Why Identity Theft makes us all dummies, and what you can do to stop being stupid...
Someone recently told me, "You would have to be a stupid to lose your personal information."
While I respectfully responded to this person in the moment, the comment has stuck with me. I present on identity theft all over the Western United States, and thought I would respond to this particular individual in writing.
There are multitudes of ways to lose your personal information. You have undoubtedly heard of many of them. Fake web sites, data theft, stealing people’s trash, stealing people’s outgoing mail, check fraud, etc., are just a few of the possibilities for loss of information. Job ads are also being used for Identity Theft. Monster.com ranks fake companies posing as real companies on their web site among their biggest problems.
Since Februaury 5th 2005 the Privacy Rights Clearinghouse has reported that over 104 million U.S consumers have had their information lost, stolen or compromised.
So, to you who think that it could never happen to you, you might want to read this next sentence twice. No matter how good you are, no matter how vigilant, no matter how much you shred or tear, no matter how many times you go to the post office so that you don't put outgoing mail in your home mailbox, regardless of how well you can hide in your home, there is no 100% effective defense against Identity Theft. Let me say that again, in case you don't read it twice. There is NO 100% effective method to defend yourself against identity theft.
Here's an example of why. Let's say you want to get health insurance, or auto insurance, or finance a car, etc. etc. etc. Let's say for purposes of this example that you are trying to get health insurance through your company. This is a relatively simple process, right? Fill out the form, and wait to get the insurance cards in the mail.
What you may not realize is that the insurance agent has taken the form you filled out and submitted it for group health. It is submitted to three different companies for underwriting. So now, the insurance agent and the insurance company has the information from you, the three companies supplying the insurance coverage have the information on you, AND all of the employees at all four points have access to the information. Think about how many employees that might be.
That information is often then passed on to a data warehouse like ChoicePoint, and anyone who has access to ChoicePoint now has access to that information. Who has access to ChoicePoint? I think with the recent news articles, the more appropriate question is, who doesn't have access to ChoicePoint?
The information is also submitted to your MIB (Medical Information Bureau) file. Anyone who has access to the MIB files, now has access to all of that information. Who has access to the Medical Information Bureau records? Anyone, at any hospital around the United States, who has even a small amount of clearance, has access to the Medical Information Bureau records.
According to John Gardner, co-author or Chicken Soup for the Entrepreneurial Soul, "This makes the Identity Theft Shield, along with a Pre-Paid Legal Services Membership, an absolute must for anyone that’s breathing.”
So to you, sir, who more or less said to me, “You’d have to be stupid to become a victim of Identity Theft!” I wish you my best. If you want to continue thinking that shredding your information is going to protect you, then for you I respectfully choose a phrase used by my friend Larry Smith. “Sometimes, you just can’t fix stupid.”
Saturday, March 31, 2007
Is identity theft going DOWN?
Maybe you have read some headlines recently that studies show identity theft is decreasing.
First let me say, this study was completed on the heels of one of the biggest data breaches with the widest ripple effect in recent history..... TJ Maxx.
The Javelin study was sponsored by Visa, Wells Fargo and electronic billing company CheckFree.
Do you suppose they have an interest in avoiding further regulation?
The Javelin Study was just 1 of 3 major studies that came out this month that indicate that identity theft is on the decline. Maybe now we can stop guarding our Social Security numbers like state secrets and sell our shredders on eBay. NOT.
It's hard to gauge the reliability of any of these reports.
1) Javelin Strategy & Research, in a phone survey of 5,000 people, found that 3.7 percent had their identity stolen in 2006, down from 4 percent in 2005 and 4.7 percent in 2003.
2) Then the Federal Trade Commission released its report, which showed that ID theft declined slightly last year from 2005, though it remained the top fraud complaint for the seventh consecutive year. The FTC study, based on complaints filed with the commission. The FTC study, based on complaints filed with the commission, ranked Florida fifth among states in ID thefts per capita. South Florida, encompassing Miami to West Palm Beach, was 37th among metropolitan areas.
