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Slam Scams! Anyone can end up a victim of scams and identity theft

Scams are not just reserved for the elderly or the technologically unsound – although these people can be vulnerable. In reality, scams are so prevalent and can be so sophisticated that anyone can find themselves a victim of a scam. For National Consumer Fraud Week, myself and my team at MyCRA Credit Rating Repairs want to help promote the realisation in the community that scammers are out there every day draining bank accounts and leaving you with a bad credit history for years to come.

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

‘Slam scams’ is the theme for National Consumer Fraud Week 2012 run by the Australian Consumer Fraud Taskforce (ACFT).

Their aim is to educate Australians on the prevalence of scams in everyday life, and the often sophisticated nature of scams.

Here’s an explanation of the Week as featured on the ACCC’s SCAMwatch website:

“Have you ever received a phone call or SMS out of the blue, a phishy email or ‘lucky’ letter, an unknown knock at the door or a strange request from an online friend or admirer? National Consumer Fraud Week 2012 runs from 19 to 25 March and is all about raising awareness of scam delivery methods so that you can identify and slam a scam at the point of contact.

Scammers are increasingly sophisticated in how they deliver scams, taking advantage of new technology and communication methods to try and slip under your radar. Online platforms and mobile technology such as emails, social networking sites, smartphones and tablets make it easier to connect with people around the world and communicate in real time anonymously, privately or publicly. Unfortunately, scammers also take advantage of these benefits to target you.

Scammers are also not afraid to adopt a personal touch such as contacting you at home on your phone or at your door. They will try and push your buttons by playing on your emotions to evoke a sense of guilt, anxiety or fear. They also use slick tricks such as professional-looking websites or documents, and often pose as someone or an organisation that you know and trust.

Scammers will use any means to deliver a scam and get you to part with your money or personal details. If you receive a scam, slam it!

Remember to press delete, throw it out, shut the door or just hang up.

Tips to keep scammers at arms length

DON’T RESPOND
Ignore suspicious emails, letters, house visits, phone calls or SMS – press ‘delete’, throw them out, shut the door or just hang up

WATCH OUT FOR SLICK TRICKS
Scammers use sophisticated tricks to fool you such as fake websites, glossy brochures, technical jargon or posing as someone that you know and trust – don’t fall for them!

DON’T LET SCAMMERS PUSH YOUR BUTTONS
Scammers will play on your emotions to get what they want

PROTECT YOUR IDENTITY
Your personal details are private and invaluable – keep them that way and away from scammers

Fighting fraud: we can all play a part” SCAMwatch says.

The Sydney Morning Herald has this morning featured scams in this article titled $85m lost in business scams last year:

“THE Australian Competition and Consumer Commission received 83,150 reports of scams from small businesses and consumers in 2011, almost double the number the year before and more than quadruple the number in 2009, according to its annual scam report, to be released today.

More than $85 million in losses were reported, up 35 per cent.

Michael Schaper, chairman of the Australian Consumer Fraud Taskforce and deputy chair of the ACCC, said the number of scams was likely to be higher than reported, because many victims were too embarrassed to come forward,” the Sydney Morning Herald reports.

Table from Sydney Morning Herald

Slam scams and stop credit file misuse

People need to stop feeling embarrassed that they have fallen victim to scams, and start coming forward about their experiences. Unfortunately many people who are victims of a scam have also given over lots of personal information in the process. This can lead to identity theft and the scammers taking credit out in the victim’s name.

Embarrassment aside, these victims are stuck unable to take out credit while their credit file shows a series of overdue accounts they had no knowledge of, and are not responsible for. . Not only are scams damaging short term, but the effects can be long-ranging. Victims are unable to take out credit for 5 years while their credit file shows this bad credit history.

The more these victims are ridiculed for somehow being ‘gullible’ the more they will hide away and not speak out about the instances of scams. Also, the impression that these scams are easy to detect will remain in the wider community.

