Identity theft, one side effect of high-tech banking and
shopping, is a growing problem that has some businesses as anxious
to protect customers’ privacy as customers are to protect
themselves.
Identity theft, one side effect of high-tech banking and shopping, is a growing problem that has some businesses as anxious to protect customers’ privacy as customers are to protect themselves.
The serious crime, which can lead to a bad credit rating that can take a lot of time, money and effort to clear up, is on the rise nationwide, credit officials say, and Santa Clara County is no exception.
Morgan Hill police Detective Ken Howard, who handles cases of property crimes, said the number of identity theft cases the department has handled over the last three years has fluctuated, and remains an area of increasing concern for many departments.
In Morgan Hill from July 1, 2007 to July 1, 2008, there were 51 cases taken by the police department. During the same time period the prior year, there were 49 cases, and from July 1, 2005 to July 1, 2006, there were 61 cases.
In Gilroy, according to Sgt. Jim Gillio, police took reports of 40 identity theft cases from July 1, 2007 through Dec. 31, 2007 and 43 cases from Jan. 1, 2008 through Jun 30, 2008, for a total of 83 cases during the last fiscal year.
Image & Design Salon & Day Spa owner Heidi Trujillo said she believes her customers are safe from identity theft in her business.
“For credit cards, each of our stylists has her own terminal, and when the receipts are printed, they only have the last four digits of the card number on them,” she said. “I think we’re pretty safe in that respect.”
According to the Associated Press, authorities in Boston and around the nation have cracked what may be the largest federal hacking and identity theft case ever, involving the theft and sale of more than 41 million credit and debit card numbers.
Eleven people, including a U.S. Secret Service informant, have been charged in connection with data breaches at nine major retailers, the Justice Department announced Tuesday. Three of those charged are U.S. citizens while the others are from Estonia, Ukraine, Belarus and China.
The indictment returned Tuesday by a federal grand jury in Boston alleges that the suspects hacked into the wireless computer networks of retailers including TJX Cos., BJ’s Wholesale Club, OfficeMax, Boston Market, Barnes & Noble, Sports Authority, Forever 21 and DSW and set up programs that captured card numbers, passwords and account information.
“They used sophisticated computer hacking techniques that would allow them to breach security systems and install programs that gathered enormous quantities of personal financial data, which they then allegedly either sold to others or used themselves,” Attorney General Michael Mukasey said at a news conference. “And in total, they caused widespread losses by banks, retailers, and consumers.”
MasterCard, one of the largest credit card companies, has been working to combat this problem for years, according to officials.
“MasterCard is always working to ensure the integrity of the global payments system in an ever-changing environment,” said spokesman Chris Monteiro. “We work together among merchants, banks, law enforcement professionals and others to prevent fraud as well as investigate, evaluate and resolve events and issues that arise and threaten the payments environment. Security is the shared responsibility of everyone involved in the payments system, and MasterCard helps everyone do their part.”
Each year, millions of Americans have their identity stolen. The Federal Trade Commission, the nation’s consumer protection agency, recommends a three-pronged plan to combat identity theft, deter identity thieves by safeguarding information, detect suspicious activity by routinely monitoring financial accounts and billing statements and defend against identity theft as soon as a problem is suspected.
According to the FTC, anyone who suspects they have been a victim of identity theft or fraud should immediately contact all companies involved to correct their records. The initial contact should be made by phone, with a follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.
Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter, watching for other signs of fraudulent activity.
“Rather than simply reacting to online fraud and identity theft after it has occurred, MasterCard and its partners work to detect online scams in real-time as they proliferate across the Internet, collaborating with law enforcement as appropriate to dismantle the online tools and venues that are used for online credit card fraud,” Monteiro said.
To learn more about identity theft, visit www.mastercard.com/us/personal/en/learningcenter/stayingsecure/pfprotectyourself.html
and www.mastercard.com/us/personal/en/learningcenter/stayingsecure/emailfraud.html
