NewsAlerts

Alabama Woman Gets 10 Years In Prison For Fake Tax Returns

Fri, 24 May 2013 01:00:00 -0700

The leader of an identity theft ring, Rhashema Deramus, was sentenced to 10 years in prison for her involvement in an identity theft and tax refund scam.

The ring stole people's names, birthdates and Social Security numbers in order to file fraudulent tax returns and directed the refunds to pre-paid debit cards, according to the U.S. Department of Justice.

Deramus was ordered to pay $1,198,063 in restitution for the fraudulent refunds and more than 7,000 stolen identities.

She was caught when her vehicle was identified in connection to a string of suspicious ATM withdrawals. Officers found 65 pre-paid debit cards in other people's names and a computer containing stolen personal information in the vehicle.

More than 800 of the identities were stolen from Alabama's Troy Regional Medical Center.

Follow our IDentity Theft 911 blog for more information on the latest tips to help safeguard you and your family from becoming a victim of identity theft.

Homeland Security Discovers Flaw In Its Cyber Database

Fri, 24 May 2013 01:00:00 -0700

The Department of Homeland Security discovered a vulnerability in an outsourced vendor's database used for processing employee background checks, exposing personal information of tens of thousands of past and current employees.

The database was potentially accessible by unauthorized users since 2009. Employees working in the main Homeland Security headquarters as well as the office for Customs and Border Protection, Immigration and Customs Enforcement are at risk of identity theft as names, Social Security numbers and dates of birth are stored in the database.

The department currently has no evidence that any personal information was lost or stolen as a result of the data breach. However, as a safety precaution they immediately addressed the breach and notified the potentially affected employees.

This is not the first time a federal government department suffered a cyber-security problem. In 2007, another database vendor failed to secure unclassified computers at the headquarters of Transportation Security Administration, resulting in a hacker group stealing sensitive information.

Follow our IDentity Theft 911 blog for more information on the latest tips to help safeguard you and your family from becoming a victim of identity theft.

Idaho State University Fined $400 Thousand For Data Breach

Thu, 23 May 2013 01:00:00 -0700

Idaho State University's Pocatello Family Medicine Clinic has agreed to pay a fine of $400,000 for alleged HIPAA violations that date back to Aug. 9, 2011.

The clinic disabled a firewall for at least 10 months, leading to the exposure of personal data of 17,500 patients.

According to the Department of Health and Human Services, ISU didn't adequately implement security measures sufficient to reduce the risks of a breach, conduct an analysis of the risk, or implement procedures to regularly review records.

ISU has entered into a Corrective Action Plan agreement that will address the violations and its failure to ensure uniform implementation of HIPAA Security Rule protections at its clinics.

Follow our IDentity Theft 911 blog for more information on the latest tips to help safeguard you and your family from becoming a victim of identity theft.

Identity Theft Scams Resulting From Tragedy

Thu, 23 May 2013 01:00:00 -0700

Be cautious of financial fraud scams asking for donations to help the victims of the tornado that hit Moore, Okla. on Monday.

Scammers can create emails and social media accounts that look authentic and resemble the Red Cross or another natural disaster organization. By clicking the links provided in these emails, those wanting to donate are unintentionally downloading spyware to the computer, tracking history and recording personal information like credit card and bank numbers.

Anyone wanting to support the victims of the Oklahoma tornado - or any other disaster - should refrain from clicking links on emails or Internet sites and providing personal information when called on the phone. Often these emails, phone calls and fishing scams are ignored, but when genuine emotion and desire to help victims of a tragedy are top of mind, it's easy to forget about the potential of foul play.

Learn more about how to donate to an Oklahoma tornado relief fund here without the fear of falling victim to financial fraud or identity theft.

Follow our IDentity Theft 911 blog for up to date information on the latest tips and techniques scammers are using and helpful tricks to avoid becoming a victim.

Yahoo Japan Data Breach Exposed 22 Million User IDs

Wed, 22 May 2013 01:00:00 -0700

Hackers compromised a user data file from Yahoo, Japan's largest Web portal. Yahoo stated that it isn't certain if the file containing 22 million user IDs was leaked or not, but cannot deny the possibility.

Turning off Internet access to the company's servers was the only way Yahoo could halt the attack.

Yahoo said it is contacting affected users and added a tool on the homepage for users to check if their ID was at risk from the suspected breach. Yahoo has since strengthened network security and recommended that all users change their passwords as an extra measure of security.

Last month Yahoo Japan discovered malware on its servers and added a "Secret ID" capability, which allows users to use an ID separate from the one that appears publicly to log on.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Low-income Families Hacked Through Federal Phone Program

Wed, 22 May 2013 01:00:00 -0700

More than 170,000 personal records from the federal government's Lifeline program have been hacked and published online. The records were accessed through an Oklahoma City-based cell phone distributor, TerraCom Inc. and their affiliate YourTel America Inc.

The personal information included Social Security numbers, home addresses and financial account information. Lifeline is a federal program providing millions of low-income families with affordable phone service.

TerraCom Inc. and YourTel America Inc. were unaware of the hack and Scripps News uncovered the information on the web tracing it back to the Lifeline program and distributors. When Scripps informed dozens of victims of the hack they were "shocked" to learn about the news.

Multiple forms of personal information are needed to qualify for Lifeline phone services, including a driver's license number, Social Security number and Medicaid cards. An Indianapolis-based Lifeline distributor claims their employer has never asked about how they destroy this information as the majority of it is kept in a notebook or captured on a personal camera. This is a strict violation of Lifeline policy.

Follow our IDentity Theft 911 blog for more information on the latest tips to help safeguard you and your family from becoming a victim of identity theft.

House To Consider Privacy, Protection And Security Act

Tue, 21 May 2013 01:00:00 -0700

Georgia Rep. Hank Johnson introduced the Application Privacy, Protection and Security (APPS) Act to the House of Representatives Friday.

