U.S. Justice Department indicts international ATM hacking ring

Posted by Caitlin on November 11th, 2009

Yesterday, the U.S. Justice Department indicted eight men who allegedly hacked into a computer system at RBS WorldPay Inc., cloned prepaid ATM cards, and used them to withdraw $9 million from 2,100 ATMs in 280 cities around the world, in less than 12 hours. The prepaid ATM cards that they cloned were payroll debit cards that companies issue to their employees. The hackers raised the maximum withdrawal amounts and attempted to destroy data in order to remove evidence of the breach. Charges against the hackers include wire fraud and aggravated identity theft. One of the accused has been arrested and is awaiting extradition from Estonia, and the rest remain at large. Authorities say this hacking ring is one of the most sophisticated in the world.

According to Shawn Henry, the assistant director of the FBI's cyber division, "More money is stolen electronically or [in] data breaches than through bank robberies." RBS customers have been reimbursed for the stolen funds, but a class action lawsuit is pending against RBS WorldPay, alleging that the company failed to adequately protect consumer data. RBS WorldPay has acknowledged that the breach impacted 1.5 million cardholders, and that 1.1 million Social Security numbers may have been compromised.

There's no way to ensure that your Social Security number or other sensitive personal data remain safe from these types of hackers. But identity theft protection services like TrustedID, LifeLock, and Identity Guard scan the Internet's black market websites to find out whether your information is being bought or sold. They'll also alert you if anyone attempts to create new accounts in your name. To learn more about TrustedID, LifeLock, Identity Guard, and other identity theft protection services, see our reviews and comparison chart.

• WalletLock takes the worry out of losing your wallet
• LifeLock receives 5 star rating from NextAdvisor.com
• If our identity is stolen or compromised, would LifeLock do the paperwork connected to clearing my name/credit?
• TJ Maxx may have know about identity theft threat two months earlier than reported
• 25 million identities left unprotected in the UK

LifeLock wins 2009 ACE Award

Posted by Caitlin on September 23rd, 2009

This week, LifeLock received a 2009 Arizona Corporate Excellence Award, and was recognized as Arizona's fastest growing company. The ACE Award is presented based on revenue growth over the most recent two years, using both actual dollar growth and percentage-revenue growth over those same years. In 2008, LifeLock's member base grew by over 204%.

"It's a tremendous honor for us," said LifeLock CEO Todd Davis. "We've seen phenomenal growth over the last few years, and I'm proud of my team to meet the challenges that come with the fast-changing dynamics. I'm also proud to be helping to build our community right here in Arizona."

LifeLock rapid growth makes sense, given that identity fraud continues to increase relentlessly, reaching a five year high last year after a 22% rise from the year before. As this crime becomes even more prevelent, the need for an identity theft protection service becomes even more apparent. And LifeLock has proven itself as an industry leader.

To learn more about LifeLock and other identity theft protection services, see our reviews and comparison chart.

• Arizona identity theft protection guide: facts, trends and resources
• 1 in 3 Americans exposed to identity theft in 2007
• Reader Question: Are credit bureau fraud alerts still available?
• LifeLock selected as exclusive ID theft prevention service for a variety financial firms
• Reader Question: How can LifeLock help me if I have already been a victim of identity theft?

LifeLock to stop setting fraud alerts on behalf of consumers; Launches LifeLock Identity Alerts

Posted by Joe on August 31st, 2009

LifeLock announced in an email sent to subscribers today that the identity theft protection service will soon stop setting fraud alerts on behalf of consumers. This announcement comes after a judgement this May in a case brought by Experian in which the credit bureau challenged the legality of LifeLock's practice of setting fraud alerts on behalf of consumers.

LifeLock CEO Todd davis stated that the company had been anticipating the possibility of this outcome and have invested in developing a new system call LifeLock Identity Alerts. According to Davis, this new system:

• Uses more sophisticated and scientific algorithms to spot identity fraud
• Mines more data sources than the credit bureaus. These additional sources include data from many retailers, banks, mortgage lenders, utilities, and auto lenders
• Examines patterns over time across this network to help predict future identity risks and the vulnerability of members

Davis did not give a specific date on which fraud alerts would stop being set, although he did say that the transition would happen over the next few weeks and that LifeLock members would not experience any interruption in the protection of their identities.

