MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Parent equity loans skating on thin ice with credit rating

    Media Release

    Parent equity loans skating on thin ice with credit rating

    Predictions of a rise in parent equity loans following the pulling back of first home buyer’s grants in some states has a leading credit rating repairer worried about the possible impact on parental credit ratings in the crucial pre-retirement years.

    CEO of MyCRA Credit Repairs, Graham Doessel says a possible rise in parent equity loans is a dangerous trend. If the loan falls into arrears, parents would be liable, forcing them to work much longer than anticipated to pay off the debts that impact their own credit rating.

    “Many people go guarantor for their children, without assessing the risks to their own finances should the repayments not be met. If the child falls into arrears with payments, the parent is liable for any debt, and they are also blacklisted from credit accordingly,” Mr Doessel says.

    1300 Home Loans managing director, John Koldenda recently told Australian Broker he predicts a surge in popularity for the parent equity type of loan following the wind up of first home buyer subsidies in each State.

    “These loans have many benefits including allowing children to avoid expensive Lenders Mortgage Insurance that is paid by borrowers – often young people – with low equity,” he said.[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”][i]

    But Mr Doessel says whilst there are advantages for the child, if repayments are not made, the disadvantages stretch to both parties.

    “If the adult child fails to make repayments the parent is liable for this debt, if that extends past 60 days, the creditor can place a default on both credit files. In some cases parents are not aware repayments have stopped, and it’s not until they attempt to take out credit themselves and are refused that they realise there is a problem,” Mr Doessel says.

    He says a default of this nature on someone’s credit file can severely hinder chances of obtaining credit, and defaults remain on a person’s credit file for 5 years.

    “Worst case scenario, is 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. Those people who were so close to financial freedom are now facing debt, and a shaky retirement,” he says.

    The Sydney Morning Herald Personal Loans Smart Guide[ii] provides some important questions for people to consider when making the decision whether or not to go guarantee 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?
    “By far and away 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, it may be best not to guarantee the loan,” Mr Doessel says.

    If people do decide they want to proceed with a parent equity loan, he recommends taking a few additional things into consideration before signing on the dotted line:

    1. Seek third party and or legal advice prior to any agreement being made.

    2. Insist there is 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

    4. Ensure there is an ending to the time period of the guarantee

    5. Request a copy of all bank statements during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed prior to any defaults, and while the parent’s good credit rating is still intact.

    /ENDS

    Please contact:

    Lisa Brewster – Media Relations 0450 554 007 media@mycra.com.au

    Graham Doessel – Director Ph 3124 7133

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

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

    ——————————————————————————–

    [i] http://www.brokernews.com.au/article/parents-to-step-in-as-fhb-boosts-end-129917.aspx

    [ii] http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

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  • Get organised for Christmas to save your money and your credit rating

    Christmas is coming!!! Less than two months to go – gulp. If you have started to think about buying gifts, but don’t have much cash to do that with – then now is the time to start saving or to think about taking out credit to cover the costs. We look at the best ways to stay smart about credit over the Christmas period – and show you how a budget could save you money and reduce your chances of succumbing to bad credit history by racking up Christmas credit card debt you can’t pay back.

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

    David and Libby Koch recently wrote a great article on saving money over Christmas ‘Budget for the festive financial cliff.’ They advise you to start saving now, and sidestep credit as much as possible to avoid the February blues after the credit card bill comes in.

    “The Christmas, New Year and summer holiday period can leave even the best-run family budget in tatters.

    It can be a huge drain on family finances and cause a lot of undue stress. But by starting to plan early you can make sure that it’s a relaxing and affordable time for everyone, even the organiser.

    We’re not talking about two weeks out, we mean two months out and that’s now,” they write.

    Planning is great advice, and that can include sitting down now and writing your shopping list, whilst you are calm and slightly removed from the Christmas madness which often sees us overspending on everyone.

    The Kochs’ advise setting a budget, “set realistic limits and ensure everything is accounted for.”

    Their top tips include:

    • Suggest a Secret Santa

    A great way to keep the cost of presents under control is through Secret Santa, where everyone draws a name out of a hat and only buys a present for that person. This works best for big extended families and with a pre-agreed limit for everyone to spend on their gift.

    Not only does it put a cap on costs, but also means everyone gets one good present instead of lots less useful gifts. That’s the plan anyway.

    • Write down what you want for Christmas

    Try writing down the things you want to buy for yourself over the next couple of months. Then, next time somebody asks, think back to that list and hopefully you’ll get something you would have spent money on anyway.

    They also suggest:

    • Buy in bulk and give extended family the same item.

    • Give a voucher for your time – to babysit, garden, etc.

    • Make a gift such as craft items or cookies.

    • Regift any of those unwanted presents.

    • Make a tax-deductible donation to charity.

    Want more tips? Earlier in the month savingsguide.com.au posted some tips for getting frugal over Christmas ‘A Frugal Christmas: 5 Things To Do Now’. Here are a couple of great ideas:

    • Tally up what you spent last year

    There’s no way to prepare for the event- a joyous one to be sure, but difficult to fit into already stretched budgets- without knowing exactly what you spent[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”][last year]. My figure always gives me a heart tremour when I see it. You might be resolved to spend less, but it’s crucial to know what you’ve been spending.

    • Budget Cuts

    Shave ten dollars off each present you have to buy, commit to not buying presents for yourself as the season really kicks off (I am deeply guilty of that one, every year) and look at organising three of four major events, as opposed to trying to attend twenty smaller ones. Rewrite your budget to take into account your ideal expenditure.

    Credit can be really handy at Christmas time – but just because you’re putting something on ‘the card’ doesn’t mean you can ignore a budget. At some stage you will pay that credit back. So it is really important to watch out for overspending with credit at Christmas. It’s easy to get caught up in the “Christmas spirit” – but don’t spend what you can’t afford.

    You may, as many do, feel the pressure to “give” so much you do so at the expense of your own budget and ultimately end up with a debt you can’t pay back. The end result of this can be getting into more debt to pay the original debt. It eventually catches up with you, and you end up with loan commitments you can’t meet or other bills get neglected because you just can’t afford to pay it all. Creditors start to default your credit file. Your financial freedom is compromised.

    This is why budgeting is so important.

    There is always something great you can buy that fits in your price range.  It just takes a bit of thinking. Besides – isn’t it the thought that counts? If you take the time to think cleverly now, you won’t be tempted to overspend in a mad panic later. And at the end of the day, your good credit rating won’t be suffering in the New Year, due to credit card debt.

    If you have a default on your credit file, or other bad credit history which you don’t believe should be there, then we may be able to help remove it and give you back your clean credit rating. Contact a MyCRA Credit Rating Repairs to have a no-obligation chat with a Credit Repair Advisor about your situation. If you want to know more about your credit rating, or credit repair – or visit our main site www.mycra.com.au.

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  • Nobody immune to identity theft as fraudsters turn their focus to investors

    Media Release

    Nobody immune to identity theft as fraudsters turn their focus to investors

    Wealthy, educated Australians looking to invest have become prime targets for the new breed of fraudster who are concocting elaborate scams designed to lure their hard earned savings. A national credit repairer says this demonstrates that the threat of fraud and identity theft is not limited to the naïve, but for all Australians.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very sophisticated investment scams probably did not think they were in a high risk group, but he warns that all need to be on edge about where we could get caught out.

