The Nightmare of Identity Fraud

How can CryptoPhoto protect you and your family?

CryptoPhoto - Protect yourself from Identity Theft
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44 year old Morag Fraser wanted to buy a cooker for her kitchen. To her surprise, the shop refused her credit. Morag assumed it was a glitch and paid cash. But a week later it happened again. When she checked her credit record, she got a shock:

Morag had become a victim of identity theft

Someone had got a hold of her personal details. They then went to three banks, pretended to be her, and applied for £10,000 ($15,000) in loans. The banks checked with a credit agency, who told them Morag had a perfect credit record. So the banks handed over $15,000 to the impostor:

By the time Morag found out, the impostor and the money had vanished.

So the banks apologised, didn’t they?

No. They told Morag they didn’t believe her. They told her she had to “repay” the missing $15,000 – plus interest! Morag went to the police… who told her it wasn’t their problem. Then it got nasty:

Hounded by debt collectors

“Debt collectors started turning up at my door, threatening my children. I’ve never been so terrified in all my life.” She couldn’t eat, and suffered from acute anxiety and insomnia. How long did this go on for?

Three years! Even when two of the banks admitted the loans were fraudulent, debt collectors from the third kept pressuring her to pay up anyway. Why?

Because debt collectors only get paid if they collect, and get fired if they don’t. And because they bought the debt from a creditor, they don’t even know if the debt is genuine or not. But that doesn't matter, so long as they can find someone, anyone, who they can force to pay it…

So they bully, intimidate and embarrass people into paying. Some debt collectors are criminals and thugs, assaulting and threatening to rape debtors. One woman went into nervous shock and had a miscarriage when a debt collector told them he was going to burn down their house.

In some jurisdictions harassment and coercion is legal.

Debt Collector Mel Harsh: “I was absolutely ruthless when I first started out as a debt collector. I had a black heart. … I can’t wait to get out of this line of work. I’m sick of all the agony I put people through.”

Debt Collector Alexis Moore: “You'd be surprised what goes on behind closed doors. … If you didn’t produce money, you would be fired in a heartbeat, and this brought out the worst in people.”

How debt collectors manipulate the courts

Some people pay just to stop the harassment. If not, they get sued. Forget what you’ve seen on Ally McBeal. In real life, the courts are brutal:

A famous judge once said: “I must say that as a litigant I should dread a lawsuit beyond almost anything else short of sickness and death.”

In court, the debt collector paints the victim as a deadbeat, and sometimes the judge buys it. That’s what happened to Matthew J. Hartigan of Clearwater, Florida:

Hartigan found himself saddled with a $98,293 court judgement, even though he couldn’t have possibly bought the real estate (he was age 12 at the time!) He spent 17 years fighting debt collectors before his name was finally cleared. There’s another dirty tactic they use:

“Sewer Service”

Debt collectors call it a “sewer service”: The debt collector throws away the court summons, so the victim doesn’t know there is a court hearing. When the victim doesn’t show up, the debt collector wins by default. The victim doesn’t find out until bailiffs show up at their home to seize their property, or take money straight from their bank accounts. They can break into your house, even if they know you’re home:

“The bailiffs I worked with routinely made people pay debts they didn't even owe and doubled, or even tripled debts they did. … I saw them cheat, lie, intimidate and dissemble. I saw them illegally breaking and entering. I saw them fraudulently conning members of the public (often guilty of no more than failing to pay a parking fine) out of hundreds of pounds.”

Credit card fraud

Even small scale identity fraud is a pain to deal with. Take what happened to Betsy Watson of Asheville, North Carolina:

Betsy had her personal details stolen from online shopping web sites. $3,000 was taken from her bank account, credit card, and Paypal. Her Credit Union covered the fraud, but it still took two months to get her money back. She wasn’t so lucky with Paypal who gave her the runaround.

Garry Marr found $14,492 of fraudulent charges on his credit card: “I received my reversal of charges in less than a week. The real issue is the inconvenience. You don’t have your credit card for 48 hours, and then there are all those automatic charges to your account. I have about 10 companies I now have to contact to give them my new card number.”

Garry’s wife couldn't buy a $4.75 latte when her credit card was refused, but Don Marcani in a similar situation found himself arrested because he couldn’t pay for what he'd already drank! His Attorney complained: “Now we have to worry about getting arrested for using our own credit card.”

But these people are the lucky ones!

