Alabama Consumer Law Blog

Fox Business has posted an article that gives some pointers on what you should never carry in your purse or wallet on a daily basis. Some personal items you may carry can significantly increase your risk of becoming a victim of identity theft if your wallet or purse is stolen. Some of the items that can put you at risk aren't surprising, but others are.

1. Your Social Security Card
You may carry it around in case you need another form of identification, but really it's better to just memorize the 9 digits and leave the card at home in a safe place. If your SS Card falls into the wrong hands, someone can take a loan out in your name and cause all kinds of identity theft issues.

2. Your Passport
If you're travelling outside the US it's much safer to lock your passport in the hotel safe and instead carry a photocopy of it along with your driver's license instead. If you're mugged overseas and your passport is taken, it can turn into a vacation nightmare. If you're travelling domestically, your driver's license is a sufficient form of identification; leave the passport at home.

3. PIN Numbers and Passwords
Most PIN numbers are just 4 digits, but some people like to write them down and keep them in their wallets. Some people also write down the alarm code for their house, so in the event of their wallet being stolen they've given the thief a free pass to their bank accounts and access to their home. If you can't remember all your PINs and passwords, it's much safer to store them on a password protected phone rather than writing them down.

4. Non-Password Protected Phone
Most smartphones today allow people instant access to their bank accounts and even medical records. Even if you only have your phone configured for email, the thief could still do a search for PIN numbers or ATM passwords. If you do store important personal information on your phone, be sure to have your phone password protected so a thief will have to wipe all your personal data to be able to change the password to use your phone.

5. Checkbook
Your checkbook contains a surprising amount of information about you- your address, your phone number, your bank account and routing number, and possibly an imprint of your signature for the thief to duplicate. If you know you're going to need a check, just tear one out and carry it with you. If you're going to need multiple checks, go ahead and bring the checkbook but don't get in the habit of always having it on your person.

6. Too Many Credit Cards
Most people carry all their credit cards with them all the time, but if your wallet is stolen not only will you have to take the time to cancel every single card, you'll also be without any cards for about a week. You should only carry the one or two cards you use daily and be sure to keep photocopies of the front and back of the cards at home. On the back of the card is the 1-800 number to report to report the card stolen, which isn't very helpful if you don't have the card.

7. Too Much Cash
You should only bring as much cash with you as you're prepared to lose. It's best to just carry enough to be helpful in the event of an emergency. If you're the type of person who pays for everything in cash, only carry enough for the day's expenses because once your cash is stolen it's gone forever.

8. Gift Certificates/Cards
You may carry these items thinking that you may pass the store your certificate is for, but in truth, gift cards and certificates are just as risky as cash. Once they're stolen, they don't require an ID for use and are gone for good if stolen.

9. USB Devices and Jewelry

"It may sound silly, but if you're changing earrings or heading from a business meeting, it's very possible you may forget and toss these things in the zipper compartment of your wallet," says Lin. USB devices can be bad news in the hands of thieves if they contain confidential files. "It would be horrible to get your wallet stolen any day, but if you're also losing your grandmother's earrings or a presentation you've been working on for months, it's even worse!"

10. Receipts
Receipts, like your checkbook, such as credit card information and your signature, which a thief could learn to forge. If you're hanging onto a receipt for warranty purposes, it's best to leave it at a safe place at home instead of carrying it with you. It's also a good idea to get into the habit of cleaning out your receipts every night and not carrying so many around with you all the time.

Identity theft is a huge problem, but if you use the tips above your risk of being crippled by identity theft are lowered significantly. If you have had problems with identity theft and have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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The Consumer Rights Law Blog has posted an article that discusses why it's so important for you to keep your Social Security number private. The information your SSN reveals about you is surprisingly detailed and it falling into the wrong hands can have devastating results.

For example, the first three digits of your SSN tell what state you were born in. An identity thief just having your name and SSN and knowing what state you're from can't amount to anything, right? After all, you can't open up a new credit card with just a Social and a home-state.

However, in the hands of an identity thief who has access to technology, just this little bit of information can have devastating results to your credit. Finding out information about somebody is surprisingly easy thanks to the internet. In no time at all they could uncover a street address, a birthday, a spouse's name and childrens name's, a workplace, or even hobbies.

And that's just the tip of the iceberg of what the identity thief could find out for free. If they're willing to pay a few dollars on a people search website they could find out even more, but they don't need to take that extra step since they already have everything they need to know about you.

You SSN sums up everything about your identity and it can be disastrous if an identity thief were to acquire it. It's important to be careful when giving the number out and to only do so when it's to a trusted and legitimate source.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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Our friend Denise Richardson of givemebackmycredit.com has posted an article that discusses some of the different ways identity theft can impact your life.