The act aims to help protect the privacy of users who use applications like photo or location-sharing on their mobile devices. The Federal Trade Commission would enforce the act and state attorneys general will be able to bring civil actions on behalf of consumers.

The act will require app developers to include a data-retention policy and allow users to request the developer to stop collecting data and delete stored data.

According to Rep. Johnson, consumers who helped build the legislation called for simple controls over privacy, security to prevent data breaches, and a notice of data collection on the device.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Court Data Breach Affects More Than 1 Million In Washington

Tue, 21 May 2013 01:00:00 -0700

The Washington court system's public website was hacked early this year, potentially compromising more than 1 million Social Security and driver's license numbers of Washington residents within the court's system.

The Administrative Office of the Courts sent a letter to 94 victims whose Social Security numbers were obtained through a "fishing" scam. The courts also believe upwards of 160,000 Social Security numbers may have been obtained as a result of the data breach.

In addition to the Social Security numbers, the hackers may have had access to more than 1 million driver's license numbers belonging to residents in the court system. Any Washington resident who has received a petty speeding ticket to a serious criminal offense is vulnerable to the attack.

An IT operations manager for the Washington court system believes the attack derived from a weakness in an Adobe software program on the site. The portion of the database was password controlled but not encrypted, giving the hackers easy access.

For more information on the ways to help safeguard you and your small business from data breaches follow our IDentity Theft 911 blog.

Identity Theft Victim Jailed In Place of Perpetrator

Mon, 20 May 2013 01:00:00 -0700

When a friend told Kurt Millard that a local bail bondsman had an arrest warrant for him for failure to appear in court, Millard went to the police station to resolve the mistake. Police arrested Millard, 26, of Joplin, Mo.

The arrest warrant, however, was actually intended for another man. Police say when Jesse Boyd was arrested on vehicle tampering charges, he provided police with Millard's birth date, Social Security number and former address.

The jail did not learn that Millard's and Boyd's fingerprints did not match until Monday due to delayed communication from the Automated Fingerprint Identification System, according to the sheriff's office.

Millard was released. Boyd remains at large. In addition to the existing charges against him, Boyd will now also face additional charges of forgery and identity theft, according to the Jasper County Sheriff's Department.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Repeat Offenders Strike Out With Baseball Team Theft

Mon, 20 May 2013 01:00:00 -0700

Fresno police executing a search warrant say they found the emergency information of the Clovis North baseball team, Social Security cards, driver's licenses and credit cards in the possession of a couple who have extensive criminal histories.

Police say they are not sure if Jack and Jennifer Fenton, the couple arrested in connection with the stolen identities, committed the original theft of the information or bought the stolen info from a third party.

Clovis Unified administrators say the emergency cards were stolen two years ago from the baseball coach's vehicle.

According to police, the couple has previously victimized hundreds of people, but the information of the baseball player's information has not yet shown signs of misuse.

Charges are still pending in this investigation, but Jack Fenton is already in jail on a theft conviction. Jennifer is facing a misdemeanor identity theft charge.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

New Team Takes Helm Of Global Credit Card Security Group

Fri, 17 May 2013 01:00:00 -0700

The Payment Card Industry Security Standards Council (PCI SSC), a global organization that sets credit card security standards for more than 650 member organizations worldwide, has announced the 2013-2015 Board of Advisors election results.

The new board members will be integral in developing the standards that member organizations agree to follow in order to increase data security when managing credit card payments. Major credit card brands such as American Express, Discover Financial Services, MasterCard Worldwide and Visa Inc. founded the organization in 2006.

The council now represents a wide variety of global organizations, and new board members hail from global organizations such as Bank of America, Cisco, Middle East Payment Systems, Woolworths Limited, Starbucks Coffee Company and British Airways.

The board will aim to support the Security Standards Council's mission of raising awareness and driving adoption of PCI Standards, like ensuring the safe handling of cardholder information, worldwide.

The PCI SSC is responsible for the development, management, education, and awareness of the PCI security standards, and other standards that increase payment data security.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Two Companies Seek To Boost Android Security

Fri, 17 May 2013 01:00:00 -0700

Two major players in the telecommunications field have taken action to improve the image of the Android platform.

The telecommunications company Qualcomm has signed a deal with security specialist Kapersky to preinstall antivirus tools on Android devices running Qualcomm's Snapdragon processor.

The security application will be free for a period of time, then users will be asked to upgrade to a paid service.

Verizon has announced that it teamed up with American software company, VMware, to separate work and life profiles on Android devices. They hope to make Andriod more business friendly by promising tight data security with a dual persona solution, which enables a single device to house two separate user identities.

If an employee leaves the company, for example, the IT department could wipe out company data but cannot access the personal end of the device.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Bronx Woman Indicted In Charity Scam

Thu, 16 May 2013 01:00:00 -0700

Nouel Alba, 37, was indicted on charges of scheming to defraud and identity theft, according to the Bronx District Attorney's Office.

Alba is accused of falsely claiming to be an aunt of one of the 20 school children killed at the deadly shooting at Sandy Hook Elementary School in Newtown, Conn. late last year.

Prosecutors say that Alba posted photos of a child and solicited donations on a Facebook page -totaling $240 in a PayPal account- claiming the funds would be used to help pay for his funeral.

Alba was first arrested in December and charged with one count of making false statements to federal agents. Alba denied being involved in a scam during news appearances in December.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Identity Theft Ring Broke Into 800 Mailboxes

Thu, 16 May 2013 01:00:00 -0700

Thieves broke into approximately 800 mailboxes and numerous cars in Jackson County, Ore. to obtain checks and personal documents that could be used to generate cash.

Two suspects, Eduardo Navarro and Dallas Lee Tedford, are in custody and another two are being sought in connection with the ring, according to police reports.

Police believe up to 20 thieves may be associated with the identity theft ring.

Thieves used stolen mail to forge checks and illegally attain debit and credit cards in the victims' names. While many people are concerned about online identity theft and fraud, the majority of identity theft still occurs in very low-tech ways, such as through theft from mailboxes, cars and homes, and by picking through trash for discarded documents.

