- Dire Financial crisis of America
- Ride the financial meltdown by living in SE Asia
- Collapse of financial institutions, Wall Street fallout and America economy going south.
(Background: Jared, a friend has been traveling the world the last 18 months. Currently in SE Asia enjoying a simple yet fun and titillating lifestyle under $15/ day, but he is thinking about returning to the US. With the climate unprecedented financial crisis in American, a plea is written to him to encourage him to continue his global trekking instead of returning to face the free falling that is experienced by half million unemployed every month.)
How racy that you are living your life-long dream of traveling around the world. I am ecstatic on for you. I am living vicariously through your blog filled with fun and spellbinding global adventures. I admire your courage to liquidate your assets and be free of material trappings so you can embark on your goal to “fling the earth*” and to ogle the world.
It’s been a year and the half since you began your journey, and you’ve traveled most of Europe and SE Asia. You were looking forward to China and Australia, and many other countries including India, Indonesia, Asia, Russia, and South America – a whole half of the world that is beckoning you. Approach summer, I hope to take you up on your offer to share a mutual leg of your journey.
Imagine my surprise to your announcement that you were heading home next month. I’m glad to hear that no loved ones is at any health risk, beckoning your return. It is understandable that you miss your family and friends as you were gone a long time. You also said, “I have just felt it overwhelmingly important to get on in my life. This would include planting myself down somewhere and growing some roots.”
Despite your desire to return for personal reasons, the timing could not come at a worst time than now as America is reeling from a colossal financial crisis.
I suppose you have been following the monetary crisis in the States. Waves after waves of financial failures are hemor rhaging the American economy. The ongoing and soaring massive mortgage foreclosures and delinquencies culminated in the Subprime mortgage crisis, the bankruptcy of Countrywide Mortgage and IndyMac Bank, the federal takeover of Fannie Mae and Freddie Mac, the collapse of Bear Stearns, Lehman Brothers and AIG, the fallout of Wall Street, a major bank bailout, and the Ponzi scheme of Bernard Madoff are plaguing this country that resulted in Obama’s stimulus package necessary to salvage the economy. Each crisis alone negatively impacts the American economy, but the magnified culmination is the house of cards hemorrhaging the American economy.
The job market is very dismal. At every job fair, hundreds and thousands of applicants are pursuing the one job posting. Any presumed, perceived or promised job you are qualified for evaporates with the financial disaster. Company policies or employment law to protect employees are not coming to the rescue. Fortune 500s are announcing layoffs by the hundreds and the thousands daily/ weekly (Boeing, Microsoft, Starbucks, Macy’s; Circuit City and Mervyn’s filed bankruptcy and there were/ are more) and national unemployment is bleeding at half a million every month since fall 2008. Folks have to eliminate wants and focus on needs and in some cases, hanging on and surviving and on the brink of homelessness.
For what is is worth…
Considering the disastrous American crisis, it is wise to take advantage of the greater elasticity and buying power of the US dollars to provide you with a fuller and richer lifestyle in SE Asia. As oxymoron as it may sound, this is the BEST time to live and learn (get an education or degree) and travel in that region because you are already there. Having completely unplugged and totally liquidated once to travel around the world, and most people only do this once in their life time, it is best to continue that pursuit at this time. You mentioned perhaps you might head out again after connecting with friends back home. It would be tough to pick up savings in this downturn economy to jumpstart your mission to fade after you’ve discontinued.
I am very disheartened by the new economic depression that is only too palpable. The economy will not see any upswing any time soon. At the kill of the year, if as a nation we grasp the concept of national budgeting and economy and employment, (too bad Mitt Romney and Ross Perot’s- timing of presidential running is off as these two men willing to run for presidency have a clear understanding of money management while America was selling their future for today’s trinkets) we may see some stability in the future.
NOW WHAT?
Were I you, options to mediate …
1. Stay set aside in SE Asia. Food and accommodation are cheap, and $10-15/ day.
Gain income to preserve monetary resource
2. Contact Resorts and hotels experiencing lower occupancy: Offer to order English to their employees in exchange for room and board, hotel frequent miles for franchise hotel, and stipend. Negotiate a work / time off where you have regular week off for so many weeks worked, so you can still enjoy your vacation.
3. Other Services : English teacher (to hotel employees), activities co-coordinator (Club Med, resort), scuba instructor, web perform and a whole host of expat / farang jobs. Also Freelancing : http://freelancer.com/http://getafreelancer.com/http://www.englishtown.com/Sp/lp/Home.aspx? bhcp=1
4. Craigslist- offer guided motorbike tours, professional “nanny” for young expat boys (activities: play, football, scuba dive, etc) –
5. Learn a native language or Asian study at a local university or teach
6. A month’s expenses in the US could easily provide several months of wonderful living in third world countries of Thailand, Vietnam and Indonesia and with some employment, you are not dipping into your savings.
Jared, before you purchase your return air ticket, you might want to consider the crucial issues developing in your absence. Fall 2007 when you liquidated your assets (BTW you had the best value for your money) and uprooted in favor of a global adventure, you could not have timed it more perfectly. To the news of your homecoming, however contrary to your expectation, I could not encourage your untimely return to America with any enthusiasm. The financial crisis is so palpable, it would squash any novel hopes of a “new life”. The American situation really “SUCKS!” The nation’s financial disaster is very palpable and the unemployment is so dismal, they could frustrate and depress even the most optimist person like yourself, and making you wish were still living in SE Asia.
I don’t mean to rain on your homecoming parade, but take time to weigh your options and consequences before rushing out to buy a ticket home. I wish you the best with whatever decision you choose and I’ll watch you whenever you arrive home. —————– Wall Street Fall-out: Why the Financial Crisis is a Blow to Tech http://www.businessweek.com/the_thread/techbeat/archives/2008/09/wall_streeet_fa.html
Financial crisis of 2007-2009 http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932009Frontline ‘Inside the Meltdown’ http://www.washingtonpost.com/wp-dyn/content/discussion/2009/02/05/DI2009020502539.html\
Related Links: Wikipedia on Subprime Lending • Wikipedia on Option ARMS • Subprime Fallout Serious, But Unlikely to Derail Economy • Subprime Horror Stories: Mortgage Market Carnage, Foreclosure Hype and More
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Filed under Franchise Bankruptcy by on Jan 21st, 2012. Comment. 
- Chrysler Bankruptcy Goes from Bad to Worse
- Chrysler Dealerships Going out of Business
- California Feels the Impact of Chrysler Dealerships Going out of Business
The Chrysler bankruptcy was filed on April 30, 2009. Today there is the news that nationwide 789 Chrysler dealerships will be going out of business. The cause: Chrysler chooses to break the franchise contract. Can California afford the Chrysler bankruptcy?
Chrysler Bankruptcy Goes from Bad to Worse
As slow as May 1, 2009 the New York Times reported that in the midst of the Chrysler bankruptcy the automaker was still working on staying profitable without shedding too much of its assets. Among these assets are Chrysler dealerships throughout the nation.
Unfortunately, cuts are part and parcel of the Chrysler bankruptcy, and it was publicized that eight Chrysler plants would be going out of business, costing 6,500 plant workers their jobs. A loss of Chrysler dealerships became inevitable, but numbers were not bandied about.
