Data theft targets 3.3 million with student loans, Socical security numbers..

Data theft targets 3.3 million with student loans
Social security numbers, addresses taken, but not financial information

MINNEAPOLIS - A company that guarantees federal student loans said Friday that personal data on about 3.3 million people nationwide has been stolen from its headquarters in Minnesota.
Educational Credit Management Corp. said the data included names, addresses, Social Security numbers and dates of birth of borrowers, but no financial or bank account information.
The data was on "portable media" that was stolen sometime last weekend, ECMC said in a statement. Company spokesman Paul Kelash wouldn't specify what was taken, citing the ongoing investigation, but said there were no indications of any misuse of the data.
The St. Paul-based nonprofit said it discovered the theft last Sunday and immediately contacted law enforcement, and made the theft public when it received permission from authorities. The Minnesota Bureau of Criminal Apprehension is leading the investigation.
ECMC said it has arranged with credit protection agency Experian to provide affected borrowers with free credit monitoring and protection services. Borrowers will be receiving letters from ECMC soon on how to sign up, gain access to fraud resolution representatives, and be provided with identity theft insurance coverage.
"We deeply regret that this incident occurred and the stress it has caused our borrowers and our partners and are doing everything we can to help protect our borrowers' identity and personal information," Richard Boyle, president and CEO of ECMC, said in the statement.
ECMC is a contractor for the U.S. Department of Education to provide collection and document management services. It guarantees student loans through the Federal Family Education Loan program, and provides support services for student loans that are in default or bankruptcy. The company can act as the guarantor, loan holder or loan servicer.
Department of Education spokesman Justin Hamilton said protecting student privacy is a top priority.
"We are working with ECMC to make sure that affected individuals are provided with resources to protect their information and to provide with them with identity theft insurance," Hamilton said protecting student privacy is a top priority for the agency.
Those who believe they may be affected were encouraged to visit ECMC's Web site, or call 1-877-449-3568 beginning Saturday.
According to the Privacy Rights Clearinghouse, more than 347 million individuals have been affected by data privacy breaches at hundreds of government agencies, universities and businesses since 2005.

ID Theft ring including wig-wearing check casher One woman drained bank accounts..Including Bernanke's

ID theft ring included wig-wearing check casher One woman drained bank accounts � including Bernanke�s � in personThe Associated Pressupdated 2:02 p.m. MT, Tues., Sept . 1, 2009MIAMI - A sophisticated identity theft ring that counted Federal Reserve Chairman Ben Bernanke's wife among its victims didn't stop at stealing money electronically. Authorities said Tuesday it also sent a woman wearing a variety of wigs into bank branches to drain their accounts in person. Shonya Michelle Young, 38, of Myrtle Beach, South Carolina, was being held Tuesday at a federal detention center in Miami on a charge of conspiracy to commit bank fraud. "She was a major check casher," U.S. Marshals Service spokesman Barry Golden said Tuesday. At her first court appearance Tuesday, U.S. Magistrate Judge William Turnoff ordered Young held until Thursday, when another hearing will be held to determine when she will be transferred to federal custody in Virginia. Prosecutors said Young had been a fugitive for more than two months. Anna Bernanke�s purse stolenHundreds of victims were targeted in D.C., Maryland, Virginia, Illinois and elsewhere. Among them: Anna Bernanke, whose purse was stolen outside a Capitol Hill (Washington, D.C.) coffee shop in August 2008. Someone started cashing checks using the Bernankes' bank account days later. According to District of Columbia police, the purse contained Anna Bernanke's Social Security card, checkbook, credit cards and IDs. The amount of money stolen from the couple has not been disclosed. When Young was arrested Monday at a corporate apartment complex near Miami International Airport, authorities said she had a fraudulent New York driver's license and a Visa debit card under the name Deborah L. Taverna, along with several wigs. "She had about three wigs that she would wear to mimic her victims or change her appearance," Golden said. Young would impersonate the victims to obtain fake IDs and cash illegal checks, draining their bank accounts, authorities said. In court Tuesday, Turnoff listed numerous aliases and three Social Security numbers Young allegedly used. Ring members chargedSimilar scenes played out at bank branches across the country as other ring members used IDs, personal checks and bank information to impersonate victims, according to court documents. Ten of the alleged ring's members have been charged, and other fugitives are being sought, authorities said. The suspects were identified in an investigation by the U.S. Postal Inspection Service, the Secret Service and D.C. police. U.S. Marshals initially sought Young at her South Carolina home, but she had fled to Miami, authorities said. Young told the court that she is an unemployed widow who supports a 19-year-old. Her federal public defender did not return a phone message Tuesday. Authorities described her as a girlfriend of one of the alleged ringleaders but wouldn't identify which one. The Federal Reserve declined to comment Tuesday because the investigation is ongoing. Last week, Fed Chairman Ben Bernanke thanked law enforcement officials for working to solve the case and prevent others from becoming victims. "Identity theft is a serious crime that affects millions of Americans each year. Our family was but one of 500 separate instances traced to one crime ring," Bernanke said. From January 2007 through May, the ring allegedly stole more than $2.1 million, and the frauds involved at least 10 financial institutions, according to court documents. A suspected ringleader, Clyde Austin Gray Jr., pleaded guilty July 22 in Alexandria, Virginia, federal court. Prosecutors said Gray hired pick pockets then made counterfeit IDs for coconspirators who conducted the bank transactions. Gray allegedly took a cut of the proceeds. Another man and another woman who prosecutors say were check cashers in the scheme also have pleaded guilty.

