New Phishing Scams Prey on Consumers' Economic Fears

A recent wave of phishing scams and other identity theft scams seek to take advantage of people's fears regarding the economy. With so many banks having trouble, the Identity Theft Assistance Center (ITAC) and the Federal Trade Commission are warning consumers in a press release about emails claiming to be from an institution that recently acquired the consumer's bank, mortgage, or savings and loan company.

Obviously, many of us are not strangers to the phishing scam since we've seen many of them before. However, these recent ones are taking advantage of many consumers' insecurities regarding the current economic situation. These scammers hope that some worried consumers will fall for their fraud and provide important information, like passwords, account numbers, and Social Security numbers. They will use this information to commit identity theft.

ITAC and the FTC are also anticipating an increase in credit-related scams. Be on the look out for phony refinancing offers, equity loan schemes, and other credit-related scams. Thoroughly investigate the validity of an offer before agreeing to anything and avoid giving your account numbers or Social Security number to anyone who contacts you by email or phone. Being so free with your information can make you the next victim of identity theft.

While many struggle during difficult economic times, scammers seem to thrive by taking advantage of the fears and concerns of others. Do not be fooled by these emails. It's just another phishing scam from another fraudster looking to commit identity theft. By being smart, you can avoid becoming a victim.

Bank Data Breach Could Affect More Than 12 Million Customers

Last week, the Bank of New York Mellon reported that a data breach discovered earlier this year may affect more customers than they originally anticipated. The bank reported back in May that back-up storage tapes from Bank of New York Mellon shareowners service had been "lost," exposing millions to potential identity theft, and notifications were sent to the 4.5 million people whose information was believed to be on the back-up tapes. After further investigation, the bank announced that the number of individuals affected may be as high as 12.5 million.

The bank has taken steps to enhance security and has instituted stringent new standards for the transport of personal data, but this is probably no comfort for those whose data has been compromised. The Bank of New York Mellon is offering affected customers two years of free credit monitoring through Experian as well as identity theft insurance and reimbursement for the placement and removal of a credit freeze on credit reports.

Affected customers can find more information at a website that the Bank of New York Mellon has dedicated for the purpose of informing customers of the data breach and what they are doing about it. Those concerned about the breach and possible identity theft should visit the website and contact the bank if you have more questions.

Wells Fargo Reports Data Breach

Wells Fargo & Co. has reported that the personal information of about 5,000 people may have been seen when someone used a bank access code illegally. The bank is notifying the people whose names are on the list and offering them free one-year membership to Identity Guard, an identity theft protection service.

Wells Fargo was alerted to suspicious activity in early July and contacted law enforcement immediately. It appears the illegal activity occurred in May and June. This is not the first time Wells Fargo has this type of breach. The company had two data breach incidents in 2006.

Whether or not this data breach has resulted in identity theft for any of the bank's customers remains to be seen. Wells Fargo has recommended that anyone affected should alert the credit bureaus and go over their accounts carefully to watch for suspicious activity. Those fearing identity theft because of this incident should monitor their credit reports or take advantage of the credit monitoring services offered by the bank.

Most Bank Websites Do Not Protect You from Identity Theft

Don't you love the convenience of banking on the Web? I know I do. And when I signed up, my bank's manager was raving about how secure it was. However, a recent study at the University of Michigan made me more than a little concerned.

According to the study, more than three quarters of all bank Websites have design flaws that can expose users to identity theft. Some of the flaws include login boxes or security and contact information placed on insecure pages, allowing insecure IDs and passwords, and emailing sensitive information insecurely as well as others.

Some of the issues have been addressed since their discovery, but there is still a lot of work to be done. The problems become an issue only if you are logging in from an insecure network. So one major way to protect yourself from identity theft is to log in only from your home computer with a secure cable or DSL connection, not at a coffee shop with an open wireless connection.

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Identity Theft Involving ATMs Increases

We should always be cautious at ATMs. My post on shoulder surfing gave just one reason. However, a recent news report should remind us to be extra vigilant not only about who might be watching but about which ATMs you use. Identity theft involving ATMs is increasing, and the ones you find in convenience stores are the biggest problem because they are easiest to tamper with.

According to the report, the use of skimming at ATMs in stores and other public places is on the rise. While they may seem convenient, especially when you need some quick cash at a store or restaurant that only accepts cash, they may have a skimmers attached to them. Is the convenience worth having your bank account information compromised? The best way to avoid this problem is to only use bank-owned ATMs. While they may not be perfect, they are more secure when it comes to protecting your private information.

You should always be cautious when using ATMs, but you save yourself a lot of trouble upfront if you use your bank's ATM or one owned and operated by another reputable bank.

Credit Card Companies and Identity Theft

I know this is a touchy subject, and there are companies that may not appreciate this post. However, when I saw this press release, I felt it appropriate to post. One of my first posts on this blog referred to the elimination of junk mail, particularly pre-approved credit card offers, as a way to prevent identity theft. Apparently, the targets vary, and in the case of the press release, people who have spent extensive time in the hospital have become targets for identity theft. Of course, who better to target than someone whose primary concerns are their health, not their credit? Who knows how long it will be before the theft is discovered, if they even survive?

And who is being blamed? Major banks and credit card companies offering free credit to just about anyone without verifying the identity of the person applying. It's as simple as mailing in a form, filling in an online request, or making a phone call. Lending and issuing credit, after all, is quite profitable. And what about those of us affected by identity theft? Cost of doing business perhaps.

A lawsuit is going on to hold these banks issuing the credit responsible.