I would like to mention issues about Identity theft that are often overlooked. The first issue is the frequency of identity theft. Identity theft effects between 8.5 to 10 million new Americans each year. Although a car accident has a 1 in 300 chance of occurring, identity theft has a 1 in 23 chance of occurring. Even though there has been more vigilance and education on identity theft prevention, over 50 million Americans have been a victim of identity theft within the last 10 years.This leads me to my second point; identity theft is not 100% preventable. There are things that are not in our control. Ask yourself the following questions:
1. Have you ever filled out a job application?
2. Do you have a bank account?
3. Do you have a utilities account?
4. Have you been to the doctor in the hospital?
If you answered yes to all of these questions, these businesses and institutions already have your personal information such as your credit card number, social security number, birth date and name and address. Each of these entities use databases to store personal information. The average American is listed in 50 databases. Sadly, businesses, banks, stores, universities and even the government are not doing a good job protecting personal information.Security breaches at employers, universities and banks have effected over 100 million personal records of customers and employees. This occurs when unauthorized individuals illegally access customers’ or employees' personal information. It can be due to negligence, oversight, malicious intent or just plain accident.
For an example, on Jan. 31, 2009, Honey Baked Ham in Indianapolis had its computer server stocked with credit-card information stolen. On May 23, 2008 at Health Spring Inc (health insurance company), thieves broke into the Irving Texas regional office and stole a laptop computer containing personal information of numerous individuals, including names and Social Security numbers. This effected more than 15,000 records. On February 9, 2009, hackers broke into the Federal Aviation Administration's computer system and accessed the names and Social Security numbers of employees and retirees. Over 40,000 records were effected. (For a complete list of security breaches, click: http//www.privacyrights.org/.)The most overlooked issue of identity theft is the hours that a victim invests in clearing his/her name.
The Federal Trade Commission’s (FTC) Identity Theft Resource Center estimates that it can take as much as 330 hours to resolve problems associated with identity theft. This translates to 7 weeks worth of full-time work that is missed. This issue often needs seasoned investigators and lawyers to help the victim clear his/her name.Most victims lack the investigative and legal expertise to detect multiple cases of identity theft in several states. They often detect one instance which they are a victim, while failing to realize they are a victim in other cases. For instance, hundreds of identity thieves in several states can use personal information of one victim to open new credit accounts, file taxes and commit crimes under the victims' name. Smart thieves often use a bogus address so the victims will not realize that they are being billed. Victims usually have enough knowledge to detect one instance where they are a victim, but it often takes several years to discover the other instances where their identity has been compromised.
Eventually, identity theft victims discover that they have been victimized when creditors finally contact them at their real address or when the police arrest them during a routine traffic stop. As a result, many victims obtain a misdemeanor or felony on their records and their credit is damaged. These types of cases often require hundreds of hours to resolve. Each state has different laws regarding how to resolve identity theft; this is where support from a liscensed investigator and lawyer would be beneficial.
Tuesday, August 25, 2009
Saturday, May 16, 2009
How to Choose the Right Identity Restoration Plan
The restoration process that is involved in serious forms of identity theft is frequently overlooked. Many identity theft victims are unaware of other forms of identity theft besides credit card fraud. Most victims are able to detect credit card fraud very easily by utilizing their credit monitoring programs. However, due to the victim's lack of investigative and legal experience, they often fail to detect other forms of identity theft that was conducted by the same identity thief. For instance, illegal immigrants often have illegal access to Social Security numbers which allowed them to open new credit card accounts in victims’ names and obtain employment and file taxes under victims’ names.
In 2006, federal raids were conducted at six Swift Company meat-packing plants which were located throughout the United States. Immigration and Customs Enforcement (ICE) agents arrested more than 1200 Swift company employees after ICE uncovered the operations of several identity theft rings that had supplied fraudulent or stolen identities and Social Security numbers of hundreds of U.S. citizens. The thieves who had access to these victims’ personal information to commit social security fraud could have uses this same information to also open new credit card accounts under the victims’ names. Most of the victims would have the ability to detect credit card fraud by using credit monitoring tools. However, the majority of these victims would still have failed to detect Social Security fraud in its early stages.
Secondly, the legal implications behind serious cases of identity theft are also ignored. Credit card companies often file lawsuits against ID theft victims because of the tens of thousands of dollars of debt that was incurred under the victims’ name by identity thieves. If the victim does not provide sufficient evidence that the charge was based on fraud, they are legally responsible for the debt. The victims either decide to pay the debt or face the threat of a lawsuit. In cases where someone is a victim of Social Security fraud, the IRS or state tax agencies will hold an ID theft victim liable for tax debt if they fail to prove that they were a victim of identity theft. If the victim refuses to pay the debt, these agencies will eventually either garnish the victims’ wages, file a lawsuit against the victim or even charge them with tax evasion. In addition, if an impostor who has a victim’s information decides to open credit cards in the victim’s name, the impostor may also use the same victim’s information (i.e. driver’s license number) to also create a fake drivers license and obtain speeding tickets in the victim’s name. As a result, when the victim is pulled over during a routine traffic stop in a state where the imposter incurred moving violations under the victim’s name, the victim is often arrested for failing to pay fines for these violations. Obviously, at this point, legal consultation should be strongly considered.