Man charged in largest-ever ID theft scheme

Man charged in largest-ever ID theft scheme

Prosecutors accuse ex-informant of trying to swipe 130 million accounts

WASHINGTON - Federal prosecutors on Monday charged a Miami man with the largest case of credit and debit card data theft ever in the United States, accusing the one-time government informant of swiping 130 million accounts on top of 40 million he stole previously.
Albert Gonzalez, 28, broke his own record for identity theft by hacking into retail networks, according to prosecutors, though they say his illicit computer exploits ended when he went to jail on charges stemming from an earlier case.
Gonzalez is a former informant for the U.S. Secret Service who helped the agency hunt hackers, authorities say. The agency later found out that he had also been working with criminals and feeding them information on ongoing investigations, even warning off at least one individual, according to authorities.
Gonzalez, who is already in jail awaiting trial in a hacking case, was indicted Monday in New Jersey and charged with conspiring with two other unnamed suspects to steal the private information. Prosecutors say the goal was to sell the stolen data to others.
How much of the data was sold and then used to make fraudulent charges is unclear. Investigators in such cases say it is usually impossible to quantify the impact of such thefts on account holders.
Targeting chainsProsecutors say Gonzalez, who is known online as "soupnazi," targeted customers of convenience store giant 7-Eleven Inc. and supermarket chain Hannaford Brothers, Co. Inc. He also targeted Heartland Payment Systems, a New Jersey-based card payment processor.
According to the indictment, Gonazalez and his two Russian coconspirators would hack into corporate computer networks and secretly place "malware," or malicious software, that would allow them backdoor access to the networks later to steal data.
Gonzalez faces up to 20 years in prison if convicted of the new charges. His lawyer did not immediately return a call for comment.
Gonzalez is awaiting trial next month in New York for allegedly helping hack the computer network of the national restaurant chain Dave and Buster's.
The Justice Department said the new case represents the largest alleged credit and debit card data breach ever charged in the United States, based on a scheme that began in October 2006.
Sophisticated attackGonzalez allegedly devised a sophisticated attack to penetrate the computer networks, steal the card data, and send that data to computer servers in California, Illinois, Latvia, the Netherlands and Ukraine.
Also last year, the Justice Department announced additional charges against Gonzalez and others for hacking retail companies' computers for the theft of approximately 40 million credit cards. At the time, that was believed to be the biggest single case of hacking private computer networks to steal credit card data, puncturing the electronic defenses of retailers including T.J. Maxx, Barnes & Noble, Sports Authority and OfficeMax.
Prosecutors charge Gonzalez was the ringleader of the hackers in that case.
At the time of those charges, officials said the alleged thieves weren't computer geniuses, just opportunists who used a technique called "wardriving," which involved cruising through different areas with a laptop computer and looking for accessible wireless Internet signals. Once they located a vulnerable network, they installed so-called "sniffer programs" that captured credit and debit card numbers as they moved through a retailer's processing networks.
Gonzalez faces a possible life sentence if convicted in that case.
Restaurants are among the most common targets for hackers, experts said, because they often fail to update their antivirus software and other computer security systems.
Scott Christie, a former federal prosecutor now in private practice in New Jersey, said the case shows that despite the best efforts by companies to protect data privacy, there are still individuals capable of sneaking in.
"Cases like this do cause companies to sit up and take notice that this is a problem and more needs to be done," said Christie.

Recession scams..

Recession scams
by Hasti Taghi

IDAHO FALLS - "Well my husband works for a car dealership so we didn't know where things were going there. So we just wanted a little extra income, something to put into savings, to help pay the bills," says Ellie Dahl, scam victim.

And that's what made Dahl fall for a work-at-home scam. When she saw an ad in the Post Register advertising for a stay at home job, she couldn't resist. The Company, DR LTD Mail Express asked her to be a sort of "middle-man" for shipping electronics overseas. A few e-mails later, and Dahl was an employee. In exchange for her social security number, drivers license and other personal information, she received two packages to be sent overseas. After shipping the first one, she got a call.

"It turned out that they were all purchased by fraudulent credit cards," says Dahl.

Dahl know she had fallen for a scam. She called the Better Business Bureau and the FBI. Although no money was exchanged yet, her fear is, the company may open a credit card in her name. Work at home scams are some of the most popular in the current economy.

"They're falling more prey and these scams are a little more appealing. They want very much to believe it," says Donna Oe, BBB.

Other scams popping up recently, stimulus bill money scams, loan scams, and lottery scams.

"We did a large piece on Publisher's Clearing House. They're starting to get wiser, these scammers, using names that have been around for years, consumers kind of trust in that," says Oe.

So how can you protect yourself? By checking up on the company. The e-mails Dahl received didn't have any sort of address or phone number and when I google the company on line, there's nothing.

"Ask questions, lots of questions. If it's legitimate, they'll be only too happy to give you that information, if it's not, you'll get hung up on," says Oe.

"So when they see something like this that sounds too good to be true, what should they think?" asks reporter Hasti Taghi
"That it's too good to be true," says Dahl.

Fake check scams spread

Fake check scams spread
1.3 million Americans have fallen for this trick, according to CFA report
By Herb Weisbaum