According to police reports the thieves used a smartphone app to take pictures of stolen checks to upload the money to prepaid debit cards, and they rewrote new amounts on stolen checks.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Florida Cracking Down On Welfare Fraud

Wed, 15 May 2013 01:00:00 -0700

Department of Children and Families (DFC) Secretary David Wilkins announced Florida is launching a new technology to crack down on welfare fraud.

The new program will ask applicants a series of personalized questions, flag applications made on behalf of prisoners or the deceased, and monitor websites for those who are selling, stealing or buying electronic benefit cards, which are used to authorize transfers of government benefits from a Federal account to a retailer account. Thieves register for a card through the online system using a stolen identity of an eligible recipient and divert the cards to their addresses.

The program is projected to save $60 million dollars a year according to DFC.

DCF received federal funds from the U.S. Department of Agriculture -which oversees food stamps- to pilot a program that uses computer technology similar to what credit card companies rely on to analyze suspicious billing patterns to spot fraud before the payment goes through.

Florida is a hotbed for identity theft. According to the Federal Trade Commission's 2012 Consumer Sentinel Network Report, the state is the country's per capita leader in identity theft.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

North Carolina Anesthesiologists Report Data Breach

Wed, 15 May 2013 01:00:00 -0700

Hackers broke through a security flaw on the Presbyterian Anesthesia Associates website to access the healthcare provider's database.

The database included personal information such as names, contact information, dates of birth and credit card numbers for 9,988 people.

Presbyterian Anesthesia Associates has hired an identity theft firm to provide free fraud monitoring and insurance for people whose data was compromised, and the hospital claims that no medical data was taken in the attack.

Presbyterian Anesthesia notified the FBI and an investigation has been launched.

North Carolina is one of 46 states that require organizations to disclose data breaches to the people affected and to the state justice department.

According to The Third Annual Survey on Medical Identity Theft by Ponemon Institute, 6 percent of identity theft cases came from a data breach of a healthcare provider or insurer in 2012.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Social Media Helped to Catch Identity Thieves

Tue, 14 May 2013 01:00:00 -0700

A Florida couple is facing up to 12 years in prison and hefty fines after attempting to sell stolen identities. Nathaniel Troy Maye and Tiwanna Tenise Thomason pled guilty to aggravated identity theft and possession of unauthorized access devices.

The couple met with an undercover IRS informant at Morton's steakhouse, where they handed the informant a USB drive containing 50,000 identities to be used to file fraudulent income tax returns.

The photo Maye took of his meal was used to correctly identify him and link him to the crime. The photo, posted to the photo-sharing social media site Instagram, helped police locate and identify the thieves.

The drive they acquired from the couple contained 50 identities and hidden data linking the drive to "Troy Maye," according to IRS agents.

When the IRS agents arrested the couple, they found two additional flash drives containing as many as 55,000 stolen identities in Thomason's apartment.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Kansas Seeks New Identity Theft Law

Tue, 14 May 2013 01:00:00 -0700

Kansas legislators voted to grant state Attorney General Derek Schmidt more power to track and prosecute identity thieves. A new bill places identity theft crimes under the Kansas Consumer Protection Act, according to Schmidt.

If Governor Sam Brownback signs the bill into law, the Attorney General's office will be able to field identity theft complaints directly from the public and impose fines on perpetrators.

The new law would be in addition to the current law, which states that identity theft is a crime.

The bill passed 39-1 in the Senate and unanimously in the House. It is named the Wayne Owen Law, honoring the late Sergeant at Arms in the Kansas House of Representatives who had been involved in reporting and fighting identity theft.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

Denver Identity Theft Ring Busted

Mon, 13 May 2013 01:00:00 -0700

Ten suspects have been arrested in connection to an identity theft ring in Jefferson County, Colo. Investigators are still searching for the ring leader and three additional suspects.

The ring is accused of breaking into businesses, cars and mailboxes to attain personal, identifying information. An estimated total cost of what they stole came out to $26,000, according to police reports.

The suspects used the information to make fake IDs, checks and to apply for credit cards, according to the Jefferson County district attorney, Peter Weir.

One victim reported that the thieves broke into a retail store and stole a safe containing the personal information of every employee. Months later he started receiving bounced checks and credit card statements.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Biometric Technology May Help Thwart Medical Identity Theft

Mon, 13 May 2013 01:00:00 -0700

More than half of the 80 healthcare organizations surveyed by the Ponemon Institute disclosed they had fallen victim to one or more medical identity theft schemes in the past year.

Medical identity theft schemes involve criminals using the identity of another individual to receive healthcare or reimbursements, racking up hundreds of thousands of dollars in unpaid medical bills. Biometric technology may be the solution healthcare organizations have been looking for.

Biometric technology devices include iris scanners, palm vein readers and facial recognition software. They recognize physical traits, ensuring the right person receives the right medicine and helping consumers pay for the healthcare they actually receive.

AOptix Technologies and M2Sys Technology are the leaders in biometric device manufacturing in the United States. The main reason biometric devices have become a more viable option for healthcare organizations is they are more affordable, averaging between $200 and $300 per unit. Acuity Market Intelligence forecasts biometric device global sales will jump 20 percent each year and reach $11 billion by 2017.

Several hospitals in the United States are beginning to implement these technologies including Hugh Chatham Memorial Hospital in North Carolina and Phoebe Dorminy Medical Center in Georgia.

Follow our IDentity Theft 911 blog to stay informed on the most recent tips and techniques used to help safeguard you and your family from becoming a victim of identity theft.

S.C. Tabs $25 Million For Breach Aftermath

Thu, 09 May 2013 01:00:00 -0700

South Carolina is seeking to extend a security contract to protect the personal information of taxpayers compromised in a 2012 breach of the state's Department of Revenue records. The Budget and Control Board voted to seek bids for a credit monitoring service in the wake of the largest attack on a U.S. state agency.

