http://my.bloghi.com/ Mon, 06 Oct 2008 22:28:43 +0000 http://bloghi.com/ http://my.bloghi.com/img_ch.hi?id=12760 http://my.bloghi.com/ http://my.bloghi.com/2008/02/21/experian-s-bogus-lawsuit-against-lifelock.html http://my.bloghi.com/2008/02/21/experian-s-bogus-lawsuit-against-lifelock.html#comments Thu, 21 Feb 2008 09:06:49 +0000 http://my.bloghi.com/2008/02/21/experian-s-bogus-lawsuit-against-lifelock.html It seems Experian has decided LifeLock is encroaching on their business and had decided to sue them. They're basing their lawsuit on the notion that LifeLock is "illegally placing fraud alerts". They are claiming that because it's LifeLock, a...
The three credit bureaus - Experian, Equifax and TransUnion - have a total monopoly on our credit files. We are at their mercy to keep our financial lives running smoothly. They can and DO make mistakes that are up to you to fix. I know firsthand.. I've had to dispute errors a number of times. You've got to check your report from all three bureaus because they can be different.

Up until recently, the credit bureaus have had a sweet deal. They sell us our own credit report information and then credit monitoring for a monthly fee. It wasn't until 2003 that we were even allowed to see our credit report for free unless we had recently applied for credit and been turned down. Getting our free credit reports had to be mandated by the Fair Credit Reporting Act (FCRA). If you'll recall, there was a roll-out across the US on when you could start to get your free reports depending on what state you lived in.

The website "freecreditreport.com" is actually run by Experian. But it's NOT the site where you can get your credit reports for FREE. Their website name and catchy commercials are a come-on to sell you their credit monitoring. The REAL free credit report website is AnnualCreditReport.com. And even though you do get your report for free once every 12 months, you'll be subjected to a battery of sales tactics from the credit bureaus throughout the process of getting your free one. The FTC website even has a consumer alert to warn us about "imposter" sites. Here's a quote from that FTC alert: "For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period ends." Cue the clueless singing 'Pirate' who "shoulda gone to free credit report dot com".

Credit monitoring doesn't protect us from identity theft. It only lets us know that someone has already opened an account in our name - maybe you, maybe an identity thief.

But back to the lawsuit....

Experian claims that LifeLock is "engaged in a pattern of false and misleading advertising and fraud, which has and continues to mislead and damage Experian and consumers." [Sounds like the pot calling the kettle black to me.] The whole basis of the suit is Experian claims that fraud alerts were designed to protect us as a temporary measure if we believe we've been a victim of identity theft or are about to be. By LifeLock placing continous fraud alerts for individuals, Experian says they're violating the law because only individuals can set the alerts - not corporations. As a result, there's been a lot of paperwork necessary at the credit bureaus to process the requests.

All this extra paperwork is costing Experian and the other credit bureaus money. It's probably also resulting in a loss of sales for them as people realize it's cheaper to do a fraud alert (like free) for themselves rather than by credit monitoring. The fact that hundreds of thousands of people have opted to pay LifeLock to place these free alerts is Experian's big beef. They say LifeLock is misleading people into spending money doing something that is a free service. LifeLock openly states on their website that you can do it yourself for free.

I think people are entitled to spend their money any way they want to. Have you ever gone into a bar and bought a couple of beers for the same amount of money you could have bought a six pack for in the grocery store? Same exact beer. Does that make a bar guilty of misleading you into paying too much?

The big selling point of LifeLock is their service guarantee to protect you if your identity is stolen. They'll hire all the professionals needed to get you through it. What does Experian do if your identity is stolen while using their credit monitoring service which only alerts you AFTER someone steals your identity? They'll give you an 800 number to call and ask for advice then you're on your own.

Experian also claims that fraud alerts were designed to be used by people if they think they're in danger of identity theft. I think we're all always in danger of identity theft. Did the 320,000 registered voters in Nashville think they were about to become victims when thieves stole computers from the Elections Building in December of 2007? No, probably not - but they were victims anyway. Identity theft can happen anytime, anywhere, to anyone. Check out the
Chronology of Data Breaches to see how often it happens. Total number of records containing sensitive personal information involved in security breaches in the U.S. from Jan. 2005 to Feb. 18, 2008 = 218,619,656.

Fraud alerts are a great way to protect ourselves. Too bad, so sad for credit bureaus that now they have to cater to our wishes instead of charging us to see our own information. It wasn't until November of 2007 that everybody in every state could even place a security freeze on our credit reports. That was another law that had to be passed to protect us. Before that, you had to have been a victim of ID theft to get it. But a total freeze isn't for everybody and costs money at each credit bureau to set and to unfreeze and reset...........