Not only does identity theft cost you money due to false charges, it also consumes a huge amount of your time to fix once you have discovered the problem. Calling the bank, credit card companies, and creditors and proving that the debts aren't yours can feel like it's consuming your life.

As irritating as credit card identity theft can be, it's nothing compared to how devastating Social Security identity theft is. Correcting this type of identity theft can take months, and maybe even years, because it takes so long for it to be noticed. It can also happen multiple times, since the identity thief has access to your Social Security number, birth certificate, and/or medical records, etc.

Take the case of Larry Smith. Mr. Smith is a Florida resident whose name and personal details were used by someone else. Over the past 17 years, it is alleged that Joseph Kidd used Smith's birth certificate to obtain medical benefits; all the while, he also used Smith's name and "identity" when committing (and getting caught for) various crimes. This caused the police to arrest the real Smith, who spent several nights in jail for crimes allegedly committed by Kidd. The real kicker to this story is that when Kidd was finally apprehended--when Smith's wife finally managed to convince the police that they had the wrong guy--Kidd still managed to use Smith's name and identity. The police booked him as "Smith" and released him as "Smith," complete with a parole ID card in Smith's name so that Kidd could continue to confuse authorities and use Smith's name--and benefits.

The time, energy, and money the Smiths have invested in trying to get this fraud corrected is staggering. But it is nothing compared to the emotional toll this event has taken on their lives. Being jailed for a crime you didn't commit? Not many of us can even imagine that nightmare -but it happens.

Most of us can't imagine, either, what Anndorie Sachs has been through. She got a call at her home telling her that she had given birth to a baby addicted to methamphetamines. Since she hadn't had a baby in over two years, she quickly realized that someone had used her name and records to pay for a labor and delivery.

300,000 people were victims of identity theft in 2009. In the scheme of things this isn't a large number of people, however, medical identity theft can be quite expensive to correct and can even be life-threatening, as there is information on your medical chart that isn't accurate.

Banks have tried to really crack down on faulty charges on credit cards, causing identity thieves to use other ways to steal your money... such as getting into your checking account of messing with your home equity line. Having your identity tampered with, whether it be from a stolen wallet, data breach, or dumpster diving can result in you having to spend your personal money and time trying to defend your innocence.

The reported number of hours it takes to recover from fraud (59 hours!) means it's nearly impossible to do so without attempting much of the clean up during working hours--which means losing job productivity and in some cases causing you to lose pay.

"...the average consumer out-of-pocket cost due to identity fraud increased to $631 per incident in 2010, up 63 percent from $387 in 2009. Such costs include the expenses of paying off fraudulent debt as well as resolution fees, such as legal costs."

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Our friend Denise Richardson of givemebackmycredit.com has posted an article about how those serving in our military and their families can be more vulnerable to becoming victims of identity theft.

A recent study from West Point professor Lt. Col. Gregory Conti found that military personnel who are deployed overseas are more likely not to keep an eye on their accounts, whether it be from lack of time or lack of resources. The military also uses Social Security Numbers for basically everything from important paperwork to trivial things like buying food at the grocery store on base.

The military is taking steps to reduce its dependence on using SSNs. Every time it is required to be used by military personnel in everyday use is currently being evaluated and is expected to be cut in half. For instance, starting this spring, SSNs will no longer be put on military IDs.

Here are some tips for servicemen and women and their families to use to prevent becoming victims of identity theft.

-Don't share your SSN unless it's required. Don't risk being charged with insubordination by any means, but you could at least ask what your SSN will be used for each time you're asked for it.

-Never give out personal information over the internet or phone.

Thieves may be looking for details to corroborate information they already have or to fill in gaps in their knowledge. When someone asks you to provide your mother's maiden name or the city in which you were born, how do you know they are matching that to information you've provided or whether they are entering it into a database of their own, to be used against you and your bank account? You don't.

-Don't use easy or obvious passwords. Using a variation of your birthday for a password can leave you exceptionally vulnerable. Using the same password for multiple accounts can also be devastating. You should use different passwords for each account and change them regularly to thwart identity thieves.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Our friend Denise Richardson of givemebackmycredit.com has posted an article about the 5 most common tax scams and how you can recognize and avoid them for the upcoming tax season.

1. Phishing

Phishing can come from several places, such as social networking sites, fake websites, or email addresses. A tax phishing scam happens when a scammer tries to convince someone they are owed a tax refund but they have to provide personal information to prove their identity before the refund can be claimed. Providing personal information opens the door for identity theft. You can prevent this by being wary of emails supposedly sent by the IRS. Don't click on any links in the email or provide any personal information. Clicking on the link can infiltrate your computer with viruses or spyware that can obtain personal information from your internet activity and files.