    “We need to get away from this idea that somehow those people that fall for scams are gullible. This is simply not true in all cases. Identity theft is the new black in criminal circles, and some of those criminals are willing to go to great lengths to fool their victims – particularly if the profits are lucrative,” Mr Doessel says.

    The Australian Crime Commission and Australian Institute of Criminology reported this year that more than 2600 Australians have lost in excess of $113 million to this type of investment fraud, but it is believed there is a high level of under-reporting and the extent is far greater. (1)

    They warn that the scam is incredibly sophisticated and has fooled even experienced investors with elaborate back up data, including fake websites and publications and fraudsters even issuing online press releases in the hope of extracting major dollars from their victims.

    Australians have been targets for this fraud because of high levels of superannuation and retirement savings. The Australian economy is also known to have been less affected by the global financial crisis than other nations.

    Mr Doessel says victims can lose their nest egg, and can also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group will generally have a good clean credit rating, and fraudsters can use the personal information they become privy to in order to set up a fake identity. This gives them access to huge amounts of credit in their victim’s name as well,” he says.

    He goes on to say “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years due to bad credit history.”

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year. (2)

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed. (3)

    Matthew Strassberg, a Veda senior advisor said: “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Mr Doessel says pinpointing identity and credit fraud early can be difficult.

    “Fraudsters often change contact details, and many victims don’t know they have been scammed until they apply for credit and are refused,” he explains.

    He says sometimes there can be some early warning signs of identity theft, and people should watch out for these occurrences:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.

    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.

    3. Can’t log in to social networking or bank accounts.

    4. Bills or letters of demand sent to you for accounts you don’t know about.

    5. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    6. Credit refusal due to a bad credit rating.

    If people feel they may be vulnerable to identity theft, they should alert their creditors, and also alert credit reporting agencies, who may be able to ‘flag’ their accounts to prevent fraudsters accessing credit in their name.

    Mr Doessel says regular credit checks are vital – and if a credit check reveals any “surprise bad credit” through possible identity theft – victims should act immediately to notify Police.

    “This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating following identity theft, the first thing I tell them is to make sure they have a Police report,” he says.

    For more information on restoring a credit rating following identity theft, contact MyCRA Credit Rating Repairs on 1300 667 218 www.mycra.com.au.

    /ENDS.

    Please contact:

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

    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.

    (1) http://www.ministerhomeaffairs.gov.au/Mediareleases/Pages/2012/Third%20Quarter/9July2012-Newwarning-seriousinvestmentfraud.aspx
    (2) http://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbytitle/B634CE9C7619C801CA25747400263E7E?OpenDocument
    (3) http://m.smh.com.au/nsw/identity-theft-hits-one-in-five-study-20120705-21j37.html

     

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  • Mobile Phone Bill shock – Have YOU been a victim?

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, and more are copping defaults on their credit file. There is an increasing number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones. We have seen it here, and the Telecommunications Ombudsman has also released similar findings in its annual report today. We look at the finding in this report, and the plight of telco customers with bad credit history.

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

    Consumers are confused when it comes to data allowance on their smartphones, and the providers are not helping.

    Often clients have claimed to go over their allowance really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they can have great difficulty in cancelling the accounts or coming to a resolution with the company over these billing issues.

    Almost 26 per cent of our credit repair clientele in the 12 months to July were Telco customers.

    Sometimes consumers reluctantly pay the bill, think the matter is settled, only to find they are defaulted anyway, and others just refuse to pay the bill until they get some resolution. Either way, they are faced with at least 5 years of bad credit from the episode unless they can make a successful complaint.

    This reflects findings from the Telecommunications Industry Ombudsman (TIO) report on its services for the last financial year, which was released today.

    The TIO’s findings show mobile phone users are increasingly unhappy with the service they receive, with a 9 per cent rise in complaints last financial year.

    Ombudsman Simon Cohen said two out of three complaints made to the TIO were about mobile phones, with the biggest percentage rise about disputed internet usage charges (150 per cent).

    “Complaints about unexpectedly high bills and unnecessary financial overcommitment point to the urgent need for strong spend management rules, including those that are included in the new Telecommunications Consumer Protection Code,” Mr Cohen said.

    A Telecommunications Protection Code has recently been pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

    These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    The TIO’s annual report also shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370. There was also a 16 per cent increase in complaints about consumers being credit default listed without proper notification, up from 3,220 to 3,730.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Preventing a credit file default on your mobile phone bill often comes down to awareness of legalities.

    Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins.

    Here’s some ideas on what you can do if you disagree with a mobile phone bill:

    How to Dispute That Shocking Mobile Bill

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with if you are calling).

    2. You may need to make a formal complaint in writing. If there is no resolution over the telephone, set out what specific resolution you require, and all the details of your complaint. The telco has 30 days to answer any written complaint you make.

    3. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway. If you have come to a resolution with the telco verbally, get it in writing and make sure it clearly states what will happen from here.

    4. If the matter can’t be resolved to your satisfaction internally, take your case to the Telecommunications Industry Ombudsman. The TIO will make a decision on the matter, and their decision will be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    5. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to champion for the removal of credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. The credit repairer may escalate the matter to the TIO on the client’s behalf if necessary, but it may not be the only option.

    A good credit repairer will conduct an audit-like investigation to uncover errors or non-compliance that may still see the default removed, even where an Ombudsman has sided with the Credit Provider.

    Image: posterize/ www.

  • Fraudsters pinch Australian Crime Commission logo to scam consumers

    Don’t be fooled with unsolicited emails, no matter how ‘official’ they look. The Australian Crime Commission (ACC) announced last week it has been made aware of a number of scams using the ACC name and logo to lure consumers into paying thousands of dollars into fraudulent bank accounts. We describe the details of this scam, and look at what you could be giving away that could lead to bad credit history.

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

    The ACC was last week alerted to a fraudulent email pretending to be from ACC Chief Executive Officer John Lawler, which asks the consumer to pay $900 into a Nigerian bank account in order to receive US$5 million.

    The email is sent from a non ACC email address. The ACC says all legitimate ACC emails contain @crimecommission.gov.au.

    They say the ACC will never request money from individuals in this way.

    Identifying characteristics of these emails may include:

    • Reference to the Department of Homeland Security
    • Reference to the Chief Executive Office of the Australian Crime Commission
    • Reference to Nigerian based banks
    • Requests for recipients to send amounts of money,” the ACC media release explains.

    This comes hot on the heels of another scam using the ACC name to rip off Australians.

    In late September the ACC became aware of a scam that falsely used the ACC, Australian Federal Police (AFP) and Australian Security Intelligence Organisation (ASIO) logo in an attempt to lure consumers into paying large sums of money for fake criminal background checks.

    The fraudulent criminal background checks were being initiated by criminals using dating websites.

    The ACC says the scams highlight the prevalence and scope of frauds being initiated by criminals operating in the cyber environment.

    Criminals are prepared to go to great lengths to pilfer the money or personal details of their victims. To target Australian victims, the average cyber-criminal or scammer needs to be pretty savvy. Most Australians are aware of the obvious scams (although they still do catch out some), but elaborate ones such as the recent investment super scam has meant many well-educated and intelligent people become victims.