Choosing the right identity restoration insurance and legal plan can provide a victim the support and resources which are necessary to effectively resolve severe cases of identity theft. An individual who decides to resolve complex forms of identity theft often invest hundreds of hours of his/her personal time and still fails to completely restore his/her identity. How do you choose an effective identity theft program and a legal plan which compliments it? An efficient restoration program should provide the technological resources and the investigative experience to detect if an individual is a victim other types of identity theft besides credit card fraud.
For instance, some restoration plans provide investigation firms which have access to Social Security databases. By using this, the licensed investigators can determine whether one or more impostors have used a person’s Social Security number to obtain employment. This can save victims hundreds of hours in trying to clear their name and eliminate multiple attempts in fully restoring their identity. These plans also provide investigation firms who have access to DMV (Department of Motor Vehicles) databases in 50 states. These databases reveal if any arrest warrants have been incurred in a victim’s name for failing to pay moving violation tickets. If you decide to evaluate whether restoration insurance can effectively protect your assets, ask the representative of the restoration company what types of tools do they utilize to detect different kinds of identity theft other than credit card fraud.
In choosing an effective id restoration-legal protection program, expertise in investigating complex fraud is critical. An investigation firm that has experience in investigating white collar crime is more likely to be more effective in restoring one’s identity than an investigation firm that has experience in violent crime. An investigation firm who specializes in cyber fraud is more likely to be more effective in restoring one’s identity than an investigation firm that specializes in insurance fraud. Thus, it is critical to know what type of investigative experience an ID restoration protection program provides. In addition, the number of years of investigative experience is a strong factor in determining the effectiveness of an investigation firm. A potential restoration client should ask the associate how many years of experience their firm possesses. An investigative firm with more than 20 years experience is strongly suggested.
As was mentioned earlier, there are many legal issues that result from serious identity fraud. Legal consultation and representation are often essential services in clearing a victim’s name. Thus, an effective legal plan should provide coverage which significantly lessens the financial burden in trial representation. Therefore, an individual who is interested in learning more about a company’s legal plan in relation to identity theft should consider the following:
1. Does the plan provide trial hours for representation in civil trials at no additional cost?
2. Do they provide trial hours for representation in criminal trials at no additional cost?
3. How are pre-existing issues handled?
The cost of legal consultation and trial representation for serious identity theft often exceeds $10,000 in legal fees. There are legal plans that provide civil defense coverage which is worth more than $10,000(based on the average attorney rate of $200 per hour). These plans also include unlimited hours of legal consultation. In total, they are generally are less than $500 per year or $50 per month. In regards to pre-existing conditions, different legal plans handle this issue differently.
If you attempt to enroll legal plan after you are a victim of identity theft, some plans may require you to pay the full hourly rate for trial service. There are other plans that may cover your situation at a discounted hourly rate. For instance, if an id theft victim purchases a plan after he/she realizes that he/she is a victim and needs 60 hours of trial defense to resolve an identity theft issue with a credit card agency, it can cost between $6,000-9,000(average $200 per hour/25%-%50 discount) which includes the monthly fee. If the same person becomes a victim when they were enrolled in the plan, the same hours would be provided for only the monthly fee which is generally less than $50 per month.
Lastly, it is also very important for potential restoration clients to learn how pre-existing conditions are treated under restoration plans. Similar to traditional kinds of insurance, most restoration plans do not cover pre-existing conditions. Like reviewing a renter’s insurance policy before your apartment is destroyed by a fire, it is critical to review a restoration insurance program before you realize that you are a victim of identity theft. It’s better to have it and not need it than to need it and not have it.
In 2006, federal raids were conducted at six Swift Company meat-packing plants which were located throughout the United States. Immigration and Customs Enforcement (ICE) agents arrested more than 1200 Swift company employees after ICE uncovered the operations of several identity theft rings that had supplied fraudulent or stolen identities and Social Security numbers of hundreds of U.S. citizens. The thieves who had access to these victims’ personal information to commit social security fraud could have uses this same information to also open new credit card accounts under the victims’ names. Most of the victims would have the ability to detect credit card fraud by using credit monitoring tools. However, the majority of these victims would still have failed to detect Social Security fraud in its early stages.