In 2012, 3.6 million Social Security numbers and personally identifiable information were hacked from the S.C. Department of Revenue using a stolen employee login. The state signed an emergency contract for $12 million without a bidding process.

Lawmakers hope a competitive bid attracts better identity theft protections. The 2013-14 budget includes $25 million for cyber-security efforts, which includes the cost to continue credit-fraud monitoring for consumers and businesses hit by hackers, according to the board's report.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Three Arrested For Alleged Identity Theft Ring

Thu, 09 May 2013 01:00:00 -0700

San Jose police arrested three members of an alleged identity theft ring. They were arrested on suspicion of identity theft, fraud, grand theft and counterfeiting.

The investigation started last year after an 85-year-old man's checkbook was stolen during a burglary. The alleged thieves then began an elaborate scheme using other allegedly stolen identities to take more than $100,000 from the old man's bank account.

The other identities used to drain the bank account were allegedly obtained from subsequent robberies performed by the alleged identity theft ring members.

San Jose police officers were granted a warrant and upon entry of the home discovered two of the suspects in the act of committing online identity theft crimes and found weapons, supplies and equipment to make fraudulent credit cards and driver's licenses.

United States Secret Service agents stationed in San Jose assisted in the search and described the particular scheme as, "the most extensive and inclusive operation" they had ever seen for identity theft crimes in the area.

For more up-to-date information of how to help protect you and your family from identity theft follow our IDentity Theft 911 blog.

Foreign Hackers Target The United States

Wed, 08 May 2013 01:00:00 -0700

The Pentagon has accused China of hacking into the U.S. defense computer networks. The Pentagon report claims that China is stealing information and using it to modernize its military.

According to the Pentagon report, cyber intrusions have been directly linked to the Chinese government and military, but China denies the accusations and calls the report "groundless."

Middle East- and North Africa-based hackers are teaming up with the infamous hacking group Anonymous to infiltrate the websites of government agencies, banks and other companies, according to the Department of Homeland Security bulletin.

The Department of Homeland Security expects nuisance-level attacks against publicly accessible web pages and possibly data exploitation, resulting in mild disruptions.

These incidents raise concerns of developing alliances between cyber-attackers and politically motivated groups.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

New Safety Step Shows Picture Of Mobile Device Payers

Wed, 08 May 2013 01:00:00 -0700

The popularity of paying for purchases with a mobile device is growing. Revel Systems, a San Francisco merchant services provider, has updated its point-of-sale software to show merchants an image of a credit card holder when someone uses a mobile device to pay. This will allow merchants to verify the user's identity before the transaction is completed and safeguard both parties from identity theft.

Revel Systems specializes in iPad-based point-of-sale software for restaurants, grocers and now retail shops. The growing point-of-sale phenomenon enables merchants to accept payments on mobile devices.

Credit card holders who shop at stores with Revel Systems enabled at their point-of-sale can set up an account on Revel's website. Those making an account can use their Facebook or other social media accounts to select the picture merchants will see at the point-of-sale helping safeguard themselves from credit card fraud.

In 2012, identity theft affected more than 12.6 million victims and two-thirds of them were related to credit card fraud. "It helps the merchant so they don't lose money and it helps the card holder so they don't lose their identity" says Chris Ciabara, Revel Systems CTO and co-founder, on the updates to their point-of-sale software.

Follow our IDentity Theft 911 blog for more information on news relating to identity theft, as well as tips on how to protect you and your family from becoming victims.

Hacking Concerns Raised With Google Glass

Tue, 07 May 2013 01:00:00 -0700

It's not even on the market yet, and Google Glass - the space-age technology that will allow users to view a computer screen in their glasses - may be vulnerable to hackers. Jay Freeman, a programmer specializing in cracking smart phone security, discovered that Google Glass has a "root" capability which can be enabled by attaching it to a desktop computer and running commands remotely.

Because there is currently no PIN or authentication system, hackers can easily access the device and install a "root," according to the report.

Google Glass is a new technology that allows users to view a computer screen in their glasses. This futuristic technology contains a microphone, speaker and touchpad along the frame.
According to Freeman, if hackers gain access to the device they can quite literally see through the victim's eyes, gaining access to passwords and personal information which leaves the victim susceptible to identity theft.

Google Glass is still in beta phase and Google says that security is a high priority and all bugs will be fixed before Glass goes to market in 2014.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

IRS Expands Identity Theft Pilot Program

Tue, 07 May 2013 01:00:00 -0700

The IRS is expanding its Law Enforcement Assistance Program on Identity Theft to nine more states as a result of increased tax-related identity theft crimes over the past year.

The pilot program originated in Florida and is now being implemented in Pennsylvania, Alabama, California, Georgia, New Jersey, New York, Oklahoma and Texas. These states accounted for a significant percentage of identity theft cases the IRS dealt with last year .

The program allows law enforcement officials to obtain tax return data to investigate and prosecute tax-related identity theft cases. Since the beginning of 2013, the IRS has worked to resolve more than 200,000 identity theft cases. In the fiscal year 2012, the IRS caught more than $20 billion in fraudulent refunds, compared to $14 billion in the 2011 fiscal year.

Electronic tax filings have resulted in a boost of tax fraud, says Lois Lombardo, a taxpayer advocate in Philadelphia for the Taxpayer Advocate Service (TAS). Lombardo highlights two of the most common tax fraud scenarios: criminals using another person's Social Security number on a return to claim the victim's tax refund, and using a stolen Social Security number to report their own income to avoid paying taxes.

Follow our IDentity Theft 911 blog for up-to-date information regarding identity theft crimes and the procedures in place to help protect you from identity theft.

Records Breach Leads To Lawsuit Against State

Mon, 06 May 2013 01:00:00 -0700

A Minnesota Department of Natural Resources employee illegally accessed the driver's license records of 5,000 people, a lawsuit alleges.

