October 23, 2012

Kansas case puts US face on 'total identity theft'

WICHITA, Kan. (AP) — When Candida L. Gutierrez's identity was stolen, the thief didn't limit herself to opening fraudulent credit and bank accounts. She assumed Gutierrez's persona completely, using it to get a job, a driver's license, a mortgage and even medical care for the birth of two children.
All the while, the crook claimed the real Gutierrez was the one who had stolen her identity. The women's unusual tug-of-war puts a face on "total identity theft," a brazen form of the crime in which con artists go beyond financial fraud to assume many other aspects of another person's life.

The scheme has been linked to illegal immigrants who use stolen Social Security numbers to get paid at their jobs, and authorities fear the problem could soon grow to ensnare more unsuspecting Americans.
"When she claimed my identity and I claimed it back, she was informed that I was claiming it too," said Gutierrez, a 31-year-old elementary schoolteacher. "She knew I was aware and that I was trying to fight, and yet she would keep fighting. It is not like she realized and she stopped. No, she kept going, and she kept going harder."
A 32-year-old illegal immigrant named Benita Cardona-Gonzalez is accused of using Gutierrez's identity during a 10-year period when she worked at a Topeka company that packages refrigerated foods. For years, large numbers of illegal immigrants have filled out payroll forms using their real names but stolen Social Security numbers. However, as electronic employment verification systems such as E-Verify become more common, the use of fake numbers is increasingly difficult. Now prosecutors worry that more people will try to fool the systems by assuming full identities rather than stealing the numbers alone.
For victims, total identity theft can also have serious health consequences if electronic medical records linked to Social Security numbers get mixed up, putting at risk the accuracy of important patient information such as blood types or life-threatening allergies.
Federal Trade Commission statistics show that Americans reported more than 279,000 instances of identity theft in 2011, up from 251,100 a year earlier. While it is unclear how many of those cases involve total identity theft, one possible indicator is the number of identity theft complaints that involve more than one type of identity theft — 13 percent last year, compared with 12 percent a year earlier.
Nationwide, employment-related fraud accounted for 8 percent of identity theft complaints last year. But in states with large immigrant populations, employment-related identity fraud was much higher: 25 percent in Arizona, 15 percent in Texas, 16 percent in New Mexico, 12 percent in California.
Prosecutors say that the longer a person uses someone else's identity, the more confident the thief becomes using that identity for purposes other than just working. Once they have become established in a community, identity thieves don't want to live in the shadows and seek a normal life like everybody else. That's when they take the next step and get a driver's license, a home loan and health insurance.
"And so that is a natural progression, and that is what we are seeing," said Assistant U.S. Attorney Brent Anderson, who is prosecuting the case against Gutierrez's imposter. Gutierrez first learned her identity had been hijacked when she was turned down for a mortgage more than a decade ago. Now each year she trudges to the Social Security Administration with her birth certificate, driver's license, passport and even school yearbooks to prove her identity and clear her employment record.
She spends hours on the phone with creditors and credit bureaus, fills out affidavits and has yet to clean up her credit history. Her tax records are a mess. She even once phoned the imposter's Kansas employer in a futile effort to find some relief.
Both women claimed they were identity theft victims and sought to get new Social Security numbers. The Social Security Administration turned down the request from Gutierrez, instead issuing a new number to the woman impersonating her. And in another ironic twist, Gutierrez was forced to file her federal income tax forms using a special identification number usually reserved for illegal immigrants.
"It is such a horrible nightmare," Gutierrez said. "You get really angry, and then you start realizing anger is not going to help. ... But when you have so much on your plate and you keep such a busy life, it is really such a super big inconvenience. You have to find the time for someone who is abusing you."
When Gutierrez recently got married, her husband began researching identity theft on the Internet and stumbled across identity theft cases filed against other illegal immigrants working at Reser's Fine Foods, the same manufacturer where Cardona-Gonzalez worked. He contacted federal authorities in Kansas and asked them to investigate the employee working there who had stolen his wife's identity.
The alleged imposter was arrested in August, and her fingerprints confirmed that immigration agents had encountered Cardona-Gonzalez in 1996 in Harlingen, Texas, and sent her back to Mexico. Cardona-Gonzalez did not respond to a letter sent to her at the Butler County jail, where she is awaiting trial on charges of aggravated identity theft, misuse of a Social Security number and production of a false document.
Her attorney, Matthew Works, did not respond to phone calls and emails seeking comment. Court filings indicate the two sides are negotiating a plea agreement. Citing privacy issues, the Social Security Administration declined to discuss the Gutierrez case. Reser's Fine Foods did not return a message left at its Topeka plant.
Anderson expects more cases of total identity theft "because we all know what is going on out there — which is thousands and thousands of people who are working illegally in the United States under false identities, mostly of U.S. citizens, and very little is being done about it. But we are doing something about it, one case at a time."

