Identity Theft Credit Repair

Identity Theft and Paper Checks. The Stuff of Horror Movies!

Fri, 24 Aug 2007 17:03:21 +0000

Do you know that if a thief commits identity theft and fraud with a paper check instead of with a credit card that you have much less protection by law and it will cost you a lot more money?

Read this article by Liz Pulliam Weston. The whole article is here or you can go here to read it in original form.
http://articles.moneycentral.msn.com/Banking/FinancialPrivacy/
YourPaperCheckIsAThiefsBestFriend.aspx?page=1

For Identity Theft protection information go to
http://www.identitytheftcreditrepair.net

Your paper check is a thief’s best friend. A crook can use just one check to steal your money and ruin your good name. And paper gives you far less protection than a credit or debit card. By Liz Pulliam WestonMillions of Americans unknowingly carry ticking time bombs in their wallets and purses. The potential instrument of their financial destruction? Paper checks. Familiarity has bred comfort with the lowly check, but identity-theft experts say a criminal who swipes a single check — or even a deposit slip — from your checkbook can cause far more long-lasting damage than one who gets hold of your plastic. “If someone steals your credit or debit card, you call your bank, the card is canceled and replaced and all those (fraudulent) charges are going to disappear,” said Jay Foley, co-founder of the Identity Theft Resource Center in San Diego. “If someone steals a check . . . you may not be done (dealing) with that for a couple of years.”The lack of federal protections for paper transactions, widely varying bank policies on how victims should be treated and the potential criminal repercussions of bad checks can create an ongoing nightmare for consumers. And while the number of electronic transactions through credit and debit cards passed those by paper check for the first time in 2004, checks still represented the largest amount of transactions — $40 trillion worth.Consequences more seriousSome victims the center has counseled, Foley said, found themselves the subject of arrest warrants after thieves hijacked their checking accounts and wrote bad checks. The more persistent or well-traveled the thief, the worse the potential fallout for the victim.One criminal “can write 30 bad checks and drop them in 30 different jurisdictions,” Foley said. “Guess who gets to deal with … 30 different merchants, 30 different collection agencies and 30 different law enforcement jurisdictions and prosecutors? The person whose name is on the check.”

Check fraud can take a variety of forms, including:

* Forgery. Legitimate checks are stolen and signed or endorsed by a thief. Sometimes the fraudster will swipe checks from the middle of a checkbook or make off with a deposit slip to delay detection.

* Counterfeiting. Criminals can make copies of legitimate checks using color copiers, or simply order a new batch of checks from a printer using the victim’s account information.

* Alteration. A thief changes the amount or payee of a legitimate check, sometimes with the help of chemical agents (known as “check washing”).

* Paperhanging. Writing checks against a closed account is one of the most common forms of check fraud.

* Account takeover. Thieves pose as legitimate customers or add themselves to legitimate accounts and then change the address or make other changes in the account to gain access.

* New account fraud. Thieves use a victim’s identity to set up a new account, often depositing a fraudulent check and then writing bad checks against the account.

Check fraud rises as checks fade

Whatever the method, check-related fraud is definitely on the rise, according to bankers, retailers and fraud experts. Criminals attempted to pass more than $5.5 billion in fraudulent checks in 2003, the latest year of the American Bankers Association’s biennial survey on the issue. That was a 27% increase from 2001.

Banks’ check-related losses

Type of fraud Losses

Forged signatures 24%

NSF checks 17%

Counterfeit 15%

Closed accounts 10%

Forged endorsements 7%

Kiting 4%

Alterations 3%

Stop payment 3%

Other 17%
Source: American Bankers Association

“The attempts have gone up dramatically,” said ABA spokesman John Hall. “The fraudsters are trying newer and improved schemes all the time.”

Hall said banks have done a good job at detecting and thwarting most check fraud, capping the institutions’ actual dollar losses at $677 million — a slight decline from $698 million in 2001.

Hall also insists that consumers who detect and report check fraud promptly to their banks “will always be made whole.”

You’re on your own

But identity theft experts, consumer advocates and federal regulators paint a different picture.

Paper-check transactions don’t have the federal protections that cover electronic transactions such as credit card, debit and automatic payments. A consumer isn’t required to pay a fraudulent charge on a credit-card bill, for example, until the issuer investigates and resolves the dispute, which it’s required to do within two billing cycles or 90 days, whichever is longer. A fraudulent debit charge or automatic payment must be investigated within 10 days, or within 45 days if the bank credits the disputed amount (up to $2,500) to the consumer.

By contrast, users of paper checks are at the mercy of their banks and varying state laws.

“There’s no (federal) regulation that covers lost or stolen checks,” said FDIC spokesman David Barr. “It’s really on a bank-by-bank basis.”

To avoid liability for fraudulent checks drawn on their accounts, customers typically must notify their banks within 60 to 90 days of when the bogus transactions appear on their account statements, said Tom Fox, a financial services attorney in Washington, D.C.

The timeline and procedure for reporting fraud is generally spelled out by the consumer’s deposit agreement with the bank, Fox said.

