MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Repairs

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

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

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

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

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

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

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

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

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

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

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

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

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

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

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

    Often it is not until people apply for a home loan that they learn they have a bad credit rating, but by then it is too late and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation. Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake.

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

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

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

  • Don’t throw away your identity on rubbish day

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

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

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

    Here’s how it happens…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    -Buy a safe for personal documents at home

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

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

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

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

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

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

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

    Image: Grant Cochrane / FreeDigitalPhotos.net

  • 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 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

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

    Media Release
    29 September 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    /ENDS.

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

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

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

    Image: Sura Nualpradid/ FreeDigitalPhotos.net

     

     

  • Till debt do us part: Navigating joint finances

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

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

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

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

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

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

    Some of those include:

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

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

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

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

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

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

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

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

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

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

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

  • Fears about data breaches are justified

    Media Release
    22 September 2011

    Australians have every right to be concerned about data breaches and loss of personal details, as personal information has become a valuable commodity used to commit identity fraud and potentially ruin the victim’s financial future, a national credit repairer says.

    Director of MyCRA Credit Repairs, Graham Doessel says a recent survey revealing concerns about data breaches shows we are all worried about where our personal information could be put at risk, and this is not without reason.

    “More and more of my clients have been through the ringer attempting to have black marks removed from their credit file due to identity theft, simply because our education, our legislation and our technology is unable to keep up with fraudsters. People want to know their details are going to be safe when they shop, when they use the internet and with the companies that have their details in their computer systems,” Mr Doessel says.

    This comes as a global survey reveals widespread concern over 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.

    “The widespread impact of data breaches like Epsilon and Sony PlayStation, where millions of consumers were impacted around the world, is making customers more cautious about conducting business with certain financial institutions and retailers,” said Jackie Gilbert, vice president of marketing and co-founder at SailPoint.

    Mr Doessel says personal information is like gold to identity thieves.

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

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

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

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

    “What is not widely known is how difficult credit repair following can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence” he says.

    Mr Doessel says the best defence an individual can take against identity theft is to get educated on how their personal information can be put at risk.

    “Sites like the Government’s SCAMwatch website, and the Stay smart online website, can give people good practical tips for keeping their information secure,” he says.

    But he also says in the case of data breaches, it comes down to a need to know basis.

    “At best we can minimise the amount of people who hold our personal information. People should always question the need for it to be handed over. If it is not essential, don’t do it.”

    “Unfortunately it seems everywhere we turn some company has been hacked – and it seems every entity with a computer is vulnerable. It is still extremely scary the level of risk our personal information undergoes these days when it is stored online,” he says.

    He says it is important for people to keep up to date with what is on their credit file, to be alerted to any entries which point to a theft of identity.

    Under current legislation a credit file report can be obtained for free every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet , Tasmanian Collection Service and Experian and is sent to the owner of the credit file within 10 working days.

    For those who are vulnerable to identity theft, they can pay extra with credit reporting agency, Veda Advantage to have their file on an ‘alert’ system, which tracks any changes to their credit file that may occur within a 12 month period.

    Mr Doessel says people who suspect identity theft should report the matter immediately to Police, no matter how insignificant they think the fraud is.

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

    Link: SailPoint Survey

    Image: renjith krishnan/ FreeDigitalPhotos.net

  • Being credit file savvy can save you money

    Media Release
    19 September 2011

    Concerned Australians focusing on saving and reducing debt in the wake of the GFC, are overlooking how maintaining a clear credit file can be a simple way of making significant household savings, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says people eager to save are busy reducing debt and going without life’s luxuries, but in the process are overlooking a key way they can save themselves thousands.

    “A clear credit file allows consumers to shop for the best credit at the lowest interest rate. For instance, on a $400,000 home loan, those with a bad credit rating are potentially slugged around $550 extra per month in interest when comparing a non-conforming loan with a loan at a current standard variable rate,” Mr Doessel says.

    He says if people have a bad credit rating, it sticks for 5 to 7 years, and they are most times shut out of credit with the major banks for this period.

