, here are a few tips to keep the spending in check:

• Make a List and Budget. You might think a list of gift recipients (including charities, mind you) and a hard-line budget turns you into a Scrooge for the holidays, but following both and accurately tracking them (more on that later) is a bit like keeping a “daily food log” when on a diet: It keeps you honest. Narrow down your gift exchanges, find a monetary value that you can reasonably afford, and stay within both your gift list and your budget.
• Avoid spending for the holidays on both a debit and credit card. This is the big trip-up for many (apart from straying free from the budget you just set for yourself), and here’s how people get tripped up: When buying gifts and other holiday purchases using both a credit and debit card, your spending doubles. The difference is, unlike a debit card where the money is taken out immediately, the credit debt is building. Then the bill arrives and you’re facing debt that is now accruing interest. Think before swiping the card and refer back to your budget.
• Track your receipts. Again, back to the budget — the best way to track your spending is by monitoring your receipts even after you return home with your purchases. Add up the numbers and compare them to the budget. Once that budget ceiling is reached, be honest with yourself. In the case of overspending, most stores will refund a sale if a receipt is brought in within 30 days of the original purchase.
• Take advice from the credit card vendors. With both of my new cards, I noticed that the credit vendors are offering a variety of formulas that show how long a card’s current balance (provided it is not used any more) will take to pay using the suggested minimum payment, and then how long the card will take to pay off with a substantially higher payment. Consider these formulas and follow their advice — cease activity on your credit card until the debt is resolved.
• Consolidate debt on a new card under certain caveats. If after the holidays you find yourself with mounting debt, you may be approached by other credit card vendors promising zero interest for a period of time. This is a fantastic opportunity to eradicate your holiday debt by consolidating it on one card.
  There are caveats to this tactic of debt reduction.What are those caveats? First, be certain you can pay off the debt before the new interest rate kicks in. Next, stop using the credit cards you are consolidating. They may sound like two simple details to meet, but much like the spending done with both a debit and a credit card, consumers can fall under a false security on seeing their cards at “zero” and start charging items and services on it again, building new debt on the consolidated debt on another card. Also, while debt consolidation sounds like a Avoid this pitfall, and follow these two conditions when consolidating credit debt on a new card.

The last tip we give may sound easier said than done, but it’s possible, especially when you have a brand new card.

• Pay off the card. Stay within your budget. Pay the full amount when the bill arrives. Keep your balance at zero. You get credit, interest free.

The holidays do not need to be a visitation from ghosts of Christmas Debts Past or Christmas Debt Present; and with just a bit of planning and some hard discipline, your holiday shopping need not be haunted by the Ghost of Christmas (or any other holiday, come to think of it) Debt Yet to Come either. The control over your debt still remains in your hands, something that should restore some happiness in your holidays.

Back in March, Intersections Inc. CEO Michael R. Stanfield presented a three-part series on the Digital Footprint of a College Graduate. His blogposts covered:

• A Graduate’s Social Media Profile
• A Graduate’s Credit Profile
• A Graduate’s Job Search Profile

In this episode of the IDGuardian Podcast, Michael looks at the earlier years of a child’s life, and how important it is for parents to keep a watchful eye on the credit and identity of their children as identity theft against minors is on the rise.

Our audio and video columns can be listened to in a variety of ways:

• Through the blog via the media player found in this blogpost
• Through a manual download by clicking on the “Download” link
• By subscribing through iTunes
  

Michael R. Stanfield co-founded CreditComm, the predecessor to Intersections, in May 1996 and has been Chairman, Chief Executive Officer and a Director since that time. Michael has been involved in management information services and direct marketing through investments and management since 1982, and has served as a director of CCC Information Services Inc. and BWIA West Indies Airways.

This podcast is copyrighted 2009-2011, IDGuardian.com, All rights reserved.

Any use of the Content not expressly permitted by IDGuardian’s Terms of Use may violate U.S. or international copyright, trademark, and/or other laws. For questions or feedback please contact us at questions@IDGuardian.com.

Thank you for listening,
and stay safe.

In Part One of Footprints of a College Graduate, we advised college graduates to take an objective look at their Social Media profiles with a particular focus on their updates, photographs, and commentaries. Now we turn the focus to credit profiles and the relevance they play in job searches, new purchases, and house rentals or buying.

Credit is and will continue to be an integral part of our everyday lives. Unfortunately, many adults — even those with business degrees — never learn the importance of maintaining and building good personal credit. The majority of students entering college are experiencing their first taste of freedom: no curfews, no daily parental guidance, and trial and error experiences that will help them grow personally and professionally. Credit card companies love college students, and enhance students’ newfound independence with “free” money; and for the particularly savvy, low interest rates. It starts innocently enough; but as time goes on, students can and often do get in over their heads.

According to Sallie Mae’s “How Undergraduate Students Use Credit Cards” report, on average, college students carry four credit cards, graduating with debt exceeding $4,000.  Since plastic can be deceptively easy to use, particularly when virtually anything can be purchased with a credit card – from the occasional meal at McDonalds to groceries to more extravagant purchases such as concert tickets and spring break vacations – it’s easy to understand how debt can accrue. If a student pays their bill on time, they can build a strong credit history that will benefit them in both the short and long run; but out of the students surveyed in the earlier cited Sallie Mae report, only 17 percent regularly paid off all cards each month, and another 1 percent had parents, a spouse, or other family members paying the bill. Missing just one payment or simply paying a bill a few days late can have a significantly negative impact on their credit. Credit scores, the most familiar being FICO, rate credit from “Very Poor” with a score starting at 350, to  “Excellent,” having a  top score of 850. Credit scores are used to rate creditworthiness, including credit card balances versus credit limits, total debt, payment history, derogatory payments, and other key factors. This score will determine the interest rate they can qualify for  on a new loan, their ability to rent an apartment, secure utilities including phone, electric, and gas, and interviewing for a job and undergoing employment background screening, a key factor in the hiring process.

Credit is important but good credit is essential. For students just entering school, use those credit cards wisely: pay off balances each month or at the very least make payments on time, and charge only what is necessary. For new college graduates, while their credit history may be short, it is important to take the time to review all three credit reports from the major Credit Reporting Agencies (CRA), available for free (one time per year) at www.annualcreditreport.com.

It is also essential that students, both heading to and graduating from college, understand the responsibility of protecting their credit data. Recent findings from the Javelin Strategy & Research 2011 Identity Fraud Survey Report revealed that younger consumers (18-24) suffer the second highest in “friendly fraud” incidents. ”Friendly fraud” is defined by the Javelin Study as when sensitive data is stolen by a family member, friend, coworker, or individual known to the victim. Friendly fraudsters are able to operate undetected because their personal knowledge of a victim allows them to more easily open new fraudulent accounts. Awareness of credit and personal information as well as the responsibility in keeping it secure is key to protecting everyone’s most valuable personal asset — their identity. College students and graduates should consider enrollment in credit and public record monitoring services so they can be alerted to changes to their credit reports and to non-credit information (utilities, cell phones, etc.) and respond quickly to potentially fraudulent transactions.