    It’s do with the logos, the proof, the fake websites, and the fake statistics. You just don’t assume that people would go to those lengths to steal your money –right? Wrong! The more elaborate the scam, the more likely it will catch out those with serious money. If the prototype works – fraudsters can use it again and again to catch out thousands before they are shut down.

    The other danger with receiving unsolicited emails, is that you can unknowingly download a virus by clicking on a link or attachment. This virus can cause your computer to be part of a botnet, or it can use keyloggers to record your keystrokes and take your passwords and usernames for important sites you use online. So even if you don’t fall for the scam, you can still fall victim to scammers.

    Scams can bring profits in a myriad of ways. Fraudsters can swipe small amounts over a widespread group – or they can concentrate on draining the bank accounts of a few. What they can also do, is misuse or even on-sell the personal details of the victim for purposes of constructing a fake identity to steal credit.

    If successful, crooks can access credit cards, goods or even larger items like houses and cars. This leaves the victim in debt, and it will also leave the victim with a series of credit defaults attached to their name. It is just debilitating for the victim, who then has to go and try to prove to creditors they didn’t initiate the credit in order to clear the bad credit history.

    To prevent this from happening to you, we have compiled a quick list of some ways you can prevent becoming a scam or identity theft victim:

    1. Keep virus software up to date on your computers. Install automatic updates and perform regular virus scans.
    2. Be careful with unsolicited emails. Check the email address before you click on links and attachments.
    3. Keep your privacy settings secure on all social networking sites.
    4. Keep your passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.
    5. Check all your credit card and bank statements each time they come in.
    6. Cross-shred all personally identifiable information which you no longer need, rather than throwing it straight in the bin.
    7. Buy a safe for your personal information at home.
    8. Do not give any personal information or credit card details to anyone via phone, online or email unless you are sure the site is secure, and or you can verify the company details.
    9. Be aware of who gets your personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?
    10. Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website.
    11. Check your credit file for free every 12 months. By requesting a copy of your credit file from one or more of the major credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) you can be aware of any discrepancies which may need to investigated. Often it is only through a credit check which comes back with defaults on your credit file that  you may realise you have been a victim of identity theft.
    12. Report any incident of identity theft, no matter how small, or even if you have been reimbursed for the damage – to the Police. The more of us that report identity theft, the more effective will be our Government and Police response to it.

    For further information, visit these helpful links:

    ACCC’S SCAMwatch www.scamwatch.com.au for help with how to spot a scam and how to keep personal details safe.

    To report a scam, telephone them on 1300 795 995

    Stay Smart Online www.staysmartonline.gov.au for help with how to secure your computer, and how to keep abreast of cyber-related crime.

    MyCRA Credit Rating Repairs www.mycra.com.au for help with recovering your credit file following credit defaults from identity theft. Call 1300 667 218 to speak with a Credit Repair Advisor.

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  • VISA says ‘pens down’ to prevent credit card fraud

    Plastic fantastic transactions will no longer be signed off on as a proof of identity, but will require a PIN number to authorise. In the news today, VISA has announced it will phase out signature payments by April 1, 2013. We look at this decision, and address credit card fraud, and the ways in which your credit rating can be compromised because of it.

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

    It was reported by the Sydney Morning Herald today ‘Signing off: credit card giant ditches pens for PINS’, the movement to PIN and card-chip only transactions has been prompted by the need for increased security on credit cards.

    The move is expected to reduce signature-based credit card fraud which has been on the rise over the last two years – from 38 out of 100,000 transactions in 2010 to 52 out of 100,000 transactions in 2011.

    Visa spokeswoman Judy Shaw said the change was part of a comprehensive security plan to phase out the use of signatures in favour of PIN and card chips, which are already widely used by customers in stores and ATMs.

    “At the moment we’re working with financial institutions and other card schemes to discuss a uniform approach to chip and PIN use across the industry,” she told the Sydney Morning Herald.

    “It will include a communication program so that cardholders are aware of their PINs and know how to use them,” she said.

    But rival American Express will still allow customers to confirm purchases with signatures although cards are issued with chips.

    Garry Duursma, Vice President at eftpos services company Tyro, told SMH abandoning signatures will reduce the incidence of card-based fraud, but warned it could potentially open a new risk if the restaurant’s eftpos system isn’t properly integrated with the restaurant’s bank account system.

    This demonstrates that credit cards are not always the safest way to pay.

    In instances of credit card fraud, it is not always as simple as reimbursing the victim for unauthorised transactions.

    Whenever a criminal is able to access a person’s credit card details, or any of their personal information – there is a chance the victim can have not only unauthorised transactions issued in their name, but possibly new credit taken out as well.

    Credit card fraud can take on a myriad of forms – but it can be quite sophisticated, and in those instances criminals may gain access to additional forms of credit – new cards, loans even mortgages.

    If the victim is unaware of the fraud right away and their credit file ends up with defaults – they can be blacklisted from obtaining credit for 5 years. That one instance of credit card fraud can end up financially crippling the victim. They can’t borrow for anything – they can’t even take out a mobile phone plan.

    Here is one way someone may be a victim of identity theft through their credit card:

    In October last year, New York Police made major arrests of 111 people involved in five separate identity theft rings involving counterparts in China, Europe and the Middle East.

    The victims had credit cards skimmed at many New York shops, restaurants and even banks dating back to 2010.

    Then details on the credit cards where on-sold and duplicate cards were made that were then used to purchase and re-sell high-end goods such as electrical items.

    The Herald Sun reported at the time that authorities had calculated more than $US13 million ($13.4 million) was spent by the fraudsters on iPads, iPhones, computers, watches and fancy handbags from Gucci and Louis Vuitton.

    The ACCC’s SCAMWatch says a credit card scam can come in many forms. For example, scammers may use spyware or some other scam to obtain their victim’s credit card details. A scammer might steal or trick someone into telling them their security code (the three or four digit code on the card) and then make purchases over the internet or the telephone. If they know their PIN, they could also get cash advances from an ATM using a ‘cloned’ credit card (where the victim’s details have been copied onto the magnetic strip of another card).

    Of course, there is also a danger of someone using a credit card if it has been physically lost or stolen.

    Many types of fraud can also directly threaten the victim’s credit rating – such as account takeovers by fraudsters, and instances where criminals take out new credit in the victim’s name. It doesn’t even have to be for a large sum in some cases to be a massive blow to the victim’s ability to obtain credit. I have seen people get refused a home loan due to a default for as little as $100.

    Here are the ACCC’s signs to be aware of in relation to credit card fraud:

    Warning signs

    There are transactions listed in your credit card statement that you don’t understand.
    You have given your credit card details to someone you now suspect may not be trustworthy (perhaps over the internet).
    You have lost your card.
    You have kept your security information (eg your PIN or the access code on your card) written down somewhere near your card and you find that it is missing

    Some preventative steps against credit card fraud

    – Always check the ATM or EFTPOS terminal before using it. Look out for any suspicious boxes that could be skimming devices. If in doubt – don’t use it.
    – Always cover your PIN when making transactions.
    – Never let anyone walk out of sight with your credit card.
    – Consider paying cash on nights out and leave the cards where they are safe.
    – Always check your card statements and report any unauthorised transactions – however small – to the bank immediately. Sometimes ‘test’ withdrawals are made by criminals to see if the unauthorised transaction goes undetected, before more significant amounts are stolen.
    – Regularly keep up to date with what is on your credit file – which would reveal if defaults have been issued without your knowledge. People can check their credit file by obtaining a written report for free every 12 months, from each of Australia’s credit reporting agencies. But if they are suspicious of or vulnerable to fraud they can also for a fee obtain a credit report more often.
    – If there are any discrepancies of credit or adverse listings that should not be there they should act immediately to notify Police. This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating, the first thing I tell them is to make sure they have a Police report.