    “Unfortunately those people with a bad credit rating will generally be refused credit by mainstream lenders and funnelled into higher interest rate loans and cards which only seem to perpetuate the debt cycle for the very people who would benefit from saving money,” Mr Doessel says.

    Current information from the Australian Bureau of Statistics on household savings show for the first time since 2003, household savings have dramatically increased. The ABS revealed in March 2011 the saving ratio rose to 10.1% in seasonally adjusted terms in the September quarter 2010.

    Mr Doessel says many of his credit repair clients are in a better financial position than they have been in years for loan qualification, but are held back from taking advantage of competitive interest rates and stable house prices by black marks on their credit rating.

    “Many clients have everything in place for obtaining loans, until they apply for credit with a lender and are knocked back due to credit rating defaults they were previously unaware of – and often those defaults should not be there,” he says.

    He says the best way people can prevent this scenario is to get familiar with their credit file and the ways their good name can be compromised. He provides 6 tips for being credit file savvy:

    1. Make repayments on time. Any bills which are more than 60 days in arrears can be listed by the creditor as defaults on a person’s credit file. This includes home loans all the way through to phone and power bills.

    2. Dispute bills correctly. Many people find themselves with a bad credit rating following bill disputs with creditors such as phone and power companies. Many people are unaware that regardless of whether the bill has been disputed by the customer, if it is more than 60 days late the creditor will generally still list the non-payment as a default on the customer’s credit rating – whether the customer believes the amount is accurate or not. To avoid a bad credit rating when disputing bills, people should pay the bill by the due date and attempt to recover the money from the credit provider afterwards.

    3. Ensure the accuracy of your credit file. All credit active individuals are entitled to a free yearly credit file check from all the credit reporting agencies that may hold a file on them. People should take advantage of this, and ensure there are no errors on their credit file. Mistakes can and do occur on credit files. If there are inconsistencies, people do have the right to have them rectified.

    4. Educate yourself on identity theft. Identity theft is the fastest growing crime in Australia, and it can potentially ruin a person’s good credit rating. Typically, the fraudster extracts personal details from the victim and goes about obtaining credit under their name. Often the victim is not aware of the fraud until they attempt to obtain credit and are refused. Fraudsters have taken out credit cards, racked up thousands of dollars of debt, and in some cases have taken out mortgages in their victims’ names.

    The best way to prevent identity theft is to be aware of how it can occur. The Government’s SCAMwatch website www.scamwatch.gov.au is a great place to start getting educated on what to watch out for. For help with preventing online identity theft, the Government’s Stay Smart Online www.staysmartonline.gov.au website also offers ways to combat identity theft through internet use.

    5. Beware excess credit enquiries. Every time a person other than the credit file holder makes an enquiry on the credit file, this entry is noted. Unfortunately the credit file doesn’t show the nature of the enquiry, or whether the credit was approved or declined. Generally excess credit enquiries on the credit file will also hinder people’s chances of obtaining the best loan.

    People can avoid this by not shopping around for credit, or by ensuring that all banks/brokers they deal with do not run a credit check on them until absolutely necessary. Potential borrowers can obtain a copy of their own credit file without incurring a credit enquiry, and this may be a better option to maintain a clear credit rating.

    6. Keep credit limits to the minimum needed. Reducing credit limits not only prevents overspending – it is also beneficial for a person’s credit rating. Credit limits are recorded on all credit that has been taken out by the credit file holder. This amount shows on a person’s credit file, not the amount they have actually used. People should reduce lofty credit limits closer to the actual debt amount.

    Mr Doessel says all credit active individuals will benefit from educating themselves on credit reporting in Australia, and for those that discover inaccuracies on their credit file they will save themselves money by having them removed.

    “People can greatly benefit from clearing their credit file of errors. Sometimes people have neither the time, nor knowledge of legislation that is required to deal with creditors, and in this instance a credit repairer can do the work for them,” he says.