It’s never too late to improve upon or become educated about credit. Good financial health can save time and money both now and in the future. Adults of all ages should proactively take control of their credit and personal identity. A resume personifies a person’s experience and achievements based on their own perception. A social identity is created by an individual and shaped by the virtual participation of “friends.” Credit profiles and public information convey a much more pragmatic story that can have a positive or negative impact on a person’s identity and possibly result in denial of credit and employment opportunities. The good news:  It’s early enough in the credit cycle for students and graduates to take control of their credit and to make a difference in their future.

Attending the RSA Conference this year is Steve Schwartz, Executive Vice President of Consumer Services at Intersections, Inc. Steve sat down with Tom Field, Editorial Director of Information Security Media Group, to discuss the 2011 Javelin Strategy & Research Identity Fraud Survey as well as the myths and realities of identity theft. This podcast is presented via syndication from the Information Security Media Group, the people who bring you BankInfoSecurity.com.

Our audio and video columns can be listened to in a variety of ways:

• Through the blog via the media player found in this blogpost
• Through a manual download by clicking on the “Download” link
• By subscribing through iTunes

Steve Schwartz, before stepping into Intersections’ role of Executive Vice President, Consumer Services in 2006, served as Senior Vice President at The Motley Fool, as well as Vice President at Time Life, Inc. During his career, Mr. Schwartz has worked extensively in the direct response marketing field, including positions at Book-of-the-Month Club and Columbia House.

Thank you for listening
and stay safe.

Last week, news outlets released some amazing statistics concerning this year’s Black Friday and Cyber Monday. The Huffington Post reported that sales in physical retail shops during the Black Friday weekend were up by 12.1 percent from 2009. For Cyber Monday, Bloomberg reported Internet retailers cracking the $1 billion ceiling, the first time in Cyber Monday history, bringing its numbers up by 16 percent from 2009. Then, in the aftermath of such retail bliss, another statistic made headlines:  Eight million customers, an estimated 11 percent of all credit card owners, are no longer using their cards for shopping. With such a drop in card usage, credit card companies and banks are turning to a tried-and-true method of attracting customers: Celebrity-endorsed credit cards.

One such celebrity credit card unveiled back in October was the “Kardashian Kard” featuring the Kardashian sisters. The idea behind the card was that it was a pre-paid card that could be accessible (as well as targeted) to young adults. By making it a pre-paid card, its owners could work on a budget as well as build a solid credit history. The concept sounded good until credit analysts and consumers (one of them, Connecticut Attorney General Richard Blumenthal) began digging into some of the unpublicized fees the Kard charged its users. Between the cost of owning the card for a year ($99.95) to transaction fees ($2 per transaction), the Kard came under heavy scrutiny, so heavy that the Kardashians — after premiering the card with great fanfare — pulled out of the deal, less than happy with the publicity the card garnered.

Pop culture credit cards are nothing new, and have changed very little over the years, except for the celebrities featured. In the 1990s, branded credit cards featured Apple, Hulk Hogan, KISS, and Frank Sinatra. In the early 2000s it was Usher, Austin Powers, and Hilary Duff. Now in 2010, alongside the cast of Twilight, there are more than 30 pop culture credit cards geared specifically for teenagers according to a recent New York Times article.

Whether it is the decline in credit card users or targeting teens in their naïveté concerning finances and credit scores, picking up a pop culture card can be a very risky investment. Consider your options:

• While you can perhaps pick up a prepaid credit card with Taylor Swift, Justin Bieber, or The Green Lantern on it, keep in mind that you can also pick up a standard debit card from your bank that charges no additional fees for purchases, customer service, or to add money to the card.
• If you do opt for a pop culture credit card or a personalized credit card, check the documentation for any extra fees such as fees for increasing the credit line, transaction fees, monthly subscription rates, etc. (As mentioned earlier, the Kard is not the only culprit here.)
• Check the interest rates for these branded credit cards and compare them to standard ones.
• Consider other cards offering cash refunds, airline points, or hotel points as alternatives to the pop culture cards. Both may have extra fees or higher interest rates, but with reward cards there are more options than a celebrity staring back at you every month.
• Work with your teenager in credit management. Have them manage their own checking account. Make sure they pay their bills on time. Make sure  they understand the consequences of spending beyond your financial means.

With this reported drop in credit card usage this holiday season, consumers are getting savvier about how they spend their money; and with credit card companies turning to celebrity-endorsed credit cards, you should take a moment to read the fine print. It’s great to be part of the hip crowd; but is being hip truly worth the cost, particularly in the long run? Perhaps the run-of-the-mill credit card isn’t as slick as the celebrity-endorsed one, but when you consider the money saved in annual fees, interest, and other costs, you find out that the basic card, while not as trendy, is a smarter choice.

Today is Cyber Monday, the online version of Black Friday where vendors are marking down inventory and offering great holiday gifts at fantastic discounts. A full listing of today’s online deals can be found at CyberMonday.com; but if you are prowling the Internet for incredible deals, you might come across offers not covered on Cyber Monday’s official site…

…and this is where we at IDGuardian offer you some cautionary advice.

If deals found off the beaten path of the Internet sound too good to be true, many times they usually are. Along with last week’s post, IDGuardian is offering this “podcast replay” from Neal O’Farrell. Originally aired last year, this is Neal’s commentary on Black Friday, and helpful tips that work just as well for today’s online bargain hunting.

Our audio and video columns can be listened to in a variety of ways:

• Through the blog via the media player found in this blogpost
• Through a manual download by clicking on the “Download” link
• By subscribing through iTunes
  

Neal O’Farrell is a nationally recognized expert on cybercrime and identity theft. Neal is a board member of the Center for Information Security Awareness and the first to train an entire police department in identity theft awareness. He is also the founder of the Identity Theft Council, just launched this year in the San Francisco Bay Area.

This podcast is copyrighted 2009-2010, IDGuardian.com, All rights reserved.

Any use of the Content not expressly permitted by IDGuardian’s Terms of Use may violate U.S. or international copyright, trademark, and/or other laws. For questions or feedback please contact us at questions@IDGuardian.com.

Thank you for listening, shop smart,
and stay safe.

As the biggest holiday shopping days of the year quickly approach, consumers everywhere will be lining up at stores on “Black Friday,” (11/26) the ceremonial kickoff day for the holiday shopping season. For those that don’t want to fight the massive crowds at the malls and local shopping centers, they’ll surf the Web on “Cyber Monday” – the Monday right after Thanksgiving (11/29) – to catch even better sales, conveniently ordering their gifts online to have them shipped all over the world.

