MyCRA Specialist Credit Repair Lawyers

Tag: Identity Theft

  • Mixed messages about protecting personal information

    Don’t give away your personal information to anyone – especially to strangers who come knocking at your door.  Seems like the golden rule to live by nowadays to avoid identity theft and scams…unless the person knocking is from the Australian Bureau of Statistics.

    The government has been very busy telling people to be careful with their personal information. With identity theft now the fastest growing crime in Australia it is no wonder. The Government’s SCAMWatch website continually warns the public about scammers who are trying to steal their personal and financial information by masquerading as a variety of people at their door.

    Here is a list of some of the ways SCAMwatch says people have been caught out by door to door scams:

    Home maintenance scams: scammers try to sell home maintenance services, like roofing or gardening services, and then bill people for additional work they did not agree to.

    Charity scams: These scams play on people’s generosity and involve a scammer posing as a genuine charity in order to fraudulently collect money.

    ATO scams: Australian Taxation Office—door-to-door scam. People claiming to be consultants from the ATO ask people to sign up to a fictional government program promising financial incentives, including a reduction in taxes. In return for signing up, scammers ask people for personal information such as credit card information or banking details.

    Survey scams: Sometimes scammers pretend to conduct a survey so they can get personal details or to intitally disguise their sales pitch.

    Digital television scams: door-to-door salespeople offering to sell people conversion equipment and falsely claiming to represent the government.

    People can not only stand to lose out financially, but if they have given over crucial personal information to the door-knocker, and they turn out to be a crook, that can also lead to identity theft. The victim could possibly have fraudsters not only drain their bank accounts, but take out credit in their name. The road to recovery is long and arduous as it can be difficult for people to prove they didn’t take the credit out themselves.

    It may have surprised many to then read a report in The Australian titled ‘Pushing the Limits of Privacy’ on Monday about a couple who felt pressured to give over their personal information to Australian Bureau of Statistics officers.

    The couple were randomly selected to participate in an extensive survey where they were required to provide financial and personal information to the ABS for their Survey of Income and Housing 2011-12.

    The couple felt “uncomfortable” doing this for a couple of reasons. According to the story, they had just returned from a long overseas trip and had no time to view any previous material the ABS had sent them by mail. The couple were simply greeted fresh by someone at the door “demanding” they book in an interview with an officer to give over their personal information and provide documentary evidence to boot.

    The couple had been victims of credit card skimming while overseas.

    “Interpol had warned them to be especially careful about giving anyone any financial information at all because their experience raised their risk of identity theft,” the story says.

    So they were quite “uneasy”. They sat at an interview in their home, answering important questions like date of birth, place of birth, citizenship status – all normal questions for the ABS to ask, but also normal questions for fraudsters looking to extract identity information from their victim.

    So why were the couple forced to give over their personal information if they felt uncomfortable about it?

    The story explains that in general, ABS collation is compulsory. Failure to comply can result in fines of $110 a day, at the discretion of the magistrate who will hear the case once the person has been charged.

    There are exemptions on offer, and the couple may have been able to apply for one, but it appears in the story they were not given an option to apply for an exemption.

    ABS spokesman Rod Smith expressed disappointment at the couple’s experience. “If it happened exactly as you’re suggesting, that’s not how we train our people to behave in public,” he says.

    The Australian Bureau of Statistics is by law allowed to regularly compel a random section of the population to be involved in more extensive surveys in which they are personally interviewed by ABS representatives, and their information is then used for more in-depth surveys.

    This makes sense – the ABS surveys are a great snapshot of the population. They are necessary for understanding the people who inhabit this country.

    The Personal Fraud Survey 2007 alone has helped us to understand so much more of how identity theft and fraud has affected Australians in reality.

    But in this day and age the prospect of a stranger coming into our home for an interview where we give over our personal information can sound quite confronting to some. Many mistrust those that show up at the door claiming to be from one company or another. Those that let people in – well we often read about them in the news as the country’s latest scam victim.

    To be compelled to participate may be too much for some people –as it was for this couple who had just had a brush with credit card skimmers. Other groups of people may also have a problem with this type of interview:

    “The very fact that someone can come in to a private home to ask these questions may upset those who are particularly sensitive: refugees from totalitarian regimes, for example, or from countries where rule of law and due process are unknown; people, especially the elderly or the physically vulnerable, who live alone; even people, introverts for example, who have never been traumatised but simply have a more highly developed sense than most of the divide between personal and public,” the story says.

    This brings to light the issue that possibly in this day and age, the selected people for this in-depth type of survey need to be well informed by the ABS of their right to seek exemption from participation in the survey despite its compulsory nature. In this way, they will feel less pressure to give over something which has turned into a valuable commodity – their personal information.

    If people are unsure of what to do if someone comes to their door, SCAMWatch has this advice:

    Protect yourself from door-to-door & home maintenance scams

    If someone comes to your door, ask to see their identification. You do not have to let them in, and they must leave if you ask them to.

    Check that the trader is registered on the Australian Government’s business.gov.au website.

    Do not agree to offers or deals straight away: tell the person that you are not interested or that you want to get some advice before making a decision.

    If you are interested in what a door-to-door salesperson has to offer, take the time to find out about their business and their offer.

    Carry out a web search on the business to see if there are other consumers who have commented on the quality of their work – many scams can be identified this way.

    ALWAYS get independent advice if an offer involves significant money, time or commitment.

    Read all the terms and conditions of any offer very carefully: claims of free or very cheap offers often have hidden costs.

    Always check that goods or services were both ordered and delivered before paying an invoice.

    Contact your local office of fair trading if you are unsure about an offer or trader.

    For help with repairing a credit rating following identity theft, contact our main website www.mycra.com.au or phone 1300 667 218.

    Image: nuttakit / 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

  • The Christmas credit risks you need to know about

    5 Reasons why the Christmas season is the time you are most at risk of damaging your credit rating

    As credit repairers, our busiest period is in the first few months after Christmas. Clients come to us desperate for help to remove the negative listings from their credit files that are causing them to be refused home loans, car loans, personal loans and even mobile phone plans. At this time it is heads down and tails up for our team as we plough through the many cases we receive.

    Before this time, we thought we’d review why the post-Christmas credit crunch may occur, and hopefully help some of you stay out of trouble.

