When the FTC talks, Google and Facebook listen.  I wote earlier on what the Federal Trade Comission is calling “Economic Stimulus Scams” and thought I’d call into the FTC’s press conference to get the details on how they are handling the issue.  Here’s what I learned.

Eileen Harrington, the acting director of the Bureau of Consumer Protection spoke at the conference and outlined two specific things they’ve seen online that have caused them to take action.

1. Websites: These are the types of sites that I outlined earlier, including “Jessica’s Money Blog” that I mentioned specifically.  These types of sites lead to sites that the FTC says “use photos of President Obama and Vice President Biden to give the appearance of authenticity. Sites also use logos from ABC, CBS, CNBC, CNN, FOX, NBC, MSNBC, USNews and other major media outlets to make them appear legitimate.”
   But there’s more to this.  Ms Harrington ran the numbers on all the charges that follow a cheap “trial” signup if you don’t read the fine print.  It could cost a consumer up to $1,000 in a year if they take the bait on one of these offers!  She also mentioned that canceling the offer is complicated, raising the likelihood of the company making the offer of getting more payments.
2. Emails: This is the really scary part.  I’ve talked about identity theftbefore, and this is just a classic “phishing” scam.  Emails touting a way to get stimulus money lead to sites that lure the consumer into giving up their personal information  and then being targeted for idenity theft.
   To me, this is the much more serious scam and it could lead to thousands of dollars in losses. What’s worse, is that the sites consumers are led to may try to load viruses and spyware onto the victim’s computer. Always be aware of emails that have attachments or links to other sites.  Don’t give out personal info unless you are sure where it’s going.

Facebook and Google have been running ads for companies and affiliates offering some of the website-based scams and both companies have worked with the FTC to remove the ads from their networks.  I’ve noticed them gone from Facebook and virtually elimitated from Google.  Facebook and I believe Google had reps at the press conference to answer questions.

Harrington refused to comment on any “non public investigation” that were ongoing, citing that information would be made public when charges are officially filed.  The FTC also seemed to be working with Google and Facebook to find people who ran such sites.

That does raise a question, both Google and Facebook willingly ran such ads (I pointed out a Google ad I saw just yesterday) and profited from the activity.  Will they be held accountable as well?

Harringtion did point out some valulable tips about grants, the stimulus and the FTC:

• Government sites end in “.gov”  If you’re on a site that ends in something else and tries to give the impression that it’s a government site, it isn’t.
• You never have to pay to get grant money.  In fact, you can get a list of grants at grants.gov.  
• Information on the stimulus and how the money is used is available at recovery.gov.
• If you see something online that looks like a problem, you can report it at The FTC website. 

It will be interesting to see what falls out of this conference.  Big players like Google and Facebook have gotten involved, so I think there will be prosecutions and likely a change in the way advertising is done online.

Just how safe is your identity?  Identity theft is all over the news, but I wanted to learn a little more about how prevalent this crime actually was, so I did a little research and came up with some stats to make it seem a little more real, and it wasn’t exactly encouraging.

Prevalence of Identity Theft: By The Numbers

• The average amount obtained during a theft was $1,882: That’s quite a bit. The good news is that banks will usually cover the charges if identity theft happens.  The bad news is you’re in for a bit of a shock once you find out it’s going on.
• Victims had to pay about $371 out-of-pocket expenses: There still are expenses, such as payment of fraudulent debt, wages lost, legal fees and other costs.
• 1 in 10 had to spend at least 55 hours resolving the problems caused by identity theft:  Many didn’t have that bad of a problem, but those who got hit hard took a long time to set things right.  1 in 20 had to spend 130 hours or more!
• The total obtained by thieves was $15.6 billion: That’s getting close to government bailout size money.  To put it in perspective, that’s almost six times what Forbes magazine says Donald “You’re Fired” Trump is worth.
• 8.3 million people in the US were ID theft victims: That’s as if the entire populations of Los Angeles, Chicago and Philadelphia had their identities stolen in a single year.

