MyCRA Specialist Credit Repair Lawyers

Tag: credit

  • Gamers need to know identity theft risks

    The massive increase in gaming popularity comes with a price, as gamers unknowingly expose themselves more and more to identity theft. The cyber-crime world is alert to any potential places where personal information can be extracted easily and used to steal money, identities, and ultimately take advantage of good credit ratings.

    By GRAHAM DOESSEL Founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    We like to alert readers to any places where their personal information may be at risk.

    Recently, a security expert, Michael Sentonas warned ABC’s gaming readers of the need to keep their personal information safe. In the article ‘Cyber threats a reality in online gaming.’ One area of threat he identifies is data breach. He says the Sony Playstation data breach was a major example of how gamer’s personal information can easily be compromised.

    Sony Australia confirmed in April last year that the personal information of all PlayStation Network account holders worldwide had fallen into the wrong hands. All users were at grave risk of identity theft with the hackers having access to all names, addresses, email addresses, birthdates, usernames, passwords, logins, security questions and more. The NSW Police fraud squad said it was enough information for the hackers to even take out loans on the vicitms’ behalf. Luckily, there were no Australian cases of credit card or identity fraud eventuating from the attack.

    Aside from data breaches, Sentonas pinpoints some of the ways individual gamers can be put at risk:

    “Gamers who mainly engage in massively multiplayer online role-playing games (MMORPG) such as World of Warcraft, Guild Wars 2 and Final Fantasy XIV and social networking games via Facebook have several common threats to watch out for including gold keylogging, phishing and gaming bots.

    Gold keylogging aims to steal “gold” (the currency and valuables a gamer accumulates within a game) and often manifests itself as a Trojan disguising itself as a normal application. A keylogging Trojan tracks the keys typed on a keyboard while the person using the keyboard is unaware. This allows the hacker to obtain your login and password information. A keylogging virus fulfils the same aim however it is designed to replicate itself and spread from computer to computer.

    Phishing on the other hand is a much more direct form of cybercrime that occurs via email or instant messaging. The email or instant message looks identical to the game’s official service and will pop up during a game or appear in your email inbox for example. Phishers attempt to acquire people’s personal information, such as banking details or logins and passwords. They pretend to be an honest business distributing an apparently official electronic communication. A typical phishing email asks you to ‘renew your registration / account’. Reputable businesses will not send you random emails or pop ups asking for your personal or financial information.

    While gaming bots may not be a direct cyber threat in terms of stealing personal information or attacking bank accounts, they have a clear advantage over real life players in online gaming. Most bots usually play with far higher accuracy than most real life players which essentially constitutes cheating. Players also use gaming bots to control their character while they are away from their computer or console. This allows them to keep the account running to enable the player to accumulate money, objects and experience without having to be in front of the screen,” Sentonas says.

    He also warns about the security threats ensuing from mobile devices, which are virtual portable PC’s, at risk of the same if not more security threats than people’s actual computer. Sentonas explains how gamers can be at risk from their smartphone:

    “Users should mainly be looking out for malicious mobile apps and games. Some apps are specifically designed with malicious components to secretly track users’ phone calls, text messages and emails to gather potentially sensitive data. Dangerous apps are usually offered for free and masquerade as fun applications. For example, last year 4.6 million Android smartphone users downloaded a suspicious wallpaper app that collected and transmitted user data to a site in China,” he says.

    He recommends a couple of vital ways gamers can protect themselves against these threats. Gamers should only install apps and games from official stores from their platforms of choice. He also says a little research such as reading user reviews and checking into the developer would go a long way in protecting against identity theft.

    “To help protect your disc-based games, we recommend making reliable backup copies of your saved games (using a USB flash drive) to protect your investment. Avoid storing personal information on the gaming device and consider using security software that protects PCs, tablets and smartphones as well. If children play online games, we recommend parents educate their children to not play with strangers over the internet. Parents should also consider activity-monitoring tools and utilising built-in parental controls,” Sentonas says.

    The threats and ramifications of identity theft are real and debilitating. Currently it is the fastest growing crime in Australia, with 1 in 6 people reporting being affected by it. If credit is taken out by fraudsters in the victim’s name, they can end up with their bank accounts emptied or at worse, defaults on their credit file – and this is not easy to recover from. First the victim has to prove they didn’t initiate the credit themselves. This would require documentary evidence and Police reports. But the identity theft victim would be virtually banned from obtaining credit until they are able to wade through the mess that has been created for them on their credit report, and clear their good name.

    For help with credit repair following identity theft, contact MyCRA Credit Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: David Castillo Dominici/ Freedigitalphotos.net

  • How to improve your credit score: what to do when you have a bad credit history

    Help for frustrated Australians who find out they have a bad credit rating.

    By GRAHAM DOESSEL – CEO and founder of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    There are approximately 3 million Australians* with adverse listings on their credit file, also known as a ‘bad credit rating’. Adverse listings can include, default listings, writs, Judgments, bankruptcies*, even excess credit enquiries. All of these can impact your ability to obtain credit. The consequences of having any issues with your credit file include home loan refusal, personal loan declined, and even being turned away from getting a mobile phone plan.

    One problem is many people go searching on the internet for help with ‘improving their credit score’. This is most commonly an American term which has no bearing on Australian credit reporting law.

    The Australian credit reporting system is currently a ‘negative’ reporting system. Only negative entries are included, and generally when a lender requests a credit report and sees listings on your credit file, they will be seeing these entries as negative. The laws are currently undergoing changes – but as a general rule – you don’t want late payments, defaults or credit errors holding you back from an otherwise perfect ability to service a loan or forcing you into choosing a loan at sky-high interest rates. You could pay thousands extra on a higher interest rate than your standard variable rate.

    So you may be wondering, how then, can I fix my bad credit?

    Well it depends on what comes up on your credit report….

    The first thing you need to do is request your credit report. This can be obtained from one or more of the credit reporting agencies, and is a file on all of your credit information. You can request a copy of your credit file for free every 12 months.

    If there are any adverse listings on your credit file which you believe are incorrect, contain errors or just should not be there – then you have the right to have those credit file errors removed.

    The problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’. Both of these results DO NOT give you that home or car loan as lenders still consider even a paid listing as bad credit history.

    Secondly, by talking to creditors themselves about credit file errors, people can accidentally ‘alert’ creditors to any mistakes they may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    If you are just starting out and wondering “How can I repair my bad credit?” then the best course of action is to instill the help of a credit repairer before you do anything yourself. They can help you get a copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any loan you choose at the best interest rates.

    Once you have those defaults removed, then you can certainly ‘improve’ your credit history in the future with these 5 easy steps:

    1. By ensuring all bills are paid on time. Keep track of and be aware of any stray bills – particularly when major changes are occurring in your life like moving house, divorcing, death, and illness.