    Here are 5 Christmas hazards you should be aware of:

    1. Identity theft.

    With identity theft growing in severity and volume to now be the fastest growing crime in Australia, the perfect time for fraud could be the Christmas period. Scammers are out in full force and people can be lax with their personal information – never an ideal combination. Many news outlets report of fraudsters ramping up tactics – accessing people’s bank accounts and using personal information to steal identities and ruin good credit ratings.

    The Government website SCAMwatch has released the 12 scams of Christmas – a report on what consumers should watch out for. A few of the prominent scams for 2011 include:

    Holiday scams. Consumers are warned to look out for fake accommodation vouchers, scam travel clubs and scammers asking you to pay upfront deposits for properties which aren’t actually available for rent.
    Flight scams. Scammers set up fake websites which look genuine and make you believe you are purchasing an authentic flight ticket. When you arrive at the airport you may find your booking was a fake.
    Charity scams. At Christmas many legitimate charities appeal for donations of money, food, clothing and children’s gifts. Unfortunately scammers also try to get your money by camouflaging themselves as genuine charities.
    Online shopping. Beware, scammers post fake classified ads, auction listings, and run bogus websites. If you get caught by a scammer you will not only lose your money but will also never receive the item you were trying to purchase!

    If fraudsters are able to access your personal details in full to commit identity theft – they have basically the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you go to apply for credit in your own right and are refused that you realise your credit file has been misused.  With adverse listings difficult for the individual to remove, and with defaults remaining on your credit file for 5 years your life is basically set to be turned upside down without the help of a credit repairer.

    2. Overlooking bill payments.

    There is no doubt the lead up to Christmas is busy. Work is incredibly fast-paced, kids have prizegivings, graduations, Christmas parties and holidays, the Christmas shopping needs to get finished, Christmas food needs to be bought, and holidays need to be booked and planned. The fallout from all of this stress can be the little $180 phone bill that gets shoved in a drawer to think about at a later date, or you can even forget to transfer money for the mortgage payment.

    Then you go away for a few weeks in January to unwind trying to put Christmas, work, and stress behind you while you dip your toes in the water and sip your margarita.

    When you get back, there may be a notice in the mail saying the phone company or the bank has listed your account as unpaid and put a default listing on your credit file. Or it may not be until you apply for credit again that you find out about the bill – but by then it is much too late.

    60 days is all it takes to have an unpaid account listed as a default on your credit file.

    Before you get into the Christmas rush, nominate a place for all of your bills and make a point of actioning them all as soon as you can. Don’t let the New Year go by without clearing your debts – especially if you are going on holiday for a significant period.

    3. Moving and transfers.

    Moving house is a very common reason people have bills and even default notices go undetected which can lead to a bad credit rating. As Christmas and New Year is a very common time for transfers and other work changes to occur that could see you moving interstate it is very important to tie up all loose ends in your current address.

    At least two weeks prior to your move, notify all creditors of your change of address and when that will occur and get confirmation of the receipt of your new address in writing or via email from them. When cancelling utility and phone accounts, give those creditors the date of your move and request to settle the account on that date. Ask for confirmation that the account has been settled sent to you via email or to your new address. Make a diary note to chase this up if it has not been sent within a week of your move.

    The number one rule for moving is get all changes confirmed in writing. Otherwise accounts may not be completely settled, and the creditors may not have your new address to send you any outstanding debts, resulting in a bad credit rating which you would only find out about when you are going for credit in a separate instance.

    4. Over committing and spiralling into debt.

    It may be a simple rule, but one which can be difficult to apply when you get caught up in the “Christmas spirit” – 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 cannot 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.

    Savings guide Australia offers some tips this season on ways to have a great Christmas without blowing the budget. Our best advice is actually to have a budget and stick to it. Reducing spending on each person by even 20% will make a massive difference at the end of your shopping. You should also write a shopping list and stick to it, minimising the likelihood of impulse buying.

    Remember it’s the thought that counts!

    5. Overlooking errors and omissions from Creditors.

    This is the silly season – and everyone is busy and preoccupied. The volume of transactions may increase while staff decrease, putting stress on Creditors’ systems. For this reason it is crucial to keep an eye on your own finances.

    Check your bank statements (it could even help with Christmas budgeting), check your bills as they come in and make sure everything is as it should be. Know which bills are due and when. If you don’t receive a bill for whatever reason, chase it up. The Creditor will more than likely still have a record of the bill – it may have been lost in the mail or sent to the wrong person. But in the end you are the one who will pay for their oversight.

    This is also a good time to request a free copy of your credit file from one or more of the credit reporting agencies if you haven’t already this year. You will receive a copy of your credit report within 10 working days. You should check that all of your details are correct. Check there are no adverse listings on your credit file which could prevent you from accessing credit in the future. If there are negative listings – defaults, writs or Judgments which you believe contain errors, are unfair or just shouldn’t be there, you have the right to have these entries rectified.

    Make your life easier and ensure you get the best chance of getting the listing/s removed by instilling the help of a credit repairer. Visit MyCRA Credit Repairs for more information on how credit repair works, or call tollfree on 1300 667 218.

    Image: Stuart Miles/ FreeDigitalPhotos.net

    1. Image: Chris Sharp / FreeDigitalPhotos.net 3. Image: Digitalart / FreeDigitalPhotos.net 4. Image: worradmu / FreeDigitalPhotos.net 5. Image: nuttakit / FreeDigitalPhotos.net

  • Bill to fight global cybercrime coming in New Year

    The war on global cybercrime and identity theft continues…

    The Government’s Cybercrime Legislation Amendment Bill 2011 is set to be passed through the Senate in the New Year, according to reports from The Australian Newspaper ‘Australia to join global anti-cybercrime fight’ today.

    Attorney-General Robert McClelland told a Council of Europe meeting yesterday in France that the Government’s Cybercrime Bill will have the “endorsement of Parliament in the new year,”

    “For our part, there is no doubt that once Australia has taken the necessary steps to provide for accession to the Convention on Cybercrime, we will be better placed to take on the challenge globally,” he said in a keynote address.

    “Our domestic laws will criminalise more nefarious cyber activity and give our crime fighters the right modern tools.

    “Information required to prosecute cyber criminals will be protected from destruction whilst law enforcement agencies seek warrants for its access,” he says.

    Back in June we blogged about this Bill, ‘Government brings in new laws in war against cyber-crime and identity theft’ following the Government’s signing of the cybercrime treaty in May, and as it made swift changes to some of Australia’s laws to allow the Bill to be passed and implemented with ease. The changes were seen as a necessary response to the growing threat of cybercrime and the global nature of the crime.