I got these stats from the Federal Trade Commission’s 2006 summary. That’s a little dated, but based on current news reports and how easily your identity is stolen, I only assume that identity theft is more prevalent.  Not to mention all the ways identity thieves conspire to sell your stolen data these days.

Fortunately, there are things you can do, such as check your credit reports yearly at www.annualcreditreport.com or by signing up with a credit monitoring service, such as one of Equifax’s credit monitoring products (that’s what I use) or one of the many others out there.  I want to be able to catch things before they get out of hand.

What’s your experience with identity theft?  Got any statistics?  Let me know in the comments below…

Your identity may be for sale to the highest bidder.  The fact is, not all people who are out to pilfer your data are planning on using it themselves.  Often people make a career of stealing ids make their living selling that data to others, rather than going through the process of converting that data directly into cash.

It makes sense, as with many types of trade, people learn to specialize in one task and let others specialize in another part.  But the unfortunate thing is the high level of automation that’s been brought into the exchange of personal data.  There really are many marketplaces where crooks can make a living off of the good name of others.

Hackers run secret websites to sell your stolen information. Everything from credit card numbers, to all the data needed to fully assume your identity can be made available online for sale to the highest bidder. Take for example this story from Wired Magazine about one hackers attempt to take over all sites that were selling data to make one mega site. Fortunately, he’s out of business, but it certainly also opened up the door for replacement sites.

Like with all organized crime, the law enforcement sets up sting operations to fight this activity, but like all organized crime, it’s a game of cat and mouse, leaving your identity continuously vulnerable to folks who want to pilfer it and trade it.  The FTC says the average amount a criminal gains in a theft is $1,882*, which makes a single theft quite lucrative.

What’s someone to do about all this?  As always, one should check their credit report every year at a site like www.annualcreditreport.com, but the fact is, criminals can do a lot of damage in a hurry with stolen data, so it’s always worth looking at a paid identity theft prevention option as well.

* From the FTC’s 2006 Identity Theft Survey Report

Who’s in your wallet? It might be more than a some dead presidents and a few bank logos.  Identity theives have gotten rather creative when it come to getting your information, so I thought I’d outline some of the ways they do their dirty deeds so we can defend against them.
 
So without further ado, here’s a list of common ways your identity can  be stolen (and some proposed solutions):

1. Dumpster Dive – Identity theives turn your garbage into gold by grabbing your discarded statements, pre-approved card offers or anything that might have your personal data.  Solution: destroy documents, including unopened offers before tossing them.
2. Skimming – When you give your card to a waiter or cashier who’s up to no good, they may swipe your card twice, “skimming” the data off of your card’s magnetic stripe so they can make a fake card.  Solution: Be aware of who’s using your cards and how.  Check your card statements and immediately report any fraud.
3. Going Phishing – Nearly everyone has gotten an email from X bank or Y credit card claiming there’s a problem, and if you could just click a link and log in, everything would be fine.  Solution: Just say “no.”  You can verify an email is legit with the site, install software that checks for bad sites, type in the site name rather than clicking the link in the email or just realize that if an email from someone you don’t know personally is in your “Spam” folder, it’s probably there for a reason.
4. Shoulder Surfing – This is ultra low-tech snooping.  Ever anounce your credit card number and expriation or SSN over the phone where others could hear?  Ever punch in your PIN so someone could see it?  Well, if you do, someone can get the inside track on your data.  Solution: Keep it (your voice) down and keep it (your fingers) covered.
5. The Job Rob – This is one I hadn’t heard of before.  Someone presents you with a fake job offer, you reply with a full resume with your home address, phone and who knows what else.  Solution: Use reputable job sites, use the “confidential search” feature they offer to keep your data private until you verify the recruiter.
6. Gone, But Not Forgotten – Where is that old PC you threw out last year?  A land fill?  Possibly a hacker’s basement?  In a variation of the dumpster dive, high-tech hackers can revive your old disk drive and pick through your data — even files you thought were erased — and get the info the need.  Solution, destroy old disk drives and/or “wipe” them clean before you get rid of or sell them.
7. Alice Doesn’t Live Here – The thief falsely forwards your mail somewhere else and takes your data.  Solution?  Be aware of your mail situation.  If it stops for a few days, check with the post office and your cards to make sure your address information is right.
8. Social Engineering – You’ve got to be smooth to pull this one off, but it has been a favorite of hackers for years.  The thief just smooth-talks his or her way into getting the target to give up information.  Solution: No tech support person will ask you for your password  Be very aware of who you are talking to.  Don’t give your credit card number out on a call you didn’t originate.
9. The Search Is On: I wrote before on how Google can get you fired, but it’s really any web site, especially social sites where people feel they should give away far too much personal information.  Theives just start searching and find someone with loose lips.  Solution: Don’t just give it away.  You may think your MySpace page only has a few “friends” but it may have plenty of enemys you can’t see.  If you’re in doubt, don’t give it out.
10. The Hack – Full scale hacker attacks on your PC or big data warehouses.  Solution: You can’t do Choice Point’s job for them, but you can install virus protection and other software to keep your PC safe.
11. (Bonus Item) Actual Theft – Pickpockets and other thieves actually take your wallet or purse but do far more than the old school grab-the-cash-and-toss-the-rest routine.  They can just start trying to use your data and cards right away.  Solution: Know where your wallet is and report any theft to the police, banks and anyone else who needs to know.