We need everyone to know these scams are not obvious. Scammers are clever and they have plenty of patience.

But if something doesn’t ring true…the best thing people can do is stop the contact, and verify the information of the person before they proceed.

And remember the golden rule, before giving out money or personal information – no matter who it is – people should do all they can to make that transaction as secure as possible.

For scam victims…one of the essential tasks to perform while notifying your bank is to check your credit file is not showing any bad credit history put there by scammers.

If you think you may have been a victim of a scam, talk to us confidentially tollfree on 1300 667 218 or visit the main website www.mycra.com.au about what this could mean for you and your credit file – and how we can help you restore you good name.

Image: David Castillo Dominici / FreeDigitalPhotos.net

19/03/2012
Small business credit hard to obtain

An interesting article featured in Broker News today, for those interested in small business lending criteria, and small business credit files.

It is harder than ever for small businesses to borrow. The story, titled ‘Lenders blasted for small business risk sums’ features Credit Reporting Agency, Dun & Bradstreet criticising lending criteria when it comes to small business.

D & B says up to 400,000 small businesses who should qualify for finance are missing out due to the inability of credit providers to adequately assess and price their risk.

Here is an excerpt from that story:

Dun & Bradstreet has said that up to 400,000 businesses would immediately qualify for finance with a risk profile ranging from minimal to low, out of more than one million unincorporated businesses.

CEO Gareth Jones said lenders have historically been hesitant about extending credit to small businesses as many are unincorporated entities with little or no commercial credit history.

“Previously, it has been nearly impossible to appropriately assess small business risk as small businesses are often indistinguishable from their owner – the commercial and consumer entity are the same,” he said.

“A holistic picture of small business risk can only be obtained by acquiring an understanding of an entity’s commercial and consumer profile,” Jones said.

The comments came as Dun & Bradstreet launched a ‘Small Business Risk Score’ that brings together information from its database on both a commercial enterprise and its owner to enable risk assessments.

The score predicts the likelihood of a small business entering bankruptcy over a 12 month period, based on factors including business to business payments, time since the last consumer default, and the volume of credit enquiries.

The lines between personal and small business credit files do blur quite frequently. Often one credit file affects the other when creditors are looking at suitability for finance.

To give people the best chance at small business credit, they should remove bad credit history like defaults and even excess credit enquiries from either or both credit files prior to applying for small business credit.

It may be that credit file errors and inconsistencies are holding small businesses back from expansion – in which case there is a good chance they can be removed.

For more information on bad credit history, contact MyCRA Credit Rating Repairs tollfree 1300 667 218 or visit the main website www.mycra.com.au.

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

Image: renjith krishnan / FreeDigitalPhotos.net

14/03/2012
Housing finance falls: ABS Statistics reveal drop for January

Despite predictions housing finance would flatten or continue to show rises for January, Australian Bureau (ABS) Housing Figures January 2012 released today show the number of owner occupied home loans approved in January fell 1.2 per cent to 47,768.

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

The falling of housing finance approvals follows a downwardly revised figure of 48,370 in December.

Economists’ forecasts had centred on housing finance commitments to be flat for January.

Here are the ABS’ Housing Finance January 2012 Key Points:

VALUE OF DWELLING COMMITMENTS

January 2012 compared with December 2011:

■The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.6%. Owner occupied housing commitments rose 0.8% and investment housing commitments rose 0.2%.

■In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 2.3%.

NUMBER OF DWELLING COMMITMENTS

January 2012 compared with December 2011:

■In trend terms, the number of commitments for owner occupied housing finance rose 0.8%.

■In trend terms, the number of commitments for the purchase of established dwellings rose 0.9% and the number of commitments for the construction of dwellings rose 0.4%, while the number of commitments for the purchase of new dwellings was flat 0.0%.

■In seasonally adjusted terms, the number of commitments for owner occupied housing finance fell 1.2%.