In a notorious case, a criminal bought houses, motorcycles and guns in a victim’s name, also running up $100,000 of credit card debt. It took the victims four years and more than $15,000 of their own money to undo the damage. But what happened to Wesley Taylor of Indianapolis was even worse:

Criminal Timothy Ware stole Wesley Taylor’s name and social security number, which he used to commit a string of crimes. Taylor found himself arrested and accused of murder. Ware is now serving a 55 year jail sentence, but seven years later Taylor is still trying to clear his name.

But Taylor was “only” accused of murder. A single fraudulent purchase on Englishman Simon Bunce’s credit card saw him arrested for the worst crime imaginable:

The worst crime imaginable

While Bunce was sitting down to a meal in a London restaurant, on the other side of the world a fraudster used Bunce’s stolen credit card number to buy illegal pornography.

Bunce was arrested “on suspicion of possessing indecent images of children, downloading indecent images of children and incitement to distribute indecent images of children.” How did people react?

When his employer found out, they fired him. When his family found out, only his wife stuck by him. Everyone else, including his own father, disowned him.

Eventually the police admitted Bunce was a victim of credit card identity fraud, but not before Bunce’s life had gone to hell: “Being arrested and accused of what is probably one of the worst crimes known to man, losing my job, having my reputation run through the mud, it’s a living nightmare.”

And all because of one fraudulent credit card purchase! How much can a criminal buy your credit card number for?

For as little as $6, or $350 for the complete the set of documents to impersonate you.

So now you know what identity fraud is, how can you stop it happening to you?

By protecting this private information about yourself:

  • Your name
  • Home address
  • Your e-mail addresses
  • Credit card numbers
  • Date of Birth
  • Social security number
  • Medical records
  • Bank account details
  • Web login names and Passwords

A fraudster who gets their hands on this information – even in part – can:

But how do identity thieves get your information?

One way is by phishing. They send you an e-mail or make a phone call, impersonating your bank or a government worker, asking for your details.

But don’t most people know this is a scam, and refuse to share their details?

Yes. Some people fall for it, but most refuse. Criminals needed to find another way, and so they turned to hackers:

Hacked!

Hackers now break into companies’ computer systems to steal customer records, which include personal details and credit card numbers. Many people who fall victim to this don’t even know it! In 2014 – 2015, these companies were hacked:

Anthem health 78 Million customers’ records stolen; Target 70 Million customers; Home Depot 56 Million customers; Premera Blue Cross 11 Million customers; ULCA Health 4.5 Million customers; Michael’s crafts 3 Million customers; Staples 1.16 Million customer records; Neiman Marcus 1.1 Million customers; Domino’s Pizza 650,000 customer records; Aaron Brothers 400,000 customers; Bartell Hotels 55,000 customers; Sally Beauty 25,000 customer records (2nd incident); Bebe clothing customers in 200 stores; Kmart undisclosed; Dairy Queen customers at 395 stores; SuperValu customers at 180 stores (2nd incident); P.F. Chang’s customers at 33 stores; Ebay 145 Million customers.

Hacking is now so bad that in 2014, a staggering 47% of Americans had their personal details compromised. How can you protect yourself?

How to stop identity theft

1. Avoid companies with poor security.

Don’t give personal details, use your credit card, or shop online with companies that have been broken into by hackers.

But many companies don’t report hacking, or even know if they’ve been hacked. So how can you tell which companies are secure, and which aren’t?

You can tell by whether or not they use CryptoPhoto:

2. Only shop at reputable retailers protected by CryptoPhoto.

CryptoPhoto is a free App which protects you from phishing and identity fraud. You can use it at any retailer displaying the CryptoPhoto logo on their web site. How does CryptoPhoto protect you?

When you log in to their website, you confirm your identity by tapping a picture on your smartphone. It’s fast and easy. This 30 second video shows how it works:

 

 

CryptoPhoto isn’t just fast and easy. It’s also secure. So secure that even if your personal details are stolen though some other means (burglary, phishing, malware, a stolen wallet, or from a hacked retailer), the identity thief still can’t log in as you.

But it’s not enough for a retailer to protect their web site: They also need to protect their internal computer systems (where they store your personal details).

CryptoPhoto does that too, with CryptoPhoto Back Office protection. So even if a hacker gets a company login id and password and penetrates the corporate network, they still can’t log in to steal your data.

Click here for the free CryptoPhoto App

3. Freeze your credit reports.

Many credit reporting agencies let you lock your credit reports for under $50.

