Fraud artists looking to assume your identity
Many ways to do it. Scams include obtaining bogus mortgages
December 4, 2007
Montreal Gazette
(CanWest News Service)
By Jeff Buckstein
Lynn Correia was online, conducting her regular monthly Visa statement review in the spring of 2006 when she suddenly noticed items from a grocery, liquor and retail store near Sutton, Ont. - transactions the Toronto-based chartered accountant knew she couldn't possibly have made.
Although the bogus purchases were for relatively small amounts, Correia didn't wait for her statement to be mailed out; she immediately called the bank that issued her Visa. They, in turn, instantly cancelled her old card and issued a new one, along with an amended statement.
"I feel fortunate," said Correia, who conducts forensic investigations and knows things could have been much worse. "I was only a victim of credit card theft (and) ... didn't suffer any monetary loss."
Still, she had to spend about five hours locating and informing potential payees - including companies entitled to pre-authorized payments from her old account - that the number had been changed.
Experts point out, however, that is a fraction of what others have needed to do in the wake of what is often called identify theft, but is more accurately the false assumption of a victim's identity by an impersonator.
"Where you know all that's happened is your credit card is missing, and there have been some errant charges on your credit card; you cancel it and move on. But rarely is that the scenario. What if someone pieced together your identity?" asks Brian Lapidus , chief operating officer in the fraud solution practice of Kroll Inc., a global firm that provides investigative, accounting and other services.
Court tosses stolen data lawsuit
Privacy - A judge says Providence has done enough for the 365,000 affected people
November 9, 2007
The Oregonian
By Joe Rojas-Burke
A Multnomah County judge has tossed out a proposed class-action lawsuit seeking compensation for tens of thousands of people whose confidential records were stolen from Providence Health & Services in Oregon.
Judge Marilyn Litzenberger struck the claims for damages, concluding that the nonprofit hospital corporation had already reasonably compensated the affected patients and employees and corrected the security problems. The parties received the opinion Thursday.
The data theft -- the largest recorded in Oregon -- occurred Jan. 1, 2006, when a car prowler broke into a van parked overnight at the Milwaukie home of a Providence employee who had left computer disks and data tapes in the van. The records, some going back 20 years, contained sensitive data including Social Security numbers and medical information for 365,000 people. The records were stored without protective encryption.
The ensuing uproar triggered a state investigation and helped convince lawmakers to enact stronger privacy protections in Oregon.
Admitting no violation of law, Providence agreed last year to pay more than $95,000 to the state Department of Justice to cover the expenses of the state's investigation into the security breach.
State watching response to Blockbuster store identity breach
October 25, 2007
Sarasota Herald-Tribune
By Todd Ruger
SARASOTA COUNTY -- A box of Blockbuster video store forms with credit card and Social Security information that was dumped in a trash container last week is now under Sarasota County Sheriff's Office protection.
The Florida Attorney General's Office is requesting copies of the approximately 400 membership forms and employment applications to make sure Blockbuster notifies anyone whose information might have been compromised.
And Blockbuster has sent a memo to all of its stores -- about 4,000 -- reinforcing the company policy requiring that all documents generated in the store be destroyed when no longer kept on file.
"Our stores have shredders, and we have procedures in place to protect our customer information," Blockbuster corporate spokesman Randy Hargrove said Wednesday. "What's been reported on this was an isolated incident."
While law enforcement campaigns have educated individuals about the need to shred documents with financial information to protect their identity, businesses with that information are not always careful.
From Security Expert Kroll, 10 Ideas for Battening Down the Hatches
October 2, 2007
Baseline Magazine
By John McCormick
The theft of, loss or, or attacks on information continues to be a major concern for corporations. A new report from security firm Kroll finds that 20% of corporate executives feel highly vulnerable when it comes to their critical data and 30% believe the complexity of today's information technology increases their fraud risks.