The IRS never sends out unsolicited emails to individuals, all matters of business are handled by mail or over the phone. The only emails they send are very general and don't ask for information. If you receive a suspicious email, forward it to phishing@irs.gov. If you think you may have been a victim of this type of scam, you should report it to the IRS and FTC, notify the three major credit bureaus and consider identity theft protection.

2. Tax Return Preparation Fraud

There are dishonest tax preparers who can damage you financially. There have been reports of preparers keeping information from clients' tax returns or charging very high fees for getting you a very high tax return. To protect yourself you should realize that not all tax preparers are honest and you should find someone with a good reputation to help you. The IRS will begin placing regulations on tax preparers in the future, which will hopefully help this problem.

3. "Frivolous Arguments to Avoid Paying Owed Taxes"

There are "frivolous schemes" that encourage people to not pay the taxes they owe. In this type of scheme, the scammer uses several arguments convinces the consumer that they don't have to pay, such as:"paying taxes is voluntary" and filing 0 return means you won't have to pay any taxes and "the first amendment allows individuals to refuse to pay taxes on religious or moral grounds." You have to remember that these arguments are false and you still have to pay your taxes, no matter how convincing the scammer is.

4. "False Forms for Bigger Returns"

In some scams, an individual will file false information on their tax return in order to claim a refund they are not owed. In a bigger scheme, a tax preparer or scammer helps a tax payer file misleading information for a larger return (in exchange for a percentage of that return).

Always report everything 100 percent accurately on your tax return. IRS computers are becoming more and more sophisticated each year. They have a program that can compare your reported earnings against what your employer or contractor reported. The IRS also runs statistical analysis on your return to check for red flags.

Even if you have gotten away with these things in the past, do not assume that you can do it again the future as the IRS is becoming extremely proactive in preventing taxpayers from getting away with this in the future. If you have any uncertainty regarding the best way to report information, obtain assistance from someone knowledgeable.

5. Social Security Benefits that aren't Taxable

Making any mistakes, accidental or intentional, when reporting on your Social Security Benefits "with excessive withholding" will result in a $5,000 fine. When you file this way, you end up without a reportable income to the IRS on a tax return. Often both the reported income and with-holding amount are incorrect. If you're unsure of how to file this type, seek help from a professional to avoid making costly mistakes.

Remembering to pay attention and be wary of scams and deals that seem too good to be true can save you from being a victim of identity theft. If you have had problems with identity theft and have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Our friend Denise Richardson, of givembackmycredit.com, has posted a helpful article where she gives eight reasons why you should take identity theft seriously. Identity theft is the fastest growing crime in the country, according to FBI statistics. While it hopefully will never happen to you, the possibility is still there and you should take precautions and know what to do after it happens.

Here are eight reasons why you should take identity theft seriously:

1. It's not just about credit.
Unlike commercials would have you believe, having your credit card number stolen in an identity theft ordeal is really just the least that can happen. Your medical records, tax returns, and/or Social Security number could be stolen as well. The information someone could get about you is endless.

2. Criminals always have the newest technology.

Phishing, smishing, vishing, skimming, spoofing, click-jacking, tab-napping, pharming--whatever you call it, it's bad news when it happens to you. We all need snooping / scanning / sniffing technology that is just as good if not better. Services that can now utilize up-to-the-minute technology to detect suspicious activity before the damage occurs, can go a long way in reducing the risk and impact of fraud.

3. Identity theft affects your finances.
An identity theft can cause you to have to pay higher insurance premiums, have errors on your credit report, and even prevent you from getting a house or apartment...all because your credit wasn't cleaned up correctly and fast enough. It can take months or years, and be quite expensive, of battling with credit bureaus to ammend your credit score.

4. Protecting against and cleaning up after identity theft takes knowledge and time.
Most people don't have the time or know-how to scour underground websites to make sure their personal information isn't being sold. It's impossible to immediately tell if someone fills out a credit card application using your name and giving your information, but websites like Lifelock.com can.

Lifelock was recently voted 8th overall and #1 in security in INC Magazine's top-growing 500 companies. An additional plus: they actually keep their jobs in this country.

5. Social Networking is everywhere.
The popularity of online social media sites has exploded, and while it's fun to update your friends and family about your life, it's also an opportunity for your personal information to land in the hands of thieves. With the rise of social media popularity, cyber crimes have also risen. Protecting your data is very important.