ID Guardian recommends the following safety tips for holiday shoppers:

1. Protect your computer from online threats including money-stealing Trojans. According to the Q1 2010 PandaLabs Report, Trojans accounted for 61 percent of all malware and continue to be the leading choice of cyber criminals for stealing personal information as well as bank and credit card details.  Cyber criminals are using more sophisticated Trojans to grab your bank account and credit card login information, disable your security software, and sneak into your bank account by pretending to be you. The best way to avoid Trojans is to (a) not open attachments or click on email links; (b) be careful where you surf and stick to online “neighborhoods” where you really feel safe; and (c) regularly patch your computer and update your anti-virus, anti-spyware and firewall software.
2. Take a tip from online merchants and “trust but verify.” A study conducted by BIGresearch found that about 32 percent of online shoppers will make their purchases on the web this year.  As more and more people turn to the Internet for their holiday shopping, it’s important to make sure the websites they are using are secure and legitimate. The best way to determine if a website is safe is to see if there is an “s” in the website address, i.e., https:// instead of http://.   Another way to make sure the website is safe is by looking for a closed padlock in the bottom of the screen; an open padlock indicates an insecure site. There are also tools available that securely store and enter user log-in data, preventing the information from being exposed to ID thieves. It also verifies the IP address of the site you are logging into to make sure it’s legitimate.
3. Be careful buying gift cards. Gift cards will remain the most requested holiday gift this year. One of the latest gift card scams to recently surface is the increase of fraudulent gift cards being sold on auction sites. Sellers on auction sites are also taking advantage of unknowing buyers by overstating the value of the gift cards so buyers don’t end up with the gift card amount they think they are purchasing. Be sure you are purchasing gift cards from a reliable source.
4. Avoid Tweet Traps! Scammers fully understand the power and reach of social networks, and gathering places like Facebook and Twitter are a feeding ground for all kinds of thieves this holiday season. The biggest threat to be wary of this year is the “Tweet Trap” – a message that appears to be from a trusted friend or follower passing on some great news, a real bargain, or a worthy cause, but instead hides spam, phishing fraud, or a malicious download. Consumers should be cautious about Tweets or Facebook messages about great holiday deals, must-have gifts, or hard luck stories, even if they are coming from “friends.” If they sound interesting, do your own research to see if they’re genuine, but don’t click or download!
5. If a deal sounds too good to be true, it probably is. This scam has focused on promising shoppers the hard-to-find gift at an irresistible price and in most cases, the gift doesn’t exist, doesn’t arrive, the seller demands far more for it, or simply steals the shopper’s credit card information. But this year, hackers are upping the stakes by hacking into the search ranking systems of the major search engines like Yahoo! and Google so that their fraudulent or malware-infected web sites appear at the top of shopper searches. And most shoppers still believe that if a Web site is at the top of a search engine’s list, it has to be legitimate.
6. Do NOT give out your financial information over the phone or email. If your bank or credit card company sends you an email or even calls you warning you of insufficient funds or other problems with your account, contact them directly using the customer service numbers posted on their web sites. Don’t respond to their emails or to any number they provide in an email or phone message.
7. Do a post-holiday credit health check-up. After the holidays are over, be sure to check your credit reports, credit card statements and bank statements to verify all transactions. Each transaction you made, either in retail stores or online, could have been compromised, adversely affecting your credit and your credit score. Notify your bank or credit card company immediately if you see anything suspicious.

Simple ways to protect yourself is to be vigilant about where you shop (online or at the mall), be aware of what information you provide and to whom, and to protect your computer from spyware, malicious code and Trojans. While we are “making spirits bright” during the holiday season, we must also practice a bit of common sense. Be safe. Remain vigilant.

Zero liability. It even sounds good. And it’s supposed to. It was coined by the financial industry and driven by federal laws to ensure that victims of identity theft and fraud would not be liable for unauthorized charges or withdrawals on their accounts.

In most cases, your liability for the actions of thieves, even if you can’t actually prove it, will be zero. Or at least close to – in some cases you are required to cover the first $50 yourself, sort of like a fraud deductable, but in most cases your bank or credit card company will waive this too. All in the interest of a happy and loyal customer.

Not so in the case for a Georgia couple unfortunately, when they noticed that the more they put into their bank account, the lower the balance fell. So they immediately contacted their bank, who investigated and quickly found more than $1,000 in unauthorized charges.

The bank agreed to honor their zero liability pledge and did return most of the stolen funds. But it kept happening, and it seemed like the bank quickly adopted a policy of zero goodwill and refused to refund the couple’s newly lost money.

Why the sudden change? Apparently the couple made the cardinal mistake of not closing their compromised bank account and starting fresh with a new one. It’s always recommended that if your bank account or ATM card or PIN are compromised, your best bet is to close or cancel them quickly, and start fresh with a new account, number, card, PIN etc.

But for many bank customers, that can be a complicated and inconvenient process, and they’re not actually required by law to do it. And of course if your bank doesn’t demand the change either, you could be forgiven for assuming that your bank is OK with the idea. After all, a fraud has been discovered and the bank should be watching the account extra carefully.

As the saga continued, not only did the bank stop cooperating with the victims in this case, the bank started to charge overdraft fees on the couple’s account because the frauds had created a negative account balance at some point.

The victims finally agreed to close the account. But as if to reinforce just how insensitive a bank can be to the plight of fraud victims, within just weeks of the event the couple started receiving phone calls from debt collectors hired by the bank to collect the $153 in overdraft fees.

The reality of zero liability is that if the bank can find any reason to refute the victim’s claim, they can simply refuse to refund any lost money. The only option for the victim may be a long and costly lawsuit, which may not be realistic for a relatively small amount of money.

Lessons learned?

• Don’t rely on zero liability to always protect your accounts and funds, and to make you whole.

• Always have a backup plan in case your account is compromised and you can’t access funds or pay bills. A separate savings account is a good idea, just as long as you can make quick and penalty-free withdrawals in an emergency.

• In the event of bank account fraud, it’s always best to immediately close the account, and get a new account number, ATM card and PIN. It still won’t guarantee zero liability, but it will reduce the risk of the same crime happening again, and helps prove to the bank that you’re serious.

RELATED STORY: Couple says they’re victims of identity theft and their bank made it worse

http://www2.wsav.com/news/2010/jul/16/couple-says-theyre-victims-identity-theft-and-thei-ar-590713/

Do you plan to sell your home soon, or already have it on the market? If you do, you might want to be aware of a growing scam that is so easy to pull off you can expect to see a sharp rise as the housing market continues to struggle for air.

A homeowner called me to report that when he arrived home yesterday morning, he found a young couple at his front door asking to take a look around the house he had for rent.

He quickly explained that they made a simple mistake – his house was in fact for sale, not for rent. But it is for rent, the visitors corrected him, and showed him the ad they printed off Craigslist.