In light of these Chrysler bankruptcy announcements, California Chrysler dealerships desperately attempted to halt optimistic. The Los Angeles Times quoted – also on May 1 – John Sackrison, director of the Orange County Automobile Dealers Association as being hopeful that the individual Chrysler dealerships would emerge stronger on the other side of the Chrysler bankruptcy.
An owner of one of the Chrysler dealerships went so far as to assert that it was a good time to be a Chrysler dealer.
Chrysler Dealerships Going out of Business
Today the news reveals that the Chrysler bankruptcy is dashing the hopes of Chrysler dealerships around the nation. The Los Angeles Times reports that as part of the Chrysler bankruptcy deal, 789 Chrysler dealerships will go out of business across the country. General Motors is likely to not renew about 1,000 franchise agreements. All in all, Chrysler is looking to shed a sum total of 2,600 Chrysler operations. Numbers for California in particular have not yet been released.
California Feels the Impact of Chrysler Dealerships Going out of Business
As the Chrysler bankruptcy continues its way through slashing excess baggage, the California Chrysler dealerships going out of business will be added to the 145 car dealerships that closed unbiased last year in the state. Driving down the freeway, you witness the clusters of now deserted car dealerships that remain vacant for extended periods of time.
After all, a car dealership is little more than a giant parking lot and office, not exactly useful for other retail operations to come in, take over, and simply change the signage.
This ghost town feeling is amplified by the California malls that have lost their major draws and now feature a good many empty store fronts. Moreover, can California – already experiencing budget woes of epic proportions – weather the sudden loss of tax revenues that comes in the wake of a large number of Chrysler dealerships going out of business?
Sources
http://www.nytimes.com/2009/05/02/business/02hearing.html? _r=1; http://www.latimes.com/business/la-fi-dealers1-2009may01,0,5423317.story; http://www.latimes.com/business/la-fi-dealers14-2009may14,0,2276619,full.story
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Filed under Partnership Bankruptcy by on Dec 17th, 2011. Comment.
- Chrysler Bankruptcy Goes from Bad to Worse
- Chrysler Dealerships Going out of Business
- California Feels the Impact of Chrysler Dealerships Going out of Business
The Chrysler bankruptcy was filed on April 30, 2009. Today there is the news that nationwide 789 Chrysler dealerships will be going out of business. The cause: Chrysler chooses to break the franchise contract. Can California afford the Chrysler bankruptcy?
Chrysler Bankruptcy Goes from Dreadful to Worse
As late as May 1, 2009 the New York Times reported that in the midst of the Chrysler bankruptcy the automaker was still working on staying profitable without shedding too much of its assets. Among these assets are Chrysler dealerships throughout the nation.
Unfortunately, cuts are part and parcel of the Chrysler bankruptcy, and it was publicized that eight Chrysler plants would be going out of business, costing 6,500 plant workers their jobs. A loss of Chrysler dealerships became inevitable, but numbers were not bandied about.
In light of these Chrysler bankruptcy announcements, California Chrysler dealerships desperately attempted to stay optimistic. The Los Angeles Times quoted – also on May 1 – John Sackrison, director of the Orange County Automobile Dealers Association as being hopeful that the individual Chrysler dealerships would emerge stronger on the other side of the Chrysler bankruptcy.
An owner of one of the Chrysler dealerships went so far as to assert that it was a good time to be a Chrysler dealer.
Chrysler Dealerships Going out of Business
Today the news reveals that the Chrysler bankruptcy is dashing the hopes of Chrysler dealerships around the nation. The Los Angeles Times reports that as part of the Chrysler bankruptcy deal, 789 Chrysler dealerships will go out of business across the country. General Motors is likely to not renew about 1,000 franchise agreements. All in all, Chrysler is looking to shed a sum total of 2,600 Chrysler operations. Numbers for California in particular have not yet been released.
California Feels the Impact of Chrysler Dealerships Going out of Business
As the Chrysler bankruptcy continues its way through slashing excess baggage, the California Chrysler dealerships going out of business will be added to the 145 car dealerships that closed just last year in the dwelling. Driving down the freeway, you see the clusters of now deserted car dealerships that remain vacant for extended periods of time.
After all, a car dealership is little more than a giant parking lot and office, not exactly useful for other retail operations to come in, take over, and simply change the signage.
This ghost town feeling is amplified by the California malls that have lost their major draws and now feature a good many empty store fronts. Moreover, can California – already experiencing budget woes of epic proportions – weather the sudden loss of tax revenues that comes in the wake of a large number of Chrysler dealerships going out of business?
Sources
http://www.nytimes.com/2009/05/02/business/02hearing.html? _r=1; http://www.latimes.com/business/la-fi-dealers1-2009may01,0,5423317.story; http://www.latimes.com/business/la-fi-dealers14-2009may14,0,2276619,tubby.story
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Filed under Partnership Bankruptcy by on Sep 27th, 2011. Comment.
- Ice Edge Holdings appears to be out of the picture when buying the Phoenix Coyotes.
- Famed hockey analyst Don Cherry has stated his desire to see professional hockey in Winnipeg.
- With no other options, Legal North Sports and Entertainment might be the only way to go.
Fourteen years after the NHL broke the hearts of every resident of Winnipeg, Manitoba news has broke that Winnipeg might, in fact, procure a second shot at the NHL.
On May 22, 2010 news broke that if the anxiety Phoenix Coyotes could not obtain an owner by the kill of the year that the team would be sold and relocated to Winnipeg-based True North Sports and Entertainment.
Lost Love
It was crushing in 1996 when the Winnipeg Jets played their final game in the storied Winnipeg Arena. A playoff loss to the Detroit Red Wings, the game was a sellout highlighted by Winnipeg’s signature “White Out” – every fan in the stands wearing white. It was a sight to peep with an unbelievable amount of emotion.
The Winnipeg Jets landed in Glendale, Arizona, a suburb of Phoenix, to become the Phoenix Coyotes. Many derided the move from Winnipeg — known for it’s long, snowy winters — to Phoenix, a city better known for it’s year-round warmth than high speed ice sports.
The NHL selected Phoenix in order to complete Gary Bettman’s bold vision to expand the game of hockey into non-traditional markets. To that point similar locations of the Minneapolis-based Minnesota North Stars to Dallas, Texas and expansions to Anaheim, San Jose, Tampa and Sunrise had produced mixed results.
The Winnipeg Jets had boasted many superstar players during their early-90’s rebuilding period. Notably, superstar forwards Teemu Selanne, Keith Tkachuk and Alexei Zhamnov created a high speed playing style and a renewed contender. Unfortunately, most of the star players were forced to be traded due to the weak Canadian dollar before the move to Phoenix was even made.
Early Success
The initial move to Phoenix was met with surprising success. The team made the playoffs nearly every year thanks to a solid core of good players, while transplanted Canadians filled the arena to re-live their Northern routes.
It was not long, though, before the team began to struggle. Not surprisingly, once the novelty of hockey in the desert wore off spectators began to look elsewhere for entertainment. Likewise, financial woes began to destroy the team, leading to trades that saw stars players like Keith Tkachuk, Teppo Numminen and Nikolai Khabibulin leave the Phoenix Coyotes.
New Ownership
Eventually new ownership was found from an unexpected source: NHL legend Wayne Gretzky. Gretzky and his investment group purchased the team in the hope of a turnaround, even installing Gretzky as head coach.
