Recently in Hot Topics Category

The best way to avoid being scammed this year is to avoid giving out your personal information to anyone who may be soliciting it. Whether it is through email, phone, voice or text -don't assume people are who they say they are!

January is Financial Awareness Month and a great time to act on your new year's financial resolutions. One step you should consider is figuring out your plan of action should you learn your information has been stolen or compromised.

Remember, the best way to prevent an identity theft -is to plan for one! Would you know who to call if your wallet went suddenly missing? Do you have a plan of action?

Also it's important to stay on top of your credit reports. One in four have errors that could cause you to pay higher interest rates and higher insurance premiums.

Order your free annual credit reports from the official place.

You can either call the automated toll-free line at 877-322-8228 or order them at annualcreditreport.com (but be watchful of your spelling, or you may be taken to a fake site)

Also take the time to review your credit card statements and bank accounts. Stay informed of the latest scams, as knowledge is power. You can search here and find info on various scams!

Some of the same old scams are circulating -with new twists;

Twitter Scam

Users of the popular social networking site Twitter have been warned to look out for a scam that is intended to steal the user's login and password details.

The scam starts with a direct message appearing in a user's Twitter account, urging them to check out another site - a scam message such as "hey! check out this funny blog about you..." is pretty common.

Click on the link provided and you'll be taken to a screen that looks a lot like a Twitter login screen but is actually a trap.

Twitter has now posted a number of blogs on the scam and had one crucial piece of advice for users who are worried about the integrity of their information in this post: "If this has you feeling a bit weirded out, feel free to change your Twitter password."

Here's a screen shot of the bogus screen.

*************************************************
Credit Union Scam

The Cape Regional Credit Union is warning members of an e-mail identity theft scam. But please beware that scammers have been using various credit union names -and sending throughout the web. They hope that their email lands in someone's in box who has an account with that particular credit union -and then falls for their scam.

The scam email reports that the email recipients bank card has been deactivated. The fraudulent e-mail states that "for your security, the card and PIN have been disabled." They provide a phone number  -urging you to call in order to reactivate your card. Don' t fall for it.

Here's more on this scam.

*******************************************
LifeLock warns of Copy-Cat Scam

LifeLock prides itself on educating consumers about the dangers of identity theft and what scams are often used to obtain money or personal information.

Now LifeLock is issuing a warning to consumers about criminals scamming consumers by posing to be real companies, including LifeLock.

A telemarketing scam has recently come to LifeLock's attention, and now the company wants the general public to understand that the most common scenario is:

* A senior citizen receiving a phone call from an unknown individual, pretending to be a LifeLock related company;

* The unidentified individual falsely tells the senior citizen that his/her personal information can easily be found on the Internet;

* The unidentified individual scares the senior citizen into providing bank account/debit card information and authorizing the transaction to allegedly provide a solution;

LifeLock representatives will never call consumers at home or sell anything that is not available on the company website.

 Anyone who may have had an experience similar to that listed above should contact the company at 1-800-LIFELOCK.

T'was the week before Christmas and oh, was I stressed.
Then an email arrived... "you've got problems" it said.

It appears someone's hacked the blog on your site
cause when I clicked on your links, what I saw wasn't right!

With a quizzical face and lump in my throat,
I decided to check out this ominous note.

As I clicked on the browser and landed on my site,
 a smile abound as all looked alright!

I wondered was his email a hoax -
Was this just a not-so-nice joke?

I fired off an email that wasn't so kind...
"don't know what you mean as my site looks just fine!"

He quickly responded to my one sentence note...  
Denise he said, this is no joke,

Last night you were hacked -it was clear on the site
It may work now -but it didn't last night!
Someone attacked you -this much I know.
I'm not a kook Denise-and this is no hoax!

I read your blog often and know of your work,
I'm being honest, I'm a fan -not a jerk!

I've read many emails over the years
and can usually judge if they're fake or they're real.

My gut was telling me this guy was sincere -
my heart started pounding, my hands trembled with fear    

I sent off this email to Steve, my webmaster,
within seconds he called to confirm this disaster.

Yes, you were hacked, this much is true.
We're under control now -there's nothing you can do.

No need to fret the problem's been fixed -
the hackers are gone, their plans have been nixed.

We'll need to watch it and there's still work to do,
But you needn't worry -we're protecting you.

Twas now two days before Christmas and all pleasantly hectic
Though stress level high -the site problems were corrected.

There were presents to wrap and still shopping to do,
Lots of baking and cooking and cleaning yet too!
The holidays were here, no time to relax
and then came the news...OMG, another hack!

It was quiet apparent there would be no relaxing for me
As these mean hackers had more tricks up their sleeves.

Someone again hacked the server you're on
And we've worked for days -our hours so long!