updated 4:04 p.m. MT, Wed., May 27, 2009
To a con artist, cash is king. International scammers have developed a deviously clever way to trick people into sending them cash. The crooks mail out counterfeit checks or money orders and come up with a creative story to get their victims to wire back thousands of dollars.
According to a survey released Wednesday by the Consumer Federation of America (CFA), nearly a third of all adult Americans have been approached with fake check scams and at least 1.3 million have fallen for it.
“They didn’t realize the pitch and the check were both phony until they wired off the money,” says Susan Grant, CFA’s director of consumer protection. She says the average victim gets taken for between $3,000 and $4,000.
Sally Greenberg, executive director of the National Consumers League, puts the yearly loss at $20 to $60 billion a year. Her group runs the Web site fakechecks.org. “These are very persuasive scams that play on people’s vulnerability,” she says.
Here’s another reason so many people get burned by these counterfeit checks: They look legitimate. “They look so real your bank teller can’t always tell it’s a fake,” says Allison Southwick of the Better Business Bureau.
It starts with that bogus check or money orderWhy did you get that unexpected check or money order for thousands of dollars? Maybe you’ve won a contest. Maybe you hit the jackpot in a lottery. Maybe it’s payment for a work-at-home job. The storylines are varied, but the con always works the same way. You need to deposit the check and wire off most of the money right away.
“Once it’s wired it’s gone, gone, gone,” Greenberg says.
The CFA survey pinpoints one reason why this scam is so successful. Most people (59 percent of those responding) mistakenly believe that when you deposit a check or money order, your bank confirms that it is good before letting you withdraw the money. Forty percent believed they would not be held responsible if the check or money order turned out to be counterfeit. Wrong!
Many victims tell me they asked their bank if the check “cleared” before they wired the money and were told yes. Here’s the deal: When a bank says a check has cleared, it means you have access to those funds. It does not mean the check is good.
If the check bounces – which could take a few days or many weeks – you are responsible to repay your bank for any of the money you withdrew.
Bogus checks can be used for almost anything. All the bad guys need to do is concoct a story about why they sent you a sizeable check and why you need to cash it and wire them money.
Here are some of the most common fake check scam scenarios:
Prize and lottery scams“Congratulations!” the letter says. You’ve won a bundle of money in a contest, sweepstakes or foreign lottery – one you never entered. The letter looks official and comes with a check for thousands of dollars. You’re supposed to cash it and wire off the money to pay for outstanding fees or taxes. Don’t do it!
Reality check: You never have to pay to claim a prize. If you’re asked to wire off any money, it’s a scam. More on this scam.
Mystery shopper scam You answer an ad and are accepted as a secret shopper. Your first assignment is to evaluate the MoneyGram payment system at a local Wal-Mart store. The letter tells you to cash the enclosed check – usually between $2,500 and $5,000 – keep a couple of hundred dollars for yourself and use the MoneyGram service to wire off the rest. Don’t do it!
Reality check: Never accept a job that requires you to cash a check and wire money. No legitimate company would ever make you do this. More on this scam.
Overpayment purchase scamYou’re trying to sell something that’s fairly expensive, maybe a car or some furniture. So you place an ad in the newspaper or online. Before long you get an e-mail from an eager buyer who is willing to send you a check for more than the asking price. You’re supposed to wire the extra money to a mover, decorator, shipping company or some other non-existent entity. Don’t do it!
Reality check: You’re being set up. No legitimate business transaction involves a check for more than the asking price with the requirement that you wire the difference to some person or company. More on this scam.
Other victimsInnocent businesses are also hurt by the fake check scam. Many of these bogus checks use the name, address and bank account number of legitimate companies.
This increases the chance the teller will accept the check. Try to deposit a big check from the El Gordo Lottery and the teller might start asking questions. But a check from Bob’s Auto Supply doesn’t call attention to itself.
“Often businesses don’t even know their checks are being used in these scams until they get angry calls from people who want to know where their prize money is,” says the BBB’s Southwick tells me.
A few months ago, I warned you about con artists sending out counterfeit Publisher’s Clearinghouse prize notices – along with fake prize checks. Some of those fake checks listed the payer as Alpine Environmental Services of Stanwood, Wash.
When the bank realized Alpine’s account number had been stolen it locked up the company’s accounts. The company’s manager, Dennis Dutoit, tells me he could not pay any bills for three days until everything was straightened out. “It created a major mess,” he says.
The bottom lineIt’s not very hard to protect yourself from these fake check scams. In fact, Carmen Christopher, an attorney with the Federal Trade Commission, was able to sum it up in one sentence. “If you get a check that requires you to wire money – don’t do it!”

Immigrant sentenced for fake ID sales in Idaho Falls.

Immigrant sentenced for fake ID sales

A 52-year-old illegal immigrant will spend 16 months in prison for four counts of document fraud.

By HEATHER WELLS hwells@postregister.com

An illegal immigrant from Mexico has been sentenced in federal court for selling phony identification cards in Idaho Falls and Blackfoot.

Ernesto Santillanes-Escoto, 52, will spend 16 months in federal prison for four counts of document fraud.

Chief U.S. District Judge B. Lynn Winmill also ordered Santillanes-Escoto to be subjected to immigration-removal proceedings once he's released from prison.

A federal grand jury indicted Santillanes-Escoto in July, three months after the Idaho Falls Police Department began investigating him, Sgt. Phil Grimes said.

Shortly thereafter, undercover IFPD detectives and officials with Immigration and Customs Enforcement bought several counterfeit Permanent Resident cards and fake Social Security Administration cards from Santillanes-Escoto.

He also was selling the counterfeit documents to several individuals in the area, who cooperated with authorities, Grimes said.

"We get a lot of fake IDs around here," Grimes said. "We were able to solve this case with a lot of evidence."

Santillanes-Escoto was arrested in September in Southern California and was brought to Idaho to face the charges.

Santillanes-Escoto pleaded guilty in February and was sentenced Friday.

It's a legal victory for illegal immigrants in Utah and across the United States.

Illegal immigrants score Supreme Court victory
May 5, 2009



SALT LAKE CITY -- It's a legal victory for illegal immigrants in Utah and across the United States.

The U.S. Supreme Court voted unanimously in favor of a Mexican immigrant living in Illinois, saying prosecutors can't charge undocumented workers with aggravated ID theft unless they can prove intent to commit fraud.

That ruling comes in Flores-Figueroa v. United States on Monday. Proyecto Latino de Utah director Tony Yapias was thrilled with the 9-to-0 vote. "5-to-4, we would have said, you know, ‘Wow! … That's a good victory.' But 9-to-0, it's unprecedented," he said.

Yapias says prosecutors have used ID theft as the justification for several immigration raids, including here in Utah, but he says in many cases, the illegal immigrants have no idea they're buying a Social Security number that belongs to someone else.

"Here it is, the Supreme Court of the United States has just said unanimously that this law has been misused by prosecutors," Yapias said.

To him, there's a big difference between the kind of accidental ID theft that someone undocumented and looking for work might commit, compared to the kind committed by someone who rummages through garbage or mailboxes, knowingly stealing someone's identification with the intent to commit fraud.

U.S. Attorney for Utah Brett Tolman says this week's Supreme Court ruling should not affect the way he goes after illegal immigrants. "In anticipation of this very issue, we have been operating under this heightened or higher standard for the last two years. So, our prosecutions have been consistent with what the Supreme Court has now ruled on," he said.

