Alabama Consumer Law Blog

Yahoo!Finance has posted an article that gives insight into how social networking websites can work against you in several situations, including debt collection, employment prospects and scams that can lead to identity theft.

Jobseekers should automatically assume that potential employers will do a Google search of their name and often social networking sites are some of the first results. You should take down questionable material and pictures. Or just set your profile(s) to private. Even established employees can sabotage themselves by posting negative material about their company or boss on sites such as Twitter. It's also important to remember that even material you set to private is still on the internet and thusly still accessible.

Social networking sites are also being used by debt collectors to track down debtors.

"If they don't have a good phone number or the mail's being returned, a lot of them use Facebook to find out if they have a different address or their employment information."

Debt collectors also keep an eye on debtors, not necessarily by contacting them, but by watching what the debtor posts. Some debt collectors violate legal and ethical boundaries and assume fake identities online to closer watch the debtor and possibly gain more information. Of course, debt collectors can also use this opportunity to further harass their debtors.

People provide social media sites with such a large amount of personal information that scams and identity thieves are rampant. Identity thieves can use seemingly innocent information to forge access your accounts.

If you have a public Facebook profile that gives your birth date and your parents' names and that kind of thing, they can provide the answers to security questions that your bank might have on its Web site.

Be wary of people who try and add you as friends, on sites such as Facebook, who you don't actually know. They might be hackers or scammers or people trying to sell products.

Being smart with the information you put online can save you a lot of trouble in the long run. Be careful of what you say about yourself and other people online, don't add people you don't know and always be mindful that identity thieves and hackers are on the same website.

If you have had issues with debt collectors or identity theft, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

WSFA.com has posted a news article that warns consumers to be cautious when making donations to aid those affected by the recent earthquake in Haiti. Attorney General Troy King gives several good tips to prevent people from accidentally donating to fraudulant organizations and scammers. These tips can prevent identity theft.

First, it's best to give in the form of a check or money order that is made payable to a charitable organization. Don't donate cash. You should never give personal information to anyone who contacts you through email, text message or phone call. Only give information to authentic charitable organizations that you personally researched and initiated contact with.

Feel free to ask how your contribution will be used and be concerned if the answer seems hesitant. Decline to donate they seem to be pressuring you to do it in a hurry. Be wary of any organization who offers to come to your home to retrieve donations, or appears at your home asking for donations. Lastly, be apprehensive of charitable organizations who claim to donate 100% of the proceeds to the cause. "Even non-profit organizations have, although minimal, administrative expenses."

If you have had problems with fraud or identity theft, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Our friend Denise Richardson, of givemebackmycredit.com, has posted a helpful article on how to avoid being the victim of identity theft scammers during the upcoming 2010 census. Richardson warns that scammers can use a variety of methods to gain access to your information. The Census Bureau has strict guidelines it must adhere to when conducting a census and being familiar with some of them will help you protect yourself.

For example, census questionnaires are always mailed directly to you "so be wary of anyone trying to tell you that they have the questionnaire in their possession." If you don't complete your form and mail it back in, a census bureau employee might show up at your home.

Census workers must carry an official government badge that clearly identifies them. This badge includes the individual's name, so you can ask for a second form of identification with their name on it for comparison. Along with the badge, a legitimate census worker carries a confidentiality notice and a binder containing a list of the people they must contact regarding the census. He might also have a small, handheld device or and an official census canvas bag.

Census employees also will not ask to enter your home and only ask for general information, such as age, race, gender and name. The only financial information they might ask about is salary range. Also, official census employees will not ask for you to pay them a fee or give a donation. The easiest solution to avoid this potential type of scammer is to mail your questionnaire back in.

The Bureau also rarely sends out emails. If they do, you will not be asked to supply personal information. If the email contains asks for this kind of information, it is a phishing email and you shouldn't click any links contained in it.

Census phone calls are typically related to surveys only. Do not provide the following information to anyone claiming to be a Census Bureau representative on the phone: social security number, birth dates, credit card numbers, and bank account numbers.

If you have had issues with identity theft feel free to contact us by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Mortgage News Daily has posted an article about the SEC's charges of fraud against three executives' activities at New Century Mortgage.