    For more information on restoring a credit rating following credit card fraud or any form of identity theft, contact MyCRA Credit Repairs on 1300 667 218 www.mycra.com.au.

    Image: adamr/ www.FreeDigitalPhotos.net

  • Save your pennies for a good cause…Buy Nothing New Month

    Wants and needs are two different things. But in the throes of spending – whether it be purchasing that new TV, or replacing your house with the latest furniture, the two concepts can be pretty difficult to separate. This thinking causes many of us to buy more than we can afford, and we find ourselves struggling to pay back credit. Too many runs of this, and we end up defaulting on our repayments and a Credit Provider somewhere penalises us with bad credit that takes 5 years to shake off. Education and awareness is the key to changing this kind of behaviour – which is natural in all of us. That’s why when we came across October’s “Buy Nothing New Month” – we thought it was a great idea. We hope it helps you.

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

    Could you last the rest of the month without buying anything new? That’s the concept for “Buy Nothing New Month” which runs until the end of October. The idea is to only buy necessities, and say a big NO to every other shopping expedition which could see you parting with your hard earned money during October.

    Savingsguide.com.au ran a post on Tuesday on this topic ‘Buy Nothing New Month’ and we think it’s a terrific concept.

    Buy Nothing New Month (BNNM) was created by the Sacred Heart Mission in a bid to encourage mindfulness about spending habits. The official BNNM website for has a real edge to it – it seems aimed at changing the minds of young people and building a better future. Savingsguide.com.au’s Toria Phillips writes “isn’t it nice to see more people getting on board as it become more socially acceptable, heck maybe even cool, to be a saver?”

    Here’s more from BNNM about what the month is all about:

    Buy Nothing New Month is the global movement for collective, conscientious consumption.

    It’s a little idea, that started in Melbourne and is spreading to the Netherlands and USA.

    In 2011, Sydney Morning Herald ran a poll asking “is Buy Nothing New Month a good idea?” Over 10,000 voted. 82% said “yes”

    It’s a one month challenge to buy nothing new (with the exception of essentials like food, hygiene and medicines)

    Buy Nothing New Month isn’t Buy Nothing New Never. Nor is it about going without.

    It’s literally about taking one month off to really think, “Do I really need it?” If I do, “can I get it second-hand, borrow it or rent it? What are my alternatives? Can I borrow from a friend? Can I swap with my neighbor?”

    It’s about thinking where our stuff comes from (finite resources) and where it goes when we’re done (often landfill) and what are the fantastic alternatives out there to extend the life of our ‘stuff’.

    It’s easy. It’s fun. It’s moving from consumption-driven to community-driven.

    It’s good for us, our wallets and our planet.

    Hop on board!

    Don’t worry that the month is almost out – take the last week or two to give it a go – or maybe run it into November if you can. For tips on how to do it – visit the BNNM website’s How to Page.

    Back in September we wrote an article involving data from the Australian Bureau of Statistics which showed one in seven Australians spend more than they earn – ‘Are you spending more than you earn? You’re not alone.’ These are alarming figures and it makes me realise that not enough Australians understand the power of credit. It is a great concept, but as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life. Not make ourselves slaves to it. All it does is end up becoming a monkey on our back when we are living with bad credit history.

    This disease of consumerism also known as ‘Affluenza’ (when too much is never enough) is mentioned on the BNNM website, and it is an idea that some Australians have taken on board, and it has enabled them to change their ‘stinkin- thinkin’ about money.

    Is this you?

    “We all know this stuff but we forget. Or, more accurately, we choose to forget. We want what we want and we want it now. So, we cram that whining voice inside our head telling us to be frugal deep into our subconscious, buy the thing we like, and only release him later. Of course, by this stage it is invariably too late to undo the damage so we shrug our shoulders, say “oh well” and convince the whiny voice that we “forgot” and that it was really all beyond our control,” Savingsguide.com.au’s Toria Phillips muses.

    If so, put that little voice on loudspeaker! Change your stinkin thinkin – and take the ideas of Buy Nothing New This Month and apply them in your life. This won’t guarantee that you do not make the occasional bad choice, and it won’t guarantee that you aren’t a victim of credit rating errors which lead to bad credit history. But it gives you a good sporting chance of keeping a clear credit file and having the real financial independence that everyone deserves.

    For advice on how to restore your good name and have a clear credit file or help to dispute unfair credit listings, contact a Credit Repair Advisor on 1300 667 218 or visit our main site MyCRA Credit Rating Repairs for more information on what we do www.mycra.com.au.

    Image: Pixomar/ www.FreeDigitalPhotos.net

  • First home owners trapped in their current home loan and locked out of refinancing

    Despite massive interest rate cuts, and the positive jump in the number of first home buyers entering the market, those that are looking to refinance are getting rejected at a rate of knots due to reduced equity in their homes, according to JP Morgan. Banks are being choosy about who they lend to, and those that are trying to refinance their first home are doing it tough. They say this will dampen our housing market for some time. We look at this issue, and other issues around credit history which may impact on a successful refinance.

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

    The ‘JP Morgan Mortgage Industry Report Vol 16′ focuses on recent mortgage approvals data. It paints a rather gloomy view of our housing market in Australia.

    The executive summary of the report details that although lower mortgage rates have meant borrowers have been able to reduce debt, the cuts are not spurring on mortgage approvals.

    “Interestingly, not only are the volume of approvals weak, but the average value of approvals is declining. While this may simplistically be dismissed as a broader indication of stalled house prices, we conclude that a degree of tightness for refinancings is evident – particularly for First Time Buyers,” it is reported…

    “Growth in the average value of each form of owner occupied approval is now in negative territory. This is the first time this has occurred since data became available in the early 1990’s! One key reason we offer is a significant reduction in the LVR at which refinancings are taking place.”

    Housing credit growth is at its lowest level since the mid-1970s, and JP Morgan is expecting low rates of credit growth to continue or to at worst decline rather than do a “quick rebound off the back of lower interest rates.”

    They say first home owners are facing the bulk of the rejections. They are increasingly finding themselves trapped in their current home loan as banks refuse their applications for new ones.

    “Specifically they haven’t absorbed enough loan devaluation ratio in terms of the house prices being flat and they haven’t had sufficient time to actually make a dent in the mortgage through repayments,” Scott Manning, Banking Analyst with JP Morgan told ABC’s The Business last week.

    This report is in keeping with RP Data information released in July that showed more home owners were slipping into negative equity. The Sydney Morning Herald reported in it’s story ‘More homes slipping into negative equity as prices fall’ that in the three months to December last year,  6.4 per cent of homes were valued at less than their purchase price, a rise of 1.5 percentage points.

