Credit Card Blog: ID Theft

Showing posts with label ID Theft. Show all posts

Wednesday, October 27, 2010

ID Thief Nabbed After 35 Years

How long can one man live under an assumed (and stolen) identity? If that man is Clark Lee Mower of Seattle, the answer is 35 years.

It’s said that the worst thing you can steal from someone is their good name. According to prosecutors, that’s exactly what Mower did to his victim when he made off with the man’s identity, caused trouble with the IRS, racked up over $139,000 in debt, and declared bankruptcy.

The victim of the identity theft spent a great deal of time and effort clearing up his credit following Mower’s bankruptcy in the 1980’s. Then, when the victim tried to buy a house in the late 90’s, he learned that Mower’s activities disqualified him for a mortgage loan. Luckily, the victim was able to use the services of a local credit union that knew of the identity theft.

Mower had also been using the victim’s identity to receive government benefits and medical care. He was arrested on July 29, and faces charges of aggravated identity theft.

Card Issuers Find Loop Holes in New Credit Card Legislation

The Credit Card Accountability, Responsibility and Disclosure act, which passed in May 2009, was supposed to protect the general public from high interest rates and irresponsible acts made within the credit industry - as well as allow the government to better regulate this side of banking.

We have seen many positive things come from the legislation, but only a year later many card issuers have found loop holes to pass their higher costs on to customers, according to an article on the Wall Street Journal.

The main protection the Credit Card Accountability, Responsibility and Disclosure Act provides the public is from credit card companies raising interest rates on existing accounts, and on accounts that are in their first year of being opened.

Some examples of loop holes being used by credit card issuers:

JP Morgan's Chase raises the minimum payments from 2% to 5% of the balance. The law affects how much they can raise interest rates, but there is no such provision to protect the minimum payments.

First Premier Bank charges $95 dollars for processing fees, before the account is even opened. First Premier Bank offers credit to individuals with less than perfect credit scores and histories.

Citibank increased some of their customers’ interest rates before they made a late payment, and then offered a partial refund of finance charges if the customer paid their bill on time. This gets Citibank around the law of not being able to raise customer’s interest rates due to making late payments.

Another popular ploy is to charge high processing or annual fees when opening a new card. For instance many cards will offer you a $300 spending limit, and a $75 annual fee. Again the law doesn't specifically protect you from this action, because it does not affect the interest rate. Many banks are using this method to pass some of the costs to you.

In August, it is expected that the Federal Reserve will release a new set of rules affecting the credit card industry that address a provision that would require card penalties to be proportional to a company’s actual costs, as well as require that card companies evaluate interest rates for customers who previous saw interest rate increases every six months.

Tuesday, October 26, 2010

Protect Your Credit Online with This One Step

If there was a single task you could perform to help keep your credit card information safe online you would do it, right? Think about all of the programs and offers that you hear about everyday that try to get your money. They have their place and can help keep you safe. But you should not use them unless you are first doing this one thing that can help you just as much – and it does not cost a dime.

Change Your Password

That's it. This one simple task can help keep you from trouble by making it much more difficult to hack into your account. And that goes for all of your online banking activities and accounts.

Changing your password helps if it ever falls into the wrong hands from being used against you. A password is the lock on the front door to your account. It is the most basic of security tools (like the keys that you use on your home).

Change it often. Make it a priority to change your password at least every three months. This will require you to go in to each and every account and change them, but schedule a time just as you would do for an appointment and get it done.

Make your passwords hard to hack. Use a combination of letters and numbers (usually you cannot use symbols). Mix them up and make it very difficult to guess or piece together with information about you. Use a small paper journal with a pen to keep your passwords written down and safe.

That's all it takes to strengthen your security, your credit and your life. Do it today.

Fraud Alert: Unauthorized Charges from PPC Flash

The Golden Rule in preventing credit card fraud is to keep a sharp eye on your monthly statements. Some thieves will take your card information and use it to fund a spending spree, while others will make small charges on thousands of victims’ cards.

The Better Business Bureau has reported that citizens in 9 states have received unauthorized charges from a company called ‘PPC Flash’. The average amount of the charges is $6 to $12 per transaction.

So far, the investigation is ongoing, and officials haven’t been able to locate the company behind the fraud. Scammers often make small charges to avoid alerting suspicion from either the cardholder or their issuing company.

If you find unauthorized charges from PPC Flash on your credit card statement, contact the Better Business Bureau and your state Attorney General’s office. Then contact your card company to dispute the charges.

Heartland Payment Systems Breach: How Bad Is It?

Heartland Payment Systems, a payment processor based in Princeton, NJ, handles about 100 million transactions a month. So you can imagine the sinking feeling their employees felt when they realized that Heartland’s computer systems were infected with malware that compromised the security of the many credit and debit cards used in those transactions. According to analysts, this could be the biggest data breach the world has yet seen.

So what data didn’t get compromised during the breach? Heartland reps assured customers that “no merchant data, cardholder Social Security numbers, unencrypted PIN numbers, addresses or telephone numbers” were involved. Unfortunately, credit and debit card numbers were likely targeted.

What can you do if you think your card details have been compromised? According to Heartland, the best thing to do is keep a close eye on your monthly statements. You can also have your cards flagged for possible fraud, and your accounts frozen. For a more permanent solution, cancel the cards that may have been breached, and replace them with new ones.