The U.S. Securities and Exchange Commission (SEC) has accused Brad Morrice, former Chief Executive; Patti Dodge the former CFO and former Controller David Kenneally of covering up the "rapidly declining financial condition of their firm before it filed for bankruptcy in April, 2007."

They are officially charged with not keeping investors informed about the company's financial condition, accounting violations and causing "substantial investor losses."

The company announced in February 2007 that it had to restate its 2006 financial statements at which point its stock plunged 36 percent to the high teens. It was trading at less than $1 when the company finally filed for bankruptcy.

If you have had problems with fraud, feel free to contact us by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Also remember you are invited to our free tele seminar on Alabama Wrongful Foreclosures set for January 19, 2010, at 4 pm CST.

The Michigan Collection Law Blog has posted an article that gives consumers some excellent pointers on how to protect yourself from fraud...and avoid identity theft in the process.

. 1. Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED" or "SEE ID."

2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. Your credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.

3. Put your work phone number on your checks instead of your home phone. If you have a P.O. Box use that instead of your home address. If you do not have a P.O. Box, use your work address. Never have your social security number printed on your checks. You can add it if it is necessary.

4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to Call and cancel. Keep the photocopy in a safe place.

Also carry a photocopy of your passport when you travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a name, address, social security number, credit cards.

The attorney that originally wrote this had his wallet stolen. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here's some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card Numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an Investigation (if there ever is one).

But here's what is perhaps most important of all:

7. Call any one of the national credit reporting organizations, Experian, Trans Union, or Equifax immediately to place a fraud alert on your name. By placing a temporary fraud alert on one of your credit reports, you have effectively notified all three bureaus as the one that you have notified is required to notify the others as well. You should also call the Social Security Fraud Department. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

If you have had problems with fraud or identity theft, or have questions, feel free to contact us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

The Health Care Lawyer Blog has posted an article about the amount of health care funding that could be saved from fraud every year. There is about $75-$250 billion "floating about in the health care system." Around 3-10% of that is lost to fraudsters annually.

these numbers make clear that health care fraud is not just committed by a few scattered criminals masquerading as health care providers. Instead, such fraud is pervasive and extends all the way from Pfizer boardrooms to infusion clinics.

The article lists five ways to curb health care fraud:

-"The government should scrutinize individuals and entities that want to participate as providers and suppliers, BEFORE they enroll."

-Make sure payments reflect the current market. Such as not making a huge payment for a procedure that is now "inexpensive and commonplace."

-"Assist providers and suppliers in adopting practices that promote compliance."

-Abandon the "pay first, ask questions later" approach and instead monitor health care systems for fraud. Technology should be used to identify incorrect claims before the provider is reimbursed.

-Respond quickly to detected frauds and deter others. For example, the use of Health Care Fraud Prevention and Enforcement Action (HEAT) teams to catch Medicaid fraud has been met with success; Since the inception of Strike Force operations in March 2007 through August 2009, the Strike Force has obtained indictments of more than 293 individuals and organizations that collectively have billed the Medicare program for more than $680 million.

If you have had issues relating to fraud, feel free to contact us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

The Associated Press has posted an article about a man from Miami, Albert Gonzalez, who has reportedly tried to steal 130 million credit card numbers. "The one-time government informant" is being charged with the largest case of credit and debit card data theft in the nation's history...on top of another 40 million numbers that he previously stole.

Gonzalez used to work for the US Secret Service as an informant responsible for tracking hackers, which is ironic because

...the agency later found out that he had also been working with criminals and feeding them information on ongoing investigations, even warning off at least one individual, according to authorities.

Two Russian co-conspirators also joined Gonzalez in attempting to hack into corporate computer networks to leave malware that would give them access to steal data. They targeting major companies such as 7-Eleven Inc, the grocery store chain Hannaford Brothers, Co. Inc, as well as a New Jersey based card-payment processor named Heartland Payment Systems.

He is already in jail on other hacking charges and could face up to 20 years for this particular sentence. Other charges against him include hacking into the servers of Barnes and Noble, TJ Maxx, Office Max, Sports Authority and the restaurant chain Dave and Buster's.

If convicted, Gonzalez could face a life sentence for those charges as well as 20 years for the recent charges.