A new server's in order to stop these attacks.
But will that work, I quickly asked back?

I listened intently to the noticeable pause,
as he sighed and responded "I'm not Santa Claus.

 I can't do magic Denise-but we've done all we can,
 at least your blog's up -and running again.

If you are the target -we'll soon see friend,
And if they come back,  we'll deal with them then.

Don't worry now, there isn't a reason...
Just try and relax-it's the holiday season!  
 
After an uneasy night filled with tossing and turning
I awoke to a beautiful sunny Christmas Eve's morning.
The new server was running and all was okay
Did this server switch chase those mean hackers away?

That question would be answered; a dreaded call soon came through...
You've been hit again the voice said, -they're after you!

I'm sorry to say we must shut you down.
 We can not continue to fool around!

I thought for a moment, scratching my head,
Thinking things were so bad... now my site's dead!
But then an idea sprang to my mind,
And I became determined that with it, we'd be just fine!

We'll get Albert involved, a top security guy.
He's costly but worth it -let's give him a try.

Hey Albert we have a big problem here,
can you take a look and share some ideas?

"Well of course" he answered in a pleasant but concerned monotone voice,
 you need better security Denise -you now have NO choice. 

And whenever I hear of a badly hacked blog,
It's usually by someone who's out to play "God"
They'll hack and they'll hack all night and day,
Whenever they don't like what you chose to say!

Have you been controversial or making some noise?
Are you up against foes who don't like your voice?

Yes, I relayed as a matter of fact,
I stood up for others who have been needlessly attacked. 

Does it appear these hackers have targeted me?
Yes, he replied, that's clear to see!

Though the attacks were directed squarely at you
-next time they'll need to come through me -to get to you.

That's nice to hear, I like what you say
But the truth is Albert, they may not go away.

He smirked, then confirmed, with a sly grin on his face
yes, this could happen again -if they're determined to stay
But, if they come back to wreak havoc again,
next time, the FBI might just be waiting for them!

I'm glad to hear you won't play their games.
Let's track them down, let's name their names!

Whether it's a greed, corruption, abuse or fraud
we must continue to expose the harm these crimes cause!

So this is my tale of holiday woe,
taking my site down is not nice, don't you know!

But let this serve warning and maybe strike fear,
the next time you hack me the FBI may be near!

I thank all who wrote offering support and good luck
ya, they may have shut me down -but not up!

When a corporation includes a BMA requirement in its contracts, it means your dispute must be decided by a private legal system. Because BMA clauses are "binding," you must abide by the decision and have no right to appeal.

You cannot walk your case through the doors of the judicial system because you have (knowingly or unknowingly) waived your rights to have access to the court.

You can't sue me clauses usually mean you can't sue them for any liability in a court of law-but they can still sue you. That's right-they don't waive their rights-they only force you to waive yours. It isn't a reciprocal clause-it's a one way street and they own the roadway.

The National Association of Consumer Advocates is gearing up for National Arbitration Fairness Day which will be March 11, 2009. NACA will be bringing consumers to Washington, DC to tell Congress and the media why binding mandatory arbitration is an unfair system.

Are you dealing with an arbitration clause in a contract?

If you have a story or feel wronged by a binding mandatory arbitration clause, please email me or feel free to comment on this blog, or you can always tell your story here. You may be asked to go to Washington and share your story.

For more facts and information about Binding Mandatory Arbitration see a few early blogs:

Binding Arbitration; What does it really mean?

At Odds with a Creditor...

What those "you can't sue me" clauses really mean...

You Can't Sue me -four little words...

**********************************************

Credit Card Practices about to Change...

Today the Office of Thrift Supervision (OTS) approved a final rule barring unfair credit card practices. The Federal Reserve is expected to release their rule (which should be identical) this afternoon. This is a nice (albeit late) first step towards protecting consumers from unfair and deceptive practices of the credit card industry

We should be pleased that the federal regulators have finally implemented some protections for consumers. At the same time, it is very disappointing to see that these limited protections won't take effect until July 2010. It is also very clear that much still needs to be done to protect consumers from the bad practices of the credit card industry and that we will need work together towards that goal as a new Congress and a new administration takes office.
 

You can bet there's a lot of  buzz over today's unexpected announcement that LifeLock, and TransUnion, one of the "big three" credit bureaus, have entered into an Agreement to collectively utilize TransUnion's automated system to help streamline LifeLock's process of placing fraud alerts, and opt outs, for their subscribers.

At first glance this Agreement would seem implausible, to say the least. However, with a second glance it makes perfect sense. If in fact their common goal is to thwart identity theft and their objectives are focused squarely on how best to protect consumers and creditors by reducing risk and loss from fraud, then sharing a secure automated system -is a logical and wise choice -but I can't help but wonder, how this latest news will affect Experian -and their lawsuit against LifeLock.