Tolman says, as a result, it should not affect cases like the raid on the Swift meat packing plant. "If you take, for example, the Swift case, what we … we were one of the few that were concerned at the outset, that anyone we prosecute for identity theft needed to know that they were actually stealing the identity of someone," he said.

The Utah Attorney General's Office says it is subject to separate Utah laws rather than the federal statutes affected by the ruling.

LexisNexis warns of possible data breach

NEW YORK - The LexisNexis online information service is warning 32,000 people their personal information may have been improperly accessed in a credit card fraud scheme that postal officials say bilked hundreds.
New York-based LexisNexis says in a letter mailed Friday that former customers of the service may have viewed information including names, birth dates and Social Security numbers.
U.S. Postal Service officials have launched a criminal investigation and say 300 people in the databases of LexisNexis and a Santa Fe, N.M., company called Investigative Professionals were victims in the credit card fraud scheme. No suspects have been arrested.

Scammers offering Swine flu vaccinations..

By Hailey Higgins, Local News 8 Reporter
IDAHO FALLS - The top headlines for the past several days are the swine flu outbreak. It seems to be catching the attention of everyone, including scammers.
The Idaho Falls Better Business Bureau (BBB) said scammers are offering a vaccine for the swine flu, but there isn't one.
If you just go online and Google swine flu, you'll see it. The scam is a swine flu vaccine offered by CanadaPharmacy.com.
The BBB said scammers are preying off people's fear of the swine flu.
"They are going have that panic attack and they are going to try to do everything they can to try to protect themselves. And again, these are not the remedies this is not a cure. They are wasting their money," said Donna Oe, BBB Spokesperson.
It is very dangerous to buy medication over the internet; you just can't be sure what you're getting.
If you have flu-like symptoms, talk to your doctor and get a prescription from a pharmacist.

shopper scam,,, again

By Danielle Grant, Local News 8 Reporter
IDAHO FALLS - It's nothing new, scammers going to great lengths to swindle you out of your own hard-earned cash.
Some are blaming the rough economy and payday lenders agree, they're seeing many more fraudulent checks coming into their doors.
A local couple with a check totaling close to $5,000 found out it's all a scam.
The Check 'N Loan store says they see bad checks at least once a week.
And the check the Espinosa family received was no different. It's a classic "too good to be true" offer nearly any woman would love: getting paid to go shopping.
"What woman wouldn't want to be a mystery shopper and get free stuff," said Dianna Espinosa.
Dianna got a check in the mail for $4,984 but after reading the letter along with it, things began to look a little fishy.
"[I thought] this is awesome. This seems too good to be true. This is almost $5,000 dollars and these people don't even know who I am," she said.
Although suspicious, she took it to Check N' Loan where they called the Bank of Easton to verify money was there.
"We didn't even get two words out and the bank said, ‘Is the check for this amount of money? Then its fraud.' We didn't even have a chance to confirm the funds, they automatically knew," Melanie Rhodes, a Check ‘N Loan teller, explained.
They've seen stacks of cases just like Dianna's come in: all fraudulent.
Dianna even tried to get the company on phone with us but all we heard was a disconnected signal.
Dianna believes these scammers target the weak.
Her husband's on social-security and she's looking for a job.
"With the check looking so real, I thought maybe they'll give me a shot at this. I'll get a steady income," Dianna explained.
Spending someone else's money and getting paid for it; sounds good but probably is too good to be true.
If you do get scammed and you cash a fraudulent check, you are then responsible for it and have to pay that money back.
If you don't pay, you could face felony forgery charges and end up behind bars.
Most of these types of scammers are beyond our borders so it makes prosecuting them more difficult.
If you think you may have been scammed, make sure to always call your local police department to report what happened.

credit score disputes...

