ScamSafe

Check 21: Check Clearing for the 21st Century

Details about the newly effective check clearing system in the U.S.

The Check Clearing for the 21st Century Act (Check 21) was signed into law on October 28, 2003, and became effective on October 28, 2004. Check 21 is designed to foster innovation in the payments system and to enhance its efficiency by reducing some of the legal impediments to check truncation. The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which permits banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks. A substitute check is the legal equivalent of the original check and includes all the information contained on the original check.

For more info, see the Federal Reserve Board's Consumer Guide to Check 21 and Substitute Checks.

Firms hit hard by identity theft [Boston,MA]

Government agencies and private corporations are also vulnerable to identity theft, and they often suffer greater losses than the client whose personal information was stolen, authorities said yesterday.

"The institutions are being duped just like you would be if your information was stolen," said Ken Jones, inspector in charge for the regional Postal Inspection Service, which investigates instances of mail fraud leading to identity theft.

When credit card or bank account numbers are stolen from corporations such as credit agencies, it is often the institutions, and not private citizens, who are hit the hardest, Jones said.

FULL STORY from Boston Globe [pop up]

VeriSign Announces Anti-Phishing Solution to Protect Against Rapidly Rising Identity

This service doesn't really amount to much, in our opinion. They threw together a few things they already offer and add in some consulting. --ScamSafe Editor

MOUNTAIN VIEW, Calif., June 28 /PRNewswire-FirstCall/ -- VeriSign, Inc., (Nasdaq: VRSN - News), the leading provider of critical infrastructure services for the Internet and telecommunications networks, today announced the launch of its Anti-Phishing Solution, a comprehensive security solution to protect against the increasingly prevalent security and fraud attack known as phishing. VeriSign's Anti-Phishing Solution protects enterprises through a five-tiered solution that helps prevent, detect and respond to attacks, thereby mitigating and eliminating identity theft and email fraud attempts.

FULL STORY from Yahoo! [pop up]

How phone companies enable fraud

ScamSafe has been reporting on a work-at-home check cashing scam (operating under various names, i.e. Xian Energy, Nextdayfinance, PureXian.biz). In the past we commented on how job web sites post ads for these thieves and thus enable their crimes--even after being notified that these are illegal operations. Another culprit is the phone companies which provide the telephone and fax lines. Dick Hambrice, a victim of this crime ring, has been doggedly trying to shut them down by contacting job boards, web hosters and telephone companies.

Dick reports, "The Compton phones (for Nextdayfinance) belong to PacWest Telecom. I emailed them a couple of weeks ago letting them know about the criminal enterprise using them. Their reply was 'This information is being sent to our customer who the number is leased out to. They will investigate and take the appropriate actions. Thank you, Network Operations Security.'" Dick continues, "I called the numbers this morning and they are still working."

It appears that PacWest is asleep at the wheel, while thousands of consumers are being ripped off by this international crime ring. Shame on PacWest--and whichever company is leasing their lines.

To contact PacWest Telecom, contact Karie Kaufmann, Public Relations, at (209) 926-3168 or kkaufman@pacwest.com.

Reporting check cashing & other Internet scams

ScamSafe has been contacted by a number of victims of the check cashing work-at-home scams asking what they should do. So we contacted the FBI and this is what we were told.

"Anyone who responded to these fraudulent schemes--whether you lost money or not--should file an online report with the Internet Crime Complaint Center, a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C). Your report will be analyzed and disseminated to the appropriate federal, state and local law enforcement to help ensure a coordinated investigation. Anyone who lost money should also report the matter to law enforcement, whether it be the local FBI office* or Police Department."

Also, if you lost money, wired money or gave out your account number, you should contact the fraud department of your bank and probably close the account immediately. Although checking or savings accounts don't have the same protections against fraud as credit cards, your bank may provide recompense for lost funds--it's worth asking. And you'll need a police report to back up your claims.