We have not been able to review the new features of LifeLock Identity Alerts in detail as of yet, but have included the full text of the email message sent by Davis below. We will provide more information once we have more details on the new tools and timeline for transition.

**Important Message from LifeLock**

Dear Valued Member,

LifeLock is pleased to announce we are beginning implementation of a new and innovative identity protection system that provides you even better and broader protection. This new system, which replaces fraud alerts, is better because it offers you the benefit of real-time protection in some instances, and broader because it identifies identity risks beyond the scope of fraud alerts.

As you may know, as a result of litigation with the credit bureau, Experian, a Court has ruled that LifeLock must soon end the practice of setting fraud alerts on behalf of consumers. The placement of a fraud alert on a member's profile is just one of the many tools LifeLock uses to protect our members from the growing threat of identity theft. We have been planning for the possibility of this ruling by developing even better ways to help protect you, and are excited about the broader protection we will roll out in the coming weeks.

The new LifeLock Identity Alerts will notify you by email, postal mail, and/or phone anytime we detect your personal information being used to apply for many forms of credit cards, wireless services, retail credit, utilities, check orders/reorders, mortgage loans, auto loans, and non-credit related payday loans. If the application is fraudulent, our remediation team will take action to help restore your good name.

This system uses very powerful, forward-looking models to help predict fraud and identity risks before fraud occurs. For example, the system:

* Uses more sophisticated and scientific algorithms to spot identity fraud;
* Mines more data sources than the credit bureaus. These additional sources include data from many retailers, banks, mortgage lenders, utilities, and auto lenders; and
* Examines patterns over time across this network to help predict future identity risks and the vulnerability of members.

While this transition takes place in the coming weeks, you will notice no interruption to the around-the-clock protection you depend on from LifeLock.

In addition to this new identity protection system, LifeLock will continue to provide you with the full suite of other personal protection services you have come to know and trust – including WalletLockTM, eReconTM, TrueAddressTM, and of course our $1 Million Total Service Guarantee. If you become a victim of identity theft while a member of LifeLock because of a failure in our service, we will help you fix it, up to $1 million. (Restrictions apply. See LifeLock.com for details)

At LifeLock, we never take your trust in us lightly, and consider it an honor to protect your good name. We are confident you will share our excitement about this improved level of service and the increased peace of mind and protection it will provide you and all our members. If you ever have questions about your membership or this enhancement to your service, please send us an email at member.services@lifelock.com or call us at 1-800-LIFELOCK (543-3562), option #2.

We thank you for your business and your continued trust in LifeLock.

Sincerely,

Todd Davis

Todd Davis
CEO

• Reader Question: Are credit bureau fraud alerts still available?
• LifeLock… Now with frequent flier protection!
• Debunking the case against LifeLock
• Reader Question: Will shopping for a mortgage hurt my credit score?
• America's largest retail pharmacy to offer LifeLock's identity theft protection services

Fraud happens to smart people, too

Posted by Robert Siciliano on August 24th, 2009

Robert Siciliano is a NextAdvisor.com Expert Guest Blogger

Most people are too smart to fall for a Nigerian 419 scam. But plenty of smart people fell for Bernie Madoff's investment scams. Madoff was far more subtle than your average scammer. But in this day and age, people ought to be more alert to potential scams than ever before. And yet this wolf in sheep's clothing was able to bilk so many investors. So it looks like we aren't as savvy as we should be.

The root of the problem is the sheer number of scams. There are investment seminars, smoke and mirror charities, phishing emails and even text messages. I got a "phext" (phishing text message) from "r.yahoo.com" that said, "changed secret question, log in to update, or text HELP or to end STOP." Naturally, this raised my suspicions, so I did an online search which led me to a forum discussion of this particular scam. Apparently, any response to this text message would have allowed hackers to access plenty of proprietary data.