Everybody makes mistakes. But not every mistake is forgiven. In our capitalist society, mistakes with money are carefully logged, categorized and entered into a formula that controls your financial future -- your credit score.
But what happens when the companies that keep this list make mistakes? After all, the credit bureaus -- which keep the list of who's been naughty and who's been nice -- are staffed by people who are just as fallible as the rest of us. Theirs is a complicated business. They keep track of billions of pieces of information. Mistakes do happen.
Unfortunately, complaining about mistakes on your credit report can be one of the most maddening experiences a consumer can have. Erasing an unfair black mark on your credit history after a bout with identity theft or a run-in with a malicious company can turn into an odyssey worthy of a Kafka novel. That's why the first installment of our "How to Complain About" series takes on this most vexing of consumer issues.
The credit report is composed of voluntary submissions by companies that you do business with. Those companies are called "furnishers." A credit card company is a furnisher. So is a furniture store where you bought a living room set from on credit; so is a car dealership. As you might imagine, your credit report is only as accurate as the furnishers who contribute information about you. Their quality control measures vary widely.
There are many reasons a mistake might find its way onto your credit report. Perhaps a furnisher forgot to give you credit when you paid your final bill. Perhaps someone impersonated you, and didn't pay their bills. Perhaps a furnisher made a data entry error when submitting updates, and accidentally blamed you for someone else's unpaid bill. Or perhaps you and a creditor have a real difference of opinion about a debt it says you owe.
In most arenas of life, if someone makes false statements about you that cost you money or reputation, you can sue for libel. That's not true in the credit reporting system, however. Decades ago, Congress granted furnishers general immunity from libel lawsuits. That gives them less incentive to be impeccably accurate when they send data to the credit bureaus.
Credit report mistakes range from inconsequential misspellings to wrongful reports of debt defaults that prevent the victim from ever borrowing money. Credit reports are notoriously inaccurate, though it's hard to say with precision how many reports have errors, as the credit bureaus keep that secret. But studies by third parties have found error rates as high as 25 percent. A small pilot study conducted by the Federal Trade Commission recently showed that 16 percent of consumer reports contained errors that would impact a consumer’s credit score. The credit bureaus, which compile and sell the credit reports, told Congress in 2004 that the error frequency is much smaller -- only 3 percent -- but that would still impact nearly 6 million Americans.
So it's entirely possible you'll find yourself battling a credit bureau about a mistake at some point in your adult life.
Dispute process is bornDecades ago, it was almost impossible to see the contents of your credit report and to fix mistakes. In response to an avalanche of complaints, Congress set up a formal dispute process when it passed an update to Fair Credit Reporting Act in 1997. In that law , Congress mandated that consumers be given a fair trial when they believe something inaccurate is being reported. It requires the nation's credit bureaus -- Equifax, Experian, Trans Union and the smaller regional bureaus -- to take evidence from consumers, evidence from furnishers and decide who is right.
Unfortunately, this process has been turned into something of a kangaroo court. In a recent report called "Automated Injustice," the National Consumer Law Center described the disheartening procedures that are now in place.
Consumers who initiate disputes often send in pages of documentation supporting their claims. But in many cases, the paperwork is sent overseas to places like Mumbai, India, for cursory processing, the law center reported. There, employees work under tight quota and bonus systems. Subcontractors for Equifax, for example, must resolve more than 13 disputes every hour, or about one every four minutes, according to the report.
So, according to the report, the paperwork is almost always ignored and the complaint boiled down to a two-or three digit code. About one-third of the time, that code indicates simply that the consumers claims the credit blemish is "not his/hers." This code is then sent to furnisher, which is asked simply to affirm the original entry. If it does, the bureau will often decide that the case is closed.
The National Consumer Law Center doesn’t mince words when describing this procedure.
"The FCRA dispute process has become a travesty of justice," it said in the report.
How can you get around this travesty? It's not easy. But as is typical of most consumer protection disputes, there are two keys: persistence and the threat of a lawsuit. If your dispute process hits a serious snag along the way, you'll probably have to consider filing a lawsuit. But to win, you have to prove more than a simple mistake occurred. You'll have to prove the bureau, or the furnisher, were negligent. The mere threat of a lawsuit might gain you satisfaction, but you'll have an empty threat if you don't have good records showing the bureau and furnisher ignored your repeated requests for justice.
Maintaining your rights to sue, and building a good case along the way just in case, are critical to a successful dispute with the credit bureaus, says attorney Chi Chi Wu, who authored the “Automated Injustice” report. Much of the advice she gives has a dual purpose: to win the dispute, but also to preserve legal rights and create a lawsuit-ready paper trail, just in case. Here are some of the steps she recommends.
1. Request a review in writingAll three credit bureaus allow you to dispute errors using online forms.
• EXPERIAN http://www.experian.com/disputes/• EQUIFAX http://www.equifax.com/online-credit-dispute/• TRANS UNION http://annualcreditreport.transunion.com/entry/disputeonline
Wu says using them is a big mistake. The forms only help the bureaus steer your issue into one of their dispute "buckets," helping the agency automate your claim. It also means you'll have less of a paper trail to demonstrate negligence later on. Wu strongly recommends that consumers use old fashioned U.S. mail to file their complaints and send the letter return-receipt requested. And naturally, keep good records of all contact with a credit bureau. At this point, buying a shiny new notebook for just this purpose is a good idea.
• EQUIFAX mailing address• TRANS UNION mailing address• EXPERIAN No link. Address will be on credit report.
And while all three companies provide a simple form to fill out with dispute information, Wu recommends adding narrative detail and supporting documents anyway – again, to prevent the bureaus from “bucketing” you. That will help a lawyer make a case later than the bureau didn't perform even the most basic investigation.
It's always good to send the dispute to all three bureaus. While the reports can differ, the reports generally overlap and a black mark on one report usually becomes a black mark on all three. So while there may only be one bill in dispute, you probably have three disputes on your hands.
2. Also notify the furnisherIt seems reasonable that the credit bureau would send a copy of your dispute to the company that's involved, but don't count on. Send a separate, return-receipt-requested letter to the company that claims you didn't pay your bill. A carbon copy version of your dispute letter to the credit bureau should be sufficient.
3. Be ready for surprising account numbersWhen tracking a credit bureau entry, it's likely that your "bad debt" will have an unfamiliar account number next to it. Companies often assign new numbers to accounts that go into default. Also, when debts are sold to debt collectors, they usually give an account its own number. For example, a dispute involving a furniture store account No. 345234 might end up listed on your credit report as Joey's Collections No. 432432. When filing dispute letters, including all possible account numbers. That cuts down on possible confusion -- or legal squirming -- later on. For example, a consumer might send a letter saying, "Please delete account No. 345234, and the bureau might "agree" to the request while doing nothing, and leaving the unpaid bill under the other account number.
4. Tell them where to goThis step might sound presumptive, but Wu suggests that the consumer explicitly recommend the steps that the credit bureau should take to investigate the matter. For example, if you've spoken to an operator at a furnisher who admits an error, tell the credit bureau to call that furnisher and interview that operator. The bureau may not do this, but this inclusion could help a lawyer at a later date persuade a judge that the bureau didn't take even the most obvious steps to resolve the dispute.
5. Discredit the furnisherA little legal legwork can help make your case, too. If there is evidence that the furnisher involved in your dispute has a reputation for complaints of inaccuracy, include that evidence in your letter. This will help build the case that the bureau should not have presumed the furnisher was accurate.
Other adviceIt might seem natural to complain directly to the furnisher of the information rather than the credit bureaus. However, the original Fair Credit Reporting Act granted no legal rights for to consumers to do so, and steered all complaints to the credit bureau dispute process. That limitation is changing. The Fair and Accurate Transaction Act of 2003 includes provisions calling for "direct disputes" with furnishers, though the Federal Trade Commission has yet to issue formal guidelines for the process. They should appear soon; public commentary on proposed rules was entertained by the agency last year.
In the meantime, consumers can try a direct dispute, but should only do so after completing the dispute process with the credit bureaus and getting an answer. Skipping the bureau process would force a consumer to surrender their rights to sue the furnisher, Wu says.
Even before the final rules are determined, Congress spelled out a few specifics in its 2003 law. Send a letter to the furnisher demanding a “reinvestigation” of the debt. Ask for all paperwork documenting the debt. Like the credit bureaus, the furnishers will be required to supply a response within 45 days. If none is forthcoming, the debt must be removed from the credit file. Even if a response arrives, it's entirely possible the company will not be able to produce detailed records documenting the debt, which would also enable a request for removal of information.
In advance of the FTC rules, consumers may not have the right to sue companies for non-compliance. But the process can work anyway, and stronger consumer rights should arrive soon.
Finally, if either the bureau or the furnisher isn't playing ball, a lawsuit is the consumer's last resort. Credit report dispute cases are highly specialized, and it's generally best to use a lawyer who specializes in these cases, Wu said. A list can be found at the National Association of Consumer Advocates Web site, www.naca.net.
There aren't nearly as many FCRA experts as there are credit report disputes, however, so some consumers may be frustrated by their inability to interest a lawyer in their case. That's why the previous five steps are so important. Lawyers love plaintiffs who are well-prepared with the right documentation and arrive with what amounts to an open-and-shut case. It's not necessarily fair, but it's true: Consumers who think like a lawyer from step one are much more likely to get justice, and a clean credit report, in the end.