* To find your local FBI field office go here: www.fbi.gov/contact/fo/fo.htm

Reporting check cashing & other Internet scams

ScamSafe has been contacted by a number of victims of the check cashing work-at-home scams asking what they should do. So we contacted the FBI and this is what we were told.

"Anyone who responded to these fraudulent schemes--whether you lost money or not--should file an online report with the Internet Crime Complaint Center, a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C). Your report will be analyzed and disseminated to the appropriate federal, state and local law enforcement to help ensure a coordinated investigation. Anyone who lost money should also report the matter to law enforcement, whether it be the local FBI office* or Police Department."

Also, if you lost money, wired money or gave out your account number, you should contact the fraud department of your bank and probably close the account immediately. Although checking or savings accounts don't have the same protections against fraud as credit cards, your bank may provide recompense for lost funds--it's worth asking. And you'll need a police report to back up your claims.

* To find your local FBI field office go here: www.fbi.gov/contact/fo/fo.htm

One year later, California identity theft law remains low-key

The regulation hasn't spurred predicted lawsuits but has increased awareness

Nearly a year after California's landmark SB 1386 identity theft law went into effect, there has been none of the troublesome litigation that had been predicted to come in its wake.
But the law has raised overall corporate awareness of the need to have strong privacy protections in place, legal experts said last week.

SB 1386, which went into effect July 1 last year, requires companies that do business with California residents to inform customers when their names, in combination with personally identifiable information, have been accessed by an unauthorized person (see story). Some legal experts had expected the law to open a floodgate of trouble, especially because of the ambiguous nature of some of its provisions.

For instance, the law calls for companies to encrypt data but doesn't specify what level of encryption is considered legally acceptable. Similarly, the law isn't specific about the obligations of the IT organization, mandating only that companies notify customers when "it is reasonably believed" that personal information has been compromised.

FULL STORY from COMPUTERWORLD [pop up]

One year later, California identity theft law remains low-key

The regulation hasn't spurred predicted lawsuits but has increased awareness

Nearly a year after California's landmark SB 1386 identity theft law went into effect, there has been none of the troublesome litigation that had been predicted to come in its wake.
But the law has raised overall corporate awareness of the need to have strong privacy protections in place, legal experts said last week.

SB 1386, which went into effect July 1 last year, requires companies that do business with California residents to inform customers when their names, in combination with personally identifiable information, have been accessed by an unauthorized person (see story). Some legal experts had expected the law to open a floodgate of trouble, especially because of the ambiguous nature of some of its provisions.

For instance, the law calls for companies to encrypt data but doesn't specify what level of encryption is considered legally acceptable. Similarly, the law isn't specific about the obligations of the IT organization, mandating only that companies notify customers when "it is reasonably believed" that personal information has been compromised.

FULL STORY from COMPUTERWORLD [pop up]

Whitepaper on Liberty Protocol and Identity Theft

Liberty Alliance White Paper Outlines Federated Identity's Ability to Reduce Identity Theft

San Francisco, CA, USA. February 23, 2004. RSA Security Conference.

The Liberty Alliance announced the availability of a white paper calling out the growing problem of identity theft and detailing ways in which federated identity and Liberty's open standard can reduce online identity theft, its frequency and its potential impact on consumers. The white paper, The Liberty Alliance Protocol and Identity Theft White paper, also presents deployment recommendations for federated identity as a means to further mitigate risks.

Liberty's federated identity model, which distributes identity information across various trusted parties, is inherently more secure than a centralized model where all information is accessible in one location. If a centralized database is breached, the entire content of that database can be a goldmine for hackers and thieves. In addition to the federation safeguards, Liberty's framework also incorporates unique privacy controls and state-of-the-art security mechanisms to protect users and businesses.

Further details and deployment considerations for how federated identity and Liberty's open standard can alleviate identity theft can be found at: http://www.projectliberty.org/resources/whitepapers.