Under federal law, credit card holders are only responsible for up to $50 of unauthorized charges. Debit card holders can be liable for up to $500.

Monday, October 25, 2010

ID Thief Nabbed After 35 Years

How long can one man live under an assumed (and stolen) identity? If that man is Clark Lee Mower of Seattle, the answer is 35 years.

Mower had also been using the victim’s identity to receive government benefits and medical care. He was arrested on July 29, and faces charges of aggravated identity theft.

The Most Heinous Credit Card Frauds of the Month

Okay, all credit card fraud is pretty heinous. But some thieves go over the top. Here are some of the most outrageous cases of credit card fraud from July 2009:

El Paso, TX: Jose Adrian Castillo was arrested and charged with fraud. His method? Playing on the sympathies of elderly women by telling them he was dying of cancer. Of course, the ladies couldn’t deny Castillo’s dying requests, so they let the con man borrow their credit cards. He ran up tabs as high as $25,000 on these ill-gotten cards before police finally caught up to him.

Vermilion, OH: Jason Truxel was the victim of identity theft. Someone had used his personal information to open up lines of credit, obtain a mortgage, and even receive tax refunds. Imagine Truxel’s shock when he learned that the fraudster was his own dad! Sadly, statistics show that parents frequently steal their kids’ identities.

Cross Lanes, WV: A computer programmer named Martin Bowling decided to go on an identity-stealing spree. His target? The subscribers of ‘Woodcrafters Magazine’. He made off with $4,500 and purchased - among other things - an automatic litter box.

Remember: identity theft and credit card fraud happen every day. You can protect yourself by using Smart Cards, keeping your passwords safe, and never clicking on links contained in e-mails - no matter how official they seem.

Sunday, October 24, 2010

Global Credit Card Fraud: Mumbai and the Internet

Credit card fraud is alive and well, and the ill-gotten cards are being used to fund terrorists. Other cards, sold for as little as a dime apiece, give buyers access to credit limits of $4,000 or more. That is, $4,000 of other people's money.

Symantec just released a report that found most of the Internet's illegal sales involve stolen credit card information. Second place went to stolen bank accounts, with an average balance of $40,000 apiece. The credit cards are often sold in bulk at deep discounts, while the bank accounts can sell for $1,000 or more.

Skimming, identity theft, and cloning of credit cards could have played a part in the heartbreaking attacks on Mumbai. Terrorists are known to use credit card fraud to fund their operations, according to Jeremy Simon, a contributing reporter to US News and World Report. Credit cards were found in the backpack of one of the terrorists that attacked Mumbai.

When we get careless with our personal and financial information, we might get nervous about someone making unauthorized purchases or opening a line of credit in our name. But we seldom think of how our information could be used to harm other people. Please do your best to keep your information safeguarded, for yourself and all the rest of us.

The “Underground Economy” Sells Stolen Credit Cards Online

In a report gathered by Symantec’s Security Technology and Response (STAR) organization, stolen credit card details and bank accounts are among the most advertised goods in the “underground” economy online.

This report reveals that the potential value of stolen goods advertised on the Web is estimated to be more than $276 million - and this is just between July 2007 to June 2008.

For some criminals, stolen credit card numbers are purchased for as little as $0.10 to $25 per card! Symantic reports the average stolen credit card limit advertised online is more than $4,000 though. In addition to credit card numbers being sold in this underground economy, stolen bank account information sells for between $10 and $1,000 and the average advertised stolen bank account balance is nearly $40,000!?

Beware Text Messages from Mobil Oil Credit Union

The text message comes from mofcusrv.org, and purports to be from Mobil Oil Federal Credit Union. "You need to verify your Mobil Oil FCU account," it reads. "Unusual activity." Then it lists a toll-free number where you can call in to verify your Mobil credit card number, PIN, and expiration date. Problem is, once you've given this sensitive information to the "customer service rep", they hang up. They've gotten all the information they were fishing for, and now they're done with you.

This is the latest variation of an old scam that has recently been reported in South Texas. It seems that the scammers are texting massive amounts of people, hoping to find a few that are actually members of the Mobil FCU. Once they receive the information, they duck and run.

Whenever you receive a phone call, e-mail, or text message of this nature, it's probably a scam. Reputable financial institutions will contact you through the mail and won't expect you to give out your information over the phone. If the call sounds legitimate but you're just not sure, call the business's official phone number yourself to ask about unusual account activity. Chances are, this will be the first they've heard of it.

Saturday, October 23, 2010

Credit Card Scam: Phony Waiters

The Real Hustle has produced an excellent exposee of a scam that could hit patio diners. This video shows the scam in action. The unsuspecting customers are not actors, but watch as an ordinary guy posing as wait staff scams three couples out of their credit card using the line “since you’re sitting outside we’re going to have to take your credit card inside, because we’ve had a lot of runners (or “dine and dash”) and we need to protect ourselves. We’re not going to charge the card and you can pay with cash if you like.” Seems reasonable enough, no? That’s what makes it such an easy scam to pull off.
Don’t be a victim. Never give over your credit card unless you know your waiter or waitress is indeed working at the establishment (by bringing you your drink order). Still, it’s best not to EVER give your card away for an extended period of time, since servers may also pull scams on you while you’re dining — copying credit cards for example. If you find yourself in such a circumstance, find somewhere else to dine, or eat inside.