    Australia will be joining the Council of Europe Convention on Cybercrime, of which more than 40 nations have already signed or become a party to the Convention, including the USA, UK, Canada, Japan and South Africa.

    The Convention allows countries to co-operate in investigations to deal with international crimes committed on computer networks, such as online fraud.

    The Bill will also give Australian police greater powers to force internet service providers to retain data of customers who are suspected to have committed a cybercrime while the matter is being investigated.

    The convention has been criticised by some such as Kapersky Lab’s CEO Eugene Kapersky, who says if non-European, non-English speaking countries will not “join the club” there will be failure.

    “Do you think it’s real that if a government computer in Russia is infected, that they will let the US in? Or that the White House will let Russia in? And then China or Latin America? Forget about it,” Kaspersky told SC Magazine.
    “It hasn’t worked in 10 years.”

    Instead, Mr Kaspersky advocates the need for an “internet Interpol” to manage international crime investigations and liaise with national police forces.

    Currently there appears to be great difficulty in investigating and prosecuting international cybercrime rings –especially in respect to online fraud cases. Much of the internet-generated identity theft is not initiated on Australian shores. The worldwide web provides easy international access, meaning elaborate schemes intended to commit identity fraud can be generated from any country and impact ordinary Australians.

    In fact, current advice about overseas scams on the government’s SCAMWatch website is almost a disclaimer for failure to prosecute perpetrators of overseas scams:

    “due to the ‘fly by night’ nature of many scammers, it is extremely difficult to track them down and take action against them. Though it depends on the circumstances of each case, the ACCC may not be able to take action or enforce Australian Court orders against the many scammers that are based outside of Australia.” the SCAMWatch website explains.

    Anything which increases the likelihood of accountability for identity theft and fraud as it relates to the global market should be seen as a positive step, as would the implementation of some of Kapersky’s ideas.

    One thing which is certain is we can never rest on our laurels. Constant monitoring and improvement needs to continue and be pushed for to keep up with the vast array of changes technology and the crime that ultimately follows it.

    For more information on identity theft related to credit files, contact MyCRA Credit Repairs tollfree on 1300 776 218 or visit the main website www.mycra.com.au.

    Image: digitalart/ FreeDigitalPhotos.net

  • The identity theft victim’s guide to recovery

    Have you been locked out of your Facebook account? Fallen for a request to give over personal details to a fraudster? Or had that horrible sinking feeling when you realise someone has been taking money out of your bank accounts? Or perhaps as was recently the case in W.A., you may have had a property sold from underneath you while overseas?

    These are all forms of identity theft in varying degrees. Someone steals your personal information in order to set up a fake identity for the purposes of using your good name, your financial identity, and possibly your credit rating for their own purposes.

    You are not alone, and you should not be too embarrassed to take action against this crime, however sheepish you may feel. It is an ever-growing problem – the fastest growing crime in Australia. A recent survey commissioned by the Attorney-General’s office shows 1 in 6 people in this country currently have been victims of identity theft, or know someone who has had their identity misused.

    Some instances of identity theft are relatively easy to recover from, others are a major source of heartache and disruption to people’s lives.

    The Attorney-General has produced an Identity Theft booklet which includes the steps you need to take as soon as you discover you may be an identity theft victim:

    •Immediately inform the police. All incidents of identity theft should be reported to your local police even if only small sums are involved. Ask for a copy of the police report—most banks or other financial institutions will ask you for a copy.

    •Close all unauthorised accounts. Contact the credit providers and businesses with whom any unauthorised accounts have been opened in your name. Remember this includes phone and other utility providers, department stores and financial institutions. Inform them that you have been a victim of identity theft and ask them to close the fraudulent accounts.

    •Alert your bank or financial institution. Contact your bank or financial institution immediately and cancel all cards and accounts that may have been breached. Ask for new cards and accounts with new Personal  Numbers (PINs).

    •Get a copy of your credit report. Inform the credit reporting agencies that you are a victim of identity theft. Ask that an alert be placed on your file that advises this. This should stop additional fraudulent accounts being opened in your name.

    •Review your credit report carefully. Ensure you can authenticate all ‘inquiries’ made into your credit history. Contact all companies and organisations that have made inquiries under your name that you did not authorise.

    •Keep all documentation. Take notes that include dates, names, contact details and what was said during your contact with those agencies. Follow up all conversations and requests in writing, and send these by certified mail if you need to post them. Keep copies of all forms and correspondence.

    •Report loss or theft of documents to the relevant government or private sector agencies. Contact the relevant government and private sector agencies if you have lost specific documents or items, or had them stolen.

    •Contact the Office of the Privacy Commissioner if you feel your privacy has been breached. If you feel that your privacy has been breached because of identity theft, or an agency or organisation is being difficult about rectifying privacy matters, then you can contact the Office of the Privacy Commissioner. Their Enquiries Line is available to help you work out if a privacy breach may have occurred. However, it is important that if you intend to lodge a complaint, that you first try and resolve matters with the agency or organisation concerned.

    Government-assisted Recovery

    Recovery from identity theft can be assisted in some instances if you are eligible to apply for a Victims of Commonwealth Identity Crime Certificate. Generally Police will advise you if the crime against you falls under this jurisdiction. It can improve the chances of recover greatly by having this certificate to provide to Government agencies, and financial institutions in which a Commonwealth indictable offence was committed against you.

    The Attorney General’s website says a Commonwealth identity crime occurs where a person makes, supplies or uses identification information (yours, or a third party’s). They do this intending that either they or someone else will pretend to be you or another person (who is living, dead, real or fictitious), and the act of pretending would be done to commit or help commit a Commonwealth indictable offence.

    But the instances in which an actual Commonwealth indictable offence is committed may be less common.

    Examples of victims of Commonwealth identity crime are:

    ■your birth certificate was used by someone else to falsely claim a payment from Centrelink in your name
    ■a person pretended to be you by using your identification details to have your Medicare rebates redirected to their bank account
    ■a person used your credit card without your permission to purchase and import illegal substances
    ■a person established a false business in your name to fraudulently claim GST, and
    ■a person used your passport or citizenship details to pass themselves off as you and travel overseas.

    The common identity theft victim who has had their personal details stolen and fraudsters have taken out credit cards in their name, it seems would not be eligible for the Commonwealth Victims of Crime certificate.