A former Internal Revenue Service employee has been sentenced to two years in prison for identity theft and filing fraudulent income tax returns.

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George Albright, 57, of Antioch, Tenn., was sentenced last week by a federal judge in in Nashville after he pleaded guilty in May to one count of filing a false tax return and one count of using the identities of others to do so.
Albright was employed by the IRS as a taxpayer service representative from 1995 until March 2012. He admitted that, between February 2008 and January 2011, he used his position as an IRS employee to obtain the names and identifiers of taxpayers from IRS records. He then used this information to file several fraudulent federal income tax returns. Albright directed that the tax refunds from those returns, totaling $9,669.00, be electronically deposited into bank accounts under his control.
In imposing the two-year sentence, U.S. District Judge Todd Campbell noted that Albright, who has no prior criminal history, had engaged in an egregious abuse of the public trust.
“Tax fraud, or any crime committed by a government employee, occupies a high priority for federal investigators and prosecutors in this district,” said U.S. Attorney Jerry Martin in a statement. “Anyone filing a fraudulent tax return and anyone employed in a position of public trust should take note of the prison sentence they risk if they engage in this sort of criminal conduct, even if they have no criminal record. They should also be reminded that there is no parole in the federal system.”
Albright will remain under federal supervision for one year after completing his prison sentence. He was also ordered to forfeit the computer that he used to commit the crimes and will be required to repay the tax refunds he stole.

NOTICE

The IRS does not send taxpayers unsolicited emails about their tax accounts, tax situations or personal tax issues. If you receive such an email, most likely it's a scam.
IRS impersonation schemes flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly email.
Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. Some email scams contain attachments or links that, when clicked, download malicious code (virus) that infects your computer or direct you to a bogus form or site posing as a genuine IRS form or web site.
Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS website, www.IRS.gov. However, such sites have no connection to the IRS.

Consumer Alert

October 2012
Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida.
The information on these documents is then used by the scammers to commit identity theft. Typically, identity thieves use someone’s personal data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards or apply for new loans, credit cards, services or benefits in the victim’s name.

BOSTON (CBS) – We’ve all heard of identity theft and having our financial information stolen. But now there’s a new, scary twist on this crime.
Thieves are stealing medical identities, and that’s leaving victims with big bills and the potential for medical catastrophes.
It’s called medical ID theft; someone stealing your identification to get expensive health services.
For an average person whose identity is stolen, their exposure is about $2,000. However, someone’s medical identity that is stolen could have an exposure of about $20,000.
“We have 24 counts of fraud on using my social security number for various things, mostly medical identity theft; medical charges,” a college professor named Lisa told WBZ-TV’s Joe Shortsleeve.
Lisa is on the hook for $50,000 for services and drugs obtained in half-dozen states.
“It’s always an emotional burden because you are always on guard and you never know when she is going to strike again,” Lisa said of the woman using her identity.
Christine O’Neill, the FBI’s supervisory agent for health care fraud in Boston told the I-Team that medical ID theft can start with a single stolen wallet, or with organized crime rings breaching huge data systems.

Investigators have seen employees inside health care offices with access to all the patients personal information stealing it, which happened at Health Sports and Rehab physical therapy office in Dorchester.
Court records obtained by the I-Team show Laverne Miskel pled guilty to stealing personal information while interning there.
Owner Andrew Watson said Miskel worked in tandem with a boyfriend on the outside to create bogus checks.
The result can be a financial headache that can take years to untangle. What’s worse is if someone uses your medical information to go get health treatment; that can cause a life or death situation.
If somebody had a different blood type, that information is going to taint your medical history. So in an extreme case, if somebody was in an accident and they go to seek treatment and that blood type has been changed, they could be given a wrong blood type for a transfusion
Making matters worse, Pam Dixon, a nationally recognized expert on medical ID theft, says getting records corrected is next to impossible.
Under the federal privacy law, hospitals are not supposed to give people records that are not about them, and once a thief has used your file, it’s not actually you anymore, even though it is,” Dixon said.
Agent O’Neill believes medical facilities could make one small security change to reap big benefits.
“Ask for somebody’s license and other identifiers when they come to seek treatment,” she suggested.
The FBI says the best way to protect yourself is to shred every health care bill you receive, and to scrutinize those invoices to confirm each charge is for care you receive.