    “Within the 6.4 per cent, 27 per cent of people who owned a home for one to two years had properties worth less than their purchase price.

    By contrast, only about 1 per cent of owners holding their property for between nine and 10 years were in the same situation, according to property analysts RP Data.

    So with many consumers experiencing reduced equity which is leading to more rejections by lenders, the other factor that comes in to play is rejection for refinancing because of bad credit history.

    Surprise bad credit that prevents refinancing

    Many times people don’t know they have bad credit history until they apply for finance.

    Bad credit history can ruin plans to refinance even if people think they have been up to date with all of their repayments – due to errors or inconsistencies on the credit file.

    Phone companies, utility companies and stores can all default consumers for late payments. The consumer may or may not be aware this has occurred (although they should be) and it may or may not be a legitimate listing (but it should be). Yet once that default, or other credit listing is placed on the consumer’s credit file, they are locked out of credit for the term of the listing – between 5 and 7 years – even if they have plenty of equity in their home.

    This can be a valid reason why people can apply to refinance and be declined, despite being able to demonstrate consistent repayments on their current home loan.

    If banks continue to err on the side of caution with their lending criteria – then a clean credit file will remain essential to meeting any risk assessment a bank can put up.

    So how many credit files contain errors? The volume of credit file errors on Australian credit files is uncertain.

    A spokesperson from credit reporting agency, Veda Advantage estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

    But the Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    And the real numbers? They may be somewhere in between.

    Approximately 63% of the incoming clients with MyCRA Credit Rating Repairs have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Listings such as defaults, writs, Judgments and clearouts are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But if the consumer’s financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

    If you need help with credit repair call us on 1300 667 218 or visit our main site: www.mycra.com.au.

    Image: YaiSirichai/ www.FreeDigitalPhotos.net

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • They’re ba-ack again! Fraudsters change tactics on Microsoft virus scam

    If you own a computer – or a telephone for that matter – you may be vulnerable to computer-related scam attempts. The old Microsoft virus scam may have been shut down, but a new one has popped up in its place. We look at the current computer cold call scam warning, what you should do if you are called by these scammers, and what the ramifications of falling for this scam could be for your financial identity and credit file.

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

    Remember the scam going around where fraudsters were claiming to be from Microsoft and were cold calling in Australia to offer “technical support” to remotely assist in clearing viruses off home computers?

    First detected in 2010, the ‘Microsoft Phone Scam’ was clever, and caught out thousands. Callers knew the victim’s name and address. These fake security engineers were claiming to see problems with the victim’s computer and asking whether the victim had noticed their computer becoming slower recently.

    They went on to offer to take over the machine and fix the problems. The scammers were using legitimate remote access software, such as LogMeIn, TeamView and Ammyy.

    Scammers then requested money for this ‘service.’ On top of that, it put the victim’s personal and banking details at risk. It also gave the scammers remote access to their computer, which can potentially lead to infected computers and pilfering of personal information via keyloggers.

    Gizmodo’s recent article ‘Global Operation Sees Infamous ‘Microsoft’ Scammers Finally Taken Down [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”][Updated]’ explained the extent of the success of the scam prior to its takedown:

    Three years on from the first report into the ACMA about the Microsoft scammers, over 10,000 complaints have been recorded. The ACMA says that the worst point came two years ago, when every second complaint to the agency was about the Microsoft scammers. This was in 2011 — a year when scam activity had doubled on the previous period. 52 per cent of the 83,000 scam complaints the ACMA received in 2011 presented as phone scams. All in all, in that 12 months, Australians lost a total of $85.6 million to various scammers.

    Gizmodo reported international efforts from Australia, Canada and the United States brought down U.S. based scammers only a couple of weeks ago. The scammers became the first individuals to be caught in connection with the scam. They’ve had their assets frozen and they are presumably now awaiting a hearing over fraud charges.

    Not to be dismayed, scammers have obviously thought the gig was too lucrative to dismantle yet – and they have changed tactics – hitting those original victims with yet another scam. As if they hadn’t suffered enough!

    On Friday Stay Smart Online issued a warning that computer-related scams were doing the rounds again. It may be important for those who may have been targeted last time.

    “Following international efforts by agencies to close down the infamous ‘Microsoft imposter scam’, reported earlier this month, examples of scammers responding with new approaches have been noted.

    This includes scammers making follow up calls to previous targets of the original scam, offering apologies and refunds in response to the closing down of (fake) support they provided previously.

    Scammers may also claim to be from a foreign government, foreign law enforcement agency or bank, and offer to recover the money you initially lost, in return for a fee,” SSO notes in its warning.

    Your personal information in the wrong hands can lead to identity theft which threatens the health of your credit rating. Fraudsters can duplicate your identity and take out credit in your name – leaving you with debts you didn’t initiate and bad credit from outstanding accounts in your name.

    Think recovery would be easy? Think again!

    Clearing bad credit history is always difficult for individuals to undertake. Most enquiries will result in Creditors telling you that bad credit is there to stay for the term of the listing (usually 5 years). The only thing you can do to change that is to prove there is an inconsistency by demonstrating that the listing was put there unlawfully. An identity theft victim’s task is then to prove that they did not initiate the credit in the first place, but proof is not always easy to obtain – especially when you have no idea of exactly how the fraud occurred. Many people don’t know they are victims until they go to obtain credit and are refused because their credit file is riddled with defaults.

    So what should you do if you get a phone call from one of these guys? SSO gives this advice:

    Suspect: Don’t accept anything at face value. Don’t make a payment over the phone or online without first checking the details.

    Think: Recognise the signs. If you’re being pressured to act, disclose personal details or send money to a stranger, it’s almost certainly a scam. (Microsoft never makes unsolicited phone calls about its products.)

    Report: Act to report the scam. Tell SCAMwatch and help stop scammers in their tracks.

    Ignore: Never respond. Hang up or delete the SMS or email after reporting.

    If you have had your credit file destroyed by identity theft, and need help recovering your good name – contact a professional Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au. Professional credit repair can offer you the best chance of being able to clear bad history from identity theft for good.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • It’s not credit for Christmas, says DnB

    Christmas credit may not be ‘on the cards’ for shoppers this year. Due to concern about financial security in Australia, it is predicted shoppers will continue to tighten their purse strings over the Christmas period, with less predicted to spend money on non-essential items and credit usage predicted to drop, according to credit reporting agency Dun & Bradstreet.

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

    Findings from Dun & Bradstreet’s latest Consumer Credit Expectations Survey, which measures expectations for savings, credit usage, spending and debt performance during the December quarter 2012, show half of Australia’s households are less likely to spend on non-essentials in the coming months.

    The survey showed:

    • One in three (29%) are more inclined to save than they were 12 months ago.
    • 56 per cent of Australians are concerned about their personal financial situation.
    • 37 per cent of households less likely to use a credit card to pay for non-essential items over Christmas compared to the same period last year, while just 16 per cent plan to apply for a new credit product or limit increase.

    Dun & Bradstreet notes that the Reserve Bank’s decision to lower interest rates due to slower economic growth comes as households reduce debt and increase savings as a buffer against economic instability, including the risk of rising unemployment. The bank is now predicting more moderate and sustainable credit growth off the back of this trend in consumer behaviour.