Be wary of d0-it-yourself legal software

Be wary of do-it-yourself legal software

QUESTION: There are so many software programs and Internet services offering contracts, wills, deeds, incorporations, and even divorce and name changes, made specifically to order for me, do I really need a lawyer for routine legal services any more? Can't I save myself a whole lot of time and money by doing it online or buying a program?
ANSWER: Just because you can do something on your own doesn't mean it is in your best interest. Consider medical services. There are some things, such as a common headache, for which you wouldn't even consider calling your doctor. Others, like appendicitis, you wouldn't dream of treating yourself. The same is true of all professional services, including legal services.
Published legal forms, including online "self-help" services, cannot provide specific legal advice for your situation any more than a medical textbook or a video depiction of a particular surgery can teach you to perform surgery or prescribe medication.
When you consult a lawyer, you are not just buying an expensive legal form. You are obtaining legal advice from someone who will fashion, if possible, a document or a legal strategy designed to get you the specific result you need for your situation. Sometimes the document or strategy will be generic enough that a published legal form will suffice. Other times your situation will require something more specific or complex. Do you have enough knowledge, experience and expertise to differentiate between the two?
There will be some times when virtually anyone can handle a legal matter on their own, like taking a couple of aspirin. Other situations will require the equivalent of legal first aid; if you are trained or experienced enough, you can probably handle it. But if there is a lot at risk, or if you are at all unsure of what you are doing, you should at least get a free or low-cost initial consultation to check into the possible benefits of having specific legal advice before trying to perform what might be a legal appendectomy on yourself.
Don't be misled by claims that the form you are considering is "valid in all 50 states." Usually the substance of the document is equally crucial to getting a good result as the form's ultimate validity. What will it matter if the will or contract is valid, if it doesn't end up doing what you need?
The rule in the marketplace for legal documents is "buyer beware." All professions impose a higher standard on their members than that. With legal forms, you are on your own. With a licensed lawyer, doctor, accountant, engineer, architect or any other professional, you purchase the loyalty and expertise of a professional. Often enough, that's well worth the cost.

Watch an Identity thief's "commerical"

PLAY VIDEO: Click to see an excerpt of an identity thief's "commercial," which was posted on YouTube recently. Msnbc.com's Bob Sullivan reports.

Identity theft is usually a virtual, intangible crime. The theft often occurs in cyberspace, with criminals ordering merchandise with stolen credit cards, or downloading cash from online bank accounts. The victims rarely know anything has happened until months -- or even years -- later. There's no blood, no shattered glass, no broken locks. Not even the anxiety rush that comes after the brush of a pickpocket.
But identity thieves, in the end, are real people stealing real money and causing real harm. And surprisingly often, they are friends, family members, or co-workers who initiate the crime by stealing personal information found on papers left around offices or homes. The stolen data can be surprisingly easy to come by, as this ID theft “commercial” shows.
In it, a YouTube poster claims to have a cache of stolen data dossiers for sale. He films himself sitting in his car, sifting through what appear to be file folders, perhaps freshly stolen from an office or a dumpster outside an office building. With a shaky hand, he shows some of the files, then announces that he will sell complete data sets for $25 -- or at a discount of 5 for $100 -- to anyone who e-mails him.
You can watch part of the video by clicking above. We've included only a small portion of the video to avoid abetting what appears to be a crime. Here's more of what the salesman had to say in the video:
"I have records for sale. These records include the following: Name. Sex of the individual. Social Security number of the individual. Mother's name. Their current street address," he says.
At this point, a beeper begins to sound in his car, perhaps because his seat belt isn't fashioned. Then, he continues to list the items he has for sale. "License number. Their date of birth. Kind of work they are in, the industry that they're in. And their net worth. That's including real estate and any liquid assets. And I could get a good credit read on them as well."
Those details would give an identity thief all the information they’d need to wreak havoc with a victim’s credit report, and probably, their financial life,
Without purchasing records from the poster, it is impossible to determine that the records are genuine. But in a short e-mail dialog with msnbc.com, the poster claimed the information was real and said that he could sell us 100 records if we deposited money into his PayPal account.
He did not answer a question posed about the video, which was removed from YouTube a few days after it appeared, but not before msnbc.com viewed it and copied it. A message at the link now says the video was "removed by the user."
Before finishing the sales pitch in the video, the poster includes some fine print:
"These records are not to be used for any illegal purposes. They are for outsourcing marketing materials and anything of that nature," he said.
He then closed with a polite sign off.

Woman mistaken for girl's suspected killer

Woman mistaken for girl's suspected killer
She says she is getting death threats from people and fears for her safety
MANTECA, Calif. - A Northern California woman who has the same name as the Sunday school teacher charged with murdering an 8-year-old girl says she is getting death threats from people who mistake her for the suspect.
Like the Tracy resident who is accused of killing Sandra Cantu and putting her body in a suitcase, the Melissa Huckaby who lives 14 miles away in Manteca is 28 years old, has a 5-year-old daughter and volunteers at church.
The improbable similarities have created inevitable confusion. News crews keep calling or showing up in Manteca looking for the wrong woman. And so many people posted threatening messages on her MySpace page that the misidentified Huckaby says she fears for her safety.
She and her parents are speaking out in hopes of clearing her name.