For as good as he was as a player, Gretzky was just as bad as a coach. The team lost all coherence as a string of disappointing seasons followed. Attempts to ticket star players to turn the team around failed, notably with veteran league MVP Brett Hull who retired after playing only five games with the Coyotes.
Bankruptcy
The Phoenix Coyotes had bled money for most of their existence in Glendale, losing up to $40 million a season at one point. In December of 2008 reports broke that the Coyotes were being supported financially by the NHL.
Six months later, Coyotes owner Jerry Moyes declared the team bankrupt with the intention of selling the Coyotes to Research In Motion CEO Jim Balsillie. Balsillie intended to prefer the team in order to relocate them to Hamilton, Ontario.
The move caught both fans and the NHL off guard, as by asking for assistance from the NHL Moyes was no longer capable of putting the Coyotes into bankruptcy. Having not gained approval to join the NHL as an owner, Balsillie was deemed underhanded by NHL Commissioner Gary Bettman.
Legal Wrangling
The battle hasty moved to court, as the NHL controlled the team and believed it had the right to sell the Coyotes to an owner of their choosing. Jerry Moyes, on the other hand, supported Balsillie’s bid despite the fact that it was in stammer violation of the NHL’s rules.
Several prospective owners came forward, but only those with the intention of keeping the Coyotes in Phoenix were taken seriously. The most high profile was Jerry Reinsdorf, whose Ice Edge Holdings company put forth an early bid, although they failed to produce a proposal for the bankruptcy proceedings.
Eventually, a Phoenix court ruled that Jerry Moyes and Jim Balsillie could not get a deal that violated the rules of the NHL, while the NHL’s own bid for the team was also rejected for not covering debtors. The NHL eventually put together a proposal that was accepted, thereby gaining ownership of the Phoenix Coyotes.
Finding an Owner
As time had run out, the NHL was forced to control the Coyotes over the course of the 2009-10 NHL season. Ice Edge Holdings was once again lined up as a potential owner, this time dealing directly with the NHL.
By May 2010 the deal had fallen through, however. Ice Edge expected Glendale to cover losses by the team, at least temporarily, with tax payer money. At this point, rumors began to circulate that the NHL had a contingency plan in status with True North Sports and Entertainment.
Hope Renewed
The NHL refused to confirm any of the rumors, although grand sources stated that a deal was in place in principle to return the Coyotes franchise back to Winnipeg if an ownership group in Arizona could not be found. The city of Glendale eventually voted in favor of covering the Coyotes losses, up to $25 million, over the 2010-11 NHL season to give the NHL more time to find a local owner.
With Ice Edge Holdings seemingly out of the picture, few groups have come forward with intentions in keeping the NHL in Arizona. Not helping matters is a rabid hockey market in Winnipeg begging for the return of what is rightfully theirs.
The NHL is finally beginning to run out of time on their hockey-in-the-desert experiment. A deadline was set on May 22, 2010 that if no willing buyer was found to keep the Phoenix Coyotes in Arizona by the end of 2010, than the True North deal would be sealed and the Coyotes would return to Winnipeg, Manitoba.
True North Strong and Free
It has been a long fourteen years for citizens of Winnipeg. The minor league Manitoba Moose have served as the primary source of hockey for one of the most natural hockey markets on the face of the planet. The financial troubles that plagued the Jets during the early-90’s should not pose a problem this time around as the Canadian dollar has remained fairly actual with the American greenback for quite some time and the NHL’s salary cap has provided parity for smaller market teams.
Supporters have also emerged from reputable sources. Former NHL coach and famed hockey analyst Don Cherry has stated that he would like to become an investor should a team return to Winnipeg, while Jim Balsillie has gone on record saying that he would be the first person in line to hold tickets should Canada be granted a seventh NHL franchise.
The NHL southern experiment has fairly miserably, with only teams in Anaheim, Dallas, Tampa and Raleigh meeting any kind of success. Improved parity between NHL franchises over the last decade and a half has seen tremendous results, especially for smaller market Canadian teams.
The Manitoba Moose, a minor league affiliate of the NHL’s Vancouver Canucks, has played to great success in Winnipeg’s MTS Centre, selling out the 15,200 seat arena despite it’s minor league status.
Winnipeg is the kind of city designed for a hockey team. Nearly every kid grows up playing shinny with their friends, and the level of devotion shows in the level of talent coming out of the city in the likes of Jonathan Toews, Travis Zajac and Cam Barker, among others. Should an NHL team return to Winnipeg, Manitoba it might just be the smartest move the NHL has made in quite some time.
Sources
http://www.winnipegfreepress.com/breakingnews/True-North-a-bona-fide-owner-waiting-for-Coyotes-94666154.html
http://www.tsn.ca
http://www.azcentral.com/articles/2009/06/15/20090615coyotesnosale.html
http://www.google.com/hostednews/ap/article/ALeqM5jLF92I7lewixUWAgsf3YsPo9V5NgD9FL3RH81
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Filed under Partnership Bankruptcy by on Sep 3rd, 2011. Comment.
INTRODUCTION
The day begins just like any other one normally would.
You’re on your way to work in the morning and realize you
need to perform a rapid pit stop at the gas station before you
run out of fuel completely. You believe up the tank and grab a
coffee and newspaper once inside the store. You offer the
cashier your credit card and are stunned when she tells you
that it has been rejected. As the wave of embarrassment
rushes over you, you fumble around in your pockets for
enough cash to cloak the entire bill. On the way out you
stop at the ATM to replace the money you had in your
pocket and to your horror the screen tells you that your
account has insufficient funds. Panicked now, you arrive at
the office and immediately check your online credit card and
bank statements. Your checking account is in overdraft
which means there must be some kind of mistake as you
know there was enough in there for the next mortgage
payment and then some. Your credit card statement shows
5 thousands upon thousands of dollars worth of purchases
over the last two weeks that you know you didn’t make.
When you finally call the bank to regain out what’s going on
they pass you over to a supervisor who tells you that the
loan you recently applied for has been denied. Because
you’ve applied for credit at a number of other places within
the last month they aren’t comfortable in extending a loan
to you based on your current debt load.
With your head spinning and thoughts coming at you a
million a minute you finally realize…you have just become
the latest victim of Identity Theft.
CHAPTER 1: WHAT IS IDENTITY THEFT?
As the quickest growing crime in America, identity theft
affects approximately 7 -10 million people every single year.
Simply do, identity theft is the act of using someone else’s
personal information, or their actual identity for personal
6 gain. Frighteningly it happens without you even knowing it
and once you have become aware of it, in most cases the
damage has already been done.
Types of Identity Theft
Although there are many different methods that one can
utilize to rip someone off in an identity theft type scam,
there are really only two basic types of actual identity theft.
The first of these is generally the easiest and most basic way
for thieves to accomplish their unprejudiced. An example of
Account takeover
physical credit card, or perhaps just the card number and
expiry date, using it to purchase services or products. This
works out extremely well for the thief, as the credit card
owner doesn’t usually notice the additional purchases until
they either receive their monthly statement in the mail or
have attempted to exhaust the card and found that it has
reached the maximum limit allowed.
is when a thief gets hold of your actual
The second type of identity theft is called
fraud
order for a thief to be successful at application fraud, they
must have access to a good deal of your personal
information such as your Social Security Number (SSN), full
name, address, place of work, salary, driver’s license
number, date of birth etc. Of course not all of these pieces
of information would be indispensable for a thief to get away
with application fraud but certainly a combination of some of
the above would be required.