    2. By using credit. Having no credit history means there is nothing to calculate and the risk appears high to lenders. We should start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking our credit report.

    3. Obtain a credit report every 12 months. This ensures there are no errors on your credit file. Sometimes human error means the wrong person gets the bad credit file entry, or adverse listings are entered incorrectly or unlawfully. If in doubt, talk to a credit repairer.

    4. Beware excess credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only applying for credit we have full intention of pursuing.

    5. Show stability. If you are thinking about applying for major credit in the near future, consider that lenders are looking for a stable address, stable income stream and regular savings as well as a squeaky clean credit file to help with assessing your suitability for a loan.

    * Veda Advantage 2009

    * MyCRA Cannot remove bankruptcies from credit files

    Image: graur razvan ionut/ FreeDigitalPhotos.net

  • NCCP class action is passing the buck

    A class action against banks for irresponsible borrowing – seems unlikely when considering how hard it is for so many to get a home loan in this country – particularly for those people with a bad credit history.

    By GRAHAM DOESSEL CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au

    As discussed with Kevin Turner of Brisbane’s 4BC Real Estate Talk.

    Australian banks are being brought to answer under new NCCP legislation with a massive class action instigated by struggling borrowers, according to Broker News.

    The lawyers of 300,000 struggling bank customers are putting together a case alleging bank lending has put borrowers at risk. The case will be built around first home buyers and lower income households who have received loans since the onset of the financial crisis.

    It will allege that some of these borrowers are experiencing severe financial hardship through no fault of their own, through being allowed to enter a loan contract that they could not afford.

    The case is being spearheaded by retired international insurance broker Roger Brown, according to Fairfax Newspapers, who has been quoted as saying the way banks have been lending has been “irresponsible”.

    In my view, borrowers need to take responsibility for understanding the commitment they are entering. Anyone who signs a contract should not do that lightly – a loan is a serious commitment which stretches for longer than many first home buyers have been alive. Buyers need to be comfortable in it long term, allowing for future changes that no bank can calculate on.

    If people only just qualify for the mortgage with the first home buyer’s grant, and then they go and add further and further credit commitments to the mix, of course they are going to run into trouble. But how can that be the bank’s fault? The First home buyer’s grant is intended as government assistance, not as help to prop up people who would otherwise fail to qualify.

    In real terms our system makes it extremely difficult for people to get a home loan and heaven forbid them having a bad credit rating for not paying a bill on time.

    We help more and more clients with a bad credit rating every day. These people have saved for a deposit for years, only to have their dream of home ownership ripped out from under them because of something like a small Telco default.

    If the banks had in some way falsified information, then of course that would be irresponsible and deserving of a class action. But if these buyers have really just failed to fully understand their own responsibilities and the ramifications of late payments until it was too late, then I don’t believe that is grounds for suing the banks.

    What is needed is more education in general from governments and the industry, and that would be a great outcome for Australian borrowers in general.

    People need to understand credit from a young age, how it can work for them, what can go wrong and how much is too much. They need to be educated about their credit rating and how essential it is to keep a clear credit file.

    For more information on how a bad credit rating affects people’s lives, to order a free credit report or to learn how to fix a bad credit rating, visit our main website www.mycra.com.au or call us tollfree on 1300 667 218.

  • How to keep your credit rating healthy

    7 ways to keep a squeaky clean credit file and get that home loan or finance….

    By Graham Doessel.

    Many people don’t realise how easy it is to get a bad credit rating, or how difficult credit repair can be.

    A clear credit file is so important because it is the key to your financial freedom. In today’s economic times, it is essential that your credit file be kept clear of any black marks.

    Any defaults (overdue accounts which have lapsed past 60 days), writs, judgements or bankruptcies which are recorded on your credit file will remain there for 5 years.

    A bad credit rating can prevent you from obtaining a mortgage, car or personal loan with banks but many don’t know it can also prevent you from obtaining a simple mobile phone plan.

    So how do you go about avoiding a credit rating default and keep your credit rating looking as healthy as possible? Outlined below are 7 essential tips:

    1. Use credit
    It may be tempting to get rid of all credit. But it is easier to obtain credit for a mortgage or business loan if there is some kind of reference of your credit history on your credit file. Taking out small accounts such as a mobile phone plan may be a good choice as long is each payment is made on time.

    2. Pay bills on time
    If you pay all accounts on time and by the due date, there is less chance you could receive a default listing on your credit file. If you can’t pay your account by the due date don’t bury your head in the sand – call the creditor and try to work out some type of payment plan.
    This contact may be enough to ensure your credit rating is not tarnished. If you receive a bill you don’t agree with, it is still essential to pay the account by the due date to avoid a default listing. Better to make the payment and be reimbursed for the difference than be paying for 5 years for someone else’s mistake.

    3. Be smart with credit
    Credit should be the key to financial freedom, but often it is the source of a great many problems in people’s lives. Yahoo’s Money and Your Life website has help for managing debt and finances. This article has some great tips for keeping credit under control and making it work for you http://au.pfinance.yahoo.com/moneyand yourlife/managing-debt/article/-/8044026/expert-tips-for-cutting-credit-card-debt/.

    4. Be aware of excessive credit enquiries.
    You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on your credit file can hinder your chances of obtaining a home loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted on your credit file, but not whether it was approved. If you go ‘credit shopping’ and apply for credit everywhere – the lender may consider you a bad risk due to those excessive credit enquiries showing up on your credit report.

    5. Educate yourself on ways your credit rating can be damaged
    It may not be simple overdue accounts which leave you with a bad credit file. People who have recently divorced or separated are particularly vulnerable to problems due to joint accounts. Also victims of identity theft can have a number of defaults on their credit file they are unaware of. Often times simple errors can occur which you aren’t aware of until you apply for credit and are flatly refused.

    6. Check your credit file regularly
    It’s important to check your credit file and understand what lenders may be seeing on your credit rating. Usually every 12 months should pick up any discrepancies that may need addressing.

    Under current legislation you can obtain your credit report for free from the major credit reporting agencies Veda Advantage, Dun & Bradstreet, and TASCOL (Tasmanian Collection Services). Your credit report will be sent to you within 10 working days.

    7. Fix credit rating
    If you do find credit rating defaults that you believe have errors, are unjust or you feel just shouldn’t be there – there is a good chance they can be removed. Many creditors will tell individuals that a default can never be removed, but can be marked as paid if it has been paid. This may not be enough to ensure credit is obtained with many lenders.

    You may be better off seeking the services of a reputable credit repair company than attempting to negotiate with creditors on your own to fix your credit rating. The credit repairer will negotiate on your behalf, working with creditors and understanding current legislation and how it applies to your credit file.
    Sometimes if individuals are unskilled in the current legislation they can do more harm than good when it comes to credit rating repairs.