    Dun & Bradstreet General Manager, Danielle Woods, says the conservative consumer outlook could have a significant negative impact on businesses reliant on the Christmas rush.

    “An increasing number of Australians are concerned about their financial security and this is weighing heavily on their plans for the Christmas period,” Ms Woods said.

    “Prioritising saving over non-essential spending is a positive for the balance sheets of Australian households and the Reserve Bank is certainly encouraging this behaviour, in light of uncertain employment conditions. However, it could have detrimental flow on effects for businesses that are looking to Christmas to drive an uplift in sales.”

    However DnB also says, while consumers are planning to avoid non-essential spending and non-essential credit usage during the Christmas period, a significant proportion will need to rely on existing lines of credit to cover the cost of living.

    Forty per cent of 35-49 year olds will use credit to cover expenses they couldn’t otherwise afford, up from 35 per cent during the December quarter 2011. In addition, 60 per cent of this demographic are expressing concern over their financial situation and one in three (35%) would last no longer than one month on their current savings without full-time employment.

    This survey reveals a similar sentiment from Australian Bureau of Statistics figures released in September this year, showing one in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

    “Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned”, it was revealed in news.com.au ‘Aussie strugglers living beyond means’.

    So it seems the trend is continuing that most people are batting down the hatches and reducing their spending in order to pay down debts – but there are sections of the community who are still struggling due to rising costs of living and over-commitment. This seems apparent regardless of income. So for those people, credit for Christmas may be a reality.

    Causes for over-commitment can be a simple inability to manage money – wanting more than they can afford. Or in some cases, over-commitment can be a gradual thing – sometimes caused by expensive credit as a result of bad credit history. There have been reports that possibly as many as 3,000,000 Australians are impacted by bad credit history.

    If someone lands with a bad credit rating, it can completely change their financial situation. The black marks placed there by creditors show up on the credit file for 5 years. Bad credit can limit choices and can perpetuate the debt cycle by leading people to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder.

    If the person with bad credit history wants to try and start again with credit, it may be possible to wipe the slate clean  and remove bad credit history, particularly if it should not be there, or was incorrect in the first place.  If the credit file contains inconsistencies, that person may be a good candidate for credit repair.

    A credit repairer can work with creditors on behalf of the client to identify inconsistencies and negotiate to clear the credit file of those defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. A clear credit rating would give them the financial freedom to use credit whenever they need to at competitive rates.

    For advice about credit repair contact a  Credit Repair Advisor on 1300 667 218 or visit MyCRA Credit Rating Repairs website www.mycra.com.au.

     

  • Has your tax file number been given out to debt collectors?

    If you have a tax bill you haven’t paid – be aware your tax file number may have been given out to debt collectors contracted by the Australian Tax Office. This is despite the recent warnings from the ATO that compromised tax file numbers are leading to identity theft. We look at the story behind this recent revelation and report on the prevalence of tax file number – related identity crime. Identity theft can lead to credit fraud which can leave you in debt and with bad credit history.

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

    The Herald Sun reported yesterday in their story ‘Debt collection agents given tax file numbers’ that the ATO gives out the tax file numbers of consumers whose debt they are referring to debt collection agencies. The numbers are used for identification purposes.

    “THE tax file numbers of Australians are being passed on to contracted third-party debt collection agencies by the Australian Tax Office, despite the ATO claiming compromised tax file numbers are leading to identity theft,” the lead in states.

    This surprising revelation comes after the Herald Sun revealed this month there had been a surge in compromised tax file numbers. See last week’s post ‘Over 23,000 accounts of tax file number identity theft last year.’

    The newspaper published data from the Australian Taxation Office showing over 23,300 Australians had their tax file number compromised in the 2012 financial year. This was up from 22,000 last year.

    Likewise, ATO’s August campaign involved urging consumers to keep their tax file numbers safe to avoid identity theft. They revealed that scams such as fake job ads and bogus ATO emails were leading to compromised tax file numbers and identity theft. Here is an excerpt from their media release ‘Scammers target job seekers’ with comment from Tax Commissioner Michael D’Ascenzo:

    “Personal information can be used by scammers to lodge false tax returns in your name, enable the use of your credit cards or even result in people taking out a loan in your name. In some cases, identity crime can take years to resolve.”

    This year there have been over 6,000 reports from the community about bogus e-mails using the ATO brand, and over 4,000 reports of attempted phone scams.

    At this time of year when many people expect refunds, scammers use the opportunity to pretend to be from the ATO.”
    Only certain people and organisations can ask for your TFN, the most common being:

    • the ATO, when discussing your tax records
    • your employer, but only after you start work
    • your bank or other financial institutions
    • Centrelink, and
    • your superannuation fund.

    It was not mentioned which people and organisations are commonly recipients of Australian tax file numbers.

    ATO response on tax file number referral

    The ATO told the Herald Sun that contractors use the numbers for identification purposes only and said there is no risk because strict security requirements are placed on them.

    Here is an excerpt from the Herald Sun story:

    Four companies are contracted to do debt collection for the ATO and only two responded to queries from the Herald Sun asking about security arrangements or how many staff would have access to public tax file numbers.

    The ATO stated: “The four debt collection agencies we use are subject to strict security and privacy provisions as part of their contract. Any breach could nullify the contract and result in prosecution.

    “No taxpayer information, including tax file numbers, is to be sent overseas.”

    The ATO added that every two years it checked the premises and IT systems of third-party debt collection companies, and the last checks were done between July and October this year with no major risks or breaches identified.

    But the country’s biggest accountancy body has expressed concerns about the use of tax file numbers when not necessary.

    “If the tax office is sharing TFNs with third parties, regardless of the contractual arrangement, then there is a concern and a great risk … that the information is distributed, that the information could be misused somewhere along the line,” CPA Australia head of tax Paul Drum said.

    “In that regard, it seems unusual that the Tax Office would need to provide a TFN when the information provided to the debt collectors includes a claims reference number anyway.”

    Whilst the security checks employed by the ATO seem acceptable, I too question the requirement for sharing of this crucial financial information to outside bodies if not absolutely necessary.

    In this day and age when instances of identity fraud are reportedly on the rise, and becoming more sophisticated by the day; when we are urged by Government, by law enforcement, by banks, even by the ATO to regard our personal information as a valuable commodity – it seems unusual that the policy for sharing this crucial financial information still remains in place.

    Identity crime and your credit file

    Compromised personal information in any form is a big threat to our credit file health.

    If fraudsters get hold of your identity information they can duplicate it, and attempt to take credit out in your name. If successful, they can borrow anything from credit cards, mobile phones, cars, even mortgage properties. They are never so kind as to pay that debt back – so your credit file, your good name is left compromised and you are left with debt you didn’t initiate.

    It can be difficult to correct any credit file discrepancy – but identity crime can be even more difficult to remove from your credit history – because you have to prove – somehow – that you didn’t initiate the credit in the first place. This can involve evidence that you may or may not have. You may not be able to get any documentation, and also the identity theft could have occurred long before you find out about it.

    If you find out any personal information is compromised, or you know you are the victim of identity theft, the best place to go first if the Police.

    Once you are in a position to try to recover your good credit history, a Police report will go a long way to proving your innocence.