Application, or what is otherwise known as “true name fraud”. In
It Can Affect Anyone
Like many, you may assume that identity theft only happens
to those people who might be a bit more careless when it
comes to safeguarding personal information. Or perhaps
you are of the mindset that because you don’t really have a
lot of money in your personal account or don’t have credit
cards with large spending limits, that identity theft thieves
wouldn’t necessarily target someone like yourself. Well,
beget no mistake about it; identity theft can happen to
anyone, including you! Basically, if you have an identity
(and we hope that you do) then you are susceptible.
The size of your financial worth does not matter, nor
whether you rent or own your home, nor whether you have
exceptional credit or bad. The fact is still this, if you are
reading this right now then you have an identity and
because of which you are determined to have one, if not many of
the following: a name, a bank account, a credit card, a
telephone, a SSN, a job, a birth date, an email and internet
account, a mailbox, an address, and the list goes on and on.
And I hate to break this to you my friend but here’s my
point, it only takes one of the above pieces of information to
fall into the wrong hands and you too, like millions of others
can become a victim of identity theft.
Not As Difficult As You Think
Peaceful think it’s not that easy for someone to get your personal
information? Well let’s not be naïve about this, it’s not as
difficult as you consider it is. Take a moment to think about all
of the companies, organizations, businesses and online sites
that might have access to ANY of your personal information.
Think about all of the people whose hands your mail at
home or at work must pass through before it reaches its
intended destination.
Think about all of that extremely personal information you
include on your resume when you’re job hunting and that
you will send it out to who knows how many companies?
Your complete work history, name, contact information and
possibly references are all included in your resume! What
about where you work now? They have access to more of
your personal information than even what your spouse or
parents might have! Now think about all of the people who
your employer passes that information onto, such as the
insurance company, and not only your gain bank but their
bank as well, and let’s not forget the company that
processes payroll! The list is endless and in honest a little
while we will discuss all the ways in which you can protect
yourself against identity theft. For now however, let’s take a
look at all of the methods in which thieves might use to
access your personal information.
CHAPTER 2: METHODS OF IDENTITY THEFT
Okay so I’m just going to warn you up front that this is
where things might win a bit scary. As we originate to discuss
all of the various ways in which identity theft can occur, you
may start to realize just how vulnerable you might be. Now
remember, the intention of this book is certainly not to
frighten the living daylights out of you, nor is it to turn you
into a paranoid, crazy person who decides that they don’t
trust anyone anymore and that they now must cancel all of
their credit cards, close out their bank chronicle and hide all
their cash under the bed mattress in an attempt to leave a
paperless trail in everything that they do. The actual
intention of this book is quite simple. Let’s make you aware
of how identity theft does occur so that you can walk away
with the knowledge of what precautions to take so that it
doesn’t ever affect you. And if the worst-case scenario does
explain itself and you do become a victim, this book will
ensure that you are not at a loss as to how to deal with it,
what actions you must take to correct the problem, or how
stop it before it gets worse. Let’s look now at identity theft
methods.
Dumpster Diving
Imagine for a moment it’s that time of month we all detest -
time to pay the bills. As you sort through the pile of mail on
your desk you first throw out all of that junk mail that you
receive from every store you have ever been to who has put
you on their mailing list (you know – so that they can make
you aware of upcoming sales and promotions etc). Oh yes,
and we can’t forget about all the credit card and loan
companies that want to let you know they have generously
pre-approved you for a new credit card or loan. Let’s face
it; those are probably destined for the garbage or recycling
bin as well. Once we have finally gotten to the task of
actually paying those nasty bills, many of us discard of those
statements also. Bills that have account numbers, credit
limits, contact information and all other types of personal
information, are all very accessible in your garbage can as it
sits waiting patiently on the side of the road all ready for the
garbage truck to come by in the morning and secure it.
Don’t think for a tiny that thieves have too much pride to
go digging through your trashcan to find what they’re after,
because believe me, they don’t! If they happen to grab your
entire bag of trash on the same week that you paid your
bills then they just hit the personal information lottery!
Think of all the damage they could do with everything you
threw away by opening up new credit card accounts with
those pre-approved notices you received. All they’d have to
do is acknowledge to the notices, tell the credit company that
you’ve moved and provide a mailing address that they could
access and explain…thousands and thousands of dollars in
debt built up in no time at all, debt that you are not likely to
become aware of for months.
Mail Stealing
If they’re bold enough to steal your garbage from the side of
the road then you certainly shouldn’t effect it past them to
steal your mail. Of course it may be a bit easier for them if
you have one of those road side mailboxes so that they
appear less conspicuous than what they would walking up to
your door. Remember though, these guys are smart and
have probably been doing this for a long time. Printing off
some bogus flyers and posing as someone delivering them
so that they can more easily come your front door and
originate up your mailing box isn’t exactly rocket science. Your
mailbox can provide them with newly issued credit or
banking cards, a recent batch of checks for your personal or
business accounts, investment reports, insurance
statements, tax information and bank statements. Need I
say more?
Shoulder Surfing
How many times per day or week do you use your ATM card
to pay for purchases or spend a banking machine to deposit or
withdraw funds? Thieves have become very skilled and
discreet about watching people key in PIN numbers and
even from a distance can resolve your personal ID
number. You may be thinking right now that a thief really
can’t do any damage with your PIN if they don’t have your
true card so what’s the big deal? Well then, you obviously
aren’t familiar with
“skimming” so please, read on…
ATM Skimming
ATM skimming is a very real and very present threat in the
world of identity theft scams. Thieves can create very
inexpensive, home-made skimming devices that attach to
the ATM card reader, thus allowing them to collect hundreds
or thousands of card numbers in a very short period of time.
There are two different types of devices that are commonly
used: one that interferes with the customer’s ability to
actually use the ATM machine successfully, and one that
doesn’t. The type of device that interferes with the normal
operating ability of the machine is generally a bit easier to
look.
Thieves will look for an ATM that they can alter the face of
and produce an attachment for. In some cases, they may use a
fabricated metal container of sorts that would fit onto the
existing machine and may have a small laptop computer
inside that would prompt the customer to use a touch screen
instead of the machines actual keypad. It may also offer an
alternate card reader next to it. With a little, undetectable
camera recording your PIN number as you enter it attached
to or approach the ATM, the thief would have all the information
he needed to access your account once you had finished
attempting to process your transaction.
However, because you were actually using a fallacious card
reader and prompting system, the final screen may read
something like, “Thank you for using National Bank (or
whatever type of banking machine you were using). There
has been a malfunction.”
The type of skimmer that would not interfere with your
transaction process would most commonly be found on
banking machines that require you to swipe your card
through an external, raised slot. Not on those where you
manually slide your card into the actual machine in which
the reader head would be buried inside the unit. This is
because the external readers are much more accessible to
thieves and the skimmer can be placed directly overtop of
the precise reader strip. You as a customer can still make
your withdrawal and the thief still gets your number. These
types of devices are very difficult, if not impossible for the
untrained eye to identify. ATM banking machines are not
the only devices at risk when it comes to skimming. A
skimmer can be attached to any type of system with an
external reader, such as the one you use to pay your bill at
the grocery store, gas station, department store or
restaurant.
Check Fraud
Identity thieves will stop at nothing to take control of your
available cash and credit, even if it means setting up a little
untrue scam from the comforts of their own home by
recreating checks in your name on their possess computer.