A prominent security and privacy researcher emailed me to describe an attempted Craigslist scam:

"Robert, so, I registered on Craigslist and posted our above ground pool for sale. Within minutes got a reply from someone asking some basic questions (most of which could have been answered if they had read the advert). Their reply to my answers raised an immediate red flag. This individual claimed to be from Miami and was willing to write me a check for the full amount, plus shipping charges for their shipping company that would pick up the pool. In other words, I deposit a check (in context it seemed to be either a business or personal check, either way I would have had to wait for it to clear) and when it clears, I keep my asking price and give the difference to the shipping company when they arrive to pick up the pool.

I’ve ceased communication with this individual, but this just stinks to high heaven. First, if it is their own shipping company, why should I have to pay them? Second, no way I’m going to deposit this check into my account and risk having my bank info show up on their statement. Third, why would someone in Miami (above ground pools aren’t all that popular down there, it seems to me) want to pay to have a used above ground pool shipped all the way from New England? Fourth, I’m just nervous about stuff like that anyway.

Ever heard of/encountered that kind of situation before?”

This is an advanced fee scam! Now, since I am obsessively screaming about this stuff all day, I can see this coming from a mile away, as did my friend. But those who are less tuned in to the variety of potential scams might easily fall victim to this type of crime.

Financial troubles are forcing people to seek out new opportunities. When we are searching for jobs or attempting to sell our belongings online, or simply spending more time using social networking sites, we become more susceptible to the latest scams. But the biggest danger is our own egos and our complacency, as we foolishly believe that we are all too smart to become victims.

According to The Wall Street Journal, many scam victims are pretty smart. Three recent studies showed that victims of investment fraud tend to be better educated and have higher incomes than nonvictims, and that most have been investing for a decade or more. Because they are so confident in their own judgment, they fail to seek out professional advice.

Years ago, the Better Business Bureau conducted a test in which they planted a man dressed in normal street clothes outside a store during the holiday season. They gave the man a plastic pumpkin and a bell to ring. He spent twenty minutes ringing the bell, and during that time, people kept dropping money into the pumpkin. When the people were questioned, most believed that they had just donated to the Salvation Army, simply because the man was ringing a bell. Like Pavlov's dogs, they opened their wallets.

Criminals aren't any smarter than we are, but they know how to capitalize on our stupidity. You need to take steps to protect your own identity, because while you are smart enough to inform yourself about these issues, you can't prevent some company from stupidly compromising your sensitive personal data. Prevent new account fraud by getting a credit freeze. Go to ConsumersUnion.org and follow the steps for your particular state. This is an absolutely necessary tool to secure your credit. In most cases, it prevents new accounts from being opened in your name. This makes your Social Security number useless to a potential identity thief. And invest in identity theft protection. Not all forms of identity theft protection can be prevented, but identity theft protection services can dramatically reduce your risk.

Robert Siciliano, identity theft speaker, discusses various scams on TBS's Movie and a Makeover.

Robert Siciliano is CEO of IDTheftSecurity.com , an identity theft expert, professional speaker, security analyst, published author and television news correspondent. Siciliano works with Fortune 1000 companies and startups as an advisor on product launches, branding, messaging, representation, SEO and media. Siciliano's thoughts and advice on all these matters appear often in both the televised and print news media including CNN, MSNBC, CNBC, FOX, Forbes and USA Today. He has 25 years of security training as a member of the American Society of Industrial Security. He is the author of two books, including The Safety Minute: Living on High Alert; How to take control of your personal security and prevent fraud. He's also partnered with Uni-Ball to help raise awareness about the growing threat of identity theft and to provide tips on how you can protect yourself.