    Visit the MyCRA Credit Repairs website www.mycra.com.au to get more information or help with your credit file or contact us tollfree 1300 667 218.

    Image: digitalart/ Freedigitalphotos.net

  • Tax fraud worth $33 million linked to identity crime

    Victims struggle with recovery after tax fraud leaves them out of pocket. Could this type of identity crime threaten their  credit file?

    According to public documents, a staggering $33 million worth of suspected fraudulent tax refunds linked to identity crime have been blocked since July this year. Last week SC Magazine released an article ‘ID thieves steal tax returns’ revealing these figures.

    It reports criminals are lodging fraudulent returns with the ATO and also creating fake group certificates linked to real businesses.

    SC reports that the process of finding the fraudsters and reimburing victims is complicated and difficult:

    “Australian Federal Police are understood to be only able to investigate instances of fraud against the ATO if banks supply suspect account details. This is thought to scarcely occur.”

    “The task facing the ATO’s team of anti-fraud investigators is hard to overstate. The $33 million in fraudulent returns blocked since tax time represented a mere 0.67 per cent of total returns processed over the same period. The ATO had withheld pending review 1.2 per cent of returns amounting to $401 million in claims which it considered “overstated” or “potentially fraudulent”.

    And with the lion’s share of legitimate and fraudulent returns filed within four months, the office’s sophisticated fraud-detection systems are put on a hunt for the proverbial needle in the hack stack,” the article says.

    The ATO says it could not comment on investigations, but has promised to reimburse victims, saying they have a:

    “strong focus on raising awareness within the community about the importance of TFN protection and personal information,” it told SC Magazine.

    In the meantime, two of the victims interviewed by SC reported experiencing many issues with attempting to get to the bottom of the fraud themselves. There has reportedly been little assistance from the accountants responsible for lodging the fraudulent claims (they are reportedly not liable having lodged the claim in good faith), and after 30 calls to the ATO from one of the victims, still no answers and no refund yet.

    What we found most interesting about this article, was the last few paragraphs on the Australian Federal Police’s response to SC:

    “Matters of individual tax fraud should be handled by the ATO it [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”][the AFP] said.

    It has five officers dedicated to investigating such fraud across Australia. it believed the victims should consult state police.

    For Cameron and Mansfield [the alleged fraud victims featured in the article], it remains unclear who they can turn to for assistance to recoup their lost tax claims.

    Short of obtaining a new TFN, agencies could offer little advice for victims of tax fraud.

    Government agencies broadly suggest victims of identity theft purchase a credit monitoring service and regularly check bank accounts,” the article says.

    The comments illustrate where we believe Australia can do more when it comes to identity theft – identity theft recovery.

    The media seems to frequently speak to identity theft victims, but many of them seem to have been unable to recover their lost monies, to find someone who shoulders the responsibility or gives them the answers or help they are looking for.

    Albeit it is early days for identity theft as a crime, but with a recent survey commissioned by the former Attorney-General revealing 1 in 6 people know someone or themselves have been a victim of identity theft, and the Australian Crime Commission citing identity crime as the fastest growing crime in Australia, it may be a pertinent time for victim recovery to be given more focus.

    In the SC article, it was recognised that the actual victim of fraud was the ATO, whose money was stolen by fraudsters. But what about the person whose identity was stolen? Are they at risk of further fraud in other areas?

    The fraudsters have detailed personal information on the victims, what to say they can’t take credit out in the victim’s name or use the information for other illegal purposes? Where should they go to be given advice on what to do?

    Recently we investigated identity theft recovery, and how it specifically relates to repairing a damaged credit rating. A damaged credit rating from identity theft can hurt the victim sometimes more than the original fraud. Not only can they owe the debt, and all subsequent fees to creditors they can be blacklisted from obtaining further credit in their names for 5 to 7 years. An identity theft victim who is not able to recover their credit rating is facing years of hardship. So where can victims turn for help?

    “Government agencies broadly suggest victims of identity theft purchase a credit monitoring service and regularly check bank accounts”

    This is true, but what was missed from the quotes in this article, was the fact that these victims may be eligible to apply at a Magistrate’s Court for a Commonwealth Victims of Identity Crime Certificate. Were victims told about their options in this regard?

    This Certificate is designed to give Commonwealth identity theft victims some kind of official substantiation to their claims of fraud.

    “A Commonwealth Victims’ Certificate helps support your claim that you have been the victim of Commonwealth identity crime. You can present the Certificate to an organisation such as a Government agency, or a business (such as a financial institution or credit agency).  This may help you negotiate with them to re‑establish your credentials or to remove a fraudulent transaction from their records.

    A certificate does not compel any organisation to take a particular action. It will not automatically re-establish a person’s credit rating or remove a fraudulent transaction from their record. It is also not admissible in any legal proceedings.” The Attorney-General’s website says.

    With recovery obviously so difficult, victims need any help they can get.

    If victims have their credit rating damaged for example, black marks are quite difficult for the individual to remove. When it comes to identity theft in our experience, creditors demand documentary proof to help with establishing that the victim did not initiate the credit in the first place. This certificate could certainly be a very valuable document for victims and we feel would greatly assist victims in substantiating their claims to creditors.

    During our investigations, we found it difficult to establish the ground rules as to what constituted a Commonwealth Indictable Offence, and a State Offence.

    The Attorney-General’s office advised us that the list of offences against the Commonwealth are so great, it is difficult to provide a full list for the public. They say that if any person suspects identity theft, they may be eligible and should just apply  for the Certificate, and a magistrate in their State will decide whether it is possible to obtain one on Commonwealth grounds.

    And as to whether these tax fraud victims would be eligible? A spokesperson for the Attorney-General advised us that that a Commonwealth indictable offence would include some instances of tax fraud:

    “This includes conduct relating to tax fraud such as when an individual dishonestly obtains a financial benefit from the Commonwealth by using another person’s identity,” the spokesperson said.

    They say it is up to the Police to pass on information on the Certificate to victims as they see appropriate for each individual fraud case. Apart from that, information is available on the Attorney-General’s website.

    It may be that the tax fraud victims at this stage have no need or claim for an identity crime certificate. But broadly speaking, it should be something which is promoted by all agencies as an avenue for recovery for victims. It could also be something State-based agencies could also look at adopting for identity theft victims.

    In the meantime, identity theft continues to affect 1 in 6 of us, and while Australia continues to iron out its laws and streamline its investigations, we believe the current victims are unlucky to be at the beginning of our development of effective recovery processes.
    For further help with credit repair information following identity theft, contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

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  • Identity criminals harvesting data on our children

    Media Release

    10 November 2011

    Police are concerned identity criminals may turn to targeting the Facebook accounts of children, storing their readily available personal information until they come of age.

    They confirm ‘warehousing data’ is a new trend amongst identity criminals, and warn personal information could be stored and used to set up fake identity documents when the child turns 18, which would allow fraudsters to take out credit in their name.

