MyCRA Specialist Credit Repair Lawyers

Tag: credit file defaults

  • Help to reduce your risk of identity theft

    Identity theft“Identity is one of our most valuable assets – if it is stolen, the stress and financial costs can last for years,” says Attorney-General Mark Dreyfus QC. According to the Attorney-General, identity theft is currently at 7% and rising (up from 5 per cent in the previous year)* – and so a new booklet has been formulated to give Australians practical advice on guarding their identity and what to do if they think it’s been stolen. We offer a link to this booklet and encourage all of our readers to download it, and even print it out and give it to someone you know who you think may be at risk. It just may save your bank accounts, your identity and your credit file from misuse.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair, and www.fixmybadcredit.com.au.

    The booklet ‘Protecting Your Identity’ was launched by the Attorney-General last week. For anyone who is not so familiar with the workings of identity theft, it is a comprehensive document on the how’s and whys of identity theft. We found this page to be particularly relevant:

    Why Should I Be Concerned About Identity Theft?

    Once your identity has been stolen it can be almost impossible to recover. You may have problems for years to come. Some of the things that criminals may be able to do with your identity include:

    • tricking your bank or financial institution into giving them access to your money and other accounts

    • opening new accounts and accumulating large debts in your name which will ruin your credit rating and good name

    • taking control of your accounts including by changing the address on your credit card or other accounts so you don’t receive statements and don’t realise there is a problem

    • opening a phone, internet or other service account in your name

    • claiming government benefits in your name

    • lodging fraudulent claims for tax refunds in your name and preventing you from being able to lodge your legitimate return

    • using your name to plan or commit criminal activity, and

    • pretending to be you to embarrass or misrepresent you, such as through social media.

    Identity theft is the curse of the 21st Century and that is becoming more evident in our industry of credit rating repair. There are more and more people needing help with repairing their credit file due to having their identity misrepresented in some way.

    Often the first time we are aware of identity theft is when we apply for credit and are flatly refused due to defaults on our credit file that are not ours.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit rating and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    If you have just found out you are a victim, we recommend you also contact the Police. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    Top Tips for Preventing Identity Theft

    In a statement to the media last week, Mr Dreyfus also outlined some simple steps Australians can take to reduce their risk of becoming a victim of identity theft:

    • Secure your mailbox with a lock and, when you move, redirect your mail.

    • Be cautious about using social media, and limit the amount of personal information you publish online.

    • Secure your computer and mobile phone with security software and strong passwords, and avoid using public computers for sensitive activities.

    • Secure your personal documents at home and when travelling.

    • Learn how to avoid common scams at www.scamwatch.gov.au.

    • Be cautious about requests for your personal information over the internet or phone and in person in case it is a scam.

    • Investigate the arrival of new credit cards you haven’t requested or bills for goods and services you have not purchased.

    • Be alert for any unusual bank transactions or missing mail.

    • If you are a victim of identity theft, report it to the police and any relevant organisations.

    • Order a free copy of your credit report from a credit reporting agency on a regular basis, particularly if your identity has been stolen.

    * Last year a survey commissioned by the Attorney‑General’s Department found 7 per cent of respondents had been victims of identity crime in the previous six months – up from 5 per cent the previous year.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Fraudsters cashing in on public fear over password security

    fake password checking siteAustralians are warned to be aware of a scam which is targeting public uncertainty following publicised hacking events or data breaches. People are being sent links to fake sites which ‘test’ your logon details for popular sites such as Twitter, LinkedIn, Facebook, Hotmail and Gmail. But be warned, many of these are fake password checking sites, or similar and are phishing for your user name, password and other personal information. We look at this scam in more detail, and how it could impact you and your credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Giving away your details to these sites could put you at risk of identity theft and credit fraud– so the message from Australia’s ‘Stay Smart Online’ is – always be suspicious of sites asking for your user name, password or personal information. If you’re not sure – don’t take the chance.

    “Links to password checking sites often circulate on social media and email after publicised hacking events or breaches – such as the hacking of the Associated Press’s Twitter account – a time when checking the strength or security of your own account might seem appealing,” Stay Smart Online warned in an alert yesterday.

    SSO advises never to enter your username and password anywhere except on the site it is intended for:

    Don’t use links in emails or social media messages that take you to a log in page. Navigate there yourself independently to make sure you are on the legitimate site’s logon page.

    Make sure the addresses of the websites you use are correct.

    When logging on to a website, check for HTTPS (or a padlock) in the address bar. This is the secure form of HTTP. Websites that don’t offer HTTPS at logon are unsecured.

    Always be suspicious of unsolicited emails, especially those seeking personal or financial information.

    SSO says there are some legitimate password-checking sites out there, and some of the legitimate sites have been copied.

    Legitimate sites can use minimal information supplied by you, such as your email address (not your password!) to check your address against lists of stolen information found in data dumps on hacker sites. Other legitimate sites may offer to simply test the strength of your password. But trying to distinguish the real from the fake may not be worth the risk.

    SSO warns fake sites may be very difficult to distinguish from legitimate ones, and will simply collect your details.

    “…someone then has everything they need to access to your account,” SSO states.

    The danger in clicking on any link from an unknown source is not only that the personal information that you give out could be directly warehoused for future purposes of identity theft for fraud, but you could also end up downloading malware or a virus which takes that information from your computer.

    Recently MSN Money commented on this latest scam in its story Avoid Password-Checking Sites:

    Given that most people still use simplistic passwords and use them across multiple sites — as has been shown in a variety of data breaches and surveys — there’s a lot at stake when you give yours away. Imagine losing control of not only your social networks, but also access to your email, online banking and other personal and financial information.