And sure enough, there was his house, in fine detail, including photos, advertised for rent on Craigslist. And at the knock-down price of just $1,200 a month for a completely remodeled 3-bedroomed home in a very nice neighborhood. The ad even had his correct name, although with an email address he didn’t recognize.

This kind of scam is growing nationwide, and while it requires a little creativity on the part of the thieves, the payoff can be worth it. The thieves use the Multiple Listing Service, or MLS, that realtors across the country use to list homes for sale, and simply select at random homes they want to target.

They then create phony ads using the real information from the selected listings, keeping the real address, and offer to rent the property at an unbelievably low price to the right renter. They usually offer some kind of excuse for the low price and sense of urgency, like the owner just got a great job offer abroad and wants to get a tenant in quickly.

What the thieves want is the personal information of the interested tenants – their names, addresses, phone numbers, and employers. They’ll even ask for a Social Security number so they can run a credit check on the potential tenant and get them into their dream home as quickly as possible.

A single advertisement can ensnare potentially dozens of victims at a time, and the first time the victims realize they’ve been duped is when an irate homeowner tells them to get out of his yard.

But it can get even trickier. In one version of the scam, the thieves try to go one step further and trick the innocent tenant into paying a cash deposit to hold the property for them. The thieves are preying on one human weakness that is the secret ingredient for so many scams – the willingness to ignore the obvious warning signals when a deal appears too good to be true.

In this case, the homeowner had to deal with a number of unwelcomed callers before Craigslist took down the fake ad, and he worries that some of the disgruntled home hunters may become violent and blame him.

Lessons learned?

• The best way to protect yourself against all kinds of scams is to follow one simple golden rule – if in any way it doesn’t sound right, logical, or legal, it probably isn’t and you should probably pass on it.
• Never give your personal information to a complete stranger, no matter how convincing they sound or how desperate you feel. Do your research first.

Welcome to the IDGuardian Podcast. These audio and video columns can be listened and or viewed to in a variety of ways:

• Through the blog via the media player found in this blogpost
• Through a manual download by clicking on the “Download” link
• By subscribing through iTunes
  

This episode features Neal O’Farrell, an expert on cybercrime and identity theft, and the Consumer Security Adviser for Intersections Inc. Neal is a board member of the Center for Information Security Awareness and the first to train an entire police department in identity theft awareness. That program has since been used by more than 200 police departments and academies, as well as the FBI, the DMV, and U.S. Attorney’s Office.

This podcast is copyrighted 2010, IDGuardian.com, All rights reserved.

Any use of the Content not expressly permitted by IDGuardian’s Terms of Use may violate U.S. or international copyright, trademark, and/or other laws. For questions or feedback please contact us at questions@IDGuardian.com.

Thank you for listening,
and stay safe.

A national law enforcement official who oversees a program to protect the elderly recently told us that fraud against older people is on the increase.

We see these heart-breaking cases everyday at ITAC: older people victimized by a con artist, family member or friend. They take advantage of the older person’s loneliness, generosity, and in some cases, diminished mental capacity.

Consumers who want to protect their older friends and family can take a page from the playbook of financial services companies, who are often the first to detect fraud against older persons. BITS, a division of The Financial Services Roundtable, recently published Protecting the Elderly and Vulnerable from Financial Fraud and Exploitation, a toolkit to give employees guidance on how to identify and respond to fraud and abuse.

Here’s are some of the “red flags” that may be a sign of fraud:

• Vulnerable adult has no knowledge of a newly-issued ATM, debit or credit card.
• Discovery of a vulnerable adult’s signature being forged for financial transactions or for the titles of his or her possessions.
• A set of “out-of-sync” check numbers.
• A sudden flurry of “bounced” checks and overdraft fees.
• Transaction review shows multiple small dollar checks posting to the senior’s account in the same month. This could be indicative of telemarketing or charity scams.
• Large withdrawals from a previously inactive checking or credit account or a new joint account.
• Abrupt increases in credit or debit card activity.
• Sudden appearance of credit card balances or ATM/debit card purchases or withdrawals with no prior history of such previous use.
• Withdrawals or purchases using ATM or debit cards that are:
  • Repetitive over a short period of time
  • Inconsistent with prior usage patterns or at times (e.g., late night or very early morning withdrawals by elderly customers, withdrawals at ATMs in distant parts of town by customers who don’t drive or are house bound.)
• Vulnerable adult appears confused about the account balance or transactions on his or her account.
• A caregiver appears to be getting paid too much or too often.
• Significant increases in monthly expenses paid which may indicate that expenses for persons other than the customers are being paid.
• Sudden changes in accounts or practices, such as unexplained withdrawals of large sums of money, particularly with a vulnerable adult who is escorted by another (e.g., caregiver, family member, “friend”) who appears to be directing the changing activity patterns.
• Vulnerable adult acknowledges providing personal and account information to a solicitor via the phone or email.
• Excitement about winning a sweepstakes or lottery.

We know by now that identity thieves are reaching far beyond credit card shopping sprees. A major risk for homeowners nowadays is mortgage fraud, which has been a huge contributor to this nation’s housing crisis. The Federal Bureau of Investigation (FBI) reported that 67,190 mortgage fraud suspicious activity reports (SARs) were filed in 2009 with more than $1.5 billion in losses.

The FBI also estimates annual losses between $4 – 6 billion, and statistics show that many victims of mortgage fraud do not discover misrepresentation or other fraudulent activity until almost two years after it has occurred.

Mortgage fraud schemes, like “liar” loans and application misrepresentations, are tough to spot and even harder to stop… but not impossible.

Mortgage fraud is preventable and there are key steps consumers can take now to stay safe from the threats. So as home buying season kicks off this month, educate yourself. Below is a list of top 10 consumer tips for detecting and avoiding a mortgage fraud scheme.

Top 10 Consumer Tips for Combating Mortgage Fraud:

1. Periodically check all of your home information with the recorder of deeds in your county.  If you discover any paperwork you don’t recognize, immediately contact your mortgage company and county authorities.
2. If you receive any statements or similar information from a mortgage company that is not yours, read the documents carefully and contact the company immediately to alert them to a discrepancy.
3. Beware of any offer that promises to “rescue” you from foreclosure, including loan modification programs that purport to be affiliated or approved by the government.  Do not make payments to any entity other than your mortgage lender or cease communications with your lender.
4. If you are at risk of foreclosure, your mortgage lender should be your starting point.  If you are considering third parties, make sure you transact only with qualified and approved credit counselors.
5. Get referrals for realtors and mortgage banking professionals. Check the licenses of the industry professionals and their company with state and local regulatory agencies.
6. Don’t assume that your lender has captured all of your personal information accurately. Check your application against the final loan documents to ensure that the information is correct and complete.
7. Understand what you are signing and agreeing to and do not sign any blank documents or similarly, forms that contain blank spaces. If you do not understand an agreement, re-read the documents or seek assistance from an attorney or trusted third party.
8. Check your credit report and public records information before refinancing your mortgage or purchasing a home and check again a few months later to make sure that if your personal information was stolen, it is not being used against you.
9. Report any suspicious activity to relevant federal agencies like the Federal Trade Commission as well as your local and state consumer protection agencies.
10. Finally, just as with any other offer, if a mortgage opportunity sounds too good to be true, it probably is!

