TAX TIME IS TIME TO BE EVEN MORE WARY OF IDENTITY THEFT

Posted on by Judith

It is the time of year where a tremendous amount of your personal information is coming in the mail. Just one tax document has your name, address, and social security number. To protect yourself you need to make sure nothing gets lost. If you have moved make sure you notify all the financial institutions you used in the past year. Everyone should make a list of the financial institutions, jobs, or other sources of tax documents. As each one comes in, check them off the list. If one doesn’t show up, call the institution to make sure they sent it. The bonus is your trip to the accountant will already be organized.

Good advice for your identity protection and for getting organized!

For more information on identity theft protection, please visit www.hvshred.com

Latest statistics on ID Theft in from Javelin Research

Posted on by Judith

Javelin is the leading provider of independent, industry-specific, quantitative research and strategic direction for payments and financial services initiatives. Javelin conducts rigorous research and analysis to create successful strategies related to financial institutions, payments firms, technology vendors, merchants and billers, regulators and other policy-makers, associations, and consumer or business end-users.

According to Javeline’s latest research,  in 2010, identity theft and fraud claimed fewer victims than in any other period since Javelin began conducting surveys in 2003. Driving that decrease was the reduced rate of existing account fraud, although incidents of all types of fraud dropped from 2009. Meanwhile, consumer costs, the average out of pocket dollar amount victims pay, increased, reversing a downward trend in recent years. This increase can be attributed to new account fraud, which showed longer periods of misuse and detection and therefore more dollar losses associated with it than any other type of fraud.

The Javelin 2011 Identity Fraud Survey Report provides a detailed, comprehensive analysis of identity fraud in the United States to help consumers and businesses better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of 5,004 U.S. adults, including 470 fraud victims, was surveyed via a 50 question phone interview, providing insight into this crime and the affects on its victims. This report, supported by the Better Business Bureau, is issued as a longitudinal update to the Javelin 2005, 2006, 2007, 2008, 2009 and 2010 Identity Fraud Survey reports and the Federal Trade Commission’s (FTC’s) 2003 report.

Javelin’s eighth annual Identity Fraud Survey Report is the most comprehensive research study of the subject in the United States. It assesses the effectiveness of methods used for fraud prevention,  detection and resolution and provides the basis for fact based benchmarking and recommendations.  For more, visit https://www.javelinstrategy.com/research/Brochure-209

FTC Fines Company for ID Theft Scam

Posted on by HV Shred
According to a recent press release from the FTC, LifeLock, Inc. has agreed to pay $11 million to the Federal Trade Commission and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck.

In one of the largest FTC-state coordinated settlements on record, LifeLock and its principals will be barred from making deceptive claims and required to take more stringent measures to safeguard the personal information they collect from customers.
“While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it,” said FTC Chairman Jon Leibowitz.

“This agreement effectively prevents LifeLock from misrepresenting that its services offer absolute prevention against identity theft because there is unfortunately no foolproof way to avoid ID theft,” Illinois Attorney General Lisa Madigan said. “Consumers can take definitive steps to minimize the chances of having their personal information stolen, and this settlement will help them make more informed decisions about whether to enroll in ID theft protection services.”

More…

ON-SITE Shredding Saves

Posted on by HV Shred
When you add it all up, the most secure and economical method for your document destruction needs is ON-SITE shredding.

Looking at the whole picture, using a common office shredder it would take roughly 20 minutes to destroy 4lbs of paper (about 400 sheets). Factor in a $12 an hour office employee and it will cost $4.00 per day to destroy that information. That would equal $84.00 on a monthly basis.  For as little as $50 per month including use of an HV Shred, Inc. locked, executive console, an office can shred many times that volume securely and on-site for a savings of over 40 percent. This scenario does not take into account the freedom from the hassle of the limited “on” time for most office shredders (many need to rest after as little as 10 minutes), the frustration of clearing jams, and the awkward mess those shreds generate.  Not to mention, engaging HV Shred offers the peace of mind that all shredded paper is recycled!

When you consider everything, we save you both time and money and help get you on board with more environmentally friendly business practices.  More importantly, we make sure your documents are destroyed in the most secure and professional manner, On-Site!