■In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 20.3% in January 2012 from 20.9% in December 2011.

State by state breakdown

Despite recordings overall showing a fall in numbers, the statistics reveal some Australian states fared better than others:

Number of Owner Occupied Dwellings Financed – State (Tables 5 & 6)

Between December 2011 and January 2012, the number of owner occupied housing commitments (trend) rose in New South Wales (up 275, 1.8%), Queensland (up 141, 1.6%), Western Australia (up 94, 1.5%), Victoria (up 31, 0.3%), the Australian Capital Territory (up 14, 1.7%) and the Northern Territory (up 2, 0.7%), while falls were recorded in South Australia (down 14, 0.4%), and Tasmania (down 1, 0.1%). The seasonally adjusted estimates fell in New South Wales (down 1,003, 6.3%), the Northern Territory (down 29, 8.3%) and the Australian Capital Territory (down 16, 1.8%), while rises were recorded in Western Australia (up 240, 3.8%), Victoria (up 117, 0.9%), South Australia (up 39, 1.3%), Tasmania (up 28, 3.2%) and Queensland (up 3, 0.0%).

Where to turn when lending criteria remains tight

When it comes to new home loans, being credit-savvy is one of the best ways to ensure people can ensure they have access to the best interest rates and or the loan that best suits their needs.

Many do not know that Australians who are living with defaults on their credit file could potentially be hit with a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan due to the restrictions placed on lender availability.

Many of the people that currently have negative listings on their credit file may be living with bad credit history unnecessarily.

To find out how more people can remove their bad credit history – opening doors to lenders that were previously unavailable – contact MyCRA Credit Rating Repairs. Cick on the link to this short video to find out how a professional credit repairer can help you or your clients:

Image: Salvatore Vuono / FreeDigitalPhotos.net

13/03/2012
Australia’s medical records vulnerable to identity theft

Australia’s medical records are proposed to go online, in the form of personally controlled e-health records (PCEHR). But there has been much concern over the security of the personal information which will be available online for potential hackers. We examine what this could mean for your identity and your credit file if your details were hacked.

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

Personally controlled e-health records are currently the subject of a Senate Inquiry, with submissions currently being made into the PCEHR Bills.

A few days ago, computer emergency response team, AusCERT, expressed its grave concern over the introduction of an e-health system. It told the Senate Inquiry that PCEHR will be wide open to hacking.

The Australian covered this in its story ‘PCEHR open to hacking, says AusCert.’ An excerpt is below:

“The current proposal by the Australian government to provide PCEHR over the internet will allow for the exposure of these records to theft and compromise,” AusCERT warned.

“Online criminals have for many years been attacking PCs at work and home to gain access to the systems and data they desire.

“There is no reason to think criminals won’t actively target these computers specifically for the benefits they may provide once the PCEHR system goes live (on July 1).”

AusCERT said fraudsters will be only too keen to harvest “valuable” personal details including full names, dates of birth, current address and Medicare numbers.

AusCERT’s biggest concern, is that the Federal Health Department cannot ensure the security of every computer using the system:

It notes that the federal Health department “is promoting the benefits of PCEHR over the internet on the basis that it will be secure”.

“These statements cannot be assured and are misleading,” it said. “If any end-user computer is already compromised by malicious software, the confidentiality of the PCEHR may be easily compromised…

AusCERT said the department “appears to be focused on the security of the back-end systems” rather than the endpoint systems and software people will use to connect to the system.

“At best this is misleading and at worst it is a misrepresentation of the level of risk,” it said.

“The computer used to connect to the system can be anything from a smartphone, a home PC or laptop, an enterprise PC on a public or private network to a publicly used PC located in an internet kiosk or business lounge.

“Since 2003 these ‘consumer’ devices have been effectively targeted for compromise typically by criminals for the purpose of identity theft and fraud, with the end result being access to personal identifying information and access credentials stored or processed on these devices.