Hackers grab more than 285M records in 2008

Hackers grab more than 285M records in 2008
Verizon: Identity thieves are getting better at exploiting careless mistakes
By Jordan Robertson
The Associated Press
SAN FRANCISCO - Hackers made off with at least 285 million electronic records in 2008, more than in the four previous years combined, according to a new study that shows identity thieves are getting better at exploiting careless mistakes that leave companies vulnerable to attack.
The number comes from a study of 90 data breaches investigated by Verizon Communications Inc., which is hired to do a post-mortem on most big computer intrusions.
No victims are identified in the report. Many of the breaches aren't even public. That can happen if law enforcement insists on secrecy because of an ongoing criminal investigation, or if personally identifiable information wasn't lost in the hack.
In many breaches, especially involving lost or stolen laptops, the records aren't used for anything at all.
Verizon's study looked only at breaches involving attacks that resulted in compromised records being used in a crime, like making counterfeit credit cards and buying homes and medical coverage under someone else's identity — and on their dime.
The company found that 90 percent of the breaches it investigated could have been avoided with basic security measures.
One of those is recognizing how valuable so-called "non-critical" computers are to hackers.
Peter Tippett, vice president of research and intelligence for Verizon's business security solutions division, says criminals aren't looking to crash through the front door with a brazen computer attack. Often they're content to feel around the edges and look for vulnerabilities that can get them in through the equivalent of a side window.
Even by tapping into computers of low-level employees who don't handle sensitive data, hackers can get a toehold for installing more malicious software that scans the network traffic and looks for vulnerabilities in other computers.
The study also found that data breaches are getting more severe because criminals are using sophisticated new programs that were custom-designed for particular attacks and weren't known to the security community or law enforcement.
Verizon says 93 percent of all compromised records in its study came from the financial sector.

Imposters wreak havoic with tax returns

When Aaron Marks tried to electronically file his tax return last spring, it was rejected by IRS computers. The reason, according to the agency, was that someone had already filed a return using his Social Security number. Not to worry, an IRS operator told him on the phone, just mail in your tax return and it’ll get fixed. "(The agent) acted like there was nothing to panic about," Marks said.
But a year later, the Boston resident still doesn’t have his $2,000 tax refund.
About the same time Marks tried to file, IRS officials testified before the Senate Finance Committee about the problem of tax return ID theft. The committee heard horror stories about the ease of filing false tax returns, the criminals who essentially steal citizens' refunds, and about the thousands of Americans who sometimes spend years dealing with the fallout.
For years, tax return scams have been relatively easy to commit. Armed with a Social Security number and the right company tax ID, criminals could file a return and likely get a refund check, as long as they filed before the legitimate SSN user. In fact, many criminals exaggerated deductions or withholding amounts in the returns to get an even bigger refund check, causing further problems for the real taxpayer down the road.
IRS Commissioner Douglas H. Shulman, who had just taken office weeks before the April 11, 2008, hearing, pledged major changes to stem the growing problem. He promised a new identity theft investigation unit within the IRS and a new 1-800 number for victims. He also said the entire agency would be trained to better handle the problem.
"If you say the words ‘identity theft,’ you'll be sent to a person trained to deal with identity-theft victims," he pledged.
The changes have achieved mixed results.
The IRS launched its new unit, the IRS Identity Protection Specialized Unit. There's a Web site and a toll-free number for victims at 1-800-908-4490 that's staffed 12 hours per day.
Aaron Marks, however, still hasn't received his $2,000 from the 2007 tax year, or, his 2008 stimulus check. And this year, when he tried to electronically file, his return was again rejected. He called the IRS. An agent told him to paper file. He insisted that more action be taken. He demanded a manager. She told him his refund check was sent out last year, but wouldn't tell him where, or even confirm that it wasn't sent to his home address.
"Then she told me to tell the Federal Trade Commission," he said. When he filled out an FTC Identity Theft affidavit, he was then told to get a police report.
"The Boston PD aren't going to know what to do about this," he said. Including his expected refund from this year, Marks figures he's out $4,000 right now. Meanwhile, he figures, a criminal is running around with his tax refund.
"The only reason I found out about this was because I expected money back," he said. "Who knows how big this problem really is?"
The IRS says it knows, and it's miniscule. Spokeswoman Michelle Lamishaw said tax return ID theft hit a tiny fraction of 1 percent of all returns all returns last year.
"It is not what we consider widespread," she said. "But the impact on individuals we take very seriously." Lamishaw said she was unable to discuss Marks' situation because IRS agents are not allowed to publicly discuss any taxpayers' account.
'A huge potential to really address the problem'Nina Olson runs the National Taxpayer Advocate Service, an agency that helps citizens engaged in entrenched battles with the IRS. A frequent critic of the agency, she gave it relatively high marks for its new identity theft initiatives.
For the first time, she said, the agency has initiated a "flag" to track citizens struggling with identity theft. Even consumers who merely suspect they might suffer tax return fraud -- for example, a victim who lost a wallet -- can now ask the IRS to add such a flag and not send a refund check to a potential imposter. And it has developed "business rules" to help it determine the rightful SSN user when multiple returns are filed, similar to rules used by credit card firms to identify fraudulent credit card transactions, she said.
The agency also has added the ability to proactively inform a citizen if a Social Security number is being used by someone else, she said. The agency has plans to send warning letters to SSN holders, but has not begun. Only recently did it get legal clearance to send such letters, she said.
"The new unit has a huge potential to really address the problem," she said. "The progress in the last year has been enormous."
On the other hand, the National Taxpayer Advocate Service has seen an 88 percent increase in ID theft cases this year over the same period last year. It's unclear if the spike means an increase in crime or merely an increase in awareness, but either way, the problem is still severe, she said.
Last year, there were 24,000 known cases of tax ID theft, and that number severely undercounts the actual number of victims, many whom have yet to discover the problem, she said.
"Those 24,000 taxpayers are spending their lives on the phone. Maybe their wages are being garnished. Maybe they found out because there was a lien," she said. "For those victims the problem is very real. It's often a full-time occupation to fix it."
No faithIt's not clear why Marks' case continues to slip through the cracks. Lamishaw said IRS operators be aware of the agency's ID theft hot line, but speculated that there might be a communications lag because the office is new.
Recently, Marks found his way to the Identity Theft Resource Center Web site, which recommended people in his situation contact the Taxpayer Advocate office. He did so, and said that he spoke to a helpful caseworker who took an interest in his problem and offered to help. He’s optimistic, but he’s still waiting for his refund.
"My faith in the federal government has been kicked down yet another notch," he said.
Lamishaw, meanwhile, urged victims like Marks to contact the IRS’ toll-free ID theft number, even if they've already tried unsuccessfully to resolve the problem earlier.
"We do recommend people give this office a try, even if they were frustrated in the past," she said.
RED TAPE WRESTLING TIPSThere are many ways an identity thief can get a hold of the necessary information and file a tax return in someone else's name. Linda Foley, director of the Identity Theft Resource Center, says some imposters are illegal immigrants using someone's Social Security number in order to get work permission. But there are many other variations on the crime.
"People who don't want criminal histories known, have bad credit reports or may be hiding under another SSN to avoid child support payments," she said. "We get a number of cases like this."
Early detection of tax return ID theft is important to quickly resolving the problem. Watch for any suspicious signs -- the rejection of a return, a surprise bill from the IRS for unpaid taxes, a lengthy delay in refund payment, or even unexpected entries in your annual Social Security earnings statement.
The IRS ID theft fact page is very useful.
At the first sign of a problem, call the IRS Identity Protection Specialized Unit at 1-800-908-4490. You don't have to wait for a tax problem to warn the IRS that you've been a victim of ID theft, however. If a criminal is using your SSN to open credit accounts or compromise your identity in other ways, consider calling the IRS hotline and asking the agency to flag your account. Lamishaw, the IRS spokeswoman, said that won't prevent a citizen from e-filing or delay refunds, it will just instruct the agency to take a bit more care before mailing out refund checks.
And every taxpayer should know about the National Taxpayers Advocate Service. Dealing with the IRS can be challenging. The advocate's service is designed to help taxpayers who feel they’ve hit a brick wall in dealing with the agency. Last year, the advocate’s office had 275,000 open cases. There are offices in every state in the nation. Click here to find the one for your state.