    Police may also advise you of other avenues open to you as well as an identity theft victim, such as requesting a Victims of Commonwealth Identity Crime Certificate.

    If you need help recovering your credit file health for whatever reason, contact a Credit Repair Advisor on 1300 667 218 or for more information visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net

  • Mandatory data breach notification finally on the table in Australia

    Should organisations be required by law to make data breach notifications when they occur? The Australian government has finally put this topic to the Australian public following the release of their discussion paper. This is long overdue so that customers who have their personal information unsecured in some way through a company data breach are notified and are able to take swift steps to secure their own records and personal information from identity crime. We look at why these laws are so important and how a data breach can impact a person’s credit file.

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

    Yesterday the Australian Government released a statement to the media seeking views on the introduction of mandatory data breach notification laws, which aims to bolster privacy protections for Australians’ personal information in digital databases.

    Attorney-General Nicola Roxon said that it was timely for a public discussion on how legislation might deal with data breaches, such as when private records are obtained by hackers.

    “Australians who transact online rightfully expect their personal information will be protected,” Ms Roxon said.

    “More personal information about Australians than ever before is held online, and several high profile data breaches have shown that this information can be susceptible to hackers.

    Those high profile data breaches include the Sony data breach in 2011, First State Super scandal in the same year; this year the Zappos data breach and the Telstra data breach to name but a few instances where the personal information of Australians was exposed to hackers. What these incidents did is highlight the gaping hole in Australia’s privacy legislation which needed to be filled to protect consumers.

    Whilst organisations are encouraged to disclose data breaches to the Commonwealth Privacy Commissioner, it has not been mandatory to do so. There has been much criticism over companies “holding out” on their customers following a data breach, and waiting days or up to a week or so to notify customers that their personal information may be at risk.

    During this time, it has been argued that hackers have had free access to this personal information without the customer doing anything to minimise their own risk, such as cancelling accounts, changing passwords and flagging their credit accounts and credit file.

    The Australian Privacy Commissioner, Mr Timothy Pilgrim has had little recourse within legislation to deal with lack of notification following a data breach.

    In his statement to the media, Mr Pilgrim said in 2011–12, the Office of the Australian Information Commissioner (OAIC) received 46 data breach notifications, an 18% decrease from the number of DBNs received in 2010–11.

    ‘This decrease in notifications is difficult to explain but I have seen reports that suggest we are only being notified of a small percentage of data breaches that are occurring. It is very concerning that many of incidents may be going unreported and customers are unaware that their personal information may be compromised,’ Mr Pilgrim said.

    He has officially supported the release of the discussion paper.

    ‘…Privacy breach notification is an important issue that needs community debate, and I’m sure there will be a wide range of views expressed on whether this notification should be mandatory.’ Mr Pilgrim said.

    ‘Currently there is no legal requirement in Australia for organisations to notify individuals when a privacy breach occurs. However, I believe that where personal information has been compromised, notification can be essential in helping individuals to regain control of that information. For example, an individual can take steps to regain control of their identity and personal information by changing passwords or account numbers if they know that a data breach has occurred,’ Mr Pilgrim said.

    We agree this is an area which is overdue for going under the legislative spotlight. We can’t take lightly the possibility that any company that keeps data on its customers could be exposed to data breaches. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters.

    Unfortunately it seems everywhere people turn some company has been hacked – and it seems every entity with a computer is vulnerable. It is still extremely scary the level of risk peoples’ personal information undergoes these days when it is stored online.

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    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. Often victims don’t know about it right away – and that’s where their credit file can be compromised.

    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 for as little as $100 will stop someone from getting a home loan.

    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 removing credit listings which shouldn’t be there can be – even if the individual has been the victim of identity theft. There is no guarantee that the identity theft victim will have the defaults removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence.

    This is where often victims who need to recover their credit rating can benefit from third party assistance, such as a credit repair company, to assist with proving the victim did not intitate the credit, help with a case for removal and negotiate on the victim’s behalf.

    But the best method is prevention – and this can be difficult for victims to have any control over. They leave their personal information with a company, and must trust that their systems are working and that their information is safe.

    The only ways people can ensure their details are safe or dealt with safely are to:

    a) Demand that the companies they deal with are protective over their customers’ personal information. They should demand companies have strong IT systems.

    b) Adopt a need-to-know basis for disclosing their personal information. They should always question the need for their details to be handed over. If it is not essential, they shouldn’t do it; and

    b) Demand our country adopt mandatory data breach notification laws so we can, as Mr Pilgrim describes, have our organisations “embed a culture that values and respects privacy.”

    Image: phanlop88/ www.FreeDigitalPhotos.net

  • Skype users in Australia warned of identity theft threat

    The Stay Smart Online (SSO) Advisory service has issued a warning to Skype users this week about messages circulating the internet voice and video service which contain malware. Known as  ‘Dorkbots’, the malicious software can overtake your computer if you click the link in the message, infecting your computer and opening you up to identity theft. We show you what to look out for, and how you can be at risk of identity theft and other nasties which can impact your life and your credit rating.

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

    SSO Advisory is warning users to be careful about clicking on a link coming from a Skype instant message.

    Skype issued a warning on October 9 via the security section of their website about the ‘Dorkbot’ malware that is currently spreading via Skype.

    Users may receive a message asking ‘lol is this your new profile pic?, along with a link. You are warned not to click this link. This message may come from friends in your Skype contacts lists.

    If the link is clicked, the malware infects your computer. It may also cause your computer to become part of what is known as a ‘botnet’. A botnet is a group of compromised (infected by malware) computers that are used by criminals to carry out attacks on other computer systems.

    Dorkbot variants may also attempt to steal user name and password details for other services you use. Botnets are controlled remotely and can be instructed to perform further malicious acts via the internet.

    Whilst back on October 9 Skype had said a “small number” of Skype users have been targeted, this number may have escalated to greater levels, for SSO to launch an advisory. Security company Trend-Micro’s blog post ‘Skype worm spreading fast’ revealed on October 8 the company had blocked 2500 infected files in the 24 hours since discovery.

    If you are tech savvy, Trend-Micro explains further:

    “These Dorkbot variants will also steal user name and password credentials for a vast array of websites including Facebook, Twitter, Google, PayPal, NetFlix and many others. They can interfere in DNS resolution, insert iFrames into web pages, perform three different kinds of DDoS attack, act as a Proxy server and download and install further malware at the botmaster’s initiation. These are only some of the functionality of this pernicious worm.

    Some infections will subsequently install a ransomware variant locking the user out of their machine, informing them that their files have been encrypted and that they will be subsequently deleted unless the unfortunate victim surrenders a $200 fine within 48 hours.”

    Skype says, as a general word of caution, here are the steps to follow to avoid being scammed:

    1. Keep your Skype up-to date to ensure latest security features.

    2. Keep your PC or device security up to date with the latest anti-virus software

    3. It’s never adviseable to click on suspicious or unusual files and links, even if it’s coming from people you know.

    4. Check heartbeat or community for the latest news if unsure.

    As always, we regularly encourage our users to only download the latest version of Skype from skype.com. This is done to not only to ensure our users are able to take advantage of new features and functionality, but also to make sure you are getting a genuine version of Skype, as we remain committed to providing the best quality and security to our users.