3) A report released Wednesday by ID Analytics, a San Diego-based consultant, showed New York, California, Nevada and Arizona as the states with the highest risks of ID fraud. New York City, Detroit, Los Angeles and Little Rock, Ark., had the highest rates among cities. Neither Florida nor any cities in the state ranked in the top 10.
As for the FTC study, the sample base was large and the commission has been consistent with its methodology. But how meaningful is it to analyze only complaints made to the FTC? Most victims report ID theft to local police or not at all. (upwards of 60% goes Unreported)
Even if the studies were accurate, they would simply reflect the reality that anything measured by a number can peak only once. Just like real estate prices and the stock market, ID theft can't go up forever. Perhaps it already hit a historic high and is now leveling off.
Frankly, it shouldn't matter. The problem, regardless of whether it's a little bigger or a little smaller than it was a year ago, remains serious.
People need to protect what they can NOT prevent. That is why they need you.
If we read a report that crime is down, we don't start leaving our car doors open and our wallets lying around in public places. We didn't stop consuming vitamin C once scurvy was under control. So we shouldn't let our guard down now, either.
But is it possible we're too worried about ID theft? Is it possible the risks have been overhyped in the media? It won't come as a shock to anyone who has followed recent coverage of Anna Nicole Smith's death and the diaper-wearing astronaut lady, but the answer is yes, it's possible.
ID thefts described in the media -- such as the brazen use of someone's identity to have medical procedures provided -- accurately show how devastating the crime can be to its victims.
What does all this mean for consumers? Don't ditch your shredder just yet.
First let me say, this study was completed on the heels of one of the biggest data breaches with the widest ripple effect in recent history..... TJ Maxx.
The Javelin study was sponsored by Visa, Wells Fargo and electronic billing company CheckFree.
Do you suppose they have an interest in avoiding further regulation?
The Javelin Study was just 1 of 3 major studies that came out this month that indicate that identity theft is on the decline. Maybe now we can stop guarding our Social Security numbers like state secrets and sell our shredders on eBay. NOT.
It's hard to gauge the reliability of any of these reports.
1) Javelin Strategy & Research, in a phone survey of 5,000 people, found that 3.7 percent had their identity stolen in 2006, down from 4 percent in 2005 and 4.7 percent in 2003.
2) Then the Federal Trade Commission released its report, which showed that ID theft declined slightly last year from 2005, though it remained the top fraud complaint for the seventh consecutive year. The FTC study, based on complaints filed with the commission. The FTC study, based on complaints filed with the commission, ranked Florida fifth among states in ID thefts per capita. South Florida, encompassing Miami to West Palm Beach, was 37th among metropolitan areas.
3) A report released Wednesday by ID Analytics, a San Diego-based consultant, showed New York, California, Nevada and Arizona as the states with the highest risks of ID fraud. New York City, Detroit, Los Angeles and Little Rock, Ark., had the highest rates among cities. Neither Florida nor any cities in the state ranked in the top 10.
As for the FTC study, the sample base was large and the commission has been consistent with its methodology. But how meaningful is it to analyze only complaints made to the FTC? Most victims report ID theft to local police or not at all. (upwards of 60% goes Unreported)
Even if the studies were accurate, they would simply reflect the reality that anything measured by a number can peak only once. Just like real estate prices and the stock market, ID theft can't go up forever. Perhaps it already hit a historic high and is now leveling off.
Frankly, it shouldn't matter. The problem, regardless of whether it's a little bigger or a little smaller than it was a year ago, remains serious.
People need to protect what they can NOT prevent. That is why they need you.
If we read a report that crime is down, we don't start leaving our car doors open and our wallets lying around in public places. We didn't stop consuming vitamin C once scurvy was under control. So we shouldn't let our guard down now, either.
But is it possible we're too worried about ID theft? Is it possible the risks have been overhyped in the media? It won't come as a shock to anyone who has followed recent coverage of Anna Nicole Smith's death and the diaper-wearing astronaut lady, but the answer is yes, it's possible.
ID thefts described in the media -- such as the brazen use of someone's identity to have medical procedures provided -- accurately show how devastating the crime can be to its victims.
What does all this mean for consumers? Don't ditch your shredder just yet.