Whitepaper on Liberty Protocol and Identity Theft

Liberty Alliance White Paper Outlines Federated Identity's Ability to Reduce Identity Theft

San Francisco, CA, USA. February 23, 2004. RSA Security Conference.

The Liberty Alliance announced the availability of a white paper calling out the growing problem of identity theft and detailing ways in which federated identity and Liberty's open standard can reduce online identity theft, its frequency and its potential impact on consumers. The white paper, The Liberty Alliance Protocol and Identity Theft White paper, also presents deployment recommendations for federated identity as a means to further mitigate risks.

Liberty's federated identity model, which distributes identity information across various trusted parties, is inherently more secure than a centralized model where all information is accessible in one location. If a centralized database is breached, the entire content of that database can be a goldmine for hackers and thieves. In addition to the federation safeguards, Liberty's framework also incorporates unique privacy controls and state-of-the-art security mechanisms to protect users and businesses.

Further details and deployment considerations for how federated identity and Liberty's open standard can alleviate identity theft can be found at: http://www.projectliberty.org/resources/whitepapers.

Identity Theft Forum to Reveal Best Practices for Financial Services Industry

NEW YORK, April 14 /PRNewswire/ -- In the minds of consumer advocacy groups, regulators and legislators, identity theft and account takeover has become one of the dominant concerns for the financial services industry. Banks and credit card companies have much to gain by taking the lead in the development of law and policy relating to identity theft, as they collectively bear the greatest financial burdens resulting from this type of fraud.
In response to this rapidly growing industry need, Strategic Research Institute presents Identity Theft in Financial Services (www.srinstitute.com/cg115), which will be held June 30 - July 1 at the Metropolitan in New York City.

Major banks and credit card companies will discuss policy, government/commercial cooperation, best practices, and technology solutions with top industry regulators and organizations.

For complete conference details and to register, please visit www.srinstitute.com/cg115 or call (888) 666-8514.

For further information, contact Cyrus Wolfe at cwolf@srinstitute.com or (212) 967-0095, ext. 255.

FULL STORY from Yahoo! [pop up]

Identity Theft Forum to Reveal Best Practices for Financial Services Industry

NEW YORK, April 14 /PRNewswire/ -- In the minds of consumer advocacy groups, regulators and legislators, identity theft and account takeover has become one of the dominant concerns for the financial services industry. Banks and credit card companies have much to gain by taking the lead in the development of law and policy relating to identity theft, as they collectively bear the greatest financial burdens resulting from this type of fraud.
In response to this rapidly growing industry need, Strategic Research Institute presents Identity Theft in Financial Services (www.srinstitute.com/cg115), which will be held June 30 - July 1 at the Metropolitan in New York City.

Major banks and credit card companies will discuss policy, government/commercial cooperation, best practices, and technology solutions with top industry regulators and organizations.

For complete conference details and to register, please visit www.srinstitute.com/cg115 or call (888) 666-8514.

For further information, contact Cyrus Wolfe at cwolf@srinstitute.com or (212) 967-0095, ext. 255.

FULL STORY from Yahoo! [pop up]

How do I report stolen or lost checks?

When a consumer has lost or stolen checks, check services companies can help. They help you to protect your good name while also protecting those checks from being used at thousands of financial institutions and businesses.

Here's how it works. When a consumer has lost or stolen checks, you may report this information to a check service such as TeleCheck. TeleCheck enters this information into the company's extensive database. This helps prevent the checks from being used at any TeleCheck financial institution or business which protects the consumer and local businesses. This results in financial institutions not having to process, return or handle large numbers of forgery affidavits. Consumers who call TeleCheck directly are reminded to immediately report the lost or stolen checks to their financial institution and to their local police department.

The TeleCheck toll-free hotline for reporting lost and stolen checks is 1-800-366-2425.

Businesses can contact the National Check Fraud Hotline at (843) 571-2143.