Kroll's Global Fraud Report was based on a survey of 900 senior executives that was conducted by the Economist Intelligence Unit, a leading research company.
A big problem, according to Alan Brill, a senior managing director at Kroll who specializes in communication security and technology crime response, is the complex nature of today's information systems.
For instance, he says, companies— including retailers, travel companies and financial firms—continually add features to their systems that allow their customers to interact, primarily through the Internet, with their back-end databases. This creates an extremely high volume of transactions against those data stores. And these systems, he says, "are not always developed with the security required for that level of sophistication."
The Tech Scene: As Data Breaches Increase, Questions on Firms' Duties
August 31, 2007
American Banker
By Daniel Wolfe
As data breaches have proliferated, the companies that suffered the data losses have faced more scrutiny.
One such company, International Business Machines Corp., is drawing both praise and criticism for its response to a data breach in February.
IBM hired Kroll Inc., a Marsh & McLennan Cos. Inc. unit, to provide fraud monitoring and identity restoration after several of its data tapes went missing.
The service IBM chose offers credit monitoring but not a credit report, a staple of the credit bureaus' top-selling services. Though Kroll's service, in addressing nonfinancial identity theft, offers more than one can get through credit monitoring alone, the absence of a credit report has been noticed by those affected by the exposure.
How the Pros Protect Their Identity
July 1, 2007
The Wall Street Journal
By Andrea Coombes
Ever wonder how the tech experts keep themselves safe from identity theft and other fraud?
We asked various experts - tech-product engineers, analysts, even a former identity thief - about the problem and here's what they do to stay safe, both online and off:
Why You Should Spy on Yourself
April 21, 2007
The Wall Street Journal
By M.P. McQueen
More people are running background checks. On themselves.
Used to be, the best way to pry into someone's past was to hire a gumshoe. However, today everyone from prospective employers to identity thieves—and even first dates—can do surprisingly sophisticated searches, looking for skeletons in your closet.
Schools, too, are dialing up their snooping. Wharton and Columbia Business schools are using investigators to weed out fibs and padded resumes. Harvard recently added a former professional screener to its undergraduate admissions staff.
Recently, "one woman had 250 W-4s submitted to the IRS under her name and Social Security number," says Troy Allen of Kroll Fraud Solutions, a Marsh & McLennan Cos. unit that helps victims of identity theft restore their good names.
The Admissions Police
April 6, 2007
The Wall Street Journal
By Jon Weinbach
Before mailing out acceptance and rejection letters over the past week, thousands of colleges and graduate schools conducted their usual reviews of test scores, transcripts and essays. But less publicly, admissions officers focused on something else: police databases, plagiarism checks and reports by private-investigators.
There's a new age of vigilance in academia. Spooked by incidents including guidance-counselor fraud in Los Angeles, blatant plagiarism at MIT and campus crime in North Carolina, colleges and graduate schools are shoring up their admissions process.
"Fake degrees, grade inflation, employment titles or dates that aren't true -- we've seen it all," says Kroll's Brian Lapidus , who oversees corporate security firm Kroll's Global Academic Verifications division which handles checks on accepted students for about 20 business schools, including Wharton and Columbia.
ID Thefts Prevalent at Work
April 5, 2007
Human Resources Executive Online
By Barbara Worthington
More than half (51 percent) of all identity thefts occur in the workplace, according to a recent study by Michigan State University. But organizations are becoming more aware of the problem, says Troy Allen , chief fraud solutions officer in Nashville, Tenn.-based Kroll Fraud Solutions.
"Just a few years ago a stolen laptop was viewed as a loss of hardware," Allen says. "Today, organizations and individuals are acutely more aware that the sensitive data a laptop contains is of different, greater value."
He says HR executives must "stop thinking about data protection as solely an IT responsibility." Practitioners need to "examine and reinforce physical security practices, both brick and virtual operations."