6. The best defense is a good offense.

You can't always avoid being a victim of a crime, fire or a storm, and you can't stop a determined identity thief either. But you can take steps to lessen the impact an identity theft can have on your life--and you can take those steps BEFORE anything happens to you. Knowledge is power.

7. Time is money.
It's true that you can save money by not having insurance, but when something happens you will definitely be paying the much higher price for being unprepared. Your interest rates could go up and, if you have insurance, your premiums could go up . It's important to have a decent amount of money in your savings account that way you can have money to live off of while the banks figure out what back funds they have to pay if your checking account is cleaned out by an identity thief.

8. Statistics
It's currently more likely that you'll have identity theft issues than your car will be stolen. But this doesn't mean that you would cancel that part of your car insurance, does it? Since identity theft is the fastest growing crime, it's important that you take every precaution you can and know how to protect yourself!

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

The Los Angeles Times has posted an article about a recent case of identity theft that involved Mr. Donald Bren, a wealthy and well known real estate mogul in Orange County, California. He has been ranked as the 45th richest man in the world, the 16th richest American and is estimated to be worth $12 billion.

In a truly bizarre twist, what seems to have happened is that a man (who looks nothing like Mr. Bren) walked into a branch of East West bank, opened accounts in Bren's name and then deposited a $1.4 million tax-refund check that he had somehow managed to steal from Bren. The thief used $1.1 million of the check over the next few weeks.

He used a fake driver's license and Social Security number to open the accounts, and even put "smoke shop" as his occupation. The identity thief didn't mention Bren's job has the chairman of Irvine Co., which is a massive land development company, and over the next few weeks proceeded to transfer money to account-holders of outside banks. Authorities are still working on finding out who controls the accounts.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Our friend Denise Richardson of givembackmycredit.com has posted an interesting article on how college students are especially at risk for becoming victims of identity theft. Since July 2009 there have been more than 70 successful data breaches in 30 states; in 88% of these breaches an individual's or student's Social Security Number was shown.

One reason college students are more vulnerable to identity theft is because of the number of times they are asked to give out personal information. Some universities even use students' SSNs for student identification numbers, which is then sometimes shown on a student ID card. It's estimated that over a million students, alumni and faculty have been affected by a data loss or breach that exposed their personal information.

Personal information can be illegally accessed several different ways, such as outside hackers or even unhappy university employees who obtain the information to sell to identity thieves.

LifeLock recommends individuals who have been informed of a potential breach of personally identifiable information should;

* Do your research - find out what information has been compromised. This will help you identify the risks associated and the best next steps

* Consider utilizing an ID theft protection service - Services such as the advanced LifeLock Command Center protection suite offers members LifeLock Personal Breach Detection service, which actively monitors unregulated global networks for your identity information. If they find you are at risk, they will alert you by e-mail and help protect you against accidental personal information disclosures, not just from your personal computer, but many other computers that may store your personal information and participate in peer-to-peer file-sharing

* Place a fraud alert - Contact one of the three credit bureaus to place a fraud alert on your credit. You will only need to contact one, and then that bureau will contact the other two on your behalf. With a fraud alert in place, creditors should be notified that you are concerned about identity theft when they receive a new application, helping to stop the extension of credit in your name to a thief

* Repeat as needed - You can renew your fraud alert every 90 days. It is important to note that you will need to renew in order for it to stay in effect. (You may also remove a fraud alert at any time.)

* Request your free credit report - Do this as soon as possible so that you are able to see evidence of an identity theft appear on your credit report, should one exist.

The fastest growing group of identity theft victims is young adults age 18-29. Colleges and universities are working with LifeLock's educational programs to teach students and faculty on how to avoid having their personal information taken in the event of a breach.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Associated Press has posted an article about a new form of identity theft that targets children's social security numbers. Hundreds of businesses are using computer searching to locate dormant social security numbers, which belong to children who don't use them. The businesses then sell the numbers under a different name to people who can then earn phony credit and rack up huge debts they have no intention of ever paying off.

This scheme is a new threat to the nation's credit system because it falls in a legal gray area in that federal investigators have not yet figured out how to prosecute those involved.

"If people are obtaining enough credit by fraud, we're back to another financial collapse," said Linda Marshall, an assistant U.S. attorney in Kansas City. "We tend to talk about it as the next wave."

A Kansas City FBI agent accidentally uncovered the scheme while investigating a mortgage fraud case. The sellers avoid dealing with the law by not referring to them as social security numbers. Instead they call them CPNs, which can stand for credit profile, credit protection, or credit privacy numbers. Because of this, this form of identity theft is difficult to detect and it remains unclear exactly how much damage is being done.