Imposters wreak havoic with tax returns

Scam pretends to be Publishers Clearing House

Scam Pretends to be Publishers Clearing House

By Hailey Higgins, Local News 8 Reporter

IDAHO FALLS - The Better Business Bureau is warning you to beware of letters claiming they're from Publishers Clearing House. The letters say you have won a second place prize of $1 million. Despite how official the letters look, the recipient is the target of a nationwide scam that is now in Idaho.

A check comes with the letter for as much as $5,900. The victims are told in order to receive the money, they must cash the check and wire back $4,000.

The BBB said the check is fraudulent and any money wired to the scammers cannot be recovered.

"If you get a check for $4,900 in the mail and it looks like it's coming from Publishers Clearing House, that's a name that's well known, as far as giving true cash giveaways and you're not going to look real logical. But do stop and think about it," said Donna Oe, Better Business Bureau.

The fake checks are copies from legitimate businesses stolen by the scammers.

Since last month, reports of the Publishers Clearing House scam have come in from 20 states. If you have received this scam, contact the better business bureau.

Phshing Scam hits local phones

Phishing Scam Hits Local Phones

By Hailey Higgins, Local News 8 Reporter

IDAHO FALLS - There's something "phishy" going on and it's coming to cell phones in Bonneville and Fremont counties.

Both Sheriff's Offices received multiple complaints over the weekend. Residents receive calls and text messages on their phone from a caller asking them to verify credit and debit card information.

Fremont County Sheriff's office said it is an obvious attempt to obtain financial information.

Putting Scammers to the test

IDAHO FALLS - People are often tempted to believe they can make a few easy, extra bucks. One 84-year-old Idaho Falls woman, got a big check in the mail and this isn't the first time it's happened to her. The directions are simple: deposit the check and get the money."I thought I was really rich," says Alice Beaty, 84-year-old."She's gotten probably about six," Diane Reinhart, Alice's daughter."I think elderly people are more vunerable," says Leonard Beaty, Alice's son."My mom who is 84-years-old, she gets excited," says Reinhart."Didn't know, never had nothing like this happen before you know," says Beaty."We called about it, there was a guy from Canada said ok if she goes, takes it and puts it in her back account she could get the money," says Reinhart."Right now all you have to do it go to the bank and deposit it. Make sure you keep this confidential because we always have double claims, people always come and want people's money, always protect your winnings and protect the letter sent to you," says the operator."This check will also serve to help pay for your occurred expenses for fraudulent and stolen identity changes," reads Beaty."That check is to help pay for your taxes," says the operator."So I have a check for 3-thousand dollars, you're saying I am going to get another check in the mail for 250-thousand dollars?" asks Araksya Karapetyan."Yes, by Friday you'll get it in the mail," says the operator."We went went to the credit union and they said the check was no good," says Reinhart."That check is good ma'am, there's nothing wrong with that check ma'am," says the operator."Call us back when you deposit the check and we'll get your bank account information, that's why I said no," says the operator."All you need to do is go to the back and deposit it, when you finish then call me back," says the operator."Usually about 3-thousand 7-hundred 40 something dollars, and then the last one was like 48-thousand dollars," says Reinhart."I am assuming if this was a check they would have her name correct, her last name is spelled with one "t" not two," says Reinhart."You should be very excited, I don't know why you're asking me too many questions. You know I get this a lot, but I am just helping you get your winning ma'am," says the operator."If I had not been there for my mother, she probably would have done it and they would have got all the bank information, " says Beaty."I am a reporter for CBS affiliate television and I am calling because this is a scam. So, I want to know if you have anything to say... Hello??? " says Araksya Karapetyan.One lady who called Eyewitness News earlier this week, says she kept getting similar checks like those in the mail. But when she went to the bank they not only cashed them, they later forced her to pay every single penny back to the bank... all 10-thousand dollars of it.