Corporate Data Security Challenges | How Companies Can Protect Against Identity Theft
March, 2007
About.com Human Resources Guide
By
Troy Allen
Given the amount of sensitive information their personnel files house, Human Resource departments in the corporate landscape have unique challenges. And, awareness of data breach methods and the ways to thwart an identity theft attack are key to reducing the depatment's exposure.
Living the low life on your identity: From groceries to toilet paper, criminals now rely on ID theft for basic needs
February 12, 2007
Dow Jones MarketWatch
By Andrea Coombes
Summary: In some twisted way, it makes sense when a criminal steals your identity to rip you off for thousands of dollars. You might call that normal crook behavior. But these days identity thieves, who now range from far-flung organized crime rings to local drug addicts supporting their habit, are also using your identity for the basics, such as groceries and fast food.
“One of the big misconceptions is that the thieves want to steal a credit card to run it up and disappear, but thieves today need your identity to survive. They want to live under your name,” said Troy Allen , the Nashville-based Chief Operating Officer for Kroll’s Fraud Solutions. Kroll is based in New York.
Special Report: Identity Theft: Your fear is high, but the threat is lower
February 4, 2007
Charlottesville Daily Progress
By Jeffrey Kelley
Summary: An organization's laptop computer is stolen. Thousands of consumers are notified. What are the chances you will be harmed?
Richard Barton Campbell doesn't want to downplay the seriousness of identity theft or the gravity of a company losing the personal records of thousands of consumers.ID theft "is a nightmare when it happens," said Campbell, the Virginia deputy attorney general who specializes in prosecuting technology-related crimes. "It's just that it doesn't happen every time a database is breached."
Yet the fear arises each time an organization discloses the loss of employee or consumer data -- Social Security, credit-card, bank account and driver's license numbers, home addresses and mother's maiden names. But data leaks aren't necessarily intentional, and people are still much more likely to be harmed should they lose a wallet or checkbook. Experts, surveys and researchers say most theft is committed by friends and family, not hackers and scammers.
Data Leaks Can Spark Many Liability Issues
January 10, 2007
INVESTOR'S BUSINESS DAILY
By Donna Howell
Summary: Data breaches have happened at many places - universities, companies big and small and their service providers, the military, the government. Several years ago, these kinds of problems spurred a new line of business for risk consulting firm Kroll, a unit of Marsh & McLennan. ( MMC ) Troy Allen , Chief Operating Officer of Kroll Fraud Solutions, says there is a lot that businesses and consumers don't realize about the true nature of identity theft.
More Federal Agencies Report Missing Laptops
January 10, 2007
WTOP Radio
By Mark Seagraves
Summary: According to documents obtained by WTOP through a Freedom of Information Act request, the DOD is not alone. Many of other federal agencies have reported similar or even higher numbers.
Last year, WTOP was first to report hundreds of missing laptops at the U.S. Departments of Transportation and Commerce that put tens of thousands of Americans at risk of identity theft.
Troy Allen , Chief Operating Officer with Kroll Fraud Solutions, a security and risk management firm, says, "This is a much much larger issue than anyone is giving it credit for."
An excerpt of this interview aired on CBS radio, which services more than 5,000 radio stations around the world, January 10, 2007
Full Interview (MP3)
Background Checks Are Front and Center
January 1, 2007
BusinessWeek.com
by Francesca Di Meglio
Summary: Many job applicants are finding that they must submit to a background check, something that's becoming more common throughout the business world. And while few applicants out-and-out lie on their entry forms, the occasional misstep does get caught. And often, the one who has overseen the catching is Brian Lapidus , vice-president for strategic development at the background screening division of risk-consulting firm Kroll in Nashville.
Data Leaks Can Spark Many Liability Issues
December 31, 2006
Austin Stateman
By Bob Keefe
Summary: Since thousands of consumers sensitive information was stolen from Alpharetta-based ChoicePoint Inc. in February 2005, the number and the cost of data breaches has continued to grow. Much of the proposed legislation designed to protect consumers is stuck in limbo. And some security experts say that data breaches that result in leaks of sensitive personal information will continue to rise in 2007 and beyond.