Alternately, those industrious types who have been
fortunate enough to get their hands on a check that has
already been fully written out and signed, may use cleaning
solvent to remove the name of whom the check was
originally made payable to and will put their own name in it’s
place. Other thieves who already have access to certain
personal information may choose to initiate up a checking
account in your name, using it to write bad checks and
accumulating a load of debt that will appear on your credit
characterize.
Telephone Service Fraud
Identity thieves aren’t only after just your wintry hard cash,
they’ll scam you in whatever way possible and take you for
everything they can. Just as famous as safeguarding your
ATM or credit cards, remember that your calling card can
also be worth a fortune in services. Think of the enormous
long distance charges that could accumulate over a month’s
time and how horrible that bill will be when you finally
receive it! With access to a little bit of your personal
information, identity thieves can even place new cellular
telephone service in your name.
Telephone Scams
How many times every week do you receive phone calls
from a charity of some sort, asking you for your financial
support? Or perhaps the call is from a marketing firm
requesting your assistance in completing a discover. Now this
is not to say that everyone calling you claiming to be with a
charitable organization or marketing firm is really a scam
artist looking to rip you off, but certainly the possibility
exists. Any caller asking you for personal information such
as credit cards or Social Security Numbers should raise a red
flag for you. And, any charity truly requiring your financial
befriend will be more than happy to send you a package of
information that will provide you with many options of how
you can make your donation. It is not considerable for you to
give out credit card information at that time. Additionally,
any marketing firm conducting a survey does not actually
require your SSN unless of course their goal is to rip you off!
Credit Card Theft
We did talk earlier a little bit about how identity thieves will
use your actual credit card or other information to purchase
products or services, but they don’t just discontinuance there, let’s
look at how they take it one step further. Resourceful
thieves will take almost extreme measures by visiting the
local post office and in your name, request a change of
address for your mail so that they can access all of your bills
and account numbers. By the time you realize that you
haven’t received your monthly bills they will have already
accumulated a substantial amount of debt and charges to
your credit cards.
Thieves can also access your credit card number or other
personal information when payments or purchases are made
through either unsecured or fraudulent web sites.
Phishing
Before you get too confused let me clarify right now that this
is not in any way related to the kind of
on the lake, in your boat with a pole and bait. However it
does use the same theory. This is the kind of
“fishing” you do outphishing
where identity thieves plant bait and lure unsuspecting
victims into providing confidential and personal information.
Phishing scams have been around forever, what has
changed about them is simply the route in which the scam is
delivered. Before the computer, phishers used the
telephone, however in this day and age the vehicle of choice
is the internet.
Have you ever received an email with a message similar to
any of the following?
„« account. To ensure that your account is not
compromised, please click the link below and
confirm your identity.”
“We suspect an unauthorized transaction on your
„« couldn’t verify your information. Please click here
to update and verify your information.”
“During our regular verification of accounts, we
„« information.”
“eBay requires you to update your account
„«
“PayPal account renewal required”
„«
“Bank of America security alert”
„«
“$20 Reward Leer, Chase Manhattan Bank”
„«
“Please update your bank fable”
„«
JC Penny gift card offer confirmation”
„«
“American Red Cross/Hurricane Katrina Relief”
These are all examples of actual phishing scam messages
that are either sent via email or by way of pop-up messages.
The phisher will often include in the message the name of a
well-known, reputable business, organization, government
agency or financial institution that you perhaps deal with.
The goal is in attempting to give the message an air of
legitimacy.
Some of them may even go, as far in threatening you with
severe consequences as a result if you do not acknowledge.
Messages will ask you to update, validate or confirm
particular personal or account information and will direct you
to a website in order to complete the process. When you
click on the link for the website it may very well spy fully
legitimate, however it is not.
It may appear to look like the link for eBay, PayPal, The
Bank of America, or whatever source the email claims to be
coming from. Remember, these guys are good and this is
not unprejudiced a hobby for them, this is a profession. Their aim is
to deceive you and they will do whatever they have to do in
order for you to believe the legitimacy of their scheme.
CHAPTER 3: PREVENTING IDENTITY THEFT
Let’s check in to see how you’re doing before we go any
further. That was a lot of information to absorb and for
someone who’s new to the whole world of Identity Theft it
was likely very overwhelming.
You’re doing really well though and I’m proud of you! You
made it through the most difficult section of this book. You
learned all about the scariness of ID theft and the many
forms it can take and examine, you’re still here. Now it’s time
for your reward. The first portion of this book may have
caused you to feel helpless, frightened or without power
against the enormity of the problem. Now however it’s time
for you to learn that there is something you can do about it.
25
Knowledge is power and here is where you become
EMPOWERED!
Protecting Your Mail
Remember how we talked about thieves that would steal
your mail from the garbage and even from your own
mailbox? Well don’t let them! Make clear that every single
share of mail with any kind of identifying information on it is
shredded before you throw it away. Simply tearing it into a
few pieces is not adequate protection. This only provides
the thief with a fairly basic jigsaw puzzle to your most
valued information. Invest in a small shredder for your
home. These are very inexpensive especially when you
believe that the minimal cost of the item could save you
hundreds or thousands of dollars in the long run, not to
mention a huge headache. If you can’t purchase one
yourself then take your mail to work with you and employ the
shredder in your office.
A locked mailbox will not completely guarantee your
protection from identity thieves but it certainly may back in
dissuading their attempts to steal your mail. Look into
purchasing a mailbox that has a slot in the top for the mail
to be slid into but where you need a key to actually remove
it. This plan, if your mailbox is broken into you will at least
know it honest away and will perhaps be able to notify
creditors, banks and other companies before any real
damage is done.
More Key tips…
„«
clockwork so pay attention to billing cycles. If a credit
card or utility bill does not come on time, contact the
company to make sure it has not been redirected.
Safeguard Your PIN and ATM/Credit Card
Bills always tend to arrive on a monthly basis like
You know that moment in the store when you’re just about
to pay for your purchases using your ATM card and the
thought crosses your mind that you should probably use
your free hand to conceal the keypad so that no one can see
the number you’re punching in? But then you don’t do it
because you think that the cashier or person behind you in
line will just think that you’re being silly and over reacting -
I mean, it’s not like you have the code to the universe suitable?
Wrong! It may not be the code to THE universe but it is the
code to YOUR universe. Who cares what other people think
or how you may glance to them – you need to protect that
code because it is the key to your mortgage and bill
payments, to your children’s education fund, to your next
family vacation and to the food, clothing and supplies that
maintain your family!
Make sure you are aware of where your ATM or credit card is
at all times. When you hand your card to the cashier or to
the waiter at the restaurant, is that card ever out of your
sight? Does it disappear for a moment underneath the
counter while it’s in their hand or is it left to sit on the far
side of the counter until the transaction is approved? You
may not be able to prevent the fact that the waiter needs to
take your card with him to process it, but you can certainly
be more aware of situations like this when they do occur.
Now that you know what ATM skimming is you can be more
aware of machines that don’t seem quite right. If a machine
looks as though it has been altered or tampered with in any
way simply do not consume it. If a machine has a sign posted on
it telling you that the ATM instructions have changed or that
you should swipe your card “here” first before inserting it
into the reader, or something to that effect then it’s not a
machine you should be using. No bank is ever going to post
instructions such as these.