Everything your Insurance Agent and Banker forgot to tell you about Identity Theft Coverage
By David Bruerd, CITRMS
Pandora’s box has opened and will never close in our lifetime. Identity Theft is rapidly evolving and is quickly becoming a socio economic inevitability. In the last 2 years we have gone from worrying about Joe ‘Dumpster Diver’ to feeling we have no control due to ‘Corporate Data Theft.’
With all the media attention surrounding identity theft lately I have also witnessed a lot of the identity theft protection service providers coming under fire from the media as well. Making statements like… “is it all hype?” or “are these products really worth the money?” and “Should you really have to pay for identity theft protection?”
Pandora’s box has opened and will never close in our lifetime. Identity Theft is rapidly evolving and is quickly becoming a socio economic inevitability. In the last 2 years we have gone from worrying about Joe ‘Dumpster Diver’ to feeling we have no control due to ‘Corporate Data Theft.’
With all the media attention surrounding identity theft lately I have also witnessed a lot of the identity theft protection service providers coming under fire from the media as well. Making statements like… “is it all hype?” or “are these products really worth the money?” and “Should you really have to pay for identity theft protection?”
It would seem that the media makes a valid point.
But then again I remember when TV was FREE and in the not so distant future our kids will be questioning if radio was ever free. Ten years ago I would have told you you were crazy if you told me I would someday pay $2 for a bottle of water.
Most consumers know how to shop for auto, life, health and home owners insurances because they are second and third generation of most of those outsourced risk products. But identiy theft is a fairly new discipline, and in my line of work I hear many consumers say…. “I think I have something through my… (home owners policy, bank etc.)”
You know when someone says “I think I have something through my (home owners policy, credit card, bank etc.)…” it means they have NO clue what they just enrolled in what the fine print might take away. It just seemed like a good idea at the time.
Identity Theft Products and Services are not created equal.
Most of the hundreds of services I have personally evaluated are NOT comprehensive in nature by themselves… and offer little in restoring the WHOLE YOU.
The identity theft protection service industry is fairly simple and for the most part is comprised of 4 basic components.
Reimbursement Policies (also called ID Theft INSURANCE because hey are offered by Property &Casualty Carriers)
They are very inexpensive - Typically $25-$50 per year as an add-on to your home owners policy. In fact I saw a $20K policy the other day that was bundled in for FREE as a ‘value added bonus’ when you purchased an inexpensive computer software security program… which makes you wonder just how helpful it would be in the aftermath of identity theft… the actuarial numbers just don’t add up.
The downside may be Deductibles - like most P&C policies. In this case they could be $300-$500
As the name implies it is a reimbursement policy. You do the work of restoration yourself, ONLY to be ‘reimbursed’ for specifically defined out of pocket expenses as defined in the fine print of the master policy that you didn’t get around to reading before you enrolled. And trust me the insurance agent that sold it to you doesn’t do the work of recovery for you. Identity theft insurance does not cover direct monetary losses.
REIMBURSEMENT means that you will be out of pocket first to be reimbursed later after your claim has gone through the CLAIMS process.
Some of the REIMBURSED Expenses may include:
Lost WAGES – but check to see if lost wages is defined as… AFTER you have exhausted all of your ‘PAID TIME OFF” before you have technically lost any wages.
Legal Fees up to… If the policy covers legal fees, verify what limits apply and if legal work needs to be pre-approved by the insurer. (who determines reasonable and customary)
In these types of policies there are NOT any Credit Monitoring which serves as early detection to catch potential fraudulent dollar losses during the ‘Inquiry Phase vs. the MAXED out credit card phase… and the law holds the consumer partially responsible after 48 hours.
Credit Monitoring (Popular with Financial Institutions)
This is the monitoring of your SSN through one of 3 major repositories to look for credit activity before they turn to opened accounts and losses.
I am a fan of credit monitoring because it is the ONLY system in place to proactively and methodically monitor against this often unavoidable crime. Identity theft is like a poison gas -- nearly undetectable until after the debilitating affects have begun to take place. But Credit Monitoring only does one thing…. it can serve as an early warning system. But as a stand alone service it is like a band-aid on a broken leg. Much like a smoke detector it ONLY warns you that your nightmare may just beginning… it does NOT put out the fire.