Secondly, the legal implications behind serious cases of identity theft are also ignored. Credit card companies often file lawsuits against ID theft victims because of the tens of thousands of dollars of debt that was incurred under the victims’ name by identity thieves. If the victim does not provide sufficient evidence that the charge was based on fraud, they are legally responsible for the debt. The victims either decide to pay the debt or face the threat of a lawsuit. In cases where someone is a victim of Social Security fraud, the IRS or state tax agencies will hold an ID theft victim liable for tax debt if they fail to prove that they were a victim of identity theft. If the victim refuses to pay the debt, these agencies will eventually either garnish the victims’ wages, file a lawsuit against the victim or even charge them with tax evasion. In addition, if an impostor who has a victim’s information decides to open credit cards in the victim’s name, the impostor may also use the same victim’s information (i.e. driver’s license number) to also create a fake drivers license and obtain speeding tickets in the victim’s name. As a result, when the victim is pulled over during a routine traffic stop in a state where the imposter incurred moving violations under the victim’s name, the victim is often arrested for failing to pay fines for these violations. Obviously, at this point, legal consultation should be strongly considered.
Choosing the right identity restoration insurance and legal plan can provide a victim the support and resources which are necessary to effectively resolve severe cases of identity theft. An individual who decides to resolve complex forms of identity theft often invest hundreds of hours of his/her personal time and still fails to completely restore his/her identity. How do you choose an effective identity theft program and a legal plan which compliments it? An efficient restoration program should provide the technological resources and the investigative experience to detect if an individual is a victim other types of identity theft besides credit card fraud.
For instance, some restoration plans provide investigation firms which have access to Social Security databases. By using this, the licensed investigators can determine whether one or more impostors have used a person’s Social Security number to obtain employment. This can save victims hundreds of hours in trying to clear their name and eliminate multiple attempts in fully restoring their identity. These plans also provide investigation firms who have access to DMV (Department of Motor Vehicles) databases in 50 states. These databases reveal if any arrest warrants have been incurred in a victim’s name for failing to pay moving violation tickets. If you decide to evaluate whether restoration insurance can effectively protect your assets, ask the representative of the restoration company what types of tools do they utilize to detect different kinds of identity theft other than credit card fraud.
In choosing an effective id restoration-legal protection program, expertise in investigating complex fraud is critical. An investigation firm that has experience in investigating white collar crime is more likely to be more effective in restoring one’s identity than an investigation firm that has experience in violent crime. An investigation firm who specializes in cyber fraud is more likely to be more effective in restoring one’s identity than an investigation firm that specializes in insurance fraud. Thus, it is critical to know what type of investigative experience an ID restoration protection program provides. In addition, the number of years of investigative experience is a strong factor in determining the effectiveness of an investigation firm. A potential restoration client should ask the associate how many years of experience their firm possesses. An investigative firm with more than 20 years experience is strongly suggested.
As was mentioned earlier, there are many legal issues that result from serious identity fraud. Legal consultation and representation are often essential services in clearing a victim’s name. Thus, an effective legal plan should provide coverage which significantly lessens the financial burden in trial representation. Therefore, an individual who is interested in learning more about a company’s legal plan in relation to identity theft should consider the following:
1. Does the plan provide trial hours for representation in civil trials at no additional cost?
2. Do they provide trial hours for representation in criminal trials at no additional cost?
3. How are pre-existing issues handled?
The cost of legal consultation and trial representation for serious identity theft often exceeds $10,000 in legal fees. There are legal plans that provide civil defense coverage which is worth more than $10,000(based on the average attorney rate of $200 per hour). These plans also include unlimited hours of legal consultation. In total, they are generally are less than $500 per year or $50 per month. In regards to pre-existing conditions, different legal plans handle this issue differently.
If you attempt to enroll legal plan after you are a victim of identity theft, some plans may require you to pay the full hourly rate for trial service. There are other plans that may cover your situation at a discounted hourly rate. For instance, if an id theft victim purchases a plan after he/she realizes that he/she is a victim and needs 60 hours of trial defense to resolve an identity theft issue with a credit card agency, it can cost between $6,000-9,000(average $200 per hour/25%-%50 discount) which includes the monthly fee. If the same person becomes a victim when they were enrolled in the plan, the same hours would be provided for only the monthly fee which is generally less than $50 per month.
Lastly, it is also very important for potential restoration clients to learn how pre-existing conditions are treated under restoration plans. Similar to traditional kinds of insurance, most restoration plans do not cover pre-existing conditions. Like reviewing a renter’s insurance policy before your apartment is destroyed by a fire, it is critical to review a restoration insurance program before you realize that you are a victim of identity theft. It’s better to have it and not need it than to need it and not have it.
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