The scheme works like this:

Online companies use computers and publicly available information to find random Social Security numbers. The numbers are run through public databases to determine whether anyone is using them to obtain credit. If not, they are offered for sale for a few hundred to several thousand dollars.

Because the numbers often come from young children who have no money of their own, they carry no spending history and offer a chance to open a new, unblemished line of credit. People who buy the numbers can then quickly build their credit rating in a process called "piggybacking," which involves linking to someone else's credit file.

The businesses also instruct customers to provide false information when using the number to apply for credit. Customers are told to use their real name and date of birth, but to avoid listing any addresses or phone numbers they've used in the past. They're also told to avoid any other information that connects the new, clean credit profile with the old, damaged one.

Children's social security numbers are more in demand than other unused numbers, such as a deceased person's. Children's numbers offer the identity thief a "clean" chance of acquiring fake credit from a number no one else is using and that won't be detected until several years later when the child applies for a loan or seeks credit for the first time. Credit bureaus can quickly identify a deceased person's social security number being used fraudulently by consulting the Social Security Administration's death index. There is no such index for dormant/ unused numbers.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Our friend Denise Richardson of givemebackmycredit.com has posted an article about one man's struggle with identity theft. Dan Wheeler's wallet was stolen from his truck about fifteen years ago and has been dealing with identity theft issues ever since. If that wasn't bad enough, because of the identity theft, he has also been wrongfully branded as a sex offender...possibly forever. Trying to correct identity theft can be very expensive, and being labeled a sex offender makes it nearly impossible for him to get any job that requires a background check.

Identity theft continues to be a growing problem, whether it's medical, criminal, employment, reputation or financial. Once your information is compromised and/or stolen, you can't predict or control what the consequences will be. A recent study by Ponemon Institute has shown that organizations are being bombarded by at least one successful data attack per week, which carries a cost of anywhere between $1million to $53 million annually.

This study found that among the 2,807 publicly disclosed data breaches worldwide during the past five years, the cost to the victim firms as well as those whose information was exposed came to whopping $139 billion. Another stunning figure.

The study found that social security numbers were the most commonly compromised, followed by credit card numbers. "Remember, once that SSN lands in the wrong hands -it's irretrievable."

No one is immune to data breach or an identity theft -no one should minimize the risk or the many effects either. Identity theft is serious business, and I'm worried that if those who continue to write about identity theft in a manner that minimizes the effects it carries and in a way that doesn't take identity theft seriously, then the public won't take it seriously, either. And that's not good for business or consumers.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Good morning,

I hope your week is going well. I received a lot of good feedback on the video last week - everyone that wrote in said they liked it. One person said my head was too big which reminded me of the Seinfeld episode (the "Andrea Doria" episode) where everyone kept saying Elaine's head was so large.

I don't think my head is too out of whack with my body - but I have taken the good advice and moved the camera a bit further away. :)

Speaking of video, here is this week's video.

So I took this negative - having the camera too close - and turned it into (hopefully!) a positive. Let's talk about this today for a moment . . .

We all face adversity in life but I read a quote years ago that has stayed with me and really has been helpful as I go through difficult times. It's from Napoleon Hill and it goes like this:

"Within every adversity, there is a seed of an equal or greater benefit."

The idea is that in every tragedy or difficult time, somewhere (and sometimes its hidden really well!) is something that will turn out for our benefit.

It can be something major - loss of a job or a broken relationship . . . this is bad but it leads to a better job or better relationship. You know the expression - we look back and say "Wow, that was a blessing in disguise."

Or it can be a more minor issue.

I'm not saying it is always true or easy - I understand from years of representing families who have lost loved ones through some company's negligence how tough some situations can be . . . but . . . we have to go through these difficult times anyway and if we have the asumption there is some hidden benefit, then we very often will find it.

OK - what in the world does this have to do with our newsletter on consumer issues?

Well, it applies to most situations our clients find themselves in . . . Facing some difficulty and having the choice to make - do we just wallow in self pity or do we find some way to turn this bad situation into a good one?

You are dealing with an abusive debt collector. One that calls your family members. Calls your neighbors. "Blows up your cell phone" with multiple calls a day. It's affecting your job - your mood - your work.

Bad situation? Absolutely. Is there a hidden benefit? Perhaps.

Maybe you reach the threshold and say "Never again will I be put in this situation where I have collectors calling."

Maybe you can sue the collector and receive compensation. That compensation allows you to pay off some debt.

Or like one client I had who owed no-one in the world but had a collector that would not take him off an auto dialer (robo calls) after he repeatedly told the collection agency they had the wrong person.

He finally sued because it was the only way to make the calls stop. He didn't need the money but I mentioned that obviously that collection agency wanted to give him money and he could take a vaction on them or donate it to charity. The point is - very annoying what he faced but he was able to turn this around and get a benefit out of it.

We have represented over a 100 clients who have been sued by debt buyers. Debt buyers who could not prove they owned the debt or that our clients owed the debt.

Bad situation being sued? Of course. But we won those trials. Now - but not before being sued - now we have a court order that we did not owe the debt buyer any money.

Ahhh.... now we have a benefit "greater than" the adversity.

We take that court order and tell the credit reporting agencies (Equifax, Experian, and Trans Union) that we do not owe the debt and to get the debt buyer's account off of our credit report.

Sometimes they would not remove it. Bad? Sure.

But then we sued the debt buyer and the credit reporting agencies. We generally received compensation and we had it removed from our credit reports.

All because of this bad situation of getting sued by a debt buyer and a bad situation of the credit reporting agencies not following the law.

One last example. We get behind on our mortgage payments. We are facing foreclosure. The mortgage company lies to you about what it will take to stop the foreclosure. You believe the lie (who else would know better than the mortgage company?) and because of that you end up with your home foreclosed.

Bad situation - adversity? Absolutely.

But because of the fraud and arrogance of the mortgage company you sue the mortgage company . . . and now facing a fraud jury trial the mortgage company decides to finally treat you with respect and honor.

Now the mortgage company agrees to modify the loan and compensate you for lying to you.

Bad situation you were in? Sure. But now you are in a better situation and you know better how to protect yourself in the future.

I'm not saying every situation turns out like I described above. Sometimes we lose if we are sued. Sometimes we lose when we sue the bad guys. Sometimes our health problems don't change for the better overnight.

That's life. But we have to look at the bad situation we are in and say "That stinks . . . but . . . what is the benefit I will find?"

Maybe its simply the life experience.

Maybe it prompts changes in how we handle our money or our health or whatever the case may be but my suggestion to all of us (talking to myself certainly!) is to have the assumption - to suppose - that somewhere we will find that benefit. . . and that benefit will be equal to or even greater than the adversity we are going through.

Or we could just say life is terrible.

Nah - let's not do that. :)

This reminds me of something my father told me when I was a kid - he said "Remember the 50:20 principle."

"What's that?"

"Genesis 50:20 -- when Joseph was sold into slavery. Then he became a ruler in Egypt and saved his family - who had sold him into slavery. He said to them 'You meant it for evil but God meant it for good.'"

A pretty good assumption to have don't you think?

Have a great weekend and next week I'll have a shorter newsletter (smile) - this one just kind of grew on me....

Best wishes . . .

John Watts

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The Western Mass Women Magazine has posted an article that gives helpful information about identity theft. There are several types of identity theft: medical, business/commercial (used to gain credit in the name of the person's business), criminal (used by identity thieves to avoid being caught and prosecuted), and financial (when a thief uses a false identity to receive products or money in your name). 10 million Americans were victims of identity theft in 2008 and the numbers are still growing.

There are three common techniques that identity thieves readily use: phishing, smishing, and vishing.

All of which attempt to contact the potential identity theft victim through email, voice messaging and texting (respectively) in order to collect as much personal information as possible. These forms of communication re usually sent from a seemingly legitimate source, such as one’s bank or credit card company, and often state that an immediate response is required to resolve an “urgent matter” regarding one’s account.

The identity thief counts on people to respond to such messages and provide details about their account as well as personal information. After obtaining that, it becomes very easy for them to set up fake accounts in the victim's name.

Still, there are more "traditional" methods. Shoulder surfing (listening in on conversations and piecing together personal information), dumpster diving (obtaining information through discarded bills and paperwork), and mail theft.

Mail theft relates to dumpster diving in the sense that the identity thief equates discarded mail items to a goldmine in terms of uncovering information. Mail thieves, however, do not limit themselves to merely picking through another’s trash, for they will pilfer directly from the ultimate source: the mailboxes themselves.

There is no guaranteed way to prevent being a victim of identity theft, but there are measures you can take to decrease the likelihood. You need to be familiar with your credit report so you will notice if anything unexpected changes. Be careful to check the URL on any website where you enter personal information to make sure it's the actual site you think it is. Also, be wary of phone scams and if a strange number calls you claiming to need information because of problems with your account, you should research the number for yourself. Your Caller ID can be fooled by identity thieves.

Some of the advice in this article comes from our friend Denise Richardson, of givemebackmycredit.com, who was also a victim of identity theft. In 2001, her credit card was charged $9,000 for plane tickets that weren't hers. And again, in December 2009, her credit card was charged by a cable company she doesn't use.

Despite her ill-fated circumstances, Richardson finds a silver lining and now takes a proactive approach to protecting her credit history and identity by currently focusing on advocacy and education in relation to identity theft and fraud. In addition to running a very successful blog (www.givemebackmycredit.com), she also published a book, Give Me Back My Credit!, in 2006 that shares the details of her personal story as well as advice.

If you have questions or concerns on this issue, feel free to
contact us through our website or by calling 205-879-2447.

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The New York Times has posted an article that discusses how lenders are adding to the problem of identity theft by still giving someone credit even if there are indicators of fraud. About 10 million Americans are victims of identity theft annually, partly because personal information (like Social Security numbers) is so easily accessible.

Chris Jay Hoofnagle, a lecturer at the University of California at Berkley, put out a report in which...

the Fair Credit Reporting Act that allows victims of ID theft to ask creditors for the fraudulent applications submitted in their names, Mr. Hoofnagle worked with a small sample of six ID theft victims and delved into how they were defrauded.

Of 16 applications presented by imposters to obtain credit or medical services, almost all were rife with errors that should have suggested fraud. Yet in all 16 cases, credit or services were granted anyway.

One victim found that out of the fake applications submitted in her name, four of the six had listed the wrong address, two had the wrong phone number and one had the wrong birthday. Another victim found that an identity thief had obtained a copy of his driver's license and was using the photo for identification, even though the two didn't look similar. Another man found that a Kohl's credit card was opened in his name, even though on the application his name was spelled wrong.

Increasing the penalties for imposters and identity thieves would certainly help curb the problem, but for that to be effective lenders also have to pay more attention and be willing not to give credit when there are blatant errors on an application that indicate fraud.

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

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Waaytv.com has posted an article with some good pointers for avoiding identity theft and good news about identity theft and homeowners insurance. About 9 million Americans are victims of identity theft annually. The big problem is that people usually don't even know they're victims of it until they are contacted about bills or other expenses that the thief is responsible for. Normally, victims of identity theft spend about $1,200 of their own money and 175 hours to reverse the damage. If you suspect your identity has been stolen, contact your bank and credit card companies immediately.

Governor Arnold Schwarzenegger said: "Identity theft is one of the fastest growing crimes in the country... It can happen to anybody... it doesn't matter how big you are, how little you are, how famous you are, how unknown you are..."

The good news is that several homeowners insurance companies cover identity theft as part of their policies. The coverage can cover things such as reimbursement for "expenses lost during the process," phone bills, mailing costs, lost wages and legal fees. It costs between $25-50 to add identity theft coverage to a homeowners/renters insurance policy.

Here are some tips to help protect your identity:

Never give personal information to anyone over the telephone.

Keep non-essential cards (medical card, identification badges, social security, credit cards) at home.

Invest in a locking mailbox. Never send outgoing mail through non-secure mailboxes.

Shred all documents that include your name, birth date, or other sensitive information, including junk mail. Determined identity thieves will often rummage through garbage cans to obtain discarded mail.

Make sure you have firewall, anti-spyware and anti-virus programs installed on your computer.

Check your credit report periodically. Consumers are entitled to one free credit report per year from each of the three major credit bureaus-Equifax (http://www.equifax.com), Experian (http://www.experian.com), and TransUnion (http://www.transunion.com/).

Consider investing in a homeowners insurance policy. A number of homeowners insurance companies offer identity theft protection as a part of their insurance policy.

If you have been a victim of identity theft and have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can 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:

You can also join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

NPR.org has posted an article that discusses the dangers of medical identity theft and how you can better prevent it. Medical identity theft can not only affect consumers' credit scores, but also puts their personal safety at risk. The identity thief can provide false information, like blood type and medications, that can later affect the actual insurance holder

."We've had people who, all of a sudden, their health care record has different blood types," Dixon says. "They have health care records with different genders and ages. Different medications. There are people we've talked with who, their imposter went in and had a hospital stay and put down that they were allergic to one drug, and then the real person is not allergic to that drug, but they're allergic to other drugs."

Health care workers have found that asking patients to tell them their medical history can help throw and identity thief off. Often times, they will stumble over or mess up information on the patient's medical chart.

Nearly all cases of this kind of identity theft are "insider jobs." Employees like accountants and receptionists have easy access to patient records. It's a good idea to get a hardcopy of your medical chart, even if a fee is charged, so there is a way to prove what the chart used to look like should it be falsely altered later on.

If you have further questions or concerns about identity theft, feel free to contact us through our website or by calling 205-879-2447.

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Silive.com has posted an article about the a warning from the IRS concerning scams during the tax filing season. Scam artists are using the IRS logo, name and other devices to impersonate the agency and thus obtain your personal information for the purpose of identity theft. Scammers usually try to contact people through Twitter, emails or other online messaging services. Others use faxes or phone calls or set up their own websites.

The IRS rarely sends unsolicited emails to people, and if it does, information about tax accounts isn't discussed, nor will they ask for personal information or sensitive financial information such as bank accounts or PIN numbers.

Anyone with a computer, phone or fax machine could receive a scam message or unknowingly visit a phony or misleading Web site. Individuals, businesses, educators, charities and others have been targeted by e-mails that claim to come from the IRS or Treasury Department. Scam e-mails are generally sent out in bulk, based on e-mail addresses (urls), similar to spam.

If you have questions or concerns about identity theft, feel free to contact us through our website or by calling 205-879-2447.

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Yahoo!Finance has posted an article that discusses traits that victims of identity theft have in common. Experian, a credit bureau, has conducted a study that indicates identity thieves go for "affluent suburban consumers" who often live in higher-income neighborhoods with few renters and own one or more new or luxury vehicles. Of twelve categorizations of people, three were most highly sought after my identity thieves: "affluent suburbia," "upscale American" and the more middle-class "American diversity."

Experian says these consumers live in and around metropolitan areas, favor leisure activities, have college diplomas or advanced degrees and more often tend to be married.

Experian identifies the common activities of those most often victimized by ID theft:

• Tennis
• Politics
• Foreign travel
• Charities/volunteering
• Cultural/arts
• Skiing

Where consumers live is also important to an identity thief. For example, it's easier to steal a discarded document in a suburban area. Also, these affluent households "may have domestic help and service people who may have the opportunity to steal personal info from the home that can be used to acquire credit."

Lenders also target these groups of people. Because of this, thieves have an easier time getting services and credit in the victim's name.

How to protect yourself can be tricky because you can't control where your information goes after it leaves your hands. Banks and other financial institutions have an obligation to guard your information. However, this article says that lenders need to strike a balance between guarding consumers' information and still making it possible to get a loan or credit without major hassles.

If you should be a victim of identity theft, consider a credit freeze even though it might be a bit more work on your end. Credit Monitoring alerts you when changes are made to your credit score.

If you have been a victim of identity theft or have questions or concerns on the subject, feel free to contact us through our website or by calling 205-879-2447.

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BusinessWeek.com has posted an article about a recent identity theft case. Leonardo Darnell Zanders was convicted for helping to lead a ring of identity theft that caused $1.5 million in losses to financial institutions, including Ben S. Bernanke, a Federal Reserve Board Chairman, and his wife among the victims. Zanders must also repay $1.4 million in reimbursements.

Zanders pled guilty for...

conspiring to commit bank fraud. He helped direct the scheme to use the IDs and stolen bank information to impersonate victims and make “split” transactions, depositing a check drawn on the bank account of another victim, and then siphoning the money out of the falsely inflated account, court records show.

Darrell Earl Price, a co defendant in the trial, testified that Zanders gave him checks belonging to the Bernankes. Mr. Bernanke said that his family was just one of about 500 families affected by Zanders' crime ring. Zanders acquired the Bernanke's bank information after Mrs. Bernanke's purse was stolen.

Identity theft is one of the fastest growing crimes in the United States, victimizing about 700,000 people a year. Consumers should certainly be taking extra precautions to protect themselves from becoming identity theft victims themselves.

If you have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Our friend Denise Richards, of givemebackmycredit.com, has posted an article about Sidejacking. Sidejacking is a threat that is not really new, but many people still don't know about the risk that can lead to identity theft.
Sidejacking occurs when a person hacks into a wireless internet connection and steals your personal information. Websites like Facebook, Myspace and various emails through search engines are at risk of being hacked if you login on wireless connections at public locations such as airports, coffeeshops, hotels, etc.

The sidejacker does not gain access to your specific username and password, but he does obtain the unencrypted session ID that is transmitted over the wireless connection from the website back to you. If the hacker gains access to the session ID, then he can enter the session and gain access to most of the information in your account.

However, sidejacking doesn't attack your computer like a virus or spyware, therefore, the hacker doesn't have access to every piece of your information. You can protect yourself from being a victim of sidejacking by avoiding the wireless internet provided in public places while you're out. If you must use the internet on a public connection, try to avoid checking your bank account and other important accounts. You can check the security settings on your router at home to further protect yourself.

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

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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.

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