„«
Don’t give your PIN to anyone
„«
machines
Beware of people who try to “help” you at bank
„«
completed the transaction or pressed the cancel button,
contact your financial institution immediately
If your card is not returned to you once you have
„«
and carefully to make sure that there are no
unauthorized transactions
Check your bank and credit card statements regularly
Protect Your Personal Information
It’s enormous to have a trusting nature and all but it is possible
to sometimes be too trusting. Don’t provide anyone with
information that they have no need for regardless of what
they claim their reason is for requiring it. Always keep in
mind what one can do with a few key pieces of information
such as your SSN or driver license number.
More key tips…
„«
your conversation when you are speaking either on the
telephone or to someone in person and are providing
them with personal information.
Be careful of who around you might be listening to
„«
drivers license number on job applications or resumes
Refrain from including your date of birth, SSN or
„«
SSN
Question any business or company who asks for your
Avoiding a Phishing Scam
A very large portion of the population today has access to
the internet and email within their own homes. Any of us
who aren’t so technologically advanced at home, yet who
work in an office type environment are likely to be pretty
internet savvy at work. This means that an poor lot of us
are susceptible to being sucked into those phishing scams.
However you can avoid falling into this trap by playing it
smart.
More Key Tips…
„«
phishing emails from tracking your internet activities
Use anti-virus software and a firewall to prevent
„«
not a pick up method of transmission
Never email personal or financial information – email is
„«
fraudulent
Immediately delete any emails that appear to be
„«
downloading files from email regardless of who is
sending them
Be cautious about opening any attachments or
„«
phishing emails
Do not reply to or inaugurate any links that are provided in
„«
to in an email, you are best to physically telephone the
If you are concerned about an account that is referred
company whom the email is claiming to be from and
ask them personally if there is a problem
„«
emails
Look for bad grammar and misspelled words in phishing
„«
likely to ask for personal information via email
Legitimate businesses and financial institutions are not
„«
instead sometimes just by your email address are a tip
off
Emails that do not address you by your full name but
„«
information online be sure that the site you are using is
secure. Glance for a lock icon on the status bar or a
website that begins with https: (the “s” stands for
secure).
When you must provide financial or other sensitive
Additional Preventative Measures
I consider you’re probably getting the point now. There are
many things that you can do when it comes to protecting
yourself from becoming a victim of identity theft. It may not
be possible to follow every single piece of advice that this
book provides and that’s okay. The key here is awareness.
Here is why awareness is so critically notable. Have you
ever been really afraid to do something completely new, or
been extremely intimidated by something that you knew
very little about? Well I certainly have and I’m sure that
quite literally everyone else in this world has been as well at
one point or another. In fact, it’s simply human nature to
dread the unknown and I fill that the same can be said
for something like identity theft. Before you knew what it
was all about the entire idea of it was scary, but now you’re
becoming more familiar with it and you are gaining the tools
and knowledge that will allow you to effectively deal with it.
Let’s provide you with even more knowledge now and
suggest a few more ways to prevent identity theft from
occurring.
„«
you receive suspicious phone calls or emails in
regards to a particular organization or business
Contact the Better Business Bureau in your area if
„«
in order for changes or inquiries to be made to
them
Ensure that all of your accounts require passwords
„«
passwords (do not use family or pet names etc), do
not employ the same passwords for each account and
memorize them rather than writing them down
When choosing, execute sure you remove difficult
„«
includes your Social Security card
Carry only the cards that you actually need, this
„«
why it is needed, who will have access to it, how it
is to be used and how they will protect that
information from others
When you are asked for personal information ask
„«
construct sure that it is accurate and that there has not
been an accumulation of unauthorized debt
Access your credit report on an annual basis
„«
you do business with when it comes to the
discarding of personal/financial information
Inquire as to the policy of those businesses that
„«
to place a security alert on your file – this will
ensure that you are contacted prior to the opening
of any new credit cards under your name
Contact the three major credit reporting agencies
CHAPTER 4: WHAT TO DO WHEN ID THEFT
OCCURS
All right, so it happened. Even with all of the precautions
and care you’ve taken to protect yourself from those
spineless and injurious thieves, somehow and someway
they found a way to the inside…to the inside your personal
and financial life that is. Now don’t be too hard on yourself.
I know that you’re saying to yourself right now, “I did
everything I could possibly do. I took the time to make
myself aware and educate myself on the facts and this still
happened…why? ” Well, unfortunately sometimes there is no
real answer to the question why, it just is what it is. You
have to keep in mind that these perpetrators are
professionals and they will stop at nothing to achieve their
goal.
Just like you go to work everyday and perform your job with
the proficiency and skills that you have acquired, so do they.
Their job everyday is to rip off honest, hardworking and
innocent people such as you and I. It’s not fair and it never
will be. They have made a huge mess of your life and you
are the one who is stuck with the task of picking up the
pieces and turning things right again. Sometimes you can
build that fence higher, make the bridge more difficult to
cross and even fill the moat with alligators, but inevitably
there will always remain a obsolete and penetrable spot.
Identity thieves are adept at looking for and seeking out
those particular spots.
The most important thing for you to keep in mind right now
is that regardless of how much injure was done and how
bad the situation looks at present, it could always be worse.
Think about what would have happened had you not already
been so familiar with how identity theft works. You may not
have been able to prevent it but you certainly knew how to
eye the fact that it was happening to you.
The signs were there and you didn’t just dismiss them, as
many others would have this early in the process. Maybe
you noticed that your credit card statements had not arrived
at the time of month that they generally should have.
Perhaps during regular review of your bank statements you
noticed some unusual transactions that you had not made.
Maybe in looking more closely at the checks that had been
returned to you from the bank you realized that one or
several of them were made payable to an unknown
individual, tipping you off to the fact that some of your
checks had been stolen. Whatever the situation, you are to
be congratulated for catching on so quickly. You now have
the ability to terminate this thief wintry in his tracks and prevent
him/her from violating your privacy any further. This could
have gone on for months and months or perhaps even years
and in the process could have resulted in hundreds or
thousands of dollars worth of built up debt and a lifetime of
rebuilding the reputable line of credit you once had.
The task at hand now is to deal with the harm that has
been done and prevent any additional from occurring. You
may be feeling a little bit overwhelmed apt now at the
many thoughts that are swirling around in your head of all
the things that need to be done immediately. However, just
try to be still, breathe deeply and you will get through this.
Let’s take some time right now to go through a complete
and thorough task list. Keep in mind that depending on the
type of identity theft you have been the victim of not all of
these actions may be necessary. Yet it is important to cover
as many bases as possible. Although your thief for instance
may have only accessed one of your credit cards, the
possibility exists for them to have gained a lot more of your
personal information with that one card.