Resolution Services are becoming popular as a form of help guidance or assistance in the aftermath of identity theft because they are relatively easy to deliver. They are typically outsourced call centers with Customer Service Reps answering the telephones and letting the victims know what they will need to do to make themselves whole again. I find this to be much like going out to the parking lot and finding your transmission lying on the ground under your car and and dialing a toll-free number on your cell phone to have someone send you a do-it-yourself manual or explain how you will need to crawl under your car with a bag of tools and put that sucker back together to get back on the road of life. I don’t know about you, but I am not much of a do-it-yourselfer.
The most important component in recovering from identity theft is Restoration Services:
Ask any victim of true identity theft about the process and they will tell you the act of becoming a victim is not the horrific part. It is the NEXT 2 years of making themselves whole again. In my weekly workshops I ask “who in attendance has been a victim of ID Theft.” Then the $64,000 question for those that did not raise their hand. How do you know you are NOT a victim right now? Unlike tradtional crimes it would ONLY take the blink of an eye to figure out we were being mugged in the parking lot but according to the FTC, the average amount of time that lapses from the date id theft occurs to the date that it is noticed by the victim is 14 months.
Since identities are stolen by professionals… it ONLY makes since to have it restored by professionals? Restoration is the single most important component of identity theft protection yet it is the hardest to deliver by service providers because it means having an infrastructure of licensed investigators and attorneys on staff. Many services will disguise this by using fancy terms like ‘Recovery Advocate’ to make you believe they will actually do the 'heavy lifting.' Usually a little further into the sentence\paragraph they will use nebulous terms like help, guidance or assistance. Which may mean they only provide a ‘HOTLINE’ for you to call when you are a victim and you are greeted by someone in an outsourced 3rd world call center that offers you ‘Do-It-Yourself’ information you could have downloaded on the net for FREE.
The identity theft protection service industry is fairly simple and for the most part is comprised of 4 basic components.
Reimbursement Policies (also called ID Theft INSURANCE because hey are offered by Property &Casualty Carriers)
They are very inexpensive - Typically $25-$50 per year as an add-on to your home owners policy. In fact I saw a $20K policy the other day that was bundled in for FREE as a ‘value added bonus’ when you purchased an inexpensive computer software security program… which makes you wonder just how helpful it would be in the aftermath of identity theft… the actuarial numbers just don’t add up.
The downside may be Deductibles - like most P&C policies. In this case they could be $300-$500
As the name implies it is a reimbursement policy. You do the work of restoration yourself, ONLY to be ‘reimbursed’ for specifically defined out of pocket expenses as defined in the fine print of the master policy that you didn’t get around to reading before you enrolled. And trust me the insurance agent that sold it to you doesn’t do the work of recovery for you. Identity theft insurance does not cover direct monetary losses.
REIMBURSEMENT means that you will be out of pocket first to be reimbursed later after your claim has gone through the CLAIMS process.
Some of the REIMBURSED Expenses may include:
Lost WAGES – but check to see if lost wages is defined as… AFTER you have exhausted all of your ‘PAID TIME OFF” before you have technically lost any wages.
Legal Fees up to… If the policy covers legal fees, verify what limits apply and if legal work needs to be pre-approved by the insurer. (who determines reasonable and customary)
In these types of policies there are NOT any Credit Monitoring which serves as early detection to catch potential fraudulent dollar losses during the ‘Inquiry Phase vs. the MAXED out credit card phase… and the law holds the consumer partially responsible after 48 hours.
Credit Monitoring (Popular with Financial Institutions)
This is the monitoring of your SSN through one of 3 major repositories to look for credit activity before they turn to opened accounts and losses.
I am a fan of credit monitoring because it is the ONLY system in place to proactively and methodically monitor against this often unavoidable crime. Identity theft is like a poison gas -- nearly undetectable until after the debilitating affects have begun to take place. But Credit Monitoring only does one thing…. it can serve as an early warning system. But as a stand alone service it is like a band-aid on a broken leg. Much like a smoke detector it ONLY warns you that your nightmare may just beginning… it does NOT put out the fire.
