LifeLock » criminal identity theft

Protect yourself from tax-related identity theft

admin — Mon, 06 Feb 2012 16:14:39 +0000

Tax-related identity theft is quickly turning into a way for thieves to get some quick cash. The National Taxpayer Advocate calls tax-related identity theft one of the top problems currently facing taxpayers.

In most cases, identity thieves steal Social Security numbers and file fraudulent tax returns, and the money is then loaded onto debit cards issued to debit cards issued to the stolen identities.

Law enforcement officials are already comparing identity thieves cranking out fraudulent tax returns to the crack cocaine epidemic in the 1980s. Thieves only need a laptop and they’re in business. And a thief can get about $1,700 per return filed, on average.

Law enforcement is cracking down on this crime, and the IRS has also begun to take a more proactive stance, working with federal agents to conduct a nationwide sweep recently that netted the arrests of more than 50 people and put a stop to a nationwide identity theft ring.

IRS officials have said the raid was timed to give a message to identity thieves: You will be pursued and arrested if you commit tax-related identity theft. The IRS has stepped up internal reviews to spot fake tax returns before the refunds are issued, and is improving its effort to aid those who fall victim to identity theft scams.

This tax season, be careful about how you file. If you file online, do so on a secure computer. If you mail in your tax return, make sure you mail it at the post office or at a secured mailbox. Don’t leave copies of your tax information or return lying around where anyone can see it.

Tennessee woman’s home for rent – and she had no idea

admin — Wed, 28 Dec 2011 16:30:32 +0000

Identity thieves are always seeking new and inventive ways to fool the masses into giving up their personal or financial information. But they are also constantly coming up with ways to use that information once they’ve stolen it.

A thief in Tennessee stole a woman’s identity, then used it to offer up her home for rent without her knowledge. He set up a website in the woman’s name, then advertised the home for $1,000 a month, with a $1,000 deposit.

A potential renter contacted her own realtor, who then notified the homeowner about the scam. The homeowner then searched online and found the fake listing. She says that to date, no one has shown up at her home claiming to have rented the home.

Thieves can also use your stolen Social Security number to get a driver’s license or an ID card issued in your name, but with their picture. They could then use it to get government benefits or file a fraudulent tax return in your name.

Thieves use stolen personal information to apply for jobs, obtain utility services like electricity, cable, heating or telephone, and they even rent apartments and other housing.

The worst possible scenario is a thief using your stolen information when arrested. Thieves give police officers your personal information when they are arrested, and then you have the criminal record, not the thief. When the thief doesn’t show up for court, the police come looking for you with an warrant bearing your name.

Be safe. Protect your information and don’t give it out to just anyone.

ID theft is more sophisticated than you think

admin — Fri, 18 Nov 2011 16:04:41 +0000



VA nurse finally sees justice after 15-year ID theft
admin — Mon, 03 Oct 2011 15:36:28 +0000
After causing 15 years of suffering for a 50-year-old Veterans Affairs hospital nurse, an identity thief is finally behind bars.
Arthur Gerald Jones, 73, has pleaded guilty in a Las Vegas courtroom, and has been ordered to pay restitution to both the Social Security Administration and the man whose identity he stole, Clifton Goodenough. Jones pleaded guilty to one count of felony identity fraud.
Jones fled his home and left his family behind in 1979, and bought Goodenough’s information on the black market for $800. The information included Goodenough’s Social Security number. 
Jones then moved to Florida, and then later to Las Vegas, using his new identity. He became a bookie at a casino. Jones was declared legally dead in his native Ohio in 1986. 
Jones used Goodenough’s Social Security number to pay taxes on his winnings in Las Vegas, as well as other income. The IRS apparently didn’t notice there were two Goodenoughs with the same number.
But when Goodenough moved to Arizona in the mid-1990s, the two men’s tax returns were processed through the same office. Goodenough was contacted by the office, which was asking why he hadn’t paid taxes on the extra income he was earning in Las Vegas. Goodenough had never even been to Las Vegas.
When the IRS drained his bank account to pay taxes, Goodenough decided to get to the bottom of the problem. He found Jones’ phone number, and called him. Jones claimed to be concerned that their “shared” identities were causing Goodenough problems, and offered to change his Social Security number. 
Goodenough thought something was fishy there, and he called Sen. John McCain, and told him that every minute he spent trying to sort out the mess was a minute away from caring for America’s veterans. McCain went to work on Goodenough’s behalf, and Jones was soon arrested.
Jones could face three years of probation and repayment of $70,000 to the SSA and Goodenough. How Goodenough’s information got placed on the black market remains a mystery.



Gift cards used in identity theft
admin — Wed, 03 Aug 2011 15:22:23 +0000
Two Romanian men are now facing 70 criminal charges after exploiting Dunkin’ Donuts gift cards.
Daniel Gheorghe and Lonel Cristian Popa, who are in the U.S. on journalism visas, exploited a flaw in how the gift cards are programmed, then turned the cards into phony ATM cards. The duo used special software to reprogram the cards with stolen bank account numbers, and used them to withdraw $17,703 from various bank ATMs located in Hollis, Queens, N.Y. 
The Queens district attorney said the men used the ATMs as their “personal slot machines,” carrying out the unauthorized transactions with account information belonging to customers at various area banks.
The gift cards are issued with a 16-digit vendor number. According to investigators, none of the codes displayed on the seized cards matched the encoded information on the card’s magnetic strips. The numbers on the strips came from accounts registered to several banks in the area, including Chase, Bank of America, Citbank and HSBC. It’s not known how the men obtained the victims’ account information.
The men were arraigned late last week in Queens County Supreme Court on a 70-count indictment. Sixty-six of the counts are for second-degree criminal possession of a forged instrument, which carries a sentence of up to seven years in prison on each count. Both men are being held on $150,000 bail, and could face life in prison.
The indictment states that police first observed the duo’s unlawful activity in March. The ATMs used read the cards as bank-issued cards. After the men were observed stuffing $20 bills in their pockets after withdrawal, police were called to the scene. The men had more than $17,000 on them and 66 Dunkin’ Donuts gift cards.