Steps to Take in Recovering Your Identity and Line
of Credit
„«
away and request a copy of the police report as you
may be required to provide it as proof of the crime
when you are later contacting the businesses and
organizations you need to deal with
Ensure that you report the crime to the police right
„«
the people whom you deal with and any expenses you
incur in re-establishing your credit and clearing your
name
Document all of the steps that you capture, names of all
„«
issued
Cancel all of your credit cards and have new ones
„«
Close all of your bank accounts and open new ones
„«
and change all of your passwords
Order new bank machine and telephone calling cards
„«
office
If your passport has been stolen contact the passport
„«
If your mail has been diverted, contact the post office
„«
Apply for a new driver’s license
„«
telephone and cellular service providers) that someone
using your name may attempt to start unauthorized
new accounts
Advise all of your utility companies (including home
„«
major credit bureaus to ensure that your credit reports
reflects the case of identity theft and follow up with
them after a 3 month period to ensure that someone
has not tried again to exercise your identity. This will also
Contact the fraud departments for each of the three
ensure that your permission is received prior to
opening any new types of credit accounts
„«
so that you may carefully review them and ensure that
no fraudulent loans or accounts exist
Ask the credit bureaus for copies of your credit report
„«
a stop payment order is placed on them and contact
the major check verification companies requesting that
they notify retailers using their databases not to accept
the lost or stolen checks
Notify your bank of stolen or misplaced checks, ensure
„«
you as a victim by providing information that will help
you to resolve any financial issues or other problems as
a result of your identity theft
Contact the Federal Trade Commission who will assist
CHAPTER 5: YOUR LIABILITY AS THE VICTIM
OF ID THEFT
The question you have probably been asking yourself
throughout this entire book is…”What is my liability in this
situation”? Well unfortunately that respond is fairly complex
and is dependant on the type of identity theft that has
occurred, as well as the timeliness in which you have
responded and taken action to correct the problem. In some
cases, victims are able to identify and act on the problem
quickly resulting in very minimal financial loss. Other
particular situations have not worked out quite so well and
have resulted in substantial financial debt and a very poor
credit rating, which can take years and years to repair.
Let me shriek you about a few specific cases of identity theft in
where the victim truly ended up as the injured party in more
ways than one.
Actual Identity Theft Victim Cases
A gentleman in San Diego, California (we’ll call him John
Jones), encountered an identity thief who opened a PayPal
anecdote under John’s name and filtered $7,600 from John’s
Bank of America account into the forged PayPal anecdote.
The incident occurred during July and August of 2002 but
because John had been traveling he did not notice the
money was actually missing until January of 2003. He
contacted his bank and was informed that because he had
failed to notify the bank within 60 days of the occurrence
there was nothing they could do for him. By that time all of
the money, with the exception of $2,100 detached remaining in
the PayPal account had been spent. PayPal returned the
remaining sum to John but he was quiet out $5,000. John
sued both PayPal and Bank of America in small claims court,
pleading that PayPal should have notified him immediately
upon discovering the fraud. Bank of America counter argued
that it is the customer’s responsibility to regularly check
bank statements and ensure their accuracy. In the end John
walked away with a settlement from each of the firms,
however was still out approximately $500 as a result. His
yearlong battle to turn things apt was extensive, time
gripping and frustrating.
An elderly woman in Seattle, Washington (we’ll call her Jane
Doe), was the victim of a telemarketing scam in December
of last year. Jane provided her checking account
information to the caller and later found that her account
had been cleaned of $800, leaving her overdrawn by $300.
When her December Social Security check was deposited the
Bank of America withdrew $300 of it to cover the overdraft.
Jane was left with barely enough money for food and rent
and was forced to “skip” Christmas that year. By February
the Bank of America had returned some of the money to her
and was continuing to work with her to repair the situation.
A retired California couple (let’s call them the Smiths), were
also the victims of identity theft in April of 2001. The
Smiths, when attempting to refinance their home mortgage
discovered that there was $75,000 in unsettled debts on an
account that they had held with this particular mortgage
company over a year ago. This was very strange, as they
knew they had settled their debt and closed that epic a
year earlier. It seems that an identity thief had re-opened
the account and switched the original mailing address to one
in Houston Texas, which is why the Smiths had never
received any bills or statements for that account. After
three months of phone calls and paperwork, the Smiths had
finally received confirmation from the mortgage company
that they were not being held responsible for the debt.
However, in December of 2003 the Smiths received a notice
from the mortgage company’s Financial Services Network
that they were being sued for $75,000 plus attorney’s fees
for their negligence in not discovering and reporting the
identity theft in a timely manner, and thus causing injury to
the mortgage company. The Smiths hired a lawyer who
specialized in identity theft cases and who was eventually
successful in convincing the company to drop the lawsuit.
The remaining bad news in this case is that the lawsuit was
dropped “without prejudice”, meaning that the firm could
resurrect the case in the future should they choose to do so.
The Smiths endured this nightmare for almost a three-year
period and peaceful the possibility of future incidents hang over
their head.
This last case that I want to piece with you is more than
horrific but thankfully took place prior to the United States
Congress making the act of Identity Theft a federal crime.
Although this is certainly not something that this victim is
thankful for in anyway, but we can take comfort in knowing
that an incident like this would result in a very different
ending in today’s times. In this particular situation the
criminal who was already a convicted felon accumulated
more than $100,000 in credit card debt, applied for and
obtained a federal home loan, bought homes, motorcycles
and handguns in the victims name. The criminal went so far
as to even calling the victim and taunting him with the fact
that because identity theft was not a federal crime he could
continue his charade for as long as he wanted to and
nothing would happen. The criminal eventually filed for
bankruptcy in the victim’s name while in the meantime the
victim spent over $15,000 and four years in efforts to clear
his name and re-establish his credit. In the end the criminal
was not reprimanded in any design and never paid back one
cent to the victim. His only punishment was serving a brief
sentence due to the fact that he made a false statement
when he purchased his firearm.
How Will You be Affected?
By now you are likely beginning to see very clearly why it is
that I keep preaching to you over and over how critically
important the issue of awareness and knowledge is when it
comes to identity theft. And, after looking at the three case
studies I just shared, you can see now more than ever the
enormity of the consequences when you do not monitor your
credit and financial statements. If you have been paying
end attention throughout this book then hopefully many
thoughts have been running through your mind of how the
situations could have been prevented when we discussed the
stories of the individuals who were victims of identity theft.
You may have been thinking back to all of the prevention
tips that you have been provided with, and which of those
would have been helpful in each of these cases had those
victims had the knowledge that you now have.
Let’s now spend some time looking at what your liability is
as the victim of identity theft depending on the specific
situation.
Credit Card Liability
If you have been the victim of credit card identity theft you
may take some comfort in the fact that credit card liability is
limited to $50. If you actually report the credit card lost
prior to it being used then you cannot be held accountable
for any unauthorized charges that occur after that time.
However, if the identity thief uses your card before you have
reported it missing or stolen then the maximum amount you
will be charged is $50. The same rule applies even if the
credit card is extinct at an ATM to withdraw cash.
Beware of telemarketers who call to sell you “loss
protection” insurance for your credit cards. These callers
may trick you into believing that should your card be lost or
stolen that you will be solely responsible for any charges
made to it if you do not have the “loss protection”.
ATM and Debit Card Liability
Unfortunately ATM and debit cards do not offer nearly the
amount of protection that credit cards do in cases of loss or
theft. It is in cases like these where time is truly of the
essence and in the raze it is very beneficial for you to keep
respectable track of your statements and card usage. When and
if you do notice a discrepancy it is in your best interest to
report it immediately to the issuing office. If you are
fortunate in that you report the missing card prior to it being
old then your financial institution cannot beget you liable for
any unauthorized exhaust. If you characterize the incident within two
business days of the loss your liability is capped at $50. In
cases where the report is made anywhere after two business
days and before sixty days you will be held liable for up to
$500 of what the identity thief stole from you. If a victim
were to wait more than sixty days, they could potentially
lose every single cent that was stolen prior to reporting the
card missing. However, we know for a fact that this last
scenario couldn’t possibly happen to you. You’re much too
smart and well informed to let this happen especially
gleaming everything that you know now…true?
