Archive for November 2nd, 2017

Service of What To Do About Identity Theft

Thursday, November 2nd, 2017

Photo: Teachprivacy.com

The more I read about data breaches especially of companies, like Equifax, that are supposed to guard our personal information and countless subsequent almost daily articles about what to do about it, the more anxious I get. After a scampered through Tara Siegel Bernard’s excellent piece in The New York Times, I wasn’t one bit relieved. In “Is It Time to Consider an Identity Protection Service?” in addition to “not necessarily,” I kept thinking “fox in the henhouse!” In 2014, the most recent year for which there are statistics, she said that 17.6 million were victims of identity theft where perpetrators tried to enter bank or credit card accounts.

And just as I thought I was up to date and that it was time to write about this I read Michael Rapoport and AnnaMaria Andriotis’ article in Monday’s Wall Street Journal, “States Quiz Equifax on Disclosure,” which reports that “Attorneys general in at least five states are looking into why credit-reporting firm Equifax Inc. didn’t tell the public for nearly six weeks about the massive data breach that potentially compromised the personal information of 148.5 million Americans.”

Photo: itsecuritygury.org

Back to Bernard. She wrote about services such as LifeLock and MyIDCare, so-called protection services, and the news wasn’t reassuring. A security analyst who works for a tech research firm Avivah Litan, told Bernard that she felt these services were a waste of money.

Bernard continued: “But these services vary greatly, both in reputation and in offerings, according to fraud and privacy experts. Signing up also requires consumers to entrust yet another corporate entity with their most sensitive data — many of the same details stolen in the Equifax breach — while entering into legal agreements filled with fine print that leads consumers to give up many rights.”

More distressing: “Some of the more prominent services also have questionable histories. The Government Accountability Office counts at least 16 federal enforcement actions taken against providers of identity theft protection—financial services among them.” Bernard reported that Lifelock didn’t secure client’s “most sensitive data,” and promoted false advertising, resulting in a $100 million fine paid the FTC. That was in 2015. This year Equifax and Transunion settled “a regulator’s allegations that they tricked consumers into paying for credit scores of questionable value.” Together they paid $23 million.

Bernard explained what the protection services do. They hire the big services, [such as Equifax, TransUnion and Experian], to look for any changes in activity such as new credit cards, a big increase in what you owe or a late payment so you hear about it after the damage is done. They also claim to scan and monitor a whole list of things such as misuse of medical ID and Social Security numbers, but “they aren’t necessarily going to prevent a crime.”

Photo: feex.com

Bernard added: “But consumers need to be able to trust that the companies will protect the information they are scanning for. Identity Guard asks consumers to provide 26 pieces of personal data, though Mr. [Johan] Roets says that data remains on its operational servers and never touches the internet.”

Photo: pixelmaids.com

The companies that specialize in helping once the dastardly deed is done, some with private investigators with limited power of attorney, don’t come cheap. IDShield charges $899 at first and a monthly rate of either $9.95 or $19.95 reported Bernard.

A credit freeze costs nothing and Bernard said will foil some fraud as it prevents anyone opening credit cards or loans in your name but does nothing to avoid “takeover of financial accounts and cellphones,” where plenty of activity occurs, nor does it thwart fraud relating to tax refunds and social security payments. I know three people who were told they’d already submitted their taxes. Scofflaws submitted early requesting substantial refunds. Someone had stolen their identity and submitted tax information early.

I just read on artforum.com “Hauser & Wirth, London-based dealers Simon Lee, Thomas Dane, Rosenfeld Porcini, and Laura Bartlett, and Tony Karman, the president of Expo Chicago, have all been targeted by hackers or had money stolen from them in the midst of transactions over artworks, according to a report in the Art Newspaper. The most common form of fraud so far consists of criminals hacking into an art dealer’s e-mail account and monitoring incoming and outgoing correspondence.” Eventually the hackers slip in to the email conversation pretending to be the art dealer and instruct the recipient to trash the first invoice and wire payment to their account. They disappear once the money arrives.

Bernard lists 10 steps to safeguard yourself from fraud. They range from opening a “My Social Security Account” with the Social Security Administration to prevent a thief from redirecting your benefits to dedicating one computer for all financial activity.

What have you done to protect your identity? Are you concerned or do you think it’s much ado about nothing? Do you know anyone who has had their identity breached? Do you feel that the guardians of your credit information that have potentially let it loose in the land are culpable and should be held responsible to protect you for free?

Photo: grahamsl.com

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