Other check services companies include:

CheckRite (800) 766-2748
ChexSystems (800) 428-9623
CrossCheck (800) 552-1900
SCAN (800) 262-7771
Equifax Check Systems (800) 437-5120
International Check Services (800) 526-5380

How do I report stolen or lost checks?

When a consumer has lost or stolen checks, check services companies can help. They help you to protect your good name while also protecting those checks from being used at thousands of financial institutions and businesses.

Here's how it works. When a consumer has lost or stolen checks, you may report this information to a check service such as TeleCheck. TeleCheck enters this information into the company's extensive database. This helps prevent the checks from being used at any TeleCheck financial institution or business which protects the consumer and local businesses. This results in financial institutions not having to process, return or handle large numbers of forgery affidavits. Consumers who call TeleCheck directly are reminded to immediately report the lost or stolen checks to their financial institution and to their local police department.

The TeleCheck toll-free hotline for reporting lost and stolen checks is 1-800-366-2425.

Businesses can contact the National Check Fraud Hotline at (843) 571-2143.

Other check services companies include:

CheckRite (800) 766-2748
ChexSystems (800) 428-9623
CrossCheck (800) 552-1900
SCAN (800) 262-7771
Equifax Check Systems (800) 437-5120
International Check Services (800) 526-5380

Pick Up, Deliver and Destroy [DENVER,CO]

DENVER, April 7 /PRNewswire/ -- The growing epidemic of identity theft and corporate espionage has made the destruction of personal and company information critical to every home and business in America.

DataGuard USA, LLC is responding to this increasing need by introducing Ship 'n' Shred, a one-of-a kind document destruction service allowing businesses and individuals nationwide to package confidential information, ship it and destroy it securely.

FULL STORY from PR NewsWire [pop up]

Pick Up, Deliver and Destroy [DENVER,CO]

DENVER, April 7 /PRNewswire/ -- The growing epidemic of identity theft and corporate espionage has made the destruction of personal and company information critical to every home and business in America.

DataGuard USA, LLC is responding to this increasing need by introducing Ship 'n' Shred, a one-of-a kind document destruction service allowing businesses and individuals nationwide to package confidential information, ship it and destroy it securely.

FULL STORY from PR NewsWire [pop up]

Analyst Identifies New Ways to Reduce Risk of ID Theft

Businesses and consumers can help protect themselves from identity theft by moving bills, statements and payments online, says James Van Dyke, Founder and Principal Analyst, Javelin Strategy & Research.

SAN FRANCISCO, April 5 /PRNewswire/ -- Billions of dollars -- that's what identity theft costs U.S. businesses and consumers each year. New research clearly demonstrates that online banking, bill payment and statement viewing is one of the best ways businesses and their customers can protect themselves against identity theft. Yet, consumers still believe incorrectly that online financial transactions increase their risk of fraud. This notion is incorrect.
Based on findings from Federal Trade Commission and United States Postal Service reports, Javelin Strategy & Research found that two popular kinds of identity theft, fraudulent opening of new accounts and unauthorized use of existing accounts, are frequently traced to theft of paper documents in residential mailboxes and other locations, including incoming statements, new account solicitations and outgoing checks. But by changing bill presentment policies by offering electronic bills and the ability to suppress paper, banks and billers can significantly reduce fraud due to ID theft.

Research analysis by James Van Dyke, founder and principal analyst of Javelin Strategy & Research, and author of the new report, discovered that businesses can quickly implement the following four steps to help reduce fraud and break down consumer misperceptions:

-- Educate customers - Customers who view their statements online are
more likely to quickly identify potentially fraudulent activities on
an existing account and alert businesses to it, allowing restoration
and resolution to begin. Consumer education on the benefits of viewing
statements and paying bills online can result in savings both from
paper suppression and early fraud detection, plus promote stronger
customer adoption and retention.
-- Listen to customers' needs and act - The new Javelin data suggests
that financial institutions and billers should enable online
statements at a customer's request and offer the option to turn off
traditional paper mail for sensitive documents.
-- Online consumers are the best detection of online identity theft - The
Federal Trade Commission's October 2003 Identity Theft Survey Report
found that 52% of all identity fraud was first discovered by the
victim, often by reviewing traditional paper statements. However, by
the time paper statements arrive to reveal a fraud incident, more time
is likely to have passed, which in turn increases the value of
potential fraud and makes prosecution more difficult for the financial
institution or biller. Online consumers check accounts nearly four
times per month, as compared to one time much later in the month for
those who rely on paper statements.
-- Proactive account alerts and activity summaries - Use of active e-mail
alerts, consolidated summaries of balances and transactional activity
can significantly reduce fraud.

FULL STORY from PRNewswire [pop up]

Analyst Identifies New Ways to Reduce Risk of ID Theft

Businesses and consumers can help protect themselves from identity theft by moving bills, statements and payments online, says James Van Dyke, Founder and Principal Analyst, Javelin Strategy & Research.

SAN FRANCISCO, April 5 /PRNewswire/ -- Billions of dollars -- that's what identity theft costs U.S. businesses and consumers each year. New research clearly demonstrates that online banking, bill payment and statement viewing is one of the best ways businesses and their customers can protect themselves against identity theft. Yet, consumers still believe incorrectly that online financial transactions increase their risk of fraud. This notion is incorrect.
Based on findings from Federal Trade Commission and United States Postal Service reports, Javelin Strategy & Research found that two popular kinds of identity theft, fraudulent opening of new accounts and unauthorized use of existing accounts, are frequently traced to theft of paper documents in residential mailboxes and other locations, including incoming statements, new account solicitations and outgoing checks. But by changing bill presentment policies by offering electronic bills and the ability to suppress paper, banks and billers can significantly reduce fraud due to ID theft.

Research analysis by James Van Dyke, founder and principal analyst of Javelin Strategy & Research, and author of the new report, discovered that businesses can quickly implement the following four steps to help reduce fraud and break down consumer misperceptions:

-- Educate customers - Customers who view their statements online are
more likely to quickly identify potentially fraudulent activities on
an existing account and alert businesses to it, allowing restoration
and resolution to begin. Consumer education on the benefits of viewing
statements and paying bills online can result in savings both from
paper suppression and early fraud detection, plus promote stronger
customer adoption and retention.
-- Listen to customers' needs and act - The new Javelin data suggests
that financial institutions and billers should enable online
statements at a customer's request and offer the option to turn off
traditional paper mail for sensitive documents.
-- Online consumers are the best detection of online identity theft - The
Federal Trade Commission's October 2003 Identity Theft Survey Report
found that 52% of all identity fraud was first discovered by the
victim, often by reviewing traditional paper statements. However, by
the time paper statements arrive to reveal a fraud incident, more time
is likely to have passed, which in turn increases the value of
potential fraud and makes prosecution more difficult for the financial
institution or biller. Online consumers check accounts nearly four
times per month, as compared to one time much later in the month for
those who rely on paper statements.
-- Proactive account alerts and activity summaries - Use of active e-mail
alerts, consolidated summaries of balances and transactional activity
can significantly reduce fraud.

FULL STORY from PRNewswire [pop up]

''Identity Theft'' Tops List of Telecom [PARSIPPANY, N.J]

PARSIPPANY, N.J.--(BUSINESS WIRE)--March 31, 2004--A new survey of the country's leading telecommunications carriers released today reveals that "identity theft" is the leading type of fraud afflicting the industry. In response, major carriers are joining to fight the problem in an industry-wide campaign.

The Telecommunications Risk Management Association (TRMA), a trade organization created by the telecommunications industry to reduce risk and bad debt, sponsored the study. Most of the major U.S. telecom carriers are members of TRMA and a majority participated in this recent survey. TRMA periodically conducts member surveys on important industry issues.