According to the 2010 Javelin Strategy & Research Identity Fraud Survey Report, names and home addresses continue to top the list of critical personal data stolen by identity thieves. April through July has historically been the busiest time of year for home buying and selling. During these months, neighborhoods across the country are filled with moving trucks as homeowners, renters and their families move on from the old to the new. A lot goes into packing and moving a home and often times certain things can get overlooked – like the safety and security of a mover’s personally identifying information (PII).

Something as simple as a misdirected bank statement could end up in the wrong hands resulting in a compromised identity. Most homeowners don’t think twice about installing a security alarm in their new home after a move and often times activating the system can be done in a few simple steps. Along the same lines, if homeowners would take the same steps required to help protect their identities, they would be providing themselves and their families with invaluable protection.

Here are a few simple steps a homeowner can take to protect their identity from fraudsters before, during, and after a hectic move:

1. Before your move, make a list of all personal mail you receive on a regular basis. Notify banks, financial institutions and creditors of the move and redirect all paper statements and sensitive financial mailings to your new address, or, consider switching to online statements. The 2010 Identity Fraud Survey Report from Javelin Strategy & Research found that consumers who utilized electronic statement monitoring took less time to detect incidents of fraud and paid lower mean consumer costs ($116 vs. $274) than those monitoring paper statements. Make a checklist for:
   • Retirement accounts/Banking Institutions/Credit Card Companies
   • Utility companies (electric, gas, water, cable, etc.)
   • Insurance companies (medical, property, renters, fire and auto)
   • Local government agencies, federal agencies & the IRS
   • Healthcare providers
   • Schools
   • Suscriptions (magazines, newspapers, etc.)
   • Memberships
2. Submit a Change of Address request through the post office. Once the request has been filed, be on the look-out for a confirmation from the Postal Service and use this to verify your new information has been correctly updated. Mail should start to arrive at your new address within 7 to 10 business days after filing.
3. Shred all important documents and paperwork that will not be coming with you. Thieves will often go through garbage in search of things like pre-paid credit card offers that they can alter and use to create new accounts in your name. A decent shredder can cost as little as $50 and can be a very worthwhile investment. Make sure you are properly disposing of your shredded materials yourself – do not leave the task for anyone else to complete on your behalf.
4. Monitor bank and credit card statements for suspicious activity. Consider enrolling in an identity protection service that not only helps you monitor activity related to your credit, but also helps protect your computer, public records, and even mobile devices – all things that could have been impacted by the move.
5. Mover fraud is becoming more commonplace in the U.S. To avoid becoming a victim, do your due diligence and thoroughly research moving companies in your area. Ask for recommendations from trustworthy friends, family members, and real estate agents. And check with the Better Business Bureau to ensure the mover has a solid reputation. You should also make sure the mover is registered with the Federal Moto Carrier Safety Administration (FMCSA) and has a U.S. Department of Transportation (USDDOT) number before signing any agreements or obtaining an estimate.
6. Transfer all important physical documents that will be making the move, such as wills, stock certificates, bonds, etc., to a safe and secure place such as a locked box or an online secure vault. Keep the physical documents with you during the move and do not leave any secure receptacles for movers or others to transport.
7. Lock down your computer. Devote time and resources before your move to make sure all computers in your home are hack-proof and packed and out of sight before movers arrive. Take all computers, hard drives, and other external storage devices with you during the move.
8. Make sure you are present for the entire duration of the move. Your presence could deter potential theft from occurring and you can rest assured that your personal belongings are being taken care of properly.
9. After the move, verify that you are receiving all mail from the list of senders you identified and contacted beforehand. If something is missing or does not start arriving at your new address, contact the company immediately to confirm the address change and make sure that nothing is going to the old address.
10. Take time after the move to create a secure zone for the storage of secure data and to serve as a place where sensitive transactions like book keeping takes place. Update your computer security technology and consider tightening the physical security measures on the premise.

With graduation season closing in, we have presented commentary on the graduate’s Social Media and Credit Footprints, long-lasting impressions that can make an impact on a person’s reputation particularly in the working world. If you are graduating, or know someone who is about to take that walk to accept academic accolades, extend to them this checklist for peace-of-mind and security when entering the commercial sector:

• More organizations are now using social media as a way to discover and hire new interns and employees. Check your social media profiles before starting a job search. When reviewing your Social Media footprint, remove:
  • Incriminating pictures, videos, and unfavorable comments posted on Facebook, blogs, Twitter, and other social networks.
  • Personal details and opinions about friends, politics, or other topics that could be misinterpreted if taken out of context.
  • Unfavorable opinions about a job interview that could get back to a potential employer.
• Take an objective look at your social media profile or have your parent or friends review it before reaching out to prospective employers.
  • Ask yourself if you are comfortable sharing your social media profile, as it exists today.
  • Conduct a thorough search of your online identity by googling your name
  • Review all social networks you are are enrolled in for personal references. Also check inactive accounts that may not have been cancelled.
  • Before sharing any personally identifiable information (PII) with any vendors, online or in the Real World, ask three important questions:
    1. Who needs to know?
    2. Why do they need to know it?
    3. How is this information being protected?

• Credit cards can be deceptively easy to use, particularly when virtually anything can be purchased with them. According to United College Marketing Services, on average, college students carry 2.8 credit cards with a balance of $885. How you manage credit today will impact you now and in the future. Consider:
  • Pay credit card bills on time, doing so will help you build a strong credit history. Missing just one payment or simply paying a bill a few days late can have a significantly negative impact on credit. Pay your credit cards on time and completely, if possible. Use credit cards wisely by paying off balances each month, charging only what is necessary.
  • Credit scores will impact what interest rate you receive on new loans, your ability to rent an apartment and to secure utilities including phone, electric, and gas, as well as undergoing employment background screening.
  • Review all three credit reports from the major Credit Reporting Agencies (CRA), available for free (one time per year) at www.annualcreditreport.com.
  • Enroll in credit and public record monitoring services so you can be alerted to changes to credit reports and to non-credit information (utilities, cell phones, etc.), and respond quickly to potentially fraudulent transactions. For more information visit:
    • Credit.com
    • IdentityGuard.com
    • ITACSentinel.com

A resume personifies a person’s experience and achievements based on their own perception. Credit profiles and public information convey a much more pragmatic story, and can either positively or negatively impact a person’s reputation. As mentioned in Part I, with education comes vigilance and with vigilance comes empowerment. It is essential, particularly in this Digital Age in which we live, thrive, and conduct commerce, to protect our unique identities and improve upon credit. We are sharing more and more information online, and while — once upon a time — it was easy to dismiss it as “Who will find it online?”, the rise of Social Media and the ease of information gathering via smartphones and iPads have now made personal information protection part of our daily lives.