The ID theft center’s Foley said banks’ policies toward victims seem to vary enormously, with some resolving fraud reports relatively quickly and others maintaining an attitude that their customers are guilty until proven innocent.

Differing bank responses are among the reasons he recommends victimized consumers report fraud in writing, sending the letters by certified mail, return receipt requested, to create a paper trail in case a dispute drags on.

“Too many people call up their bank and are told, ‘Okay, we’ll take care of it,’ and it doesn’t happen,” Foley said.

Victims may also need to contact merchants that accepted bad checks to head off or resolve collection actions. If the bad checks were large — several hundred dollars or more — the case may be turned over to local police or prosecutors. Victims can ask the merchants if that’s the case, or check with the county clerk in the area where the check was passed to see if arrest warrants have been issued in their names. If that’s the case, victims need to contact the appropriate law enforcement agency and provide documents to get the warrant killed.

And victims should hang on to all the paperwork generated by this battle, Foley said, because the fight may not be over.

“After you get it all straightened out,” Foley said, the thief can “resurrect the account and do it again.”

8 precautions for check-writers
Fraud experts recommend the following steps to reduce your risk of becoming a victim:

Lock up your checks. Carrying a checkbook around with you is asking for trouble. So is leaving checks or a checkbook out in the open. Secure your checks in a locking file cabinet or other safe location and shred any check, used or blank, before discarding. If you’re mailing a check, do so at the post office rather than leaving it out for the mail carrier to pick up. Pick up new check orders at the bank or have them sent to a locking mailbox.

Write checks only to merchants and people you trust. Anyone who has your check has the information they need to commit check fraud. “Every time you go to the supermarket and write a check, you’re handing over your account number,” said Fox, who counsels financial institutions about laws governing paper and electronic transactions.

Use gel pens when writing checks. Frank Abagnale, the reformed fraudster who inspired the movie “Catch Me If You Can,” recommends this method to discourage check washing. Gel pens resist the chemicals used to erase checks.

Use credit or debit cards while shopping. As noted above, you have more protection with electronic transactions than with paper checks.

Consider online bill payment and other electronic methods. The fewer checks you have floating around in the mail, the better. While you’re at it, you might consider suspending paper statements as well, as I discussed in “Go paperless for safer banking.”

Monitor your bank statements closely. Failing to detect and report check fraud within a couple of months could leave you on the hook for any losses.

Report stolen checks to the police. You may have to insist they take a report, since some departments are still reluctant to handle such crimes. But a police report can be invaluable in convincing banks and merchants that a theft occurred.

Close compromised checking accounts immediately. Once a thief has written a bad check drawn on your account, the account number may be reported to check verification companies, which may make it difficult if not impossible for you to get legitimate checks accepted. If a thief has opened a new account pretending to be you, your name may also be in ChexSystems’ database, which could make it hard for you to open future accounts. You can find out what ChexSystems is saying about you by ordering a free copy of your report using its Web site or by calling 800-428-9623.

Liz Pulliam Weston’s column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.

That’s pretty scary stuff. Horrifying actually. Be careful! It’s a jungle out there.
Stay safe. Prevention is MUCH better than recovery!

Clyde Blaco

For a free Identity Theft Checklist go to
http://www.identitytheftcreditrepair.net

Identity Theft On The Dr. Phil Show!

admin — Sun, 19 Aug 2007 16:27:58 +0000

The week of July 16, 2007 Dr. Phil had a show about identity theft. The main point that he wanted to get across is that people are too trusting and that the person who takes advantage of that trust is often a friend, family member, or co-worker.

Identity theft can happen anywhere, even at your job. In fact, studies show that the majority of identity theft happens from the work environment.

Dr. Phil wanted to see just how easily this fraud occurs, so his staff members do a little snooping around the Dr. Phil offices at night to see what personal information they can find.

The Dr. Phil office is described as a typical office. Within five minutes at least a half dozen identities are found that could have been stolen. The items that were found that could have been stolen and used were

an online order form in the trash
a credit card bill lying on a desk
a student loan bill left out
a cell phone bill in the trash
a paycheck sitting out on a desk

The student loan paperwork usually has a Social Security Number on it somewhere. The credit card bill could have been used to open another credit account. The paycheck could have been stolen and deposited or used to secure credit or maybe even a job under your identity.

One of the workers who was “caught” being lax tore up her bill and threw it in the trash. She was then shown that it could be re-assembled in about 30 seconds. The correct method of destroying discarded documents is with and inexpensive cross-cut shredder.

To see the text and pictures from the Dr. Phil’s site go to http://drphil.com/shows/show/816/

Stay Safe! Don’t be an Identity Theft victim. Stop Identity Theft before it happens. Prevention is MUCH better than recovery!

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net

Identity Theft ATM Card Scam

admin — Sun, 19 Aug 2007 05:18:58 +0000

This is a very slick scam that everyone should be aware of. Don’t be fooled because the people reporting it are from England. It works equally well on ATM’s anywhere in the world.

