Posts Tagged ‘Identity theft’

How to get help if your identity is stolen

CONSUMER FORUM

Posted Feb. 01, 2016, at 9:07 a.m.

Having your identity stolen means starting a recovery process that can take months, even years.

The Federal Trade Commission, or FTC, last week announced an upgrade of its efforts to help the millions of consumers who are victimized every year.

Edith Ramirez, chairwoman of the FTC, told participants on a conference call that complaints about identity theft to her agency rose by nearly 50 percent last year. Ramirez said, while that’s shocking enough, the true scope of the crime is not known because it is “vastly underreported.”

What is known is that thieves are illegally opening new accounts, getting access to existing accounts fraudulently and filing phony tax returns, all while using other people’s names and personal information.

The FTC says victims can ease the task of getting their financial lives back in order by visiting the agency’s secure recovery website at identitytheft.gov.

Visitors can browse the range of recovery tips or jump right in by entering as much relevant data as possible that led to their identities being stolen. The FTC thinks the upgraded site will give consumers a one-stop means of filing a complaint about identity theft and beginning the process of recovery.

Victims are asked to first enter basic information about the type of identity theft to which they were subjected. Then the site walks the victims through a checklist geared toward that type of crime.

The site will generate affidavits and automatically fill a lot of information in letters and forms to be sent to police, businesses, credit bureaus, debt collectors and the IRS. If a recovery effort hits a snag, the site will suggest other ways to proceed.

To minimize further risks, the site will not ask victims for sensitive information, including dates of birth and Social Security numbers. There will be follow-up emails from the site, and consumers can go back to their plans later — through two-factor authentication — as their recovery continues.

The U.S. Justice Department estimates that 17.6 million Americans were victims of identity theft in 2014. Ramirez said the crime is one that will be with us for quite a while.

“We’re all doing more online. We’re all using mobile technology,” she said. “It’s going to expose people’s information to breaches,” if we’re not increasingly vigilant.

Ramirez made the announcement on Data Privacy Day, designated in 2008 by the National Cyber Security Alliance. Read tips from that nonprofit about keeping your data to yourself at staysafeonline.org.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Protect yourself against scams before filing taxes

CONSUMER FORUM

 

Posted Jan. 25, 2016, at 11:18 a.m.
Federal officials have termed them the biggest scams ever. Together, they cost consumers billions of dollars every year. And they use people’s fear of the Internal Revenue Service as a weapon.

The first starts with an unexpected phone call. You’re told that you owe taxes and must pay immediately or you’ll be jailed. What do you do?

An IRS official says, just hang up … it’s a scam.

Hundreds of thousands of consumers have received multiple calls from different people, all posing as either IRS officials or law enforcement agents. All the callers claim that legal action is certain, unless they receive money via wire right away. A demand for immediate payment is the second tipoff that it’s a hoax.

The first was the threat of imprisonment.

The IRS does not typically call a taxpayer; the agency begins by sending a letter. It also does not seek payment by way of prepaid cards, and it does not have agents standing by with arrest warrants in case the taxpayer hesitates.

The criminals who use these techniques can be abusive, even threatening to hurt their victims. These hoax calls may originate halfway around the world — although a spoofed phone number may make them appear nearby — and any threatened action rarely happens.

The second major hoax involves the filing of a phony tax return. If a thief steals your name, birthdate and Social Security number, he or she can file a bogus return in your name. If the IRS doesn’t catch it, the agency might send a refund to the crook; it may not be until you file your legitimate return that the fraud is discovered.

The IRS has trained thousands of employees to help possible victims. It has also put in place a number of preventive measures, most of which it won’t discuss in order not to assist the scammers. In a public message last week, the IRS said it has teamed up with the states and tax preparers to “stop fraudulent returns at the door.”

One new piece of information from tax software providers will be the amount of time it took to prepare a return. That could be a tipoff when computer-generated returns are fraudulent and have been filed by the hundreds or thousands.

You can read about the new measures at IRS.gov/uac/IRS,-States-and-Tax-Industry-Deploy-New-Safeguards-for-2016.

Tax season brings with it a rash of scam artists trying new ideas. Crooks might point to last year’s hack of IRS computers, which compromised some information of about 200,000 taxpayers. They might pose as “IRS counselors” or “credit advisers” while their real goal is to steal more personal data.

IRS officials suggest that tax preparers do a “deep scan” of all their computer drives and devices to find malware and viruses that may hide in places that a “quick scan” can’t find. Firewalls and antivirus software also should be up to date; if you use a tax preparer, don’t be shy about asking if security systems are robust.

If you store your tax filings on your computer, make sure there’s a backup in case your hard drive crashes. If you store paper copies, keep them under lock and key (ideally in a fireproof container). Find more security and identity protection tips at IRS.gov.

