idSafeUSA - ID Crime Wire™

Fair Credit Reporting Act 
Reputation Matters
FTC                                Staff                                    02/015/2012

 
The FTC has alerted marketers of six mobile apps used for background screening that they may be violating the Fair Credit Reporting Act (FCRA). If the apps marketers have reason to believe their background reports are being used for employment screening, housing, credit, or similar purposes, the FTC said, they must comply with FCRA, which was designed to protect the privacy, and ensure the accuracy, of consumer report information.

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Consumer Fraud 
Matters of interest
FTC                                Staff                                    02/015/2012

 A telemarketing operation that allegedly charged people hundreds of dollars for phony promises to provide low-interest credit has had its assets frozen at the FTC’s request. Premier Nationwide Corporation allegedly cold-called people, saying it could consolidate their debt onto a low interest credit card or reduce the rates on their current cards for an up-front fee of $149 to $599. But the up-front fees weren’t legal, and the people who signed on got a list of banks they could apply to on their own, or were told they’d have to pay even more. For many, the promised refunds were denied.

Asset Acceptance LLC Settles for $2.5

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Collection Agency 
Debt Buyers Pay up
FTC                                Staff                                    02/014/2012

One of the nation's largest consumer debt buyers has agreed to pay $2.5 million to settle FTC charges that it broke the law trying to collect old debts. Asset Acceptance, LLC, buys unpaid debts — often for pennies on the dollar. The debts might be more than a year past due to more than 10, making some too old to be legally enforceable. Asset Acceptance not only didn’t disclose that fact to consumers, but also didn’t tell them that a partial payment could reset the clock on the collector's ability to take legal action. It also didn’t conduct reasonable investigations when debts were disputed, the FTC says.

Today's Q&A

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Free ID Protection & ID Reports
Today's Q&A
idSafeUSA.com                                   Chad                                     02/14/2012

I heard you can’t stop ID Crime.  Is that true? For certain types of ID Crime the answer is True.  For example we can’t protect every data base storing our person information from a data breach.

However it’s also true Free ID Protection & ID Reports stops ID Crime dead in its tracks with before it gets personal.  Every time.

DATA BREACH-CYBER CRIME - Small businesses should ensure insurance coverage for cyber security breaches

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DATA BREACH-ID CRIME 
Small businesses should ensure insurance coverage for cyber security breaches 
Washington Post                                   J.D. Harrison                                     01/07/2012

Sure, you can install antivirus programs. You can even go a step further and encrypt your data and heavily protect your passwords. In fact, these are but a few of many steps business owners can take to prevent cybersecurity breaches and subsequent data theft. But they aren’t foolproof.

Cyber criminals are advancing as fast as the technology built to stop them, and small firms are becoming increasingly vulnerable to attacks. Thus, one expert says small-business owners should also consider whether their insurance policies would cover the losses and damage.

 “Most small-business packages don’t cover data breaches or really anything data related,” said Matt Cullina, chief executive of Identity Theft 911, a business and data risk management firm.

So how do you know whether your firm needs such coverage?

Start, Cullina says, by taking the appropriate preventive measures — password protection and data encryption — and not just because insurance companies will want to see due diligence.

Independent retailers are especially vulnerable, as they often handle tons of credit-card data on a day-to-day basis, but professional services firms such as law firms, accounting companies and dentistry practices are often blindsided by massive data breaches.

Most policies have two levels of coverage. First-party coverage accounts for the costs the business would have to lay out to respond to a loss of clients’ or employees’ private information.

Companies handling lots of private information may want to add third-party coverage, which usually covers legal defense costs. Those policies may also cover fines and penalties, as well as forensic costs, which would come in handy for those hoping to catch the cyber crooks who broke into their system. End repost.

DATA BREACH-MEDICAL ID CRIME - Health Care Data Breaches Significantly Increased in 2011

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DATA BREACH-MEDICAL ID CRIME 
Health Care Data Breaches Significantly Increased in 2011 
Data Breach Legal Watch                     David J. Shannon                     01/05/2012

The Ponemon Institute just released their second annual benchmark study on patient privacy and data security. Not surprisingly, the study demonstrates that data breaches significantly increased in 2011. A number of key points can be found in the study’s findings. 

One of the more interesting findings was the increased use of unsecured mobile devices in the health care industry. Since these devices generally contain Protected Health Information (PHI), the potential for even more data breaches occurring in 2012 is high, as the devices can easily be lost, stolen or otherwise accessed. 

Other key findings in the research paper are as follows:

• Data breaches have increased 32% within healthcare organizations since 2010. 

• 49% of the participants in the survey admit that their organization does nothing to protect their mobile devices from a data breach. 

• More than half of the respondent organizations did not have sufficient policies that prevent and/or deter data breaches. 

• The economic impact of a data breach has increased more than 10% from 2010. On average, a data breach has an economic impact of $2.2 Million Dollars. 

• More than 35% of the respondents indicated that data breaches were discovered by patient complaints not the healthcare provider. 

Finally, the study found that a large number of healthcare providers cite economic restraints as a major role in a providers’ failure to properly implement data breach prevention policies and procedures. With the economic struggles in the United States and Europe continuing, healthcare providers will likely continue to face significant obstacles when attempting to implement a proper data security program. 

Clearly, these economic constraints will play a part in more health care related data breaches. A key question that the healthcare industry will have to address in the coming year is how to prevent data breaches when faced with these budgetary issues as well as PHI contained on more mobile devices. End repost.

IDENTITY THEFT-ID CRIME - Chandler man indicted for credit card fraud, back fraud and ID theft over pizzeria invoice

idSafeUSA - ID Crime Wire™

IDENTITY THEFT-ID CRIME 
Chandler man indicted for credit card fraud, back fraud and ID theft over pizzeria invoce 
The Associated Press                                   Staff                                               01/06/2012

PHOENIX — A federal grand jury in Phoenix has indicted a Chandler man for wire fraud, credit card fraud, bank fraud and aggravated identity theft.

Stephen Colter Dustin alleges that during September and October 2010, he used credit cards belonging to others to submit more than $275,000 of fraudulent charges from a Scottsdale pizzeria that he operated.

A 25-count indictment against 32-year-old Stephen Colter Dustin alleges that during September and October 2010, he used credit cards belonging to others to submit more than $275,000 of fraudulent charges from a Scottsdale pizzeria that he operated.

In an attempt to make the charges appear legitimate, Dustin allegedly submitted fake invoices to the credit card companies suggesting that Jac's Pizzeria had provided catering services at several large events. The indictment further alleges that Dustin obtained approximately $75,000 from the scheme before the credit card companies closed their accounts with Jac's.

Dustin was arrested Thursday and released pending trial. It's unclear whether he has legal representation yet. End repost.