    For other very common type of identity theft through scams that were initiated outside Australia where victims have provided personal details and money – the Government’s SCAMwatch website warns victims recovery and restitution may also be difficult for victims:

    “due to the ‘fly by night’ nature of many scammers, it is extremely difficult to track them down and take action against them. Though it depends on the circumstances of each case, the ACCC may not be able to take action or enforce Australian Court orders against the many scammers that are based outside of
    Australia.” the SCAMWatch website explains.

    Identity theft and credit ratings

    If your bank accounts have been skimmed, the bank may have insurance to cover your loss due to this fraud. But if your credit rating has been damaged, and there are defaults, writs and Judgments on your credit file that should not be there, recovery can be a complicated matter. Basically your credit reports show you as owing debts and you are considered unsuitable to lend money to.

    Some identity theft victims find they hit a wall when attempting to recover their credit rating as the laws which govern credit reporting and the listing of negative data on people’s credit files are difficult for them to navigate. Victims say it is up to them to prove the case of identity theft, to prove to creditors they did not initiate the credit and some say this is confusing and frustrating for them.

    Instilling the services of a credit repairer may be helpful to your case, as the credit rating recovery can be enhanced by having a person better skilled at dealing with creditors and with complete knowledge of relevant laws and regulations which would apply to your circumstances.

    The way lending works in Australia, one default makes it just as difficult to get credit as does 3. So even if people can strike a helpful creditor in one or two instances, they may be unsuccessful in removing all negative listings by themselves. Each default remains on a person’s credit file for 5 years, so if you want the best chance of getting a home loan, a car loan or even credit cards and mobile phones over the next 5 years, it could be best to leave it to the professionals.

    For more help with clearing a credit rating following identity theft, contact MyCRA Credit Repairs Tollfree 1300 667 218 or visit our main website www.mycra.com.au.

    Image: graur razvan ionut/FreeDigitalPhotos.net

  • Top 25 worst internet passwords 2011 – is yours on the list?

    Here is the list you need to read – the top 25 worst internet passwords for 2011. That’s the 25 most frequently used passwords which are most commonly successful in gaining entry into other people’s internet accounts.

    If you would like to prevent identity theft and credit file misuse, scan this list, and if your password is on it, please invent a stronger one.

    ‘Splashdata’, a Californian company which sells security services and password software has created these rankings based on millions of stolen passwords posted online by hackers.

    1. password
    2. 123456
    3.12345678
    4. qwerty
    5. abc123
    6. monkey
    7. 1234567
    8. letmein
    9. trustno1
    10. dragon
    11. baseball
    12. 111111
    13. iloveyou
    14. master
    15. sunshine
    16. ashley
    17. bailey
    18. passw0rd
    19. shadow
    20. 123123
    21. 654321
    22. superman
    23. qazwsx
    24. michael
    25. football

    The Brisbane Times reported today SplashData CEO Morgan Slain urges businesses and consumers using any password on the list to change them immediately.

    “Hackers can easily break into many accounts just by repeatedly trying common passwords,” Slain says. “Even though people are encouraged to select secure, strong passwords, many people continue to choose weak, easy-to-guess ones, placing themselves at risk from fraud and identity theft,” he says.

    There are a number of ways hacking internet passwords can be lucrative for identity thieves beyond simply gaining access to bank accounts:

    1. Scammers who hack in to your Facebook or Twitter accounts can send messages to your friends pretending to be you, and ask for money from them. Recently a Gold Coast woman had her Facebook and Hotmail accounts hacked, and her friends were continually asked for money in her name. She is still attempting to recover her accounts.

    2. Fraudsters can also be after personal information from your online accounts, with the view to setting up fake identities. The personal information posted in Facebook could be enough to request replacement copies of identification, and then take out credit in your name, which can easily lead to a damaged credit rating, often without your knowledge.

    3. Passwords for one account may be the same passwords used for other accounts and services. What would happen if the fraudster could gain access to your ebay account or your gmail?

    4. Gaining access to a person’s personal hotmal or gmail account could certainly give the hackers enough information over time to commit identity fraud or at the very least a chance to send fake emails to contacts in your address book.

    5. Weak staff passwords can put businesses at risk of fraud and also credit file misuse.

    The Government’s Stay Smart Online website says attacks using stolen passwords occur more than people realise.

    “A password on your computer is like a lock on your front door—it prevents strangers walking into your house and stealing your possessions,” the website says.

    Stay Smart Online’s Top tips for passwords:

    • Set strong passwords, particularly for important online accounts and change them regularly—consider making a diary entry to remind yourself.
    • Never share your password with anyone. A password is meant to be a secret known only to you.
    • Memorise your password if you can. To make a password easy to remember, think of a phrase and then change some of the characters to make it a strong password. If you need to write it down in order to remember it, hide it somewhere safe.
    • Use different passwords for different accounts—otherwise if one is compromised it may give an attacker access to your other online accounts. For example, use a password for online banking that is different to the ones you would use for email or social networking.
    • Don’t save passwords for important accounts in your web browser—otherwise anyone using your computer could access these accounts.
    • Be careful using your password on a public internet terminal (such as an airport or internet cafe).
    • Never send your password via email or store your passwords in plain text on your computer.

    If you suspect your password has been stolen, you may be extremely vulnerable to identity theft. You should contact Police immediately, even if nothing appears to have been tampered with yet. You should also get a copy of your credit file and check for any suspicious new enquiries or changes in contact details. If there seems to be any discrepancies notify creditors straight away to prevent fraudsters ruining your credit rating. If there are defaults or other negative listings on your account that you didn’t initiate, you would find it helpful to use a credit repairer to help recover your good name. Contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • Can official Australian documents be forged to commit identity fraud?

    It is estimated identity theft costs Australia $1 billion per year.* When identity theft damages the victim’s credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information from the victim to forge new identity documents. This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money from the victim without them realising it straight away.

    If credit accounts are not repaid – after 60 days the credit file holder is issued with written notification of non-payment and the intention for the creditor to list a default on the person’s credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft. But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    Over the past year there have been reports in Western Australia of an elaborate property scam, in which overseas-based owners had their homes sold from under them by identity thieves. One property had been sold and settled months before the owner had any knowledge.

    “It is clear it was a sophisticated outfit that scammed the owner, the real estate agent, the settlement agent, the banks, and more importantly and critically, the Department of Land Administration (DOLA),” Real Estate Institute of Western Australia (REIWA) spokesperson Brian Greig told ZD Net when the story broke in September 2010.

    For identity theft victims who have had their credit rating affected, loss of money is just the beginning of their trouble. They lose the ability to borrow money. Dreams can be put on hold. Families and businesses can be put under immense stress. They can’t even get a mobile phone plan – and they are looking at a 5 year term for a default.