The first thing you should be aware of about using any ATM is your surroundings. Are you in sight of other people or are you alone and isolated. If other people are around should they be there? Are they employees, customers, are they a bit too interested… or too disinterested? Look around and be aware! What feelings do you have? What are your guts telling you?

Now, what about the machine itself? If it looks the least bit suspicious find another one. Are there any loose parts or things sticking out that look unusual? Get down and take a close look at the card reader. From a standing position it may look just fine but it may not pass close inspection.

One of the things that makes this scam seem innocent is that you will be able to use your card and do what you want to do at the machine. It will be several hours later before your harvested information can be converted to a cloned card. Then your troubles will begin in earnest.

Tell your friends about this and send them here to see for themselves.

Don’t be an Identity Theft victim. Stop Identity Theft before it happens. Prevention is MUCH better than recovery!

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net

Identity Theft Is The Bonus For Break and Enter Theft. How Safe Are Your Locks?

admin — Sun, 15 Jul 2007 00:56:43 +0000

Lock Bumping and Bump Keys

I was shocked when I saw this. I really thought a dead bolt lock was nearly foolproof except from super spy types. After seeing this video re-think where you keep important identity information in your home.

Even your computer may have private information that the thief could access if they take your computer.

Where do keep your bills, mortgage, social security card, passport, and other sensitive documents? Maybe they should be in unusual locations in the home. Some documents that you don’t need too often might be best stored in a safe deposit box.

Stay safe. Prevention is MUCH better than recovery!

Clyde Blaco

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net

Free Credit Report? Maybe, Maybe Not, Read The Fine Print

admin — Sun, 15 Jul 2007 00:32:43 +0000

The same credit reporting sites that are required by the federal government to provide free credit reports once a year are owners or closely related to sites that charge for the reports. The reports offered for sale to the consumer are often bundled with other credit-related services and confusing offers.

Read the article for advice on how to get the free reports, understand what they mean, and get the suggested alternatives that may work well for you.

Credit Card Identity Theft At Restaurants May End With This New Technology

admin — Sun, 15 Jul 2007 00:31:18 +0000

A new portable card scanner that let’s the customer swipe their own credit card at the table will close the door to at least one

Identity Theft Ring’s Hi-Tech Equipment Seized

admin — Fri, 13 Jul 2007 22:34:07 +0000

The seized equipment was used to manufacture counterfeit credit cards that are linked to real people’s stolen identity information. The thieves then max out the credit cards buying high end retail merchandise (Coach handbags, Chanel sunglasses, cameras, iPods, etc) that they can easily re-sell or return to the store for cash. The ringleader’s wife sold $56,000 per month of merchandise on her eBay account.

The authorities estimate that there were at least 400 victims and more to come because the ring had another 1000 blank credit cards. The total amount of goods stolen is estimated in the

100’s of thousand of dollars of merchandise stolen and charged to unsuspecting victims from all over the country

One suspect had been President of an investment company. The authorities think the identity of that company’s customers was stolen were used to make the counterfeit credit cards.

Stay safe. Prevention is MUCH better than recovery!

Clyde Blaco

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net

Bank Identity Theft, Customer’s Records In Trash On The Curb

admin — Fri, 13 Jul 2007 22:18:53 +0000

I know people that never balance their checkbooks or even review their credit card statements carefully. They either get confused by financial matters or feel like banks and credit card companies don’t make mistakes. Personally, there is hardly a month tha passes that we don’t find some errors on our bills or statements and have to dispute them.

As good as most companies are they still have human beings that can and do make mistakes. Take a look at this video. Someone at the bank made a decision to throw away customer records and loan applications with the customer’s personal identity information on it.

The records should have been shredded. They should have never made it to the trash whole.

Watch this video to see how several New York City Chase branches carelessly threw out their customers’ information in the state with the nation’s highest rate of identity theft. Customers’ names, dates of birth, social security numbers, phone numbers, addresses, and account numbers were all found in publicly accessible trash left out on the curb by their city’s largest bank.

Stay safe. Prevention is MUCH better than recovery!

Clyde Blaco

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net

Identity Theft for New Mud Flaps, “It’s All Good!”

admin — Fri, 13 Jul 2007 21:52:37 +0000

Wanted in four states but has a new truck with all the toys thanks to you!

Stop Identity Theft before it happens. Prevention is much better than repair and recovery!

These commercials are fun but the consequences aren’t. We want to be your Identity Theft Resource Center. Keep coming back for more information.

Stay alert, be informed, implement the safeguards that you learn, and stay safe!

Recovering From Identity Theft, A Young Couple’s Story

admin — Fri, 13 Jul 2007 16:52:37 +0000

A stolen social security number resulted in $30,000 of fraudulent charges and a damaged credit report. Stopping the identity theft and working with the creditors to repair their credit took three hours of phone calls every night after working a full day at his job.

The ID Theft Affidavit is one form that can be filled out to provide information to all of the creditors and agencies that will be involved with restoring a person’s identity and credit rating. Some creditors and agencies may still require additional

Stay safe. Prevention is MUCH better than recovery!

Clyde Blaco

For a free Identity Theft Protection Checklist go to
http://www.identitytheftcreditrepair.net