Proactively take control of your credit and personal identity. It is never too early to take control of your credit and Social Media presence.

In a recent posting, we advised college graduates to take a serious look at their social profiles with a particular focus on existing accounts with social networking sites. Now we turn our focus to credit profiles, and the relevance they play in job searches, new purchases, and house rentals or buying.

Credit is and will continue to be an integral part of our everyday lives and unfortunately, many adults, even those with business degrees, never learn the importance of maintaining and building good personal credit. The majority of students entering college are experiencing their first taste of freedom: no curfews, no daily parental guidance, and trial and error experiences that will help them grow personally and professionally. Credit card companies love college students, and enhance students’ new found independence with “free” money. It starts innocently enough, but as time goes on, students can and often do get in over their heads.

According to United College Marketing Services, on average, college students carry 2.8 credit cards with a balance of $885.   Since plastic can be deceptively easy to use, particularly when virtually anything can be purchased with a credit card – from the occasional meal at McDonalds to groceries to more extravagant purchases such as concert tickets and spring break vacations – it’s easy to understand how a small balance can quickly rise. If a student pays their bill on time, they can build a strong credit history that will benefit them in both the short and long run. But missing just one payment or simply paying a bill a few days late can have a significantly negative impact on their credit. Credit scores, the most familiar being  FICO, rate credit from “Very Poor” with a score starting at 350, to  “Excellent,”  having a  top score of 850. Credit scores are used to rate creditworthiness, including credit card balances versus credit limits, total debt, payment history, derogatory payments, and other key factors.    This score will determine the interest rate they  get on a new loan,  will weigh in on their ability to rent an apartment, to secure utilities including phone, electric, and gas, and interviewing for a job and undergoing employment background screening, a key factor in the hiring process.

Credit is important but good credit is essential. For students who are just entering school, remember to use those credit cards wisely, pay off balances each month, and charge only what is necessary. For new college graduates, while their credit history may be short, it is important to take the time to review all three credit reports from the major Credit Reporting Agencies (CRA), available for free (one time per year) at www.annualcreditreport.com.

Recent findings from the Javelin Strategy & Research 2010 Identity Fraud Survey Report revealed that younger consumers (18-24) suffer the highest fraud incident rates and take the longest time to detect fraud. Awareness of credit and personal information is key to protecting everyone’s most valuable personal asset — their identity. We strongly suggest that college students and graduates enroll in credit and public record monitoring services so they can be alerted to changes to their credit reports and to non credit information (utilities, cell phones, etc.) and respond quickly to potentially fraudulent transactions. Credit.com, IdentityGuard.com, and ITACSentinel.com provide helpful tips on credit management and identity theft protection.

It’s never too late to improve upon credit. Good financial health will save time and money both now and in the future. We encourage adults of all ages to proactively take control of their credit and personal identity. A resume personifies a person’s experience and achievements based on their own perception. A social identity is created by an individual and shaped by the virtual participation of ‘friends.’ Credit profiles and public information convey a much more pragmatic story that can have a positive or negative impact on a person’s identity and possibly result in denial of credit and employment opportunities. The good news:  it’s early enough in the credit cycle for graduates to take control of their credit and to make a difference in their future.

It is hard to believe that IDGuardian launched only four months ago (September 11, 2009 as a matter of fact); and in such a short time, we have brought you sound advice, different perspectives, and forward-thinking opinions on the subjects of Identity Theft, Credit Security, and Online Safety.

If you are new to IDGuardian, thank you for joining us. We have, at the closing of the year, compiled the “Best Of” from 24 blogposts so you can get a feel for what you will find here. For those of you already subscribed to IDGuardian, thank you for joining us and we hope you enjoy this retrospective of a new blog.

Take a look at what we have deemed the “notable bytes” from 2009 and feel free to leave your own favorite blog or podcast entry in the Comments section.

.

September

The ironic twist is that the burglars who use your own freely-offered personal life story to target your home when you’re not there are in fact not looking for your new TV or X-Box. What many of them are after is your Social Security number, birth certificate, financial statements and anything else they can use to clone your identity and hijack your life.

— Neal O’Farrell, When a Stranger Comes Calling

A more common method is to launder the money, once again internationally.  Many times this is done through unsuspecting money mules.  A typical scenario involves a mass spam campaign advertising to the recipient that he/she can make hundreds or thousands of dollars a week working from home.  Or then there’s the “you’ve won the Spanish lottery” spam, or the “you can recover this bank account you forgot you had” spam.  In all these cases, the point is to swindle the money mule into sending legitimate funds to the con man.  If it’s a straight on con, then they just keep the money.  If they’re laundering money, then they will actually send back some amount of “dirty” money in exchange for your “clean” money.  Now you’ve not only been cheated, but you’re part of an international identity theft and money laundering scheme.

— Matt Sarrel, Identity Theft: An International Consipracy

October

What [hackers are] usually after is personal information that can be used in identity theft. So just think of the information you may already post and share that hackers could use in identity theft – information like your name, date of birth, home address, work address, current employment, employment history, mother’s maiden name, family, friends, pets, your first school, favorite teacher, vacation plans, likes and dislikes, even photos of you and everyone you know. The list is endless.

— Neal O’Farrell, What Social Networks Really Reveal

But while the hype cycle of social networking risks may be at an all-time high, it’s hard to argue that the emergence of the Web 2.0 sites and applications hasn’t created a complex new set of privacy concerns that end users need to worry about.

The social networks themselves have already become breeding grounds for many different types of electronic attacks and social engineering schemes with most of those threats aimed at somehow stealing your personal data, infecting your computer or using your online reputation to assail those with whom you’re connected.

— Matt Hines, Social Networks Increase Risks to Online Privacy

Identity theft – by whatever name we choose to use – is a real problem, and will continue to be for many years. The world is digital – our transactions, communications, and relationships are tracked by marketers, read by virtual friends, and if not secure, vulnerable to fraudsters.  We can’t change the evolution of technology, nor should we, but we can become smarter about how we use it, who we transact with, the information we divulge, and most importantly, how we secure and monitor our personal information. Education is the first step to understanding the risks. When consumers educate themselves, useful services will dominate the market.

— Michael A. Stanfield, A Reply to Ms. Julia Angwen at the Wall Street Journal

Consider the possibilities for someone to carry out a physical assault, let alone a virtual attack, if they know who you are and where you are at any given time. If I was someone looking to rob your house or a jilted ex-boyfriend planning to stalk your movements, these seemingly innocuous tools would seem to provide a lot of helpful information to do that.

In the computing world, these applications, like other social media tools, unquestionably add another level of risk in terms of allowing someone to create targeted attacks to assail you with in assuming your likeness for identity fraud.

