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2008-07-06 BACK
Identity Theft in Texas
Identity Theft in Texas This article originally appeared in the Texarkana Gazette on July 6, 2008 By Dr. Charles McDonald, Professor of Management Information Systems Texas A&M University-Texarkana In 2007, 8.1 million Americans were victimized by identity fraud at a cost of $45 billion. Identity theft occurs when someone acquires another person's identifying information without explicit permission. The stolen data might include a Social Security Number, credit card information, savings and checking account information, name, address, phone number, birth date, or password. The perpetrator uses this information to extract funds from accounts, charge credit cards, seek purchase approvals, make loans, open new accounts, satisfy employment requirements, or create new identities. Any of these acts constitute identity fraud. The Federal Trade Commission (FTC) reports, that since 2003, Texas has been ranked as second only to California in the number of reported identity theft victims. In 2006, Texas reported 26,006 identity theft complaints. This included 6,508 employment-related fraud, 5,111 credit card fraud, 4,725 bank fraud, and 3,893 phone or utilities fraud complaints. According to Javelin Strategy & Research, 79% of identity thefts occur by direct contact with the thief. This would include lost or stolen wallets, purses, checkbooks, or credit cards. Frequently thefts occur in the victim's home by friends, relatives, or in-home employees. Stealing mail from a mailbox, watching or listening to a victim conduct a transaction, and searching trashcans for information are other physical methods that criminals use. Surprisingly, last year, only 12% of identity thefts occurred via the Internet. Recently, I attempted to check my e-mail using my laptop via an airport's WiFi network. When I returned to my office, I discovered three Trojan horses had been installed on my laptop. Trojan horses are frequently used to capture keystrokes and forward them to a rogue website. After removing the Trojan horses, a PC security software product was installed to prevent a recurrence. Bogus e-mails that appear to be sent from a financial institution requesting information to update or reactivate an account are called phishing. Recently, I received an authentic-looking e-mail claiming that an update was needed on my PayPal account. By using a few Internet tools, I discovered that the e-mail's link would connect the user to a fake website located in China. This website presents a bogus PayPal account update form. Apparently, a completed form would enable the perpetrator to drain the account. The consequences to the victim may not be limited to delinquent accounts appearing on the victim's credit report. The IDTheftCenter.org reports that victims average about 600 hours of recovery time that may be spread over several years. Generally, the longer it takes to detect fraud, the greater the fraud's damage. Unfortunately, about 85% of victims do not discover the crime until they are contacted by collection agencies, denied credit, or refused employment. According to the FTC, about 25% of the identity theft acts in Texas are for employment-related fraud. These acts frequently result in identity theft victims being contacted by the Internal Revenue Service seeking unpaid taxes because someone, frequently an illegal immigrant, was employed using a filched Social Security Number. To reduce the risk of becoming a victim of identity theft, consider these tips. •Protect your PCs and cell phones with passwords that are not easily guessed •Use a shredder for disposing of sensitive documents •Use a locked mailbox •Always secure personal information in your home and office •Utilize online banking to avoid paper copies of statements, checks, invoices, etc. •Never click on a link in an e-mail that was unsolicited •Never respond to an automated phone message requesting a callback without verifying the correct number •Purchase name-brand security software for your computer and update it regularly on the Web •Monitor your bank, credit union, and credit card activities regularly •Communicate with your financial institution for advice in preventing and dealing with instances of identity fraud For more information and recommended tips, connect to www.IDSafety.net or www.annualcreditreport.com. For a free copy of the 2008 Identity Fraud Survey Report (consumer version), connect to http://www.javelinstrategy.com/research/all.
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Identity Theft in Texas
Identity Theft in Texas This article originally appeared in the Texarkana Gazette on July 6, 2008 By Dr. Charles McDonald, Professor of Management Information Systems Texas A&M University-Texarkana In 2007, 8.1 million Americans were victimized by identity fraud at a cost of $45 billion. Identity theft occurs when someone acquires another person's identifying information without explicit permission. The stolen data might include a Social Security Number, credit card information, savings and checking account information, name, address, phone number, birth date, or password. The perpetrator uses this information to extract funds from accounts, charge credit cards, seek purchase approvals, make loans, open new accounts, satisfy employment requirements, or create new identities. Any of these acts constitute identity fraud. The Federal Trade Commission (FTC) reports, that since 2003, Texas has been ranked as second only to California in the number of reported identity theft victims. In 2006, Texas reported 26,006 identity theft complaints. This included 6,508 employment-related fraud, 5,111 credit card fraud, 4,725 bank fraud, and 3,893 phone or utilities fraud complaints. According to Javelin Strategy & Research, 79% of identity thefts occur by direct contact with the thief. This would include lost or stolen wallets, purses, checkbooks, or credit cards. Frequently thefts occur in the victim's home by friends, relatives, or in-home employees. Stealing mail from a mailbox, watching or listening to a victim conduct a transaction, and searching trashcans for information are other physical methods that criminals use. Surprisingly, last year, only 12% of identity thefts occurred via the Internet. Recently, I attempted to check my e-mail using my laptop via an airport's WiFi network. When I returned to my office, I discovered three Trojan horses had been installed on my laptop. Trojan horses are frequently used to capture keystrokes and forward them to a rogue website. After removing the Trojan horses, a PC security software product was installed to prevent a recurrence. Bogus e-mails that appear to be sent from a financial institution requesting information to update or reactivate an account are called phishing. Recently, I received an authentic-looking e-mail claiming that an update was needed on my PayPal account. By using a few Internet tools, I discovered that the e-mail's link would connect the user to a fake website located in China. This website presents a bogus PayPal account update form. Apparently, a completed form would enable the perpetrator to drain the account. The consequences to the victim may not be limited to delinquent accounts appearing on the victim's credit report. The IDTheftCenter.org reports that victims average about 600 hours of recovery time that may be spread over several years. Generally, the longer it takes to detect fraud, the greater the fraud's damage. Unfortunately, about 85% of victims do not discover the crime until they are contacted by collection agencies, denied credit, or refused employment. According to the FTC, about 25% of the identity theft acts in Texas are for employment-related fraud. These acts frequently result in identity theft victims being contacted by the Internal Revenue Service seeking unpaid taxes because someone, frequently an illegal immigrant, was employed using a filched Social Security Number. To reduce the risk of becoming a victim of identity theft, consider these tips. •Protect your PCs and cell phones with passwords that are not easily guessed •Use a shredder for disposing of sensitive documents •Use a locked mailbox •Always secure personal information in your home and office •Utilize online banking to avoid paper copies of statements, checks, invoices, etc. •Never click on a link in an e-mail that was unsolicited •Never respond to an automated phone message requesting a callback without verifying the correct number •Purchase name-brand security software for your computer and update it regularly on the Web •Monitor your bank, credit union, and credit card activities regularly •Communicate with your financial institution for advice in preventing and dealing with instances of identity fraud For more information and recommended tips, connect to www.IDSafety.net or www.annualcreditreport.com. For a free copy of the 2008 Identity Fraud Survey Report (consumer version), connect to http://www.javelinstrategy.com/research/all.
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