Victims involved in the breach have sued the DNR, state officials and the former employee, John Hunt, whom the suit claims illegally accessed the records in February.

The state of Minnesota has asked the federal judge to dismiss the lawsuits against the state.

The attorney general's office argues that the state isn't liable under a federal law that protects the privacy of driver's license data. The state also argued that state officials weren't aware that Hunt was improperly viewing data, according to the lawsuit.

The complaint alleges that the majority of the people whose privacy was violated were women in the public eye. Hunt stored the driver's license photos of more than 170 women in an encrypted file on his work computer. He was fired following the incident and is facing criminal charges.

The state claims that the current damages set at $2,500 per violation, would be a catastrophic cost. Data breaches by employees and the privacy issues created by such breaches are a growing concern for both government agencies and private sector corporations.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Child Identity Theft Rate Growing

Mon, 06 May 2013 01:00:00 -0700

One in every 40 households with young children in America was affected by identity theft crimes in the past year. A Javelin Strategy and Research Identity Fraud Report indicated there were more than 700,000 children identity theft victims last year in the United States alone.

Identity thieves seek out personal information from schools, medical records and cards found in stolen wallets. Child identity theft is a growing problem in the United States. The FTC claims that children account for 6 percent of all identity theft victims in the country.

The number of identity theft victims in the US surged to 12.6 million in the past year, 1 million more than the year prior. It is important to check your child's credit score to monitor any suspicious activity. Checking a child's credit score is easy. Simply call one of credit rating agencies - Equifax, Experian or TransUnion - and go through the same process you would checking your own personal score says child identity theft author, Robert Chappell. If you find anything unusual you must report it to the agency, your bank and the IRS immediately.

Parents should refrain from carrying their child's Social Security number in their wallets or purses. They should also ask why their child's Social Security number is needed and if you can provide an alternative form of ID any school, medical or insurance forms.

For more tips on how to safeguard you and your children from identity theft follow our IDentity theft 911 blog.

Cyber Gang Steals $1 Million From Hospital

Fri, 03 May 2013 01:00:00 -0700

An organized group of Russian and Ukrainian cyber criminals stole more than $1 million from a public hospital in Leavenworth, Wash., and used 100 unsuspecting accomplices to launder the money.

The hackers stole an estimated $1.03 million out of the hospital's payroll account into 96 different bank accounts across the U.S. Then, disguising themselves as an an Australian software development firm called Best Inc., the hackers recruited nearly 100 people who thought they were signing up for a work-at-home job with the fake company. The money mules were used to make bank transfers from their own accounts, laundering the stolen money.

This sophisticated cyber-gang cut out the middle man who typically cashes out and launders money from hacked accounts in exchange for 40 percent to 60 percent of the cut.

According to the Chelan County treasurer's office, only about $133,000 of the lost funds has been recovered. Fake employment schemes are favorite tools for identity thieves, hackers and other cyber crooks.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Thieves Steal Credit Data 1,500 Miles Away

Fri, 03 May 2013 01:00:00 -0700

Four members of a New York City-based identity theft ring were arrested for allegedly stealing personal credit information from more than 400 victims in Mesquite, Texas.

The suspects made hundreds of fake credit and debit cards by obtaining account information stolen from people using their bank cards at a Raceway gas station in the small Texas town. Police remain unsure of how the suspects obtained the information, but lean toward the individuals using a skimming device.

Two of the four members were arrested in late March while withdrawing money from a Manhattan ATM. Between the suspects, police found thousands of dollars in cash and more than 80 forged credit or debit cards, some even with the PIN number printed directly on the card.

Upon further investigation the police traced the remaining identity theft ring members to a Manhattan hotel room where police found more than 400 forged credit and debit cards, $340,000 and an encoder, the device used to electronically place data on a card's magnetic strip.

The four suspects were charged this week in New York in a 405-count indictment on various offenses including grand larceny and possession of stolen property.

Follow our IDentity Theft 911 blog for up to date information of how to safeguard yourself from identity theft.

Study Finds Cracks In Mobile Antivirus Applications

Thu, 02 May 2013 01:00:00 -0700

Hackers using basic techniques may be able to dodge many mobile antivirus applications, a new study indicates. Researchers at Northwestern University and North Carolina State University found that popular antivirus applications for mobile devices were susceptible to common evasion techniques.

Researchers were able to infiltrate the antivirus applications using basic techniques that malware writers can easily replicate.

Mobile vendor Symantec claims that the study doesn't reflect real-world threats. The viruses tested were not representative of the current threat landscape, according to a Symantec spokesperson.
Although the study found that the mobile antivirus software was ineffective against certain types of commonly used malware tactics, overall malware detection has improved since 2012 and is actually good at blocking more complex attacks.

Mobile malware is become a widespread issue. More than 65,000 mobile malware threats were discovered in 2012, according to a report by NQ Mobile.

While better antivirus software is one line of defense, mobile users should be cautious of malicious links and apps, as well as SMS phishing.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Personal Cost Of A Data Breach Tops $3,000

Thu, 02 May 2013 01:00:00 -0700

The average data breach victim can expect to incur losses of more than $3,300 in total losses, according to a new study. Each victim will spend roughly 20 hours and $770 on a combination of lawyers and lost time from work to resolve the issue.

Javelin Strategy & Research conducted a study analyzing the outcome of a massive data breach resulting in more than 120,000 cases of fraud last year in Utah.

Losing personal information like names, birthdates, Social Security numbers and addresses in a data breach can be devastating. In fact, one out of every four victims whose personal information was compromised is more likely to become a victim of fraud.

It is a common practice for banks to use account holders' Social Security numbers to verify their identity. When hackers obtain personal information and a Social Security number, they can easily access bank accounts and obtain credit over the phone. Instead, have your bank ask for a PIN (personal identification number) that you've created or arrange a series of authentication questions only you would know the answer to before granting access.

