Feeling the heat of legitimate enforcement agencies worldwide something sinister may be under way. The online chat rooms serving as the clearinghouse for credit card scams may be moving their server access to Iran and out of reach of Internet sleuths trying to chase the perpetrators of credit card thief and identity theft. The stakes of the game are getting higher.

What’s consumers to do to protect themselves from this devastating assault? When it happens ones credit history can be totally destroyed and will require hours and hours to even begin to unwind the events to win back the consumers good credit. Police reports need to be filed immediately to form a basis of the case deflecting blame to the culprit where it belongs rather than the consumer. Every time a consumer uses the Internet their IP Address (Internet Protocol Address) is exposed to those who may wish to do them harm. It is possible to pinpoint a consumer’s location and thus reveal even more information that may be used to build a credit file to support efforts to defraud and scam.

The free online government site on new credit card scams is bulging with different wrinkles on old con schemes. A consumer has a permanent mark tattooed on their forehead as a “mark” screaming “Come and get me.” A consumer can do everything to protect themselves and yet a scammer is able to come in the back door and gains access to a consumers information by someone hacking into mainframes or other means outside the realm of normal protection.

What is a consumer to do to erect defenses against this stealth enemy? Limiting the number of cards would be a good start. Having a bevy of credit cards with little or no balances is asking for trouble. A caution here, if a bunch of cards are closed out all at once, it can plummet the credit scores. So over a year’s time one could shed the extraneous cards without adversely impacting the credit scores with all other things being equal. Obtaining a card with say a $500 limit would be good for online purchases to limit the liability. Even though there is a $50 loss limit on many cards, if a scammer opens a card in your name and a consumer does not find out about it for several months, the arm wrestling will begin with the credit card issuing company. One defaulted card can precipitate a case of “universal default” where all the other credit cards will have their interest rates accelerated to the full legal limit. A great 7.5% rate card could be accelerated to say 25% with one single 30 day late on a scammed card. It will take months and months to unwind and in the meantime a consumer’s credit scores are adversely impacted and this single action spills over to all the other credit criteria.

Services such as “PayPal” and such can offer a layer of protection. Even here, there are scams imitating the real company to gain personal information to perform a rip off. Many scams imitate the consumer’s bank to “verify” their personal information to perpetrate additional scams. Mailbox pilfering have been replaced by scalping data from mainframe penetration to access personal information on multiple consumers. Firewalls need to be toughened and hardened against such infiltration. Even more serious events happen for consumers when the employee’s laptops are stolen with millions of personal information allowing credit card rip-offs. Many of these forays turn out to be inside jobs with someone within the company selling the records.

Some how, some way, there must be a way to encrypt a consumer’s data either by requiring eye scans, finger print or other devices to squash the scammers. In the meantime, it’s up to the consumers to protect themselves. If a consumer has much to lose, accounts must be checked for any unusual activity, a post office box might be utilized to prevent credit card rip-offs. In addition, there are several credit card fraud insurance companies are willing to offer protection against this peril for a premium and provide personnel and attorneys if necessary to fight against fraud and clean up the credit card history. Consumers, have protection against auto accidents, fire and hazard perils, workman’s compensation, job loss protection and even pre-paid legal. With this great exposure to loss and credit history destruction this can offer a level of protection to consumers whom might be exposed to dramatic financial losses. Like any insurance a consumer must make a good faith effort to minimize losses. Like leaving the car keys in the ignition with a running motor and the door open, invites a crime. In another case, if all the doors and windows are left open in the home which by its very action may invite a burglary. A consumer has to make a minimum effort to protect their information, but it is good to have a layer of protection from an insurance company just in case.

Summarizing, with less than 1% of identity thieves ever being prosecuted this world-wide problem must be elevated to nothing less than the equivalent of a mugging or strong armed robbery. Where countries are being used, as a sanctuary for identity thieves such as Internet cafes’ then there must be diplomatic engagement with resulting foreign aid offsets against losses perpetrated from that foreign country. If the server being used by these scalawags is moved to rouge countries it will make enforcement even tougher. There must be a price to be paid for such outlaw activity. The ghosts of “Butch Cassidy” and the “Sundance Kid” have found new life on the Internet. A consumer needs to be vigilant and aware of their credit information or credit challenges will follow. A layer of insurance protection might be a needed tool in protecting a consumers credit history and financial reputation. A clean credit history means everything in getting the best terms and interest rates for any credit purchase or refinance. Keep a sharp eye out.

Dale Rogers

www.brokencredit.com

This information is easier to obtain that you think, and before you realize it, you are a victim of identity fraud.

There are several common ways identity fraud is carried out. Online identity theft, considered to be the most popular form of identify fraud, is only one. Another method has been nicknamed “dumpster diving,” which involves stealing mail by rummaging through someone’s garbage for identifying documents.

These often include discarded receipts and paid bills, which all have identifying information on them that thieves find useful. One method used to fight identity theft is quite simple and effective: Consumers can reduce the risk of becoming the victims of identity fraud by buying and using a paper shredder. That way, no information of potential importance leaves the house intact.

Have you ever received an email from some stranger overseas claiming that you have inherited millions of dollars but have to send them your account number so they can wire it to you? Have you ever gotten a message from your bank asking for information about you, but you know they already have all that information?

If you can answer yes to either of these questions, you may have been singled out as a potential victim of online identity theft. This identity fraud tactic is known as “phishing.” There is no trick to fighting identity fraud like this, save using common sense. If you aren’t expecting an email from a trusted source or if you don’t know the sender, it is safer to just delete the email.