    Recovery is difficult. It is up to the identity theft victim to prove to creditors they did not initiate the credit in the first place. The victim is required to produce Police reports, bank statements and other documentation to prove their case. Their whole life is turned upside down in a desperate attempt to recover their good name. They often need professional help from a credit rating repairer as well as Police and Courts.

    The production and verification of key identification documents in Australia plays a crucial role in ensuring better security for individuals against this type of identity crime.

    Clearly the Government agrees there is a great need for a strong, unified identification system, but have they been effective in making this happen?

    In 2005 the Attorney-General’s department began plans to launch a Documentation Verification Service (DVS) as part of its National Identification Security Strategy (NISS). The DVS is intended to provide an electronic validation platform that allows authorised government agencies to cross-check identity documents to identify their clients and prevent identity theft or fraud.

    “It helps protect people’s identity and their privacy by allowing documents commonly used as evidence of identity to be checked electronically, quickly and directly by the document’s issuing authority,” Attorney-General Robert McClelland said recently in a media release.

    “Through the DVS it is possible to verify the validity of Australian-issued passports, visas, as well as birth, marriage and change-of-name certificates and driver licenses from States and Territories.”

    But the road to implementation of this system has been neither cheap (costing $25 million by 2010), or easy, with many reports of agencies failing to implement the system.

    Technology and security publication, CSO criticised the slow take-up of the service in its article ‘Australia crawls towards its answer to identity fraud’.

    The story features the Australian National Audit Office’s report on the program’s implementation. The Report slammed the program’s sluggish roll out last April, noting that the “rarely used” system was unlikely to strengthen Australia’s personal identification process in the near future.

    It says the main problem was that many of the identity issuer and user agencies, such as Centrelink, the Department of Immigration, and state road authorities and birth and death registries, were not connected to DVS. Verification using the system also took longer than 20 seconds in a quarter of transactions, eroding its promised efficiency gains and convenience.

    This week the Attorney-General’s department announced 200,000 documents had been verified using the system. It says with the full commitment of state and territory governments now in place the value of the system is being demonstrated, with a number of Commonwealth and state agencies using it for processes that require identity verification.

    It is not clear on the volume of agencies who have committed to adopting the DVS as part of their client registration process. The AG says there are a “wide range” of agencies, which include revenue, superannuation, electoral, land title and service delivery agencies.

    Australians are facing an ever increasing number of threats against their identity. According to an identity theft survey commissioned by the Attorney-General himself, 1 in 6 people in Australia have been or know someone who has had their identity misused in some way in the past 6 months.

    With this knowledge, it would seem all agencies should be implored to take up this service or perhaps we should look again at why some agencies are failing to use it. Surely a streamlined approach to document verification is essential protection for Australians.

    One thing is certain, if identity theft really is the emerging crime with the magnitude and scope that is reported, people need to know the fundamentals that make up their identity – their passports, their licences and their birth certificates are bullet-proof from attack.

    * OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37

    Contact MyCRA Credit Repairs for further help with identity theft, or to repair a credit rating on 1300 667 218.

    Image: Photostock/ FreeDigitalPhotos.net

  • Thousands of Christmas flights won’t be honoured

    Media Release
    4th November 2011

    Australian travellers may be left stranded at the airport holding bogus airline tickets at Christmas time after suffering at the hands of scammers.

    A government agency has warned Australians about cheap flight deals through fake travel websites which have travellers believing they have purchased legitimate airline tickets, but all they have done is been skimmed of their money and left vulnerable to identity theft.

    With a current warning issued by the Australian Competition and Consumer Commission’s SCAMwatch website (www.scamwatch.gov.au ) for flight booking scams, a national credit repairer, MyCRA’s, Graham Doessel says people could find it is more than just Christmas that is ruined.

    “It’s all bad for these poor scam victims. At best they can be left with no holiday – but at worst fraudsters can take their personal details and use them to construct a fake identity which would allow them to borrow in their name – the ramifications of that can last for years,” Mr Doessel says.

    SCAMwatch says it has received a number of reports of fraudulent traders who have copied the ABN and look of legitimate travel websites.

    “Some victims have lost in excess of $1000 for fake international flight bookings, while others report instances of identity theft after interactions with the fake trader,” the SCAMwatch website warns.

    Currently the Australian Crime Commission sites identity theft as the fastest growing crime in Australia, and a recent study presented by the Attorney-General’s office revealed 1 in 6 people have had their identity stolen or misused in some way.

    Identity theft occurs when criminals use a person’s personal details, usually to obtain credit in their name. The benefits can be lucrative, gaining access to large amounts of credit – enough even to mortgage a property in the victim’s name. It is often not until the victim goes to apply for credit in their own right and are refused because of credit rating defaults they didn’t initiate, that they realise they have had their credit file misused.

    “Unfortunately identity theft can turn the victim’s life upside down. Adverse listings can be difficult to have removed, simply because it is up to the victim to prove to creditors they didn’t initiate the credit,” Mr Doessel says.

    MyCRA advises people to take these precautions when booking travel:

    – Be wary of any offer that comes via an unsolicited email.

    – For legitimate-looking websites, check the URL is correct for that company. If it looks suspicious – it may be a fake. Do the research on the airline or travel agency’s own website or contact the company directly to verify details in the offer.

    – Never make the purchase through a link in an email.

    – Take five minutes extra to research the company that is offering the deal to ensure they are genuine.

    – If the flight seems too cheap – it may be a fake.

    – For people who think they may have fallen prey to a scam, they should  contact Police, and if they think their personal details may have been compromised – obtain a copy of their credit file.

    Australians are able to obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies.

    “If someone suspects fraud, their credit file could show changes, which if detected early, would prevent their good name from being ruined. If there are any unusual credit enquiries, or some attempt to alter personal contact details this should be a red flag. People should alert creditors to prevent their credit rating from being ruined and protect their ability to obtain credit in the future,” he says.

    For more information on identity theft, people can visit the MyCRA Credit Repairs website www.mycra.com.au.

    /ENDS.

    Lisa Brewster – Media Relations   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.

    Image: Free DigitalPhotos.net

  • 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

  • Let me count the ways…identity theft news

    This week the media has reported on a number of major instances of identity theft which all confirm the fact that as the Australian Crime Commission (ACCC) reports, identity theft is the “fastest growing crime in the country”.