    /ENDS

    Please contact:

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

    http://www.mycra.com.au/ www.mycra.com.au/blog

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

    Link: Australian Bureau of Statistics Household Saving

    Image: Arvind Balamaran/ FreeDigitalPhotos.net

  • Facebook users should be wary of new Timeline feature

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Signs which may alert people to possible identity theft:

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

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

    Image: jscreationzs/ FreeDigitalPhotos.net

     

  • Insight into the ‘dark market’ of the cyber-crime underworld

    Identity theft is on the lips of many concerned Australians. It is also discussed in length amongst Governments, business and the Police who attempt to not only unravel the workings of cyber-crime, but in turn are (albeit often unsuccessfully) attempting to stay one step ahead of it.

    On Wednesday, British newspaper The Guardian, featured organised crime expert Misha Glenny in an article, titled Cybercrime: is it out of control? Anyone who is even slightly curious about the cyber-underworld should at the very least read this article.

    It features Glenny’s new book, titled ‘DarkMarket: CyberThieves, CyberCops and You’. This book follows Glenny’s international bestseller ‘McMafia’.

    The book’s promo says:

    “DarkMarket explores the three fundamental threats facing us in the 21st century: cyber crime, cyber warfare and cyber industrial espionage. The Governments and the private sector are losing billions of dollars each year, fighting an ever-morphing, often invisible, often super-smart new breed of criminal: the hacker.”

    The workings of the underworld will astound any reader interested in how internet scams are perpetrated, and how we as individuals can fit in as pieces of the cyber-crime puzzle at many levels.

    Glenny gives an example of how criminals can hack into computer systems of companies, and use people power of ‘mules’ on the ground, to steal millions of dollars. Here’s how they did it in Canada:

    “The scam was impressive in its simplicity and effectiveness. The gang bought a number of pre-paid debit cards in different locations and placed $15 on each card. Once they had broken into the computer system of the company that issued them, they found the network area that dealt with the limits placed on each card. They sought out the cards they had purchased and, using the control they had established over the company’s networked system, they electronically raised the spending limit on the cards from $15 to tens of thousands of dollars. Over one weekend, they extracted around $1m (£640,000) using the affected cards in ATM machines around the world,” the article says.

    U.S. company, Fidelity National Information Services, which is one of the biggest providers of technology and card services to the banking industry worldwide recently had US$13million stolen in the same way.

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber criminals week in, week out… The Mr Big who orchestrated the whole operation, I was told, kept 70% of those profits for himself – only 30% went to the hackers and the so-called “cash-out” team – that is, the people who have somewhat laboriously to go from ATM to ATM and extract up to $500 each time (before, of course, transferring 70% back to Mr Big),” Glenny says.

    Glenny says that while there are no precise figures out there, the White House suggested in 2009 that cybercime and industrial espionage inflicts damage of around U.S.$1tn per year, which is almost 1.75% of the worlds GDP.

    He says that Britain, the US, Canada, Western Europe, Australia and New Zealand are top targets for cyber criminals from across the world. He says in today’s world any business that is computer-based is vulnerable to attack.

    Glenny describes in great detail the nature of the cyber-crime underworld. He says up until recently criminals could shop at “carder” sites, designed for hackers to deal in credit card or card details – effectively a department store for criminals.

    “The first and the most celebrated among thieves was CarderPlanet. Members would come to this website, run out of Odessa in Ukraine, to buy and sell stolen credit card details, to purchase viruses, trojans and worms with which they could compromise victims’ computers, to take tutorials in how to deploy the latest cyber weapons, or to hire a botnet – a network comprising thousands of zombie computers – to use in an attack against your enemies,” the article says.

    Glenny says these sites set up ‘Escrow’, which is similar to PayPal, using legitimate channels such as Western Union, and allowed criminals to trade with one another – without being ripped off by each other.

    “Carder” sites such as DarkMarket have slipped out of fashion because they were too easily infiltrated by law enforcement agencies such as the FBI and the Serious Organised Crime Agency here in Britain. Instead, the lone wolves have started to form packs with trusted friends and these look more like traditional organised crime groups with a clear hierarchy and division of labour,” Glenny says.