My solutions aren’t foolproof, and you should look for even more ways to keep yourself guarded.  What’s a little depressing is that it isn’t all under our control as so many organizations have a piece of the data that defines us as, well us.

Later, I’ll get out a post on how to deal with theft once it’s happened.

Got an ID theft story?  Know some other tips to keep us protected?  Let me know in the comments below.

What better way to start off the new year than by taking care of some personal finance matters?  OK, that might not sound like the most exciting thing in the world, but by summer, you’ll be more likely to spend a worry free vacation knowing you’ve handled a few of the basic issues back in January.

I’ve compiled a short list of good personal finance links I think most everyone should visit, separated into both free and pay links.  I think they are all worth paying a visit to.  Here’s the list:

Free Links

• Do Not Call List: Keep the telemarketers at bay by registering your number here.  Registration is permanent and should curb most calls.  There are loopholes, such as political campaigns and surveys, but I hardly get virtually no sales calls now.  https://www.donotcall.gov/
• Opt Out Prescreen: Sick of the credit card offers?  You can opt out of the pre-screen list, getting you out of most of those mail credit card offers.  It might also be a way to fight off one source of identity theft. https://www.optoutprescreen.com/
• Annual Credit Report: You can get one report per year for free.  I think that it’s not a total solution, but it’s worth checking what’s on your report so you can correct errors and see if someone’s been using your report for their credit. https://www.annualcreditreport.com/cra/index.jsp
• Mint: Mint is personal finance tracking software and it’s pretty slick.  They’ve updated since my Mint review, including a new iPone app. http://www.Mint.com

Pay sites:

• Identity Protection: With identity theft on the rise, it’s smart to have a solution that works for you 24/7 to make sure thieves are at bay.  The annual credit report I mentioned is great, but a LOT can be done with your identity in far less than 12 months. ProtectMyID is run by one of the biggest credit agencies out there, so they have a lot of experience behind them.  Try it free for 30 days and see if it makes a difference.
• Big Crumbs: I started shopping at BigCrumbs a while back and think it’s pretty slick.  The idea is simple - they offer you a rebate for things you buy though the site.  Think of it as a coupon site, except you don’t need to search for the right coupon, you just shop and get money back.  Tip: sign up as a CrumbSaver and you’d get more money back on what you buy.  Unless you’re really going to get a lot of referrals, it’s the best route.

That’s the sites I have so far.  What sites do you know of?  feel free to comment below.