Of course, the biggest way identity theft gets perpetrated is the most recognizable. Hackers take a more direct approach to fraud. They break into computers and steal the information they need. Again, there’s a good way to fight identity theft of this type: Purchase good virus protection and firewall software to block unwanted intruders from your computer.

A series of three-year surveys that ended in 2006 show that, while there has been a decrease in the number of victims of identity fraud, the cost rose to $56 billion dollars last year. More statistics show that:

The average time a victim takes to fight identity theft is 600 hours. 3/4 of victims who responded to the survey said that the crime involved someone getting their hands on a credit card. The impact of online identity theft and identity fraud is similar to that of violent crimes for the victims.

The problem of identity fraud isn’t just in the United States. In Europe, the British have crunched some numbers, reporting that identity fraud has cost their economy a shocking 1.7 billion pounds.

on the news today, there was a discussion about hackers, and no one’s information is truly safe.

i’ve been hearing about identity theft happening to teenagers, and not only teens but adults.

the worse kind of identity theft is using one’s credit history, credit cards, name, address, etc. and pursuing things without the person’s consent. this has happened, to many i know, and i’m wondering, if because of the bad economy this kind of identity theft will continue.
before the bad economy there were still cases of identity theft.

Now that internet shopping is a very common pass time, there has been a rapid increase in instances of online identity theft. Thieves are moving off the high street and, with a little knowledge of web programming, have broadened their horizons to include a much larger amount of targets.

One of the most common, and thankfully easily avoided forms of online identity theft is a technique known to the industry as ‘phishing’. A phishing attack involves sending out huge numbers of emails which pretend to be from a popular online retailer, an auction site such as eBay, or a bank or online wallet site. The email will usually say that the customers account has been suspended, or that they need to update their details. When the user clicks a link in the email they will be taken to a fake page that looks just like the login page of that company. When the user logs in, they will be giving away their personal details to the identity thief.

Some of the emails give themselves away instantly through spelling mistakes and poor grammar, others are very convincing on first glance, and it is easy to understand how these attacks manage to fool a huge number of people.

Do Not Trust Emails Asking For Personal Information

When you click a link in a ‘phishing’ email, the page you are taken to will ask you to enter account information, password and other personal information such as a credit card number, checking account information and social security number along with other items. Entering this information and submitting it will give the person committing online identity theft all the resources needed to access your accounts, or open new ones in your name or even change your mailing address.

Most online companies tell their customers that to prevent online identity theft always log on to their website by typing the address in yourself, not by clicking a link in the email to see if the requested information is really needed. Chances are it isn’t, and you should then forward them the email so appropriate action can be taken.

Failure to take even the simplest of precautions can open the door for online identity theft which will attempt to cheat you out of your money by establishing transfers from your checking or savings account put charges on your credit card or simply add a new address and have all merchandise of cash advances sent to the new address.

Most banks will work with victims of online identity theft to help them get their money back, however it can take a lot of time for them to trace transactions and verify the things you tell them. Make sure you check your credit report and your bank statements frequently, and query any unusual transactions with your bank. If you suspect that something is wrong, act immediately, and contact the Federal Trade Commission to make the first steps in regaining your financial identity.

There are a lot of identity theft cases being reported today and many millions of dollars are being lost as a consequence. It will therefore pay to take a closer look at what is identity theft because the more knowledgeable you are about this particular form of theft, the better equipped you will be to prevent it from happening to you.

The first thing that strikes most people when they wonder exactly what is identity theft is that it involves someone hacking into a bank account (online) or is about using your credit card or your ATM in an illegal manner.

More Than Financial Losses

If you don’t know what identity theft is you will not be able to take preventive measures and you will also not be able to know when and how to look for instances of identity theft. What’s more, identity theft is not confined only to financial losses and there are in fact five different areas that you will need to learn about.

When learning more about what is identity theft, you need to also check to see whether it does not involve your driving license. Identity thieves are known to use stolen identities to create driving licenses in the names of their victims and will then go ahead and commit crimes or do other illegal things in your name – leaving you to face the consequences.

Another aspect to identity theft is the one that relates to stolen Social Security numbers. So, your search for an answer to what is identity theft should also take into account that your Social Security number is a prime target for identity thieves. By stealing your Social Security number, thieves can get 1099 jobs and even cash paychecks while conveniently forgetting to pay their taxes and then leaving you to shoulder the responsibility of correcting their erroneous ways.

Yet another area in which identity thieves strike is by stealing your medical insurance. It means that the next time that you enquire about what is identity theft makes sure to also check whether a thief has not illegally used your health care insurance by having made off with your health insurance card.

In fact, identity theft can also affect your character and this is an area in which you will need to be well informed about because this form of identity theft can be especially hurtful for you. Once your character has been compromised you will find it very difficult indeed to restore your damaged reputation. Finally, you also need to ask questions related to what is identity theft with regard to your finances.

By understanding what identity theft is, particularly in the five areas mentioned above, you will be able to protect you a lot better. Today, there are also credit monitoring services that can help consumers learn to deal with credit fraud and therefore you need to also become better acquainted with this aspect to credit fraud as well. It is never a good idea to wait till identity theft strikes you; rather, you need to find out as much as is possible about what is identity theft and then take remedial steps so that you enjoy a life free from different forms of identity theft.