While they’re frozen, identity fraudsters cannot take out new loans in your name.

And if a creditor issues a loan without realising your credit report is frozen, they’re going to look mighty stupid later on!

In some countries you can only get a “credit alert;” This won’t stop creditors from making fraudulent loans, but you will find out about it sooner.

Click here for more information: USUKNew ZealandCanadaAustralia

Americans can also get their credit report here, for free, by US law.

You can see if you are a known victim of hacking by checking these web sites.

4. Don’t give out personal information without good reason.

Don’t respond to phishing e-mails nor phone calls. If someone calls you claiming to be from a bank or government, ask their agency’s name. Then look up that agency’s phone number in the Whitepages and call on that. (Don’t get it from the caller - they could provide you with a false number.)

Companies love making you fill in forms, but most of the information they ask you for they don’t really need. So only give them what they need to see. Don’t give your SSN nor driver’s licence unless they have a lawful reason to demand it.

USA Today recommends you even limit the personal data you provide health care providers. Identity Theft victim Amy Krebs suspects her personal data may have been stolen by someone in her doctor’s office. Stolen medical records sell for $500, and it costs victims about $13,000 in out-of-pocket expenses to undo the damage.

5. Protect your family.

Watch out for your family too. Identity fraudsters steal the identities of children and college students.

Children are targeted for identity theft 51 times more frequently than adults. Children are targeted precisely because they don't check their credit records, and some credit card companies are so keen to give credit they have issued cards to children, cats, dogs, a snake, and I kid you not, a tree.

6. If you’re defrauded, follow the Identity Fraud Victim Checklist.

Fraud is always a crime. If you become a victim of identity fraud, act quickly and follow an Identity Fraud Victim Checklist such as this. (Laws vary by jurisdiction).

Don’t ignore debt collectors, but don't be intimidated by them either. Know your rights!

7. Know your rights.

Law Professor Bruce Kercher says debt collectors succeed because often people don’t know their rights. You need to know yours:

Law Professor Peter Holland on how to fight junk debt law suits

Financial Adviser Phillip Scott on why not to pay debt collectors if the debt is not yours

US:

Federal Trade Commission: Dealing with Debt Collectors; Make a complaint

Know your rights under the Fair Debt Collection Practices Act

Department of Justice: Identity Fraud

Privacy Rights: Criminal Identity Theft: What to Do if It Happens to You

A Business Insider: Simple Way To Get Debt Collectors To Stop Harassing You

TIME: How to protect yourself from the epidemic of sleazy debt collectors

ABC News: 10 Tactics to stop Rogue Debt Collectors

Money.com: 9 Ways to Outsmart Debt Collectors

Bankrate.com: 6 tips for dealing with debt collectors

CreditCards.com: 11 tips for dealing with debt collection, collectors

FOX News: Secrets of Debt Collection Agencies

NY Times: Learning How to Fight the Collector

Credit.com: 12 times you can sue a debt collector

Credit.com: Demand proof of debt

Steve Rhode: Demand Debt Validation

Nolo: What to Do If a Bill Collector Crosses the Line

Australia:

“Consumer Debt Recovery Law,” Bruce Kercher.

ACCC: “Dealing with Debt Collectors.”; Make a complaint

Identity theft: Macquarie Bank advances 'over $20,000' to Scrabble king impostor

New Zealand:

Consumer NZ: Debt collectors - Know Your Rights

Consumer Affairs: Debt collection

Canada:

Consumer Protection BC: Know Your Rights

Ontario: Your Rights and Collection Agencies

CBC: 4 things to know if you’re harassed by debt collectors

Rules for Canadian Debt Collectors

UK:

Money UK: How to complain about a debt collector

Guardian: We set out what you are – and are not allowed – to do if the bailiff comes calling

Singapore:

Asia One: How to deal with the legal limits of debt collectors

Some jurisdictions have laws to protect victims of from identity theft. Consult Legal Aid or an attorney to see what protection is available to you.

Learn from Others:

Read Amy Kreb’s story and her blog “Your Identity Theft Superhero” about cleaning up after identity theft.

Read how Tech Journalist Mat Honan’ story about cleaning up after he has hacked.

So what happened to poor Morag Fraser? You can read the rest of her story here.

Protect you and your family from Identity Theft and Credit Card Fraud with the Award-winning Free CryptoPhoto App:

Click here for the free CryptoPhoto App

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