“If the computer has been compromised then it is impossible to protect the confidentiality of information.”

AusCERT put out some alarming statistics from an Australian Communications and Media Authority report from 2010. The ACMA found that some 25,000-30,000 computers are compromised in Australia every day; annually that equates to about 4 million PCs.

“Imagine if each of these computers had at least one user who had used it to access their PCEHR. That represents potentially millions of records compromised by online criminals.”

MyCRA has been watching the unfolding of PCEHR with interest. The security of personal information should be a topic argued over extensively in this way whenever personal information is transferred to any form of online setting, and we are glad to see AusCERT has made these concerns known.

In all instances it is so important for all Australians to be aware that when we are improving the access of personal information, that we are not trading off on the security of that personal information.

There is the danger of possible data breaches from within any company or organisation, and as AusCERT warned, dangers of possible malicious hacking of personal computers – both of which potentially compromise a the personal information and the very identity of those consumers that use that service.

Criminals do target home computers – as the ACMA statistics reveal.

Sometimes fraudsters are lucky enough to gather enough information to resume someone else’s identity. Most times they can then go about taking out credit in the victim’s name, and most identity theft victims don’t even know about it until they attempt to take out credit in their own right and are refused due to a bad credit history they didn’t initiate.

The problems don’t stop there. The identity theft victim can be in a world of pain trying to recover their good name. Bad credit history is not easy for anyone to clear – let alone the identity theft victim, who would be required to produce police reports and other documentation to prove to creditors they are not responsible for the bad credit history.

The Government’s Stay Smart Online website offers some ways you can protect your home computer from being compromised by malicious software, or any kind of identity theft attempt. Here is their secure computing checklist:

1. Use only supported operating systems
Vendors, including Microsoft, stop supporting operating systems that become dated. New versions offer improved security. Third-party vendors, which make application software for these operating systems, also stop support of older versions.

2. Enable automatic updates of your operating system
Automatic updates install small corrections to the operating system. These corrections are known as patches and include security and functionality improvements. When you enable the automatic installation of the fixes, you reduce the chance of exposure to security threats.

3. Enable a limited-rights account for each user and use it for routine online activities such as browsing the web and reading email
It is important to use a limited account for daily tasks as many malware authors depend on users running administrator (or privileged user) default accounts.
Operating as a limited user greatly reduces the effectiveness of many types of malware but this does not mean limited users are protected from malware completely.

4. Install and update security software that provides functionality for antivirus and anti-spyware software and a personal firewall.
These products help prevent computers from infection by malware. Make sure that they are configured to update automatically. Do not install more than one product that duplicates any of these functions. Either install a product that combines these functions, or install separate products for each of these functions. For example, install a combined antivirus and anti-spyware product and a separate firewall product.

5. If using broadband, turn your computer off when not in use.

6. Secure your email software
One method of compromising your computer is via email. If you secure your email software, then you greatly reduce your chances of being compromised.

7. Secure your web browser
Another risk to your computer is during web browsing. If you secure your web browser, you can reduce the chance of your computer being compromised.

8. Do not click on links or open attachments in spam email or email that is otherwise suspicious.

If you, or someone you know has been a victim of identity theft it is important to check your credit file. This will determine whether you have bad credit history as a result of identity fraud. Contact MyCRA Credit Rating Repairs for help with your credit file, and repairing any bad credit history from identity theft.

PH tollfree 1300 667 218 or info@mycra.com.au or visit our website for more information www.mycra.com.au.

Image: Stuart Miles / FreeDigitalPhotos.net

12/03/2012
Credit – friend or foe? 6 tips to make credit work for you

Credit – friend or foe? Yes you should take advantage of credit, and we show you how to do that without blowing out repayments, and preventing a bad credit history.

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

It is no secret that in this day and age many people are struggling with credit.

