Crux Polaris
21 October 2005, 08:51
Story Here. (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/10/21/FRAUD.TMP)
Low-tech ID theft prevails
Credit card details, mail more at risk than online data
Carrie Kirby, Chronicle Staff Writer
Friday, October 21, 2005
Scott Dyleski, the 16-year-old accused of killing Pamela Vitale, stole credit card statements from her mailbox and used information on them to fraudulently order merchandise, sources say.
While hackers who steal credit card numbers and other personal information on the Internet have grabbed headlines in recent years, this type of crime -- known as identity fraud -- is much more likely to occur through such low-tech, physical theft.
According to a survey by Javelin Strategy & Research and the Better Business Bureau, 68 percent of identity fraud is done by traditional methods, meaning that the criminal used the victim's physical credit card or obtained copies of bills or other financial documents.
There are a number of ways thieves can commit identity fraud, which cost consumers $52.6 billion 2004, according to Javelin. It's not clear what method Dyleski allegedly used. The most common route is making purchases using an existing credit card account, which happens in 54 percent of identity fraud cases. The other main methods are by accessing checking accounts or other non-credit-card accounts or by opening new accounts in the victim's name.
Stealing mail ranks eighth in the most common methods for perpetrating identity fraud. The mailbox tops the trash can, the computer and e-mail as the source of financial information used in fraud. Most often, though, the thief steals or finds a wallet or checkbook.
Once a thief has a credit card statement stolen from the mail, he or she has the card number and often the expiration date as well. Some merchants will ship merchandise with only this information. Others require that buyers also provide the three-digit security code on the back of a card.
Credit card offers found in the mail also can be useful to thieves, for opening new accounts in the victim's name. This generally requires knowing the victim's Social Security number, which can be found on other documents.
Javelin advises financial services companies that want to encourage customers to manage and spend their money online, as well as security firms.
Criminals also can use bank statements, tax documents and new checks they find in the mail, according to the Federal Trade Commission.
The FTC offers these tips to avoid becoming a victim of mail thieves:
-- Pick up new checks at the bank instead of having them mailed.
-- Promptly bring in mail after delivery, and put a hold on mail when on vacation.
-- Put outgoing mail in a post office collection box instead of in your own mailbox.
-- To opt out of receiving credit card offers by mail, call (888) 567-8688.
Low-tech ID theft prevails
Credit card details, mail more at risk than online data
Carrie Kirby, Chronicle Staff Writer
Friday, October 21, 2005
Scott Dyleski, the 16-year-old accused of killing Pamela Vitale, stole credit card statements from her mailbox and used information on them to fraudulently order merchandise, sources say.
While hackers who steal credit card numbers and other personal information on the Internet have grabbed headlines in recent years, this type of crime -- known as identity fraud -- is much more likely to occur through such low-tech, physical theft.
According to a survey by Javelin Strategy & Research and the Better Business Bureau, 68 percent of identity fraud is done by traditional methods, meaning that the criminal used the victim's physical credit card or obtained copies of bills or other financial documents.
There are a number of ways thieves can commit identity fraud, which cost consumers $52.6 billion 2004, according to Javelin. It's not clear what method Dyleski allegedly used. The most common route is making purchases using an existing credit card account, which happens in 54 percent of identity fraud cases. The other main methods are by accessing checking accounts or other non-credit-card accounts or by opening new accounts in the victim's name.
Stealing mail ranks eighth in the most common methods for perpetrating identity fraud. The mailbox tops the trash can, the computer and e-mail as the source of financial information used in fraud. Most often, though, the thief steals or finds a wallet or checkbook.
Once a thief has a credit card statement stolen from the mail, he or she has the card number and often the expiration date as well. Some merchants will ship merchandise with only this information. Others require that buyers also provide the three-digit security code on the back of a card.
Credit card offers found in the mail also can be useful to thieves, for opening new accounts in the victim's name. This generally requires knowing the victim's Social Security number, which can be found on other documents.
Javelin advises financial services companies that want to encourage customers to manage and spend their money online, as well as security firms.
Criminals also can use bank statements, tax documents and new checks they find in the mail, according to the Federal Trade Commission.
The FTC offers these tips to avoid becoming a victim of mail thieves:
-- Pick up new checks at the bank instead of having them mailed.
-- Promptly bring in mail after delivery, and put a hold on mail when on vacation.
-- Put outgoing mail in a post office collection box instead of in your own mailbox.
-- To opt out of receiving credit card offers by mail, call (888) 567-8688.