    He gives one example of the new cyber-criminals and the infiltration of malicious software called “scareware”, which played on the fear of virus infection. The company, ‘Innovative Marketing’ made so much money selling fake virus software they established three call centres in England, Germany and France.

    “The structure acts as a mask that obscures the real money-makers: the people who assemble the zombie networks and the Mr Bigs who use their services. The mules are easy to catch but they are very small cogs in a more ruthless machine. The next challenge for law enforcement is not unlike that facing the Untouchables in Al Capone’s Chicago. Capone, of course, was eventually busted for tax evasion. But how can you track down a digital Al Capone when you don’t know who he is or where he is?” he says.

    This illustrates the importance for people to report any instance of identity theft to the Police, no matter how small we may think the matter is. It could be a drop in the ocean to big amounts like the $13m stolen from FIS, but who knows – it could all be drops in the ocean from the same source.

    Cyber-crime with the purpose of idenitty theft can take many forms. It can be perpetrated by stealing the personal information of individuals, generally through obtaining it via virus software known as ‘malware’ or by phishing scams which appear to be genuine companies asking for personal details which can then be used to generate fake identification. Then the fraudster will go about taking out credit in the victim’s name.

    If the theft goes undetected, the fraudster can be racking up thousands of dollars in debt in the person’s name. This is when identity fraud affects the victim’s credit file. When this happens, it is not only the victim’s bank accounts that can be affected, but more importantly their ability to obtain credit in the future.

    In Australia, if a credit file holder fails to make repayments on credit past 60 days, then a default can be placed on their credit file by the creditor. This default shows on the credit rating for 5 years, and can severely hinder their chances of getting credit once it is placed. For the identity theft victim, this can leave them severely disadvantaged for 5 years, and unable to take out legitimate credit. The only way they may be able to restore their good name is through lots of hard work proving to creditors they did not initiate the credit.

    For information on preventing identity theft, and help with repairing a credit rating following fraud, contact MyCRA Credit Repairs, or call tollfree 1300 667 218.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

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

    Media Release
    4 August 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    /ENDS

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

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

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

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

    Image: Ambro / FreeDigitalPhotos.net

     

  • Is Facebook’s face recognition putting your privacy at risk?

    German officials have been quick to protect citizens against possible invasions of privacy and identity theft . Last week they met with Facebook to demand policy change to its biometric function.

    Facebook agreed to a voluntary code of conduct to protect its users’ data. The issue was over Facebook’s facial recognition function, which it has been using since December last year. The function catalogues the faces of users, making ‘tag’ suggestions automatically.

    Technology commentators CIO published the story ‘Facebook bows to stricter German culture’:

    “A few weeks ago, the State of Schleswig-Holstein had ordered all state sites to remove Facebook’s “like” button, and threatened to impose hefty fines on those that didn’t. It said Facebook builds profiles of users and non-users alike with the “like” button’s data, which violates German law.
    And in early August the head of the German data protection authority asked Facebook to disable its facial recognition feature and argued that facial recognition amounts to unauthorized data collection on individuals.

    “It’s obvious that this makes people very nervous when it comes to privacy,” said Carsten Casper, a Gartner privacy analyst, reports the BBC.

    The code of conduct agreement was announced after Richard Allan, Facebook’s director of European public policy, met last week with Germany’s Interior Minister Hans-Peter Friedrich in Berlin and a state parliamentary committee in Kiel, according to ZDNet.

    “With Facebook’s willingness to sign up for this self-regulation … the debate over the extent to which German data protection law applies to Facebook has been considerably defused,” the Interior Ministry said, according to German news website The Local.

    What is interesting, is that no other countries have found this function to be a threat to privacy. Or the framework of privacy laws in other countries may not exist to prevent its use.

    Back in June there were concerns over the potential privacy dangers of the introduction of face recognition technology to Facebook. This comes from an article from The Wall Street Journal for The Australian:

    The technology also raises concerns that Facebook has built a potentially sensitive database of its more than 600 million users based on their facial characteristics, even as other tech titans such as Google say they’ve stopped short of adding facial recognition to some of their services.