    The National Identity Fraud Awareness Week, running this week from 17-23 October has thrust identity theft issues in Australia right into the spotlight.
    It almost looks like there has been a ‘storm’ of identity theft – with warnings and recorded cases in most major news over the past few days.

    The press coverage of major identity theft news in this country is interesting. It brings to light the possibility that this news could happen on any given week, and that because of the NIFAW, these instances have been given extra attention by the press. This should cement for Australians the emergence of a very real crime with often dire consequences.

    Identity theft can not only impact a person’s finances, but also their ability to borrow in the future. By extracting personal details and using those to take out credit in their victim’s name, fraudsters can take a person’s good credit rating and basically destroy it.

    A significant amount of a person’s ability to borrow in the future rests on their credit file, which is the file the credit reporting agencies keep on each person who is credit active in this country. If a potential borrower has any adverse listings showing up on their credit file, lenders will generally refuse credit. The catch is…adverse listings remain on credit files for 5-7 years depending on the type of listing. So an identity theft victim can have that crime impact them for a significant time following the event if their name has been used to obtain credit in fraudulent circumstances.

    And recovery is not as simple as calling creditors and explaining what has happened. Under Australian credit reporting law, often the victim requires a great deal of documentary evidence, including Police reports to prove they did not initiate the credit.

    So identity fraud awareness should continue every day, with more focus from Governments, Police, Companies’ and most importantly, consumers on ways to stay protected from identity crime.

    The ACCC’s website has a great host of information on identity crime, which includes a list of preventative tips, which people should print out, talk about and put into practice in their lives.

    Here are some of those media reports which we found significant:

    Credit card fraud

    Raids in Sydney’s Ashbury and Haymarket yesterday uncovered a substantial identity crime operation. Police found 12,000 fake credit cards, with a face value of $30m, a number of blank NSW driver’s licences, computer files and equipment allegedly used in the manufacture of fraudulent documents.
    The Daily Telegraph reported in its story ‘Fake credit cards worth $30m seized along with drugs and cash’ that each card had a credit limit of $2500.

    Amongst the seizures were $20,000 in cash, 90 grams of amphetamines, drug paraphernalia and designer clothing and jewellery valued at about $100,000.
    The operation was carried out by the Identity Security Strike Teams (ISST)  – made up of  Australian Federal Police, NSW Police Force, Roads and Traffic Authority and the Department of Immigration and Citizenship.
    The teams investigate serious and complex identity security matters forming a collaborative network among law enforcement agencies to effectively deal with this crime.

    Bank account fraud

    The Sydney Morning Herald reported this morning on a fraud scandal involving two major Australian banks. The story ‘Citibank left with
    $500,000 fraud bill after impostor scam    ’ details the findings of a NSW Supreme Court judgment from an incident in which Citibank and National Australia Bank and their customers were caught up in a circumstance of fraud.

    In November 2010, Citibank’s Sydney branch received a fax from what appeared to be a Citibank client instructing the transfer of US$500,000 from his multi-currency at call account, to a NAB account jointly held in his name.

    Using the SWIFT international clearing house system of international funds transfers, Citibank transferred the money to the NAB account. A few days later, NAB’s World Square branch received faxes of three international telegraphic transfer application forms, each ostensibly signed by the same client.
    The first form, dated in October, requested a transfer of $15,000 to an HSBC Hong Kong account.

    The second and third forms, dated November, both requested $225,000 transfers to HSBC Hong Kong accounts.

    The Herald reports the NAB assistant branch manager checked the signature on the forms against the client’s signature on its verification system, and as there were sufficient funds, transferred the sums.
    However, the faxed instructions to both banks were false.
    The client and the joint signatory on the NAB account had sued the banks, and had since settled and had their money returned.

    Judy Hitchen, a spokeswoman for Citibank said the customers were ”the unfortunate victims of a sophisticated identity theft”.
    ”The court noted that there was no allegation of negligent conduct or failure by the banks to meet relevant banking standards. In fact, through verification and control systems in place at the time, we were able to constrain the losses by detecting and preventing a subsequent attack on the customers’ account,” she said.

    The case is being investigated by Australian and overseas police.

    Dumpster diving to steal personal information

    Today Tonight also hit identity theft this week, with a story on what is known as ‘dumpster diving’. The story titled ‘Identity theft alert’ featured cyber-fraud hunter from SOPHOS, Rob Forsyth. He revealed that dumpster diving – where crooks go through people’s rubbish bins looking for personal information – is a ‘nightly epidemic’.

    “They [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”][fraudsters] 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,” Forsyth said.

    Today Tonight revealed that two in five Australians put old bank statements and other key personal papers into recycling.

    Identity fraudsters will return over weeks, compiling piece by piece, until the jigsaw is complete, and then selling that abroad – dumped bank statements, credit card offers, phone bills, which already bear the person’s name and address.

    “That waste paper is worth millions to the right people,” Crime Stoppers Australia CEO Peter Price said.
    Recycling robbery is now his number one target in a national identity fraud awareness campaign being launched next Monday.
    “In some instance there’s a black market where people actually bid for this information, almost like an on-line auction, and they’ll start using that information to buy stuff almost immediately,” Price explained.

    Once the information is stolen, your identity is shipped around the world in seconds, and that’s when the cyber hunters come in.

    Identity theft and cyber fraud cost Australia $8.5 billion every year. One in five Australians will be hit, more than four million people, and it’s getting worse every day.

     

    Data breach threat prevented

    Australian Super account fraud has been a growing phenomenon in Australia, with Police announcing official warnings in June for Super account holders to take care of their accounts and look for any changes that may point to identity theft.

    It was revealed on Tuesday that an Australian Super Fund’s computer system was exposing its members to a possible data breach.

    The Sydney Morning Herald reported in its story ‘Super bad: First State set police on man who showed them how 770,000 accounts could be ripped off’ about an account holder (who happened to be a security consultant) of Superannuation fund First State, stumbling upon a major flaw in the company’s data base. The error allowed the account holder to download the account information of First State customers.

    “…the details revealed on the statements were a fraudster’s dream, including full names, addresses, email addresses, membership number, age, insurance information, superannuation amount, fund allocations, beneficiaries and employer information.

    Nigel Phair, a former cyber cop turned cyber crime consultant, said the information obtained could be used to take over customer accounts. “Since superannuation is a set and forget saving mechanism, account holders may only suspect an account takeover when they receive their annual statement (assuming they read it in detail),” he said.