Bottom Line: On-Site Shredding saves time, money, and the environment.

26 RED FLAGS FOR ID THEFT

Posted on by Judith

Concluding this round of guidance for the Red Flags Rule in effect as of December 31, 2010, here are the 26 Red Flags identified by the FTC–the government agency charged with enforcing compliance with this latest legislation related to identity theft prevention. 

1. A fraud alert included with a consumer report.

2. Notice of a credit freeze in response to a request for a consumer report.

3. A consumer reporting agency providing a notice of address discrepancy.

4. Unusual credit activity, such as an increased number of accounts or inquiries.

5. Documents provided for identification appearing altered or forged.

6. Photograph on ID inconsistent with appearance of customer.

7. Information on ID inconsistent with information provided by person opening account.

8. Information on ID, such as signature, inconsistent with information on file at financial institution.

9. Application appearing forged or altered or destroyed and reassembled.

10. Information on ID not matching any address in the consumer report, Social Security number has not been issued or appears on the Social Security Administration’s Death Master File, a file of information associated with Social Security numbers of those who are deceased.

11. Lack of correlation between Social Security number range and date of birth.

12. Personal identifying information associated with known fraud activity.

13. Suspicious addresses supplied, such as a mail drop or prison, or phone numbers associated with pagers or answering service.

14. Social Security number provided matching that submitted by another person opening an account or other customers.

15. An address or phone number matching that supplied by a large number of applicants.

16. The person opening the account unable to supply identifying information in response to notification that the application is incomplete.

17. Personal information inconsistent with information already on file at financial institution or creditor.

18. Person opening account or customer unable to correctly answer challenge questions.

19. Shortly after change of address, creditor receiving request for additional users of account.

20. Most of available credit used for cash advances, jewelry or electronics, plus customer fails to make first payment.

21. Drastic change in payment patterns, use of available credit or spending patterns.

22. An account that has been inactive for a lengthy time suddenly exhibiting unusual activity.

23. Mail sent to customer repeatedly returned as undeliverable despite ongoing transactions on active account.

24. Financial institution or creditor notified that customer is not receiving paper account statements.

25. Financial institution or creditor notified of unauthorized charges or transactions on customer’s account.

26. Financial institution or creditor notified that it has opened a fraudulent account for a person engaged in identity theft.

It’s a long, but not exhaustive list.  The most important thing for companies is to have a written Red Flags policy to demonstrate due diligence.  We will all be working together in the spirit of the law–helping head off the high cost of identity on individuals, companies, and the county at large.  For more information visit www.hvshred.com

Shredding service is good for your heart

Posted on by hvshred

Since February is heart health month and today is Valentine’s Day, let’s review why shredding is good for your heart.

Heart disease and stroke are the #1 and #3 killers of women in the United States respectively.  Here’s how shredding can help: 

  • SECURITY-Shredding is done ON-SITE while you watch on a color monitor
  • COMPLIANCE-The certificate of destruction supports your due diligence
  • WELL BEING-Quickly purge old files without worries about staples, paperclips, jams or broken shredders!
  • GREEN-All shredded paper is recycled!
  • NO RISK-No long-term contracts

We have shredding solutions for all Hudson Valley businesses and residents–check out https://www.hvshred.com for more information.

What is the right approach to the Red Flags Rule?

Posted on by hvshred

Continuing with our project of helping our community weed through the new legislation, this week we turn our focus to “What is the right approach to the Red Flags Rule?”

At its core, the Red Flags Rule requires a risk-based approach.  Each financial institution or creditor must conduct a risk assessment in order to develop and implement a program that is appropriate to the size and intricacy of the organization and the nature and scope of its activities.  In addition, the Program must allow the organization to address changing identity theft risks.  The risk assessment should document a complete analysis of the identity theft risks in a succinct manner so that it can be easily shared and communicated across the organization, including to the board of directors, management, and appropriate staff.  Examples of risk factors that should be used to identify red flags include:

  • Types of covered accounts the organization offers or maintains;
  • Methods the organization offers to open covered accounts;
  • Methods the organization provides to access covered accounts;
  • Previous experiences with identity theft

The program must incorporate oversight of third-party service providers to ensure regulatory compliance on their part as well.  Guidelines issued by the FTC are helpful.