If you get a phone call you suspect is a hoax attempt, call 800-366-4484 to find out if the caller is a real IRS employee with a legitimate reason to reach you. If a piece of mail seems suspicious, call 800-829-1040 to see if it’s legitimate.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

FTC Launches New Resource for Identity Theft Victims

IdentityTheft.gov Helps People Report and Recover from Identity Theft

FOR YOUR INFORMATION

May 14, 2015

The Federal Trade Commission has launched IdentityTheft.gov, a new resource that makes it easier for identity theft victims to report and recover from identity theft. A Spanish version of the site is also available at RobodeIdentidad.gov.

The new website provides an interactive checklist that walks people through the recovery process and helps them understand which recovery steps should be taken upon learning their identity has been stolen. It also provides sample letters and other helpful resources.

In addition, the site offers specialized tips for specific forms of identity theft, including tax-related and medical identity theft. The site also has advice for people who have been notified that their personal information was exposed in a data breach.

Identity theft has been the top consumer complaint reported to the FTC for the past 15 years, and in 2014, the Commission received more than 330,000 complaints from consumers who were victims of identity theft.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook(link is external), follow us on Twitter(link is external), and subscribe to press releases for the latest FTC news and resources.

Unlocking the code – FTC Scam Alert

 

Unlocking the code

by Alvaro Puig
Consumer Education Specialist, FTC

Identity thieves may already have a lot of information about you – like your credit card number, the card’s expiration date, and your name, address, and phone number. With all that information in his hands, why would he call you? He’s after one vital piece of information – the security code on your credit card.

Read more >

Identity thieves try to cash in during tax filing season

CONSUMER FORUM

Posted Feb. 01, 2015, at 9:53 a.m.

click image to report scams, waste and abuse

Two headlines top the news near the start of this income tax season.

Thieves who steal Social Security numbers and other personal data do so in order to file phony tax returns and claim rebates they’re not owed.

And crooks posing as Internal Revenue Service officials are calling people and, in many cases, bullying them into sending money they don’t owe.

They use common names and all kinds of tricks. They may say they’re calling from the IRS criminal division. They might have technology that will spoof a caller ID, making it appear they’re calling from a real IRS office. They threaten those they consider easier targets — such as older people and recent immigrants — with fines, jail terms, job loss, even deportation.

The crooks do their homework before calling. They might know a person’s Social Security number — or at least the last four digits — and other personal details that lend credence to their pitch. Demanding immediate payment is a tipoff it’s a scam — the real IRS first would notify you by letter of any official action — and the agency never would demand payment by a debit card or wire transfer.

Losing a one-time payment is bad enough. Thousands of taxpayers have filed their income taxes only to find a crook has stolen their identities, filed fraudulently and collected their refunds illegally.

The IRS says after such discoveries, it takes an average of four months to get a refund to its rightful recipient. That person also needs to go through the hassle associated with identity theft. Perhaps ironically, prisoners’ Social Security numbers often are tempting targets, because inmates are less apt to be on top of their tax or banking activities.

The Treasury Inspector General for Tax Administration, or TIGTA, says it has received reports of 290,000 scam calls since October 2013, and nearly 3,000 victims have lost a total of $14 million. The IRS has been working to curb these crimes, saying it spotted 19 million suspicious returns since 2011 and prevented more than $63 billion in fraudulent returns. Read about ways to spot impersonators and report scams at Treasury.gov/tigta.

Consumers can and should take all the usual steps to prevent fraud: use firewalls and antivirus software, use strong passwords and change them often on all online accounts and reveal your Social Security number only when it’s absolutely necessary.

If you become a victim, the IRS says it wants to help. Read about the agency’s prevention and detection efforts at IRS.gov/Individuals/Identity-Protection.

The IRS is also warning consumers about unscrupulous preparers who push filers to make inflated claims. Often, these preparers will demand an up-front fee; they may also refuse to give the taxpayer a copy of the return. Both are things that legitimate tax preparation pros don’t do.

You may qualify for free help preparing your income tax filings. Seniors can check with AARP or the local agency on aging. The Volunteer Income Tax Assistance, or VITA, program gives free tax help to people who make $53,000 or less, have disabilities, are older or who speak little English and need help preparing their returns.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit necontact.wordpress.com or email contacexdir@live.com.

The best New Year’s resolution: No new resolutions

CONSUMER FORUM

Posted Jan. 04, 2015, at 1:28 p.m.

The lion’s share of New Year’s resolutions many of us made have to do with better health. The online health adviser WebMD has a common-sense suggestion in this regard: Resolve not to make any more resolutions.

Doing so lessens the unhealthy cycle of denying yourself, then binging to satisfy your craving. Instead, the one-day-at-a-time approach of 12-step and other lifestyle changing programs works on a more realistic theory: achieve one small success, then do it again.