    A national credit repairer cautions this could leave the newly credit active young person blacklisted from credit well into their 20’s.

    “The amount of personal information that many young people have freely available for viewing on Facebook is frightening. These young people don’t grasp that the information they are posting now, can come back to haunt them later – if that information is stored and misused, their lives can be turned upside down – for 5 years they are locked out of credit, refused cards, loans, even mobile phones,” Director of MyCRA Credit Rating Repairs, Graham Doessel says.

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

    He warned 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 victim’s name going undetected and unpaid past 60 days, a person’s credit file can be ruined for 5 years due to defaults.

    “It need not be major fraud to be a massive blow to the identity theft victim. Unpaid accounts for as little as $100 can have the same negative impact on someone’s ability to obtain credit as a missed mortgage payment. So any misuse of someone’s credit file can be extremely significant,” he says.

    Proving the case of identity theft when attempting to recover a clear credit rating can be difficult for the individual to undertake, as Mr Doessel 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 that difficulty,” he says.

    Identity theft and subsequent fraud has become rampant worldwide. A survey commissioned by the Attorney-General’s office in July showed 1 in 6 Australians had been or knew someone who had been the victim of identity theft or misuse.

    The survey also revealed that the majority of identity theft or misuse occurred over the Internet (58 per cent).

    A U.S. study released earlier this year, revealed some alarming statistics about Facebook. Of the 20 million minors who actively used Facebook in the past year, 7.5 million—or more than one-third—were younger than 13 and not supposed to be able to use the site.

    It also revealed that one million children were harassed, threatened, or subjected to other forms of cyber-bullying on Facebook in the past year.

    “Clearly, using Facebook presents children and their friends and families with safety, security, and privacy risks,” the report said.

    Mr Doessel recommends parents take an active role in their child’s computer use. He recommends parents and children engage in what information is being provided quite publicly on social networking sites:

    1. Keep Privacy settings high, browse in a secure web browser, which should begin with https: and set profile to ‘Friends only’.
    2. Don’t post personally identifiable information such as full name, date of birth, phone number, and address.
    3. Do not add friends you don’t know. They could be gathering information about you or spreading viruses.
    4.  Be careful about clicking on links – even if they come from friends. Many posts contain viruses which can spread through your whole friends list, or links to sites which require you to enter personal information.
    5. Parents and children should sign up to the government’s StaySmartOnline’s alert system www.staysmartonline.gov.au , which provides many tips for safe social networking.

    If people are concerned their information may already have been compromised, they should contact authorities. For those who are credit active, they should check their credit file immediately, which could bring up any inconsistencies.

    A credit report is free once a year, and can be obtained from one or more of Australia’s credit reporting agencies.

    Any change in contact details, or strange new credit enquiries which show up on the report could mean that the person’s credit file is being misused.

    “If there are defaults on the victim’s credit file, they can instil the help of a credit repairer who can work within the legislation to negotiate with creditors and restore the clear credit rating,” Mr Doessel says.

    /ENDS.

    Please contact:

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

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

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

    Links:
    1.http://www.smh.com.au/technology/technology-news/police-warn-of-sophisticated-plan-to-steal-identities-20111108-1n5l8.html#ixzz1dB4ctHcT
    2.http://www.ag.gov.au/www/ministers/mcclelland.nsf/Page/MediaReleases_2011_ThirdQuarter_3July2011-Newresearchshowsidentitytheftaffectsoneinsixpeople
    3.http://www.consumerreports.org/cro/magazine-archive/2011/june/electronics-computers/state-of-the-net/facebook-concerns/index.htm

    Image: Clare Bloomfield / FreeDigitalPhotos.net

  • New credit reporting laws could see millions of people refused home loans

    The Federal Government is preparing to roll out its new credit reporting laws.

    Its comprehensive credit reporting system will allow lenders more access to a potential borrower’s credit information – but the move to positive credit reporting could disadvantage millions through allowing late payments to be noted on Australian credit files.

    This new aspect to credit reporting virtually ensures there is no room for error with consumers or creditors when it comes to loan repayments or people may face a bad credit rating.

    The Government proposes to bring in  ‘repayment performance history’ to credit files – which among other things will allow for credit providers bound by the National Consumer Credit Protection Act to make late payment entries on a person’s credit file if payments are late even as little as one day.

    In these harsh economic times, the ‘noting’ of late payments on a person’s credit file will most definitely impact on the consumer’s ability to obtain finance.
    Lenders are sure to see late payments as a potential credit risk. If the late payment of a few days is due to delays in bank processing of transfers or direct debits, paying at Australia Post, BPay etc. – these things are beyond the control of the average consumer yet that is exactly who will get hurt.

    Under current credit reporting legislation, late payments are not noted on a person’s credit file until they pass to the ‘default’ stage – which is more than 60 days in arrears. The creditor is also bound to fulfil a series of requirements to give the consumer the opportunity to rectify the situation before listing the default. This legislation will remain, but the ‘repayment performance history’ will also be added. The potential for error in this instance is high.

    There are more than 14 million credit files in Australia (14.7 million files are held by credit reporting agency, Veda Advantage alone), and approximately 3.47 million negative listings (Veda Advantage, 2009), but the number of possible errors which exist is not certain.

    The possible volume of credit files with errors was revealed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine), revealing 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 mean potentially 4 million errors currently exist on credit files in Australia.

    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.

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    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.

    But the problem is, 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.

    Often it is not until people apply for a home loan that they learn they have a bad credit rating, but by then it is too late 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 – negotiating with creditors is not always easy for the individual to undertake.

    The job of credit repairers is to check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time the creditor is advised to remove the default.

    Given the difficult process of default removal, it is worrying for consumers that getting ‘late payment’ errors removed from credit files may be just as problematic.

    If people want to obtain more information on removing errors from credit files, they can contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.

  • Don’t throw away your identity on rubbish day

    Rubbish day will never be the same again…not when fraudsters are sniffing around rubbish bins like alley cats at night looking for any kind of personally identifiable information on unsuspecting residents.

    If people think there’s nothing that can be done with that old electricity bill, or scoff at credit card offers and bin them immediately, they may be surprised to know that the information they throw away could be pilfered and those criminals could be putting everything they hold dear at risk.

    A growing crime known as ‘dumpster diving’ threatens the bank accounts, and the good name of many Australians every night. Personal information has become such a valuable commodity, criminals are willing to rifle through people’s rubbish to obtain it.

    Here’s how it happens…

    At night criminals are out on the streets of Australia going through rubbish bins. They are hunting for personal information to commit identity theft. This may not be their first time at a particular rubbish bin. They may be adding information to what they already have.

    Or piecing together information from a variety of sources including the internet, until they have enough to go about obtaining duplicate copies of identification documentation.