10:06AM EDT October 10. 2012 - WASHINGTON -- More than a quarter-million Medicare beneficiaries are potential victims of identity theft and hampered in getting health care benefits because the government won't issue new IDs, according to an investigation report released today.
Medicare officials say it's too expensive and too many agencies are involved to reissue those numbers to patients victimized by identity theft — about 284,000 beneficiaries, according to a report by the Department of Health and Human Service's inspector general.
Beneficiary numbers are directly connected to a patient's Social Security number, and the government is unable to create a new Social Security number for a patient whose Medicare identity has been stolen, according to the report, which was obtained by USA TODAY.
And beneficiaries can do little more than report abuse of their beneficiary numbers because the government does not provide them with updates about investigations or amend their records with correct billing information. That, investigators say, slows down access to care.
The Centers for Medicare and Medicaid Services (CMS) "should mitigate the damage of medical identity theft by ensuring that beneficiaries retain their access to services if their Medicare numbers have been misused by others," the report states.
Investigators suggested that the CMS, which administers Medicare, place an indicator in breached records or records known to have been used fraudulently so claims processors know when a legitimate claim should go through. The agency agreed to consider that suggestion, the report said.
The report also said the government should find a way to issue new numbers, even if it means moving away from using Social Security numbers.
Investigators also found that though the government has created a database that includes the 284,000 breached or stolen beneficiary numbers, contractors have not received guidance about what to do with that list. In some cases, contractors continue to send out government checks even after the numbers have been compromised.
The government said the system is being fixed now.
Medicare should also correct beneficiaries' billing records when fraudulent activity has occurred, investigators recommended, but the CMS disagreed.
"Our major concern is that CMS's adjustment of beneficiary billing records could have a negative impact on criminal and civil prosecutions and on the underlying integrity of the Medicare claims processing system," wrote Marilyn Tavenner, acting administrator for CMS.
In 2011, the government recovered a record-breaking $4.1 billion in health care fraud money. Between 2009 and 2011, it collected $7.20 for every dollar spent on fighting fraud -- a jump of $5.10 for every dollar spent between 1997 and 2008, according to inspector general reports.

Compromised Medicare identities

The following numbers show cases Medicare classifies as having been involved in identify theft, believed to have been involved in identity theft and vulnerable to identity theft.

Risk level	Beneficiaries	Providers
High	56,164	1,383
Medium	213,792	3,547
Low	13,616	32
Total	283,572	4,962

Source: Department of Health and Human Services

Events Akron BBB Secure Your ID Day
895 E Tallmadge Avenue
Akron, OH 44310
10/20/12 at 9:00 AM - 12:00 PM
Your BBB along with Neoshred will be providing Free Public Document Shredding at our Fall 2012 Secure Your ID Day. The event will take place on Saturday October 20, 2012 from 9am-12pm at 895 E. Tallmadge Avenue, Akron, OH 44310. This free service is to help promote proper document destruction which is one step consumers should take to protect themselves from possible Identity Theft. Simply bring your documents to the location listed above the day of the event and we will shred them for you on the spot free of charge & provide you with some useful consumer tips as well. There is a limit of 10 boxes/bags per person however if you are going to greatly exceed the limit please contact NeoShred directly at 330 253-8260 to make arrangements.
Sponsored By:
Better Business Bureau & NeoShred
For More Information Contact: Amanda Warner 330-253-4590
awarner@akronbbb.org