    First State Super, which sent a letter to some members on October 7 informing them of the breach, has over 770,000 members and over $30 billion in funds under management. A large portion of its members are NSW public sector employees and their spouses, including police, politicians and magistrates.

    Thanks to the good work of the account holder, the data breach threat was fixed immediately, but Phair says had this exploit been discovered by someone with malicious intent then the outcome would have been significantly more serious.

    A recent global survey reveals widespread concern over data breaches and the security of personal information. A survey conducted online by Harris for US-based identity management specialist SailPoint, showed the majority of adults in the United States, Great Britain and Australia are worried about possible exposure of their personal information, and a large percentage of adults have lost confidence in how companies protect their personal information.
    For people who need help with credit repair following identity theft, or for extra information on credit files and identity theft, call MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: thanunkorn: FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • National Identity Fraud Awareness Week: Keeping your credit file safe from fraud

    Identity theft and fraud is again on the agenda for Australians. This week is National Identity Fraud Awareness Week (NIFAW) – which runs from 17 to 23 October.

    To tie in with this week, the Australian Federal Police have today gone live with an Identity Fraud survey on their website, aimed at empowering people to protect themselves from the serious consequences of identity crime.

    We encourage everyone to take this survey. Currently the statistics on identity theft may be skewed due to a lack of reporting of the crime. Sometimes this is due to embarrassment, and other times it is because people believe the financial loss is minimal. Unfortunately, that may paint a less scary picture of identity fraud than should be the case.

    The Herald Sun in its article,’If you think you’re identity is safe, think again’ reported NIFAW spokesperson, Peter Campbell as saying it was worrying that most Australians underestimated the prevalence of identity fraud in this country.

    “A total of 52 per cent of those surveyed estimated that less than 100,000 Australian were victims,” he said.

    “However, this latest survey shows the true figure to be 2.6 million – a very significant difference. Mr Campbell says these victims all lost over $1000.

    “We all need to be aware of the risks and take responsibility for our personal information to prevent becoming a victim.”

    An important point coming from these statistics, is the impression amongst Australians that identity fraud is not serious, or doesn’t really have the potential to ruin someone’s life. Even at low amounts, fraud can have significance beyond the minimal monetary loss.

    When identity fraud is initiated due to criminals having access to a person’s personal details and new credit is issued in the person’s name – often the victim is unaware of non-payments until they have defaults attributed to them on their credit file. Many people don’t pick up on it until they attempt to take out credit in their own right and are refused because they have these adverse listings they have no knowledge of.

    The difficulty in this instance is in investigating the origin of the fraud, and convincing creditors the credit file holder has been the victim of identity fraud. This generally requires lots of documentary evidence that may or may not be available, and Police reports.

    Not only can people potentially lose money through identity fraud, they can also lose their ability to obtain credit in the future.

    Defaults through late payments, once listed by creditors remain there for 5 years if the victim is unable to convince them the fraud occurred and have the adverse listing/s removed. People can’t even get a mobile phone plan when they have defaults, let alone personal loans or mortgages.

    The other nightmare that can come about when fraudsters’ gain access to their victim’s credit file, is the potential that they can generate significant amounts of credit debt in the victim’s name. Some victims have had large amounts of credit taken out in their name, white goods and cars purchased, even in some cases properties mortgaged and sold in their names.

    The AFP urges people to take a stronger stance on personal protection from identity fraud, as the circumstances in which fraud occurs are not always simple.

    “Identity fraud is an emerging threat to Australia and is growing rapidly.  Be aware that identity fraudsters are specialists at manipulating their victims, including their trust, friendliness, loneliness, fears, concerns or financial situation”, Commander Chris McDevitt from the AFP says.

    The AFP hosts multi-agency Identity Security Strike Teams (ISST’s) in Sydney, Brisbane and Melbourne.  The teams work closely with state law enforcement partners, financial institutions and government agencies to address the issue of identity theft for financial gain.

    Whilst banks have fraud insurance to help reimburse identity fraud victims, Australians should be aware there is no ‘reimbursement’ for future monies lost due to identity fraud affecting a person’s credit file 5 years. A bad credit rating can severely financially disadvantage individuals. People are unable to obtain credit through normal channels while defaults are present on their credit file. Often they are forced into finance at higher interest rates which can cost them tens of thousands over the term of the default.

    Our message at MyCRA Credit Repairs is: please take steps to protect your credit rating from fraud!

    Educate yourself – visit the government sites like SCAMwatch, Stay Smart Online, and the Attorney-General’s website. If people are interested in keeping up to date with what could be occurring – say in cyber-circles they can visit technology sites like ZD Net Australia or even subscribe to MyCRA’s RSS Feed for updates on security issues affecting credit files.

    Know what’s on your credit file – grab a free copy of your credit file today from one or more of Australia’s credit reporting agencies, Veda Advantage, Dun & Bradstreet, and TASCOL in Tasmania which will be mailed to you within 10 days.

    Your credit report is free every 12 months – take advantage of this by ordering a copy every year. Make sure there are no defaults currently attached to your file. If they shouldn’t be there or there are errors – you may be eligible for credit repair.

    If you feel vulnerable to fraud, for a fee Veda offers an ‘alert’ service, which informs you of ANY changes to your credit file such as a change of contact details or a credit enquiry, which would point to you being a victim of identity theft – possibly BEFORE there are harmful defaults put against your name.

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

    Image: Chris Sharp / 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

  • Big arrest in NY reveals inner workings of identity theft ring

    In New York this weekend, huge arrests have been made, unravelling an identity theft ring involving counterparts in China, Europe and the Middle East. 111 people were arrested and more than 85 are in custody.

    The Herald Sun reported on Saturday that five separate criminal rings operating out of Queens, New York have been dismantled:

    They were hit with hundreds of charges, said Queens District Attorney Richard Brown, calling it the largest fraud case he’d ever seen in his two decades in office.

    “These weren’t holdups at gunpoint, but the impact on victims was the same,” Police Commissioner Raymond Kelly said. “They were robbed.”
    The enterprise had been operating since at least 2010 and included at least one bank and restaurants, mostly in Queens.

    Authorities say the graft operated like this: At least three bank workers, retail employees and restaurant workers would steal credit card numbers in a process known as skimming, in which workers take information from when a card is swiped for payment and illegally sell the credit card numbers. Different members of the criminal enterprise would steal card information online.

    The numbers were then given to teams of manufacturers, who would forge cards from Visa, MasterCard, Discover and American Express. Realistic identifications were made with the stolen data.