    “Facebook users thought they were simply tagging their friends. Turns out Facebook was building an image profile database to automate online identification,” said Marc Rotenberg, executive director of the Electronic Privacy Information Centre, a privacy group based in Washington.

    In a statement, Facebook said it “should have been more clear with people during the roll-out process when this became available to them.”

    Personal information is a valuable commodity these days. The Australian Crime Commission cites identity theft as the fastest growing crime in Australia and much of it is about profile building and data gathering in order to commit identity fraud against unknowing victims, often in other countries.

    And it is ordinary people that are most at risk of identity theft and a subsequent bad credit rating. Commentator Stilgherrian recently shared these insights into identity theft:

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

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

    Is facial recognition just the missing piece of the puzzle scammers need to completely annihilate their victims’ lives?

    How to avoid identity theft

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

    1. Install and renew your security software and set it to scan regularly.
    2. Turn on automatic updates on all your software, including
    your operating system and other applications.
    3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.
    4. Regularly adjust your privacy settings on social networking sites.
    5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.
    6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.
    7. Use strong passwords and change them at least twice a year.
    8. Talk within your family about good online safety.

    Where to go for help following identity theft

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

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

    For more information on identity theft and help with clearing your credit file, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • July’s Lending Finance statistics

    The Australian Bureau of Statistics recently released statistics on lending finance for the month of July . These statistics show a slow but steady increase in lending committments, when compared with the relatively flat June statistics:

     

     

    JULY KEY POINTS

    JULY 2011 COMPARED WITH JUNE 2011:

    HOUSING FINANCE FOR OWNER OCCUPATION
     The total value of owner occupied housing commitments excluding alterations and additions rose 1.5% in trend terms and the seasonally adjusted series rose 1.4%.

     

    PERSONAL FINANCE
     The trend series for the value of total personal finance commitments rose 1.1%. Fixed lending commitments rose 1.1% and revolving credit commitments rose 1.1%.
     The seasonally adjusted series for the value of total personal finance commitments rose 0.5%. Revolving credit commitments rose 3.9%, while fixed lending commitments fell 2.3%.

     

    COMMERCIAL FINANCE
     The trend series for the value of total commercial finance commitments rose 0.9%. Revolving credit commitments rose 2.2% and fixed lending commitments rose 0.3%.
     The seasonally adjusted series for the value of total commercial finance commitments rose 6.1% in July 2011, after a 6.1% fall in June 2011. Revolving credit commitments rose 13.4%, after a 7.8% fall in the previous month. Fixed lending commitments rose 2.7%.

     

    LEASE FINANCE
     The trend series for the value of total lease finance commitments fell 1.3%, while the seasonally adjusted series rose 3.4%.

     

    Australian Broker News says the rise in commercial lending was foreseen by Jonathan Street, executive director of commercial lender ‘Think Tank.’ He predicted “pent up” demand for commercial credit would “release” at some point this year.

    While finance committments are on the rise, experts say credit debt is not. There has been a big trend towards direct debit cards – showing Australians are preferring to spend their own money rather than pay credit for things and some say points to people reigning in debt and focusing on saving. According to finance commentators Switzer, there has been a sharp fall in credit card debt. Statistics show purchases made on debit cards were up by 18.9 per cent on a year ago, while purchases made on credit cards rose by just 1.9 per cent.

    What is evident, is the slow increase in lending figures. This demonstrates that banks are still wary about who they lend money to. It also shows that consumers are being wary about what they borrow money for. But housing finance still seems to be a priority for many Australians.

    With banks still cautious, there still appears to be a great need for a clear credit rating in the current market. Prospective home owners should ensure their credit file puts them in the best position for obtaining a mortgage. They should do a credit check, and ensure their credit report comes back clear.

    If people do find their credit report reveals some black marks, they should consider whether they are candidates for credit repair.

    People should be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

    It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a
    default).

    For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

     

    Image: Idea go/ FreeDigitalPhotos.net