MyCRA Specialist Credit Repair Lawyers

Tag: National Identity Fraud Awareness Week

  • Is your good name at risk? What you may not know about identity theft and your credit file

    It is reported that possibly as many as 24 per cent of Australians* have been, or knows someone who has been, a victim of identity crime in the last six months. As this week is National Identity Fraud Awareness Week, we are hoping to do our part to raise awareness about this crime. Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when. So we look at the facts on identity crime both worldwide and in Australia, and hope to educate more people about this new crime wave, as it can severely impact your credit file and hinder your ability to obtain credit. It could also help to pass the information on to someone you know.

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

    Australian Federal Police released a statement yesterday warning Australians to defend themselves against identity crime. AFP National Coordinator Identity Security Strike Team’s Darren Booy said this year’s focus is on limiting the amount of personl information that falls into the hands of criminals.

    “Identity fraud is an emerging threat to Australia and is growing rapidly, with identity fraudsters using increasingly sophisticated methods to manipulate their victims,” Superintendant Booy said in a statement to the media.

    Who commits identity theft?

    It can originate from someone you know – for example an acquaintance obtains identity documents or credit card details to impersonate you. Or more increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud. These fraudsters are reportedly part of a network of criminals possibly involved in many other crimes. The Australian Federal Police recently stated that most large crime groups have built identity theft into their repertoire.

    The key to successful identity theft is obtaining your vital personal information. The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever.  This means identity crime can have very long arms and can originate overseas. Social networking, online banking, company databases and email scams can all be havens for today’s cyber- criminal.

    You can also fall victim to a number of rampant telephone scams, credit card skimming, or criminals can also take to going through your rubbish bin for anything they may be able to use to steal your identity.

    Why is identity theft increasing?

    The pay-offs are huge for criminals. It is estimated by the Australian Crime Commission that identity crime costs Australians $1 billion a year.( OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37).

    In cyber circles alone, world estimated costs for cybercrime are staggering.

    Cyber-crime expert Mischa 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 GDP.

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber- criminals week in, week out,” he said in an article Cybercrime: is it out of control?

    How would identity theft impact my life?

    We consider if someone is alerted to having money stolen from credit cards early, or perhaps is able to call their bank and stop fraud in its tracks – that they are the lucky ones.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages your credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about you to forge new identity documents.

    This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money without you realising it straight away.

    Fraudsters are never kind enough to pay back the credit they obtain in your name. After 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    When would I know if I have been a victim of identity theft?

    Some signs to watch out for include:

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

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

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

    4. Credit refusal

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

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

    What steps can I take to prevent identity theft?

    1. Keep virus software up to date on your computer. Install automatic updates and perform regular virus scans.

    2. Keep your privacy settings secure on all social networking sites.

    3. Keep your passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.

    4. Check all your credit card and bank statements each time they come in.

    5. Cross-shred all personally identifiable information which you no longer need.

    6. Buy a safe for your personal information at home.

    7. Do not give any personal information or credit card details to anyone via phone or email unless you are sure the site is secure, and or you can verify the company details.

    8. Be aware of who gets our personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?

    9. Keep up to date with the latest scams by subscribing to the ACCC’s ‘SCAM watch’ website. For a list of ways your computer can put you at risk, visit the governments Stay Smart Online website www.staysmartonline.gov.au.

    10. Check your credit file regularly. A credit check at least every 12 months (which is free annually) will alert you to any suspicious activity with your credit file.

    If you think you might be vulnerable to identity theft, here are some things you need to do:

    What can I do if I suspect I am a victim of identity theft?

    1. Notify Police immediately. Many people do nothing due to embarrassment, or because they don’t believe the fraud was significant enough. But is only through this crime getting reported that statistics get collated, and we start to have any chance of catching the criminals.

    2. Notify creditors. You may need to cancel credit accounts.

    3. Obtain a credit report. This report is free once per year for every Australian who holds a credit file. It will indicate to you whether any of your contact details have changed, or whether there have been credit enquiries on your account. If you act quickly enough, you may be able to stop your credit rating from being affected by black marks which would come from fraudsters obtaining credit in your name.

    4. Notify credit reporting agencies of the possible fraud. They will be able to put an alert on your credit file.

    5. Police may assist you in obtaining a Victims of Commonwealth Identity Crime certificate, if they believe you are eligible. You can apply to a magistrate in your State for this certificate, which may help in recovering your credit rating or credit accounts. Victims need to have had a Commonwealth Indictable Offence committed against them. For more information, visit the Attorney-General’s website www.ag.gov.au.

    If you or someone you know needs help recovering their credit rating following identity theft, contact MyCRA Credit Repairs, www.mycra.com.au or call a Credit Repair Advisor tollfree on 1300 667 218 for confidential advice and help restoring your good name.

    The Australian Federal Police have established an Identity Crime Survey to test people’s vulnerability to identity crime, and we encourage everyone to take the test: http://www.afp.gov.au/what-we-do/campaigns/national-identity-fraud-awareness-week.aspx

  • 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