    Once this happens, they are able to take out credit such as loans, cards and even mortgage properties in the victim’s name.

    This comes as Today Tonight  in its story ‘Identity Theft Alert‘ interviewed Rob Forsyth from security company SOPHOS on 14th October.  It was revealed that 2 in 5 Australians put old bank statements and other key personal papers into recycling.

    Mr Forsyth says no suburb is immune to fraudsters rifling through that rubbish on the hunt for personal information.

    “They know, because it’s public information which councils have pick-ups on which day, and whether it’s garden waste or recycled waste, and they will cruise through those streets in the middle of the night and go through the garbage bins,” Mr Forsyth says.

    He says once they have enough personal information, they will on-sell that information abroad – including dumped bank statements, credit card offers, phone bills, which already bear the person’s name and address.

    The Australian Crime Commission cites identity theft as the “fastest growing crime in Australia” , and a survey commissioned by the Attorney-General’s office in June revealed 1 in 6 people had been or knew someone who had been a victim of identity theft or misuse.

    There are significant long-term implications for the identity theft victim past the initial monies lost if fraudsters gain access to a person’s credit rating.

    If an account – fraudulent or otherwise – goes unpaid past 60 days, the creditor will list the non-payment as a ‘default’ on the person’s credit file. This default will remain on the credit file for 5 years and can severely hinder  any chances of obtaining credit during that time.

    Often the first time victims of identity theft and subsequent fraud find out about the crime is when they go to apply for a loan or credit card and are refused due to defaults they were not aware of.

    Adverse credit file listings such as defaults are not removed easily, and at this stage, victims have to do a whole lot of work to try and prove to creditors they were not responsible for the unpaid accounts, including providing Police reports.

    Information should be treated with the respect it gets in criminal circles.

    Here’s some simple ways to protect personal information from identity theft:

    – Buy a shredder and cross -shred every piece of personally identifiable documentation that is no longer required before putting in the rubbish bin.

    -Buy a safe for personal documents at home

    -Put a lock on the letterbox to avoid mail being stolen.

    -NEVER give out personal information to any person or entity without verifying their identity .

    -Personal information is valuable – always question the need for people to have it. If in doubt – opt out.

    – Obtain a credit report regularly. People who may be vulnerable to identity theft can contact one or more of the major credit reporting agencies in Australia and request a copy of their credit file.  A credit file report is free for Australians every 12 months.

    For a fee, Veda Advantage offers credit file holders an alert service, which tracks any changes to their credit file within a 12 month period.This could detect suspicious entries such as new credit enquiries or changes in contact details which would point to an identity theft attempt, allowing steps to be taken before the fraud affects the person’s good credit rating.

    Personal information is so valuable to fraudsters. Shred it before you bin it, and lock it up if you want to keep it. Filter who gets it.  Protect your identity and your credit file integrity.

    For more information on identity theft and credit repair, people may contact MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Grant Cochrane / FreeDigitalPhotos.net

  • Internet dating scams rampant in Australia

    Lonely hearts watch out – your wallets or your good credit rating could be next!

    It was revealed by Queensland’s Courier Mail last week that more than $15 million was lost by victims of dating scams last year. This was perpetrated by overseas criminals mainly from West Africa, masquerading as online love interests.

    In response, dating websites in Australia will be now be required by the Australian Competition and Consumer Commission to display scam warnings in an attempt to combat one of the fastest growing types of scam, preying on lonely people. It is threatening action against companies that fail to comply.

    A top-level fraud conference on the Gold Coast was told almost 600 Australians had lost $15.1 million to cyber-criminals posing as potential partners, with one-in-five being duped of more than $100,000.

    Police Commissioner Bob Atkinson said romance scams had become the “fraud of choice” and victims were being left financially and emotionally crushed.

    “We’re seeing thousands of Australians sending millions of dollars to criminals overseas every month,” he told the International Organised Fraud Symposium at Sanctuary Cove.

    “Apart from losing large amounts of wealth and in some cases their homes as a result of this brutal type of offence, some people take suicide as an option,” he said.

    And the victims? Mostly elderly widows.

    Queensland Police Fraud Squad chief superintendent Brian Hay said women “are twice as likely to be victims”.

    “It’s particularly savage. We’re talking about vulnerable people who put their heart on the line and lose their house and life savings as well,” he said.

    How the scams work

    The Government’s SCAMWatch website explains in more detail how these dating scams work.

    “Scammers target victims by creating fake profiles on legitimate internet dating services. Once you are in contact with a scammer, they will express strong emotions for you in a relatively short period of time and will suggest you move the relationship away from the website, to phone, email and/or instant messaging. Scammers often claim to be from Australia, but travelling or working overseas.

    They will go to great lengths to gain your interest and trust, such as sharing personal information and even sending you gifts. Scammers may take months, to build what seems like the romance of a lifetime and may even pretend to book flights to visit you, but never actually come. Once they have gained your trust they will ask you (either subtly or directly) for money, gifts or your banking/credit card details. They will pretend to need these for a variety of reasons.” The website explains.

    How scams affect the victims

    For people who have fallen for this type of scam, generally they are robbed of money. But in some cases, the fraudsters can have enough personal information about their victims to be able to get credit cards or loans or even mortgage properties in their name.

    The costs of identity theft can be significant long term for the victim and are magnified by the fact that  identity fraud is not often detected until the victim attempts to take out credit in their own name and is refused due to credit rating defaults they didn’t initiate.

    It can be quite a shock for someone to realise their entire financial freedom has been taken away, along with any monies that have been stolen from them. Basically someone with credit file defaults finds it extremely difficult to obtain credit for 5 years while the listing is part of their credit record.

    Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past 60 days can be listed as a default by creditors on the victim’s credit rating. Credit rating defaults remain on credit files in Australia for 5 years. The consequence of people having a black mark on their credit rating is generally an inability to obtain credit.

    Repairing a credit rating in Australia can sometimes be difficult for the individual to undertake. By law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their amendment or removal, but the difficulty is, to clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit. 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.

    SCAMwatch outlines some ways people can protect themselves when dating online:

    -ALWAYS consider the possibility that the approach may be a scam…Try to remove the emotion from your decision making no matter how caring or persistent they seem.
    -Talk to an independent friend, relative or fair trading agency before you send any money. THINK TWICE before sending money to someone you have only recently met online or haven’t met in person.
    -NEVER give credit card or online account details to anyone by email.
    -Be very careful about how much personal information you share on social network sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam.
    -If you agree to meet in person, tell family and friends where you are going. If this includes overseas travel, consider carefully the advice on www.smarttraveller.gov.au before making any plans.
    -Where possible, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer or international funds transfer. It is rare to recover money sent this way.
    -If you think you have provided your account details to a scammer, contact your bank or financial institution immediately.
    -Money laundering is a criminal offence: do not agree to transfer money for someone else.