• If I check my credit score does it affect my FICO?
• Shop safely this holiday season
• Reader Question: Will shopping for a mortgage hurt my credit score?
• Identity Theft Expert Answers: Robert Siciliano of IDTheftSecurity.com
• 1 in 3 Americans exposed to identity theft in 2007

Scammers continue to target Craigslist users

Posted by Robert Siciliano on August 19th, 2009

Robert Siciliano is a NextAdvisor.com Expert Guest Blogger

Craigslist scammers aren't letting up. Fox News reports on scams that target online car buyers, in which crooks spend about a hundred dollars on a junk car, then steal a similar car and advertise it on Craigslist. They remove the vehicle identification number plate from the junk car and the ignition and put them in the stolen car. Buyers don't realize their new cars are stolen until the scammers are long gone.

In another Craigslist scam, a Massachussetts woman was horrified when a stranger alerted her to a Craigslist post offering her baby up for adoption. The advertisement read: "A CUTE BABY BOY FOR ADOPTION HE IS VERY HEALTHY AND READY FOR ADOPTION FOR MORE YOU COME BACK TO US," and featured a photo of the woman's seven month old son, which had been lifted from their family blog. (I've said before that you shouldn't reveal specifics when posting to blogs and social media sites. Don't post your address, date of birth, kids’ names, pets’ names, phone numbers, or any account numbers or financial information of any kind. You really shouldn’t post children's photos online.) When the mother responded to the post, she was informed that the baby was Canadian but currently living in an African orphanage. The mother said that while her son wasn't being harmed, she felt he was violated. She alerted the FBI and the scammer has been removed from Craiglist as well as Yahoo.

I spoke with Jeffrey A. Kasky, Esq., renowned adoption expert from OneWorldAdoption.com. He said, "Families who hope to adopt a child are frequently medically unable to have children for themselves.  As such, they look at adoption opportunities from an emotional rather than a logical perspective, and are therefore more vulnerable to scams. What would tug at your heartstrings more than thinking that this beautiful little boy was stuck in an orphanage halfway around the world? All you have to do is wire us $300 now, then more and more and more, and he can be yours…"

These scammers are lower than that black smelly stuff in the sewer.

When we were young, our parents told us not to talk to strangers. Strangers are not yet part of our trusted circle. So don't trust them! There's no benefit to paranoia, but being a little guarded can prevent you from stumbling into a vulnerable situation.  Since predators use online classifieds to lure unsuspecting victims, you should find out as much as possible about strangers who contact you. Get a name, email address and phone number, and use Google, iSearch.com, or social networking sites to look for anything suspicious. If you find a red flag, use Intelius.com to investigate further.

Whenever possible, deal locally. People who cannot meet you in your town are more likely to be scammers. And even when you do meet in person, you should be wary. Never meet in private. Choose a public location surrounded by people. If possible, bring along a friend. Predators thrive on isolation, and by pairing up, you reduce your chances of being attacked. Be street smart, and dress accordingly. Don't wear expensive jewelry or provocative clothes. Scarves and loose clothing give attackers something to grab. Wear shoes that will allow you to run and kick if necessary.

Trust your gut and don't discount any troubling or negative feelings about the meeting. If something seems wrong, it probably is wrong. Don't be afraid to cancel. Unfortunately there is an inherent risk in meeting someone you don’t know.  Being guarded can keep you from getting into a vulnerable situation. Let your spouse or a friend know where you are going and when you will be back. Use your cell phone to keep in touch throughout the meeting.

Robert Siciliano, identity theft speaker, discusses all kinds of scams on TBS's Movie and a Makeover.

Robert Siciliano is CEO of IDTheftSecurity.com , an identity theft expert, professional speaker, security analyst, published author and television news correspondent. Siciliano works with Fortune 1000 companies and startups as an advisor on product launches, branding, messaging, representation, SEO and media. Siciliano's thoughts and advice on all these matters appear often in both the televised and print news media including CNN, MSNBC, CNBC, FOX, Forbes and USA Today. He has 25 years of security training as a member of the American Society of Industrial Security. He is the author of two books, including The Safety Minute: Living on High Alert; How to take control of your personal security and prevent fraud. He's also partnered with Uni-Ball to help raise awareness about the growing threat of identity theft and to provide tips on how you can protect yourself.