Be careful what you wish for -lest it come true!  

Experian filed a lawsuit against LifeLock earlier this year claiming the company was misusing the fraud alert system as laid out in the Fair Credit Reporting Act (FCRA) and in doing so was costing them money. In a nut shell, Experian wanted LifeLock to stop setting fraud alerts on behalf of consumers period!  But I don't think this latest Agreement between TransUnion and LifeLock is exactly what they were wishing for!

Experian, Equifax and TransUnion all place fraud alerts on consumer credit reports, on a daily basis. Consumers can request a fraud alert by calling one bureau who then shares the consumer's request with the other two bureaus. With fraud alerts in place, creditors, lenders, or other prospective users of your consumer report must take steps to verify your identity before they can issue new credit, increase credit lines, and obtain utilities, cell phones or new loans.

Ultimately, if TransUnion is now going to essentially "set" consumer fraud alerts on behalf of LifeLock and their subscribers -it would appear as though Experian's lawsuit may have run its course.  And you can be certain that this Agreement is not good news for Experian.

LifeLock came bursting on the scene a few years ago and since then has grown to become the leading identity theft protection company with well over a million subscribers who find their array of proactive services both of value and convenience when fighting against identity theft.

In addition to being proactive, they additionally take over the time-consuming process of dealing with banks and creditors to help consumers restore their name in the event an identity theft occurs. Among their services, such as scouring underground websites where our information is bought and sold, replacing lost or stolen wallet contents, one of the services that directly relates to utilizing TransUnion's proprietary service is the setting of fraud alerts and reactivating them, as the system call for, every 90 days.  

 LifeLock's proven desire to continue to find ways to deter identity thieves, form useful partnerships, pursue stronger consumer protection measures -and their continued efforts to educate the public, says a lot about their commitment to promote consumer protection.

I hope this unlikely and unexpected announcement of a joint venture between LifeLock and TransUnion will serve to remind others, including our government, that working together to circumvent problems -regardless of personal agendas or corporate profits, is the best way to become part of the solution, and not the problem. And it doesn't hurt to remember that Karma -is unavoidable!

For the full press release click here.

What's Hot! Every year the Identity Theft Resource Center (ITRC) shares its thoughts for the upcoming year. The following items are ITRC's predictions for 2009:

Real Estate-based scams: There are multiple scams that attack the equity in a home or which may be used to establish a whole new home loan. Home Equity or Mortgage Frauds can be found on the Internet, local advertising and even via word of mouth. Some real estate scams include refinancing current loans, adding in unforecasted payments or property to increase the cost of the loan. Your home, while fully paid for, could even be entangled in a second mortgage without your knowledge. Due to the unfortunate turn in the real estate market, some home owners find themselves strapped and falling behind. Opportunistic scam artists might propose relief through a bogus land grant process. The best strategy for a home owner is to talk with your bank or mortgage company before engaging an unknown company.

Credit Card scams: With the current economy, credit will be tight. Thieves may advertise the ability to get credit cards despite a poor credit score or the lack of a Social Security number. There will continue to be more scams that offer to consolidate your credit card debt or to renegotiate your interest rates.

Other scams: Job scams are on the rise as people seek second sources of income. An example would be an offer to act as an account's receivable clerk for a company outside the U.S. - opening an account, receiving checks, depositing them in the bank and then wiring them to the company. Consumers have also been receiving more "phishing" scam emails due to the merging of financial institutions and stores. These emails ask you to confirm your personal identifying information. Finally, a variety of emails reporting to be from the IRS have been circulating, including tax refund offers, audit information demands and verification of citizenship status. Don't open attachments or go to another website due to cybercrime.

Professional thieves and targeted attacks: Along with law enforcement and the financial institutions, the ITRC is anticipating an increase in more sophisticated ways to "mine" information, sometimes by organized crime groups. Cybercrime, which includes transporting or selling large amounts of personal information from one group both nationally and internationally, will continue and expand. Part of this trend includes "skimming" (duplicate scanning of credit cards or debit cards), and fake fronts on payment scanners and ATM machines. Peripheral crimes, which use identity theft for funding, will continue and increase. Cybercrime is also tied to malware attacks on individual computers of consumers.

Check Fraud: As it becomes more difficult to get new lines of credit, identity thieves may be drawn more to commit check fraud. These crimes may take the form of stolen checks, using checks thrown into the trash by unknowing consumers or even synthetic checks. Synthetic checks typically have something that links them to a consumer, usually in the name and address section of the check. The checks may be for a closed account, an account that never existed or with a bank the consumer never used.

Breaches: Some companies, public entities and other groups that collect personal identifying information are cutting IT security staff. This may be due to apathy or to budget cuts. Targeted attacks of entities may increase as thieves develop improved techniques for hacking and other forms of illegal data acquisition, especially if fewer security measures are in place.

Other Identity Theft Crimes: ITRC anticipates an increase in the fraudulent use of SSNs for work by people who can not use their own Social Security number or who don't have one. As law enforcement and the public realize that identity theft is not just a financial crime, the ITRC expects more calls from people regarding criminal and medical identity theft, and from those whose information is negatively impacted due to the actions of an identity thief. Finally, thieves are aware that the Social Security numbers of children, the deceased, the elderly and even critically ill patients are excellent opportunities for long term use of another's information.
Increase in for-profit consumer products: This market has both positive and negative sides. There are some products in the market that meet the expectations presented and others that don't. Consumers need to do their homework and understand that it is impossible at this time to completely protect a consumer from identity theft with the products currently available.

On the Positive Side: More collaborative efforts are being established to more deeply define the issues, isolate the problem areas and start policy statements on ways to deal with multi-faceted crimes. The Red Flag Compliance Laws (implementation July 2009) are a set of regulations set by the federal government which will help entities to audit their security programs, strengthen weak areas and set up written policies. However, it will be up to individual entities to enforce those policies.

The ITRC projects an increase in the training of law enforcement regarding identity theft, from local to federal levels. Federal law enforcement will be even more aggressive in their actions against international syndicates especially in cybercrimes and international job scam operations. The IRS has trained and expanded its IRS Taxpayer's Advocate program to now assist victims of identity theft. The Crime Victims' Rights Act finally includes white collar (including identity theft) crime victims.

Many states have made significant strides in stopping the use of the Social Security numbers as an identifier. We foresee the federal government addressing similar problems in the identification cards of military members and their dependents as well as those seniors using Medicare.

Conclusion- While there still are major problem areas, there are exciting new programs on the horizon. Additionally, we predict that there will continue to be an increase in the number of state and federal agencies and nonprofits that provide identity theft victim advisors at no charge or victims suffering losses and problems from this crime.

The Identity Theft Resource Center is a non-profit organization established to support victims of identity theft in resolving their cases, and to broaden public education and awareness in the understanding of identity theft. It is the on-going mission of the ITRC to assist victims, educate consumers, research identity theft and increase public and corporate awareness about this problem. Visit www.idtheftcenter.org

Ironically, buying big ticket items on credit is not the type of thing that is going to make credit card companies cut you off. Want to purchase a big screen TV? Go right ahead. Taking a vacation to Europe? Charge to your heart's content. But if you use a credit card for a $4 prescription, you may have a problem.
 
Credit card companies have a great deal of leeway when it comes to changing the terms they use when you borrow money. They can increase your interest rate, reduce your spending limit, or even cancel your account. Any or all of these can be devastating if you have lost your job or have unexpected bills.
 
Recently, American Express began sending letters to many of its clients placing new spending limits on cards and changing the terms under which they lend. And for the first time, Amex is looking at what you buy before making a determination about your credit worthiness.
 
Amex is not alone. Many of the largest credit card companies in this country have had similar policies in place for some time. And although the policies are severely flawed, lenders are so scared that they don't seem to care.
 
So if you have been thinking about paying cash for all of your Christmas presents because you don't want to run up a big debt next year, you may want to think twice. If your plan means that you have to place small, everyday purchases on your card - purchase that you will pay off in one or two payments - there is a real chance that your strategy could backfire. It could cost you money in the form of higher interest rates, and it could mean that unused portions of your credit limit simply disappear.

Jim Malmberg 

Equifax has reached a settlement with the State of Indiana after the attorney general there says the company broke Indiana law.  Equifax will pay $65,000 to settle allegations it waited too long to notify and freeze consumers' credit reports.

Attorney General Steve Carter says Indiana law requires credit-reporting agencies to freeze credit reports within five business days of being notified by consumers.  Carter says Equifax did not do that for 19 people, including one who had to wait about two months.

The state also requires the agencies to notify Indiana consumers within 10 business days after their credit reports have been frozen.  Carter says Equifax did not do that for 24 people. He says one person had their notification delayed by six months.

Indiana passed the credit-freeze law in 2007 to help protect consumers from identity theft.

Under the law, consumers may mail letters to each of the three credit reporting agencies -- Equifax, Experian and Trans Union -- and demand new creditors be banned for accessing their credit reports. That means an identity thief would be unable to take out new credit in a consumer's name, even with an accurate Social Security number.

The state also requires the agencies to notify Indiana consumers within 10 business days that their credit reports have been frozen. However, Equifax failed to do that for 24 people, including one whose notification was delayed for six months, Carter said.
Source: IndyStar.com