— Matt Hines, Mobile Web Driving New Privacy Issues

November

Many of us have established habits and lifestyles that, quite frankly, we don’t want to change. We like the convenience and benefits associated with loyalty/rewards programs, online shopping, and social media networks. Our information is already in cyberspace in so many different shapes and forms that it’s not likely we can pull it back and start over again. But we don’t need to panic. What we can do is be more vigilant about who we share our information with and ask why it is needed. Does the retailer really need your phone number? (They don’t; it’s for marketing purposes only.) Does your son’s baseball team really need a birth certificate? (Have them verify your son’s age at school.) Ask questions and if you don’t like the answer you get, don’t provide the information.

— Michael A. Stanfield, Lost in Translation

These rules may seem inconvenient or overly cautious to many consumers, but they are designed to help you by keeping the crooks from pretending to be you.  My goal is to make identity theft prevention a part of our learned safety behaviors, like putting on a seatbelt.  You don’t think twice about it.

— Anne Wallace, Be Prepared to Establish Your ID When Red Flag Rules Go into Effect

One of the best gifts scammers will get this year will come from retailers. Shoppers and analysts are already reporting shortages of the hottest Christmas gifts this year, as retailers try to avoid getting stuck with merchandise that they can’t move quickly.  This inventory shortage may force some shoppers to take greater risks than they normally take, and  scammers won’t miss the opportunity to take advantage of busy shoppers who are so determined to get that elusive holiday gift this year that they are willing to do whatever it takes.

— Neal O’ Farrell, Why Black Friday Could Be a Red Carpet for Scammers

Talk to your kids about the importance of their Identity. Teach them not to fill out forms online or offline to win a car, a cruise, or any other freebies in magazines, restaurants, etc.  More often than not, those are marketing ploys and their personal information will be shared across many marketing databases. Parents should carefully monitor all Internet activity and stay actively involved with who their kids are meeting online. They should also keep kids out of Internet chat rooms. Predators are just as real online as they are in public places.  All they need is an unsuspecting child to provide their name and home address, and they could track them down.

— Identity Safety for Your Child

December

Think before you tweet (Twitter), or post anything on Facebook, MySpace, or YouTube. Always assume that what you say, how you say it, and to who you say it will always be only a search away from friends, potential employers, stalkers, Internet predators, etc.

— Identity Safety for Your Teens

— Jerry Thompson, Threats Facing Consumers Online

According to Facebook’s new privacy policy, if you don’t select your own privacy settings Facebook will automatically do it for you, and to a standard that you might not be comfortable with.

For example, under current privacy settings people who are not friends can’t even see your marital status, gender, photo, or location. Under the new default settings, this information will now be open for everyone to see unless you go in and change your personal privacy settings.

— Neal O’Farrell, Saving Facebook

A number of organizations including the National Association of Attorneys General and vendors including Intel, Google and Microsoft recently announced the establishment of “Data Privacy Day” which will be observed on January 28, 2010, and involve a number of promotional events meant to raise consumer privacy awareness.

In more targeted efforts, a group of leading Internet publishers and digital marketing services recently launched an online campaign to educate consumers about how they are tracked and targeted by marketers over the Web. The Interactive Advertising Bureau (IAB) unveiled a related “Privacy Matters” Web site and a number of IAB members including Yahoo, Google, Walt Disney Co. and The New York Times Co. have volunteered to support the effort via links featured prominently on their own pages.

— Matt Hines, Searching for Bright Spots

As you can see by the amount of information (and these are the highlights!) here, IDGuardian has delivered valuable insight and information regarding identity protection and personal safety both in the real and virtual world.

This is, also, merely the beginning.

IDGuardian will, in 2010, bring you the voices showcased here along with new contributors and new features geared to start dialogues and get you thinking. Awareness and education are key in protecting yourself, and IDGuardian is here to do both of these and so much more. We hope that we have aided you in making the latter quarter of 2009 a safe one, and assure you that IDGuardian will continue to offer you tips, advice, and guidance in the coming year.

Thank you for commenting, for subscribing, and for taking part in our community. Celebrate safely, and we will see you in 2010.

For those of you following IDGuardian on Twitter, you may have noticed a change in how we are posting our popular TwitterTips. We have been thrilled with the amount of “retweets” (circulating attributed postings in other Twitter feeds) our TwitterTips have earned; but after talking with our network, a change was needed.

Originally, when we went online back in September, our TwitterTips originally looked like this:

IDGuardian TwitterTip: Perform random online searches of your name in order to find out what personal information is available.

In October, the format changed to:

TwitterTip: At 18 years of age, your credit is compiled and reported to the credit reporting agencies.

Now, our TwitterTips will appear in your feeds in this fashion:

In June 2010, the FTC will enforce “Red Flag” rules, designed to prevent identity fraud. (from @IDAssistanceCTR) #creditsecurity

The previous posting is still an IDGuardian TwitterTip; but here is what you need to know about our new approach to this old favorite:

Character Conservation. If you are new to Twitter, you will know that all the postings (or tweets) are limited to 140 characters, and those 140 characters include spaces. The earlier TwitterTips with their headers used valuable characters, making it difficult for others to retweet without dramatically editing the original post. Many users were removing the header, so in “rethinking the retweet” we decided to conserve on the characters and streamline our TwitterTips.

Trackable Tweets. You may notice in the new format a pound sign connected to a term. These are known as hashtags. Hashtags are keywords used within a tweet to track it via Twitter Search. This way, by establishing a hashtag as part of a tweet or  conversation, you can create a Trending Topic on Twitter, thereby increasing visibility. At present, the hashtags we are using are:

• #onlinesecurity
• #idprotection
• #creditsecurity
• #scam

By incorporating the hashtag, we can now make it easier to track who is talking about our TwitterTips and where they are being circulated.

Keep an eye out for our TwitterTips that still carry that same reliable news or helpful insight IDGuardian is known for, just in a more compact format. Thank you for following us on Twitter and here at our blog. Feel free to leave a review for our podcast on iTunes, and continue to share with us your thoughts, opinions, and reactions to the columns featured here.

Welcome to the IDGuardian Podcast. These audio and video columns can be listened to in a variety of ways:

• Through the blog via the media player found in this blogpost
• Through a manual download by clicking on the “Download” link
• By subscribing through iTunes
  

This episode features Neal O’Farrell, a nationally recognized expert on cybercrime and identity theft. Neal is a board member of the Center for Information Security Awareness and the first to train an entire police department in identity theft awareness. That program has since been used by more than 200 police departments and academies, as well as the FBI, the DMV, and U.S. Attorney’s Office.

From the IDGuardian Administrators: Due to the timeliness of this subject matter, IDGuardian has released this morning’s column as a podcast. Have a listen and share with those in your network these helpful Holiday shopping tips from security authority, Neal O’Farrell.

This podcast is copyrighted 2009, IDGuardian.com, All rights reserved.