This practice eliminates the need for a self-improvement laundry list on Jan. 1. You could pledge to lose weight, exercise more and volunteer 10 hours per week, all with the aim of feeling better. Or you could pledge to do one thing every day to feel better.

You could start now. Put down the paper (or push away from the screen), get up and take 100 steps. Walk around the house, find something that’s out of place and put it away. Or go outside and get the mail. You’ve moved, gotten a bit of exercise and put something material in its place; you haven’t expended that much effort, but you probably feel better.

Contrast this with those of us who have bought year-long gym memberships and not used them.

Many gyms count on this phenomenon — they can sell thousands of memberships at bargain prices when their facility holds a few hundred people at most. What behavioral economists term “pre-commitment” acts serve to subsidize the truly motivated members; those who don’t go are just poorer by the membership fee.

Make similar plans to lose weight, if that’s among your goals. Losing 1 pound every 10 days will leave you 36 pounds lighter by next New Year’s Day. That one-pound-at-a-time goal makes sense; visualizing the removal of 36 pounds all at once is neither medically advisable nor realistic.

While we’re focused on health, avoid products that claim quick fixes. The U.S. Food and Drug Administration has articles about scam products at www.fda.gov/ForConsumers/ProtectYourself/HealthFraud/default.htm.

Use your internal radar on flimsy claims including “quick results,” “no-risk trial” and “money-back guarantee.”

Take small steps to feel better about protecting your identity. When you need to provide a password — on secure websites only, please — use a strong series of letters, numbers and symbols that you haven’t used anywhere else and which only you know. Check for computer system updates and patches often, and keep your security software updated. Don’t click or download anything from any unknown source, and delete suspicious looking emails without opening them.

Read the Federal Trade Commission’s list of what to do and what not to do in keeping your identity safe at www.consumer.ftc.gov/articles/0272-how-keep-your-personal-information-secure.

Review the list frequently and try one new tool every time you read it. Find out how to get your truly free credit report at AnnualCreditReport.com. You’re entitled to one annually from each of the three reporting agencies; get one now, one in early May and one in early September.

Being a smart consumer involves much more than looking for deals. It means taking single steps on our long journeys through the marketplace.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Don’t believe these 5 myths about identity theft

CONSUMER FORUM

Posted Nov. 16, 2014, at 9:46 a.m.

Click image to access Komando post

This column is about things that go “bump” in the night. The subtitle is “our biggest fears.”

The top few, according to one survey, include public speaking, walking home alone and identity theft. Since the last one has such serious and expensive consequences, it’s been the subject of plenty of sound advice … and more than a little nonsense.

A recent posting on the website of Kim Komando — who also hosts a radio program about all things digital — points out five major myths involving identity theft. The first is that recovery is easy; virtually anyone who’s been a victim will tell you otherwise. Extended fraud alerts, credit freezes and a detailed plan to repair one’s credit will likely consume hundreds or even thousands of hours.

The second myth is that you’ll get your money back. It’s true that many banks and credit card companies will reimburse you for purchases made fraudulently. However, you must meet certain deadlines to protect your rights. There are also limits on what a bank will cover, so check your bank’s policy.

Myth No. 3 is that credit and debit cards are created equal. While protections exist for many fraudulent credit card purchases, a thief with a debit card may as well have a pipeline into your bank account. The thief can withdraw money at will; until you work things out with your bank, that money is gone.

Liability rules are different, too. Report a credit card stolen before it’s used and you have no liability; if thieves do use the card, your liability is limited to $50.

With a debit card, there’s no liability if loss is reported before it’s used. Report it stolen within two days and the limit is $50; from two to 60 days the liability shoots up to $500. After 60 days, you’re liable for all transactions.

Another myth involves the way identity theft occurs. Many consumers mistakenly think it happens only through online trickery. Major data breaches at retailers have exposed at least some personal data of hundreds of millions of customers.

More often than we’d like to think, friends or family members steal identities. Even contractors you allow into your home might make off with credit cards, bank statements or other potentially damaging documents.

The final big myth is that law enforcement can deal decisively with the perpetrators. Unless you know exactly who they are and the police can build a solid case, there’s little chance of bringing these thieves to justice. You should file a police report, mainly to create a record of the theft for your dealings with credit card and other companies. The report could also head off debt collectors.

You can buy identity theft insurance. The Insurance Information Institute says coverage might include lost wages, phone bills, costs of notary services and certified mailing, maybe even attorney fees.

Your homeowner’s insurance may include an ID theft rider already. Adding such coverage might cost another $25 to $50 per year.

Companies that sell ID theft insurance sometimes advertise that they will cover large dollar losses. Read the fine print before buying, so you will know what is covered and what isn’t.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

 

 

%d bloggers like this: