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Protect Your Identity
Protection Power members are safeguarded against the growing threat of Identity Theft
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Learning Centre
A wealth of up-to-date identity theft information, tips and other resources to keep you safe
Stories of identity theft, credit fraud, mistaken identity and data breach hit the news media almost daily. This 21st century crime wave has got government and police officials on high alert – and we all should take note.
For more eye-opening news hits, please visit our videos page. Some of the top news stations and programs in North America have investigated facets of identity theft. Their work is well worth viewing.
Check back here often for relevant articles about identity and credit issues from around the world.
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New tools teach Internet privacy protection -
The federal government has launched a new set of tools to help teach young Canadian Internet users about the importance of protecting their online privacy.
The tools include a video, tip sheet for parents, and a presentation geared towards raising awareness about the importance and practice of Internet privacy protection. All of these can be found on the Office of the Privacy Commissioner's Youth Privacy website.
"While our kids may be growing up in an age of digital interaction, they still value their online reputations and they want to protect them. The problem is, many just don’t know how," Privacy Commissioner Jennifer Stoddart stated in a government press release.
"The new tools launched by our Office offer the practical advice that parents, teachers and students can all use to help build a secure online identity and keep their personal information safe."
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7 charged with cross-Canada credit fraud -
Ontario RCMP have charged seven people from Quebec, all aged between 19 and 24, with unlawful possession of credit card data. The seven accused are suspected of stealing from consumers all across Canada.
RCMP officials say the fraudsters placed cloned or fake PIN pads at merchants in and around Toronto. The PIN pads gathered financial data from credit and debit cards, which was then loaded on to blank cards. The overwritten cards were then used to access bank accounts.
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Canadian man faces 22 years for fraud -
Canadian Adekunle Adetiloye was living a lavish life in North Dakota, although he was unemployed and on welfare.
How did he do it? The answer lies in the hundreds of fake bank accounts he opened. His downfall came through the two fraudulent credit cards that finally allowed authorities to charge Adetiloye with fraud.
According to a story on CanadianBusiness.com, the man now faces up to 22 years in prison. Investigators believe he was behind a scheme to open nearly 600 fraudulent bank accounts, stealing money from at least 22 different banks.
"Characterizing this fraud scheme as massive, if anything, is an understatement," Assistant U.S. Attorney Nick Chase from North Dakota stated in court documents.
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Scams prevalent in tough economic times -
BC Hydro is just one major agency warning the public to be aware of a popular scam this winter. In BC, a number of consumers have reported receiving a phone call from a telemarketer selling a power-saving device.
The offer, says BC Hydro, is a scam. According to the Sooke News Mirror, similar scams have been reported in other parts of Canada.
In general, consumers should be wary of any telemarketers and unsolicited phone calls. If in doubt, call the agency yourself to confirm the deal is legitimate.
Take a moment to review the Better Business Bureau's top 10 scams of 2012.
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Zappos breach hits 24 million customers, including Canadians -
Zappos, an online shoe and apparel retailer owned by Amazon, suffered a major security breach on Jan. 15. A hacker gained access to the company's customer database – a huge list including the personal details of some 24 million customers from around the world.
According to itBusiness.ca, Zappos CEO Tony Hsieh has publicly stated that no credit card information was accessed. However, customer records, including names, email addresses, shipping addresses, phone numbers, and passwords, were exposed.
The company is urging all customers to change their passwords immediately. However, the site is currently inaccessible to anyone outside of the US. Customers should also change login details of all sites in which they use the same password.
For more about dealing with data breach, read this article in Protection Power's Learning Centre.
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University Victoria data theft affects 11,700 -
A weekend break-in at the University of Victoria resulted in the theft of laptops, mobile devices, handheld electronics, cash, and cheques. Of particular concern are the 11,700 employee records that were stored, unencrypted, on a stolen mobile device.
According to the Vancouver Sun, the data included names, payroll information, and social insurance numbers, putting all affected individuals at a high risk of identity theft.
Anyone who has been an employee of the university between January 1, 2010 and now should contact their banks; any suspicious activity that may be fraud should be reported immediately to police.
B.C.'s Office of the Information and Privacy Commissioner is conducting an investigation to determine whether the university contravened accepted privacy standards by keeping sensitive, unencrypted information on a mobile device.
Check out Protection Power's article on protecting yourself from data breach.
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Online "Romeo" facing 23 fraud charges -
After allegedly posting false information on dating websites, luring women into relationships, and then using their personal details to open bank and credit card accounts, a 37-year-old Toronto man is facing 23 charges of fraud.
Jason Porter would describe himself as a successful business man, wooing his victims as he got ready to take advantage of their trust.
According to the Globe and Mail, Toronto police suspect the man has defrauded women out of a total of $40,000. His charges include using a credit card obtained by crime, break-and-enter, and laundering proceeds of crime.
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Top 10 scams of 2012 -
The Better Business Bureau, Consumer Protection B.C., and the B.C. Crime Prevention Association have compiled a list of what they believe will be the Top 10 scams of 2012. Get ready for more brand spoofing, social-network scams, and spam.
Briefly, here is the Top 10 list; for more details, read the whole story on CBC.ca:
1. Brand spoofing: email and text messages that look like they come from a reputable company
2. Advance fee loans: it is illegal for a company to charge you for taking out a loan
3. Gold-buying schemes: make sure you get fair exchange value
4. Financial elder abuse: educate the seniors in your life about possible scams
5. Power-saving claims: always do your own research before making a purchase
6. Unscrupulous door-to-door sales: be wary of aggressive sales people
7. Virus-fixing schemes: never let anyone access your computer
8. Fraudulent locksmiths: always confirm a company's reputation before doing business
9. Penny auctions: think you can get an iPad for a penny? Think again.
10. Anti-social networks: always keep your computer's security systems up to dateKeep up-to-date on all the latest news right here on ProtectionPower.ca!
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Travellers at high risk of ID theft: experts -
Experts agree: the risk of identity theft increases the more you travel. If you regularly tote around smartphones and laptops – devices frequently lost and stolen – the risk is even higher. Business travellers are particularly vulnerable, given the amount of data they usually have on their mobile devices.
The Montreal Gazette published an insightful article examining the problem. According to the report, you are 15 times more likely to have your identity stolen than to have your car broken into; and of 200 data breach cases studied, 38% occurred at hotels or resorts.
A few tips from the article:
• Turn off Bluetooth devices when you're not using them
• Beware of downloading applications, which may contain spyware
• Never announce on social networks you're leaving town
• Always have the latest anti-virus software on your computers
• Never type in passwords on unsecured public networksRead the full article for more tips – and some eye-opening real-life examples of identity theft.
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Card skimmers hit Alberta, steal $25,000 -
An organized fraud ring, believed to be based in Ontario since 2009, has claimed its latest victims: Calgary area consumers using ATM machines. The scam artists install pinhole cameras and skimming devices, capturing both card information and PIN numbers from unsuspecting bank machine users.
The thieves tend to install the devices then retreive them just an hour later. They use the information gathered to create cloned cards and take out their own cash.
This ring has allegedly stolen over $2 million from Canadians across the country and, most recently, $25,000 from residents of the Calgary area.
The Calgary Herald offers this warning to consumers in the area:
“While the devices are usually small and made to blend in with the ATM, police say they can be recognized and customers should be on the lookout for skimmers taped to bank machines. The skimmer is put immediately by the card slot and the camera above the machine.”
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US credit card machines hacked from Romania -
A gang of hackers, based in Romania, is accused of remotely breaking into credit card machines in hundreds of American restaurants and stealing customer information.
Over three years – that's how long it took Subway to realize what was happening and put a stop to it – the gang apparently robbed over 80,000 diners.
According to the UK's Daily Mail, this is how they were able to complete their crime:
“From a base in Romania, they are said to have searched the internet for vulnerable credit card readers with remote desktop software installed. Then, after logging in by either guessing passwords or using a code-cracking programmes, they allegedly installed keystroke loggers.
This allowed them to obtain the details of thousands of credit cards used by customers at around 200 mostly Subway outlets all over the U.S.”
The group then used the information to make millions of dollars in purchases.
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RBC client sees others' account info -
Ava Wong had been the victim of identity theft in 2008, and now knows all about the troubles and trials of trying to get financial records in order again. Which is why she was especially shocked when she logged into her RBC bank account and find full access to another couple's account information.
“I was able to see every statement belonging to their RBC Homeline Plan, starting from July 2007, when they first opened the account,” Wong told Ellen Roseman, a writer with the Toronto Star.
The breach was blamed on a “processing error.” It turns out that at least four bank customers had been affected.
The lesson? Data breaches are not always your fault; this is why it is vital to monitor your accounts thoroughly and take proactive monitoring seriously. Read more about protecting yourself from data breach.
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Cracking down on advertisers who track web users -
Canada's privacy watchdog is cracking down on advertisers who track the online habits of Canadians. It's called "behavioural advertising," and it's become a popular way for companies to deliver ads targeted to a person's specific interests.
The problem? Most consumers don't know their surfing habits are being monitored, nor do they know how to stop it.
A new guidance document lays out new rules advertisers must adhere to, including clearer privacy terms and a way for consumers to opt-out of having their moves tracked.
“Many Canadians don’t know how they’re being tracked — and that’s no surprise because, in too many cases, they have to dig down to the bottom of a long and legalistic privacy policy to find out," Privacy Commissioner Jennifer Stoddart was quoted in the National Post.
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Printers open to hacker attack -
Can a hacker break into your printer, control it from halfway around the world, and use it to steal information or break into networks?
Researchers at Columbia University say yes, it is possible – and even likely. They have found a raft of security vulnerabilities in some top HP laserjet printers.
“The research on this is crystal clear. The impact of this is very large. These devices are completely open and available to be exploited,” Columbia professor Salvatore Stolfo told MSNBC.
The researchers describe the security flaws as a doorway into millions of printers around the world. Which means they’ve also found a doorway into millions of business and corporate networks.
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RCMP: scams are on the rise -
A Federicton woman is “devastated” her social networking accounts have been hijacked; unfortunately, she's just one of a growing number of scam victims in New Brunswick and beyond.
"I'm ready to go back to mailing and phone booths. A huge violation and a sense of security is really weakened," Sheilah MacPhee, the victim, told CBC.ca.
MacPhee says her freinds and contacts have received at least two scam messages that seem to originate from her account.
The local RCMP spokesperson says such scams are on the rise, and have claimed a number of vicitms in New Brunswisk this year – some of whom have lost thousands of dollars.
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RCMP: can't keep up with fraud -
One of the two fraud investigators with the Victoria, BC, police says departmental resources are spread thin – and often crimes like fraud and elder financial abuse are not given the attention they deserve. The bulk of police manpower goes to fighting robbery and physical crimes.
For that reason, police forces across the country are relying on education and knowledge.
Advocates for the elderly are concerned. "Elder financial abuse is difficult in that it requires expertise and investigative support that isn't readily available to most police forces," Susan Eng, director of advocacy for the Canadian Association of Retired Persons tells the Victoria Times-Colonist. "If a police force has a unit, it is often poorly resourced. We need special investigators."
It is key for all who care for the elderly to stay aware of the latest scams and help protect consumers of all ages from abuse.
Start by sharing the article on phishing and email scams from the Protection Power website.
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BC beware: power-saving scam -
In a letter to the editor, Barriere B.C. resident Margarent Houben describes a recent phone call she received, and offers a warning to other locals who might be taken in by the scam.
In the Barriere Star Journal, she describes the scam this way: “Someone phones claiming to be with BC Hydro, offering a power saving device. For a set price, they will send you, by mail, an electronic device that you plug in and it will cut your power consumption by 30 per cent … Once they have you hooked, they ask for your credit card info and bank info. BEWARE! If they really are from Hydro, they would not need such info, as they could simply put the charge on your account, which would then be on your next bill.”
Never give out your credit card or bank info over the phone or in an email message. If you get a phone call like this, it is best to hang up and call the power utility yourself to check the validity of the offer.
Read more about how to protect yourself from phishing and email scams.
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Canadian gov't insider breaches soaring -
The fourth annual Telus-Rotman joint study on Canadian IT security practices has turned up some troubling facts about data breaches within the government sector. Insider breaches within government have increased by 28% between 2010 and 2011 – and are up 68% since 2008.
That means insider breaches now make up about 42% of all government breaches (by way of comparision, insider breaches account for 16% of breaches at private businesses).
According to a story on CBC.ca, insider breaches of this kind include both malicious and accidental incidents, and range from laptop or mobile device theft/loss to unauthorized access to networks and databases.
The story goes on to quote Michel Juneau Katsuya, a former CSIS agent and manager who now advises governments and businesses on IT security. Katsuya says most government employees are uninformed about the dangers of data beach – not criminally minded:"Unfortunately, the government is doing a really, really poor job in raising the awareness.”
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Toronto thieves use Linkedin for ID theft -
Toronto police officers are reporting that several high profile CEOs and other members of the city's business elite have been the targets of fraud after their personal details were used to obtain credit cards or other services.
The police believe the information was gathered on LinkedIn and other business networking websites. They also believe the crooks are located in other countries.
Insp. Bryce Evans, of the Toronto police force's financial crimes unit told the Toronto Sun, “Some people are posting way too much personal information on websites … Thieves are stealing this information to create identities and commit fraud.”
Once having gathered some basic info – name, photo, job positions, employers, addresses, and so on – from LinkedIn, the fraudster would use Google to gather further information about the suspect. Eventually, the identity thief had enough to open credit card accounts or steal funds.
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NS lottery winner besieged with scams -
A man from Truro, Nova Scotia, who won $11 million last year in the lottery, says today: “I wish to hell I had burned the ticket,” according to Truro Daily.
Allen Large donated most of the money he won to charity, which attracted a lot of media attention. Unfortunately, it also caught the eye of international scam artists. And now, people around the world have received bogus email offers to share in the fortune.
"It's never stopped since we won the frigging money,” Large tells the paper. “I'm really cheesed off with it. And, these buggers that's calling at three o'clock in the morning and interrupting my good night's sleep.”
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2,700 Canadian tax files on missing laptop -
A laptop containing the confidential tax files of 2,700 Canadians has gone missing. An employee of the Canada Revenue Agency took the information home and let a friend download it onto the laptop.
According to CTV.ca, in the wake of the laptop's disappearance, the CRA is scrambling to rewrite its security protocols. The privacy is asking why no one from the agency communicated with her department about the breach.
Apparently the lost laptop is just one of many data breaches most Canadians do not know about.
That incident actually happened in 2006, and is only being reported on now. According to the article, “the laptop incident is among dozens in which tax agency workers have breached security rules, many of them snooping on other Canadians, including ex-spouses, mothers-in-law, creditors and others by reading confidential tax files.”
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Police bust Calgary credit fraud lab -
Curtis Douglas Keller, 19, and Amanda McHugh de Bakker, 18, face a total of 15 charges after a police raid on a Calgary residence.
Police found computers, printers, blank prepaid credit cards, embossing machines, flase credit cards and more in the home.
The charges include fraud, possession of credit card data, and possession of cocaine.
Read the full story on MetroNews.ca.
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Vancouver medical records compromised -
A medical resident lost a laptop and USB key containing the personal medical information of 430 Vancouver General Hospital patients.
According to the Vancouver Sun, the data consisted of information from surgical patients who visited the hospital between Nov. 16, 2010 and March 2011, including their names, date of birth and diagnosis.
The Vancouver Costal Health privacy office was not notified until 12 days after the breach. The information is reportedly passworf protected – but not encrypted.
Letters were sent out on Oct. 6 to inform affected patients of the breach, warning them to protect themselves from identity fraud.
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Beware scary Facebook scams -
The British Columbia Better Business Bureau is warning residents of five common social networking scams to watch out for on Facebook, Twitter, and other sites.
The scams include:
- Fake friends: “Some Facebook accounts exist solely to cast a wide net for spamming or extracting personal data from users. Only accept friend requests from people you know,” the BBB states in a news release.
- Questionable quizzes: Often designed to gather your personal information.
- Terrible tweets: These try to get you to click through … but that link actually downloads malware to your computer.
- Grim gifts / “clickjackers”: You are enticed to copy and paste text into your browser. You think you're taking advantage of a great offer – but you're actually downloading malicious code which could take over your computer.
- Viral videos: Sensational videos first ask you to upgrade your Flash player. And then you download a worm virus.
For more on these, see the full story in the Vancouver Sun.
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Alberta voter info goes missing -
Elections Alberta is under fire for potentially losing two enumeration binders filled with the personal information of newarly 400 voters. The voters' names, addresses, and in some cases phone numbers and birth dates, were in the books.
According to CBC.ca, the binders were lost by two enumerators; one working in electoral division of Edmonton-Strathcona, the second in Lesser Slave Lake. All affected voters have been notified.
The RCMP are investigating the case.
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Windows scam goes viral in Canada -
This is a scam that just won't quit: a caller, introducing himself or herself as a Microsoft employee, offers to fix your computer. All you have to log on and download some anti-virus software. And pay a fee. And while you think you're solving a computer issue, you're actually letting the fraudster access everything on your hard drive.
Unfortunately, this scam is working, and has claimed hundreds of victims across Canada already. According to an article in the National Post, 500 incidents were reported to the fraud unit in Toronto alone. Considering only 10% of cases are usually reported, that adds up to a lot of scam attempts.
The best prevention? Awareness. Don't ever respond to this kind of phone call.
As the writer of the article, Joe O'Connor, states:
“We are living in a Golden Age for bad guys everywhere. No longer does a crook require a note, a mask, a Saturday night special and the bravado to barge into a busy bank and demand money. All that is required is a computer and a phone book.”
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Identity fraud rampant in UK, Australia -
In the UK, police are warning a “complacent” public about the ramifications of identity theft. A recent study shows over 4 million people, or 7 per cent of the UK population have been hit by identity theft, costing victims an average of $2,000 each.
In Australia, the numbers are even higher. Fully 20 per cent of Australians (about 2.6 million) have fallen victim to fraudsters.
That same Australian survey revealed that two out of five people throw out credit card statements and other confidential mail without shredding it. As the article states: “By throwing away old statements with your name, address and account numbers you are greatly increasing your chances of becoming a victim.”
In Canada, current statistics say close to 20 per cent of all residents have been affected by identity theft.
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1 in 5 Canadians hit by fraud -
Visa Canada's latest survey about deceptive marketing has turned up a nasty figure: fully 20% of Canadians have been the victims of of an online or telephone marketing scam.
What's worse, the credit card company says virtually all of these incidents could have been prevented by a careful reading of the fine print or watching for red flags.
The head of payment system security for Visa Canada tells the Globe and Mail that consumers don't read everything before hitting “send.” They may forget to uncheck checked boxes, or fail to read overly complicated return policies. It's not a matter of legitimate businesses actually doing anything fraudulent, says Michael D'Sa, but they are being “sly and deceptive in nature.”
One piece of advice from D'Sa well worth heeding: “I would not provide any information to anybody that I didn’t ask to be called by.”
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Girl Guide fundraising scam -
The Ontario Council of Girl Guides of Canada has issued a warning to residents of Stratford, Ontario, about a possible scam. It has been reported that an unauthorized fundraiser has been collecting money for a Girl Guide walk, an event which does not exist.
The Stratford Gazette quotes Girl Guides provincial commissioner Marcia Powers-Dunlop: “At times we do authorize local fundraising activities to help our girls raise money to attend international camps and to go on trips. However, this particular fundraiser was not an approved activity.”
ProtectionPower.ca always recommends individuals who wish to make a donation contact the organization themselves.
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Sony hit by another security breach -
Sony has been hit by the second major attack on its flagship gaming site, PlayStation Network, this year. This time around, Sony locked 93,000 user accounts whose IDs and passwords were accessed in an online security breach.
Sony sent email notifications and password reset procedures to affected individuals. The company says no credit card information was put at risk.
In April, Sony suffered a massive cyber attack on its servers. That incident affected millions of PlayStation users and caused the network to close down for a month. The company says its servers were not affected in the most recent event.
For more details on the breach, read this story published in the Toronto Star.
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Massive NYC identity theft bust -
A total of 111 people were arrested and another 85 are in custody in the wake of a massive fraud takedown in New York City.
Bank tellers, restaurant workers, and other NYC service employees are charged with stealing credit card data from tourists and residents as part of a huge global identity theft ring. Credit card numbers were stolen using skimming devices and online; the numbers were then used to create fake credit cards and realistic fraudulent IDs.
Authorities say thousands were victimized to the tune of over $13 million, most of which was spent on electronics and other high-value goods.
"These weren't holdups at gunpoint, but the impact on victims was the same…They were robbed,” Police Commissioner Raymond Kelly told CBS news.
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Ottawa launches anti-cybercrime campaign -
This week, the Canadian federal government launched a national campaign aimed at raising awareness about cybercrime and helping Canadians protect themselves while online.
The campaign encourages Canadians to take control of their personal information, highlighting the need for strong passwords and hints on identifying phishing scams, for example. Ads sponsored by the government also encourage Canadians to visit getcybersafe.ca, an educational website by Public Safety Canada.
The federal government will also be beefing up its own security measures and training for employees.
"Cyberattacks represent one of the biggest threats facing Canada today … Canadians want to know that their private information stays private,” Public Safety Minister Vic Toews said.
For more details on the campaign, see this story on CBC.ca.
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X-Canada cyclist hit by identity fraud -
Paul Everitt is full of praise for the friendlines of Canadians after an adventure-filled five-month cycling journey across Canada.
He dealt with coyotes, torrential downpours, and identity theft that drained all the money from his bank account. Everitt made the journey to raise awareness about wounded British and Canadian war veterans.
Fortunately, he encountered plenty of help along the way – including from a hotel that put him up for two days while he focused on getting his identity back.
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20 years of identity theft finally over -
Back in 1990, university student Patrick Guest’s wallet was stolen from a Toronto-area gym. He didn’t think much of it until two years later, when he got a $200 bill from a hospital.
As it turned out, the man using Guest’s identity had racked up a number of parking tickets, fines for driving without insurance, and impaired driving.
Over the years, Guest was sent thousands of bills from fast-food outlets and received countless collection calls.
Last week, Gilbert Landry was arrested for the fraud, putting an end to Guest’s 19 years of headaches. Guest warns everyone to check their credit reports regularly, in case they are unknowingly victims of id theft, as he was.
Read the whole story on the Toronto Star’s site.
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PIN-pad scam hits BC -
Beware the portable PIN pad! A number of people in the Okanagan region of BC complained after being scammed out of up to $1000.
At least one woman claiming to seek donations for less fortunate youth went door-to-door in the area. A wireless terminal was presented to willing donors so they could donate funds directly into the supposed charity's bank account.
While those donations were never processed, clones were made of the cards using information gathered during the swiping process.
“The trojan terminal stored the data from the magnetic strip on their cards, and also stored their PIN number,” said Gord Molendyk, RCMP spokesperson to the Vernon Morning Star.
Losses began to appear in their bank accounts a couple of weeks later.
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A scam detector app? -
A new smartphone app designed to help consumers spot scams became the No. 1 lifestyle app on the market last week. The app was designed by Sorin Mihailovici, a television producer from Edmonton.
The Scam Detector is loaded with 500 searchable scams, categorized by type. From travel to credit cards, Internet to auto, the Scam Detector familiarizes its user with the warning signs of real-life scams, and advises on situations to avoid.
Mihailovici's development comes from experience: a friend of his lost all of his savings in a Nigerian scam.
“With the advancement of technology, Internet scams are skyrocketing … Everybody is trying to make money out of everything,” he told The Star.
In October, Mihailovici will launch a free online version of the Scam Detector. While the app may not literally set off alarm bells when the user approaches a scam, it may be a useful educational tool.
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Mortgage fraud in Ontario -
Two men from Hamilton, Ontario, have pleaded guilty to mortgage fraud. They scammed a major bank out of $30,000 to $70,000.
The men did it by involving a vulnerable third person – a woman making a low income, but with a high credit rating. They convinced the woman to use her name on the property titles. For her part in the fraud, they offered her $10,000.
Unfortunately, after successfully signing for the mortgage and finalizing the deal, the woman started receiving noticed from collections agencies about unpaid mortgages and taxes.
Find out more about mortgage fraud.
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5 Ways to Fall Victim to Credit Fraud -
Fox Business recently published an article filled with some very good advice – and a harsh dose of reality. Have a look at this article and review these 5 all too easy ways to fall victim to credit fraud:
1. Failing to look for skimmers: sometimes, high-tech skimming devices are actually easy to spot. Always look out for something suspicious before you swipe or insert that card.
2. Banking in a coffee shop: never use public wi-fi for secure transactions.
3. Answering phishing emails: there are a lot of scams out there – make sure you know the sender of any email before you open it. Especially the attachments!
4. Ignoring your rights and responsibilities: call your bank or credit card card provider the instant you suspect someone has your debit or credit card information.
5. Not taking advantage of fraud protection. Find out what your credit card company offers by way of protection. Take advantage of ProtectionPower.ca's many services and features.
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Cybercrime hits Canadian cell phones -
Canadians are being warned to starting thinking about their cell phones like computers. This means taking all the security precautions on your phone – passwords, encryption and other security features – that you would on your home or office PC.
As reported in the Toronto Sun, a recent poll shows 5% of Canadians have been the victim of cell phone cybercrime. While that is only half the global average, the number is on the rise, and will get much worse if Canadians don't sit up and take precautions.
As reported in the Sun, the mobile market “is the next emerging place where criminals are going to go… Mobile phone malware across the board is increasing."
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Hurricane Irene scams hit -
A forging lab in Regina has been shut down and three men arrested in the wake of a weekend police raid.The men, all in their 30s and from Montreal, now face charges of possession of card-forging equipment, possession of credit-card data, identity theft, theft and possession of stolen property.Police seized electronics, computers, and other forging tools and equipment in the raid. They say they have now stopped a major credit card and debit card forging operation.The investigation was prompted when a number of area retailers reported their point-of-sale terminals had been compromised.Read the whole story on CBC.ca. (http://www.cbc.ca/news/canada/saskatchewan/story/2011/08/30/sk-regina-credit-card-lab.html)
Natural disasters always tend to bring scam artists out of the woodwork, looking to take advantage of vulnerable individuals. Hurricane Irene is no exception.
Warnings have been issued (http://livingston.patch.com/articles/after-irene-warnings-of-possible-scams) about a variety of crimes and scams: price gouging on items such a water and gasoline, for one. As well, con contractors have been making the rounds, looking to swindle folks out of money.
Criminals are also taking advantage of power outages and damaged houses.
And of course, a Facebook scam or two has popped up.
Do not let a bad situation turn worse. Always exercise caution and due diligence, and notify the authorities if you notice any suspicious activity.
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Regina credit card forgery lab infiltrated -
A forging lab in Regina has been shut down and three men arrested in the wake of a weekend police raid.The men, all in their 30s and from Montreal, now face charges of possession of card-forging equipment, possession of credit-card data, identity theft, theft and possession of stolen property.Police seized electronics, computers, and other forging tools and equipment in the raid. They say they have now stopped a major credit card and debit card forging operation.The investigation was prompted when a number of area retailers reported their point-of-sale terminals had been compromised.Read the whole story on CBC.ca. (http://www.cbc.ca/news/canada/saskatchewan/story/2011/08/30/sk-regina-credit-card-lab.html)
A forging lab in Regina has been shut down and three men arrested in the wake of a weekend police raid.
The men, all in their 30s and from Montreal, now face charges of possession of card-forging equipment, possession of credit-card data, identity theft, theft and possession of stolen property.
Police seized electronics, computers, and other forging tools and equipment in the raid. They say they have now stopped a major credit card and debit card forging operation.
The investigation was prompted when a number of area retailers reported their point-of-sale terminals had been compromised.
Read the whole story on CBC.ca.
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Canadians lax about mobile security -
Canada's privacy commissioner has released the results of a poll conducted by her office, and the results should cause concern: less than half of Canadian cell phone and tablet users protect their devices with password locks. As well, few adjust settings to limit the sharing of personal information.
Women were shown to be less likely to take security precautions than men.
Privacy Commissioner Jennifer Stoddart, in reaction to the poll results, has this to say:
"Canadians are recognizing that their personal information is not safe in this new digital environment, unless they take concrete measures to protect it…Unfortunately, however, too few are taking even the most basic precautions."
For more, read the complete story on CBC.ca.
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Canada Post loses school records -
Two rolls of microfilm were lost in transit between a firm in Winnipeg and the Waterloo Region District School Board. They contained the personal information of more than 2,200 individuals – all former students from Waterloo Region schools, who left of graduated from high school six years ago.The microfilms contain the names, birth dates, parents’ names, grades, and sometimes also the birth documents of the students.The missing microfilms put all 2,279 individuals at risk of identity theft.For a list of schools that were affected, consult this article, published in the Waterloo Record. (http://www.therecord.com/news/local/article/584511--school-records-lost-by-canada-post-identity-theft-fear
Two rolls of microfilm were lost in transit between a firm in Winnipeg and the Waterloo Region District School Board. They contained the personal information of more than 2,200 individuals – all former students from Waterloo Region schools, who left of graduated from high school six years ago.
The microfilms contain the names, birth dates, parents’ names, grades, and sometimes also the birth documents of the students.
The missing microfilms put all 2,279 individuals at risk of identity theft.
For a list of schools that were affected, consult this article, published in the Waterloo Record.
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Rental scam targets university students -
RCMP in Kamloops, BC, are warning university students about an online rental scam.
A 22-year-old man fell victim to such a scam recently. He wired $997 to an individual named Myron Kapel to secure an apartment – but arrived on site to find out no one by that name lived in the apartment building.
According to RCMP Staff Sgt. Grant Learned, as quoted in the Kamloops Daily News, there are a number of ways to avoid falling victim to such a scam.
The most important is to meet the property owner at the location before exchanging money for keys. It is vital to both meet your landlord, and see the apartment, before the deal is sealed.
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Yale data breach affects 43,000 -
The Social Security Numbers and names of 43,000 alumni, faculty and staff affiliated with Yale University was left vulnerable for more than 10 months. During that time, the sensitive information was available to users of Google search engine users.
Here is the explanation offered to those affected, as reported on CNBC.com:
"A Yale computer file that contained your name and Social Security number was stored for 10 months in a way that left it accessible to Google Internet searches. The computer file was created in 1999 and was inadvertently moved to an insecure section of a computer server in July 2005. At that point, the file was no longer fully protected but could not be located by an ordinary Internet search engine. The situation changed in September 2010, when Google modified its search engine in a way that allowed it to locate files stored on servers like the one holding this file."
This letter was signed by Yale's Information Technology Services Director Len Peters.
This is another clear reminder that virtually everyone's personal data is stored on dozens of servers, some you may not even know about. Be constantly vigilant for signs that your data may have been compromised: if this can happen at one of the top universities in North America, it can happen anywhere.
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Volatile times, increased scams -
Stock markets are uncertain; debt worries and gloomy economic news are making investors wary. Even worse, scam artists see nothing but opportunity among those fearing for their money.
The B.C. Securities Commission has offered a number of tips to help you stay secure. They advise that you do not panis – fraud artists can practically smell fear! Consider all investments carefully. Say “no” any time you are suspicious or uneasy.
Beware fads. Scam artists are quick to pick up on the latest trend and try to sell you on it.
Learn the red flags. And stick with your financial plan. If you don't have one, now's the time to contact a reputable financial advisor and put one together.
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Beware 'unique' credit scam -
A woman from Burlington, Ontario, took a trip to the grocery store – and suffered a $1,000 hit to her credit card.
She was the victim of an apparently well-practiced scam. Her suspicions were first aroused when a man appeared to peer over her shoulder as she typed in her credit card's PIN number.
Just a few minutes later, a seemingly hysterical woman came to her car, waving a map and asking directions to a children's hospital.
The victim checked her purse a few minutes later, and her credit card was gone. So was $1,000 from her credit card account, taken out in $500 withdrawals from two separate ATMs.
“It was all so slick and quick… They will probably do it again,” the victim told the Hamilton Spectator.
All credit and debit card users are advised to shield their PIN numbers at all times.
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Credit Card Fraud Hits PEI -
During a raid in Brampton, Ontario, the province's police found dozens of credit cards and “tens of thousands of dollars in merchandise bought illegally with those cards,” according to CBC.ca. The merchandise included electronics, applicances and gift cards.
Police also found credit profiles of a number of identity theft victims from PEI, Nova Scotia, Ontario and British Columbia.
Three 30-something year old women were arrested for the credit card fraud and now face multiple charges. Police were tipped to their suspicious behaviour by Toronto-area store employees; the women had purchased large amounts of gift cards using the stolen identification.
Police seized four vehicles during the raid.
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Mother, daughter scam liquor stores -
Police in Port Hope, Ontario arrested a mother and daughter outside the town's liquor store this week. The pair are charged with 80 counts of credit card fraud, according to CTV.ca.
The older woman, 50, and her daughter, 32, allegedy used a GPS to target liquor stores along the highway, from Toronto to Kinston. Police found $42,000 worth of liquor in their vehicle, including 41 bottles of vodka and 23 bottles of scotch. They also located 24 solen or fraudulent credit cards which were used in the shopping spree.
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Facebook photos could lead to ID theft -
Here's a new reason to be wary of Facebook: the photos you post can actually be used to facilitate identity theft.
According to CNN.com, a team at Carnegie Mellon University, “was able to use facial recognition software available online to match photos of people taken on mobile phones to their Facebook photos, names, social security numbers, date of birth, and place of residence.”
This is becoming possible thanks to a number of factors: improvements in facial recognition software, the amount of information individuals share on Facebook and other social networking sites, and the prevalence of smartphones which provide constant computer and Internet access.
The team of researchers was able to use photos posted on Facebook and match them to social security numbers within four guesses, 28% of the time. Those are high odds.
"Facebook is becoming a de facto database of unregulated real IDs,” said professor Alessandro Acquisti, who led the study.
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Social networking for hackers -
Anonymous, an international hacker group that has been linked to cyberattacks on Paypal, Visa, Mastercard, and military agencies, has launched its own social network.
The group did so after it was rejected by Google's online community.
The network, found at anonplus.com, promises “a new social network where there is no fear...of censorship...of blackout...nor of holding back."
Read more on the new social network for hackers.
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Neighbourhood cyber 'campaign of terror' -
A Minnesota man recently hacked into a neighbour's computer, and used it to plant illegal files (including child pornography) and send death threats. This identity theft has gotten the man 18 years in jail.
The Toronto Star called on Protection Power's identity theft expert Sylvain Patry to comment on the case:
“This crime of actually trying to do bad to one of your neighbours is new,” Patry told the Star. “This is the worst case scenario. It’s basically polluting your computers with illegal material.”
Patry suggested that all computer users set up their wireless routers with passwords and encryption.
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Does a microchip protect your card? -
According to Macleans.ca, “credit card fraud is big business in Canada.” In fact, the magazine states that in 2010, crooks racked up nearly $366-million on lost, stolen or compromised cards. About 500,000 Canadian customers were targeted in just that year.
The rise of credit card fraud has brought about a number of changes, including the appearance of the chip card.
Unfortunately, the chip card brings its own opportunities for scam artists.
Partly, this comes from the continued presence of the magnetic strip, which can be “skimmed” and copied by fraudsters or others using old technology.
The article continues: “The new twist is that if crooks also manage to observe the cardholder entering their PIN—either by watching over their shoulder or by setting up a hidden camera—it may be possible for them to use the forged cards either in bank machines without chip and PIN technology, or on machines designed to fall back on verifying magnetic strips (to accommodate foreign visitors without chip cards).”
Read the whole story.
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Toronto woman posed as social worker -
A Toronto resident, 82, told a courtroom in the city that she was duped by a telephone caller who pretended to be a social worker. When the fake social worker came into her home, she allegedly stole the senior's credit card.
The victim was quoted in a story on CBC.ca : "I received a call from a lady stating she was from Sunnybrook Hospital… Because she had known my husband has been in Sunnybrook for so long. And could she just come and just see that I was being cared for in the way that they thought I should be looked after.
"I was horrified…There's a trauma to it. You just can't believe that anyone could do such an unkind thing. It's just unbelievably devastating."
Carol Williams, 47, faces a total of 54 charges, including fraud and theft totalling $100,000. Police allege Williams and Sunnybrook hospital employee Lorraine Pinnock worked together to gain access to seniors' homes and steal credit cards.
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Raid on fake card scheme in Calgary -
A five-month investigation in Calgary culminated in a series of raids this week. Police searched four Calgary homes, two commercial properties, a storage locker and four vehicles and turned up a wealth of supplies used to create fake identification and credit cards.
They found computer equipment, machines used to emboss and print phoney credit cards, copies of holographic images used as security devices on credit cards, and thousands of blank credit card templates.
Investigators are telling the public about the importance of taking steps to prevent this high-tech crime.
"All of us must take responsibility to ensure our data isn't compromised," Det. Gerard Brand of the Calgary police economic crimes unit was quoted in the Calgary Herald.
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Alert: Computer scam rampant across Canada -
We have written about this computer scam before, but there have been a recent spate of warnings from different provinces about this particular phone scam, so we think it bears repeating.
Usually, it goes like this: a caller, introducing him or herself as a Microsoft (or other computer company) technician, will discuss a computer virus or other problem in the area. The technician will ask for remote access to the victim's computer in order to fix/investigate the problem.
Once the caller has access to the computer, he or she generally adds viruses or malware, or may steal personal information that is on the device.
Here are some recent reports on the scam from Nova Scotia. It has also been reported in most other provinces as well.
Consumer beware!
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Staples breached privacy rules; consumers at risk -
Canada's privacy commissioner is chastising Staples Business Depot after social insurance numbers, addresses, banking information, tax records and other personal information was found on used laptops and other electronics put up for resale.
The commissioner found that the company failed to wipe clean customer data found on returned items including laptops, USB drives and memory sticks. An incredible 17 out of 20 laptops/computers checked contained private information. Seventeen stores were checked for their procedures for protecting consumer data; 15 showed faulty methods.
This puts customers at a high risk for identity theft and fraud.
As the privacy reported stated, as quoted in the Globe and Mail: “Our view is that Staples and other retailers should not resell a returned data storage device if they are unable to remove all customer data from that device. We acknowledge that Staples is presently testing more effective ways to wipe data in response to our recommendation.”
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1.3 million Sega accounts breached -
The latest major hacker attack on a major video game company came to light on the weekend. On June 19, Sega announced that the names, email addresses, passwords, logins and birth dates of all 1.3 million customers of its Sega Pass network have been stolen.
As of the morning of June 20, the Sega Pass network remains shut down.
"We are deeply sorry for causing trouble to our customers. We want to work on strengthening security," Yoko Nagasawa, a Sega spokeswoman, told Reuters news agency.
Strangely enough, Lulz Security, a group of hackers that has launched cyber attacks against other video game companies including Nintendo, offered to help track down the Sega hackers.
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Scotiabank identity loss -
Scotiabank recently publicly admitted they lost three CDs containing consumer information. The unencrypted CDs were destined for Revenue Canada, through their internal mail. The CDs contained names, addresses, SINs and investment information.
The CDs were lost in early May, more than a month before customers were notified and advised to keep an eye on their credit reports.
"A lot could have happened with my ID during that period, and I knew nothing about it," Calgarian Jack Comeau, an affected Soctiabank customer, tells CTV news. "My biggest concern, of course, is someone applying for credit in my name.”
There is no federal requirement that institutions inform customers about such breaches.
Scotiabank says they are addressing identity theft concerns on an individual basis.
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Conservative donors' data breached -
A database containing personal information, including credit card numbers, of individuals who made donations to the Conservative Party of Canada, has been hacked.
The Conservative Party made the announcement on June 8. The hack was likely completed by the same person or group who hacked the governing party's website earlier in the week. As proof, the hacker published names and address on Twitter.
Earlier this week, the hacker posted a fake story on the conservative website about Prime Minister Stephen Harper being rushed to hospital after choking on hash-browns at breakfast. The hacker called the breaches a “hack of opportunity” completed after discovering vulnerabilities on the site.
According to CBC.ca, a communications officer for the party said the conservatives “are very disturbed by this hacking and will continue our internal investigation, as well as work with the authorities on this matter.”
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Nintendo admits data breach -
Nintendo, one of the leading gaming companies and maker of the WII game console, admitted this weekend that its servers had been illegally breached two weeks ago.
According to a report on CBC.ca, it is not apparent that any personal or financial information was obtained.
Although the Nintendo breach appears to be much less serious than those suffered by Sony, Nintendo users should be aware of the potential hacking attack. It would be wise to change any passwords.
For more on what to do to protect yourself from data breach, read this article.
Get The Full Story >>
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Honda Canada hacked -
Over 283,000 Honda Canada customers have been notified that their personal information could have been stolen, reports the Toronto Star. Apparently, an unknown third party managed to hack into and access information stored on the myHonda and myAcura ecommerce websites.
The compromised data, according to Honda, includes names and vehicle identification numbers. To this point, it has not been shown that any financial or credit card details have been affected.
Honda has warned customers to be aware of the increased risk of phishing attacks and attempted scams.
A class-action lawsuit, seeking more than $200 million in damages, has been proposed.
Read more about phishing attacks and how to recognize them.
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Canada's Sony Ericsson suffers data breach -
Sony, still struggling to recover from the massive data breach that hit its PlayStation Network a month ago, has just announced another data breach.
An estimated 2,000 customers of its Canadian mobile phone subsidiary, Sony Ericsson, may have had their personal information stolen.
According to CBC.ca, a Sony spokesperson said customers names, emails and encrypted passwords have likely been stolen. There is no evidence yet that credit card information was stolen.
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Alberta firm accused of $450,000 in online scams -
The United States Federal Trade Commission has filed a complaint against an Alberta online operation which, it claims, has bilked customers out of more than $450,000.
The operation includes about 10 online marketing companies run by a 23-year-old Alberta man. The complaint alleges the company defrauded customers in the U.S., U.K., Australia, New Zealand and Canada of nearly half a million dollars.
The companies operate a potential scam in which customers are offered “free” or “risk-free” trials of items like teeth whiteners, work-at-home programs or weight-loss or health supplements. These so-called free deals often resulted in unauthorized monthly charges.
For more on the scam, the full story is on CTV.ca.
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ID theft scheme in Que. hits 10,000 people -
Quebec provincial police have uncovered an “intricate” identity theft scam – but not before it bilked more than 10,000 people of a total of $1 million. The details are in a report on CBC.ca.
In an all-too popular phishing scam, the fraudster sent his victims massive amounts of fake emails that looked like they were from financial institutions. The emails asked recipients to updated their confidential account information (including addresses, bank account and credit card data – online.
Once the scam artist had the information, he did one of a couple of things: he might fill out “change of address” forms at Canada Post, and then use the credit cards to make purchases – thus reducing the changes the victim would notice the crime. In other cases, he would use the information to make fake ID and set up dummy accounts.
A computer expert, 22, from Saint-Joseph-du-Lac, near Montreal, was arrested and charged recently for the crimes. Police are still looking for accomplices.
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Scam artists using Bell as bait -
Mass marketing fraud is estimated to cost Canadian businesses and consumers about $10 billion a year, according to the Canadian Anti-Fraud Centre. The fraud can be conducted over the phone, Internet, TV or radio, and generally encourages victims to give out account numbers, credit card or other information.
Recently, in the Toronto-Hamilton area, a number of consumers have received calls/voice mail messages from scam artists pretending to be from Bell Canada. The caller offers major savings – but only if the person on the other end of the line reveals his credit card information.
Although most consumers are savvy enough to hang up on such phone calls, the fraudsters might still do OK: they may be calling hundreds of thousands of numbers at a time. If even a small percentage fall for the trick deal, the company stands to make good money.
More details on this scam are in the Hamilton Spectator.
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Canada rising as malware haven -
It's not a list you want to be near the top of. This year, Canada ranks sixth on a malware “badness” list, compiled by a web security company based in California.
As reported in the Globe and Mail, this is the first year Canada broke the Top 10 – not a good sign for those doing business in the country. Phishing attacks originating in Canada are estimated to have tripled in the past year; botnets have doubled.
While a majority of the cybercrime rings are based in Eastern Europe and China, they set up operations in the West, often by hijacking legitimate servers.
Read more about the report and Canada's vulnerability to international cyberattacks.
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ATM skimming threats evolve -
A Bulgarian man was recently convicted for his role in committing nearly $300,000 in cross-border ATM fraud. Viktor Kafalow and his partners collected information from the magnetic strips of debit cards used in ATMs in Canada and the U.S. Cameras recorded PINs as they were entered.
This information was used on fake ATM cards to access nearly 350 bank accounts.
Techniques and methods of credit card fraud vary, and are always increasing in levels of sophistication. However, ATM skimming remains one of the greatest threats to both consumers and the payment card industry.
:Definitely, worldwide, more money is taken from ATMs," says identity theft blogger Robert Siciliano. "We're seeing more and more all-in-one systems, like skimmers with the pinhole camera all built into one. And we're seeing some systems with the keypad overlay built in. It's just getting easier and easier to do."
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Surge in Bin Laden related cyber crimes -
The death of Osama Bin Laden has proven an opportunity too good for cyber criminals to pass up. As reported in the Toronto Star, security experts have issued a warning to all web surfers: beware Bin Laden-related scams.
Emails and Facebook posts purporting to lead to photos of Bin Laden's body often do nothing except install malware in the user's computer. Ads offering free merchandise in celebration of Bin Laden's death have turned out to be nothing more than a way to gather personal information. Google image results have been laced with malware.
As fascinating a news story as this has become, all Internet users are advised to stick to reputable news sites and blogs and to stay away from sensationalist sites claiming to provide videos and photos.
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Canada's privacy czar seeks data breach fines -
Canada's privacy commissioner, Jennifer Stoddart, is “deeply troubled” by the amount of data breaches reported lately, the most recent of which is the massive data breach suffered by Sony.
During a recent speech reported on by CBC.ca, Stoddart stated that the only way to get some corporations to “pay adequate attention to their privacy obligations” is to be able to impose significant fines when a company does not fully protect the personal information of their customers.
Currently, the privacy commissioner has no enforcement powers. This does not hold true in other countries: in the UK and US, for example, fines surpassing $150,000 have been levied against companies who have suffered data breaches.
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Sony attacked again, credit card numbers at risk -
The situation is going from bad to worse for Sony – and for the many consumers who trusted the corporation with their financial information.
In late April, Sony announced that some 77 million users of its PlayStation network may have been affected by a major cyberattack, which accessed passwords, addresses, user IDs and more. On May 2, Sony revealed that hackers may also have obtained personal information from the Sony Online Entertainment systems as well.
That personal information may include over 12,700 non-US customer debit and credit card numbers (including expiration dates).
Affected games have been taken offline. Sony has pledged to notify all affected customers.
Worried you may be affected by Sony's data breaches? Protection Power offers 5 steps you can take to keep you and your financial information safe.
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Millions exposed in PlayStation data breach -
On April 26, Sony admitted it had been hit by a major hacker attack. The hacker, described as an “illegal and unauthorized person” on Sony's U.S. PlayStation blog, may have obtained access to names, addresses, e-mail addresses, birthdays, usernames, security questions and more.
According to the Globe and Mail, this may have been one of the largest Internet security break-ins ever.
Apparently, Sony learned of the PlayStation Network breach April 19, and shut down the network immediately. The company did not tell the public about the stolen data until Tuesday, however.
Sony does not believe credit card numbers were compromised, but warns there is every possibility this happened. Sony recommends users put fraud alerts on their credit card accounts and contact the credit card bureaus (in Canada this would be Equifax and TransUnion).
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168 credit fraud charges for Toronto teen -
An 18-year-old man from Toronto is facing a whopping 168 credit fraud charges. Orangeville police caught up with the teen after he used stolen credit cards to purchase more than $60,000 worth of tires from a local store.
According to a story in the Orangeville Citizen, the teen placed a number of orders for tires via phone in December of 2010. It took almost two weeks after the first order for the retailer to realize the credit card numbers had been declined.
Orangeville and Toronto police cooperated in tracking down and capturing the fraudster, laying a long list of charges: 56 counts each of fraudulent use of a credit card, fraud and possession of property obtained by crime.
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B.C. man sent 10 credit cards in other people's names -
Valli Laza, a resident of Pitt Meadows, B.C., is raising the identity theft alarm after receiving a stack of unexpected credit cards in the mail. The 10 credit cards had all been issued by Capital One – and all had different names on them, none of them his.
According to CTV.ca, when Laza called Capital One, he was told that he's not the only one getting extra cards. The bank blamed a production error and stated that 5 to 10 other clients had received a similar pile of other people's credit cards.
The bank says none of the cards were active, suggesting the risk of theft was low.
Nonetheless, the Better Business Bureau of Mainland B.C. does report identity theft rates are growing in the region.
"The Canadian Bankers Association reported a loss of $365 million in 2010, and there's unreported fraud, also. It's coming to you in different ways now," CTV.ca quotes the BBB's Lynda Passecreta.
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What Epsilon data breach means to you -
The Epsilon data breach happened more than a week ago now, and the ramifications are starting to be felt. Millions of consumer names and e-mail addresses from around the world were accessed when hackers broke into the databases maintained by Epsilon, one of North America's largest email marketing firms.
Tens, if not hundreds, of thousands of those email addresses were Canadian.
Many who were involved already report receiving scam emails – and no doubt some of these scams were successful. With the personal information in hand, Epsilon is able to create highly personalized fraudulent emails that look legitimate.
The New York Times published an editorial that explains exactly how data breaches – even of seemingly innocuous information like your email address – can actually cause considerable issues.
The writer warns: “Consumers must also be vigilant. For starters, they should be wary about clicking on any e-mail attachment, even if it comes with a seemingly personal greeting from a business they know and trust.”
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Major Toronto law firms hit by cyberattacks -
Four major Bay Street law firms were the target of recent cyberattacks, reports The Globe and Mail.
Although the firms were not named, the security expert investigating the breach says the attacks were clearly designed to destroy data and obtain sensitive information.
Unfortunately, many law firms – even the most elite – do not fully recognize the very real threat that hackers can infiltrate their computer systems. IT departments may be doing their best to keep up, but it is clear that there are many improvements to be made.
“Problems typically arise when those policies are violated for expediency, such as copying data to a flash drive and then misplacing it, or using a commonplace password that can be easily guessed,” the article quotes David Craig, national information security practice leader for PricewaterhouseCoopers Canada.
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Canadians hit by huge data breach -
The massive data breach suffered by online marketer Epsilon – now considered one of the largest data breaches in US history – can now count thousands of Canadians among its victims.
Hackers broke into Epsilon's databases, gathering millions of names and email addresses. Thus far, it seems that the hackers did not access financial or confidential account information.
According to CBC.ca, the lengthening list of companies affected by the breach now include, among others, Air Miles, Best Buy, Target, Marriott, Citigroup, Capital One Financial, TiVo and many others.
The affected companies warn all customers to be on guard: the email addressed could be used to create personalized emails to victims. This means scam or spam emails would be more likely to get through spam filters.
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Scam artists exploiting Japan tragedy -
It's become a far too popular scam here in North Amercica: con artists regularly take advantage of the generosity of consumers in the wake of tragedies.
The recent tsunami and earthquake in Japan is no different: there have been a high number of complaints of fraudulent “charities” set up and gathering funds supposedly for Japanese victims.
Unfortunately, con artists are targeting Japanese as well.
As the L.A. Times reports: “Fraud suspects included a 53-year-old man who called a 91-year-old woman in Tokyo's Shinjuku area and tried to persuade her to hand over money for earthquake victims, and a 24-year-old man who solicited about $150 from a passerby in Tachikawa City, then pocketed the cash. Both men were detained.”
Advice to everyone, in North America or Asia?
If you are the slightest bit suspicious when someone asks for a donation, call the police.
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Investment scams hit Sask. -
“Reload scams,” which prey on those who have already lost money in a business or investment opportunity, are becoming all too prevalent in Saskatchewan.
“The bad guys are going where the money is too,” Ed Rodonets, of the Saskatchewan Financial Services Commission, is quotes in the Calgary Herald. “The money is here in Saskatchewan, and people are investing, and some of them are taking chances on these initial offerings, so that sets them up down the road for the reload scams.”
Generally, victims of reload scams have already lost money, usually on a bogus opportunity. Fraudsters know the victim's personal information, and make a phoney offer to help the victim recoup his or her losses. The victims, desperate for money, too often accept – and find themselves duped once again.
Saskatchewan police name other popular scams in the area too: affinity fraud (fraudsters associate with groups or organizations); Ponzi/pyramid schemes; boiler room scams (once-in-a-lifetime deals are truly too good to be true); and RRSP scams.
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Identity fraud through Xbox -
Gamers take note: your Xbox isn't all innocent fun. Today's criminals have found a way to use interactive video games to ask for information and hack into accounts.
Take the example of this Florida family, as reported on First Coast News.
Fourteen-year-old Zach Grant was playing his Xbox Live, which allows people in different locations to play against – and chat with – each other. Zach's video game partner offered him points in exchange for account information belonging to his father. Zach complied, and his dad was hit with big bills from the credit card company.
Zach's mother, Lisa Grant, says it all could have been prevented with some common sense.
"Don't talk to strangers," Grant said, "Bad things can happen when you're talking to people you don't know."
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Don't overshare on Facebook -
The Globe and Mail recently posted a blog entry that should make everyone realize just how important it is to think about what you post on Facebook and other social networking sites.
An old high school friend of mine is going to the Mayan Riviera this week, leaving her home unoccupied. Her boyfriend is going with her. She doesn’t have a guard dog,” writes Globe blogger Dianne Rice.
“How do I know all this? She told me and the rest of the world about it on Facebook. OK, maybe not the dog part, but I can tell from the hundreds of personal photos she’s posted that she has a very docile-looking cat and some really nice jewellery.”
Revealing this much information on Facebook opens the door to theft – the real-world kind, where criminals break into your house and search for that jewellery – as well as any number of online scams.
This Fraud Prevention Month, rethink your social networking habits. Don't take quizzes, play games or download apps – many of these are malware in disguise. Keep your password safe, watch your transaction, browse with caution and check your credit report regularly.
And keep certain information, such as vacation plans, quiet. Wait until you're back to post pictures.
For more on safe social networking, read this article.
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Fake cards used in Calgary spending spree -
Four B.C. residents had a high-spending weekend away in Calgary, renting downtown hotel rooms, making major purchases at a number of retailers, and taking out cash advanced at area casinos. All transactions were made using stolen credit cards.
Police eventually caught up with the group in a traffic stop, arrested four people.
They seized 47 counterfeit credit cards, eight counterfeit driver's licences and $16,000.
According to the Calgary Herald, police have yet to provide any information about who owned the credit cards and where they were stolen from.
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Facebook's flawed new privacy plan -
Facebook recently proposed a new privacy plan – one that all users should be aware, and aware of the dangers, of. Facebook announced that it plans to allow third-party developers to request access to home addresses and phone numbers of users.
US Senator Al Franken believes this puts users at unreasonable risk; he wrote a column for the Huffington Post outlining his concerns.
“Armed with nothing more than a Facebook user's phone number and home address, anyone with an Internet connection and a few dollars can obtain personal information they should never have access to, including a user's date of birth, e-mail address, or estimated income,” he writes. “In fact, by using this information, an identity thief could get almost all of the data he would need to apply for a loan or a credit card in the name of an unsuspecting Facebook user.”
The Facebook proposal would potentially compromise the data of users as young as 13 – vulnerable youth who may not be aware of what information they are sharing, and why they should not be doing so.
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Scams across Canada -
New Brunswick police warn residents to be wary of scams in the province.
“There's always a bunch of scams out there,” Sgt. Tony Hayes of the Saint John Police Force told the Telegraph Journal. “They just change to suit the times or suit the need.”
Two of the most popular in that province are a telemarketing computer scam, which targets the influx of retired people on the Internet and offers them anti-virus or other software. The key here: never allow a caller access to your computer unless you have contacted him or her yourself.
Another recent scam involves fraudulent companies posing as Yellow Pages. Do not pay invoices without double-checking them yourself – and treat all unexpected collections calls with skepticism.
In southwestern Ontario, police are issuing a renewed warning about a popular scam known as the grandparent scam. CTV news reports fraudulent calls have been received in the Stratford area. In most cases, a scam artist poses as a grandchild in some sort of financial or personal danger.
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Huge Ontario credit and debit scam busted -
An officer on a routine patrol stopped a fast-moving car near Oshawa, Ontario. Little did the cop know he was about to uncover a major piece of a huge criminal puzzle.
The driver in the speeding car was in possession of a large quantity of fake credit cards. An investigation heated up soon afterwards for the Durham Regional Police Department.
From there, according to the Toronto Sun, police seized five high-end vehicles, Sea-doos, ATVs and other merchandise. More than a dozen stolen passports and a counterfeiting lab were also found. Police estimate the losses to businesses to be in the millions.
The identity theft ring was engaged in bringing bogus immigrants in by sea, as well as using fake identities to buy goods and services.
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Woman charged with stealing dead baby's ID -
Police in Windsor, Ontario, have charged a 47-year-old woman with stealing the identity of a baby who died in 1965.
Nancy Jayne Fera is facing charges of identity theft; she used the false ID to obtain a health card, birth certificate, social insurance card, credit cards and a Canadian passport. The passport application tipped Passport Canada off that something was amiss; police began investigating and eventually laid charges.
As reported in the Calgary Herald, the woman had been collecting GST cheques under the false man.
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Teen stole $25 M from hacked credit cards -
A Toronto-area private school student hacked more than 130,000 credit cards worldwide, collecting over $25 million and creating what police are calling “the largest English-language online cyber crime forum.”
As reported in the Toronto Star, Nicholas Webber, 19, and his gang (consisting of a 21-year-old software designer and a 18-year-old site administrator) have all been sentenced to up to five years in prison.
The young men ran an international online forum Members – numbering more than 8,000 – bought stolen credit and debit card information, including passwords and PIN numbers.
According to the Star, police said the group's software designer “constructed and distributed across the Web a sophisticated Zeus malicious computer program, which enabled him to infect and compromise over 15,000 computers in over 150 countries.”
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Ready for Fraud Prevention Month? -
March 1 marks the start of Fraud Prevention Month in Canada. Led by the federal government's Competition Bureau, Fraud Prevention Month is an awareness campaign designed to help Canadians spot fraud – and to know what to do if it happens to them.
The slogan from the government – “Recognize it. Report it. Stop it.” – sums up the efforts of the campaign. The Competition Bureau's website is filled with fraud-related resources: facts, fraud techniques, tips and more.
The Recognize it! Report it! page, which includes guidelines on how to beat scammers, is important reading for all consumers.
Watch this site! ProtectionPower.ca will be releasing its top 10 fraud-prevention tips March 1!
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Passport and credit card forgery in Richmond Hill, Ont. -
During a raid of a home in Richmond Hill, Ont., police found tools used to forge documents, over 1,500 counterfeit cards and a number of forged European and Canadian identification documents. The raid resulted in two arrests.
The Toronto Star spoke with RCMP Sergeant Vance Morgan of the commercial crimes unit. Morgan said the “forgery lab had both counterfeit passports and legitimate passports that were being used to obtain Government of Ontario identification cards like drivers licences.”
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Credit card fraud up 62% since 2009 -
A new survey reveals 29% of all consumers worldwide who use debit or credit cards have experienced fraud. This marks a huge increase from the summer of 2009 – the last time the survey was conducted – when only 18% of customers reported being a victim of fraud.
The study, reported by InformationWeek.com, surveyed consumers in North America, Europe, Asia, Dubai and Brazil. Levels of fraud did vary greatly by region, hitting 43% of consumers in China and only 11% in the Netherlands. 32% of Americans reported being the victim of card fraud.
The survey also showed that most consumers prefer to receive fraud notifications on their cell phone. This carries its own danger:
"It opens up more opportunities for fraudsters to themselves contact customers and engage in social engineering attacks," Jasbir Anand, lead solutions consultant at ACI Worldwide, said in the article. "By piggybacking onto an existing process used by the financial services organization, they can now try and steal more information from customers."
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Hackers attack Canadian government -
Cyberattacks originating halfway around the world have forced the federal government's Finance and Treasury Board departments offline. These “unprecedented” hacker attacks on the Canadian government appear to have come from China.
First detected in January, officials are still not sure exactly how much sensitive information was exposed – or they're not saying so publicly.
Sources confirmed to CBC.ca that the attackers successfully penetrated the computer systems at the two main economic nerve centres of the government in Ottawa. The hackers were apparently attempted to steal key passwords which unlock entire government data systems.
The attacks were carried out through specific scams. In some, the frausters posed as high-level federal executives; in others, infected files were attached to emails.
The attack has left thousands of federal civil servants without Internet access.
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Police board member victim of $20,000 ID theft -
Ontario resident Uly Bondy, the vice-chairman of the Chatham-Kent Police Services Board, recently found out his credit card information was used in a casino in the UK to withdraw almost $20,000.
"And I had the card in my pocket at the time,'' Bondy told the Chatham Daily News. "Now I'm very familiar with identity theft.''
Fortunately for Bondy, his bank noticed the unusual withdrawals and contacted him quickly. He has no idea who could have stolen his credit card numbers, or how.
The police board is now calling on higher levels of government to provide funding for such boards to help with cyberspace network monitoring and investigation. Canadian law enforcement agencies are constantly challenged by the growing rates of online fraud and scams.
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Going on vacation? Don't post it on Facebook -
Canadians are pretty good about planning for vacations – they know to stop their mail, set automatic light timers, ask the neighbours to keep an eye on the house or pop in and feed the cat.
And we love to talk about our holidays!
But, as reported in the Toronto Star, travellers should wait until they return to tweet about their vacations. The Canadian Anti-Fraud Centre posted a warning this week, reminding Canadians not to broadcast their plans on social networking sites. Sure, friends and family might like to see what you're up to – but criminals may be watching as well.
Posting your plans not only makes you vulnerable to identity theft scams, but also to thieves who may be watching for an empty house to break in to. Predators may also use travel information found online to swindle money from family and friends. In a common scheme: thieves send an email that appears to come from you and will ask for money from your friends and relatives.
Keep your travel plans to yourself or stick to private, secure methods of communication while you are away.
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Rash of fake driver's licences in PEI -
Fake identification – usually driver's licences – has been turning up more frequently than usual in PEI these days. Police are sounding the alert: those who use the IDs may be at risk of more than a fine.
In a story on CBC.ca, PEI motor vehicles registrar Graham Miner states many of the fake licences were purchased over the Internet. He warns those buying the fake IDs that, not only are they breaking in the law by possessing a fraudulent licence, but they are putting themselves at long-term risk by giving personal information to questionable websites.
“The very purpose of that internet site may actually be to be out there trolling for real identification, and the bonus is that somebody is paying them to take their identification away from them," CBC quotes Miner as saying.
"Who are these people? Are they a criminal, are they, you know, perverts, pedophiles? Who are they? But you are sending your material to these questionable sites."
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iPhone breaching privacy -
A class-action lawsuit has been filed, accusing iPhone of giving users' personal information to advertising agencies without permission.
The suit, which has been filed in California, states Apple has breached the privacy of users by compromising the users' log-in details, names, contact names and browsing history. The iPhone client is apparently not aware of the data situation.
The suit alleges the iPhone, iPad and iPod touch – all devices using the iPhone operating system – have a unique device identifier that is accessible to applications downloaded.
Anthony Chiu, who filed the suit, states: ”In plain English: An advertiser can know, in real-world terms, exactly what a particular mobile device was used to search for on a given day, where the search was conducted from and, assuming that the mobile device was used by its owner, the advertiser would know the identity of the person.”
This follows on a 2010 investigation by the Wall Street Journal, which found the iPhone and Android smartphones could transmit personal information to advertisers.
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Grandfather reclaims identity after 17 years -
Grandfather reclaims identity after 17 years
If the allegations prove true, Joseph Kidd – a one-time homeless man – stole Larry Smith's identity 17 years ago. In 1993, Kidd was arrested and fingerprinted for a small crime in California, but went into police records as being Lawrence E. Smith.
Thus began a 17-year nightmare for Smith, who lives in Florida. Though those years, Smith was wrongly ticketed for speeding, billed $300,000 by Medicare for treatment he didn't use and almost had his driver's licence revoked. The real Smith even spent time behind bars for “his” crimes.
Kidd had a birth certificate, driver's licence and even a marriage licence with Smith's name on it. It is still unclear how he came into the identification or why.
It took 17 years, but eventually Kidd was tracked down in Arkansas. He is currently facing multiple charges that include identity theft and welfare fraud.
The whole fascinating story is told on an ABC news website.
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Credit card fraud alert -
Credit card fraud has been responsible for more than $60,000 in stolen cash in just the past three months in Saskatchewan and rural Alberta – and that's just the amount that's been reported.
Card fraud and identity fraud have notoriously low reporting rates; the likely amount of stolen cash is many times that.
In most cases, reports a Moose Jaw newspaper, the counterfeit cards have a legitimate number printed on the front – but the magnetic stripe doesn't work. If the card doesn't scan properly, tellers have to manually type in the number.
RCMP are warning tellers to ask for an alternative form of payment if the card won't scan and the chip doesn't work.
Card holders should also be proactive and watch their statements and bills for unusual charges.
Read our article on protecting credit and debit cards for more information.
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An identity theft checklist -
What do you do if you realize your wallet or purse has been stolen? It's important to be prepared – and act quickly.
The Globe and Mail recently published a quick checklist to help you get started. A few of the steps:- Make time. It can take many hours to properly clear your name of identity theft. You'll need to clear space in your schedule to do it right.
- Call the police. You've been the victim of a crime.
- Call your bank. You will likely need to cancel your credit and debit cards
- Make a list of everything in your wallet. What could a thief use? Ensure you cancel or replace all cards that could be used.
- Call the department of transportation/motor vehicle registration. You'll need a new driver's licence. You also want to alert the authorities in case someone is pulled over and tries to use your stolen identification.
As a Protection Power member, you will have access to trained identity theft experts that can help you sort through the identity theft and all the ramifications.
Members also have access to identity theft insurance which may cover you any time you have to take off work, among other identity theft expenses.
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Marking Data Privacy Day -
January 28, 2011, marks international Privacy Day, a day noted by many countries, businesses, corporations and agencies. According to Canada's Privacy Commissioner, “Data Privacy Day highlights the impact that technology is having on our privacy rights and underlines the importance of valuing and protecting personal information.”
It's a good idea to take a few minutes today to reflect on the impact privacy has on your life. How much of your life is available online? How much are you able to keep for yourself? It might also be a good day to consider boosting the privacy settings on your social networking sites, removing your name from junk mail lists and strengthening your passwords.
Here's a little more of what the Privacy Commissioner had to say:
“Whenever we put personal information in cyberspace, whether accidentally or by design, it may be impossible to control who uses it and how.
“But what’s the risk? Strangers could use your personal information to embarrass you or damage your reputation. Businesses could use it to track your personal likes and dislikes, without your knowledge or consent. It could also be stolen and used in ways that can cause you significant personal and financial harm.”
Read the Privacy Commissioners full message here.
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Ottawa patients warned of data breach -
Two computers recently stolen from Ottawa's Bruyère Family Medicine Centre are believed to have contained the personal information of patients.
According to CBC.ca, patients who visited the clinic between 1971 and 2006 – up to 60,000 patients – may be affected.
While the centre says medical information was not on the computers, patient names, addresses, telephone numbers and health card numbers likely were.
All past patients of the clinic are being advised to check their credit reports for any unusual activity.
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Beware tax time identity theft -
January is another month exploited by identity thieves who would love to raid your mailbox for tax-time information from the government or your banks.
A recent article in the Globe and Mail explores the dangers of tax season. It's true that January brings high levels of identity theft, between the desperation brought on by post-holiday bills and the prevalence of personal information in the mail.
The article offers a few tips for protecting your tax-time info:- Pick up your mail as soon as you can. Read this article for more details on protecting yourself against mail theft.
- Keep track of important documents. What are you expecting in the mail? If it doesn't arrive, investigate.
- Check your credit report.
- Where possible, choose electronic delivery of bills and statements.
- Shred all important documents.
For more tips on protecting your personal information in any season, visit Protection Power's learning centre.
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25 years of the computer virus -
This month marks 25 years since the first computer virus went mainstream, as noted by CBC.ca. Called “Brain,” that first virus was created by brothers who actually included their contact information in the code. It was more a statement and warning about piracy than an actual threat to users.
That was 1986. Since then, millions of viruses and malware have been unleashed on the world. They've advanced in technology, malice and methods of distribution.
Malware growth is shocking. About one in every 284 messages was infected in 2010. Estimates say there were 339,600 different types of malware in 2010 email messages, a hundredfold increase over the year before.
Organized crime is now moving into the computer hacking game; the increase in connected mobile devices has only opened more doors for hackers to step through.
For more on the seriousness of today's malware threats, read the full story on CBC.ca.
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Canada's top scams revealed -
The Better Business Bureau of Mainland BC has issued its list of top scams, and social media is at the top of the list. The reason? Canadians are too relaxed about social media pitfalls – and too eager to get into online commerce.
In an interview with the Vancouver Sun, the region's BBB, president Lynda Pasacreta, says “the Web is the one we're going to watch in 2011.”
She continues: “You almost feel like you're out for a cup of coffee with your friends and you're just talking and sharing information. Well, these scam artists are watching all this."
Common Facebook scams start when people post vacation plans online. Scammers take the opportunity to enact the “grandparents scam” - they contact grandparents, pretending to be the grandchild in distress.
Another common scam involves website recommendations that appear to come from friends. Visit that website, and you may be opening your computer to identity theft.
The BBB reports that 20% of Canadians found unacceptable charges on their credit cards after accepting free offers online.
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Debit fraud rising in Canada -
Debit fraud is rising in Canada – and consumers aren't aware of the consequences.
In a recent article, The Montreal Gazette spoke with Bruce Cran, president of the Consumers Association of Canada. Cran says Canadians don't realize how often debit card fraud happens – and that it can occur without the consumer ever losing his or her card.
“There seems to be an aggressive amount of [debit-card fraud] and we’re getting calls on it, a lot of calls,” Cran said in the Gazette's interview. “That could be due to all sorts of things, but it is on the increase.”
The numbers: between 2008 and 2009, the number of debit-card transactions in Canada increased 5.4% from 3.7 billion to 3.9 billion. During the same period, debit-card fraud losses increased 36.2% from $104.5-million to $142.3-million. The number of cardholders asking to be reimbursed increased 60.8% from 148,000 to 238,000.
Victims of debit card fraud may have to wait weeks for a replacement card; in the meantime, their accounts may be frozen. Compensation for losses can take much longer than for a breached credit card.
It is important Canadian consumers take responsibility for the protection of their cards. It's vital to protect all your PIN numbers and check your statements carefully for any sign of unusual activity.
For more hints on protecting yourself from debit card fraud, read our article on protecting yourself from skimmers.
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Top mobile banking dangers -
Using your mobile phone you can now bank just about anytime, anywhere. Transfer funds into an account, pay bills or check your account balance in just seconds … it's great, right?
An article in The Globe and Mail examines the flip side of this added convenience. There are a few important security issues you should be aware of before you use your mobile device to access any of your financial accounts.
Top mobile banking dangers listed include:- Interceptions. Text messages aren't encrypted, and hackers may even be able to read those you have deleted. Think before you text.
- Unauthorized access. Today's mobile phones do not have the security structure of websites (with active security certificates) or ATM machines. Hackers can, and do, break in. Password protect your phone, lock it when you're not using it, and consider security applications.
- Fraudulent apps. Research before you download any applications.
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Mail theft in B.C. -
Police in Squamish, B.C. arrested a suspect in connection with the alleged theft of mail from at least 38 residents. RCMP believe the suspect specifically looked for mail containing bank cards, credit cards and blank cheques.
According to the Squamish Chief, the suspect was later released as RCMP and Canada Post continue to probe the incident.
On Jan. 7, police recovered mail for 38 people, which they believe had been stolen from multiple locations in the town. The victims are being advised to contact credit card companies and the credit reporting bureaus, Equifax and TransUnion, to let them know them their credit details may have been compromised.
The current probe follows on the heels of a serious break-in of community mailboxes in the area about a month ago. Residents are being urged to pick up their mail as soon as possible after delivery and to watch for missing bills or statements.
Theft of mail is an indictable offence under Section 356 of the Criminal Code, carrying a maximum penalty of 10 years in jail.
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RCMP warn of slick credit card scam -
A sophisticated credit card scheme is working its way across Canada, swindling consumers by convincing them to give out security information over the phone.
An officer with the commercial crime section in St. John's, Newfoundland, says a number of people in the province have contacted police about suspicious calls from people claiming to be credit card agents.
The “agents” call victims, state they are investigating unusual credit card purchases, and ask for the three-digit security code on the back of cards. These key numbers could allow the criminals to make purchases with the stolen card numbers.
This particular credit card scam is a little different than most – the fraudsters have already obtained the victim's name, address and credit card number before placing the call.
As reported in the Toronto Star, this personal information may have been obtained through unsecured online sites, mail and at places like department stores that collect names, addresses and phone numbers on credit card applications.
“This is, as far as I'm concerned, one of the most sophisticated schemes I've seen,” Cpl. Vicki Chalker told the Canadian Press. “They're really doing a remarkable job at fraudulently obtaining our information, so the public needs to be very vigilant in securing their personal information.”
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Fraud cases rose in Canada in 2010 -
According to a story by CBC.ca, a record number of Canadians were hit by fraud in 2010. In fact, it was in late October that the number of 2010 fraud cases (8,120) surpassed the total for all of 2009.
Marketing fraud, scams targeting the elderly, bogus sweepstakes and more all played a factor in the year's record fraud levels.
In total, these cases cost individual Canadians close to $30 million – well more than 2009 numbers.
These statistics only count those who report being victims of mass marketing fraud. The Canadian Anti-Fraud Centre estimates as many as 95 per cent of victims never do report the crime due to embarrassment or lack of awareness.
Identity theft remains a large concern for Canadians as well. As one victim told CBC, "Not only are we victimized by having our money stolen, we cannot move on with our financial lives like everyone else can. We can't borrow money … We can't buy a home. We can't get a car loan. It never stops."
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Top scams of 2010 -
The Better Business Bureau in Arizona has released its list of the top 5 scams in 2010. The list may not surprise regular readers of this site, but it does show a trend towards more identity theft through social networking and mobile phones.
“ID theft prevention should always be on an individual’s mind,” Matthew Fehling, CEO of the BBB says in the press release. “When it comes to protecting your identity, an ounce of prevention is worth far more than the amount of money, energy, and agony that goes into getting your life back to normal after your financial and personal information has been stolen.”
The BBB's top 5 scams are:
1. Social-networking scams: intrepid hackers hijack accounts and post worrying message
2. Telephone denial of service attack scam: criminals tie up the phone line with hundreds of calls while they loot your bank account
3. Renter's scam: fraudsters pose as homeowners and collect personal info and money from unsuspecting house hunters
4. Charity scam: a legitimate-sounding charity is not so legitimate after all
5. Job scam: work at home opportunities that truly are too good to be true
Read more about the scams and the BBB's advice for avoiding them.
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Travel chaos brings hacking scams -
The travel upheaval in Europe and elsewhere is bringing out the grinches among us.
Computer hackers are taking advantage of the desperate times and frustrated travellers to launch email scams. According to CBC.ca, fraudsters are most frequently posing as stranded passengers asking for money.
"Because of what's happening in the U.K., a lot of people are taking advantage of that," RCMP Sgt. Paul Proulx told CBC. "The hacker is one of those people."
An example email from the CBC story: "My bag got stolen. I'm stuck at the airport. I've got no visa, no passport. Could you just help me out for a little bit? I'll pay you back as soon as I get home.”
The recipient never suspected the email was a scam – but he luckily found out the truth before wiring his friend the $2,000 the emailer requested.
The police suggest people protect their email accounts by changing passwords often. If you think you've been hacked, you should get in touch with the RCMP's Anti-Fraud Centre and your local police.
Anyone receiving a desperate plea for money should always contact the person requesting help directly.
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Ontario man charged in PIN scam -
A man from Brampton, Ont., faces a long list of charges for his part in a scam to install Bluetooth technology on stolen PIN pads.
According to a story in the Barrie Examiner, the man and his accomplices stole PIN pads from area businesses, installed Bluetooth wireless technology on them, and then reinstalled the PIN pads at the places they were stolen from.
The culprits then waited in the parking lot of the affected stores, using their laptop computers to capture credit and debit card information from shoppers inside.
Unfortunately, this type of scam is especially prevalent during the Christmas season. Read Protection Power's article on avoiding and recognizing skimmer scams and stay safe!
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“Contactless” credit cards raise fraud concerns -
Canadian police are warning of new fraud dangers posed by credit cards embedded with contactless payment technology. The technology allows a customer to simply hold a credit card next to a terminal to complete a transaction, instead of swiping it or using the chip.
However, a criminal standing close enough could potentially capture card information wirelessly. He or she could then use the data to create a fake card.
Although many credit card companies encrypt the data transmitted, police say criminals could read it if they are close enough.
The article on Canada.com continues:
Payment card fraud is a multimillion-dollar racket and criminals are always looking for new ways to defraud customers or businesses, say police.
"It's huge," said Nanaimo RCMP Const. Gary O'Brien. "It's out there."
Police say point-of-sale terminals are as valuable as cash to criminals, who target high-volume stores. Stolen terminals are reconfigured and returned to capture data and personal identification numbers.
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Holiday charity scam emerges in Halifax -
A couple in Halifax have been seeking financial aid from churches and other charities. They've been asking for money for food, rent, supplies and other items for their three children. Problem is, this couple isn't looking for donations out of genuine need – cash from charities has become a way of life.
"This couple uses this scam to make their living, and it's not a one-time thing," Halifax Regional Police Const. Brian Palmeter told CBC.ca "They go from church to church, organization to organization, and may, in fact, be travelling around the province and even further."
Just as donors should verify the charities they donate to, charitable organizations should take the time to verify the identities of those they are helping. Police recommend writing a cheque to the individuals, instead of giving cash. This at least leaves a paper trail.
Police also recommend writing a cheque directly to a utility company or other organization, instead of the family in need.
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McDonald's warns customers of data breach -
McDonald's is the latest major corporation to admit being hit by a major data breach. Earlier this week, McDonald's issued a warning to its North American customers: any one who signed up for an in-store promotion or registered at any of its websites may be at risk of having their personal information stolen.
McDonald's says a database containing personal email addresses was compromised. Customer name, address, phone number and birth date may also have been exposed.
The database was managed by a separate database management firm, whose files were broken into by a third party.
According to a story on CNET.com, McDonald's is making it clear that the incident has nothing to do with credit card use at the actual restaurants. Affected customers are being notified by email.
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The dangers of electronic pickpocketing -
It sounds far-fetched, but it does exist. Electronic pickpocketing – thieves stealing your credit card information without laying a hand on your wallet – is already happening.
This News3 story explores the issue. The technology is relatively new, and is leaving hundreds of millions of North Americans vulnerable. At the centre of this modern threat is RFID (Radio Frequency Identification Technology), found in many credit and debit cards today.
RFID makes it easier and faster to pay – all you do is scan your card. But crooks with the right software and a small handheld or laptop computer, can access your card information just the same way the card reader at your favourite retailer does.
Here are some more articles on RFID technology and its associated dangers:
RFID hacking: is it a threat?
The RFID hacking underground
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2010: The year of the hacker -
Wikileaks has dominated the news in recent weeks, and rightly so. Not just for the information that has been “leaked,” but also the issues Wikileaks has raised about data security, freedom of information and, yes, the power of the hacker.
A recent story on CTV.ca goes so far as to name 2010 “The year of the hacker.” In the first week of December, Visa.com was brought to its knees by a 16-year-old (and his associates). It was just the latest major cyber attack in a year of such electronic crimes.
Along the way, the personal financial and identity information of millions of people around the world have been put at risk.
As the CTV story states, “from easily obtainable cyberwarfare tools being glorified in Stieg Larsson novels to jailbroken iPhones, hacker culture is also cycling from the underground to the mainstream.”
Hacker Michael Calce (once known as “Mafiaboy,” the hacker who tried to bring down Yahoo and CNN 10 years ago), says: “Hackers used to break into networks and pull classified data, but back in the day this information was kept amongst the community ... Now that information is on a global pedestal. WikiLeaks is just an example, there’s going to be a lot more of this to come.”
The prevalence of this crime means all consumers must be aware of their personal information – where it is, how it is used, and how it may be misused. Sites like ProtectionPower.ca, heavy on educational resources and identity protection services, have been created to help everyday Canadians stand up against hackers.
Get The Full Story >>
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Missing Alberta laptops held health, financial data -
Missing Alberta laptops held health, financial data
The Alberta Privacy Commissioner is stunned in the wake of news that at least seven laptops or digital devices have been lost or stolen in the past month – each one holding unencrypted health, employee and/or financial information.
"It just makes me crazy," Frank Work tells CBC.ca. "I think that's just utterly irresponsible now in this day and age."
The stolen devices include:
• A laptop belonging to a researcher and including medical charts belonging to 2,700 pediatric gastroenterology patients.
• A digital recorder and laptop stolen from Alberta Sustainable Resources contained statements related to wildlife investigations and employee contact information
• Another laptop, this time from an unnamed trust company, held emails including mortgage information, SINs, credit reports and more.
• A speech pathology office had two laptops stolen, both containing information about patients (under 6)
• The final two laptops belonged to a marketing firm and a genetic research company. Both included employee information such as SINs.
Work's advice? Don't store employee information on laptops and take advantage of easily available encryption programs.
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Cyberthreats hit retail industry – and customers -
A recent story in the Vancouver Sun discusses the cyberthreats facing retail businesses in Canada today – and the dilemma faced by retailers attempting to deal with them.
On the one hand, consumers are demanding more personalized and customized services, particularly online. Thanks to information provided by the consumers, many websites know who you are and what your interests are as soon as you log in.
Which means, on the other hand, the more consumer information that is collected, the more than can be stolen.
Retailers often do not realize their customer information has been accessed right away. Think back to the massive Winners/TJ Maxx data breach in 2006 – it took almost 18 months before the giant retailers realized there was a major issue.
Experts believe the greatest risks in the future will come from mobile devices.
“Increasing numbers of consumers are signing up for shopping apps, where the app will list nearby stores and promotions,” Tony Hernandez, Director of the Centre for the Study of Commercial Activity (CSCA) at Ryerson University, says in the article. “The next major wave of hacking and identity theft will likely come from monitoring of smartphones and associated mobile devices.”
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Smartphone scams to watch out for -
Smartphone scams to watch out for
As cell phones evolve – now doing most anything a computer can do – customers are becoming more dependent on the many functions the mobile offers. Handy, efficient, engaging, distracting... smartphones are all of these things. But have you stopped to think of the down sides of all this information in one portable device?
Smartphone scams are on the rise, and all users would do well to take note. Recently, the Globe and Mail outlined three of the most prevalent:
Denial of service attack: Basically, a criminal uses an automated system to send a series of calls to your phone, so you can't make or accept calls. While your line is tied up, the scam artist is busy accessing the bank accounts that had records on your phone. Your bank can't reach you – but the criminal can call the bank, pretend to be you, and verify the transactions. People have lost entire retirement savings funs to this one.
Phone “anti-virus” software: You actually don't need anti-virus software for your phone, and most offers of this kind of product will likely be scams. Download the fraudulent software, and you'll likely receive thousands of spam messages a day … and be billed for them.
Third-party premium services: In general, it's a bad idea to use your cell phone to take fun quizzes, dial for your horoscope or take an online poll. These seemingly innocuous activities will often end up costing you more than you asked for – maybe even a monthly subscription.
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'Tis the season for fraud -
As consumers open their pocketbooks to buy gifts, food and other seasonal treats, criminals are watching. Careless shoppers are more vulnerable than ever this time of year – not only are we all shopping more, but the busyness, stress and crowds make it easier for thieves to operate.
As well, many are looking for help during tough economic times. Scam artists take advantage of this.
"For people who have been out of work, as time goes on, they become more gullible," Elaine Lidholm, communications director for the Virginia Department of Agriculture and Consumer Services, says in the Washington Examiner. "They want (scam offers) to be true so badly."
The article goes on to list popular types of scams, including:
• Misrepresented Internet merchandise
• Fake ads on classified sites
• Fake cheques
• Phishing emails asking for personal information
• False charities
• Fake gift cards
• Prizes/sweepstakes requesting payment to claim prizes that don't exist
Be aware of where you're shopping. Never send personal information via email; always contact a business by telephone if you are unsure of the legitimacy of a website or email. And if an offer seems too good to be true – check it out, because it probably is.
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Door to door scam artists in Vancouver -
A fraudster has been reported going door to door in the west side of Vancouver. Apparently, the man in question asked for donations of money and toys on behalf of his organization – an organization that does not exist.
Unfortunately, scams like this are common as the Christmas season approaches. Police warn all residents to treat anyone soliciting donations door to door with suspicion – most organizations no longer operate in this manner.
The Better Business Bureau recommends asking any solicitor for photo ID, written information (with a phone number) to help verify the individual's identity and affiliation. If you believe you have caught a scammer in the act, write down a description of the individual, the charity he/she claims to represent, and contact police.
If you wish to donate to one of the many worthy charities this season, it is far better to approach the business yourself.
For more on the Vancouver scam, read the full story in the Vancouver Province.
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Most Canadian firms victims of cyberattacks -
Sections of a “secret” government report on cybercrime have been revealed, and the contents have repercussions for all Canadians.
The report states that 86 per cent of all large Canadian corporations have been hit by cyberattacks – and “espionage hacking” on the private sector has actually doubled in the past two years.
"Cyberespionage attacks are causing considerable economic damage," states the report, quoted in a story in the Vancouver Sun.
Cybersecurity experts are calling the report's findings “highly worrisome,” estimating half of the attacks likely originate in China and involve tapping into intellectual property secrets.
According to the Sun's article, the report “also touched on the well-documented use of blogs, chat groups and websites to hatch terrorist plots and the explosion in online theft in the recent years, in which billions of dollars annually are lost through high-tech methods to commit credit-card fraud, identity theft, and other commercial crime.”
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Direct debit fraud skyrocketing -
Direct debit theft – stealing directly from bank customers' accounts – is increasing in prevalence, as criminals take advantage of victims who carelessly neglect to check their bank statments.
According to the UK's Daily Mail, theft via direct debit has risen 288% in the last four years. Criminals may be doing this, at least in part, because chip and PIN security regimes has made actually stealing from cards more difficult.
Criminals steal bank information just as they do for other types of identity fraud: redirecting mail, breaking into databases, phishing schemes and so on. They then use this bank information to set up direct debits to pay for goods and services – everything from mobile phone accounts to gym memberships.
The article quotes John O’Roarke, managing director of LV= home insurance: “The rise in fraudsters setting up direct debits in victims’ names proves the need for everyone to regularly check bank statements and ensure they’re not paying out for someone else’s mobile phone or any other direct debit they don’t recognize.”
Get The Full Story >>
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Manitobans to have stronger ID theft protection -
The province of Manitoba is taking measures to help residents better protect against themselves identity theft. As of Jan. 31, 2011, individuals will be allowed to place a security alert on their files with credit bureaus.
This is especially useful for those who believe their credit or identity may have been compromised. By adding a credit alert to their files, any future credit grantor will have to take extra steps to verify a credit applicant's identity before any new credit is provided.
"Identity theft is a growing problem and consumers deserve every additional level of protection we can offer," provincial Family Services and Consumer Affairs Minister Gord Mackintosh is quoted in the Red River Valley Echo. "This one simple step could block a thief from gaining access to someone's identity or credit and protects a business from extending credit to an identity thief."
Although the credit bureaus do currently voluntarily provide the service, Manitoba and Ontario are the only two provinces that have a legislative requirement for credit alerts. According to the Manitoba legislation, the maximum an agency can charge to place the credit alert is $5.
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Police warn of unusual Ontario scams -
Ontario police have issued warnings about a number of scams that are popping up across the province. All Canadians would do well to take note of the frauds – and use caution when responding to online and telephone offers.
The Ottawa Citizen reports on the recent warnings. The article draws attention to four major scams:
First, a person who was selling a van for $1,200 was offered a bank draft for $3,000 – and asked to send the extra $1,800 to a UK bank account. In this case, the seller did not fall for the scam.
Next up: a Hydro scam, reported recently in the Ottawa area. The scammer tries to sell a device that supposedly gives a more accurate digital reading to save customers about $90 a month on their utility bill. However, the customer must pay for shipping, with fees ranging from $38.95 to $109. This widespread scam was blown open after the fraudster called a police officer .
A Renfrew resident lost over $1,000 trying to release an “inheritance” from a Nigerian bank account. Police warn that calls or emails about unexpected inheritances in foreign countries are almost always scams.
And finally, in Cornwall, “police are reminding residents that city officials do not call residents to test water quality after a telemarketer working on behalf of an independent company made calls “to sell water filtration systems.”
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Calgary police stumped by case of dead identity thief -
Calgary police are trying to crack the case of a deceased man who took a stolen identity – and his reasons for living under it – to the grave a year ago.
According to a story in the Calgary Herald, the identity theft was discovered after Calgary police stopped a driver and ran his licence and registration. The man was listed as deceased.
Apparently, another man using that identity checked into a hospital in the area a year previous, and had died of natural causes. He was buried under the stolen identity.
Police are now trying to discover the name and details of the deceased man. The body was exhumed and re-examined in September.
Calgary police spokesman Kevin Brookwell tells the reporter: “Right now, it’s tough. What activities were they up to? Why did they chose to take on another name? There could be a whole lot of questions we’ll never know the answers to … There could be a significant criminal component. It could end up being something big and international and far more complex than we ever thought.”
Police are examining the man's employment history and taxation information for more information.
“We’re looking at the employment history and taxation information to find out which person we’re dealing with.”
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IT security breaches jump 29% in 2010 -
A study released earlier this week reveals the number of information technology security breaches in Canada rose steeply this year – by almost 30%.
Governments fared the worst in this particular study, showing a 74% hike in reported breaches. The report, completed by Telus and the Rotman School of Management, showed governments had more than twice the number of data breaches as businesses in the private sector.
The Vancouver Sun says the study demonstrated a "growing trend toward targeted and sophisticated attacks."
The report also found:
• Insider breaches remained steady in 2010 for most organizations; but rose to 28% for privately owned companies
• Phishing is on the rise
• Identity theft is up
• The theft of consumer information is also up
• 2010 security budgets were below those in 2008
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Women more likely to fall for online scams -
A new study shows professional women aged 25-34 are most likely to fall victim on online scams. The UK study was commissioned to raise awareness of the increasing prevalence on online scams, frauds which cost British consumers and businesses almost £3 billion a year.
According to The Guardian, the survey involved more than 2,000 online consumers. The consumers went through a number of tests, including identifying fake Facebook pages to testing how people respond to competition scams or the sale of counterfeit goods.
In most cases, women aged 25-34 were most likely to fall for the scams; in the case of scams where an imposter asked for money to help someone in distress, men were more likely to fail.
Online fraud is a major concern in Britain, affecting more than 1.8 million in the country and costing the economy £2.7 billion.
Get the full story >>
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More cases of toddler ID theft: BBB -
The Better Business Bureau says children aged 5 and under are the victims of identity theft more than ever. Even worse, they say the people behind the crime are usually those closest to the children: parents, caregivers or grandparents.
"There's such betrayal involved in that, so the victims that we've dealt with in these cases, it's much deeper and much more personal," Kathleen Calligan of the BBB told WSMV-TV.
In most cases, the children will grow up not knowing they've ever been victimized – until they reach college and try to apply for a credit card, cell phone account, student loan or apartment. By that time, the identity theft can be difficult to sort out and solve.
The BBB recommends all parents check their child's credit report every year. In general, young children should not have a credit file – if they do, it may be the sign an identity thief is involved.
You may order your personal credit report from Equifax, Canada's top credit bureau, here.
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Montreal woman faces 66 ID theft charges -
A Montreal woman was arrested on fraud charges after a Halifax financial institution became suspicious of her actions.
Halifax Regional Police spokesman Const. Brian Palmeter told the Chronicle Herald that the woman, 30-year-old Mafula Aurelie Kuyena, faces more than 66 charges of fraud for possessing false identification, opening fraudulent bank accounts and depositing altered cheques. She was arrested in nearby Dartmouth, Nova Scotia.
Police are still trying to find out who Kuyena got her cheques from.
This is the second major identity theft-related arrest in Halifax in as many weeks.
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Lax security led to Ontario licence fraud -
Almost 100 Ontarians are possible victims of identity theft after a technical glitch allowed outsiders to change the addresses on their driver's licences.
The province's privacy commissioner made the warning in a report, adding there may be even more victims of this kind of fraud.
As reported by the Toronto Star, the privacy commissioner's office “censures the Ministry of Government Services for lax security measures in an online system that allows motorists to change their own addresses.”
A ministry spokesperson says security measures have been tightened up recently, even as an investigation into the online fraud is ongoing.
The online fraud was simple enough: all identity thieves needed was the victim's driver's licence number and postal code. With that information they could access the ServiceOntario website, change the address on the licence, and have the new licence mailed to them.
The ministry has uncovered at least 93 cases of this sort of fraudulent activity; in many cases, credit applications have been made in the victims' names.
Get the full story >>
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Personal data found in 7 out of 50 dumpsters -
A study by the National Association of Information Destruction has uncovered some alarming – and very personal – facts.
The association investigated 50 dumpsters outside various offices in the Toronto area. While it showed many organizations (particularly large banks and hospitals) do a solid job of disposing of sensitive data, other places definitely do not.
In fact, at least seven dumpsters contained personal documents thrown out by lawyers, accountants, mortgage brokers, employment agencies and doctors.
According to an article in The Toronto Star, “the data could be used to steal someone’s identity exposing them to potential credit card, mortgage and health care fraud.”
“Things are a lot better, but they also need to be a lot better,” the Star quotes Bob Johnson, executive vice-president of the association. “Any information being found in this day and age is inexcusable.”
Johnson says most of the problems come from smaller organizations. This investigation showed three out of four doctors' offices had thrown patient records into their dumpsters, including people's names, dates of birth, addresses, health card numbers, results and prescriptions. Given the growing prevalence of medical identity theft, these findings are particularly worrying.
“It wouldn’t take a lot of imagination to say you’re talking about tens of thousands of doctors office across Canada are casually discarding medical information,” Johnson was quoted as saying.
Get the full story >>
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Firesheep is here. Protect yourself -
If you're a regular user of public Wi-Fi networks, take heed: Firesheep may allow your neighbours to snoop on your online sessions.
Firesheep is a new, downloadable add-on to the popular Firefox web browser that allows pretty much anyone – even amateur hackers – to hijack nearby users' access to Facebook, Twitter and other services. Time for concern? Maybe, but not if you take the proper steps to secure your web sessions.
Firesheep was developed by American programmer Eric Butler. Once downloaded, Firesheep adds a sidebar to Firefox browser, which indicates when anyone else on an open network – think of the Wi-Fi networks available in coffee shops, restaurants and other public places – visits an insecure site. With a couple of clicks, the hacker will have instant access to logged-on sites like Facebook, Twitter, Flickr and bit.ly
Butler says he launched the application to draw attention to the lack of Internet security and the dangers of open networks. Released Oct. 24, Firesheep was downloaded 220,000 times in the first two days
As an article in the Vancouver Sun points out, the technology isn't new – but Butler did make it more accessible. Criminals have been using it for years.
The article offers some tips for protecting yourself from Firesheep snoops:
• If you're going to enter passwords or visit any site that requires user authentication, make sure you're using a secure network. Make sure the Web address at the top starts with “https.”
• Most web sites default to http, but the Sun suggests that “you can add the plug-in Force TLS to your Firefox browser to force sites to use HTTPS, a move that makes any information you send unreadable to snoops.”
• Close all sessions and sign out of all accounts when you're done; particularly if you're moving locations
Get the full story >>
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Halifax ID theft ring leader arrested -
Nova Scotians can breathe a sigh of relief: a man accused of leading a major identity theft operation has been arrested. The 26-year-old faces an incredible 108 charges, including falsifying documents and impersonating others in order to obtain identity information.
According to MetroNews.ca, police seized fraudulent health cards, SIN cards and driver's licences at the suspect's residence on Gladstone Street, Halifax. Police say the fake ID were made with card stock, computers, printers, scanners and other every day devices.
Halifax Regional Police Det.-Const. Dana Drover spoke about the potential seriousness of the suspect's crimes: “With identity fraud, you lay the foundation to commit a future fraud.”
The fake ID could be used, she continued, to open bank accounts, borrow money or apply for new credit cards. The victims whose information appeared on the fake identification wouldn't have known about the fraud until a credit issue came to their attention.
Police are alerting all potential victims.
Get the full story >>
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Over-sharing on Facebook leads to ID theft -
Do you tweet while on vacation? Upload Facebook mobile photos from your travels? Post pictures of your new car, stereo, or home? Post detailed public messages on your family members' pages? Maybe you should keep this information to yourself – or at least limit who can see it.
A recent article on CTV.ca revisits the identity theft threats posed by social networking sites. For example, as the article states: “One common Facebook scam is for a criminal to track a victim’s online behaviour, hack into his social networking account while he’s on vacation, then use the victim’s profile to tell his friends he has been robbed and needs a money transfer.”
Facebook passwords can be bought on the online black market for as little as 25 cents, the article states.
Here's another scam, reported by the Daily Courier. In this case, a scam artist used family information found on a social networking site to call an elderly man, pretending to be his granddaughter. All the details the fraudster needed were right there online.
This is not new information, but it's worth sharing again. Here are some tips for safe social networking:
• Do not use Facebook quizzes or apps – most of these are designed by marketers to gather your personal information
• Use strong passwords
• Keep privacy settings high
• Beware of links
• Ensure your mobile is secure
• Don't type passwords into public computers
Get the full story >>
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B.C. credit card scam busted -
Vancouver police and Surrey RCMP worked together to bring down a suspected fraud ring. Police say the suspects were using stolen credit card information to buy and sell items on online auction sites.
According to a story on CTV.ca, the ring has caused at least $129,000 in losses.
Police raided a Vancouver residence this week, seizing a variety of suspicious items including computers, stolen mail, stolen ID, passports, magnetic card readers and other items related to identity theft.
In all, seven individuals aged 21 to 34 were arrested.
Get the full story >>
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Feds announce $90 million cyber security plan -
Finally, the Canadian federal government is taking serious action to protect cyberspace. Earlier this month, Public Safety Minister Vic Toews announced the government's new cyber-security strategy would involve about $90 million in spending over 5 years.
The move is welcome at a time when Canadians are increasingly being targeted in identity theft and fraud schemes.
"The Internet has become an invaluable tool for Canadian families, businesses and governments," Toews is quoted as saying in the Toronto Sun.
"(But) increasingly cyberspace is being used and exploited by those who do us harm. It is being used by organized criminal groups who engage in identity theft, money laundering and extortion … Terrorists are using it to further their nefarious aims."
The cyber-security strategy will raise public awareness, strengthen existing government protection measures and allow better information sharing between government bodies, the public and businesses. Canada's Information Protection Centre will also be improved and expanded.
According to the article, about 2 million Canadians were victims of identity theft in 2008 alone; the crime costs the country $2 billion annually.
Get the full story >>
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Identity thief buys Lexus, Sea-Doos -
Ruslan V. Sidorov was a Russian exchange student who studied in the U.S. back in the early 2000s, leaving in 2004. What a surprise, then, to find out he – or someone using his identity – bought a $55,000 Lexus and two Sea-Doos and trailers (worth some $32,000).
Of course the former student didn't ever get to enjoy his toys. According to a story in the Kansas City Star Artur Galstyan, 33, an Armenian citizen living in Colorado made the purchases.
Galstyan was recently arrested and charged for using counterfeit documents to open fraudulent credit card accounts and obtain lines of credit.
When he was arrested Sept. 23, police found documentation for more car purchases, as well as evidence the Lexus and Sea-Doos had already been shipped overseas.
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Phones may pose highest ID theft risk -
As people increasingly use their mobile phones to store personal and financial data, there is a growing concern that the wireless devices could be the cause of the next big wave of identity fraud.
According to a USA Weekend blog post, there simply is not enough awareness about Smartphone security. Moreover, the risk is 15 times higher risk that you'll lose your cellphone that your laptop computer.
The writer offers three steps to start protecting your phone and yourself from unwelcome intruders.
1. Lock your keypad and password protect your phone when it's not in use
2. Avoid unsecured Wi-Fi. It's never safe.
3. Monitor your accounts
4. Wipe your phone clean before discarding
Get the full story >>
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Three Quebec men face ID theft charges -
Three men in their early 20s made their first appearances at Regina Provincial Court on charges including credit card theft and forgery, fraud, and possession of instruments used for making or falsifying credit cards.
According to a story in the Leader-Post, police received a complaint last Sunday from a business reporting the suspicious use of debit cards. Four men had allegedly been using multiple debit cards to purchase large gifts.
After locating and arresting three of the suspects, police searched a hotel room in Victoria. Police found a card reader, laptops, fake debit and gift cards, and cash.
Police are reminding consumers everywhere to take care with their debit cards. Change PINs regularly, and always shield your hand while typing in your code. Check bank statements regularly, and always examine PIN pads for any sign of tampering.
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Windsor con man on America's Most Wanted -
A con man from Windsor, Ontario, will be featured on the popular television show. Richard Earl Rupert, 54, is wanted across Canada on dozens of charges, including robbery, break and enter, fraud and theft. He has been known to target the most vulnerable in the population – the elderly, blind and mentally challenged.
According to a story in the Windsor Star, Rupert is from Windsor but has not been known to have a fixed address for years. “Toronto police say he goes to retirement homes and communities where he presents himself as someone's distant relative, usually a nephew, and convinces unsuspecting seniors to give him money for travel, car repairs or rent,” the story says.
He's shown up in various places across the country, generally befriending his targets before bilking them out of money.
"This particular case, what made it so compelling was the vulnerability of the victims," America's Most Wanted correspondent Jon Leiberman says on the show's website. "Here's a guy who is literally accused of terrorizing the most vulnerable people in our population, the elderly. Besides kids they're the most vulnerable. The egregious way he went about preying on seniors really got our attention. Our show exists to bring justice to victims and, in this case, there are dozens of victims."
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B.C. man jailed for forging transit passes -
A resident of Burnaby, B.C. (near Vancouver) landed in jail after being apprehended selling forged transit passes.
The 26-year-old was sentenced to two-and-a-half years behind bars after an investigation into fraudulent Social Services transit passes that had been turning up in the area.
According to a story in the Vancouver Sun, a police search of the man's home turned up more than fake bus passes. Counterfeit money and computer equipment used to forge Alberta drivers licences, government ID and retail, credit and gift cards were also discovered.
The passes alone were valued at some $250,000 a year; the cost of the identity theft and other frauds could have been much higher.
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1 in 5 Canadians has been scammed -
A new study by Visa reveals that fully 1 in 5 Canadians has been duped by a deceptive marketing scam – even though they are aware of the risks.
In most cases, the victims noticed unauthorized charges on their credit cards after submitting their card information for products that were misrepresented or did not exist.
In many cases, the victims were simply careless: they failed to uncheck consent boxes or read the terms and conditions attached to the offer.
According to the Toronto Sun, three-quarters of survey respondents said they review a part of the terms and conditions when they shop online but only half said they find the terms easy to understand,.
PhoneBusters recommends consumers always read the terms and conditions before shopping online or taking advantage of any such offer. If the terms are not clear, it's best to refrain from giving out credit card information.
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Vancouver RCMP warn against Craigslist scam -
This is a warning to all who use Craigslist and similar services: if a deal seems to good to be true, it probably is. Craigslist, the very popular classified listing service, has become a playground for too many scammers, warn the RCMP in North Vancouver B.C.
In just a couple of recent cases, a landlord was sent a fraudulent cheque (which ended up costing him almost $6,000); in another, a hopeful renter was nearly scammed out of his rent money. Used computers and iPhones have been purchased with counterfeit money in the Vancouver area as well.
An article in the Vancouver Sun on the topic quotes RCMP Cpl. Peter DeVries. DeVries warns those doing business on Craigslist and similar sites to avoid making a wire transfer payment, as they're difficult to trace. Consumers should also stay clear of accepting a cashier's cheque as payment, as these cheques are often frauds.
Craigslist can be a useful and safe way to purchase goods and services – with some common sense and caution.
Get the full story>>
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B.C. patient data in stolen laptop -
Over 600 patients are at risk of identity theft after a laptop was stolen from the Burnaby General Hospital in B.C.
According to a story on CBC.ca, the laptop was taken from the hospital's pulmonary function lab and contained patient information including names, birth dates and provincial health card numbers.
All affected patients have been notified and will receive a year of complimentary credit monitoring to help protect them from the very real danger of identity theft or fraud.
The information on the computer was not password-protected or encrypted.
CBC quoted Pat Egan, of the Office of the B.C. Privacy Commissioner: "We've been saying for years now that portable storage devices, including laptops or flash drives — those kinds of devices, that contain personal information — that information about identifiable individuals must be encrypted," said Egan.
These types of data breaches are all too prevalent; for information on what you can do, please read our article Data Breach: Protect Yourself.
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Canadian criminals branching out -
A new survey by the Criminal Intelligence Survey Canada has revealed that there are currently more than 600 organized criminal groups operating in Canada and pulling in billions of dollars of illegal profits.
While the crimes we associate with organized crime – drugs, gambling, money laundering – are still huge issues in this country, reports suggest these criminals are increasingly branching out into a wider variety of criminal activity. From heavy equipment theft to credit/debit card fraud (your new chip card does not keep you completely safe, unfortunately) and counterfeit prescription drugs to mortgage fraud, organized criminals are working in many ways.
A few interesting statistics from a story on Canadian organized crime posted on MSN.com
- Debit card fraud increased 36 per cent from 2008 to 2009, saddling Canadians with losses of more than $140 million- Underreporting makes it hard to find an exact number, but it is estimated Canadian mortgage fraud has accounted for as much as half a billion dollars in losses per year
- Some 10-20 per cent of all products (DVDs, washers, jeans, shoes) sold within Canada may now be counterfeit
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B.C. man stole identities to pay for drugs -
For several months during 2009, Surrey B.C. resident Timothy Moisan broke into the bank accounts of dozens of people, withdrawing the cash he wanted to pay for his drug habit.
According to a story in The Province, Moisan would use forged debit cards to transfer funds from one account to another. He also cashed fraudulent cheques, used a stolen credit card to make payments, and opened a bank account using the SIN, health card and credit card of a New Westminster man.
Officers search Moisan's home last spring and found numerous identification, credit cards, passports, point-of-sale terminals and pinpads, computers and more. It was clear the man had been engaging in identity theft for months, if not longer.
“In the police’s opinion, any number of those items can be used in credit-card production,” Crown prosecutor Brad Kielmann said in the article. “These offences show a fair level of sophistication,” Kielmann said, recommending a four-year prison sentence.
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500 million records breached since 2005 -
The Chronology of Data Breaches has been a project of the Privacy Rights Clearinghouse for the past five years. The organization published its latest report this month, showing that an incredible 500 million personal records have been lost, stolen or exposed in the US in that time frame.
The Privacy Rights Clearinghouse is a non-profit consumer organization. One of the group's advocates wrote an article reflecting on the high number of data breaches. Indeed, she says, 500 million may be a conservative estimate, since “we generally learn about breaches that garner media attention. Unfortunately, many do not.”
In Canada, there seems to be even less reporting of data breach cases, but there is no reason to think there are any fewer occurrences.
The Privacy Rights article says their report is “a wake-up call to consumers who think identity theft can’t happen to them.”
The article continues:
Data breaches of sensitive information, especially Social Security and credit card numbers, leave consumers vulnerable to identity theft. ... Individuals are four times more likely to be the victim of identity theft in the year after receiving a data breach notification letter.
Unfortunately, consumers cannot completely protect themselves from a data breach. It is up to organizations that collect data on consumers to take the steps to ensure the privacy and security of the data they collect and maintain. And it’s up to the legislature to pass laws to safeguard consumer data and provide adequate standards for reporting breaches – so that consumers will know when a data breach has placed their personal information at risk.
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Lax B.C. government systems make fraud easy -
British Columbia's auditor general released a scathing report this week warning of the risk of fraud within the province's public sector.
As reported in the Vancouver Sun, auditor-general John Doyle cited just a handful of cases to illustrate his point. These included a case worker who defrauded elderly citizens out of more than $1 million; a college official who created and submited fictitious invoices; a senior health official charged with fraud and breach of trust.
Doyle says it's obvious that fraud is a major problem in the public service, though concealment and a lack of reliable reporting make it difficult to quantify the extent of it.
"We quickly found that although government's general control environment does have a number of practices designed to prevent or detect errors or fraud, there was no such generally accepted guidance available or in use across the province," Doyle is quoted in the article.
"We also learned that there was no centrally coordinated oversight or management of fraud prevention, detection, investigation or reporting."
The auditor general's finding show how vulnerable the public's tax money and data is, both to criminal insiders and outsiders.
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Identity theft: fighting a growing threat -
Protection Power's Sylvain Patry visited Global Television's studios in Edmonton to discuss the dangers of identity theft.
Edmonton has been recently hit by a rash of mail theft, making Patry's appearance on the popular morning show a timely one. In response to the host's first question, Patry outlined why identity thieves look for mailboxes they can steal from.
Identity thieves “walk to a mailbox and pick your mailbox … and go through cheques, your utility bills … and put together your identity like a jigsaw puzzle – and will go after your money, your credit cards, your bank accounts, this is what they do for a living.”
Patry pointed out the wealth of information available on ProtectionPower.ca, including identity theft protection tips for everyone.
And what do identity thieves do with the information they retrieve?
"The smallest of the crimes would be the cloning of your credit card or your debit card and they'll try to get as much out of a bank account or a credit card as they can. Or they can also contract a mortgage in your name.... they can falsify passports, drivers' licences, the same thing with health cards. If they are able to take your identity on, they can make a very big mess for you."
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Montreal police overwhelmed by fraud complaints -
Montreal police have a long list of fraud files to work on – much more than their fraud squad can handle. The backlog means that it may be almost two years before new cases and complaints are examined.
A story in the Montreal Gazette describes the state of the Montreal fraud squad, which is currently drowning under the weight of its workload. The fraud squad handles a range of cases, including credit card theft, identity theft, forged cheques and other financial crimes. All of these crimes are rising in prevalence, putting new stress on the crime fighters.
"The Internet has changed the game. Everyone is doing it – theft via computer – because it's easy and there's a lot of money to be made," Inspector Charles Mailloux of the Montreal police's special investigations unit said in the article.
The article also featured one victim of fraud who was shocked when she went to the police and was told of a two-year waiting list. “This is the perfect crime; you can defraud a whole bunch of people, then take off to the Caymans or wherever you feel safe," she said.
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Organized crime using social networking -
Canadian organized crime is becoming increasingly sophisticated – and online. According to a story on CBC.ca, major crime rings are using Facebook and other social networking sites, as well as classified sites like Craigslist and Kijiji, in their fraud schemes.
Criminals may post fake press releases or promotional materials; trade lists of victims and accomplices; conduct financial fraud; and more. Fake promotions may help a fraudulent company appear more legitimate, and encourage victims to invest.
"Thousands of people in Canada are victims of [financial fraud] … and will recover little if any of their money," Chief Mike Boyd of the Edmonton Police Service is quoted as saying.
Police estimate there are between 600 and 900 organized crime groups operating in Canada. RCMP are actively trying to protect Canadians by increasing public awareness of criminal activities and prevalent scams.
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More skimming machines found in Calgary -
As more fraudulent activity comes to light in Calgary and Airdrie, Protection Power Vice President Sylvain Patry reminds all Canadians to watch where they shop.
Speaking to Calgary's QR77 newsroom, Patry tells consumers how skimming devices are used to copy and transmit debit and credit card information to waiting criminals.
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Credit card fraud ring suspected in B.C. -
West coasters beware! The Vancouver Sun is reporting police in the Fraser Valley area suspect a credit card fraud ring is operating in the area.
They've ramped up their investigations after collecting some 20,000 credit cards and card-making equipment in three incidents in Abbotsford in the past few weeks.
The article quotes Const. Ian MacDonald: "From our small town, indications are we have at least one group actively working here... At least 20,000 credit cards have been compromised. The manufacturer and head of operations has to be somewhere in our city.”
The incidents have turned up flash drives containing thousands of credit card numbers, stolen credit cards and laptops, point-of-sale monitors and other devices used to either create fake credit cards or load stolen information onto blank ones.
One arrest has been made; the police are searching for other suspects.
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University students at risk of identity theft -
University and college students have a lot on their plates – classes, social life, maybe settling into a home away from home for the first time. Identity theft and fraud are not at the front of their minds, by any means. Unfortunately, this only adds to the risk: students are at a high risk of falling victim to identity theft.
According to recent statistics, young people aged 18-24 take the longest of anyone to recognize identity theft.
According to Better Business Bureau spokesperson Alison Southwick: “Identity thieves don’t care if you’re a struggling student and don’t have a penny to your name; sometimes all they want is to exploit your clean credit record … Young adults that establish good habits for monitoring and detecting fraud are laying a path that will help create a healthy financial road for the rest of their lives.”
The BBB offers seven easy steps students can take to help prevent identity theft and fraud;
-have all mail sent to a permanent, secure address
-never lend a debit or credit card to anyone
-store important documents under lock and key
-keep your computer anti-virus, anti-spyware and security systems up to date
-always check credit or debit card statements for unusual charges
-careful when shopping online – learn to recognize a secure site and look for the BBB Accredited Business seal
-check your credit report at least once a year; more often if possible
For more details, see the Better Business Bureau's article on the topic.
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Health care organizations lose most data -
Health care organizations, from hospitals to medical insurance to government agencies, have access to most of your personal data, from your medical history to your SIN to your birth date and more. Health care organizations process more personal information than just about any company.
Which is why it so troubling that most cases of data loss so far in 2010 have happened at the hands of those in the health care field: according to a study by the Identity Theft Resource Centre, of 385 major instances of data loss so far in 2010, 113 occurred on the networks of health care organizations.
As the article points out: “In hospitals, so many doctors, nurses, technicians and others have access to private information that the likelihood is even higher of insider mistakes than it is at other institutions.”
Data breaches at agencies like this are beyond your control. It's vital all Canadians take proactive steps to protect their identities and spot any evidence of data breach as soon as possible. Read our article on data breach for more information.
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Another case of mortgage fraud in Calgary -
Police nabbed two men in Calgary for allegedly running a mortgage fraud scheme worth more than $12 million. According to the Calgary Herald, officials say mortgage fraud is becoming more prevalent as organized criminals diversify into more complex crimes.
For this scam, the ring leaders convinced acquaintances – known as “straw buyers” – to take out mortgages in their name. The straw buyers were told they'd only have to assume the mortgage for six months, and walk away with up to $5,000 for their role in the plan.
The mortgages were falsely inflated with forged appraisal documents.
In this case, the naive straw buyers were stuck holding expensive mortgages and banks were left hurting in the con.The ringleaders walked away with millions – until the police caught up with them, after a two-year investigation.
In a related story in the Toronto Sun Sgt. Michelle Hanley of the Calgary commercial crime unit says that city police are encountering more mortgage fraud than ever.
"We're certainly seeing more cases reported to us ... criminals are savvy in creating false documents and getting people to lie," said Hanley.
Although the ringleaders have been caught, police say “a tough road” lies ahead for anyone looking to recover their part of the $12 million.
Read more on mortgage fraud and how you can protect yourself.
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How you can prevent mail theft -
A massive mail theft ring was recently dismantled in Edmonton, bringing the issue of identity theft through stolen mail to the forefront once again. It's a low-tech crime that is still rising in popularity among criminals.
Protection Power's Sylvain Patry visited the Shaw TV studios in Edmonton to discuss identity theft and offer a few thing every Canadian should do to protect him- or herself from identity theft.
“In your mail, all pieces of your identity are there: your first name, last name, home address, home phone number, credit card numbers, utility numbers, debit card numbers, name it! Your drivers licesne ... a lot of information about your identity are based in your mail,” Patry says.
“identity thieves go after your mail and put together a profile of you... once they've got a complete identity, including your SIN, they can do a lot of damage to your credit and even commit crimes in your name.”
One of the frightening things about mail theft is you may never know it has happened.
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Six new credit scams -
A recent article in the Globe and Mail highlights the need for awareness: be aware of the scams out there, know that some criminals would turn a financial service into a money-making scheme; and learn about what you can do to protect your financial information.
The article describes six new and all-too-common credit schemes at work in Canada. Some you will have heard of; some you may not.
For example, on skimming schemes: technologically advanced criminals plant skimming devices at stores and ATM machines to copy your name and card number. Then, as the author writes, “criminals can then use Bluetooth devices to wirelessly transmit all of your information back to their location. They then can use this information to amass huge amounts of fraudulent charges in your name.”
Skimming schemes are rampant; a ring of identity thieves was recently busted in Calgary for doing exactly what's described.
The other scams mentioned – mortgage rescue scams, credit repair scams, phishing email scams, credit card scams, letter of credit fraud – are equally prevalent and potentially damaging. In today's digital world, everyone's financial information is at risk. Read the article and be aware.
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Ontario drivers at risk of identity theft -
Until recently, Ontarians could visit their provincial government's website and change the address on their driver's licence quickly and easily. All they needed was the driver’s licence number and postal code.
That might have been a convenient feature, but it made it all too easy for an identity thief or other outsider to do an unauthorized change of address. With a fraudulent address, certain mail from the government could be redirected to a waiting criminal.
It's already happened. Alarm bells were sounded last weekend after one individual came forward. His address was changed by someone else (the new address turned out to be an abandoned strip club) – and his credit report had been accessed.
The man, fearful of the repercussions identity theft, filed a report with the provincial privacy commissioner. According to an article in the Toronto Star, the man believes someone used a photocopy of his driver's licence and the online address change service to make the change.
“The most amazing thing to me is how little protection the government did for people’s information and it’s really unacceptable that they would do this,” he said.
The online address change service has been pulled, at least temporarily, while the matter is probed.
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Edmonton mail-theft ring busted -
If you were ever unaware of the increasing severity and prevalence of mail theft, you can't plead ignorance any longer.
News stories earlier this month have covered the break-in of a community mailbox in Surrey, BC and a rash of mail thefts in Waterloo, ON. Now comes a report out of Edmonton: police have arrested nine people involved in mail theft across the city.
"The stolen mail was then used to commit identity theft and fraud,” Det. Calvin Mah told CTV Edmonton.
Another report in the Edmonton Journal says police believe most of the thefts occurred in apartment buildings and complexes. Police recommend all residents check their mailboxes regularly and remove mail as soon as possible.
The suspects are charged with more than 90 counts of fraud and theft-related charges.
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B.C. mailbox heist raises ID theft fears -
Surrey, B.C. resident Leif Sogaard went to his community mailbox to pick up his mail – and was shocked to see the front panel ripped off, with mail strewn across the road. He was expecting mail from banks and credit card companies; he has no idea if some of the items were stolen.
Two Canada Post employees were fixing the mailbox – but Sogaard says he, and the others who use the mailbox, should have been told about the destruction.
“It’s one of those things where our identity could have been compromised. We should be notified about something like that,” Sogaard is quoted as saying in Surrey Now.
Sogaard said he spoke to his bank and credit card companies – just in case. According to the article, none of Sogaard's neighbours were aware the robbery had happened.
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Neil Armstrong's customs form stolen -
In a very brazen case of information theft, two men stole, and tried to sell, the customs form belonging to the first man to ever walk on the moon.
According to a BBC story, the men – one of whom was working at a Boston airport when Neil Armstrong came through – may be facing up to 10 years in prison and a $250,000 fine.
The airport employee allegedly helped Armstrong at the airport, but didn't properly file his form, which contained the astronaut's address, birth date and signature. Instead, the thief put the document up for sale on an auction website.
A bidder raised concerns and the bidding was stopped.
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Canada Post takes steps to stop mail theft -
In response to growing incidents of mail theft, Canada Post is replacing 620,000 mailbox locks across the country. The agency will also be replacing certain mailboxes entirely, and fortifying others.
As reported in the Waterloo Record, Canada Post's mailbox redesign began over a year ago and will be implemented across the country. Old mailboxes, and those in high-risk areas, are being replaced.
It's all an effort to curb mail theft, a growing crime across Canada.
While mail theft is a criminal offence, Canada Post communications manager Martine Lépine points out, it becomes even more serious when those stealing the mail use the information to facilitate fraud, identity theft and related crimes.
“By fortifying our mailboxes, we not only protect the mail, but we also prevent other criminal activities and help support community safety,” Lépine is quoted in the article.
There has been a recent wave of mail theft in the Waterloo area. Police are warning residents not to send financial or personal information through neighbourhood mailboxes. It is much more secure to send mail through central post offices.
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Hospital loses files on 800,000 patients -
The identities of 14 years' worth of patients are now at risk, thanks to a massive loss of data from the South Shore Hospital in Massachusetts.
According to The Boston Herald, personal files belonging to more than 800,000 former patients went missing en route from the hospital to a data management company hired to destroy the electronic files.
The article reports that the personal files included “the whole enchilada”: full names, addresses, phone numbers, dates of birth, Social Security and driver’s licence numbers, and medical records containing health information, diagnoses and treatments. Bank and credit card numbers may also have been in some files.
The data was saved in an outdated computer format.
The hospital sent the files for destruction in February; when they still hadn't received notice the task was completed by June, they looked into the situation.
South Shore Hospital intends to notify affected former patients “in the next few weeks.”
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Police can't keep up with organized crime, technology -
A new report from the House of Commons reveals Canadian police forces are falling behind in their quest to quash organized crime in this country.
According to a story in the Vancouver Sun, criminal groups are becoming increasingly sophisticated in their abilities to carry out their activities and cover their tracks. With the latest communication devices and top technology, savvy criminals are able to spread their activities across multiple borders and move and hide their assets.
Unfortunately, police say they can't keep up, as they're bogged down by old technology, bureaucracy and legal tangles.
There are now over 900 recognized organized crime groups in Canada; their key crimes are drug trafficking, identity theft, mortgage fraud and counterfeiting.
“Many organizations have become more sophisticated in that they compartmentalize their operations and expand over a number of countries,” Mike Cabana, assistant commissioner of the RCMP’s federal and international operations in Ottawa, is quoted in the story.
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Toronto lawyer victim of ID theft -
After 36 years as a real estate and family lawyer, Jack Lambert has an established reputation in the Toronto law community. And he's the only lawyer in Ontario with that name.
But recently, according to The Star, Lambert has been receiving call about cases he's never heard of or been involved in. Apparently there's an imposter Jack Lambert on the loose.
“All I know is that he’s saying he is a lawyer, that he is named Jack Lambert, and he is apparently duping people to pay him money for legal services when he is not a lawyer,” Lambert is quoted in the article.
The real Lambert has filed a police report; there's little more he can do about the situation. It's left him stressed out and confused. He has no idea how or why he's been targeted – and is concerned about the ramifications for his career.
“My name is everything as a lawyer. I value my name and reputation,” he tells The Star.
The real Lambert works for the firm Irving Solnik Professional Corporation.
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Gas station credit card scam exposed -
The southeastern U.S. has been plagued by an ongoing credit card scam, the seriousness of which is only just now being discovered.
As reported on ComputerWorld.com, law enforcement officials have found at least three credit-card skimming devices installed on gas pumps. They've widened their investigation and fully expect to find more.
According to the article, “The (U.S.) Secret Service has indicated there's a crime wave throughout the Southeast involving the gas-station pump card skimmers, and it may be traced back to a single gang that may be working out of Miami.”
These particular card skimmers are installed on gas pumps, and copy credit card information as the customer pays for their gas. The skimmers have Bluetooth wireless capability and can easily transmit the details to thieves.
Authorities have no idea how many credit cards have been stolen this way.
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Survey says: Canadians aware of ID theft, but do not protect themselves -
According to a new Ipsos Reid survey, almost all Canadians (97%) are aware of identity theft – and 60% believe it will likely happen to them.
In spite of these dramatic statistics, most Canadians still aren't taking proactive measures to protect themselves, their identities and their financial futures.
“While 72% of Canadians say they have taken steps to protect themselves, the variety of means cited as to how they are actually doing it is limited,” said Mark Wilkins, vice-president, Ipsos Reid about the poll results.
“The destruction or shredding of hard copy documents is the step most often mentioned, which leaves many identity theft risks unaddressed like computer hacking, unsafe social networking or organizations losing confidential data.”
The survey was conducted on behalf of ProtectionPower.ca.
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Beware black market travel agents -
Thirty-eight travel agents from across the US have recently been charged with fraud. Their scheme? Buying travel tickets using false identities, then reselling the trips and packages at deeply discounted prices.
As reported on DataBreaches.net: “(The) 38 defendants used stolen credit and debit card information from thousands of identity theft victims to purchase tickets, which they sold to their customers at a steep discount,” stated Beth Phillips, United States Attorney for the Western District of Missouri. “These separate criminal conspiracies resulted in an estimated total loss of more than $20 million to numerous domestic airline companies, financial institutions, other merchants and cardholders.”
The “travel agents” used different methods to gather the information of the identity theft victim: some identities were purchased online, from the international black market; others were stolen from hotels, banks and customer call centres.
The agents would purchase tickets close to the time of departure, in order to reduce the risk of the fraud being detected. It is alleged that a number of the customers who bought the cheap tickets were aware they weren't purchased legitimately.
The true victims, therefore, were those who suffered the identity theft.
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Nanaimo ring busted for drugs, ID theft -
Nanaimo police raided the headquarters of a suspected identity theft ring and found what they were looking for – and more.
According to The Province, the police search turned up stolen computers, hard drives, UBS keys and blank VISA cards – all used for identity theft – and a substantial stash of drugs, including methamphetamine and four litres of GHB (also known as the date-rape drug).
The thieves are suspected to be linked with a series of break-ins at banks in Nanaimo's north end.
"This investigation is still active and more charges could be laid at a later date," RCMP spokesman Const. Gary O'Brien is quoted as saying. "The quantity of suspected GHB found is alarming and samples have been forwarded to the RCMP forensics lab for analysis."
A 26-year-old man has been charged in the case; three others are under investigation.
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Caregiver accused of identity theft – again -
A 30-year-old Detroit woman has been accused of identity theft for the second time this year – with the same victim.
As reported by The Detroit News, Julia Robinson was a caregiver for a 99-year-old elderly woman. During her employment, she tried repeatedly to use the woman's personal identification to obtain credit cards.
According to the story, “Robinson previously pleaded guilty to obtaining and using credits cards for her benefit in February. She received a reduced charge and probation.” Robinson was arrested again last week after the police department received a new complaint on the matter.
As of writing, Robinson is in jail. facing two felony charges: one count of false statement of identity to obtain a financial transaction device (worth up to four years behind bars) and a second count of possession of personal information with intent to commit identify theft (a five-year felony).
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Mail theft 'easy': police -
Mail thieves don't need computer savvy; they don't need to watch you at ATM machines or even interact with you at all. They may simply walk up to your mailbox and help themselves to what's inside – and then they have everything they need to steal your identity.
Police are warning people that it's not just the high-tech and online worlds that are fraught with fraudsters (though they most certainly are). There are much simpler methods of identity theft to be wary of.
Sergeant Dan Bickers, a detective with the Floyd County Police Department (Indiana) puts it this way in a recent news article: “They just take the mail out of the box when no one is home. A lot of the victims don't even realize their mail was taken. They didn't know anything was gone.”
Bickers goes on to point out that mail theft requires no specialized skills, requires little effort and can provide a multitude of personal information – which is found on everything from credit card statements to medical bills to junk mail.
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B.C. hackers plead guilty to email fraud -
More than a dozen Newfoundlanders were among the victims of an email fraud scheme run by two hackers in British Columbia.
According to a story on CBC.ca, a 22-year-old male and a female young offender broke into personal MSN accounts. Once in, they would send fraudulent emails to their victims' friends and family, asking for money. The requests asked for funds to be sent to a bank account in B.C.
The scam even worked for a while! Newfoundlanders weren't the only ones caught up in the scheme – according to the story, Canadians across the country were defrauded out of more than $10,000.
The accused have pleaded guilty to the charges.
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Identity theft by mother shatters plans for education -
A 21-year-old Denver woman has been the victim of identity theft at the hands of her mother. Michele Gurule's mother used her Social Security Number to obtain at least five credit cards in her name, racking up huge bills and unpaid balances.
An article in The Denver Post tells the heartbreaking story.
As a result of her mother's actions, Gurule cannot get a credit card, a car loan, or rent an apartment without paying heavy additional fees.
“I'm in debt for thousands of dollars that I never knew about and had nothing to do with," Gurule is quoted in the article. "I've never seen my credit score, and don't want to. I'm too scared."
An increasing number of parents are using their child's identity to obtain extra credit to help with paying bills and covering costs. Most may intend to pay it back quickly – but often the situation gets out of hand.
Gurule, for example, desperately wants to study to be a nursing assistant. But she has already been rejected several times for a student loan.
"I'm never going to college," Gurule says. "They say I'm too much in debt and never paid the bills. This whole thing just squished everything."
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Edmonton identity theft ring busted -
Three men and three women have been arrested in Edmonton for stealing hundreds of identities. The identity theft ring was busted after a police raid on a house turned up counterfeiting equipment and hundreds of forged documents and cards.
In fact, according to a report in the Edmonton Journal, one man was apparently caught forging firearms possession and acquisitions cards when police arrived.
In the article, Cpl. Julie Macfarlane-Smith of the Edmonton commercial crime section says the group were engaged in a “mid-level step in fraud operations.” First, they would gather personal information by stealing mail, and wallets and picking through trash. Next, they would make new cards and documents in order to make purchases (obviously, in the case, some purchases of guns and ammunition) and obtain unauthorized loans.
Macfarlane-Smith goes on to say that identity theft is on the rise, and people should keep their social insurance cards and birth certificates in a safe place, not in their wallets. She said people should also shred all documents containing personal information before throwing them out.
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Personal data left exposed by government, companies -
It's not just sophisticated hackers you have to worry about when it comes to protecting your personal information online. As it turns out, a lot of data about you is being left exposed daily, through poor security practices by government and companies. Carelessness and laziness could be your worst enemies.
An article on the Wall Street Journal's website points out that, in many cases, “finding social-security and credit-card numbers or medical records on the Internet doesn't require computer expertise. Instead, such information is accessible to anyone who knows where to look.”
The article gives examples of files containing social security numbers and home phone numbers (and other information) being discovered online through simple search engine searches or peer-to-peer file sharing.
By doing a search of specific hospital names, one researcher was able to find health insurance and medical information for some individuals. Company databases have been accessed in a similar manner.
According to security experts quoted in the article, “In some instances employees just don't understand the value of the information they handle.”
This, of course, can lead to serious issues for the thousands of individuals whose personal data may be discovered.
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Medical identity thieves hit Cornwall, ON -
Medical identity theft – when identity thieves use a stolen identity to receive medical care or fill prescriptions – is a growing concern in Canada. In Cornwall, Ontario, police have received numerous complaints from citizens who have been telephoned by people claiming to be pharmacists. These “pharmacists” have asked for personal medical and other information.
The story, reported in the Seaway News, says medical identity thieves most often use the fraudulent patient information to bill a health plan for fake or inflated claims, use the fake identity to purchase prescription drugs, or get free treatment.
Police in Cornwall are publicly urging all residents to refrain from providing any personal, medical or prescription information over the phone.
If you are the victim of medical identity theft, your medical records may be altered substantially, and your medical insurance benefits may be capped. This may seriously affect your credit rating, as unpaid bills will remain on your credit report for years.
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'Smart' meters may leak private information -
Utility companies are starting to gather more information about their customers through 'smart' appliances and meters – and Canada's privacy commissioner is sounding the alarm bells.
On June 16, the commissioner, Ann Cavoukian, released a paper setting guidelines for utilities to use in keeping private information from leaking, reports the Toronto Star.
Cavoukian says it's important to get standards in place before utilities and other companies fully adopt the smart technology, which can keep real-time records of how much power is being used when, and by which applicances.
Cavoukian is concerned a smart electricity meter would, for example, let potential intruders know when you're not home. Data about appliance use gathered by the utility could also be sold to various marketing companies.
“This is all about control: Who gets control over the personal data?” Cavoukian is quoted in the article. “It’s your data, it’s not Toronto Hydro’s or Hydro One’s. You should be the person to decide how that data is used.”
“You should care, because you didn’t sign up for unwanted marketing efforts ... You don’t want more spam, you don’t want more people calling you.”
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Girl Scout leader charged with identity theft -
A New Jersey Girl Scout leader of has been charged with stealing the identities of two of the organization's volunteers.
According to a story on NJ.com, 30-year-old Kelly Willard (the leader of Daisy Troop 4366), was arrested for using the personal information of volunteers to apply for personal credit cards. She got the information from the application both women were asked to fill out before starting as volunteers with the organization.
Willard rang up thousands of dollars in purchases before she was arrested.
“This is a good investigation by one of our veterans,” said Police Chief Mark Spitzer is quoted in the article. “Scouting is all about promoting good citizenship, so we should all remember it is the actor who is accused of the crime, not the organization. But if something doesn’t seem right people shouldn’t hesitate to report it.”
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Credit reports help manage ID threats -
The Chicago Tribune calls it a “problem solver”: your credit report can help you manage, spot and stop identity theft.
“You can't always protect your belongings from being taken, but you can take steps to protect yourself against identity theft in case your wallet is stolen,” the article states.
The article starts with the story of Jean Santschi, whose purse was stolen from her in the grocery store. She was able to cancel and replace her credit cards fairly quickly – but not before the thief had rung up more than $1,000 in purchases. Worse, he had her Social Security Number. It took her months to clean up the entire mess.
In Canada, if you are the victim of identity theft, you can place a “fraud alert” on your credit profile. This will let potential credit grantors know that your identity has been compromised and may prevent further fraudulent charges on your report.
Checking your credit report regularly is also key to catching identity theft in the early stages. As the article states, “In many cases, victims don't even realize their identity has been stolen until mysterious charges show up on their credit card bills, or unpaid balances surface on their credit reports.”
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Email addresses of 100,000 iPad owners stolen -
Over 100,000 proud owners of the new Apple iPad have been victims of a security breach. The breach was actually through AT&T and affected those users who connected their iPad to the AT&T network.
According to a story on myce.com, the breach let to the theft of email addresses and SIM ICC-IDs (the iPad identification number required to authenticate the computer on the AT&T data network). The stolen email list allegedly includes email addresses of celebrities, politicians and high-placed business executives.
Because the problem is with a security script used by AT&T, the fault for the compromised data lies more with the telecommunications company than Apple.
“Another wildcard in this story is that the script used by the security group was provided to others, before AT&T fixed the issue,” the article continues. Due to this, it’s possible that many more email addresses could’ve been extracted, from unknown sources. This also puts all affected iPad owners at risk of being bombarded by massive amounts of spam or possibly malicious email messages.”
More than 2 million iPads have been sold since the product's launch in April.
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Privacy commissioner criticizes mortgage brokers -
Mortgage brokers in this country do not do enough to protect the personal information of their customers from abuse and theft, according to Canada's privacy commissioner.
The commissioner, Jennifer Stoddart, released her annual report June 8. it included a “special audit” of five mortgage brokers and their security measures.
According to a news report by Reuters, Stoddart found “significant vulnerabilities” in the tool mortgage brokers used to access personal credit reports. This particular web-based tool allows agents to download credit reports from hundreds of people – not just those who applied for a mortgage.
But that wasn't all.
“Other problems found included files of private information being stored in an unsecured parking garage, and an agent was using the reverse side of filled-out mortgage applications to print new ones for other people,” the article continues.
The brokerages have agreed to take the privacy commissioner's suggestions and make the required improvements to their security protocols.
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Job seekers, be careful -
The job hunt is tough enough without having to worry about scam artists out to steal your personal information. But, unfortunately, it's job seeker beware out there in today's competitive job market.
According to an article on the Chicago Tribune's website, “it's a bumper year for identity thieves who target job hunters.”
Scammers send unsolicited invitations to hopeful job hunters, asking them to complete applications for employment. The applications may ask for detailed information, including a driver's licence, passport, Social Insurance Number and so on.
The Better Business Bureau says don't do it. Never fill out an application if you can't verify the source company (you can look to the Better Business Bureau for assistance if you're not sure). And never put your driver's licence number or SIN on any application form.
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Fallen soldiers' identities used to write bad cheques -
Anger is rising as prosecutors prepare to file charges against three identity thieves who used the names of fallen soldiers to write bad cheques.
According to a story on Fox11 online, three American soldiers from Wisconsin were targeted in this latest case of identity theft.
For example, the name of Rachel Bosveld – the first soldier from the area to die in Iraq, in 2003 – was used by Tina Mitchem of Milwaukee to purchase hundreds of dollars in merchandise and gift cards.
Mitchem and two others are accused of fraud and are due in court later this month.
The story continues:
The mother of Rachel Bosveld, a soldier from Waupun, says she is appalled by the scam...
"It just opens old wounds makes them new again and it feels like it's a violation of some really good soldiers," Mary Bosveld said. "Their names were perfect and it feels like a violation of their very credible name and the job that they were doing."
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Man lived under false identity for 10 years -
For more than a decade, “Donald Fiedler” lived an apparently stable life near Montreal, maintaining a job and a modest home he shared with his live-in girlfriend. He might have continued indefinitely, had the “real” Donald Fiedler, 62, not decided to apply for a passport.
Fiedler's identity had been used for years by Peter Michael Filitz. Filitz pleaded guilty May 31 to stealing the name and using it to obtain Canadian passports in 1996, 2001 and 2006. He was sentenced to three months in jail and fined $1,500 for fraud.
As a story in the Globe and Mail reports, though, there is no proof Filitz is actually who he says he is.
Filitz told police he's originally from Germany, having entered Canada via Mexico in 1983. The RCMP have yet to find any information on Mr. Filitz.
Unlike most cases of identity theft, and fortunately for the real Donald Fiedler, Filitz did not use the stolen identity to steal money or credit. Fielder, who hasn't visited Montreal in some 30 years, still has no idea how the identity theft occurred.
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Privacy concerns lead to 'Quit Facebook Day' -
There has been a growing backlash against Facebook among individuals concerned about their personal privacy. Today has been dubbed “Quit Facebook Day” internationally, as thousands of users vow to delete their accounts in a statement against the social networking site.
The campaign was started by two Toronto residents after they attended a Facebook conference in 2009. They were concerned by both how long information stayed online and who was allowed to access (and keep records of) it.
"The real issue is how your information is being used and the idea of your virtual identity and who owns that," Joseph Dee, co-founder of QuitFacebookDay.com, is quoted in a story on CTV.ca.
Although Facebook recently announced a number of policy changes, Dee contends the same privacy concerns are valid.
CTV.ca also quotes Alfred Hermida, a journalism professor at the University of British Columbia. While Hermida agrees that Facebook's policy hasn't changed – their stance is “everything should still be public” – he says ultimately it's up to the users to keep their privacy intact.
"We're doing this to ourselves and have got to a point where we haven't quite realized how much of our privacy we've really let go," he says in the article.
For more on the campaign, visit QuitFacebookDay.com.
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50,000 UK tax packages sent to wrong homes -
Up to 50,000 U.K. residents were surprised to open their tax credit package to see the financial details of other individuals.
According to the U.K.'s Daily Mirror, claimants receiving their annual award notices were also given salary figures and bank numbers for other households.
Her Majesty's Revenue and Customs office blames a printing fault for the misdirected data. Some residents are understandably furious at the latest gaffe. Interest groups were quick to speak publicly. As the article continues:
Mark Wallace, of the TaxPayers' Alliance, said: "This could open up tens of thousands of people to the risk of fraud and identity theft. Heads must roll."
Big Brother Watch, which campaigns against intrusions of privacy, demanded action from the coalition Government.
Spokesman Dylan Sharpe said: "This latest error again highlights the dangers of databases and the slack approach to private data in our civil service."
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Beware identity theft while on vacation -
As a lot of Canada gets a first shot of true summer weather, it's time to think ahead to vacation plans. You may already have the car and hotel booked – but have you thought about what you're going to do to protect yourself from identity theft while you're away?
A Chicago Tribune blog entry has quite a few tips worth reviewing before you leave for that much-deserved time away. You may be at increased risk of identity theft while travelling, according to the writer.
"When you travel, your risk of exposure to fraud and identity theft may increase," the Privacy Rights Clearinghouse is quoted in the article. "It’s a fact that people tend to let their guard down while on vacation."
Tips include:
-Carry two credit cards with you – any more than this is risky; carrying only one leaves you without a back up if one is stolen, deactivated or compromised.
-Be very careful using public wireless connections.
-Do not share travel plans on Facebook or twitter.
See the article for more details. Although many of the tips are common sense, it's worth a quick read to remind yourself that a few minutes of preparation can save you a lot of pain down the road.
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Victims may not be informed of privacy breach -
Companies can decide when (and if) to let their customers know they've lost personal information, according to legislation recently tabled by the federal Conservatives. Once again, customers and consumers are left to monitor the stability of their own personally identifiable information.
The proposed legislation includes amendments to Canada's private sector privacy law.
According to a story in the Vancouver Sun, the new rules mean retailers, financial institutions and other companies must inform the federal privacy watchdog if they have been hacked or if they have experienced another type of data breach.
However, that same courtesy does not necessarily extend to the individuals who may be affected. The proposal, if accepted, will let the company in question decide if and when to inform customers of the issue.
Organizations are required to notify individuals "when the organization deems the breach to pose a real risk of significant harm, such as identity theft or fraud, or damage to reputation."
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Gym credit card theft leads to identity breach -
Let this serve as a lesson to us all, because this sort of thing is happening all the time.
Claire Hansen was arrested on Portland, Oregon this week on several instances of identity theft. Police caught up with her after she gained access to a downtown gym locker room and helped herself to credit card and identification belonging to a patron.
According to a story on Fox 12 Oregon, Hansen is also charged with stealing a number of other credit cards, which she used to purchase big-ticket items from high-end retail stores. Police also allege she broke into a car to steal another victim's purse and wallet.
The lesson here? Lock your locker at the gym and, if possible, leave your credit cards and valuable identification at home. And don't leave your wallet or purse in your car; it's just too tempting for the criminally inclined.
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World Cup lottery scam hits Canada -
The Stanley Cup playoffs aren't even over, but scam artists are already taking advantage of the excitement of the next big sporting competition. The World Cup starts June 11 in South Africa and the hype is building.
The Better Business Bureau has issued a warning to Canadians to watch out for a scam email inviting consumers to take part in a lottery. The lottery, according to a story on CBC.ca, is said to be sponsored by FIFA (the world soccer organization) and the Canadian and South African governments.
A PDF purporting to show the lottery prizes is attached to the email. The email encourages recipients to reveal personal information that could be used to access bank accounts or for identity theft.
The Better Business Bureau suggests anyone receiving the email – it looks to be official, with the big-name sponsors – delete it immediately.
"Just by opening (the PDF) you've got a real concern that you can expose your computer to malware viruses, and it can also lead to identity theft," Lynda Pasacreta, president and CEO of the BBB in British Columbia, is quoted in the story. “So these are getting kind of nasty.”
The BBB believes the scam originates in England.
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Caller ID spoofing used for fraud -
Caller ID spoofing cards have been on the market for a few years. Much like a calling card, the spoof card allows users to phone a number, but type in the digits they wants to show up on the other party's caller ID. Harmless fun? A helpful way to protect the caller's privacy?
Yes – but caller ID spoofing cards are used for more sinister applications as well.
According to a story in the National Post, ID spoofing cards have been used for obtaining bank account information, tricking people into revealing personal information, harassment and bullying.
The article quotes Shawn Hall, a spokesman for telecommunications company Telus. Hall says his company has received numerous complaints from clients who have been tricked by the spoofing technology.
"It has some legitimate uses, however, it can also be used for identity theft, for sexual harassment... We've seen incidences where people use it to harass an ex-spouse without having the number that they're calling from come up," he said in the article.
"We would certainly like to see some laws put in place that would protect our customers from this practice."
Unfortunately, these spoofing cards are legal, and enforcement of their proper use is difficult, if not impossible. Even Phonebusters, Canada's anti-fraud call centre, is far too understaffed to investigate these types of fraud.
Once again, it's user beware. Never give your personal information over the phone, no matter who you think is calling. A bank will never request you reveal account numbers or passwords in this way. Read more on identity theft prevention and learn to protect yourself.
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Survey: Older Canadians at risk of identity theft -
According to a new survey by Visa, 40% of older Canadians admit to unsafe behaviour that could put their personal and financial information at risk. The survey, as reported in British Columbia's Tri-City News, polled more than 1,000 Canadians over the age of 50.
The survey showed 16% of Canadians in the 50-plus age group have been the victim of payment card fraud, identity theft or a related crime. One in five of these victims did not tell a friend or family member about the incident.
“While they are clearly concerned about identity theft and 65% feel as though the problem of card fraud may be getting worse, the survey results tell us that older Canadians are needlessly putting themselves at risk of fraud,” says Gord Jamieson, head of payment system risk for Visa Canada.
Of particular concern:
-22% of senior have shared their PIN with others
-18% have lent a credit or debit card to a friend of family member
-7% keep a copy of their PIN in their wallet or purseAll of the above are no-nos in the world or privacy protection. Read more tips on identity theft protection.
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Massive mortgage fraud won't be probed -
In a surprising follow-up to a story posted here last week, RCMP now say they won't investigate the $120 mortgage fraud alleged by the Bank of Montreal. This could be the largest fraud of its type in Canada, yet police say they don't have the officers required to complete the investigation.
According to a story on CBC.ca, that response extends beyond major fraud cases. The article quotes former RCMP officer Chris Mathers, now a corporate crime consultant based in Toronto. Mathers isn't surprised the RCMP have declined probing the current case.
"There just aren't enough police officers to investigate these crimes,” he is quoted as saying. "If you double the number of investigators, you will just have double the number of crimes being investigated and still have a whole bunch stacked in a pile and waiting to go."
Mathers also wonders whether public money should be spent investigating such crimes, when it is the bank's lax policies that caused the problem in the first place.
"The banks are fighting tooth and nail with each other to get this kind of mortgage business ... They are cutting corners and so because they cut corners, they become victims of fraud."
Of course, if the banks become victims of fraud, their many customers are at risk of the same. It serves as a warning, once again, that it is not enough to rely on institutions to ensure the security of our personal and financial information. All consumers must stay vigilant and protect themselves.
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New technology boosts identity theft -
As reported in the Nanaimo Daily News, a recent police investigation on Vancouver Island turned up credit card numbers from South America. That's just the latest in a string of similar investigations; there have been three major “white-collar crime” busts in the city in five months.
The latest led to the dismantling of a major fake credit card factory. Earlier this year, police cracked a debit card fraud scheme. Crooks would steal and replace PIN pads in stores; a trailer was found with hundreds of fake credit cards and all the equipment necessary to make more.
"People that were traditionally invested in certain types of offences are branching into this. It's the new way of the future," Victoria-based RCMP Sgt. Andrew Cowan is quoted in the article. "It's high-reward and low-risk. It's going up and up."
Police say that identity, credit and payment card theft are also appealing to thieves as many victims can be targeted at once. Huge databases of valuable data can be moved around cyberspace with relative ease. For example, a single spreadsheet from a mobile fraud unit bust in Nanaimo potentially held $50,000 worth of information.
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Alberta 'top target' for mortgage fraud -
The Bank of Montreal recently filed a lawsuit alleging a $120 million mortgage fraud. The fraud, considered to be the largest in Canadian history, is alleged to have been conducted by bankers, lawyers, people posing as home buyers and more. The story garnered much attention across the country – but, according to an article in the Calgary Herald, it's only the latest in a long string of mortgage fraud in that province.
The story describes the most common method of mortgage fraud this way:
“Mortgage fraud typically involves using falsified documents to inflate the value of a home. The fraudster then takes the loan out in the name of a naive 'straw-buyer,' someone who receives a fee to sign for the mortgage. The true owner may rent the property, use it as a marijuana grow operation or simply default, leaving the duped mortgage holder to pay the remainder of the loan, which is often more than the actual value of the property. Banks also often take the financial hit.”
This has been going on for at least 20 years; Alberta's boom and bust economy makes it an especially hot place for such crimes. Although the province has examined new procedures that would watch for suspicious activity (such as frequently flipped houses), these have not yet been adopted.
These days, even the biggest banks in the country can be the unwitting victims of fraud. It's important to keep tabs on your credit report and credit activity at all time – catching fraud in the early stages can be your best defence.
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Facebook faults to correct now -
Social networkers are still putting themselves at risk.
According to a story in the Toronto Star, the number of households using Facebook and Twitter has doubled in the past year. But popularity does not equal security, as many of the social networkers are not taking the necessary steps to shield themselves from harassment or identity theft.
The article quotes a survey in the 2010 Consumer Reports, which notes, among other things, that 40% of users still post their full birth dates and 8% post their home addresses. As well, a full 26% posted pictures of children, captioned with their names, putting the young ones at risk of being targeted by identity thieves or predators.
Here are seven things to avoid while using Facebook or twitter:
-Using a weak password. Your password should be at least 8 characters long, and a mixture of letters, numbers and symbols.
-Listing your full birth date.
-Not setting privacy controls.
-Posting a child’s name in a caption or comment.
-Mentioning being on vacation or away from home.
-Being found by a search engine. )On the privacy controls, the search function should be “only friends,” not “public search.”)
-Letting children under 13 use Facebook unsupervised.
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Crooks steal credit card numbers from pub -
The owner of a restaurant and pub in Kansas has no idea how crooks broke into his system and stole credit card numbers belonging to himself, his relatives and his patrons. He is, however, left with a $30,000 (and counting) bill to clean up the security mess they left behind.
As reported in the Kansas City Star, Llyewlyn's Pub owner Eric Pritchett says, thanks to the incident, “we've had to go through a lot of pain… we're not done with it yet.”
The theft was discovered after patrons – and Pritchett himself – noticed suspicious charges on their credit cards from stores across the southern states. Fortunately, most of the charges were covered by the issuing credit card company, but Pritchett's on the hook for the expensive process of rebuilding his digital defences. Not only that, but his business reputation has suffered greatly.
“I may survive this,” he told the newspaper. “I may not.”
There are millions of breaches of personal information each year. Some are just a scare. Others, unfortunately, can mean major financial and personal loss for those involved. As the article continues:
“It’s a little like Russian roulette when your information is lost in one of these things,” said Evan Hendricks, the editor and publisher of Privacy Times. “Chances are nothing’s going to happen to you. But sometimes there’s a bullet in that chamber. If you get hit, it’s really going to hurt.”
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Identity theft from coast to coast -
Reports on mistaken identity, identity theft and bank fraud continue to surface on a daily basis. Here are just a few individual cases that made the news across the country this week:
A Surrey, British Columbia, resident was shocked to learn his identity had been stolen by a Montrealer. As reported on CBC.ca, the real Donald Fiedler didn't realize what had happened until his application for a passport was denied. It turns out that three passports had been already been issued in his name – all to an imposter.
Please, stop cancelling my health card! was the headline of a recent story in the Toronto Star. Teresa Lawrence of Toronto, Ontario has had her provincial health card cancelled several times in an ongoing case of mistaken identity. Last week, Lawrence (who is white, with long hair) received the latest version of her card: her name was misspelled and the picture was of an elderly woman of Asian decent, with short hair.
In Labrador, a woman believes her debit car was copied in her home town. As reported on CBC news, the culprit then used her debit card information to complete a wire transfer of $700.
And a finance columnist in the Toronto Star addresses the issue of senior identity theft, specifically as it relates to the case of an 82-year-old woman who signed a document allowing a company to access her tax documents. The company promised special deductions; the elderly woman's daughter isn't so sure they should be trusted.
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Arrests in Ontario credit fraud case -
Two suspects have been arrested and another two are wanted for their roles in an ongoing credit card fraud scheme in Whitby, Ontario. This is the fourth time in two months that Durham police have made arrests in credit or debit card schemes.
According to a story on CTV.ca, employees at a Toy R Us store started to suspect that fraudulent credit cards were being used to buy electronics in March.
During a search of a residence in nearby Markham, police found high-end electronic items and gift cards, all obtained fraudulently. The suspects are charged with fraud and possession of property obtained by crime and related crimes.
Other recent arrests for similar crimes in the area include:
-In early March, Durham police (working with OPP) arrested six Toronto residents for allegedly purchasing vehicles and other property using fraudulent credit cards obtained through identity theft.
-A police officer spotted ATM fraud equipment during a routine traffic stop and arrested two men from Toronto.
-In the same month, Durham police (and OPP) arrested six suspects in an ATM tampering scheme. These suspects also face fraud and identity-theft-related charges.
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Old computers put government services at risk -
Canada's auditor general, Sheila Fraser, says major federal government computer systems may be on verge of major failure. As reported by CTV.ca, computers in many departments – including Human Resources, Citizenship and Immigration and the Canada Revenue Agency – are horribly out of date.
Fraser worries that a computer failure may result in the permanent loss of information. Many of the computer systems date back to the 1980s and use customized programming no longer in common use.
Any data loss would likely hinder the government's ability to deliver tax returns or services such as EI. There are also security concerns – security breaches in such a system are less likely to be discovered in a timely manner if users do not fully understand the obsolete programming language.
“Even if the systems are currently working, a breakdown could have severe consequences. At worst, some government programs and services could no longer be delivered to Canadians,” Fraser told reporters at a press conference. “If some of these major systems fail I think the impact could be dramatic on people.”
Upgrading the computer systems will cost billions of dollars. Billions of dollars that must be spent, Fraser suggests, in the interest of the security and secure livelihood of many Canadians.
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12,000 reservists at risk of identity theft -
The U.S. Army is encouraging 12,000 ex-reservists – military and civilian personnel formerly based at Fort Totten – to check their credit records for signs of identity theft. As reported this week, the military cannot locate files containing thousands of personal records from the now defunct 77th Regional Readiness Command.
The files were discovered missing when a new command asked for an accounting of the old unit's records.
An email sent to the affected reservists (those that could be located) warned of “a possible loss of confidential or personally identifiable information … Since the whereabouts of these files are presently unknown, the possibility exists that soldiers’ and civilian employees’ information may have been compromised.”
The email also suggested recipients check their credit bureau reports as soon as possible, in an attempt to detect unusual activity which could be a sign of identity theft.
“I just don’t know what to expect,” said one reservist. “To be honest, I wouldn’t be surprised if they aren’t stored in a basement somewhere and they just haven’t found them … Hopefully nothing bad comes out of this and this is just some silly mistake.”
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Soccer parents fear identity theft -
Some Utah soccer parents fear their children's identities may be at risk. As reported on KSL.com, Utah Youth Soccer policy states that the organization's players must prove their age before stepping on to the pitch.
That part makes sense. What parents are worried about is the method by which the information is collected and stored. The soccer association scans birth certificates and saves the records in a database.
One mother quoted in the story sums up her concerns this way: "Not only to people who are interested in child identity theft, but also any Internet predators that could be looking for children's information online.”
The information is stored so that league officials or coaches can access it from a laptop in case a dispute should arise.
An identity theft expert with the State Attorney General's Office says the risks are too great. As the article continues:
Assistant Utah Attorney General Richard Hamp says it's important to weigh the risk of identity theft against the purpose for collecting and storing the data.
“It appears to me, the only legitimate purpose they're using it for is whether a couple of kids are cheating an age factor on a soccer game,” Hamp says. “To me, that risk just isn't worth it, to be collecting that kind of personal information.”
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Car shopping spree with stolen identity -
Wanted woman! Somsook Jasmin McCollum (her last known address is in Virginia) is suspected of going on an $80,000 luxury car shopping spree using another person's identity.
A story on Delaware Online details the theft. In December 2009, McCollum apparently obtained the social security number of an Oaklahoma woman. Using this SSN, McCollum was able to obtain the woman's entire credit report and a false licence.
Armed with all this information, the identity thief then went shopping. In a single day, McCollum purchased a $38,000 Audi, a Mercedes and a Range Rover. She opened credit cards in her victim's name; she also stole another woman's wallet.
All three of the vehicles have been recovered, though McCollum is still missing. She is wanted for “multiple auto theft and various fraud charges – including eight counts of possession of false government documents.”
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Study: Consumers uneasy about online security -
When it comes to overall security, today's consumers seem most concerned about identity theft and the unauthorized use of banking card information.
A semi-annual study by Unisys and reported in InfoSecurity, Americans name national security as their No. 1 security concern.
But coming in at a very close second in the security index is the fear of identity theft. The survey found 65% of respondents were “seriously concerned” about the possible unauthorized access or misuse of their personal information. According to the article, “Unisys noted a shift in attitudes from 'very' to 'extremely' concerned since its last index survey.”
Next on the list; 62% of respondents were “seriously concerned” about the security of their bank card details.
Also of note: the percentage of Americans who are worries about computer and Internet security issues has risen since Unisys began tracking. It now stands at 45%.
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Hospital employee charged with ID theft -
A former records clerk at St. Peter's Hospital in Albany County, New York, stands accused of stealing private patient information for his own use.
The story, published on Fox23News.com, states that Johnathan Harwood, 23, used patient information to open fraudulent credit cards in the patients' names. Harwood then used the credit cards to purchase items online.
Unfortunately for the identity thief, the jig was up when an item he purchased showed up at one of his victims' homes. After an investigation stretching over several months, police traced the fraudulent purchase back to Harwood.
Harwood has been charged with forgery, identity theft and criminal impersonation. To this point, investigators have only turned up three victims of Harwood's crime – but former patients of the hospital are encouraged to be extra vigilant.
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Pizza delivery driver arrested for ID theft -
A pizza delivery driver in California was recently arrested on suspicion of identity theft. As reported in The Ventura County Star, the 45-year-old driver is accused of copying a debit card that was used to pay for a pizza.
The driver made an imprint of the card at the door, then gave the customer a receipt.
That customer later went online and checked his bank account. He was alarmed to see the amount charged for the pizza was more than agreed to. Even worse, there were several other unusual transactions on the account. The customer called the local police.
The driver is in police custody; police said they also found credit card numbers in the driver's bedroom and in a vehicle that did not belong to him.
The lesson? Don't let your debit or credit card out of sight, and keep a close eye on your bank accounts for any sign of unusual activity.
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Identity thieves infiltrate another H&R Block -
Dozens of long-time customers at an H&R Block in the Bronx, New York, were in for a surprise after filing their annual tax claims. Some of the returns were rejected – because government files showed that the individuals had already filed claims. Or that someone else had filed in their names.
An article in The New York Times speaks to some of the victims, including Sharon Hawa, a disaster-relief worker with the Red Cross. According to the article, when Hawa went to have her taxes done she was told that someone had already filed her return electronically and claimed a refund of over $6,000.
The victims have now filed a class-action lawsuit, accusing the company of “failing to take steps to protect its customers' security.” They say they've been told at least 20 customers of the branch – and possibly many more – had been robbed by identity thieves. The likely suspects are H&R Block employees.
H&R Block is the biggest tax preparation company in the US, with more than 12,000 offices in that country. They are a large player in the Canadian market as well.
This is not the first case of a tax-preparation office identity theft. As previously reported, In February, two H&R Block employees in Indiana were charged with stealing the identities of at least 60 customers and coming away with at least $290,000.
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Car thieves now target ID, not stereos -
Car thieves are no longer targeting just your car stereo or purse. In an alarming new trend, certain car thieves have perfected a “discreet” form of car break-in and are stealing cards and identification – a theft that may not be noticed by the victim right away.
A report in California-based BakersfieldNow.com states that thieves are now using the keyholes on car door handles to punch out the entire lock. Apparently, this is easier in many new-model cars than ever before. A punched-out locks is more difficult to notice – even for the car owner – than a broken window.
"Some of the younger burglars will take the car stereos because they know they have a market for them," Sgt. Mary DeGeare with Bakersfield police states in the article. "But the experienced car burglars know they can come in and get as much as they can from your debit cards, credit cards and chequebooks."
And if the thief steals the victim's identity – and not more obvious physical property – that victim may not pick up on the crime for hours. In that time, the thief may make a good head start on using the personal information.
The article continues:
Police say areas like grocery stores and shopping plazas are common areas where this type of crime occurs but also add that parking lots of gyms are also a hotbed for these burglaries.
"They know they have an hour, at least an hour, to break into the car, steal the debit card, the credit card, and the cheques," DeGeare said.
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ID theft's most common victims are … -
According to a new survey by Javelin Research, the most common victims of identity theft are those between the ages of 18 and 24. Clark Howard wrote about the study in his regular CNN blog.
The findings took Howard by surprise, as they would many people. identity thieves may not always aim for those with the largest incomes or at the height of their careers. Youth are attractive targets, Howard writes, for a number of reasons:
“People in that age range (18-24) are so digitally oriented. They put the details of their life out on the Web repeatedly, without any real safeguards. And because people in that age group tend to move a lot, tend to be in different career and education settings, they lose track of the fact that somebody may have seized their identity.”
The same survey showed that it may take people between 18 and 24 almost three times longer to figure out they've been a victim of identity theft than someone who is a decade older.
Howard warns young adults to take a few extra safeguards:-Be careful what details about yourself you post on Facebook
-Monitor your online banking accounts regularly
-Balance your cheque book once a month
Note that these habits can and should be adopted by everyone – not just the youth of today.
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'Breast implant bandit' jailed for ID theft -
You just never know when an identity thief will strike, or what that thief plans to do with your personal data.
A 30-year-old California woman has landed in jail for using another woman's identity to get breast implants. According to a story on NineNews, Yvonne Pampellonne used a fake identity to obtain a line of credit at a cosmetic surgery centre.
The 'Breast implant bandit,” as she is now called, received six months of jail time this week after pleading guilty to burglary, grand theft and identity theft.
Pampellonne rang up $13,000 in cosmetic surgery bills for procedures including liposuction and the replacement of her old breast implants with new ones.
She was caught after staff at the plastic surgery clinic she used became suspicious when she did not return for follow-up treatments. According to the article, police were able to track Pampellonne down by using serial numbers found on the old implants that had been removed.
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ID theft affects 3.3 million students -
A company in charge of processing millions of student loans in the United States suffered a major theft last week. A story in the Minneapolis-St. Paul, Minnesota Star Tribune says the “personally identifiable information” of 3.3 million students was affected.
The break-in happened at the Oakdale headquarters of ECMC (Educational Credit Management Corp.) and may be one of the largest cases of student identity theft in the United States to date. “Portable media,” thought to be computer disks, containing the information were taken.
The stolen data includes names, addresses, dates of birth and Social Security Numbers. It is not known if any of the information has been misused to this point.
Richard Boyle, president and CEO of ECMC (a non-profit), said in the statement: "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."
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Five tips to avoid digital identity theft -
The Globe and Mail marks fraud prevention month, in part, with an article listing five important ways you can help reduce the chances of falling victim to digital identity theft.
As the article states, “organized international cybergangs” take advantage of stolen identities quickly and stealthily – and before you or the authorities can react.
The Globe's list of five tips to protect yourself are:- Shred it. Shred all garbage, bills, statements and other important documents before you toss them out.
- Be suspicious. If an offer seems to good to be true, it is. If a credit card shows up in your mailbox, cut it up and call the company. If you don't recognize an email address, don't open the attachment. You get the picture.
- Never volunteer. As is don't voluntarily give out personal information.
- Be vigilant. Know when and how you use your credit and debit cards and make sure your statements match your activities.
- PC check up. Viruses and spyware can slow down your computer or cause it to act differently. If you notice changes in your computer's behaviour, get it checked out.
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E-passports on the way; security concerns voiced -
Potentially starting as soon as 2011, Canadians who apply for passports will receive new “e-passports.” The documents will include chips containing personal information – name, gender, date of birth – and digital images. The Canadian passport office touts the new passports as a solid advance in security and fraud protection.
But according to a story in the Montreal Gazette, some security experts are concerned about “privacy, identity theft, misidentification and the growth of government surveillance of citizens.”
A professor in the Faculty of Information at the University of Toronto, Andrew Clement, is one of those who expresses concern. He is quoted as saying full assurance "would require a thorough, expert and independent assessment with public reporting of all but the necessarily confidential aspects. As far as I know, nothing close to this has been done."
The e-passports will be valid for 10 years, not five as is the case with today's traditional passports. The article continues:
As it stands, the only biometric element on the "proximity contactless chip" embedded in the e-passport's back cover will be the holder's photo.
That will let border authorities use facial recognition technology to compare the photo on the chip to watchlists of known terrorists and criminals.
Passport Canada touts this as a security enhancement. But facial recognition technology isn't accurate enough to be used for "one-to-many" matching, said the U of T's Clement.
"There will be higher numbers of wrongful matches, which could be inconveniencing -- or worse -- for the people involved," he said, adding: "The passport office should provide some real evidence that it would work."
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Burlington, Ont. the riskiest online city in Canada -
According to a story on CTV.ca, Burlington, Ontario, is the riskiest city in Canada from which to go online.
The article quotes a recently released study by an Internet security firm. The study found that wealthy suburbs topped the list of the most dangerous places in Canada for on-line use. While Burlington (a Toronto-area community) took the top place, Port Coquitlam and Langley (both suburbs of Vancouver) weren't far behind for second and third.
The study showed a trend: affluent areas seem to have higher rates of Internet use and thus seem to attract more on-line scams, malware, spam and identity theft. The lesson? Everyone must be diligent.
The article goes on to quote the most recent cybercrime statistics:
The U.S.-based Internet Crime Complaint Centre said recently that losses from cyber crime and online scams more than doubled in 2009 to US$559 million, citing increasingly sophisticated techniques being used by Internet fraudsters.
In January 2008, a survey by the Canadian Association of Police Boards found that 49 per cent of Canadians had been the victim of some kind of cyber crime, from computer viruses to identity theft.
And the Canadian Council of Better Business Bureaus has estimated that identity theft costs consumers, banks, credit card firms and stores $2 billion annually.
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Identity thieves charged in Nova Scotia -
A couple were picked up in Nova Scotia this week, for a combined 57 counts of identity theft.
Halifax's Chronicle-Herald reports that Benoit LeMaire of Verdun, Quebec, and Jennifer Louise Perrault of Oshawa, Ontario, were picked up after local police were called to two Dartmouth banks about suspicious activity.
LeMaire was charged with 46 counts of identity theft, possession of identity information for fraudulent purposes, false pretences, possession of forged documents and uttering forged documents. Perrault was hit with 11 counts of ID theft, uttering forged documents, fraud by other means and breach of probation.
This proved a positive sign for east coast consumers. According to a Halifax police news release quoted in the article, “the identity theft charges were laid under new provisions of the Criminal Code introduced in January … Police say they're the the first charges in Nova Scotia under those new provisions.”
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House of Commons sends T4s to wrong addresses -
The federal government sent 697 T4s to the wrong homes, according to a new story in The Montreal Gazette. The error has led to fears of privacy invasion and identity theft.
The glitch affected former staffers of members of Parliament. The one-time employees received T4s belonging to someone else. The T4s would have included personal information including social insurance numbers, employee earnings and other personal information that could potentially be used to apply for credit and/or to steal someone's identity.
An internal probe has been launched by the House of Common in the wake of the mistake. It is being referred to as an “administrative error” likely caused when lists of former employees were incorrectly merged with addresses prior to the mail out. A special hotline has also been set up by the house of Commons for employess who may have been affected by the mixup.
"It was an inadvertent human error," government house leader Jay Hill is quoted in the article. "I often wonder when people sit and stare at these computer screens all day why there aren't a lot more errors like this."
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Man wanted on 137 ID theft-related warrants -
Edmonton police say they've issued 137 warrants for one man who has been linked to an identity theft operation dating back to 2009. Another man, already in custody, has been charged on 117 counts related to the same operation.
The story, as reported on CTV.ca, states that a vehicle search in June 2009 led to the discovery of a large number of credit and debit cards, banking details and other personal information.
The next day, police searched a rental storage facility in Edmonton and discovered hundreds more cards, banking documents, a laptop, cell phones, lottery tickets, flash drives and more.
The police believe the items were stolen from homes, businesses, gym lockers and vehicles in Edmonton and surrounding areas.
The man in custody, Ryan Stuart Johnson, 29, was charged in July of 2009 after the items were seized.
Police believe the other man involved, David Shawn Tidman, 25, is at large in Alberta.
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Six Ontario men face 200 charges of ID theft -
The Ontario Provincial Police and Durham Regional Police have arrested six men and potentially cracked a larger identity theft ring.
As CTV.ca reports, the men are suspected of purchasing vehicles and other valuable property using fraudulent credit cards obtained through identity theft.
More then 200 charges have been laid, according to Durham police.
According to the story, three of the men are from Toronto and three from Ajax. The crime ring itself, in operation for more than a decade, reportedly moved from British Columbia to Toronto.
This is how they operated:-The ring obtained credit histories and then credit cards under the names of real and fictitious persons, using information obtained through identity theft
-The information was mailed to post office boxes across the Greater Toronto Area and the suspects would use the information and cards to purchase products and services
-The credit card information and history of dozens of real victims were stolen and then used. The dozens of victims are from across Canada
-The thieves maintained the accounts by making small purchases and small payments for months or years. Occasional requests for credit limit increases were met. Once the credit limits were high enough, the credit would be drained by cash advances at ATMs.
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Two big scams to watch out for -
Police in the Waterloo, Ontario area are speaking out about different types of fraud. In particular, they focus on two primary types of identity theft-related crimes: the “overpayment scam” and the “phishing scam.”
“People need to be careful and use common sense,” Waterloo Regional Police Staff Sgt. Dale Roe said in an article in the Waterloo Record. “They need to take a second to think ‘does this sound right?’”
The overpayment scam: the victim posts an item for sale online. The fraudster sends the victim a cheque for considerably more than the asking price. When the victim calls the “buyer” to report the mistake, the buyer asks the victim to cash the cheque and wire the difference back. Problem is, the cheque is bad and the extra funds come straight out of the victim's account.
The phishing scam: identity thieves use replica emails to fish for personal information. This time of year, a high number of these scam emails appear to come from the Canada Revenue Agency. The email may state that you are entitled to a refund – if you send along your Social Insurance Number.
Once the fraudster has your personal details, he or she can use it to apply for credit cards or a line of credit.
The article continues:
While it may be difficult to tell if you’re being taken by a thief, Roe said there are two warning flags to watch out for — when someone asks that money be wired or that it be sent out of the country. This makes the fraud difficult to trace.
Roe said the Internet has provided an “easier avenue for bad guys to approach victims,” and makes the police investigation more difficult.
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Sophisticated debit card scam hits N.B. -
A recent story in New Brunswick's Telegraph-Journal examines a recent debit card scam that has affected about 200 BMO customers in the western New Brunswick area. According to the story, at least one automatic teller machine was tampered with.
A spokesperson from Toronto Dominion bank in the area confirmed that all banks had been affected.
Terry Keighley, a retired RCMP officer and expert in identity theft and fraud, is quoted in the article. Keighley says identity theft gangs set up fake card readers (“skimmers”) on machines across the country. The readers capture information from the magnetic strip on the card, and from a small camera that records a customer as he/she enters a PIN.
Keighley says the scammers are savvy about how they work; they rarely clean out bank accounts in one swoop.
The article continues:
"They're usually going to start with $100 and they get that no problem and they can see the balance," Keighley said. "Then they know what they can go in and get”...
Keighley said there are gangs in Toronto that drive around in vans armed with skimming technology and blank debit cards. Within an hour of stealing the data, they can produce a fake card.
He said the volume is overwhelming. "So many that they can't be investigated," said Keighley.
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Hotels 'easy targets' for cybercriminals -
Certain online security firms consider hotels hackers' No. 1 target, reports USA Today. The report comes after news broke that Wyndham Hotels had been hacked, and customer credit card information stolen. This was the hotel chain's third breach in 12 months.
According to Nicholas Percoco, an online security expert quoted in the article, hotel hacking is a relatively new trend. However, in a study of 218 breach investigations across 24 countries in 2009, hotels accounted for about 70 of them.
Percoco believes that, sometime in late 2008, a fairly sophisticated group hacked into a single hotel and they identified it as an easy system to extract information from.
"The group doing this crime happened upon hotels and said this is easy," he is quoted in the article. "They figured that (individual) hotels are smaller in general and don't have dedicated IT staff. What they learned from that one attack they (repeated) as many times as possible over the course of 2009."
The article continues:
Hotels - with stretched staff and computer systems that vary by individual hotel - aren't always watching their network carefully, Percoco said. That makes it relatively easy for hackers to gain access into one computer, and then use it as a doorway into a chain's central system.
The cybercriminals have also had success staying undetected for months at a time once they hack into a hotel's system, Percoco said. The average breach last year wasn't discovered for an average of 156 days.
"They were looking at people's data for five months on average, and no one knew about it," he said.
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Older Canadians at risk of ID theft -
Visa Canada recently released a new survey that reports 40 per cent of older Canadians “admit to unsafe behaviours that put their personal financial information at risk to criminal and data thieves.”
The survey polled over 1000 Canadians over the age of 50. It asked about personal habits and examined the steps seniors – and all Canadians – can take to protect themselves from identity theft and payment card fraud. The results demonstrate that 16 per cent of Canadians in the over-50 group have been the victim of payment card fraud, identity theft or a related crime since their 50th birthday.
Of those, one in five didn't ever discuss the fraud with anyone.
Other results:
-22 per cent of seniors have shared their PIN
-18 per cent have lent their credit or debit card to someone else
-7 per cent keep a written record of their PIN in their wallet
These habits all open the door to identity theft.
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House fraud: how it could happen to you -
It seems almost impossible to imagine, but one rising identity scam has criminals actually scheming to snatch your house away from you – while you're still living there! And you might not find about about it for months or even years – maybe not until you try to sell you house.
In Canada, real estate fraud can cost victims an average of $300,000.
According to a story on househunting.ca, here's how it can happen:
A fraudster will typically do one of the following:
-Forge the property transfer deed;
-Register the title to the property in his or her name;
-Forge a discharge of the home's existing mortgage and then borrow against clear title.
It's always important to keep an eye on your credit report for signs of unusual activity; if you get a call from your mortgage broker or a collections agency out of the blue, always take that call seriously.
Visit our Videos page and watch 'The Bonnie & Clyde of Mortgage Fraud' for more information about this horrible, and expensive, crime.
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Child identity theft doubles -
The Federal Trade Commission says child identity theft in the United States doubled between 2006 and 2008 – and expects the rates to double yet again in 2010. In 2008, 21,344 cases were reported.
Rates in Canada are generally found to rise consistent with those of our neighbours to the south.
According to a story on Florida-based HighlandsToday.com, child identity theft is quite often perpetrated by a family member or someone known to the family – but it can also be the work of strangers.
“Children are often easy targets because thieves get an eight-to 10-year head start on them. In fact, most children who have had their identities stolen are not aware of it until they apply for credit, college, or employment,” the article states. “Some of these child identity theft cases involve split families where one of the parents is the perpetrator with the crime being exposed by the other, unoffending parent.”
The theft is often discovered in one of a few key ways: when trying to open a bank account for the child; when pre-approved credit offers, credit cards or bank statements bearing the name of the child arrive in the mail; when collections agencies call, looking for the child; when the child is turned down for a credit card or driver's licence; or when the child is the subject of a police investigation or arrest warrant.
If you believe your child is the victim of identity theft, it is important to file a police report and contact the two credit reporting agencies in Canada, TransUnion and Equifax.
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Gangs moving to identity theft -
Identity theft was once the domain of low-level scammers, small-time crooks who turned to the non-violent crime to make a few bucks. But identity theft can be lucrative for those who are successful – a fact not lost on big-time crime organizations.
NBCMiami.com reports: “Identity theft was found right along with gun running and drug trafficking in Fort Lauderdale's year-long undercover investigation 'Operation Smoking Gun,' an effort that lead to the arrest Thursday of 87 alleged gang members and more expected soon.”
The undercover operation didn't start out looking for identity theft; officers were surprised to find “identity theft instruments” (including hundreds of names and stolen identities) as they discovered firearms, prescription pills, cocaine, counterfeit money and other drugs.
While federal investigators are ramping up awareness and enforcement around identity theft, they admit the crime is extremely widespread and difficult to tackle.
The article continues:
Police say fast food restaurants have become hot spots for one scam in which credit cards are secretly swiped and recorded, then the data is sold for $5 or $10 each to bigger syndicates.
"You have people,” US Attorney Jeff Sloman said, “prior convicted felons who realize that it may be easier to make money stealing somebody's identity and banging out credit cards than it is going in and holding up a 7-11. And that's unfortunately the sad postscript to all this."
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Louisiana man given 300 years for ID theft scheme -
Robert Thompson's identity theft and bribery scheme earned him more than three centuries in prison.
According to a story in All Headline News, Thompson (also known as John Lawson) was sentenced to 309 years for “leading a conspiracy to use confidential financial information of over 60 individuals, businesses, churches and financial institutions to steal money and goods.”
It's a sign of the times: identity theft is finally beginning to be recognized as a serious crime. Thompson's major sentence may be the longest ever handed down to a white collar criminal in the history of the Middle District of Louisiana.
Thompson, 43 and a native of Louisiana, began his scheme in June 2006. It included an effort to steal $20 million from one victim and also led him to bribe a prison guard with $10,000 in return for cell phones he's used to commit crime.
According to the story, “Thompson was indicted in 2008 along with 10 other people for identity theft. He pleaded guilty a year later to charges of conspiracy, wire fraud, mail fraud, bank fraud, computer fraud, access device fraud, aggravated identity theft, money laundering, and obstruction of justice.”
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Tax preparer accused of ID theft -
Here's a scary story for tax time: almost 30 customers have accused an Indiana Harbor tax preparation office of identity theft.
A recent story in the Times of Northwest Indiana outlines the charges. All of the recent victims filed similar complaints with police: that others had submitted 2009 tax returns using their own Social Security numbers.
“After electronically filing tax returns through the Main Street office,” the article states, “the victim was notified that the IRS had rejected the return because someone had already filed using the person's Social Security number.”
The East Chicago police and the Internal Revenue Service are investigating the cases. A majority of the complaints name an H&R Block office at 3932 Main St., Indiana Harbour, near Chicago. The H&R Block head office for the region is also investigating the situation.
While it is necessary to submit a Social Security Number (or, as is the case in Canada, a Social Insurance Number) with your tax return, do be careful who you are giving this information to. An ID monitoring service can help keep track of your SIN and will alert you if it is discovered online.
As well, credit monitoring is a great way to find out if someone else is using your personal information before it's too late – and, ideally, before the tax agencies come looking for you.
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Identity fraud at an all-time high -
According to Javelin Strategy & Research's 2010 identity fraud survey report, identity fraud levels in 2009 showed their sharpest increase yet.
Javelin's research determined that the number of identity fraud victims in the United States jumped by 12 per cent last year, to 11.1 million adults. That's the highest increase since the survey started in 2003.
The overall fraud amount increased by 12.5 per cent to $54 billion.
The survey is the U.S.'s longest-running study of identity fraud. The findings point to increasingly sophisticated criminal activity and methods of obtaining personal information. The economic downturn is partially to blame for the rise in identity theft.
Some more findings of the survey:
-Identity fraud continues its upward climb. According to the report, 4.8 per cent of the U.S. population was affected by identity fraud in 2009.
-While existing card fraud increased to 2.76 per cent compared to 2.53 per cent last year, it is being resolved quickly with the support of financial institutions, businesses, and government. Non-card fraud involving checking accounts and utility accounts, however, is on the upswing. Non-card fraud is often committed by known perpetrators or through nefarious software, and has much longer detection times than existing card fraud. Such fraud results in higher out-of-pocket consumer costs and much longer detection times of up to one year or more.
-The number of fraudulent new credit card accounts valid anywhere increased to 39 per cent, up from 33 per
cent in 2008. New fraudulently-opened Internet accounts more than doubled over the previous year.
-When consumers discover fraud through electronic monitoring, they typically spend less time and money to recover. The study revealed that when consumers wait to find fraud on paper statements, they incur a higher out-of-pocket cost to recover and it takes longer to detect - $274 and 39 days vs. $116 and 30 days for discovering fraud through electronic monitoring. However,
-New mobile phone accounts accounted for 29 per cent of fraudulent new accounts opened in 2009.
-Consumers aged 18-24 suffered the highest account misuse through social networking.
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Criminals target Canada Post mailboxes -
A crime spree in Nanaimo, BC, has left residents without their mail and in danger of identity theft.
According to a story in the Nanaimo News Bulletin, mail thieves recently targeted a number of mailboxes in super box sites.
The crimes occurred on Feb. 7 and 8. It's not the first time! Similar crimes were carried out in the area in January 2010, and remain unsolved to this point.
The thieves cleaned out the boxes, taking everything they could find inside and disrupting mail service.
The article continues:
Canada Post estimates repairing the damage will cost from $100 to $1,000 at each site and mail delivery will be interrupted to those customers until repairs are made.
(Const. Sue Phillips, Nanaimo RCMP spokeswoman )said the culprits are likely looking for cheques and cash – mailed in letters and birthday cards – credit cards and any identification that could be used for identity theft.
Phillips noted the thefts in Nanaimo happened in daylight.
“So we’re really hoping somebody saw something because this is costing Canada Post and the taxpayers an incredible amount of money,” she said.
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Office copiers 'goldmine' for ID thieves -
Office copiers could be unwitting accomplices for identity thieves. Your doctor, lawyer, accountant or employer may be basically giving away your most private information, simply by making copies.
A recent story on CBS news reported on this overlooked facet of identity theft.
“The copy machine is an important and seemingly harmless part of our lives,” the story states. “And when it's time to upgrade, the old ones are sometimes sent to e-waste centres for recycling, but usually they wind up in a wholesale warehouse on the used copier market.”
According to the report, a used copier can hold electronic versions of up to 20,000 documents. Most of today's copiers store every document that has been scanned for printing, faxing or emailing. And if the copier owner doesn't think to erase the hard drive before tossing the machine, that information remains there for the taking.
Stored files may include financial statements, budgets, tax information, medical files, government applications and on and on.
The article continues:
"It basically becomes an identity thief's dream" says Sean O'Leary. He's the senior analyst for Digital Copier Security. He says laws that prevent the release of private information aren't being enforced when it comes to copier data …
Right now, no one has a legal responsibility to wipe copier drives clean of potentially damaging data. Warehouses all over America are full of used copy machines containing millions of files just waiting to be mined by unscrupulous criminal profiteers.
Even more worrisome is that an estimated 70 percent of these machines will ultimately land overseas in China, Europe, everywhere. And data-filled hard drives that are salvaged from machines sent to E-waste recyclers; many will wind up for sale online.
"[It's an] issue that's going to have major ramifications. It's going to hit like a ton of bricks when it does hit" warns O'Leary.
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Credit card applications stolen -
The London Free Press reports that 80 credit card applications were stolen Jan. 18 from a car parked at the Cherryhill Mall in London, Ontario.
Police warn that all applicants are in danger of falling victim to identity theft after the crime.
"Identity theft could be a possibility," the article quotes Const. Amy Phillipo. "It's their personal information that's on these forms." Two purses were stolen that same day; the crimes may or may not be related.
Anyone who may have filled out a credit card application around that time should take note of the information below and contact BMO Bank of Montreal for more information. The article states:
The applications were collected at three events:
BMO Canadian Figure Skating Championships, at the John Labatt Centre, Jan. 14-16.
Commissioners Rd. and Highbury Ave. BMO branch MasterCard kiosk, Jan. 12-13.
CPT Racing held at the Western Fair Agriplex Jan. 16-17.
Victims of this or any such crime should be extra vigilant in monitoring their credit reports, bank statements and credit card details.
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Canadians increasingly concerned about identity theft -
Ekos research recently conducted a poll of behalf of Canada's Privacy Commissioner. Among other things, researchers asked Canadians if they've ever been victimized by identity theft. While a majority of Canadians have, fortunately, not yet experienced identity theft first-hand, they are increasingly aware of the dangers.
The survey results demonstrate the rising concerns about identity crimes:-1 in 6 Canadians (16%) have been hit by identity theft
-1 in 5 Canadians (21%) earning over $100,000 have been hit by identity theft
-Almost half (49%) of Canadians are “very concerned” about identity theft and 44% are “somewhat concerned”
-Canadians 45 to 64 years of age are more likely than others to be very concerned about identity theft (58 per cent).
-Regionally, concern about identity theft is highest in Ontario (58 per cent) and lowest in Quebec (33 per cent)
Although almost all Canadians are worried about identity theft, only 1 in 4 Canadians aged 25-44 have examined their credit report; and only 1 in 10 seniors (over 65) have done so.
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'All she needed was my name and date of birth' -
Lynette Geehan, a teacher from St. John's, Newfoundland, is frustrated by difficulties in ensuring her name is clear.
According to a story on CBC.ca, Geehan was the victim of identity theft at the hands of a childhood friend. She's shocked at how easily it happened.
"Apparently, all she needed was my name and date of birth," Geehan told CBC.
Although Geehan has contacted the Royal Newfoundland Constabulary, the RCMP and government officials, she still feels her name may still surface on a no-fly list or during a criminal record check. She has been given a “letter of assurance that she is not considered a criminal,” according to the story.
The article continues:
(Geehan) took her concerns to Jack Harris, the New Democrat MP for St. John's East, who said Geehan's problem is typical of what is wrong with a lot of the security tightening that happened after the Sept. 11 attacks.
He said governments must make it easier for people like Geehan to clear their names.
"There ought to be a clear procedure where somebody can go to an ombudsman, or appeals board, or some tribunal and say 'look, here are the facts. If my name's on the list, I want it removed and I want assurance it's been done,' " he said.
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Less obvious tips to prevent ID theft -
As identity theft rates continue to rise, the Toronto Star published an article outlining seven ID theft protection tips you may not have thought of. As a new month begins, it's a good time to review some of your personal safety habits, and how you can improve them.
The article notes that identity theft has changed in recent years. One time, most cases involved stolen credit cards and excess charges. Today, the Star reports, 85 per cent of ID theft crimes happen outside the credit system. “Criminals have bigger ambitions than draining your chequing account,” the article states. “They want to steal your identity and apply for fake mortgages, government services and utilities. More insidious is the idea that your name could be woven into the fabric of crimes whose motive isn’t mainly financial.Some of the tips the newspaper offers:
-Only use ABMs in bank lobbies. Other ABMs are less likely to be monitored by video security. ABM kiosks in corner stores or elsewhere are also more likely to be targeted by “skimmers,” machines that record your account data and PIN number.
-When getting married, women should be decisive if they take their husband’s names. Don’t let your maiden name float around in the datasphere still attached to a dangling bank account or a seldom-used credit card. Thieves target these viable but under-used identities.
-Don’t ever throw an unsolicited credit card application form into the trash. Often, you’ve been pre-approved. A thief only has to mail it in to become you.
-Never put any identifying numbers or data into your cellphone.
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Personal data of 8,600 teachers compromised -
Private information of 8,600 teachers is at risk after three laptop were stolen from the Waterloo, Ont., offices of the Ontario Teachers Insurance Plan. Most of the teachers work for the Toronto District School Board in elementary schools.
CBC News learned of the theft in late January 2010; it occurred on Dec. 4, 2009. The CBC report says the laptops contained names, addresses, birth dates and social insurance numbers of the teachers. None of the data was encrypted.
According to the insurance organization, the affected teachers were informed about the theft about the same time CBC reported the story. "As soon as we did determine that there was member data involved we set out to put a plan together to notify the members who were affected," Julie Millard of the Ontario Teachers Insurance Plan told CBC News Jan. 27.
The thieves also broke into a cash register and attempted to break into a storage closet. Police in the area call the theft a routine “smash and grab,” but others believe it might not be quite so simple.
The article quotes Ken Anderson, Ontario's assistant privacy commissioner:
"There are actually professional theft rings now that are looking for laptops, BlackBerrys [and] other portable devices where they can get the information … they strip it out and it can be used in many ways."
For instance, the information can be used to obtain false passports and fake credit cards or for re-mortgaging a victim's home.
Anderson, who is charged with ensuring the government keeps public data safe, said it's "as important, and indeed in some cases, maybe even more important, that the private sector protects your information, especially if it's in a digital format."
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Identity theft victim on U.S. no-fly list -
Frank Norman's wallet was stolen more than three years ago during a break-in at the restaurant where he worked. The St. John's, Newfoundland resident has been struggling to recover from the lasting effects of identity theft ever since – and it's just gotten more complicated.
According to a story on CBC.ca, Norman first realized he was in a serious situation in December 2006. He was charged with stealing from a Wal-Mart store in Carbonear, more than 100 kilometres from St. John's. But Norman hadn't been near that store – ever.
The charges were eventually dropped and the RCMP apologized.
But Norman's headache isn't over. As the article continues:
Now, Norman wants to fly to the Caribbean island of St. Martin for a wedding in May, but his flight includes a stopover in Newark, N.J. Norman said the RCMP have told him that he would be removed from the plane when it lands in the United States because his name is on the No-Fly list.
"It's just been one nightmare after another," he told CBC News. "It never seems to end."
Norman said the police told him that when his name was put on a Canada-wide warrant for his arrest, in connection with the Wal-Mart theft, it automatically was added to a list of people who aren't allowed to fly into the United States.
Norman says he has a photo of the man who has been using his ID to commit crimes, but the criminal has yet to be identified or apprehended.
"Like, this is 3½ years I've been dealing with stolen identity problems," Norman is quoted as saying. "I'm at a loss where to turn to from here. No one in the government departments can help me. If your government can't help you, where do you go to?"
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Top 10 passwords are easy to crack -
A recent study analyzing 32 million passwords exposed in the Rockyou.com data breach revealed that many, many people still use passwords that are common and easy to crack – and, as a result, incredibly unsecure.
An article on Techeye.net reviews the study (conducted by security company Imperva) and its implications.
The most commonly used password is 123456, though variations on that basic combination – such as 12345 and 12345678 – are also on the top 10. Techeye.net refers to these types of very obvious passwords as “terminally imbecilic.”
The article continues:
While numbers dominate the top three, moronic ‘safe’ words are also represented with the word ‘password’ coming in at four, ‘iloveyou’ at five and ‘princess’ at six. The chances are … you or someone you know might be stupid enough to come up with the word password, for a password, when using social networking or e-commerce sites.
“Employees using the same passwords on Facebook that they use in the workplace bring the possibility of compromising enterprise systems with insecure passwords, especially if they are using easy to crack passwords like ‘123456’,” said Imperva’s CTO Amichai Shulman.
It is important to choose unique passwords for each of your logins. It is advisable to use a combination of letters and numbers each time, and it is best to avoid dictionary-level words. Never use a birth date, pet's name or 123456. A simple password greatly increases your risk of having data compromised.
Unbelievably, here are the top 10 most used passwords:
1. 123456
2. 12345
3. 123456789
4. Password
5. iloveyou
6. princess
7. rockyou
8. 1234567
9. 12345678
10. abc123
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Watch out for scam job ads -
Careful where you send your resume! A resume contains a great deal of personal information and, if it falls into the wrong hands, can open you up to a world of identity theft.
A recent story in the Niagara Falls Review recounts the experience of Russell Baird, a resident of Niagara Falls. Baird was looking for employment as a salesman when he responded to a job ad that sounded right up his ally. The ad appeared in a number of Ontario newspapers, advertising for an "experienced sales and customer service representative."
The training and benefits sounded ideal. So Baird sent along his resume to an email address, as instructed.
The article continues:
A short time later, he received a letter from a firm called Life Styles Solutions Inc., and the position was for a customer service analyst, or mystery shopper.
The letter said he had been selected to become a representative in this region. This was an opportunity to participate in their business improvement campaign. He would be paid a flat rate of $200 for his time and travel expenses.
Along with the letter, he received a cheque for $1,900 from the National Bank of Canada with a branch address on Bumhamthorpe Road, W. in Mississauga.
Baird's suspicions were raised. Why would a company send him a cheque? And besides, there is no Bumhamthorpe Road in Mississauga – it's Burnhamthorpe Road. Sure enough, the cheque was phoney. Baird called the newspaper, which has now stopped running the ad.
It is not apparent whether the dodgy company has used any of the information it gleaned from Baird's resume for criminal purposes, but the opportunity is certainly there.
Always try to research a company or job offer before you send off your resume. And never include your Social Insurance Number on it! The employer doesn't need this data until much later in the game.
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Small businesses hit by ID fraud -
A recent story in the Globe and Mail details the growing problem of identity theft against small and medium-sized businesses. With fewer resources to devote to IT security and data protection than larger companies, small operations hold considerable opportunity for fraudsters.
For example: Burlington, Ontario law firm Martin & Hillyer LLP had its identity stolen and telephone system hacked last year. An unknown individual managed to rack up more than $200,000 in calls to Africa by uncovering the phone system password.
In another case cited in the article, a small business owner received a phone call saying he had not paid an electricity bill for one of his office buildings. “The client discovered he never received the bill because the building had been sold without his knowledge,” the story states. “A fraudster had falsified the company minutes, made himself the new CEO and sold the building to an accomplice, walking off with the proceeds of the sale.”
Brazen stories like this are becoming more common. As the article continues:
“Identity theft among small and medium-sized businesses is increasing across Canada and it has been dubbed the crime of the 21st century in government documents. Similar to identity theft against an individual, it involves a fraudster assuming the identity of a business and often stealing company assets, client lists and credit information or using a firm's identity to secure business or payments. The fraudster could be a third party, an employee, a competitor or even a supplier. The result is not just the financial damage, but often the company's reputation.”
Montreal fraud lawyer Mathieu Piché-Messier helps small businesses solve such tangly cases. But he has a warning for all that do not take the proper precautions. “Once an identity is stolen, if the client takes too much time, it's like starting an overall investigation cold,” he is quoted as saying.
Experts canvassed in the article suggest small businesses carry out regular security audits and employee training, monitor orders carefully and properly store all electronic and paper confidential information.
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Inmates charged in tax and identity fraud -
Four individuals appeared in Toronto court Jan. 15, as a result of a tax fraud and identity theft investigation by the RCMP, the Canada Revenue Agency, and the Ontario Ministry of Community Safety and Correctional Services.
Two of the accused are inmates, brought to court for using fellow inmates' personal information in a tax fraud scheme. The other two provided the “outside assistance” necessary to convert the ill-gotten government cheques.
This story comes through a statement released by the RCMP. These particular charges are the result of a wider investigation, which revealed irregularities with over 2000 tax filings from tax years 1999 to 2007. These particular tax returns were filed using about 300 different personal and business identities associated to current and former inmates of correctional facilities and sought $2 million in GST and other tax rebates.
The statement continues:
"Fraud relating to identify theft continues to be a concern. This investigation, once again highlights the need to always safeguard your personal information" stated Inspector Dave Bellamy who is the Officer in Charge of the RCMP Commercial Crime Section in Toronto.
"We would like to remind everyone, and emphasize that a few simple measures can go a long way to reduce the risk of identity theft and fraud."
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Medical ID theft rapidly growing -
An article at AIShealth.com details the rising rate of medical ID theft. Although the article is directed at health care managers, the information is an important wake-up call to the public.
Medical theft is on the rise, the article suggests, because it is less dangerous than many other crimes (such as the drug trade) and the benefits stand to be much greater than simple credit identity theft. A medical insurance policy can go into the millions of dollars, especially in the United States. According to Harry Rhodes, a director with the American Health Information Management Association (AHIMA), there four types of medical ID theft:
One-off: An insured individual gives his or her insurance card to a relative, and the relative accesses medical services under that person’s name. Or an individual sells his or her insurance card on the street.
Insider: An employee at a health care organization who has the ability to process bills files false claims. Often the employee sets up a bank account and has the payment sent directly there.
Organized crime: Insiders steal and sell patient information, or pay off beneficiaries to give it to them. The organized crime unit sets up a sham medical business and files false claims.
Drug seeking: People buy or steal others’ insurance information for the purpose of obtaining narcotics.
The article also talks about data breaches, including those that can happen through the theft of a laptop – there have been a number of these cases in Canada. The majority of laptop thefts occur when people take computer equipment containing health information home or on a trip. The laptop may be stolen, or it may be hacked into via unsecured Internet connections.
What can you do?
As a member of the public, you can do your best to keep your medical records secure. Keep important documentation in a safe place, ideally in a safe. Do not carry more information with you than you need. Never discard old prescriptions or drug store receipts – take them home and shred them if you no longer need them.
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Man sentenced for stealing bank account numbers -
A Nashville employee of a state contracting company accessed thousands of Social Security numbers and bank account numbers while on the job. He then sold the information to various sources, often for as little as a dollar an item.
According to the Associated Press, Steven K. Gilmore, 29, was sentenced Jan. 11 to 3 ½ years in prison for identity theft, aggravated identity theft and access device fraud.
Gilmore was apprehended and charged after selling “an informant more than 1,100 Social Security numbers and some 1,600 stolen bank account numbers for $2,800.” He was arrested in April, 2009 and sentenced nearly 10 months later.
According to the article, Gilmore worked for Policy Studies, Inc., a Denver-based private company “that contracts with the state to provide child support services. He had access to personal information through his job.”
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Seattle woman gets 4 years for ID theft -
Seattle resident Valorie A. Dade, 59, was recently handed a sentence of more than 4 years in prison and $35,000 in restitution payments for her role in an identity theft ring. The organized criminal group victimized 42 people and inflicted more than $125,000 in damages.
An article posted on Thaindian News states that Dade's hefty sentence was given, in part, in consideration of her “overwhelming criminal history.”
Dade is charged with bank fraud, social security number misuses, and aggravated identity theft. Dade was part of a group that would use identities provided by a ring leader (who is to be sentenced this May) to open credit accounts at large stores and retailers. Once an account was opened successfully, the ring members would purchase big-ticket items, which would then be resold on the black market.
The article continues:
A US Attorney asked for significant sentences for each of the defendants in this case, noting that the damage the ID theft did to the victims “destroyed the credit of hard working citizens in just a matter of days.” He finished by saying that “Ms. Dade’s crimes robbed the affected individuals of their hard work and good credit.”
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Thief says ID theft is “simple” -
A reporter at Rochester's 13wham.com recently spoke to a former identity thief about how he conducted his crimes. It's a revealing look at just how easily people can learn to find personal information and use it for criminal purposes.
In the website article, Dan DeFelippi talks about how he would use a computer to almost instantly find what he was looking for.
"I would actually buy the card numbers,” DeFelippi is quoted as saying. “You can buy credit card numbers for a dollar, 2 dollars, 3 dollars.”
DeFelippi also said he would read underground websites, filled with tutorials on how to conduct identity crimes and access lists of numbers and personal information.
DeFelippi was arrested for his crimes in 2003. Since then, he's been helping the Secret Service infiltrate identity theft Internet networks. He offers insider's insight into how to avoid falling a victim of identity theft at the ATM.
First, he said, you should pick an ATM close to home, use it regularly, and become familiar with it. As well, the best bank machines to use are inside a bank or store and around people.
Be wary if there is no flashing light by where you insert the card – it could be covered by a skimmer – and of any attached brochure containers, which could easily hide cameras positioned to record your PIN number.
Drive-through ATMs are prime targets for criminals, as consumers often feel rushed while using them and are thus careless. In fact, DeFelippi said, people are generally distracted at ATMs and thieves take advantage of this.
"If you can plug a camera into a computer and plug a VCR into a TV, you can do ATM skimming,” he is quoted as saying. “That's as simple as it is. You can buy the hardware – all you have to do is plug it in."
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ID thieves nab prescription info from garbage -
An article in Delaware Online begins with this very timely warning: “Be careful what you toss into trash cans outside drugstores.”
Delaware, it seems, has been hit particularly hard by organized criminals targeting garbage collected outside pharmacies. According to police, the criminals rifle through trash cans searching for prescription bags, which may contain paperwork including personal and prescription information.
Armed with this information, the ID thieves can call in false prescriptions – even charging them to their victims' insurance. The illegally obtained drugs – including Oxycontin and Vicodin – are then often sold on the street.
Many people are not aware that identity theft can happen this way. As the article states:
"I had no idea someone was doing that," said 40-year-old Georgette Stelyn of Bear, who routinely throws away everything but the medicine after leaving the store. "I throw mine away because it's just more garbage in my car – with four kids, I've got enough."
The thieves are sent from nearby states such as Pennsylvania to rummage through garbage cans near pharmacies, investigators said. They look for the information sheets, which they take to organized dealers who act like "wholesalers”…
The people going through garbage cans are a mix of addicts and suppliers who want information such as the patient's name, date of birth, doctor writing the script, what the medicine is and dosage, DiVincenzo said.
Never throw away any receipts or prescription information! Take them home and file them away in a safe place, or shred the paperwork and then discard it.
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