    For more information, or for people who need help restoring a credit rating following identity theft contact MyCRA Credit Repairs tollfree 1300 617 218 or visit the website www.mycra.com.au.

    Image: renjith krishnan/ FreeDigitalPhotos.net

     

  • Internet fraud can happen to anyone

    Media Release

    3 October 2011

    Many of the new forms of online fraud are sophisticated and elaborate – often even fooling those who believe they are computer-savvy, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel dismisses claims victims of online fraud are stupid and are ‘asking’ to be ripped off and says keeping abreast of current scams is sometimes the only way to avoid being a victim.

    “Some of my clients have been cleverly fooled by scammers, who have weaved a tangled web of lies and deceit. It is not just a case of ‘oh we were asked to  send money so we did’ – most people believed they were dealing with legitimate companies and have been unlucky to end up on the wrong end of fraud,” Mr Doessel says.

    Mr Doessel’s comments come as Superintendent Hay, head of the Fraud and Corporate Crime Group, told the Brisbane Times recently, each month about 2000 Queenslanders transferred a total of $2 million to scammers in Nigeria and Ghana.

    Superintendant Hay, joined Investigators from Nigeria, Ghana and the United  States at a conference south of Brisbane last week, focused on tackling the global “fraud pandemic”.

    He urged people to have more compassion for victims of scams.

    “Fraud victims are victims of a crime, they need our respect and need our support and need our help to rebuild their lives,” he says.

    Mr Doessel says his company helps people clear adverse listings from their credit file which they believe should not be there. He says when a client experiences identity theft which leads to the scammer taking out credit in their name, they are left financially crippled.

    “Basically the victim ends up with defaults on their credit file which unfortunately means they are black listed from credit for 5 years. These victims can’t borrow for anything – they can’t even take out a mobile phone plan,” he says.

    Identity theft and subsequent fraud has become rampant worldwide. A survey commissioned by the Attorney-General’s office in July showed 1 in 6 Australians had been or knew someone who had been the victim of identity theft or misuse.

    The survey also revealed that the majority of identity theft or misuse occurred over the Internet (58 per cent), or through the loss of a credit or debit card (30 per cent).  Stolen identify information was primarily used to purchase goods or services (55 per cent) or to obtain finance, credit or a loan (26 per cent).

    Mr Doessel says by blaming the victims of identity theft and scams, we are making light of the often sophisticated nature of fraud and for this reason more people could possibly fall victim to it in the future.“

    People need to know this business is lucrative, and the fraudsters are vehement. New scams are being cooked up every day to dupe people into giving over their money or their personal details. Just because people aren’t fooled by the current scams, doesn’t mean they are totally immune,” he says.

    He says internet users need to keep up-to-date with all scams being perpetrated in the community, and this can start with subscribing to the Government’s Stay Smart Online, and SCAMWatch websites, which  alerts people to new scams and viruses as they arise.

    “Unfortunately this is a war we are all waging against unknown criminals from an unknown location, that can be whoever they want to be in order to steal people’s money or their good name. Fighting it starts with risk awareness and being extremely protective over who gets our personal information,” he says.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations   Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel  – Director   Ph 07 3124 7133

    www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld
    MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    Links:
    http://www.brisbanetimes.com.au/technology/technology-news/fraud-victims-just-dont-listen-police-20110927-1kv5t.html#ixzz1Zg5GiF9x
    http://www.ag.gov.au/www/ministers/mcclelland.nsf/Page/MediaReleases_2011_ThirdQuarter_3July2011-Newresearchshowsidentitytheftaffectsoneinsixpeople

    Image: Michelle Meiklejohn / FreeDigitalPhotos.net

  • Dumping of e-waste in Ghana exposes sensitive data to potential identity thieves

    Media Release
    29 September 2011

    The illegal dumping of Australian e-waste on overseas shores and the potential for those discarded hard drives to still contain sensitive data which exposes the former owners to identity theft and potential misuse of their credit file, demonstrates how urgently Australia needs to change its attitude towards personal data, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says personal information is a valuable commodity nowadays.

    “Identity theft and subsequent fraud is a lucrative business for criminals, and personal details are the key to potentially racking up thousands of dollars of credit in the victim’s name.”

    “To avoid identity theft, people need to develop the ethos that personal information should be destroyed when it is no longer required, whether that involves cross-shredding documents, or properly wiping hard drives of stored data before discarding,” Mr Doessel says.

    These warnings come after it was revealed by SBS’s Dateline program this week that western countries across the globe, including Australia, had been illegally dumping some 500 containers worth of e-waste such as TVs, monitors and computers into Ghana every month.

    While many locals scavenge the waste for copper and other valuable resources, it was revealed by a local journalist that getting private information from hard drives was also possible and demonstrated accessing personal information from one of the dumped hard drives.

    “You can find personal information, company information…So people can take information and then use it to frame you up or do something against you,” journalist Enoch Messiah says as reported by ZD Net Australia.

    Mr Doessel says a lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. He says often victims don’t know about it right away – and that’s where their credit file can be compromised.

    “There is no simple re-imbursement for loss on this scale. Not only can the victim’s bank accounts be drained, but they can also find themselves with several defaults on their credit file that they did not initiate, basically destroying their ability to obtain all forms of credit unless they can be removed,” he says.

    He says once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    “These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive blow to their financial future – defaults foras little as $100 will stop someone from getting a home loan,” he says.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    “What is not widely known is how difficult credit repair can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence” he says.
    According to ZD Net, the government recently passed legislation mandating a co-regulatory scheme for computer and TV recycling in Australia, set to be phased in at the end of this year.

    “But people should still be aware that whenever they want to discard a hard drive, they should take adequate measures to ensure all sensitive data is adequately removed before it leaves their hands,” Mr Doessel says.

    Adrian Briscoe, general manager of Asia Pacific for data recovery company Kroll Ontrack, told ZDNet Australia that the best methods to ensure data is completely removed was to use software that overrides the hard-drive sectors seven times, or to physically wipe the hard drive using a degausser that pulses the drive with electromagnetic radiation. Briscoe said it was vital to personally ensure the data is erased before getting rid of old hard drives.

    “I don’t think people necessarily understand the dangers of just releasing a computer back … they have no guarantee that once they release a computer physically, that the data won’t turn up again because they have not actually witness the data being erased,” Briscoe says.

    For more information on credit repair following identity theft, people can contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit their website www.mycra.com.au.

    /ENDS.

    Please contact:   Lisa Brewster – Media Relations   Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel  – Director    Ph 07 3124 7133  www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

    Links: http://www.zdnet.com.au/dumped-aussie-e-waste-a-security-threat-339323066.htm

    Image: Sura Nualpradid/ FreeDigitalPhotos.net

     

     

  • Till debt do us part: Navigating joint finances

    Some people are great with money – but can still experience financial downfalls and sprial into debt and a bad credit rating due to the shortcomings of their partners.

    Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are unable to proceed due to debts and bad credit their partner has initiated while they are together.

    Often we hear from clients “I’m not sure how this happened – how can I be responsible for something my partner did?” Unfortunately when couples go into joint debt, both credit files are at risk if repayments aren’t made.

    So how do people protect themselves, their assets and their good credit rating, BEFORE they marry or move in together?

    Recently savingsguide.com.au looked into this issue in their post ‘The Debt Affair: When your partner is hiding debt’.

    They talk about establishing financial boundaries when people are new in a relationship. The article talks about the signs to watch out for when people suspect their partner is hiding debt.

    Some of those include:

    -Assume that the truth may be stretched when it comes to money
    -Often money problems can be a result of another issue: stress, addiction, self-esteem.
    -Discussing money is taboo
    -Do their spending patterns show they spend more than they have?
    -Ask for full disclosure

    People should remember that relationships in their new stage are some of the most exciting times in our lives. But when it comes to taking the next step and moving in together, everyone should ask about their partner’s financial past.

    Otherwise they may be forced to suffer with a bad credit rating due to mistakes made by partners – past or present.

    Bad credit is such a phenomenal problem in this day and age, with lots of people living beyond their means and creditors eager to issue defaults.

    Many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    People should sit down together before any ties are made and discussing what financial position the other is in. Ask whether they have any debt; talk about paying bills; get a general feel for how this person regards money and finances. If they appear too blasé about money, this should ring alarm bells. It may not mean the relationship needs to end, but it should mean you keep finances separate for a significant period of time. You could also suggest getting a copy of your credit files to see if there are any blemishes.

    A credit file is compiled on any person who has ever been ‘credit active’. It lists personal details like name and address, but also any times the person has applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.
    Prospective partners can request a copy of their credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services (if you are Tasmanian) and Experian. This will be provided within 10 working days.

    Any black marks on a person’s credit file remains on their file for 5 years and can greatly hinder a person’s chances of receiving further credit.
    A bad credit rating sticks. Most clients find they are black listed from credit for a five year period following a default on their record. Even having too many credit enquiries or a default from a simple unpaid phone bill can be enough to be refused a home loan with most lenders in the current economic climate.

    My CRA Credit Repairs has some tips for people entering into a new ‘financial’ relationship:

    •When you enter into any financial agreement with another person – don’t bury your head in the sand when it comes to the repayments. Regularly check your statements and bills so you can catch problems early.
    •Be aware that as high as emotions can run, they can also get just as low. Your financial generosity now could become the very thing that is used against you if the relationship sours. Consider carefully how secure you would be in each transaction if things did take a turn for the worse.
    •Consider keeping some things separate. Just because you have bought a home together doesn’t mean you can’t keep other bank accounts, credit card and previous homes in your name only.
    •Get a copy of your credit file regularly. This will notify you of any problems before you apply for credit in the future.

    Contact MyCRA Credit Repairs on 1300 667 218 for help with credit repair.
    Image: photostock/ FreeDigitalPhotos.net

  • Privacy Commissioner casts final verdict on Sony data breach

    It seems that there will be no reprisal according to Australian law for the victims of the Sony PlayStation/Qriocity saga which left the personal information of approximately 77 million Sony customers worldwide exposed to hackers and threatened the victims with possible identity theft and credit file misuse.

    Australian Privacy Commissioner Timothy Pilgrim released his official report last Thursday on his investigation into Sony Australia’s possible breach of the Privacy Act.

    His investigation found that Sony did not breach Australia’s Privacy Act when it fell victim to a cyber-attack.

    The investigation looked at whether Sony complied with the National Privacy Principles in the Privacy Act. The Principles require organisations to take reasonable steps to protect personal information, and limit the circumstances in which organisations can use and disclose personal information.

    “I found no evidence that Sony intentionally disclosed any personal information to a third party.  Rather, its Network Platform was hacked into. I also found that Sony took reasonable steps to protect its customers’ personal information, including encrypting credit card information and ensuring that appropriate physical, network and communication security measures were in place,” Mr Pilgrim said.

    Mr Pilgrim was concerned about the time that elapsed between Sony becoming aware of the incident and notifying its Australian customers and the OAIC. There was a gap of a week between the data breach and the notification. However, the Privacy Act does not contain a deadline for data breach notification – so this failure to notify does not classify as a breach of privacy.

    “I would have liked to have seen Sony act more swiftly to let its customers know about this incident. Immediate or early notification of a data breach can allow individuals to take steps to mitigate the risks that arise from their information being compromised,” Mr Pilgrim said.

    “However, I am pleased that in response to this incident, Sony has now implemented extra security measures to strengthen protections around the Network Platform.”

    During the investigation, the Privacy Commissioner examined information pertaining to relationships between the various Sony entities involved in this matter.

    “The international nature of these relationships raises challenges for regulators monitoring personal information flows in these kinds of situations where large global companies are collecting personal information while operating in a number of different jurisdictions.”

    In recognition of this, the Privacy Commissioner will provide a copy of his investigation report to privacy regulators in APEC member economies for their consideration.

    The Privacy Commissioner can only investigate what is in the bounds of the Australia’s Privacy Act to investigate – and here we get to the real problem.

    Unfortunately our Privacy Laws don’t extend to mandatory data breach notification. So the Privacy Commissioner was unable to investigate what many agree was the real issue – why Sony took a week to notify its millions of customers their personal information – including credit card details had been compromised.

    The entire saga and this subsequent investigation has served to highlight a massive hole in Australia’s privacy laws which are leaving people open to this kind of breach of security with no retribution via our Government policy.

    As we advised at the time of the data breach, it is important for anyone who has had their personal details compromised in this way to be on the  lookout for possible misuse of their credit file.

    Often people don’t know they have been victims of identity theft until they attempt to obtain credit and are refused, due to defaults on their credit report they are unaware of.

    It is recommended that everyone check their credit file for free every year from Australia’s credit reporting agencies. For people who have been the victim of a data breach and other people vulnerable to identity theft, it might pay to include a separate credit file monitoring service. For instance Veda Advantage will (for a fee) monitor people’s credit files and alert the credit file holder to any changes or entries on their credit file – including credit enquiries.

    If people need help with credit rating repair following identity theft, they can contact MyCRA Credit Repairs toll free within Australia on 1300 667 218.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

     

  • Facebook users should be wary of new Timeline feature

    Security of people’s personal information on Facebook is again under the spotlight since the announcement of Facebook’s new ‘Timeline’ feature which tracks the digital history of its users, charting their online activity.

    And in a shock revelation today Australian technologist, Nik Cubrilovic has revealed this tracking actually continues even after the user has logged out. Cubrilovic says tests he has conducted show that:

    “when users log out of Facebook, rather than deleting its tracking cookies, the site merely modifies them, maintaining account information and other unique tokens that can be used to identify users,” his blog says.