Follow our IDentity Theft 911 blog for more information on how to help safeguard yourself from becoming a victim of fraud.

'Secondary Use' Means Nothing Is Private Online

Wed, 01 May 2013 01:00:00 -0700

The information users share over the Internet can show up down the road in unexpected places.
Internet users publicize information via social media, online forms and networks, but do not realize that it may have a secondary use. Third parties can access and use that information, including your address, gender, and date of birth - and in most cases, what they're doing isn't illegal.

Secondary use of public records was the center of national debate when the Journal News of White Plains, N.Y., published an interactive map of the names and addresses of residents with gun permits. The information was public record. The newspaper just used the public information in an unexpected way.

Celebrities have become targets of document tracing, which uses publicly available information to acquire personal information like credit reports.

To preserve privacy, people would have to walk away from Google or Facebook, according to Adi Kamdar of the Electronic Frontier Foundation.

The White House is now working on a Consumer Privacy Bill of Rights to protect consumers online.
Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Reports: Healthcare Industry "Easy Targets" For Data Breach

Wed, 01 May 2013 01:00:00 -0700

Healthcare providers understand the risks and consequences of neglecting to guard against data breaches, but most have yet to apply proper response and protection procedures across the board, multiple new reports indicate.

The Ponemon Institute and Experian Data Breach Resolution compiled information on how multiple industries were protecting their databases from potential security breaches. In the healthcare industry alone, 94 percent of those surveyed experienced a data breach within the past two years and 39 percent still don't have a response plan in place.

A small amount of healthcare respondents have team members trained to answer questions asked following a breach. But only 19 percent of those surveyed were properly equipped with the tools to determine the size and cause of the breach.

A Verizon report indicated the healthcare industry was an "easy target" for hackers seeking financial information. This is largely due to healthcare professionals putting their efforts into the protection of patients' healthcare records and not focusing on financial information. Of the 47,000 security incidents analyzed in the report Verizon confirmed 621 data breaches.

It is important for every practice in the healthcare industry to have a plan in place to respond and protect against data breaches. Follow our IDentity Theft 911 blog for the latest information on how to help protect your business from a data breach.

Woman Says Faked Wal-Mart Purchases Wiped Out Her Bank Accounts

Tue, 30 Apr 2013 01:00:00 -0700

A Memphis woman told a local TV news station that a hacker cleaned out her bank accounts using her Wal-Mart online account to make five purchases totaling more than $3,000. Colli Bounds claims that she contacted Wal-Mart over the phone and via Facebook multiple times trying to cancel the transactions, but four of the five orders were processed after she spoke to a representative.

A hacker purchased several graphics cards through her account, and had the items shipped to an address in Georgia. The purchases emptied both her checking and savings accounts because they were linked. Bounds says she notified law enforcement, including the FBI because the fraudulent purchases were shipped over state lines.

Bounds says Wal-Mart advised her to contact the issuer of the credit card to resolve the issue. According to Bounds, SunTrust Bank told her that they would take about 10 days to investigate whether they could restore the money to her account.

"Customer privacy is a top priority to us," Wal-Mart said in a statement. "There are sometimes individual cases when we learn that someone has gained unauthorized access to a customer's login information. To be clear, there is no indication of a breach of Walmart.com systems ... When we become aware of these matters, we work immediately with our customers to help them protect their online security."

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Data Breach Affects 50 Million LivingSocial Users

Tue, 30 Apr 2013 01:00:00 -0700

The deal-of-the-day website LivingSocial suffered an unprecedented data breach this weekend, prompting the Washington, D.C.-based company to send e-mails to 50 million of its 70 million members worldwide informing them of the breach and asking them to reset their passwords

Hackers entered the system over the weekend and uncovered members' names, e-mails, birthdates and encrypted passwords. LivingSocial immediately took extra measures to restrict access across all systems and consumer data information. However, the investigation of the breach is ongoing and LivingSocial and enforcement remain unsure how the hackers gained access.

Personal consumer data was compromised, but the hackers did not obtain members' credit card information. LivingSocial uses a financial processing network to store credit information.

All countries where LivingSocial has a presence were affected except Thailand, the Philippines, Indonesia and Korea. Unfortunately this isn't the first time this year a major social network has lost consumer data to a significant data breach. Evernote, LinkedIn and Zappos all experienced data breaches within the past 12 months.

For more information about how to safeguard yourself from identity theft follow, our IDentity Theft 911 blog.

Judge Denies FBI Request To Hack Webcam

Mon, 29 Apr 2013 01:00:00 -0700

Turnabout is not fair play for FBI agents, apparently. A Texas federal judge has denied the FBI's request to use sophisticated spy software to hack into the computer of a suspected hacker - a move that would have allowed investigators to activate the computer's webcam, access the hard drive and memory, and generate coordinates for the computer's physical location.

Texas Federal Judge Stephen smith denied the FBI's request for a search and seizure warrant, saying it was too invasive and could violate a suspect's Fourth Amendment rights regarding search and seizure, according to court documents. The FBI had requested the warrant hoping to track down the person suspected of conducting a sizeable wire transfer from a local Texas bank to a foreign bank account.

In court documents, Smith asserts that the IP address acquired by the FBI could lead to a public computer, endangering the privacy of innocent citizens.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Is Google Sharing App-Buyers Personal Information?

Mon, 29 Apr 2013 01:00:00 -0700

Google recently updated its Google Wallet interface, but privacy advocates are still unsure of the amount of personal information being shared with vendors.

Vendors use Google Wallet to manage sales, and the app works in conjunction with Google Play, the platform where Android smartphone and tablet owners buy apps. Earlier this year the privacy advocacy website, Consumer Watchdog, sent a formal complaint to the Federal Trade Commission (FTC) asking how Google handles app buyers' personal information after buying an app through Google Play.

Google's current privacy policy is extremely vague leaving plenty of room for interpretation, the advocates say. The policy states Google only shares information "as permitted," mentioning the overarching policy allowing the sharing of personal information to process transactions and maintain accounts.

With the new update, Consumer Watchdog and the blog DroidLife, a privacy advocacy group focused on Android products, want to determine where the personal information is stored and who has access to it.

The update no longer displays buyers' names, e-mail addresses and home addresses.
However, Google has yet to answer the complaints as they have been turned over to the FTC's Bureau of Consumer Protection Enforcement Division.

Follow our IDentity Theft 911 blog for more information regarding Internet privacy and rights you hold as a consumer.

Illinois Man Seeks $5.2 Million In Reparations

Fri, 26 Apr 2013 01:00:00 -0700

Andrew Schmitt's alleges that ex-girlfriend Melissa Turner stole his Social Security card and fraudulently depleted his U.S. bank account, raked up debt, and purchased a Honda Fit with a loan taken out in Schmitt's name, court documents show.

Schmitt filed a lawsuit against Turner, U.S. Bank, American Honda Finance Corporation and Bommarito North County Inc., seeking $5.2 million in damages and court costs.

Schmitt claimed to be unaware of the debt Turner had acquired in his name until Honda agents came to repossess the car, the lawsuit alleges. Collection agencies from U.S. Bank, Bommarito Honda and American Honda Finance have tried to collect the debt they claim Schmitt owes.

Schmitt is accusing the defendants of fraud, stating that they knew Turner did not have access to his bank account and that he did not authorize the purchase of a car.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

ID Theft Conviction Nets Alabama Man 51-Month Sentence

Fri, 26 Apr 2013 01:00:00 -0700

An Alabama man was found guilty of aggravated identity theft and access device fraud and has been sentenced to 51 months in federal prison.

Kenneth Blackmon Jr. admitted his involvement in a tax fraud scheme. He used stolen identities to file false federal income tax returns and said he was in possession of roughly 15 Social Security numbers specifically to use for receiving fraudulent tax refunds.

It is unclear how Blackmon obtained the Social Security numbers and personal identifiable information like names and birthdates. After filing for the fraudulent tax returns Blackmon would direct the refund to a debit card allowing him access to cash and freely make purchases.

In addition to 51 months in federal prison, Blackmon is required to pay $197,839 in restitution and serve three years of supervised release after he leaves prison.

Tax fraud crimes have significantly increased and are a growing concern for the IRS and local governments. For more information on how to help safeguard yourself from identity theft, follow our IDentity Theft 911 blog.

Fake Associated Press Tweet Prompts Stock Market Plunge

Thu, 25 Apr 2013 01:00:00 -0700

A bogus Associated Press Twitter post sent a panic through the United States Tuesday. The tweet from the account of the world's largest news agency indicated that two explosions had occurred in the White House and President Obama was injured.

The Dow Jones industrial average fell more than 128 points moments after the tweet was sent. The stock market quickly recovered when the AP revealed the tweet was bogus.
The AP immediately suspended its Twitter account following the incident.

Twitter is working on a new two-step security system to address the growing issue of security breaches through social media. The system will use a code, sent via text message to a registered mobile device, verifying the user's identity in conjunction with a password.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Fourth Arrested In Jacksonville $20,000 Tax Return Scheme

Thu, 25 Apr 2013 01:00:00 -0700

A Florida man that has allegedly used the identities of hospital patients to file bogus tax returns has been taken into custody.

Todd Christian Hoffman, 25, of Jacksonville, Fla. has been charged with filing bogus tax returns that netted $20,000. Hoffman allegedly targeted patients currently at Shands hospitals at the University of Florida and in Jacksonville. Working with a hospital employee, police say, Hoffman obtained identification information through the hospital's medical records database.

Police became suspicious of Hoffman after discovering a laptop containing 30 tax returns during a normal traffic stop in 2011. At the time, Hoffman told police the computer belonged to someone else. Investigators convinced another individual involved with Hoffman to wear a wire and recorded Hoffman in late January 2013.

Police say the recording revealed Hoffman meeting with the hospital employee and exchanging a notebook containing more than 600 identities. Investigators also say they recorded Hoffman explaining to accomplices how to fill out tax forms .

The fourth person arrested within the scheme, Hoffman is charged with organized fraud, fraudulent use of personal identification and grand theft. He remains jailed on $375,000 bail.

Learn more about how to safeguard yourself and your family from identity theft by following our IDentity Theft 911 blog.

Department of Defense Tightens Identification Security

Wed, 24 Apr 2013 01:00:00 -0700

The Department of Defense is moving to protect its employees from identity theft of Social Security numbers. The department will begin issuing identification numbers to reduce the use of Social Security numbers throughout the department.

The identification numbers will be similar to the service numbers issued to military personnel in the past. A 10-digit Electronic Data Interchange Personal Identifier (EDIPI) number will replace Social Security numbers in internal record tracking systems whenever possible.

Current identification cards will be replaced with an EDIPI as they expire. The effort to enhance employee identity protection will later be expanded to incorporate systems that work across multiple departments as well.

The DOD will still be required to use Social Security numbers when dealing with the IRS, but EDIPIs can be used to track records and grant access to DOD information systems to thwart identity theft.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Study: Majority Of Data Breaches Are Financially Motivated

Wed, 24 Apr 2013 01:00:00 -0700

More than 47,000 security incidents resulting in 621 confirmed data breaches and 44 million compromised records occurred during 2012, according to Verizon's 2013 Data Breach Investigation Report. Verizon compiled the report with assistance from its RISK Team, 18 global organizations, national computer emergency response teams and law enforcement agencies. The report found that the majority of data breaches are financially motivated and affect average individuals worldwide.

Financially motivated attacks targeted specific industries more than others, including retail, information, food services, professional, financial and transportation. Around the world, consumers trust the industries credit card and personal information on a daily basis.

Compromised records at a bank can lead to lost Social Security numbers, while several retail shops save users credit card information online for a convenient check-out.