    Back in July we featured a post explaining Malware which you might want to read if you want to know the ins and outs of Malware, titled ‘How Malware can infect your life and put you and your credit file at risk of fraud.’

    Here is an excerpt from that post:

    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.

    So to prevent devastating identity crime, which leaves you in debt and can leave you without any way of obtaining new credit for years to come, make it your business to educate yourself on internet and or computer risks. And think before you click….it could save your financial future.

    For help in recovering your good name following identity theft that has infected your credit file and your life, contact a Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Signs the housing market on the ‘up and up’: August Housing Finance Statistics

    Good news for the housing market this week. It seems the recent interest rate cuts have prompted buyers to return to the market, with home loan approvals recording the highest rate this year, with an increase of 1.8 per cent in August.

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

    Housing Finance Data through from the Australian Bureau of Statistics yesterday shows the number of home loans approved rose to 45,821. That was from an upwardly revised 45,021 in July. Economists had expected housing finance commitments to rise 1.5 per cent in August.

    AUGUST KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    August 2012 compared with July 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Owner occupied housing commitments rose 0.6%, while investment housing commitments fell 0.5%.

     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 0.6%.

     

    NUMBER OF DWELLING COMMITMENTS

    August 2012 compared with July 2012:

     In trend terms, the number of commitments for owner occupied housing finance rose 0.4%.

     In trend terms, the number of commitments for the purchase of new dwellings rose 2.5%, the number of commitments for the construction of dwellings rose 0.9% and the number of commitments for the purchase of established dwellings rose 0.2%.

     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 18.6% in August 2012 from 19.2% in July 2012.

    Here is an excerpt from The Australian’s story titled ‘Home loan approvals up 1.8pc in August amid rate cuts’:

    St George economist Janu Chan said the result supported other recent housing sector data, suggesting that people were beginning to return to the market, particularly owner-occupiers.

    “There is a definite upward trend in owner-occupier housing,” she said. “That’s certainly encouraging for the housing market, and is also in line with the stabilisation in house prices that we’ve seen in many states.

    “There are however, some signs of weakness – investor housing is quite soft, suggesting that investors are still quite cautious about getting back into the market, despite the stabilising house prices.”

    The value of investment-housing loans in August fell 0.8 per cent from July, the ABS said today.

    Over the past five months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

    But JPMorgan economist Tom Kennedy said that the market was yet to see a surge in new housing financing commitments fuelled by the rate cuts in May and June.

    He said the two factors that are not encouraging people to get new home loans was uncertainty over the European economy and its debt crisis and that the commercial banks have not been passing on the RBA rate cuts in full.

    Mr Kennedy said today’s figures are unlikely to affect the RBA’s interest rate outlook and he forecasts one more interest rate cut by the RBA before the end of the year.

    “I think at this stage the RBA is focusing their attention on the labour market,” he said.

    In the meantime, it will still be essential for borrowers to present with a clean credit file to ensure finance approval, particularly if lending criteria continues to be conservative. For those who are living with credit file errors and inconsistencies, there is a solution – to dispute that incorrect listing that haunts their ability to obtain credit.

    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 until such time as they apply for a home loan.

    At that stage, regardless of the accuracy of the information on their credit file, they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    But if a credit listing is unfair, contains errors or shouldn’t be there, then the consumer has the right to request a correction or removal.

    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 – as credit listings are not removed unless they have been unlawfully placed on the credit file.

    Unfortunately many people find this process difficult at best – the mountains of legislation applicable in many cases can be daunting and many don’t have the skills or time to get to know it, and likewise, negotiating with creditors is not always easy for the individual to undertake.

    The other option is to request help contesting a disputable listing with a credit repairer. 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.

    To find out more about how credit repair works, contact a Credit Repair Adviosr at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

     

    Image: Idea go/ www.FreeDigitalPhotos.net

  • Protection essential to combat identity theft in Australia

    Why is protecting yourself against identity theft so important? Because in this day and age, identity theft is no longer an avenue simply for criminals to “skip town” under your name, but has also become a lucrative business for those criminals who are interested in fraud. A seemingly perfect, often anonymous crime with very long arms, identity theft can not only see you losing your money, but also see you lumbered with bad credit history. And often you don’t even know it has occurred until you try to take out credit in your own right and are refused.

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

    The President of the Law Society in South Australia, Ralph Bonig has written an article for Adelaide Now titled ‘In today’s hi-tech world, identity protection is the best option.’  In it, he reflects on recent events involving identity theft, including the new penalties for identity theft, and recent surveys on the scope of the problem here in Australia. He warns that with more electronic transactions comes more opportunities for illegal use of personal data.

    “With the increase in international terrorism, law enforcement agencies have focused their efforts on identifying and combating identity fraud as an adjunct to anti-terrorism measures.

    However, the exchange of personal information through technology has meant that identity theft is no longer just the province of organised criminals and/or terrorists but also now occurs on a smaller, random scale.

    In June this year, the federal Attorney-General’s Department released a report based on a randomised survey on identity theft.

    Of the survey respondents who had been the subject of identity theft, 57 per cent reported that it had occurred via the internet, 35 per cent as a result of a stolen credit card and 18 per cent by mail theft,” he writes.

    He goes on to help readers with a number of ways they may be able to protect themselves, including avoiding public computers; ensuring they have strong passwords which are routinely changed; only providing the minimum amount of personal information that is required during transactions; keeping their mailbox locked; and destroying personal documents.

    What is most interesting is his take on why we should be stepping up protection against identity theft:

    “South Australia, the Criminal Law Consolidation Act contains a number of sections which deal specifically with identity theft.

    It is illegal to assume a false identity for the purposes of committing a criminal offence.

    It is also illegal to use someone else’s personal information in order to commit a criminal offence.

    Creating false identification material and/or trading in it is also illegal.

    There are separate offences relating to the improper use of computers and information obtained via a computer and corresponding federal laws in the Crimes Act.

    What the law does not address and what is extremely difficult to redress is the effect on your credit card rating and the unmeasurable cost of replacing stolen material or re-establishing your bona fides.

    Once again, the best course of action is protection.”

    This difficulty in resurrecting the life you had before, your good name is what we want to warn people about.

    Firstly, you may not know you have been caught out until you attempt to take out credit and are refused. Secondly, when you do find out, you may find recovery extremely hard.

    As with any other unfair or disputable credit listing, the onus is on the credit file holder to prove that the listing has been placed unlawfully, and therefore should be removed. If you are an identity theft victim, you are now faced with proving that it was not you that initiated the credit in the first place, in order to prove to the Credit Providers that the listing is incorrect. This takes lots of negotiating and documentary evidence.

    The difficulty with this can be when

    a) you do not know exactly how the identity theft occurred and/or
    b) it occurred long before you were made aware of it and you have lost crucial documents or
    c) because of either one of these issues you don’t have a Police report

    If you have just found out you are a victim (however small), we recommend you also contact the Police immediately. Some fraudsters do test amounts prior to a large scale transaction.

    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. And besides, most Credit Providers will require at minimum a Police report.

    Many identity theft victims seek the help of a third party, such as a credit rating repairer to help with putting a case to the Credit Provider for removing the credit listing/s. 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 knowledge of legislation and ability to negotiate a successful case on your behalf.

    For more information, contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net