    An article in The Australian last week titled Every click you make, Facebook tracker will be watching you featured Australian Privacy Commissioner Timothy Pilgrim. He issued a warning to consumers on about the introduction of this new feature, and its privacy implications.

    “I would strongly encourage people using social networking sites to make sure they know what information may be made publicly available on that site and to think carefully about the information they are sharing and who might have access to it,” Mr Pilgrim said.

    With the new information that has come to light today, it would seem even more important for Facebook users to exercise caution around this new system.

    The discovery is featured in The Sydney Morning Herald’s story Facebook tracks you even after logging out. The article quotes David Vaile, executive director of UNSW’s Cyberspace Law and Policy Centre. He says Facebook’s changes were a ”breathtaking and audacious grab for whole life data”. In an email interview he accused the social networking site of attempting to ”normalise gross and unsafe overexposure”.

    ”While initially opt-in, the default then seems to be expose everything, and Facebook have form in the past for lowering protection after people get used to a certain level of initial protection – bait and switch,” he said.

    Cubrilovic says he has been sitting on this information for over a year, despite notifying Facebook of his discovery at the time. He says the recent introduction and media coverage of the Timeline feature has prompted him to reveal his findings.

    Although there has been no ‘official’ response to media to date in response to the issue, a couple of engineers who work for Facebook have denied allegations they track cookies.

    “I am a Facebook engineer that works on these systems and I wanted to say that the logged out cookies are used for safety and protection including: identifying spammers and phishers, detecting when somebody unauthorized is trying to access your account, helping you get back into your account if you get hacked, disabling registration for a under-age users who try to re-register with a different birthdate, powering account security features such as 2nd factor login approvals and notification, and identifying shared computers to discourage the use of “keep me logged in.”

    Also please know that also when you’re logged in (or out) we don’t use our cookies to track you on social plugins to target ads or sell your information to third parties. I’ve heard from so many that what we do is to share or sell your data, and that is just not true. We use your logged in cookies to personalize (show you what your friends liked), to help maintain and improve what we do, or for safety and protection,” the engineer writes to Emil Protalinski for ZD Net.

    Identity theft can be devastating for the victim, and many times they face an uphill battle with their credit rating following it. If the crime is sophisticated – the virtual stealing of someone’s good name can go undetected for a significant time. Often it is not until the victim applies for credit somewhere and is refused that they realise their personal information has been stolen and identity fraud has been committed against them. People may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

    Once any account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults remain listed on the victim’s credit file for a 5 year period.

    What is not widely known is how difficult recovery from identity theft can be. Unfortunately there is no guarantee defaults can be removed from a person’s credit file. The onus is on the identity theft victim to prove to creditors they didn’t initiate the debts in order to succeed with the credit repair. But for the victim who is virtually robbed of their financial freedom, it is a point worth fighting for.

    Signs which may alert people to possible identity theft:

    – Money missing from bank account/s
    – Suspicious entries on credit card statements or bank statements.
    – Statements for strange accounts.
    – Missing mail such as bank statements or Centrelink statements.
    – Credit refused somewhere.
    – Mail about new credit applications.

    For more information on identity theft, or for help with credit repair following identity theft, visit the MyCRA Credit Repairs website.

    Image: jscreationzs/ FreeDigitalPhotos.net

     

  • Gen Y could be hazardous to their parents’ credit health

    Media Release
    4 August 2011

    Parents who piggy back their children into the property market are not only risking their financial health by doing so, but their good credit rating, a national credit repairer warns.

    Director of MyCRA Credit Repairs, Graham Doessel says the trend of placing the family home as collateral to assist kids into the property market could easily see people up against credit problems if loan repayments aren’t met.

    “There is no doubt it is very difficult for Gen Y to break into the property market, but it is essential that parents understand the risks involved in going guarantor on their child’s home loan. The decision can affect their finances and their ability to obtain credit in the future if things go bad,” Mr Doessel says.

    This comes as the Herald Sun revealed on Sunday Gen Y is using any means possible to break into the property market – one method of which is to use their parent’s property as collateral for their purchase in what is known as a ‘Family Equity Loan.’

    “Aussie Carnegie mortgage broker Mark Daly said family equity loans, which can allow applicants to borrow the entire value of a home and avoid costly mortgage insurance, were becoming more popular with younger cash-strapped buyers,” the article says.

    But Mr Doessel says the risks are often very high on this type of loan. The guarantor is liable for repayments should they not be met, plus all interest, fees and charges, so if the child fails to make repayments, the family home and the parent’s credit file could be put at risk.

    “In instances where repayments are not met, the creditor can place a default on both credit files. Often parents are not made aware the repayments are late until they find the default on their credit file. By then it is too late for their credit rating, and they face being blacklisted from obtaining credit in the future,” Mr Doessel says.

    He says defaults remain on a person’s credit file for 5 years.

    “So for 5 years both parties are unable to obtain further credit and often unable to take out even a mobile phone plan. Parents who may have been close to financial freedom are now facing debt, and a shaky retirement,” he says.

    He says the situation is amplified if the guarantor is unable to cover the repayments.

    “The bank begins to use the property the guarantor put forward as collateral, to recover lost debts. There is a danger the guarantor can lose their home.”

    “By far the most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If there is any doubt of this don’t go guarantor,” Mr Doessel says.

    The Sydney Morning Herald’s Personal Loans Smart Guide provides some other points to consider when making the decision whether or not to go guarantor on a home loan:

    •How much is being borrowed?
    •How responsible is the borrower?
    •How stable is their employment?
    •Does the borrower have any other means of repaying the loan should he or she fall ill, be injured or become unemployed?
    •Can I afford to repay the total sum of the loan?

    Mr Doessel recommends parents seek third party and or legal advice before proceeding. He also recommends a few other policies be put in place:

    1. Insist children have adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.
    3. Set a specific amount that will be guaranteed, and ensure there is an ending to the time period of the guarantee –otherwise the guarantor could be liable for the loan for years to come.
    4. Ask that a copy of all bank statements be provided during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed while the parent’s good credit rating is still intact.
    5. If the need for a guarantor is purely due to black marks on the child’s credit file, they may still be able to access credit on their own terms. If the credit file contains a default listing which has errors, is unjust or simply should not be there, under current legislation they do have the right to have that inconsistency removed. This would result in a clear credit file and negate the need for a guarantor.  People can contact www.mycra.com.au for more information.

    /ENDS

    Please contact:
    Lisa Brewster – Media Relations    Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel  – Director   Office Ph: 07 3124 7133

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD.

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

    Links:
    http://www.heraldsun.com.au/money/young-bank-on-family-home-for-loan-security/story-e6frfh5f-1226133621971
    http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

    Image: Ambro / FreeDigitalPhotos.net