FULL STORY from Business Wire [pop up]

''Identity Theft'' Tops List of Telecom [PARSIPPANY, N.J]

PARSIPPANY, N.J.--(BUSINESS WIRE)--March 31, 2004--A new survey of the country's leading telecommunications carriers released today reveals that "identity theft" is the leading type of fraud afflicting the industry. In response, major carriers are joining to fight the problem in an industry-wide campaign.

The Telecommunications Risk Management Association (TRMA), a trade organization created by the telecommunications industry to reduce risk and bad debt, sponsored the study. Most of the major U.S. telecom carriers are members of TRMA and a majority participated in this recent survey. TRMA periodically conducts member surveys on important industry issues.

FULL STORY from Business Wire [pop up]

How one offshore worker sent tremor through medical system [San Francisco, CA]

Outsourced UCSF notes highlight privacy risk

Lubna Baloch sat in her office in the sprawling Pakistani commercial center of Karachi and gazed at the e-mail she'd composed. She tried to imagine the reaction half a world away when the people at UC San Francisco Medical Center saw what she'd written.

The famous U.S. hospital would have to take her seriously, Baloch knew, when it realized she was prepared to post its confidential patient records on the Internet. That is, unless UCSF helped her get the money she was owed from the mysterious Tom Spires, her link in a long chain of medical transcription subcontractors.

FULL STORY from sfgate.com [pop up]

How one offshore worker sent tremor through medical system [San Francisco, CA]

Outsourced UCSF notes highlight privacy risk

Lubna Baloch sat in her office in the sprawling Pakistani commercial center of Karachi and gazed at the e-mail she'd composed. She tried to imagine the reaction half a world away when the people at UC San Francisco Medical Center saw what she'd written.

The famous U.S. hospital would have to take her seriously, Baloch knew, when it realized she was prepared to post its confidential patient records on the Internet. That is, unless UCSF helped her get the money she was owed from the mysterious Tom Spires, her link in a long chain of medical transcription subcontractors.

FULL STORY from sfgate.com [pop up]

Phishing for Identity Information

Phishing -- a relatively new obsession among Internet scammers -- employs e-mail lures to "fish" for identity information, such as passwords and financial data. It has become more prevalent, and more dangerous, since EarthLink first warned Web users about theft e-mail scams in July, 2003.

Armed with their "phished" information, scammers commit identity theft and fraud, explains Dan Meyer, director of communications for the Anti-Phishing Working Group and director of product marketing at Tumbleweed, a corporate anti-spam vendor.

FULL STORY from Yahoo!/www.enterprise-security-today.com [pop up]

Phishing for Identity Information

Phishing -- a relatively new obsession among Internet scammers -- employs e-mail lures to "fish" for identity information, such as passwords and financial data. It has become more prevalent, and more dangerous, since EarthLink first warned Web users about theft e-mail scams in July, 2003.

Armed with their "phished" information, scammers commit identity theft and fraud, explains Dan Meyer, director of communications for the Anti-Phishing Working Group and director of product marketing at Tumbleweed, a corporate anti-spam vendor.

FULL STORY from Yahoo!/www.enterprise-security-today.com [pop up]

Stopping data, identity theft via offshoring [New Delhi,India]

Companies depend on information to operate their business processes. Much of this information is stored and processed electronically, and is exchanged with business partners over computer networks, many of which are public.

The security of this information --or data -- may be at risk owing to vulnerabilities, with potentially serious consequences to the business of a company or individual.

FULL STORY from Business Standard [pop up]

Stopping data, identity theft via offshoring [New Delhi,India]

Companies depend on information to operate their business processes. Much of this information is stored and processed electronically, and is exchanged with business partners over computer networks, many of which are public.

The security of this information --or data -- may be at risk owing to vulnerabilities, with potentially serious consequences to the business of a company or individual.

FULL STORY from Business Standard [pop up]