• Identity Theft Expert Answers: Robert Siciliano of IDTheftSecurity.com
• LifeLock CEO to answer questions and address criticisms in town hall meeting this Friday
• How to steal Colin Powell's identity
• NextAdvisor.com featured in Fortune Magazine
• Data Breach Alert: 60,000 impacted in Ohio data breach

If LifeLock requests reports on my behalf, do I still get my 3 free reports per year?

Posted by Caitlin on May 7th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Each person is entitled to a free credit report from each of the 3 bureaus each year. If LifeLock requests the reports on a client's behalf, can the client also request a free report from each bureau directly in the same calendar?

A: You are entitled to a free credit report from each of the 3 credit bureaus per year. You can request these free credit reports at AnnualCreditReport.com, which is a central website sponsored by all 3 bureaus. When LifeLock requests credit reports on behalf of its clients, these reports do count toward your limit of one per bureau per year. However, when you purchase a credit report from one of the credit bureaus, or when you recieve free credit reports from credit monitoring services such as  CreditCheck Total, or other identity theft protection services such as Identity Guard, these are unrelated to your 3 free reports and do not count against that limit. If you purchase credit reports or recieve them from a credit monitoring service, you can still request 3 free reports per year from AnnualCreditReport.com.

To learn more about credit report and score services, see our reviews and comparison chart.

• I understand that I am entitled to 3 free credit reports per year. How do I get this service?
• Reader Questions: Is there a free on line credit report service that has no trial or any other hidden fees?
• Reader Question: How do I order my free credit report?
• Reader Question: Am I entitled to a free credit report each year?
• What is my fico score?

Will LifeLock protect my bank accounts?

Posted by Caitlin on April 13th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: I know that LifeLock protects your credit card, Social Security, driver's license, and address changes. But what about my bank accounts? I recently had someone steal money from my bank account.

A: LifeLock will alert you if an identity thief attempts to open any new bank accounts in your name. Unfortunately, since LifeLock relies on information from the three credit bureaus, it cannot prevent or detect what would appear to be normal activity in your existing bank accounts. LifeLock does offer a companion product, WalletLock, that would help you notify all the necessary parties in the event that your wallet, credit and debit cards, driver's license, Social Security card, insurance card or checkbook are lost or stolen.

If your debit card is lost or stolen and you report the loss to your bank within 2 business days, under federal law your liability is limited to $50.00 in losses. If you report the loss within 60 calendar days from the time your bank statement is mailed, your liability is limited to $500.00. If a thief steals your debit card number, rather than the actual card, federal protections are more generous. Many banks voluntarily offer zero-liability policies, as do Visa and MasterCard.

Another of the identity theft protection services we review, TrustedID, offers additional protection by scanning black market websites where identity thieves buy and sell stolen data. If you register your credit and bank account numbers with TrustedID, you'll be alerted immediately in the event that your account information is discovered on the Internet black market.

To learn more about LifeLock, TrustedID and other identity theft protection services, see our reviews and comparison chart.

• LifeLock receives 5 star rating from NextAdvisor.com
• 25 million identities left unprotected in the UK
• LifeLock selected as exclusive ID theft prevention service for a variety financial firms
• If our identity is stolen or compromised, would LifeLock do the paperwork connected to clearing my name/credit?
• WalletLock takes the worry out of losing your wallet

LifeLock Celebrity Apprentice sweepstakes could put you in the board room with Donal Trump

Posted by Joe on April 12th, 2009

LifeLock is launching a new sweepstakes to coincide with CEO Todd Davis' appearance on NBC's Celebrity Apprentice with Donald Trump tonight April 12, 2009.

The "LifeLock Celebrity Apprentice Sweepstakes" includes a number of great prizes for the winner including:

• 4 days/ 3 night trip to New York City
• Tickets to The Celebrity Apprentice Finale
• Passes to The Celebrity Apprentice After-party
• Personal introduction to Donald Trump
• $1000 Cash and more*

We recommend visiting the LifeLock website to learn more about the sweepstakes requirements and other rules.