If you have had problems with identity theft or stolen credit card numbers, feel free to contact us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Associated Press' Matt Apuzzo has written an article about a "nightmare mortgage" scheme.

Around 1,000 people in Maryland were tricked into paying a combined total of roughly $70 million to a company that promised to use the revenue from their money to pay off their mortgages. An upfront investment fee of $50,000 was required for each house. A $100,000 investment got the customer a seat on the "Junior Board of Directors."

Investors were told they were investing in ATM machines, television advertising and calling card kiosks that would raise money for the mortgage payments. But prosecutors say the businesses never made any money.

Instead, prosecutors say the investments were used to pay company salaries of up to $200,000 and maintain a fleet of luxury cars and a staff of 10 chauffeurs. And company officials allegedly traveled to the Super Bowl and the NBA all-star game with investor money.

The individuals responsible for the scam had businesses that went by several different names, such as Metro Dream Homes, Metropolitan Grapevine LLC and POS Dream Homes. Officials believe they have all of the schemers' names.

If you have had problems with mortgage fraud, feel free to contact us.

The Federal Trade Commission has posted an article that warns consumers about scams associated with getting stimulus payments. Scammers can use very official looking forms that strongly resemble those used by the IRS, to trick people into submitting their personal information in return for the promise of a stimulus check. Scammers can also contact you by email or telephone.

The FTC advises consumers not to give their personal information to anyone who randomly contacts them about a stimulus payment. The IRS doesn't contact people in that manner. While the idea of receiving a check is certainly enticing, be aware that it might just be an identity theft scheme.

When a stimulus plan does involve a check to you (it may not), you won’t need to fill out a separate form in an email or give out personal information — like account numbers or your Social Security number — to someone who calls you out of the blue.

If you have had problems with identity theft because of fraudulent agencies, feel free to contact us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Alan Zibel and Christopher S. Rugaber of Associated Press have written an article that discusses the government's response to an increase in

"criminal actors...preying on desperate borrowers caught up in the nation's housing crisis."

The article warns that "scammers" are trying to trick customers into paying hefty upfront fees for "loan modifications" that are rarely successful. Illinois Attorney General Lisa Madigan warns consumers to

"...stay away from anyone who says that they will save your home for money upfront."

The Federal Trade Commission has sent over 70 letters to companies they feel are using questionable advertisements, as well as filing new complaints regarding 3 companies. The FBI is also investigating 2,100 cases of mortgage fraud.

"These are predatory schemes designed to rob Americans of their savings and potentially their homes," Treasury Secretary Timothy Geithner said. "We will shut down fraudulent companies more quickly than before. We will target companies that otherwise would have gone unnoticed under the radar."

However, Federal Loan Modification Law Center founder Bill Anz says he offers a refund to any client who doesn't receive a modification. Anz also says that 20% of his 5,000 clients have received modifications thus far.

Even though some of these mortgage loan modification agencies do offer refunds, caution should still be exercised when enlisting their help.

If you have had problems with fraudulent debt companies, feel free to contact us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code

Alabama consumers should be aware of this jury duty scam we recently read about on the Houston Consumer Blog. This is a blog that the local ABC News Station has on their website. The blog is maintained by Mike Mcguff, who has done an excellent job of informing Houston consumers of issues they need to be aware of.

Apparently, an identity theft was attempting to obtain individual's personal information by calling them and telling them that they had missed jury duty and were being fined. One person he called reported it this way:

“I received a phone call yesterday from someone claiming to be with the Harris County Jury Assembly Room Staff. They said that I had failed to report to Jury Duty and I would be fined $300 dollars if I did not. Then they told me that I could pay with a credit card and get it taken care of right away. I do not have a credit card, so I told them I had never received a letter/summons and if I was going to be fined, I would rather send in a money order or check. Then I started asking more questions about what I could do to avoid the fine, since I had never received the letter, and they just hung up on me.

First, of all, never give your personal information out over the phone to someone who calls and asks for it. Second, if you receive such a call. Hang up and call the court to report this immediately. If you ever receive a suspicious call from anyone, hand up and call the company back on a number from the phone book or their official website.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Contact Information
First Name *
Last Name *
Email *
Street Address 1
Street Address 2
City *
State *
Zip Code