"I do believe we'll continue to see an increase in breaches ... not a decrease," said Troy Allen , Chief Operating Officer of Kroll Inc., a consulting firm that specializes in corporate risk management.
Don't Worry About Hackers (as Much as Other Problems)
December 15, 2006
IT BUSINESS EDGE | Fortifying Network Security
By: Carl Weinschenk
Interview with
Troy Allen
, Chief Operating Officer, Kroll Fraud Solutions
Summary:
Question: You say that actual hacks aren't an organization's biggest worry. Can you explain?
Allen: Most organizations view their [major] exposure as network or firewall issues. That's not the case. Risk managers and CIOs have concentrated historically on that side of the business to reduce exposure, but are missing [other things] that are much more important and have bigger risks and that also still have implications for IT.
Medical Identity Theft: Serious Pain
December 8, 2006
Baseline: The Project Management Center
By Deborah Gage and Kim S. Nash
Summary: Providence Health & Services, a health-care service provider, lost information on 365,000 patients--after 10 backup tapes and disks were stolen from an employee’s minivan. Now, 12 months and $7 million later, the company remains mired in the aftermath and has reached out to Kroll Fraud Solutions for help repairing its customers’ lives. Here’s why
The Identity Theft Epidemic: What The Experts Aren't Telling You
Jonathan Kraft
Ezinearticles.com
Summary: Having Identity Theft protection with highly qualified companies like Kroll is like walking down that street, knowing that you have a highly trained personal bodyguard watching your back and walking by your side.
Be on alert for Schemes that don’t allow your business to become a target –watch out for rip offs and ID theft
September 4, 2006
South Florida
Sun-Sentinel
By Ian Katz
Summary: Last year a federal court in New Jersey found that NorVergence had falsely represented that consumers would receive discounted telecom services and it gave the Federal Trade Commission a $181.7 million default judgment. NorVergence has filed for bankruptcy and gone out of business. Small entrepreneurs are particularly vulnerable to schemes like the NorVergence deal because they often don't have enough time or workers to adequately investigate business proposals. They might also lack the resources to file expensive lawsuits when they think they have been wronged. Article offers tips for small businesses on the types of fraud present today and how to avoid them.
Kroll COO: ‘How Businesses Can Thwart Identity Thieves’
September 2006
Sky Radio/American Airlines
Summary: Kroll Operating Officer Troy Allen , discusses the importance of data security and dispenses tips for businesses to reduce exposure on to identity theft on Sky Radio.
Security Gap at TIAA-CREF Was Huge, Critics Say
Aug 11 2006
Chronicle of Higher Education
By Andrea L. Foster
Summary: In a recent incident, TIAA-CREF discovered that a temporary employee was a convict who used a false identity to gain employment. Since that breach, TIAA-CREF has revamped its security procedures. And although the company acknowledges that the employee did download confidential data to her laptop, there is no evidence that she used the information for illegal purposes, such as identity theft. Still, critics say TIAA- CREF is hiding from its clients the extent of the confidential data that the employee may have seen and walked away with.
Employers Offer to Help Fight Identification Theft
June 1, 2006
The Wall Street Journal
By M.P. McQueen
Summary:
As identity theft continues to claim millions of victims, a growing number of employers are offering to help affected workers pick up the pieces. Companies including drugstore chain Rite Aid Corp., publisher Reed Elsevier PLC, and Qwest Communications International Inc. have recently been signing up for identity-theft resolution services to offer their employees as a workplace benefit.
Experts and Speakers
Kroll Fraud Solutions employs globally recognized experts with extraordinary knowledge of the many physical, procedural and electronic security gaps through which confidential data is breached, as well as the criminal landscape where stolen identities are bought, sold and used fraudulently.
Your Identity Is Your Business. Protecting It Is Ours .
