Nonprofit Identifies Top ID Theft Threats
By Rick Hazeltine
Staff Editorial Writer
The Identity Theft Resource Center, a nonprofit organization dedicated to the prevention of identity theft and helping its victims, has released its list of what it believes will be the top source of identity theft this year.
With the continued stress in the real estate market, there are multiple scams designed to steal a homeowner's equity. Identity thieves have been known to take out second loans on property that is free and clear. There are also identity theft scams that involve trying to "help" embattled homeowners by refinancing their mortgage. The ITRC advises consumers to discuss any actions with your bank or mortgage company before working with an unknown operation.
Credit card companies are reducing customers' credit limits and issuing many fewer cards. Identity thieves are using advertising to attract victims with promises of being able to get credit cards despite poor credit scores or the lack of a Social Security number.
With unemployment at record highs in many areas of the country, job scams perpetrated by identity thieves are growing. The ITRC says to be wary of "jobs" that promise great pay working from home.
Also, with so many companies being sold or being merged, "phishing" emails are climbing. This is where an official looking email is received from a company a consumer may have an account with. The email asks the consumer to verify sensitive personal information. There have even been cases of emails purporting to be from the Internal Revenue Service that include tax refund offers, audit information demands and verification of citizenship status. The ITRC says do not open attachments or follow a link to a Web site from these emails.
With fewer credit cards being issued and people reducing the number of cards they have, identity thieves will look to an old favorite — checks. That's what happened to Federal Reserve Chairman Ben Barnanke when his wife's purse was stolen last year.
Even used checks are in demand by identity thieves because they can "erase" the information and produce a clean check or use other information on the check to open accounts. The ITRC recommends shredding old checks and other financial data rather than throwing it out in the trash.
The ability of identity thieves to breach computer systems of major companies and public agencies is getting more sophisticated. Some companies are reducing security staff because of the economy.