Keep heart everyone–we will get through navigating this new legislation together.

For more information on identity theft prevention visit www.hvshred.com

What is a Red Flag?

Posted on by hvshred

Continuing our education related to sifting through the new Red Flags Rule, we thought it might be handy to start with  some definitions.

According to the FTC, a Red Flag refers to a pattern, practice, or specific activity that indicates the possible existence of identity theft.  Supplement A to the final rules and guidelines provides 26 examples of Red Flags for consideration when implementing the Program (we’ll cover the 26 in a future post).

For now, keeping it basic, Red Flags fall into 5 categories:

1. Alerts, notifications, or warnings from a consumer reporting agency; suspicious documents;

2. Presentation of suspicious documents;

3. Suspicious personally identifying information, such as suspicious address;

4. Unusual use of-or suspicious activity relating to-a covered account; and

5. Notifications or reports from customers, victims of identity theft, law enforcement authorities, or other businesses about possible identity theft in connection with covered accounts.

As a review, the Red Flags Rule applies to “financial institutions” and “creditors” with “covered accounts”.  Under the Rules, a financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a customer.

More definitions (a drag, but we’ve got to know what we’re talking about)

A transaction account is a deposit or other account from which the owner makes payments or transfers (ie checking accounts, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers…)

A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit.  Creditors include finance companies (credit cards), automobile dealers (auto loans), mortgage brokers (mortgages), utility companies (accounts for gas, electric, oil etc).  Where not-for-profit and government entities defer payment for goods and services, they, too, are to be considered creditors (higher education-student loans) and medical providers (payment accounts).

A covered account is an account used mostly for personal, family, or household purposes, and that involves multiple payments or transactions. 

That lays the foundation and feels like a full helping of information for now–more tips on how to comply next week.

There is always more information available at www.hvshred.com

MORE ON RED FLAGS

Posted on by hvshred

Our goal is to use this space to educate our community about issues relevant to identity theft; the long-time in coming Red Flags Rule has finally been enacted into law and we will be doing our best to help weed through—“What does it mean?”

We’ll start with the good news for many of our clients—thanks to the diligence of the American Institute of Certified Public Accountants (AICPA), and other groups, the language of the Red Flag Program Clarification Act of 2010 signed by the president on December 20th narrowed the definition of creditor to exclude professional firms that often to not receive full payment at the time service is rendered.  The AICPA and the American Bar Association dropped their lawsuits, leaving the FTC free to enforce the fule.

The Red Flags rule requires creditors or financial institutions with covered accounts to implement a written identity-theft prevention program.  The program should identify and detect signs of identity theft in a client’s normal course of business and spell out appropriate actions they will take when they detect red flags.  Creditors would include entities that loan money, such as banks, finance companies, automobile dealers, and mortgage brokers, but many other businesses and nonprofits will be subject to the rule.

In the coming weeks, we’ll be doing our best to help clarify.

In the meantime, be assured that on-site shredding is an integral part of ensuring data security for any business.  For more information visit www.hvshred.com

Partnering to protect identity

Posted on by hvshred

We were pleased to partner with Sheila Delson from FREEDomain to help her protect her clients from identity theft. 

In her own words: “(This was) my “New Year” kick-off! As a professional organizer I find many clients who struggle with PAPER elimination due to IDENTITY-THEFT concerns, making them feel ‘stuck’ which impedes progress. To minimize those concerns (and to keep the process flowing), I decided to include PAPER SHREDDING as a free ad-on value to my company services. From May thru Dec. I collect clients’ paper in my garage until winter. In the photos (on my Facebook page http://www.facebook.com/#!/profile.php?id=1276103995)

HUDSON VALLEY SHRED (www.hvshred.com) completes the cycle, shredding three full containers in under 20 minutes and the remains are carted to an official paper recycling center. Owner Judith Papo and crew made it a fast, effective and affordable experience, and their official ‘Certificate of Destruction’ is reassurance to each client that their privacy has been honored. And our cars are now safely back in the garage…whew – just in the nick of time!”

HV Shred thanks Sheila Delson and the entire Hudson Valley business community for the opportunity to provide on-site shredding service to our neighbors.

Working together, we can help protect our community!