    Even if you catch the breach quickly, it will still be a colossal pain to get everything back to normal.

    What can fraudsters do if they can get their hands on your personal information?

    They can steal passwords to your bank or credit accounts and they can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents, and apply for credit in your name.

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties – the victim can have a stack of credit defaults against their name by the end of their ordeal – and sometimes no proof it wasn’t them that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases victims have had no way to prove they weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity crime happening long before the fraud took place.

    New laws coming through in March 2014 are aimed at protecting your credit file following an incidence of identity theft. If you know you have been scammed, you will be able to put a ‘ban’ on your credit file – so no one will be able to access your credit information – therefore protecting your credit information from misuse.

    But if you don’t know you have been scammed until it’s too late, or if you can’t pinpoint what’s happened to you, it may be still be difficult to protect your credit rating. So you have to be sure you protect all of that, by staying ahead of scams such as this, and by keeping strong passwords.

    MSN Money provides some tips from Microsoft about password security to consider when creating — or changing — a password:

    • Make your password at least eight characters long

    • Mix up the characters with capitals, lower case, numbers, symbols and punctuation marks

    • Change your passwords regularly

    • Use different passwords on different sites

    If you think you might have entered details into a fake site…

    * Change your password immediately. If you use the same logon information elsewhere you should also change these passwords, ensuring you create a unique password for each service.

    * Contact the Police – as well as your bank – especially if you have given over personal information to fraudsters. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place. You should also contact the credit reporting agencies that hold your credit file and inform them that you may be at risk of identity theft.

    * Order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and credit you don’t believe you’ve accessed, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit file and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    Visit www.mycra.com.au  for more information on identity theft or how to repair bad credit.

    image: foto76/ www.FreeDigitalPhotos.net

     

  • Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

    new year's resolution to buy a homeMedia Release

    Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

    8 January 2013

    As the calendar has rolled to the 2013 New Year, many Australians have declared their intentions to knuckle down and put together a deposit for a home – but a consumer advocate for accurate credit reporting warns – before people apply for a loan, they should check they don’t have a shady past with credit they are not aware of.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says there are many reasons people can embarrassed with a bad credit rating and refused a home loan at the time of finance application, and the reason is not always as simple as failing to make payments on time.

    “People have got to be dedicated to be able to get together the minimum 10 per cent deposit that is generally required to buy a home today, but some people are getting to the credit check and are told they have bad credit history and they have no idea why,” Mr Doessel says.

    Prospective buyers may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Any creditor is able to place a default on a consumer credit file if a repayment is later than 60 days. Credit listings range in duration from 5 to 7 years depending on the listing type.

    Mr Doessel says home buyers do not always have bad credit because of something they have done wrong.

    “Paying your bills on time should, but doesn’t always guarantee a clear credit file. As credit repairers, we see a multitude of instances where the creditor has made a mistake and placed a default or other listing on the consumer’s credit file when it shouldn’t be there. Often it’s not until the credit file holder applies for credit that they are made aware of it, but at that time it’s too late, they often lose the home they are buying,” he says.

    “Credit file mistakes are common, and can be because of simple human or computer error but the end result is that the consumer is blacklisted from credit for at least five years unless they can prove the listing is unlawful.”

    Consumers can check their credit file for free every year, by requesting a copy from Australia’s credit reporting agencies.

    “It is good financial practice to request a copy each year, but there is never a more important time to make sure your credit report is accurate as BEFORE you apply for a home loan, so you don’t lose the home you have your heart set on. Credit reporting mistakes do happen, but the watchdog is you,” he says.

    If a default has been listed ‘unlawfully’ you have the right to request its amendment, or removal from your credit file.

    “If there is something amiss on your credit report, if you find have a shady past with credit that you believe is unfair, don’t let that one notation ruin your life. It’s not easy to dispute a credit listing, but if it shouldn’t be there, it’s a point worth fighting for,” Mr Doessel says.

    People can visit http://www.mycra.com.au/credit-file-request/ for help to get their credit report.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

    Image: digitalart/ www.FreeDigitalPhotos.net

  • A New Year’s Resolution: Make 2013 Your Best Money Year Yet

    New Year's Resolution 2013What is your New Year’s Resolution? Is it to clear your debts and get better with your finances? If so, here are some practical, positive steps you can take to get your finances off to a great start in 2013 and improve how you deal with money forever. Reduce your chances of bad credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au, https://www.facebook.com/FixMyBadCredit.com.au

    1. Get your head around it.

    It’s important to get your head around your new money plan, and that might require some inspiration. Grab a copy of a book by a well-recommended finance author and adopt some new methods to make money and credit work for you, not against you.

    Here are 5 great finance books to get you started, but of course there are many, many more:

    1. Rich Dad, Poor Dad by Robert Kiyosaki. He also published a book on debt in 2012, Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards: Turn “Bad Debt” into “Good Debt”

    2. The Richest Man in Babylon by George S. Clason

    3. Think & Grow Rich by Napoleon Hill

    4. Making Money by Paul Clitheroe

    5. Affluenza: When Too Much is Never Enough By Clive Hamilton and Richard Denniss

    2. Dot your i’s and cross your t’s.

    Don’t let your finances get away from you. Spend some time looking at your paperwork and make sure everything is in order. We mean everything. This is no mean feat. In fact, this is pretty hard. Do you have outstanding Super? Have you done your tax? Make a resolution to not bury your head in the sand about bills. Pay them straight away if you can or diarise their repayment. Read all of your bank and credit card statements when they come in.

    If you are not particularly organised – you may even like to resort to the ‘shoebox method’ – which is basically keeping every receipt for the week or month in a shoebox, and transferring it after that time onto a spread-sheet which allows you to track your spending and gives more focus to where you might be blowing out your budget.

    Don’t let disorganisation lead you into debt and threaten your credit rating.

    3. Understand your debt.

    Get a good handle on how much you owe. This will be much easier if you have followed step 2 well.

    Take a deep breath and tally up all of your debts. Then pick yourself off the floor and make a plan to get on top of your repayments before your credit rating suffers.

    4. Work out a repayment plan for your debts.

    Most people with significant debt generally have it stacked up on a credit card – or cards. Unfortunately most are at high interest rates which make it often impossible to get on top of. Many experts recommend switching all debt to one card with a lower interest rate, or even swapping to a personal loan.

    The best advice we can give on any loan, including credit cards is to repay above the minimum amount set by the bank – which will allow you to actually make progress on clearing the debt because you will be saving interest.

    In Finance expert David Koch’s blog post Grow Your Savings he says by far the best way to invest a small amount is to pay off debt:

    “If the $100 or $1000 is paid off the mortgage it is providing a return of 6 per cent tax-free because that’s how much you’re saving in interest.

    There aren’t many investments today giving a tax free return that high.

    Even better, use the money to pay down an outstanding credit card balance and enjoy a tax-free benefit of 10-20 per cent depending on the card,” Kochie says.

    If you don’t have the luxury of having extra money left over after pay day, and if in fact you are really going to struggle to make repayments on some of your debts, then the best thing you can do is contact your Creditor immediately. Don’t wait until you are behind in your repayments, as you run the risk of having a late payment noted against your name on your credit file, and if in arrears past 60 days, you will be listed with a default on your credit file.

    If you use the words ‘Financial Hardship Variation’ your Creditor will consult with you to work out a new arrangement under these Financial Hardship provisions. They are not obligated to assist you in reducing or delaying your repayments, but they are required to make an official response to your request, and if you present them with a good case as to why and how you intend to repay your debt, as little as it may be right now, you might have a good chance.

    5. Clear your credit file of errors.

    Many people find they do all the hard work of making a significant dent in their debts and start saving towards a home or car loan, only to find their past comes back to haunt them.

    You may apply for a loan, only to be refused due to credit file defaults which show up on your credit report. Basically any creditor is able to place a default on your credit file if a repayment is later than 60 days. There may be times when this has occurred and you are unaware of it.

    Whatever the situation, credit file defaults need to be treated very seriously. They are most times an instant negative for any bank who is thinking of lending you money.

    And the thing is…they hang around for 5 years. What are your financial goals 5 years from now????

    It is good financial practice to get a copy of your credit report each year, and make sure everything is as it should be. This report is FREE every year from the credit reporting agencies. You may have listings with one or more of the credit reporting agencies. There is a potential for errors to be present on your credit report.

    Credit reporting mistakes do happen, but the watchdog is YOU!

    If a default has been listed ‘unlawfully’ you have the right to request its removal from or amendment of your credit file.

    Many people get the run around from creditors when they try to do this – or they get bogged down in all the legalities.

    Unfortunately the potential is there to ruin your chances of getting the default removed if it is not handled the right way. We suggest you get a credit repairer on the case, they know the legislation and can work within it to force creditors to honour their obligations under Australian law and negotiate the removal of any errors from your credit report.

    Good luck in making this year the year you make money – and credit – work for you.

    Visit MyCRA’s main site www.mycra.com.au for more information or phone tollfree 1300 667 218.

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

  • Beware identity theft with latest bank ‘refund’ phone scam

    Identity Theft Warning: Banking phone scammers currently on the prowl in Australia are attempting to not only pilfer easy profits from unsuspecting victims via wire transfer, but it looks like they’re also after crucial identity information which could lead to identity fraud. We look at this scam, and what you should do if you think you’re a victim.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au Visit our Facebook page https://www.facebook.com/#!/FixMyBadCredit.com.au

    Last week Australian Broker online reported on this alarming banking scam ‘Banker phone scam bamboozles customers’ which involves the Australian Bankers Association (ABA). The report says twenty five people had contacted the ABA in the three days prior to report a telephone scam – and at least two had fallen victim to the scam which involved fraudsters calling customers supposedly on behalf of the organisation offering instructions on how to obtain a ‘refund’ for overcharged fees.

    “They then ask the customer to go to a post office to receive a so-called ‘refund’ – ranging from $5 000 – $7 000. Instructions are given to call the criminals on arrival at a post office, where they try to talk the customer into sending money, via the post or Western Union, claiming it’s a fee for the so-called ‘refund service’.”

    And alarmingly:

    “In several cases, customers have been asked to reveal additional information, including whom they bank with, how long they have been a customer of said bank, what their credit card number is and what their driver’s licence number is,” The Australian Broker report says.

    Steven Münchenberg, ABA chief executive, said in a release to the media, that most customers contacting ABA after receiving the phone calls have been suspicious and have not provided any money or information to the con artists.

    “However, members of my staff did speak to two customers who had sent [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][money] to the criminals – around $300 via Western Union. Unfortunately, there is no hope of retrieving that money and it is lost to fraud,” he says.

    “These criminals are preying on people and we are urging anyone who receives a call with a promise of easy money to hang up.”

    What could fraudsters do with the additional information they are asking for?

    What fraudsters are doing, is attempting to gather extra information from their victim over and above what they might already have in front of them.

    If they have a person’s full name plus who they bank with, and what their driver’s licence number is they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in the victim’s name.

    What should you do if you suspect too late you’ve fallen for a scam?

    If you have just found out you are a victim, we recommend you contact the Police – as well as your bank – especially if you have given over personal information to fraudsters. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    Telling your bank also means they can flag your accounts and upgrade security on your account/s.

    You should also contact the credit reporting agencies that hold your credit file and inform them that you may be at risk of identity theft.

    At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve accessed yourself, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there. Any negative listing will prevent you from obtaining credit, so it is vitally important that your credit file is clear.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit file and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    Visit www.mycra.com.au for more information on identity theft or how to repair bad credit.

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

    Image 2: nuttakit/ www.FreeDigitalPhotos.net

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  • What you need to know about the internet to save your teenager’s future credit file

    Media Release

    What you need to know about the internet to save your teenager’s future credit file

    Young Australians are putting their good credit rating at risk every time they post personal information publicly on the internet, even before they are ever credit active, a leading credit repairer warns.

    “The harsh reality is if you’re a teenager in Australia today you are not immune to identity fraud. Even though you are not yet credit active the personal information you make public today could be used against you in the future,” CEO of MyCRA Credit Repairs, Graham Doessel says.

    He says many teenagers do not know the risks of having a public ‘profile’ on sites like Facebook and Twitter, but fraudsters do.

    “With the volume of personal information that is publicly available about our young people on social network sites, what’s to say fraudsters can’t pull that information and use it to build a profile that could allow them to create a fake identity?” he says.

    Late last year, the Australian Federal Police’s national co-ordinator of identity security strike team, Ben McQuillan spoke about the dangers of identity crime at a forum on money laundering and terrorism.

    He warned forum listeners about the new trend of ‘warehousing’ which involves storing data for a time, making it harder for a victim or bank to trace where and when the data was stolen.

    ”If people know your full name, your date of birth, where you went to school and other lifestyle issues, and they were to warehouse that data, there is a prospect that could then be used to take out loans or credit cards or to create a bank account that could then be used to launder money,” Mr McQuillan told the Sydney Morning Herald.

    Mr Doessel says identity theft is not only about the initial loss of monies, but if the fraud amounts to credit accounts in the young victim’s name going undetected and unpaid past 60 days, creditors will issue defaults.

    “It need not be major fraud to have a detrimental effect. Credit file defaults for as little as $100 can stop someone from being able to obtain credit for 5 years. So any misuse of someone’s credit file can be extremely significant,” he says.

    He says the onus is on the victim to prove to creditors they didn’t initiate the credit.

    “The fact that the perpetrator is long gone and the actual act of identity theft happened years earlier will only add to the difficulty for the young person in recovering their good name,” he says.

    Experts recommend parents and young people continue to update their skills on how to be cyber-smart. The government’s ‘stay smart online’ website offers some top tips about using the internet which can be discussed with young people at home and school.

    Top tips

    Make sure your computer is secure-follow the advice in the Secure your computer section of this [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][stay smart online] website.

    Set strong passwords, particularly for important online accounts and change them regularly-consider making a diary entry to remind yourself.

    Stop and think before you share any personal or financial information-about you, your friends or family. Don’t disclose identity information (drivers licence, Medicare No, birth date, address) through email or online unless you have initiated the contact and you know the other person involved.

    Don’t give your email address out without needing to. Think about why you are providing it, what the benefit is for you and whether it will mean you are sent emails you don’t want.

    Be very suspicious of emails from people you don’t know, particularly if they promise you money, good health or a solution to all your problems. The same applies for websites. Remember, anything that looks too good to be true usually is.

    Limit the amount and type of identity information you post on social networking sites. Don’t put sensitive, private or confidential information on your public profile.

    When shopping online use a secure payment method such as PayPal, BPay, or your credit card. Avoid money transfers and direct debit, as these can be open to abuse. Never send your bank or credit card details via email.

    When using a public computer, don’t submit or access any sensitive information online. Public computers may have a keystroke logger installed which can capture your password, credit card number and bank details.

    /ENDS.

    Please contact:

    Lisa Brewster: Media Relations media@mycra.com.au Ph 3124 7133

    Graham Doessel: CEO Ph 3124 7133

    246 Stafford Road, STAFFORD QLD.

    MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

     

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    http://www.cybersmart.gov.au/News%20Article%20List/2012/01/Connecting%20generations%20and%20educating%20each%20other.aspx http://www.smh.com.au/technology/technology-news/police-warn-of-sophisticated-plan-to-steal-identities-20111108-1n5l8.html#ixzz1dB4ctHcT
    http://www.staysmartonline.gov.au/teens

    Image: Just2shutter/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Bill shock, power disconnected…just the tip of the iceberg for energy complaints

    Power bills are reported to be so high that more people are getting their electricity disconnected because they just can’t afford to pay their bills. This in turn is leading to credit file defaults. We look at why this might be occurring and look at the other energy customer complaints such as lack of notification of arrears which has led to more energy credit defaults, and more customer complaints about this industry. We believe the energy industry is overdue for some attention by regulators to stop the rising power prices and possibly a public inquiry into energy issues similar to what we had with the telecommunications industry.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    I read a shocking story in Adelaide Now today, titled Thousands going without power as electricity bill defaults skyrocket.  It tells how the number of people in South Australia who have had their power disconnected is at a decade high– a 38% spike in disconnections. Here is an excerpt from that story:

    MORE than 10,000 households had their power disconnected after failing to pay their bills – the highest cut-off rate in almost a decade.

    Figures released by the industry regulator yesterday showed that 10,100 homes lost power in the 12 months to July, compared to 7300 the previous financial year.

    Soaring power prices are being blamed for this 38 per cent spike in disconnections, with welfare groups reporting those on fixed incomes suffering the most – including one man who had to resort to cooking his meals over a wood fire in his back-yard for six months after being disconnected.

    Welfare agency Anglicare said it had reports of disconnected households commonly using candles for lighting, heating rooms with  barbecues – and keeping perishables such as milk and butter in Eskies.

    Retailers are being asked by the Essential Services Commission of SA to be more flexible when dealing with “consumers experiencing genuine financial hardship”, because it is essential they have “continued access to energy”.

    The number of reconnections is only about a third of the number of disconnections recorded in 2011/12, the figures show.

    Further to this issue of 10,000 customers having their power disconnected because they just can’t pay their bills, is the other issue of questionable tactics by power companies when it comes to issuing defaults for unpaid or late accounts.

    One of biggest issue with our energy credit repair clients is that many had not receive the any notice that they were in arrears prior to the energy company adding the default to their credit file. So in effect, the clients believe they have had no time to remedy the outstanding account prior to being issued with the default. This happens time and again with energy clients – despite many saying they had provided a forwarding address for any outstanding accounts to their energy provider if they have moved.

    The energy company, when questioned claims to not have the forwarding address. At other times, they say they have provided notification to the client – but the client has not received it.

    Who is right? It becomes a big he-said she-said! If individuals attempt to fight their case on their own – what chance do they have? Without the right skills for negotiating or access to and knowledge of legislation many wind up having to live with the default on their credit file even if they believe they shouldn’t be there. This means they are blacklisted from credit for 5 years.

    Many experts are calling for a public inquiry into the energy industry. This we believe is long overdue.

    In the meantime, energy customers will continue to face soaring prices in many States of Australia, and confusion over crippling defaults that may or may not be valid.

    If you have an energy default, writ or Judgment that you need help in disputing, contact a Credit Repair Advisor at MyCRA for help and to assess your suitability 1300 667 218 or visit our main site for more information www.mycra.com.au.

    Image: vorakorn/ www.FreeDigitalPhotos.net

  • Telco bill shock should in theory now be a thing of the past

    The Telecommunications Consumer Protection (TCP) Code came into effect on September 1. We look at what this means for telco customers and the possibility that less consumers could be subject to bill shock and subsequent credit rating defaults due to sky-high bills they had not budgeted for.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Currently approximately 26% of our credit repair clients have suffered bad credit from telcos (telecommunications providers). Not all of that bad credit should be there. Whilst mistakes and mis-communications are frequent in the industry, as they are in many others – one of the major significant differences we have noticed with the telco industry compared with other industries issuing credit file defaults, is more clients are in dispute over excess charges.

    Excess charges or “bill shock” can occur when the actual bill the customer receives is significantly higher than what they understand it should be. Issues like international roaming charges, excess data charges and customers going over plan allowances (especially when the plan had the term “cap” within it) seems to be a frequent source of dispute amongst customers.

    Unfortunately sometimes the customer is unable to come to an agreement over these charges before they are issued with a credit rating default. These issues can be hard to fight. Often the customer will say what they had first understood the plan to be for, or what they wanted the phone to do, was not what eventuated.

    Resolutions with telcos over these billing issues can be difficult to come to. Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, customers have been faced with at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    The telcos – with all the power on their side can often come out on top.

    Escalating levels of telco complaints in Australia, resulted in a major public inquiry by the Australian Communications and Media Authority (ACMA) and the report – Reconnecting the Customer. This examined the root causes of the industry’s poor customer service and complaints-handling performance. The telco industry was asked to regulate or be regulated – and so the Telecommunciations Consumer Protections (TCP) Code was developed by the Communications Alliance (CA), and a final draft was registered in late July.

    That TCP Code came into effect on 1 September 2012. If the code proves to be effective, and if the ACMA does as it says it will and come down heavily on those that don’t comply with the TCP Code, there will be significant positive changes for telco customers.

    What the Code provides for.

    The ACMA outlines the basic benefits for consumers in its article Fair call—new telco code to benefit consumers. Here is a breakdown of consumer benefits of the TCP Code:

    • Telco providers must be clear about what they are offering in their phone plans and stop using confusing terms like ‘cap’ (unless the offer refers to a ‘hard cap’—an amount that cannot be exceeded).

    • Better spend management tools designed to avoid ‘bill shock’.Including improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.

    • From 27 September telcos will be required to provide unit pricing for national calls, standard SMS and downloading 1 MB of data in advertisements.

    • From 1 March2013 customers buying a new service will receive a two-page document called the ‘Critical Information Summary’. This includes essential information about service, pricing and complaints-handling, as well as volumetric information so consumers can easily understand how many two-minute calls or texts they can make under their plan.

    • Faster, better complaints-handling, with urgent complaints resolved within two days. All of these new measures will be monitored and the telcos subject to new benchmarking standards.

    • For customers having difficulty paying their bills or meeting unexpectedly high bills, telcos must advise consumers about spend management tools, hardship advice and options to restrict a service.

    • A new industry compliance body is being formed to ensure all industry participants comply with the new code.

    According to IT Wire in its story New telco code toughens up consumer protections, Optus jumped the gun ahead of the introduction of the Code, and launched its new usage alert service which it says gives its customers greater transparency in managing spending on their mobile accounts. The new Optus service sends text alerts to Optus’ customers on most post-paid mobile plans when they reach 50 per cent, 85 per cent and 100 per cent of their voice, text and data allowance.

    IT Wire also reports ACMA Chairman Chris Chapman as saying the ACMA will put the industry on notice, advising they would take a “far more robust approach” to ensure the industry’s compliance with the new Code and had “resourced up in this space.”

    “We will conduct more audits and investigations dealing with key areas of consumer detriment and expect substantial changes in industry practices,” Mr Chapman says.

    For consumers who consider that their service provider is not complying with the code, Chapman says they “may make a complaint to the provider in the first instance and if they are not satisfied with the resolution, they should contact the Telecommunications Industry Ombudsman.”

    And, if telecommunications service providers do not comply with the code, Chapman says they faced a direction to comply from the ACMA, “while further breaches could lead to Federal Court action where civil penalties of up to $250,000 are possible.”

    We will be following these telco improvements with great interest as they relate to the volume of credit file defaults due to telco customer service issues and bill disputes.

    For those consumers currently facing what they consider to be excessive charges, or other issues with their telco which have resulted in bad credit – it is possible MyCRA Credit Rating Repairs may be able to help.

    If a credit listing has been placed unlawfully, it may be required to be removed from the consumer’s credit file. Consumers can contact a credit repair advisor 1300 667 218 to assess their suitability for credit repair. There are no guarantees of success, but the specialised knowledge of credit reporting and industry law means engaging the services of a professional credit repairer gives the consumer the best chance of having bad credit removed completely and permanently from their credit file. Visit the main website for more information www.mycra.com.au.

  • Telco consumer code on third rewrite for June deadline

    A third shot at a telecommunications consumer code has recently been submitted by Telcos to the Australian Communications and Media Authority (ACMA). The Code submission is an attempt to self-regulate a heavily criticised industry and prevent Government intervention by the end of June deadline.  The Code is intended as a resolution to an 18-month investigation by the ACMA into telco customer complaints. As Telco disputes make up a heavy part of credit rating errors to date, we have been watching the outcome of this situation and how it could impact the consumer’s ability to resolve disputes, and prevent credit file errors and default listings which should not be there.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    IT News recently reported on developments of the Telecommunications Consumer Protection (TCP) Code in its article ACMA Sets June Deadline for Consumer Code.

    It reports that the ACMA has committed to deciding on whether to accept or reject a revised telco industry code on customer service and advertising by the end of the month, in preparation for registration and implementation by August 1.

    “We indicated that the previous ones that they had lodged with us wouldn’t secure registration,” ACMA chairman Chris Chapman told iTnews.

    Here is an excerpt from that story:

    It is understood the watchdog has already held meetings to discuss the May revision of the code, the largest revision of which included the concession for telcos to print unit pricing for SMS messages, phone calls and data blocks on outdoor advertising and flyers.

    It has previously opposed the move as unnecessary, despite attacks by consumer representative group ACCAN.

    Chapman threatened in April to directly regulate the industry if it ultimately declined to register the code, even on minor grounds.

    At the time, Chapman said the March revision of the code would be the final one for consideration. But ongoing discussions with industry led to one more version of the document ultimately being considered…

    It was initially submitted to the ACMA for registration in February but has since undergone two revisions as the ACMA declined to register the revised code over concerns it did not meet all recommendations laid out by the inquiry.

    “We absolutely believe that this code is complete, that it meets not just the requirements of the [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][Reconnecting the Customer] enquiry, it also meets the test of being the best and most sensible code we can put in place to enhance consumer protections and provide a win-win for consumers and the industry,” Communications Alliance chief executive John Stanton told iTnews.

     

    The ACMA  formally invited the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code in its report Reconnecting the Customer:

    1.Clearer pricing information in advertisements allowing consumers to more easily compare services.
    2.Improved and more consistent pre-sale information about plans.
    3.Developing meaningful performance metrics which allow consumers to compare providers.
    4.Tools for consumers to monitor usage and expenditure.
    5.Better complaints-handling by providers.

    A shake up in the Telco industry is long overdue. Australians have been caught out time and again with botched bills and unresolved disputes with their Telco providers and their credit files have been damaged as a result.

    The Telecommunications Industry Ombudsman (TIO) revealed its findings on the extent of discontent within the industry in a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

    The TIO survey revealed more than half of consumers reported contact with their service providers five or more times before ringing the TIO. It also revealed most consumers reported spending three hours or more unsuccessfully trying to solve their complaint, with one in 5 saying they spent more than nine hours.

    “Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen.

    “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

    When disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place. There is a great number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors.

    MyCRA sends out complaints regularly to the TIO requesting investigations into errors that have found their way onto customer credit files.

    Hopefully these changes will result in less confusion and complaints in general amongst Telco customers and fewer people who have their good name destroyed unnecessarily due to credit file defaults which should not be there.

    For help with removing credit rating errors from credit files, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Financial worries could loom over economy: Consumer Advocate for credit reporting accuracy

    On the whole it seems Australians are feeling insecure about their finances. Is this the catalyst for or as a result of the slow housing and finance market? Is the doom and gloom all in our minds or are Australians in real trouble which could lead to a debt crisis and the accumulation of bad credit history by some sectors of the population?

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Yesterday Business Day reported on a worldwide survey showing Australian consumer confidence was significantly reduced despite the strength in the Australian economy in comparison to other countries.

    The article, titled We’re Saving For a Gloomy Day addresses Australia’s growing pessimism as featured in a survey brought out by Boston Consulting Group. The survey suggests the savings habits of Australians born in the midst of the global financial crisis are here to stay.

    “In its 11th annual consumer sentiment survey conducted last month with 15,000 consumers in 16 countries, BCG asked respondents a series of questions around financial and job security, spending plans and savings habits. The results showed Australian shoppers were among the most worried and financially insecure in the developed world, and planned further cuts in discretionary spending,” the article says.

    This sentiment is not surprising, considering the key finding from the survey shows that not only are Australians cautions, but that the rates of consumers who feel they are in financial trouble has soared:

    “47 per cent of Australian consumers felt they were in financial trouble or not financially secure, up from 36 per cent in 2011. This heightened sense of panic compares with 48 per cent in the US (where the unemployment rate is double Australia’s), 43 per cent across the European Union, 41 per cent in Spain (unemployment close to 25 per cent) and 45 per cent in recessionary UK,” the article says.

    Here are the results from the survey country by country courtesy of Business Day:

    So what is causing this fear? Perhaps the drop in house prices (on average 4.5% over the past 12 months according to the Australian Bureau of Statistics) could be having a significant impact. Perhaps a reduction in the level of household equity has meant many are reluctant to increase spending as there is no longer a buffer in their biggest asset – the family home.

    This was the viewpoint of the leader of BCG’s consumer practice in Australian and New Zealand, James Goth.

    Mr Goth said a downturn in the housing market was affecting spending plans in Australia and feeding the pessimistic outlook.

    ”Another reason why I think we are so bearish in our discretionary spending outlook, regardless of how well the economy is doing and how good unemployment rates are, is the breaking of the house-price cycle – people can no longer fund these very high expenditure rates based on ever-increasing house prices, he told Business Day.”

    So what could be the long term prospects for the housing market and lending finance numbers?

    This week’s March housing finance statistics reported by the Australian Bureau of Statistics show a 0.3% rise in home loans to owner occupiers, but the proportion of first home buyers fell to 16.4 per cent. In all, the total value of dwelling finance commitments fell 0.5 per cent in March compared with February in seasonally adjusted terms.

    ABS HOUSING FINANCE March Key Points:
    VALUE OF DWELLING COMMITMENTS

    March 2012 compared with February 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.2%. Owner occupied housing commitments fell 0.5%, while investment housing commitments rose 0.4%.
     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 0.5%.
    NUMBER OF DWELLING COMMITMENTS

    March 2012 compared with February 2012:

     In trend terms, the number of commitments for owner occupied housing finance fell 0.4%.
     In trend terms, the number of commitments for the purchase of new dwellings fell 1.3% and the number of commitments for the purchase of established dwellings fell 0.6%, while the number of commitments for the construction of dwellings rose 1.1%.
     In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 0.3%.
     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 16.4% in March 2012 from 17.2% in February 2012.

    The minutes of the Reserve Bank of Australia May board meeting were released on Tuesday and noted that weakness in non-mining sectors was persistent and was predicted to continue.

    The Sydney Morning Herald reported in its article Slowing Growth, rate rises tipped RBA’s hand that among other economic factors, slowing credit growth and demand for housing finance were involved in its decision to cut interest rates this month.

    “Demand for housing finance had eased in the past few months and recent data suggested that dwelling prices had continued to decline, although there were tentative signs that the pace of decline had been more gradual in recent months,” the RBA minutes said as reported in SMH.

    “Credit growth for households had been marginally lower over the past year than over the previous year, and business credit was rising only at a very modest rate,” the minutes said.

    Do the facts show Australians are really experiencing financial difficulty?

    The sentiment was echoed by Dun and Bradstreet’s Credit Expectations Survey released on April 30, 2012. It pinpointed in its survey of June quarter savings, credit usage, spending and debt performance expectations that many who can meet credit commitments are choosing not to, but that there is a significant portion of people struggling with their current debt levels.

    It showed over a third of Australian families will struggle to manage existing debt levels. It also found nearly half (46%) of all low-income households expect difficulty managing their debt. This represents a rise of eight percentage points since the fourth quarter of 2011, 11 points above the national average.

    According to Dun & Bradstreet CEO, Gareth Jones, the survey results indicate a worrying cycle of debt accumulation and dependency among struggling consumers.

    “Unfortunately, we are seeing the least-solvent consumers accumulating unmanageable levels of debt, while those best able to meet credit commitments are avoiding spending altogether,” Mr Jones said.

    “Nearly one-in-three low-income households expect rising household debt levels, but with limited ability to pay this down. When consumers are increasingly forced to accumulate debt they are unable to manage, just to keep the family finances afloat, this has the potential to quickly become a vicious cycle,” Mr Jones said.

    Should this cycle continue, and a portion of people continue to accumulate unmanageable debt levels, the result will be a possible increase in the number of credit file defaults – with the only saving being – well – savings.

    The level of savings reported in the country is heartening – we have learnt from other countries post GFC, and the smart savings of many, whilst it may hurt the retail sector – would buffer many families from a credit debt crisis like we have seen in countries like the United States. But as often happens, for those with a high proportion of debt who don’t have the luxury of saving – they may be thrown into the debt cycle– robbing Peter to pay Paul just to stay afloat.

    For those who accumulate a bad credit history, the prospect of recovery would be slow. For between 5 and 7 years they will be refused mainstream credit and be on the outer – any credit they are approved for would generally be at a higher interest rate, meaning they are going to struggle even further to pay back their debts. The consequence of possible defaults on new loans could mean they are trapped in this cycle for a very long time.

    In this sense, for those who are living with credit file defaults which they believe shouldn’t be there, it would save them thousands by addressing the problem and having those credit rating errors addressed and potentially removed. As a safeguard for the future should lending criteria tighten even further, any inconsistencies on a person’s credit report should be addressed now – before it is urgent. People can contact a credit rating repairer to help with building a case to have those credit listings placed in error on their credit file removed – as their right and responsibility.

    Image: renjith krishnan/ FreeDigitalPhotos.net

  • Home owners with credit file defaults forking out $15,000 more in interest

    Australians who are living with defaults on their credit file could potentially be hit with a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan if they are lucky enough to get one.

    Although this week’s predicted 0.25 per cent interest rate cut did not occur, each previous one had the potential to pass on a saving of around $50 per month to the average householder for a mortgage of $300,000 if the full amount was passed on.

    By Graham Doessel Founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    But for those Australians who are living with credit rating defaults, last year’s interest rates cuts, and any which are predicted in the near future will be negligible.

    Our calculations show families with a $300,000 loan who are unlucky to have defaults on their credit file for 5 years, who are able to secure a loan with a non-conforming lender will be paying a staggering $417.96 more per month in interest rates.

    We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders, but this is not a reality for people with defaults. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true.

    It is a fact in our experience that there are many families living with unfair defaults.

    It is not known for sure how many of the over 14 million credit files in Australia could contain errors or inconsistencies.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4  million errors, inconsistencies or flaws.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%. With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Errors do occur, but often it is not until people apply for a loan that they learn they have an adverse listing on their credit file, but by then it is too late to correct errors and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

    Unfortunately many people find this process difficult at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default.

    If you want a home loan, or to re-finance, but are weighed down by credit rating defaults, contact us to see how we can repair credit fast.

    Image: renjith krishnan / FreeDigitalPhotos.net

    Image: digitalart / FreeDigitalPhotos.net

  • Ordinary Australians are most at risk of identity theft

    A leading commentator on technology issues, Stilgherrian has warned readers of ABC’s opinion column ‘The Drum’ that the idea perpetuated by the media that identity theft is mostly a risk for governments and big business is masking the more significant occurences of identity theft to individuals in Australia and the world.

    “Indeed, the stories that get reported are chosen precisely because they can provide simple narratives and archetypical characters with clear motives, not because they’re significant battles in the perpetual cops-versus-crims war for control of the internet,” he says.

    Stilgherrian says the real truth of identity theft is that the typical victim is an ordinary person who has fallen prey to the vast criminal network which exists on the internet.

    First, these crimes are committed on a vast scale. Criminal processes are orchestrated globally, automated, and supported by thousands of unwitting, disposable minions. If only a tiny percentage of people fall for scams, we’re still talking millions of dollars.

    Second, the bad guys are good at this. Really good. Blaming the victims is inappropriate. “They had it coming to them”?Really?

    Third, it all connects up. Fifty bucks went missing from your credit card precisely because the number had been stolen from a poorly-secured online store. The legitimate website popped up the message from the fake anti-virus product because it, too, was poorly secured and had been hacked automatically by software that probed a hundred thousand websites one night.

    Or, in the case of identity theft, when someone takes out $50,000 of loans in your name? That happens through the gradual accumulation of personal data. Your name and email address from a list stolen from a hacked website, cross-matched with your street address from another, your date of birth from a third, and so on.

    These databases can contain millions of people’s details. They’re traded in shady online markets where people buy the pieces missing from the databases they already have, merge them, refine them, mark ’em up and sell ’em on until eventually there’s enough to turn it all into a credit application. It’s then laundered though “money mules”, people recruited in the belief they’re making money at home with just a computer.

    Stilgherrian’s commentary highlights the fact that identity theft can occur to anyone. We also want people to know these important points:

    * Often, people don’t know identity theft has occurred to them, until they apply for credit and are refused.

    * Often, a person’s credit file can end up with a long list of defaults put there by someone who has used the victim’s good name to obtain credit.

    * Credit file defaults are debilitating – leaving people unable to obtain home loans, personal loans, even mobile phone plans during the term of the listing which is generally 5 years.

    * Credit file damage due to identity theft can be very difficult to rectify. To clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

    How to avoid identity theft

    Public education can go a long way to lessening the instances of identity theft. The Government’s Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance and potentially their good name:

    1. Install and renew your security software and set it to scan regularly.

    2. Turn on automatic updates on all your software, including
    your operating system and other applications.

    3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.

    4. Regularly adjust your privacy settings on social networking sites.

    5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.

    6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.

    7. Use strong passwords and change them at least twice a year.

    8. Talk within your family about good online safety.

    Where to go for help following identity theft

    Sometimes unravelling the tangled ‘web’ of online identity fraud for the purposes of negotiating with creditors to restore someone’s good name is a minefield that many individuals have neither the time nor the skill set for.

    Credit repairers are more commonly involved in assisting people in cases of identity fraud due to a better knowledge of legislation and ability to work within it when negotiating with creditors over the victim’s financial future.

    For more information contact MyCRA Credit Repairs or call tollfree 1300 667 218.

    Image: Danilo Rizzuti / FreeDigitalPhotos.net