Currently we are seeing lots of people running into trouble with their credit rating and the trouble sticks for 5 -7 years

You could be forgiven for thinking that credit is the enemy…

But we need to develop the ethos that credit is not something that is granted, it is something that is earnt. At one point banks were practically throwing money at us. Now it’s tough and you have to prove yourself.

There is absolutely nothing wrong with using credit provided you make it work for you.

In fact, if you have wondered ‘credit – friend or foe?’ consider what having no credit history will do for your ability to obtain credit. Not having a credit repayment history in this day and age can be just as difficult as having a bad credit rating when it comes to getting finance – especially a home loan.

Where people come unstuck with credit is getting to a stage where they are forever chasing their tail with repayments, falling behind. Or getting blasé about repayments and not understanding what the consequences can be.

Credit can be useful provided you make it work for YOU.

If you can’t afford it now you can have the privilege of paying for it later – but understand that you will pay at some point. So if you don’t make your payments on time now – your credit file – your ability to take out new credit – will suffer for years to come.

A bit about how a bad credit rating originates…

Payments on any bills which are more than 60 days late can be listed as a ‘default’ on your credit file.

This default can remain on your credit rating for 5 years, and can mean you are refused credit for this time. Even if the account was later paid, the credit reporting agency generally does not remove the default but can mark it as paid.

Even defaults that you have paid still show on your credit report, and are considered bad credit history by most lenders. It is extremely important to keep a clear credit file because the repercussions will be felt for 5 years.

Here are our 6 credit success tips…

1. DO USE CREDIT: Having no credit history means there is nothing to calculate and the risk appears high to lenders. Start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking your credit score. Smaller purchases paid correctly contribute to approval for larger loans such as homes, vehicles and businesses in the future because they show a person’s ability to repay.

2. MAKE REPAYMENTS ON TIME: Repay any bills received by the due date. Repay over the minimum amount required on credit cards. If you are having trouble paying on time, contact the creditor as they may be able to work out a payment plan rather than listing the non- payment as a default.

3. HAVE A STABLE ADDRESS: Lenders like to see stability. Furthermore, defaults are easy to come by when bills are sent to the wrong address. If you do travel frequently, consider a trusted family member’s address for all bills.

4. APPLY FOR CREDIT WITH CARE: You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on a person’s file can hinder their chances of obtaining a loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted but does not stipulate whether it was approved or not. If you go shopping for credit and apply everywhere – it may look like you were declined everywhere.

5. CHECK YOUR CREDIT FILE REGULARLY: You should check your credit file before you need to apply for credit. That way if there are any problems you can sort it out while there is no urgency, and save yourself embarrassment and disappointment from having credit declined. It is free once per year from the credit reporting agencies.

6. DON’T LEAVE DEFAULTS TOO LATE: If there are defaults, don’t put up with them for 5 years – you may be suitable for credit repair. People can check with a credit file repairer if they can be removed.

What about credit repair…

Begin by obtaining a credit report – which you are entitled to do for free every 12 months via the major credit reporting agencies Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service.

If you find a default, writ or Judgment on your credit file which you believe is there unfairly, unjustly or just shouldn’t be there at all – it may be possible to have it removed.

Credit repair is a difficult process. Time and again people are disheartened from trying to deal with creditors themselves to have the default, writ or judgment removed from their file. Most are told that default listings never get removed but can be marked as paid.

Unfortunately, this is not enough to ensure credit is obtained in this current economic market. So basically those black marks mean you are stuck with a bad credit rating for 5-7 years, unable to borrow for homes, cars, businesses and take out simple accounts like mobile phone plans.

Then the key is to establish a good track record on your credit file, using the above 6 credit success tips.

Good luck!

If you need help with repairing your bad credit history, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

Image: Stuart Miles / FreeDigitalPhotos.net

07/03/2012
Are 177,000 CHILDREN capable of staying safe on Facebook?

Parents…are your children on Facebook? We look at what this could mean for them, for you and for your credit file.