Resolution Services are becoming popular as a form of help guidance or assistance in the aftermath of identity theft because they are relatively easy to deliver. They are typically outsourced call centers with Customer Service Reps answering the telephones and letting the victims know what they will need to do to make themselves whole again. I find this to be much like going out to the parking lot and finding your transmission lying on the ground under your car and and dialing a toll-free number on your cell phone to have someone send you a do-it-yourself manual or explain how you will need to crawl under your car with a bag of tools and put that sucker back together to get back on the road of life. I don’t know about you, but I am not much of a do-it-yourselfer.
The most important component in recovering from identity theft is Restoration Services:
Ask any victim of true identity theft about the process and they will tell you the act of becoming a victim is not the horrific part. It is the NEXT 2 years of making themselves whole again. In my weekly workshops I ask “who in attendance has been a victim of ID Theft.” Then the $64,000 question for those that did not raise their hand. How do you know you are NOT a victim right now? Unlike tradtional crimes it would ONLY take the blink of an eye to figure out we were being mugged in the parking lot but according to the FTC, the average amount of time that lapses from the date id theft occurs to the date that it is noticed by the victim is 14 months.
Since identities are stolen by professionals… it ONLY makes since to have it restored by professionals? Restoration is the single most important component of identity theft protection yet it is the hardest to deliver by service providers because it means having an infrastructure of licensed investigators and attorneys on staff. Many services will disguise this by using fancy terms like ‘Recovery Advocate’ to make you believe they will actually do the 'heavy lifting.' Usually a little further into the sentence\paragraph they will use nebulous terms like help, guidance or assistance. Which may mean they only provide a ‘HOTLINE’ for you to call when you are a victim and you are greeted by someone in an outsourced 3rd world call center that offers you ‘Do-It-Yourself’ information you could have downloaded on the net for FREE.
What I advise clients to look for in restoration coverage, is the term ‘Limited Power of Attorney.’ This means the service providers licensed investigator can actually act on the victims behalf and get the work done with the least amount of involvement from the victim. Most consumers are NOT trained in the protocols of identity theft restoration and there are few if any community college offering classes in ‘Identity Theft Restoration 101.’
As a former victim myself and currently a victims advocate, I had a hard time suggesting consumers should even consider buying one more form of outsourced-risk coverage when most of us already feel ‘insurance poor’. But as I looked at the statistical probability of being a victim of identity theft and utilizing my id theft coverage over all other outsourced-risk coverage (combined) it all came down to mathematics.
Considering that even the MOST comprehensive forms of ID Theft protection available are relatively inexpensive comparatively. I had to ask myself…
What is my time worth?
About David Bruerd and the Identity Theft Awareness Group™ (iTAG):
Because of his early efforts as an identity theft advocate, David Bruerd became the nations very first ‘Certified Identity Theft Risk Management Specialist’ and is considered Oregon’s foremost authority on the subject of identity theft. After becoming a victim himself in 2001 he founded the Identity Theft Awareness Group™ (iTAG). iTAG has grown to become a national identity theft education and protection organization. iTAG conducts computerized Risk Assessments and provides onsite Privacy Trainings to help businesses create an ‘Affirmative Defense’ against the often unavoidable data loss or breach. This helps businesses comply with current and proposed identity theft legislation and to help ensure their Benefit Programs accommodate for current and evolving trends in identity theft.
Friday, March 30, 2007
The Fallacy of Fraud Alerts
By Lucy Lazarony • Bankrate.com
If you think putting a fraud alert on your credit report will stop an identity thief, think again.
"Just because a fraud alert is on there does not mean it provides much of a measure of protection," says Judith Collins, director of Identity Theft Partnerships in Prevention at Michigan State University.
A fraud alert is a statement that's placed on your credit report to alert creditors that your private financial information has been or may be compromised. A fraud alert also lists your telephone number. Creditors are asked to call and verify all credit applications made in your name before granting credit.
What good is a fraud alert?Fraud alerts are supposed to curb identity theft by preventing impostors from receiving credit in victims' names. But a fraud alert will only work if a creditor takes the time to read it. This doesn't always happen. And some lenders grant credit without even pulling a person's full credit report.