    The plastic would be given to teams of criminal “shoppers” for spending sprees at higher-end stores, including Apple, Bloomingdale’s and Macy’s. The groups would then resell the merchandise oversees to locations in China, Europe and the Middle East.

    All told, more than $US13 million ($13.4 million) was spent on iPads, iPhones, computers, watches and fancy handbags from Gucci and Louis Vuitton, authorities said.

    The suspects also charged pricey hotel rooms and rented private jets and fancy cars, prosecutors said.
    Detectives with language skills spent hours translating Russian, Farsi and Arabic during the investigation, Mr Kelly said…

    And, Mr Kelly said, criminals are getting more sophisticated. “Thieves have an amazing knowledge of how to use technology,” he said.

    “The schemes and the imagination that is developing these days are days are really mind-boggling.”

    Could this be happening in Australia?

    The cold hard facts are – yes! The ‘beauty’ of identity crime – and why it’s so lucrative, is because criminals can be part of a worldwide network – they are no longer reliant on simply their own knowledge and skills.

    So skimmers can then on-sell credit cards and details on ‘carder’ sites which are then purchased by other criminals, often in other countries. Or as was the case in the NY ring – skimmers can be working out of one country but the network’s origins can be spread across the world.

    This makes the criminals so much harder to catch and that much more powerful.

    In the Australian Crime Commission’s Crime profile series on Credit Card Fraud, they say that card fraud has grown rapidly in the past decade:

    “…counterfeiting or skimming of credit cards cost Australians more than $45 million,” the ACCC says.

    The Australian Crime Commission gives a list as to some of the ways criminals have misused credit cards in Australia:

    How Card Fraudsters Work…

    Card skimming—the criminal copies information from the card’s magnetic strip from which counterfeit copies can be made. Common scenarios for skimming are restaurants or bars where the skimmer has possession of the victim’s credit card out of their immediate view. Skimming may also occur where criminals put a device over the card slot of an ATM which then reads the magnetic strip as the user unknowingly passes their card through it. These devices are often used in conjunction with a pinhole camera to read the user’s Personal Identification Number (PIN) at the same time. Criminals may also tamper with EFTPOS terminals in order to gather card information.

    Buying credit card information—in 2009, credit card information was the most commonly sold item in the underground economy, accounting for 19 per cent of the items for sale. Stolen card data can be sold for as low as US 85c per card when bought in bulk. Criminals may couple this information with details harvested from social networking sites to commit frauds.

    Counterfeit cards—criminals gain details of a current valid cardholder, usually from the internet. They then emboss blank white plastic cards with stolen numbers and the magnetic stripe on the card is encoded with matching numbers and the signature panel on the card installed. Identifying logos and colour printing are then added to mimic a real card.

    Fraudulent use of debit card PINs—cardholders may disclose their PINs unwittingly or through coercion or through methods such as skimming. Stolen cards and PINs may be used to make unauthorised cash withdrawals.

    Card theft—criminals steal cards and make purchases by forging the cardholder’s signature, or alter the encoded details on the card or even transfer those details to a counterfeit card or to several cards.

    Application fraud—criminals obtain the personal details of a real person (such as from utility bills or bank statements stolen from post boxes, or through social networking sites), and use this information to acquire credit cards in that name. The offender then uses the cards to buy goods or services. Alternatively, a criminal uses false identification details to obtain a legitimate card in a false name. Legitimate cards will then be issued to an individual who will later default on paying monies owed and abscond.

    Account takeover—criminals gather information on an intended victim (using the same techniques described above), then contact that person’s card issuer masquerading as the genuine cardholder and asking for mail to be redirected to a new address. The criminal then reports the card lost and asks for a replacement to be sent.

    Internal or employee fraud—unauthorised transactions on business credit cards perpetrated by a criminal who has deliberately infiltrated an organisation, or an employee who has criminal motivations.

    Hacking—criminals may hack into databases of account numbers which are held by internet service providers or other businesses that hold customer information, or by intercepting account details which travel in unencrypted form. Or, they may interfere with bank computers in order for sums in excess of account credit balances to be withdrawn.

    Online scams—customers who make use of false credit card details or merchants who fail to honour online agreements.

    Phishing—sending an email to a user that makes false claims in an attempt to trick them into revealing credit card information so money can be obtained from accounts.

    Stored value card fraud—card readers are being programed to deduct greater value from the card than that authorised by the user, or sales staff could intentionally deduct greater sums than they are authorised to deduct. Sums which are rounded off to the nearest five cents could then be skimmed to the terminal owner’s advantage.

    Carding—a process criminals use to verify the validity of stolen card data. To do this, criminals will present the card information they have obtained to buy something small on a website that has real-time transaction processes. If the card is processed successfully, the thief knows the card is still good.

    In many of these scams, it is not only the victim’s finances which are being stolen – it is also their ability to obtain credit. When scammers gain access to a victim’s credit file, they are able to take out loans in the victim’s name. Once these unpaid loans are defaulted on – creditors will place a default listing/s on the victim’s credit file, which remains on their file for 5 years.

    So not only do they lose money, but their chances of getting loans, mortgages, even mobile phone plans are destroyed for 5 years if they are victims of identity theft in this way.

    And, unlike a bank – which often has insurance to cover unauthorised transactions, there is no safety net for identity theft victims in the Australian credit reporting system. The victim often has a difficult time having these adverse listings removed – and needs to provide lots of documentary evidence to prove they did not initiate the credit, to negotiate with creditors to have the offending entries removed.

    So how do people protect themselves against becoming victims of credit card fraud?

    There needs to be a psychic shift in much of the Western world about the way people think about credit cards – they need to be as secure if not securer than money, as they can be more of a danger to people’s financial security if misused than cash.

    Here are some ways people can protect themselves against identity theft from credit card fraud:

    – Always check the ATM or EFTPOS terminal for any suspicious boxes that could be skimming devices. If in doubt – don’t use it.
    – Always cover their PIN when using terminals.
    – Never let anyone walk out of sight with their credit card
    – Always check their card statements and report any unauthorised transactions – however small – to the bank immediately.
    – Regularly keep up to date with what is on their credit file. People can check their credit file by obtaining a written report for free every 12 months – 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.

    If people need help with credit repair following identity theft from credit card fraud, they can contact a credit rating repairer, such as MyCRA Credit Repairs, who can help restore their ability to obtain credit. Call them tollfree 1300 667 218.

    Image: worradmu / FreeDigitalPhotos.net