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

An alarming statistic was revealed by a leading West Australian newspaper on Sunday on the possible number of WA children on Facebook who were under 13.

The Sunday Times revealed in its article “Facebook offers up 150,000 West Australian kids” Perth Now, March 3, 2012 that the Facebook advertising database claims it can reach more than 170,000 children in WA under the age of 13.

“Facebook allows users access to its database statistics if they’re planning to advertise on their website.

It says advertisers wanting to target young teens in WA could reach an estimated 177,220 users aged 13 or under.

Facebook doesn’t let users sign up unless they claim to be over 13. But users often give away their true age by listing information such as the primary school they attend,” the article says.

This is a global issue. A U.S. Facebook study released in June last year, showed that of the 20 million children on Facebook who actively used the social networking site 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.

“Among young users, more than 5 million were 10 and under, and their accounts were largely unsupervised by their parents,” the report revealed.

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

So what’s happening with our kids? Are they all accessing Facebook in secret? Or are we simply letting them do it – despite government and even Facebook advice to the contrary?

Apart from the grave dangers of sexual predators and cyber-bullies for our children – we are become more vulnerable to identity theft and being slapped with a bad credit score as a result.

Identity crime is the fastest growing crime in Australia, according to the Australian Crime Commission. It was reported by former Attorney General Robert McLelland’s office last year, that identity theft affects one in six Australians in some way.

It’s time to all get a better understanding of the internet. Those who don’t apply meaningful cyber-security measures at home are putting themselves at risk of identity theft, and simply threatening the family’s good credit rating.

We cannot let our young children have free reign of the computer, regardless of how ‘tech-savvy’ they are.

Here’s what can happen to anyone, let alone children:

We can download viruses, participate in scams, release credit card details and disclose personal information and passwords to criminals which can be used to extract money or take out credit in people’s names.

This can happen through Facebook, it can happen via email, and it can happen via very legitimate looking websites.

If millions of Australian parents have been fooled, what chance do these 177,000 children under 13 have? That’s what the cyber-crooks are banking on.

Don’t know the first thing about the internet? If your child does – you need to get to know about it!

The amount of personal information that many young people have freely available for viewing on Facebook is frightening. That can be information about them, or it can also be about friends and family.

We may say it is harmless, but what’s to say fraudsters can’t sit on that information and wait until their victims come of age to commit fraud in their name? In fact, authorities say it is happening – they even have a name, it’s called ‘data warehousing’.

Superintendant Brian Hay from the Queensland Fraud Squad told Channel 7’s Sunrise Program in October last year, that criminals were targeting the personal information of our young Facebook users. and storing the personal information until they turn 18.

“We know that the crooks have been data warehousing identity information, we know that they’ve been building search engines to profile and build identities,” he told Sunrise.

Most identity theft victims have no idea they have given away personal information to fraudsters until it is too late. If identity fraud sees accounts in the victim’s name going undetected and unpaid past 60 days, the parent’s credit file can be ruined for 5-7 years due to defaults.

It need not be major fraud to be a massive blow to the identity theft victim – leading to a bad credit score. Unpaid accounts for as little as $100 can lead to a bad credit score and have the same impact on getting a loan. So any misuse of someone’s credit file can be extremely significant.

For parents who want to educate themselves about the risks of cyber-crime, the Government has put together the CyberSmart website, encouraging parents and kids to be aware of the dangers the internet may pose for children. A Cyber Smart fact-sheet for this age group recommends the close monitoring of all children’s internet use.

And importantly, if young people of any age are on Facebook, educate them and yourself about what that could mean for them and for you.

If people suspect identity theft has affected their credit file, they can contact MyCRA Credit Rating Repairs www.mycra.com.au or call tollfree on 1300 667 218 for help restoring their good name and clearing their bad credit score following identity theft.

Image: Clare Bloomfield / FreeDigitalPhotos.net

Image: Ambro/ FreeDigitalPhotos.net

06/03/2012
How healthy is your credit rating?