"A fraud alert is supposed to be a warning to protect a company from fraud, yet they choose to blindly go against it," says Jay Foley, co-executive director of the Identity Theft Resource Center.
Keep in mind that fraud alerts are advisory only. Lenders are not legally obligated to act on them in any way.
Lenders that brush off consumer fraud warnings and ID verification requests could wind up issuing credit to impostors time and time again, and the victims get stuck with a credit mess, time and time again.
Identity-theft victims end up monitoring their credit reports and disputing inaccurate information long after learning of the crime.
Just ask Tracey Thomas of San Francisco. A health care worker stole her identity in late 1999. Thomas learned of the crime in March 2000 and immediately put a fraud alert on her credit report.
"She was still able to get credit in my name with no problem at all. So was I when my credit wasn't trashed," Thomas says. An uneasy pattern set in over the next several months. Posing as Thomas, a thief opened credit accounts, ran up balances and walked away from the bills.
Thomas then went to work informing creditors and the credit reporting agencies that a thief was making charges in her name. As soon as Thomas got her credit report cleaned up, her impostor started charging again.
"She'd wait for me to clean it up and apply for credit all over again," Thomas says. All told, a thief was able to run up $15,000 of charges in Thomas' name.
Since placing a fraud alert on her credit report in March 2000, Thomas has applied for credit on four separate occasions. Three out of four creditors granted her credit without first verifying her identity.
"Only one creditor has ever bothered with my fraud alert," Thomas says. "One credit card company was responsible enough to see there was a fraud alert and obey it."
Can politicians help?
Legislators are looking at ways to make fraud alerts more effective deterrents of identity theft.
A U.S. Senate bill S. 223 introduced by Sen. Dianne Feinstein, D-Calif., would give the Federal Trade Commission the authority to impose fines on creditors that fail to heed fraud alerts.
A state Senate bill in California would require banks and retailers to honor all fraud alerts.
According to SB 25, which was passed by the California Senate on June 4, any business that pulls a credit report with a fraud alert must contact the consumer at the phone number on the alert before approving new loans and credit.
Any federal bills aiding identity-theft victims are likely to be addressed later this year when the Fair Credit Reporting Act, which is up for renewal, is reviewed.
"It's going to require legislation," Foley says. "Voluntary programs to check fraud alerts are already in place and they don't work 100 percent."
Credit reporting agencies, while making it easier to place fraud alerts on a consumer credit file with a new one-call system, are no help when it comes to enforcing fraud alerts.
"It's incumbent on credit grantors," says Jeffrey Junkas, a spokesman for TransUnion. "We've done our part in informing credit grantors of a consumer's wishes in the fraud alert."
As long as some credit grantors continue to ignore fraud alerts, identity-theft victims and their credit reports will remain vulnerable to new credit assaults.
"There's a very high stress level," says Collins, whose identity was stolen almost four years ago.
"The problems go on and on. Once an identity is stolen, it's gone."
A thief could strike again at any time. "You never know," Collins says. "I still don't know."
If you think putting a fraud alert on your credit report will stop an identity thief, think again.
"Just because a fraud alert is on there does not mean it provides much of a measure of protection," says Judith Collins, director of Identity Theft Partnerships in Prevention at Michigan State University.
A fraud alert is a statement that's placed on your credit report to alert creditors that your private financial information has been or may be compromised. A fraud alert also lists your telephone number. Creditors are asked to call and verify all credit applications made in your name before granting credit.
What good is a fraud alert?Fraud alerts are supposed to curb identity theft by preventing impostors from receiving credit in victims' names. But a fraud alert will only work if a creditor takes the time to read it. This doesn't always happen. And some lenders grant credit without even pulling a person's full credit report.
"A fraud alert is supposed to be a warning to protect a company from fraud, yet they choose to blindly go against it," says Jay Foley, co-executive director of the Identity Theft Resource Center.
Keep in mind that fraud alerts are advisory only. Lenders are not legally obligated to act on them in any way.
Lenders that brush off consumer fraud warnings and ID verification requests could wind up issuing credit to impostors time and time again, and the victims get stuck with a credit mess, time and time again.