Hackers use several different strategies to obtain this type of personal information. Verizon's report found 52 percent of data breaches result from basic hacking techniques, 40 percent from malware use, 35 percent happen in person with portable skimming devices and 29 percent from social tactics like phishing.

Learn more about how data breaches within companies can affect you by following our IDentity Theft 911 blog.

Mayor Targeted In Tax Fraud

Tue, 23 Apr 2013 01:00:00 -0700

Mayor Eva Galambos' tax return was denied due to a previous return using Galambos' social security number.

Mayor Galambos of Sandy Springs, Ga., believes the IRS should have flagged the fraudulent return. She has lived at the same address for more than 20 years and a new address typically sends up a flag on a return. Galambos' name and address are available to the public because she is a politician, but she claims that she does not know how thieves acquired her social security number.

Tax fraud has become very common in part because the IRS processes refunds as quickly as possible, matching up the necessary verifying information later on. After a fraudulent return is found, it can be months before the proper return is processed and refunded.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

FTC Backs Giving New Social Security Numbers to Child ID Theft Victims

Tue, 23 Apr 2013 01:00:00 -0700

A Social Security Administration (SSA) proposal that would allow child identity theft victims to receive new, clean Social Security numbers has the full backing of the Federal Trade Commission, the FTC has said. In February, the SSA invited other government agencies to comment on the proposal, which would allow the issuance of new SSNs to children younger than 13 when theirs is compromised by identity thieves.

Although the proposal is still informal, the FTC said in a letter to the SSA that the policy would "work to undo the harms resulting from misuse of the child's SSN."

Child identity theft is a serious issue in the United States. Each year more than 142,000 cases of identity theft against minors are reviewed, the FTC's pointed out in its letter supporting the proposal. Roughly 40,000 children currently have identity theft protection, but more than 10 percent of them are affected by fraudulent loans and accounts taken and opened using their SSNs.

Federal regulators are also working to include children ages 14 to 17 in the proposal, as fraudulent use of a SSN is often unknown until a child reaches age 16 or older.

For constant updates on the latest news and regulations related to identity theft of any kind follow our IDentity Theft 911 blog.

NYPD Officer Charged With Tax Fraud

Mon, 22 Apr 2013 01:00:00 -0700

Federal prosecutors charged New York Police Department Officer Jonathan Wally with filing 33 fraudulent tax returns between 2009 and 2013. Wally also used fraudulent Social Security numbers to create fake dependents for his clients, prosecutors say. The fraudulent claims cost the IRS nearly $100,000.

Prosecutors charged Wally with two counts of tax fraud and three counts of identity theft. The 10-year NYPD veteran was suspended from the force pending the outcome of the case and released on a $50,000 bond.

In 2012 the number of fraudulent tax claims reached a high of 1.8 million, Treasury inspector general for tax administration, J. Russell George, told a senate panel on tax-related identity theft. Identity thieves can file a tax return and claim a refund by using a legitimate taxpayer's identity. The IRS has put in place a number of additional steps to prevent identity theft and detect refund fraud in the 2013 tax season, with additional measures set to take effect in 2014.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

IRS Moves To Limit Access To Deceased's Social Security Numbers

Mon, 22 Apr 2013 01:00:00 -0700

The IRS took the first steps to fight tax-related identity theft by proposing limited access to the Social Security Administration (SSA) files and revising the W-2 form for employers in the 2014 budget recently released by the White House.

The potential changes will limit access to the Social Security Death Register, which maintains information, including Social Security numbers, on the deceased. Identity theft criminals seek out these files for personal information to receive fraudulent tax refunds. After a death, those with legitimate fraud-prevention needs will be allowed access to the file. Following their initial right to view the file, it will be locked for three years with zero access.

Revisions to the W-2 form require employers to provide the IRS with an identifying number for each employee rather than just their Social Security number, creating another safeguard from fraudulent claims.

During 2012 the IRS employed 3,000 people dedicated to tax-related identity theft issues, prevented $20 billion in fraudulent returns and stopped 5 million suspicious returns.

Stay informed of the latest identity theft news and solutions to help safeguard you and your family during tax season and throughout the year by following our IDentity Theft 911 blog.

Microsoft Steps Up Account Information Protection

Fri, 19 Apr 2013 01:00:00 -0700

Nearly 700 million Microsoft account holders will be able to opt-in to a two-step verification process whenever they use certain Microsoft services. The authentication system uses a code, sent via text message to a registered mobile device, to verify the user's identity.

Each code can be used only once, and replaces passwords - which hackers might be able to decipher - to protect account information when a user signs on to a public computer or wireless connection. Accessing an account or completing an online transaction will require users to complete a second verification step. Users can request a new code whenever they need one.

Microsoft is joining Google and Apple in the ranks of tech companies that are strengthening account security. This measure is a layer of identity protection from cyber attacks.

The security feature is now available to all Hotmail, Windows Live, Xbox Live, Outlook, SkyDrive, Office Web Apps and other Microsoft service users.

Follow the IDentity Theft 911 blog for updated information on Internet privacy solutions available to you and your business.

Florida Moves To Protect Kids From Identity Thieves

Fri, 19 Apr 2013 01:00:00 -0700

Florida children are one step closer to stronger protection from identity thieves as the state House unanimously approved a bill that would require the country's three major consumer reporting agencies to allow parents and guardians to open and immediately freeze credit records for their children.

The bill now enters the Senate and if passed will be the second such law in the nation. Maryland legislators signed a similar bill into law last year.

The Florida law would prevent identity thieves from using children's personal information to open fraudulent credit card accounts, apply for jobs or file fake federal tax returns for a refund. Child identity theft has increased threefold over the past eight years in Florida. In Broward, Miami-Dade and Palm Beach counties alone nearly 1,800 children had their identities stolen in 2011.

Victims often don't realize their identity has been compromised until they are older and attempting to apply for college loans, a credit card or some other form of credit.

For the latest information and solutions on protecting your children from identity theft, follow our IDentity Theft 911 blog.