Any use of the Content not expressly permitted by IDGuardian’s Terms of Use may violate U.S. or international copyright, trademark, and/or other laws. For questions or feedback please contact us at questions@IDGuardian.com.

Thank you for listening,
and stay safe.

From the IDGuardian Administrators: Due to the timeliness of this subject matter, IDGuardian will also be, later today, releasing this column as a podcast. Enjoy the read, have a listen, and share with those in your network these helpful Holiday shopping tips from security authority, Neal O’Farrell.

As many Americans start preparing for a busy holiday season, cyberthieves are fine tuning their scams in anticipation of a bumper crop of victims who will be presented with scams so convincing they’ll gladly invite them into their homes like a group of cheery carol singers.  As in years past, scammers have perfected the art of social engineering – getting inside the heads of victims so they can deliver scams many victims won’t recognize until it is too late.  And looking to profit from the soft economy, criminals are preparing to exploit money-conscious consumers whose need for some good luck might overcome their normal caution.

One of the best gifts scammers will get this year will come from retailers. Shoppers and analysts are already reporting shortages of the hottest Christmas gifts this year, as retailers try to avoid getting stuck with merchandise that they can’t move quickly.  This inventory shortage may force some shoppers to take greater risks than they normally take, and  scammers won’t miss the opportunity to take advantage of busy shoppers who are so determined to get that elusive holiday gift this year that they are willing to do whatever it takes.

This holiday season there will be the inevitable rehash of the same scams we’ve seen in previous years, but the tides have changed and the scammers are becoming more professional, convincing, and ultimately, more effective.  Today’s breed of cybercriminals now pose the greatest threat to holiday shoppers because they have the skills, savvy, and resources to con even the most battle-hardened shopper.

Some of the newer scams you may come across include:

• Which Tweeples Can You Trust? Don’t Fall for the Tweet Trap! Scammers fully understand the power and reach of social networks, and gathering places like Facebook and Twitter are a feeding ground for all kinds of thieves. The biggest threat to be wary of this year is the “Tweet Trap” – a message that appears to be from a trusted friend or follower passing on some great news, a real bargain, or a worthy cause, but instead hides spam, phishing fraud, or a malicious download.
• Need to Make More Money Fast? How Your Dream Job Can Turn Into a Complete Nightmare. With so many people facing a tougher holiday than usual, it is not surprising that heartless crooks will try to appeal to consumers’ emotions with offers of instant income and risk free financial solutions.  One of the most dangerous versions of this scam advertises very appealing and convincing part-time jobs, with no experience or training required.  Behind this scam lies a very sophisticated and well-orchestrated criminal system that scams banks, credit card companies, consumers – and ultimately job hunters.  The job specifications typically require the job applicant to simply receive and then forward packages on behalf of a foreign company, and get paid thousands of dollars a month for what seems like easy work. The new employees quickly finds themselves “promoted” into receiving and forwarding payments instead of packages, which should be another red flag for most of us. Of course, the packages and payments turn out to be obtained fraudulently, turning that dream job into a costly nightmare and often turning the job seeker into a criminal accomplice.
• Trojan Infections: The Gift that Keeps on Giving (Your Money Away!) The goal for many hackers this year will be to give you their own special gift, like a Trojan infection on your computer. Once in residence on your computer, these Trojans can easily grab your bank account and credit card login info, disable your security software, and sneak into your bank account by pretending to be you. Trojans are even smart enough to quietly drain your bank account over the holiday period based on the assumption that you’ll be too busy to check exactly how much you’re spending until the New Year.
• Attaining the “Rare Find” Gift – Too Good to Be True? You bet. Traditionally this kind of scam has focused on promising shoppers the hard-to-find gift at an irresistible price. In most cases the gift doesn’t exist, doesn’t arrive, the seller demands far more for it, or simply steals the shopper’s credit card information.  But this year, hackers are upping the stakes by hacking into the search ranking systems of the major search engines like Yahoo! and Google so that their fraudulent or malware-infected web sites appear at the top of shopper searches.  And most shoppers still believe that if a Web site is at the top of a search engine’s list, it has to be legitimate.

The good news is that you can slam the door on scammers, and all it takes is a little common sense:

• Take a tip from online merchants and “trust but verify.” Whether it’s online shopping searches, incredible gift offers, or holiday wishes from your Twitter “Tweeps” or Facebook friends, the best way to avoid gift-wrapping yourself for scammers this year is to turn your cynicism on to the highest level.  If you think before you click, you might just play Grinch to an identity thief.
• If your bank or credit card company sends you an email or even calls to warn you of insufficient funds or other problems with your account, contact them directly using the customer service numbers posted on their Web sites. Don’t respond to their emails or to any number they provide in an email or phone message.
• Watch your bank account balances daily. Trojans are smart enough to quietly drain your bank account over the holiday period based on the assumption that you’ll be too busy to check exactly how much you’re spending until the New Year.
• Don’t give a gift to digital burglars by Tweeting about your holiday plans (like when you’re going to be out of town) or all the cool stuff you bought.  Otherwise your new purchases may end up under someone else’s tree.
• Close the door on Trojans. The best way to avoid them is to:
  1. NOT  open attachments or click on email links
  2. Be careful where you surf and stick to “neighborhoods” where you really feel safe
  3. Regularly patch your computer and update your anti-virus and other security software.
• Give someone the gift of an identity monitoring service. It might not sound romantic, but it’s one of those gifts that will truly keep on giving, and will be treasured forever.

For years I’ve said that identity theft is a complex problem that requires cooperation between consumers, business and law enforcement.  In June, 2010, the Federal Trade Commission (FTC) will begin enforcing the “red flag” rules on thousands of businesses and organizations with consumer accounts.

The rules are designed to prevent identity fraud and require businesses that handle sensitive consumer information to have a plan in place to detect suspicious activity, or patterns of activity, that could result in fraud.  The rules affect a host of accounts, including credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking accounts and savings accounts.

Most consumers won’t experience any changes in the way you do business with these companies.  But in case you trigger a red flag, or plan to open a new account after June 1, you should be prepared to confirm that “you” are really “you” and explain facts that can trigger a “red flag.”

For example, a red flag could be triggered if your address on a credit application doesn’t match the address on your credit report, or if there is a fraud alert on your credit report. Expect the creditor to take extra steps to authenticate your identity by requesting additional identification or by asking questions only you can answer.

You should prepare for added scrutiny when opening a new account or applying for a loan.  First, take more than one form of identification – a drivers license and a passport or other government-issued identification document.  Second, be prepared to answer one or more probing questions about yourself or your financial affairs – addresses of past residences or the name of the company that hold your mortgage.

These rules may seem inconvenient or overly cautious to many consumers, but they are designed to help you by keeping the crooks from pretending to be you.  My goal is to make identity theft prevention a part of our learned safety behaviors, like putting on a seatbelt.  You don’t think twice about it.