Your credit rating is just like your health. You can get regular check- ups and maintain it, or you can wait until something goes wrong before you get it fixed. Knowing what’s on your credit file is the key to your financial freedom. Maintaining that credit file health will ensure you are able to continue to enjoy the benefits of obtaining credit now and for years to come.

Graham Doessel, founder and CEO of national credit repair firm MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au addresses some common questions about your credit file.

WHAT is my credit rating?

Your credit rating is really a file on your credit history, and is collated by the major credit reporting agencies on anyone who has ever been credit-active.

Your credit file is then checked by any credit provider and is used to assess both the amount you are able to borrow and your ability to repay the loan.

How do I find out what’s on my credit file?

There are four major credit reporting agencies in Australia: Veda Advantage – which holds the credit file of over 14 million Australians, Dun and Bradstreet, Experian Australia and Tasmanian Collection Service (TASCOL) if in Tasmania.

By law you are entitled to write to or email one of these agencies and request a copy of your credit file for free. It will take 10 working days from application to receive this information, or for a fee it can be provided within 3 working days.

What is defined as a ‘bad’ credit rating?

In broad terms, any defaults, clear outs, court Judgments or writs, external administrations and bankruptcies are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.

In this current economic climate basic defaults and even too many credit enquiries or applications for credit may be considered to be bad credit history.

How do I get a bad credit rating?

What is not realised by many people is how easy it is to have a default slapped on your credit file – which will show up as bad credit history. If a bill is more than 60 days late, (including rates, power and mobile phone bills) then a credit provider has the right to notify you of their intentions to record this default on your credit file. Even if this bill is paid, the default usually remains on your record for 5 years.

What are the repercussions of having a bad credit rating?

A bad credit file can severely hamper your chances of obtaining any credit. Your credit health can determine whether you can take out credit cards, personal loans, car loans, enter into mobile phone plans, and of course take out a mortgage.

What can I do to fix my credit rating?

After checking your credit file, there are three things to consider:

1. The accuracy of the report. If there are errors, however small, you have the right to have them rectified. Likewise, if there are numerous strange defaults and or applications for credit that we don’t recognise – contact Police immediately in case of identity theft.

2. Check you were informed of any intention to list.

3. Check the fairness of the listing.

If your file does contain defaults, writs or judgments that you believe are incorrect, unjust or just shouldn’t be there, there is a good chance they can be removed.

You can work with your own credit file to have the defaults removed, or you can contact a third party ‘professional credit repairer’ to help you.

How can a professional credit rating repairer fix my credit rating?

If people find inconsistencies on their credit report, in the past they have run into difficulty trying to get the offending black marks removed.

Listings are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there. Many individuals find it extremely difficult to apply the letter of the law in their own circumstances and so end up seeking someone out a professional credit repairer, who can work on their behalf.

Credit repair requires knowledge of the legislation, lots of evidence, tenacity and perseverance – which a good quality professional credit repairer will have.

Professional credit repairers have also built successful relationships with agencies and creditors alike, and have a better ability to negotiate the listing’s removal on the client’s behalf.

What can I do to ensure I maintain credit file health?

1. Pay all accounts on time. This is the easiest way to ensure there are no adverse listings on your credit file. If you are struggling to make repayments – contact the creditor about a repayment scheme.

2. Regularly obtain a copy of your credit file – once a year is recommended to ensure accuracy.

3. Be aware of excessive credit enquiries. If you are not sure about your credit health, you should get it checked before applying for new credit. Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year. Also avoid ‘shopping around’ for credit, as whether or not the loan was approved doesn’t show up on your credit report – only the fact that you made the enquiry.

If you are seeking advice on credit file health from a professional credit repairer, contact MyCRA Credit Rating Repairs on www.mycra.com.au or tollfree 1300 667 218.

Image: Imagerymajestic/ FreeDigitalPhotos.net

02/03/2012
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

08/12/2011