2007 video still rings true – Protect your child’s SS number
admin — Fri, 29 Jul 2011 14:49:36 +0000




ID theft ring targets hundreds from Georgia to California
admin — Wed, 27 Jul 2011 15:24:29 +0000
A Georgia man orchestrated a operation that stole thousands of checks as part of a theft ring that involves at least 6,100 victims located from Georgia to California.
Derrick Pickett, 38, appeared before a judge this week in Gwinnett County, Ga. Pickett, according to police reports, initially deposited tax return, Social Security, anticipation loan and counterfeit checks in an account in his name. But once federal agents began to sniff around, Pickett befriended an accomplice.
Annette Ford fo Suwanee, Ga. was hired by Pickett to cash checks he gave her, totaling up to $50,000 each time. The duo met when Ford became a client at Pickett’s hair salon in Stone Mountain, Ga. Beginning in February of this year, the pair would meet up three or four times a week, and exchange stolen checks for cash.
The checks were deposited daily, and the cash was withdrawn on a daily basis. 
In April, federal agents searched Ford’s home and found fraudulent tax returns, checks, and the names, birth dates and Social Security numbers of hundreds of people, handwritten on legal pads.
Ford pleaded guilty last month to conspiracy and identity fraud. Pickett remains in jail in Gwinnett County. 
Police are seeking two more individuals they believe worked with Pickett and Ford in the identity theft ring. 



IRS issues warning about electronic payment scam
admin — Wed, 29 Jun 2011 14:58:14 +0000
The IRS has issued a warning to consumers to be aware of a scam e-mail regarding electronic federal tax payments.
The e-mail states that tax payments made by the recipient through the Electronic Federal Tax Payment System have been rejected. The recipient is the directed to a bogus link that downloads malware, which infects the victim’s computer. This is a typical ploy used by identity thieves to gain access to personal and financial information.
The first thing consumers should remember is that the IRS has never sent unsolicited e-mails to consumers about their tax accounts, and does not communicate payment information through e-mail. 
If you receive such an e-mail, don’t click on any links, open any attachments and don’t reply to the sender. You should forward suspicious e-mails to the IRS at phishing@IRS.gov. Once you’ve forwarded the e-mail, delete the original message.
If you suspect that a website that claims to represent the IRS is bogus, send the URL to the above address, using “Suspicious Website” as the e-mail subject line.
The advice provided by the IRS regarding unsolicited e-mails is good for any unsolicited e-mail – if you don’t know where it came from, don’t click on any links or open any attachments. If you do, your computer could be subject to dangerous malware that could allow a thief who knows what he’s doing to steal your passwords, and thereby attain entry to your personal and financial accounts. 
Remember: if it seems suspicious, leave it alone.



Couple caught for using job applications to steal IDs
admin — Wed, 15 Jun 2011 14:38:08 +0000
A couple from Canada has been accused of misleading people into believing they were applying for a job, but they were really stealing applicants’ identities.
Danielle Addington and Lyle Barfett allegedly set up a dummy company, and when people came in to apply, they asked them for their driver’s licenses for identification purposes. Then, either Addington or Barfett would go into a back room and make a fake copy of the license and give the fake license back to the applicant.
The licenses were used to make purchases on furniture and other items.
The couple was arrested after they allegedly tried to buy a $4,000 bed. The owners of the bed store were suspicious of the ID presented, and called police. The couple was arrested when they came to pick up the merchandise.
Police officers then raided the couple’s Sugarland, Texas home and found the names of more than 100 victims. They also found plates to make phony IDs, as well as two counterfeit Canadian passports.
Addington and Barfett had run a real estate company in Edmonton, Canada, and disappeared after some of their customers became disgruntled. 
When you are asked for your driver’s license, don’t be shy about asking why it’s needed if you don’t know. You should also ask that any copies be made in front of you, or ask if you can go with the person who’s making the copy. Always be sure to get your license back.
It’s also important to ask how the copy of your license will be used and stored, and who will have access to the information.



IRS seeks to crack down on tax-related identity theft
admin — Mon, 06 Jun 2011 15:07:51 +0000
Internal Revenue Service Commissioner Douglas Shulman told a House panel last week that the growing popularity of the IRS’ e-file option isn’t to blame for a huge increase in identity theft-related tax fraud.
The number of people filing taxes electronically has grown in the past few years, topping off at 71 percent of all returns in 2010. The number of tax-related identity thefts has increased five-fold, from about 50,000 in 2008 to nearly 250,000 in 2010.
It should be noted, however, that a government review has shown that there is no evidence that the increase in tax-relative identity theft in recent years is the result of a breach in the IRS’ physical or online security.
The most common method used by identity thieves that is tax-related is refund fraud, in which a thief uses a taxpayer’s name, Social Security number and other information to file a false return and collect the refund. 
In other cases, an identity thief uses a victim’s name and information to apply for and obtain employment, confusing the IRS when the employer submits the employee’s tax information.
The IRS has instituted a series of automatic triggers, such as a major change in income, that raises the level of scrutiny a return gets. The triggers are designed to help reduce and eliminate tax-related identity theft.
Returns from past victims of identity theft automatically undergo additional inspection.