Check Liability
In most cases you would not be held liable in the situation of
forged checks as the majority of States hold the bank liable.
However, this doesn’t mean that you have no responsibility
in the situation. If you are negligent in notifying the bank
within a reasonable amount of time that a check had been
lost or stolen, or if you fail to monitor your account for
unauthorized transactions then the liability may well rest
with you.
It’s Your Responsibility
Don’t fool yourself into believing that when or if identity
theft hits you that the responsibility lies with someone else.
It certainly may not be your fault when it happens but you
will be held accountable if you allow it to continue and just
assume that someone else will look after the mess. It’s your
responsibility to protect your financial fate, security and
credit rating. If you don’t do it, no one else will and you will
surely be taken advantage of. Take precautions, monitor
your accounts and act quickly if identity theft does occur. A
prompt and efficient response to the matter is the best way
for you to minimize your loss.
Liability Agreements
How often do you sign up for new services, credit cards,
loans or accounts? Now tell me how many times you
actually read through the entire liability agreement that
accompanies that card or service. That’s what I thought,
like most of us you may not take the time to read through
those seemingly endless agreements that are filled with so
much technical and legal mumbo jumbo that it just makes
your head hurt.
And what about those online agreements? Do you generally
scroll down to the bottom of them without reading a word,
click the “I agree” button and then hit “continue”? Many of
us do and unfortunately this is where we run into trouble
later on once we have become an identity thief victim. I
understand that at the time it may seem tedious and
unnecessary to read through those agreements but perhaps
in the future you might give it a second thought.
Additionally, how familiar are you with your liability
responsibilities in regards to your current bank accounts,
credit cards, debit cards, telephone and cellular service
providers, utility providers and online PayPal, eBay and
other similar accounts? Not too sure, are you? This might
be the perfect opportunity to go back and look at those
agreements once again. You may decide that having some
of those particular accounts are not worth the ticket you may
have to pay should you one day earn yourself in unfortunate
circumstances such as those that our three case studies did.
Hopefully though as a result of your research you are able to
decide that the financial institutions and various
companies that you deal with place you as their customer,
on the top of their priority list ensuring that you are well
protected against identity theft incidences.
CONCLUSION
Much has been covered on the topic of identity theft
throughout this book and hopefully it has been successful in
answering all of your questions, clarifying any
misconceptions or myths and in providing you with an
enlightened understanding of the issues involved in identity
theft.
We have conquered not only what identity theft is and how it
occurs but also, how you can have a hand in preventing it
and knowing what to do when or if it does affect you. The
sad reality remains however that no matter how many
precautions you take it is never possible to be fully immune
to identity thieves.
Even when you’ve done everything possible the threat still
exists and always will. The best that you can do for yourself
and your family is to protect what you are capable of
protecting and arm yourself with the knowledge that will
help you deal with whatever else it happens to be that may
come along at some later point in life. Often you are not
only relying on just your own actions and methods of
protection but also those of the companies whom you have
entrusted with your personal information.
It’s very similar to when a parent tells their son or daughter
who has just received their driver’s license that they need to
be careful on the road. The child generally responds with,
“Mom, dad, I am a safe driver, don’t worry about me”. The
parent then tells the child, “It’s not your driving that I’m
paralyzed about, it’s the other people on the road that concern
me.” The fact is, you just can’t control the actions, mistakes
or oversights of others. You are forced to put your faith into
them and into their capabilities. You must trust that they
are as concerned about your privacy and in protecting it as
you are. You must believe that they will act with due
diligence in taking every step possible on your behalf to
prevent an act of identity theft against you.
However, sometimes those people fail, they let us down and
they build us at great risk.
Here are some actual headlines from major news sources of
cases where very well known and very large institutions
have compromised the privacy of their customers.
„«
criminals able to acquire almost 140,000 names,
addresses and other information.”
Source – CNN February 2005
“ChoicePoint: More ID theft warnings…company says
„«
illegally compromised an undisclosed number of its
member accounts”
Source – News.com June 2000
“American Online has confirmed that hackers have
„«
data, announced yesterday that information about
32,000 consumers was fraudulently gathered in a
series of incidents.”
Source – Washington Post March 2005
“LexisNexis, a worldwide provider of legal and business
„«
reporting company Equifax Canada Inc. has suffered a
security breach that has given criminals access to
personal financial information.”
Source – Globe And Mail June 2005
“For the second time in about a year, the credit
„«
breach, believed to be one of the worst of its kind, is
the latest twist in the proliferation of spam: a rogue
employee supplying a subscriber list for profit.”
Source – USA Today June 2004
“AOL breach gives spam fight a twist…The security
„«
employee credit card accounts may be exposed to theft
or hacking”
Source – Time February 2005
“Bank of America says at least 1.2 million federal
Get an anguish to be familiar with those businesses that you
deal with and ask them what steps and measures they take
in protecting you? You have entrusted them with your
personal information and financial matters, which means you
have every right to expect nothing less than all of their
efforts in protecting your privacy.
You also have every true to hold them accountable for any
breach of privacy that does occur. Remember, these are the
same companies that are telling you to protect yourself from
identity theft. But are they taking the same care when it
comes to your protection? You deserve to know, so ask
them. There are many competing companies out there that
would love your business, and if the ones that you are
working with currently can’t satisfy you with the kinds of
answers that these important questions deserve, be
confident and know that someone in some other place
certainly can.
RESOURCES
Use the following list of resources to help you in taking
action if you have become an identity theft victim.
Credit Card Contact Information
Visa – (800) 847-2911
Mastercard – (800) 622-7747
American Express – (800) 554-2639
Credit Bureau Fraud Departments
TransUnion
Fraud Victim Assistance Department
Phone: (800) 680-7289
Fax: (714) 447-6034
P.O. Box 6790
Fullerton, CA 92634-6790
Equifax
Consumer Fraud Division
Phone: (800) 525-6285 or (404) 885-8000
Fax: (770) 375-2821
P.O. Box 740241
Atlanta, GA 30374-0241
Experian
Experian’s National Consumer Assistance
Phone: (888) 397-3742
P.O. Box 2104
Allen, TX 75013
Check Verification Companies
Check Rite – (800) 766-2748
Chex Systems – (800) 328-5121
CrossCheck – (800) 552-1900
Equifax-Telecredit – (800) 437-5120
NPC – (800) 526-5380
SCAN – (800) 262-7771
Tele-Check – (800) 366-2425
REFERENCES
Identity Theft Resource Center
www.idtheftcenter.org
Federal Trade Commission
http://www.ftc.gov/index.html
Bankrate
www.bankrate.com
Chicago Better Business Bureau
http://www.chicago.bbb.org/idtheft/typesof.html
Office of the Privacy Commissioner of Canada
http://www.privcom.gc.ca/index_e.asp
MSNBC
http://msnbc.msn.com/id/4264051
Privacy Rights Clearing House
http://www.privacyrights.org/index.htm
Fight Identity Theft
www.fightidentitytheft.com
Protect My Info
http://what-is-identity-theft.com
Computer World
http://www.computerworld.com
All Free Info.com
http://all-free-info.com/phishing
United States Department of Justice
http://www.usdoj.gov/index.html
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