LifeLock isn't the only identity theft protection company that places fraud alerts on their customer's credit files. But what they don't offer is credit monitoring in their protection package because they say it only increases the cost without providing any significant extra protection. So LifeLock doesn't give a cut to Experian. Maybe that's what's got Experian all in a knot.

Identity theft is a hot topic in Washington now. It's got the government worried to the point that they've mailed out FTC brochures on identity theft to everyone in an effort to raise awareness. The credit bureaus need to let us protect ourselves from identity theft any way we see fit and stop trying to milk every last cent from us on 'free credit reports'. ]]> http://my.bloghi.com/2008/02/21/experian-s-bogus-lawsuit-against-lifelock.html#comments http://my.bloghi.com/2008/01/28/soldier-fighting-in-iraq-has-identity-stolen.html http://my.bloghi.com/2008/01/28/soldier-fighting-in-iraq-has-identity-stolen.html#comments Mon, 28 Jan 2008 08:56:22 +0000 http://my.bloghi.com/2008/01/28/soldier-fighting-in-iraq-has-identity-stolen.html I read an article yesterday about how an illegal immigrant stole the identity of a soldier fighting in Iraq. Of course, I immediately thought about the post I had recently made about what illegal immigrants do with stolen identities. This case made... illegal immigrant stole the identity of a soldier fighting in Iraq. Of course, I immediately thought about the post I had recently made about what illegal immigrants do with stolen identities. This case made the news. And a darn shame that it happened to one of our brave guys who isn't in position to defend himself from this theft right now.

His wife found out about it from a letter from the IRS saying he owed $2,000 in taxes on unreported income. She's working her way through the mess that was made of his good name. I'm sending them my prayers for strength to get this mess resolved. ]]> http://my.bloghi.com/2008/01/28/soldier-fighting-in-iraq-has-identity-stolen.html#comments http://my.bloghi.com/2008/01/14/illegal-immigrants-and-identity-theft.html http://my.bloghi.com/2008/01/14/illegal-immigrants-and-identity-theft.html#comments Mon, 14 Jan 2008 09:56:12 +0000 http://my.bloghi.com/2008/01/14/illegal-immigrants-and-identity-theft.html Illegal immigrants have been in the news a lot in the past year for many reasons. It's a hotly contested subject in Washington and throughout the US - particularly states with high illegal populations.But what do illegal immigrants have to do...
But what do illegal immigrants have to do with identity theft?

I'm pretty sure that illegals aren't slipping across the border to:

    * Shop at the mall
    * Order Chinese take-out
    * Visit Disney World
    * Attend a Broadway play
    * Take kids to soccer practice

They're coming here to find work.

One of the first things an employer will ask for is your social security number. Ah, but the well-equipped illegal has that taken care of. He got the deluxe package deal - a trip across the border and a ready-to-use-identity. Just plug and play.

Here's where the identity theft part comes in.

If it just happens to be 'your lucky day', maybe it's your name and social security  number being sold - not just once, but many times over. So imagine your surprise when you get a nasty-gram from the IRS telling you that you owe back taxes - a lot of back taxes... If you've ever tried to tell the IRS they made a mistake, you know how hard it is to convince them. This is going to take a lot more fixing than just a simple letter.

Or how about getting arrested at work for a crime you didn't commit at a place you've never been to? Not the best thing to make a good impression on your boss.

No, I'm making this up. These things can and do happen. It can take years to straighten out. In the meantime, your credit is trashed, your good name is questioned if you apply for a job, and every time you try to explain, you're confronted by people who figure you're just another deadbeat who says, "It wasn't me - I'm innocent." [Cue rolling eyeballs from the person you're talking to.]

But you're more than just innocent, you're a victim.

As a victim of identity theft, the burden is on you to prove your innocence and clear your name and credit of fraudulent information. It starts to feel like a part-time job. Depending on how many times your information was sold, this could go on for years. You may start to wish you could just reincarnate to come back as someone new and start over.

Identity theft isn't going away. It's getting worse every year and will continue to grow because there's a low-risk of getting caught and prosecuted. Many thieves are smart, but even the dumb ones can figure out which crimes are the safest to commit.

People under the age of 30 are especially vulnerable because they move so often and forget to get their mailing address changed. And they don't check their credit reports or even give them much thought until they need a loan.

Learn to be proactive and protect yourself. It's not being paranoid - it's being safe.

]]> http://my.bloghi.com/2008/01/14/illegal-immigrants-and-identity-theft.html#comments