NextAdvisor.com site visitors get an exclusive 30 day free trial and 10% discount on their LifeLock subscription. If you click through to the LifeLock site from any link on NextAdvisor.com then you will automatically receive this special deal. Other wise, simply input the discount promo code NEXT when prompted on the registration screen. You can also call 1-800-543-3562 and mention promo code NEXT to receive the same discount over the phone.

• LifeLock, Celebrity Apprentice and the discount promo code
• Trusted ID offers exclusive 15% discount promotion to NextAdvisor.com readers
• Mozy discount promo code for April 2008
• Reader Question: Does signing up for LifeLock cover my spouse?
• Mozy offers 25% discount in response to Upline's downtime

If our identity is stolen or compromised, would LifeLock do the paperwork connected to clearing my name/credit?

Posted by Joe on April 8th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: If our identity is stolen or compromised, would LifeLock do the paperwork connected to clearing my name/credit?

A: If your identity is stolen or compromised during the time you are an active member of LifeLock, the paperwork connected to clearing your name and credit will be completed for you, as stated in their terms and conditions on LifeLock's website.

According to the Lifelock service guarantee, if your identity is stolen and used without your knowledge, Lifelock will pay a professional of their choosing to restore and/or recover losses up to $1 Million. The $1 Million limit is not per incident, but total for the lifetime of all incidents.

LifeLock subscribers have the obligation to notify the company within 30 days from the point in which they discovered that their identity may have been stolen in order to be fully covered by the guarantee.

To learn more about LifeLock or other identity theft protection service providers, visit our identity theft protection reviews and comparison.

• LifeLock's $1 Million Guarantee – Separating Fact From Fiction
• LifeLock receives 5 star rating from NextAdvisor.com
• Debunking the case against LifeLock
• Identity Guard adds $1 million dollar identity theft insurance
• Reader Question: How can LifeLock help me if I have already been a victim of identity theft?

Data Breach Alert: 100 million possible victims in what may be the largest data breach ever

Posted by Joe on January 21st, 2009

Experts are speculating that a recent breach of a 100 million credit card transactions could be the largest credit card breach in history. The reported number of potential victims is more than twice the approximately 45 million credit card transactions that were breached by criminals that hacked credit card processing systems of TJX, the parent company of TJ Maxx, Marshalls and other popular retail stores.

Heartland Payment Systems, a large credit card processor based in New Jersey, announced this week that hackers had breached the company's computer network and potentially gained access to customer information related to approximately 100 million transaction processed by the company. The breach included information that would allow criminals with the proper knowledge and equipment to create duplicate credit cards.

While Heartland is based on the east coast of the United States, the company processes transactions for 250,000 business located across the country and of all sizes and types.

There is no information available regarding notification of potential victims, although most states do have strict laws that require businesses to disclose data breaches to consumers. Businesses also commonly provide free access to a credit report monitoring service to victims for some period of time following a breach. There is no word yet whether Heartland will be providing free credit report monitoring to victims.

As always, our advice is to act quickly if you believe you or your family may have been a potential victim of this breach. We recommend that consumers review their credit reports in an effort to identify any suspicious accounts or activity. Many credit report monitoring services offer free access to your credit reports and scores when you sign up for a free trial (read our reviews and comparison of credit report monitoring services to learn more). It is also a good idea to keep an eye on your credit card statements and alert your credit card company of any charges that you believe may be fraudulent.

Additionally, we recommend signing up for an identity theft protection service, such as Trusted ID or LifeLock, that can help prevent new fraudulent financial accounts from being opened in your name.

• Data Breach Alert: Millions at risk for identity theft due to supermarket chain data breach
• Data Breach Alert: Over 10 million eBay Korea users impacted in massive hack
• Data Breach Alerts: No vacation from id theft risk for resort visitors
• Data Breach Alert: Health insurer exposes personal information of 128,000 customers
• Do my spouse and I have one credit report?