Identity-theft victims end up monitoring their credit reports and disputing inaccurate information long after learning of the crime.
Just ask Tracey Thomas of San Francisco. A health care worker stole her identity in late 1999. Thomas learned of the crime in March 2000 and immediately put a fraud alert on her credit report.
"She was still able to get credit in my name with no problem at all. So was I when my credit wasn't trashed," Thomas says. An uneasy pattern set in over the next several months. Posing as Thomas, a thief opened credit accounts, ran up balances and walked away from the bills.
Thomas then went to work informing creditors and the credit reporting agencies that a thief was making charges in her name. As soon as Thomas got her credit report cleaned up, her impostor started charging again.
"She'd wait for me to clean it up and apply for credit all over again," Thomas says. All told, a thief was able to run up $15,000 of charges in Thomas' name.
Since placing a fraud alert on her credit report in March 2000, Thomas has applied for credit on four separate occasions. Three out of four creditors granted her credit without first verifying her identity.
"Only one creditor has ever bothered with my fraud alert," Thomas says. "One credit card company was responsible enough to see there was a fraud alert and obey it."
Can politicians help?
Legislators are looking at ways to make fraud alerts more effective deterrents of identity theft.
A U.S. Senate bill S. 223 introduced by Sen. Dianne Feinstein, D-Calif., would give the Federal Trade Commission the authority to impose fines on creditors that fail to heed fraud alerts.
A state Senate bill in California would require banks and retailers to honor all fraud alerts.
According to SB 25, which was passed by the California Senate on June 4, any business that pulls a credit report with a fraud alert must contact the consumer at the phone number on the alert before approving new loans and credit.
Any federal bills aiding identity-theft victims are likely to be addressed later this year when the Fair Credit Reporting Act, which is up for renewal, is reviewed.
"It's going to require legislation," Foley says. "Voluntary programs to check fraud alerts are already in place and they don't work 100 percent."
Credit reporting agencies, while making it easier to place fraud alerts on a consumer credit file with a new one-call system, are no help when it comes to enforcing fraud alerts.
"It's incumbent on credit grantors," says Jeffrey Junkas, a spokesman for TransUnion. "We've done our part in informing credit grantors of a consumer's wishes in the fraud alert."
As long as some credit grantors continue to ignore fraud alerts, identity-theft victims and their credit reports will remain vulnerable to new credit assaults.
"There's a very high stress level," says Collins, whose identity was stolen almost four years ago.
"The problems go on and on. Once an identity is stolen, it's gone."
A thief could strike again at any time. "You never know," Collins says. "I still don't know."
Welcome to the Team !!!
Hello and welcome,
Identity Theft is in the news everyday. The identity theft protection industry is in its infancy. There is NO doubt this arena will mature just like other outsourced risk categories (i.e auto, life, health and home) It is being compared to the birth of the computer virus at the turn of the new millenium. Experts estimate that over 70% of the U.S consumer public will own some form of identity theft protection in the next 36-48 months. In other words it will go through its economic 'S Curve' at a break neck speed.
Identity Theft is in the news everyday. The identity theft protection industry is in its infancy. There is NO doubt this arena will mature just like other outsourced risk categories (i.e auto, life, health and home) It is being compared to the birth of the computer virus at the turn of the new millenium. Experts estimate that over 70% of the U.S consumer public will own some form of identity theft protection in the next 36-48 months. In other words it will go through its economic 'S Curve' at a break neck speed.
Someone will market protection to them... will it be you?
This is your opportunity to posture yourself in front of your existing clients or sphere of influence as the authority on the subject. As the consumer public recognizes the social proof of identity theft that surrounds them, you will be their 'point of reference.'
A rising tide raises ALL ships... BUT your boat has to be in the water !!!
Empowering individuals\businesses with the information you will glean by your association with us will open numerous doors and help you reach all of your financial goals.
We are committed 110% to your success in this business.
Enthusiastically,
David Bruerd, CITRMS
Holly Yoes
We are committed 110% to your success in this business.
Enthusiastically,
David Bruerd, CITRMS
Holly Yoes
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