Personal Records Breached

So far this year, government agencies have more than doubled their totals from last year, reaching 9.6 million in just the first five months of 2012. Who knows where we'll be by the end of the year -- or how many innocent people will be exposed to fraud and identity theft due to the negligence of government employees or third-party vendors?
And remember, these are just the breaches we know about. In some states, government agencies are not legally required to publicly report data breaches, or to notify potential victims that their personal information has been exposed. To take one little-known example, local governments in California are exempted from that state's breach notification law -- "a big exception, in my opinion," as Clearinghouse founder and director Beth Givens told us, since local governments "compile a great deal of personal information." Furthermore, out of 268 breach incidents reported since 2009, the 67 of the public agencies responsible (and I use that term loosely) couldn't even figure out how many records were lost. That fact alone will tell anyone with basic math skills and a lick of common sense that this epidemic is much worse than we know.
What's even more astonishing than the total number of personal records breached is how the databases were compromised in the first place. Despite what news reports, urban legend, and simple logic might lead you to believe, sophisticated, premeditated attacks by hackers accounted for only 40 breaches since 2009, a mere 15 percent of the total.

More from ABC News

• The Most Outrageous Tax of the Year
• Clinton Speech: ID Theft Possibility?
• For Ransom: Your Medical Records

IRS Warnings

Identity Theft Scams

The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. Scamsters will use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the Internet (email), it is called phishing.
The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.
Additionally, clicking on attachments to or links within an unsolicited email claiming to come from the IRS may download a malicous computer virus onto your computer.

Tax-filing and Payment Extensions Expire Oct. 15; Check Eligibility for Overlooked Tax Benefits; Choose e-file; Payment Options Available

IR-2012-73, Sept. 28, 2012
WASHINGTON — The Internal Revenue Service today urged taxpayers whose tax-filing extension runs out on Oct. 15 to double check their returns for often-overlooked tax benefits and then file their returns electronically using IRS e-file or the Free File system.
Many of the more than 11 million taxpayers who requested an automatic six-month extension this year have yet to file. Though Oct. 15 is the last day for most people, some still have more time, including members of the military and others serving in Iraq, Afghanistan or other combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due. People with extensions in parts of Louisiana and Mississippi affected by Hurricane Isaac also have more time, until Jan. 11, 2013, to file and pay.
Check Out Tax Benefits
Before filing, the IRS encourages taxpayers to take a moment to see if they qualify for these and other often-overlooked credits and deductions:

• Benefits for low-and moderate-income workers and families, especially the Earned Income Tax Credit. The special EITC Assistant can help taxpayers see if they’re eligible.
• Savers credit, claimed on Form 8880, for low-and moderate-income workers who contributed to a retirement plan, such as an IRA or 401(k.
• American Opportunity Tax Credit, claimed on Form 8863, and other education tax benefits  for parents and college students.

E-file Now: It’s Fast, Easy and Often Free
The IRS urged taxpayers to choose the speed and convenience of electronic filing. IRS e-file is fast, accurate and secure, making it an ideal option for those rushing to meet the Oct. 15 deadline. The tax agency verifies receipt of an e-filed return, and people who file electronically make fewer mistakes too.
Everyone can use Free File, either the brand-name software, offered by IRS’ commercial partners to individuals and families with incomes of $57,000 or less, or online fillable forms, the electronic version of IRS paper forms available to taxpayers at all income levels.
Taxpayers who purchase their own software can also choose e-file, and most paid tax preparers are now required to file their clients’ returns electronically.
Anyone expecting a refund can get it sooner by choosing direct deposit. Taxpayers can choose to have their refunds deposited into as many as three accounts. See Form 8888 for details.
Quick and Easy Payment Options
For unemployed workers who filed Form 1127-A and qualified to get an extension to pay their 2011 federal income tax, Oct. 15 is also the last day to pay what they owe, including interest at the rate of 3 percent per year, compounded daily. Doing so will avoid the late-payment penalty, normally 0.5 percent per month.
Taxpayers can e-pay what they owe, either online or by phone, through the Electronic Federal Tax Payment System (EFTPS), by electronic funds withdrawal or with a credit or debit card. There is no IRS fee for any of these services, but for debit and credit card payments only, the private-sector card processors do charge a convenience fee. For those who itemize their deductions, these fees can be claimed on Schedule A Line 23. Those who choose to pay by check or money order should make the payment out to the “United States Treasury”.
Taxpayers with extensions should file their returns by Oct. 15, even if they can’t pay the full amount due. Doing so will avoid the late-filing penalty, normally five percent per month, that would otherwise apply to any unpaid balance after Oct. 15. However, interest and late-payment penalties will continue to accrue.
Fresh Start for Struggling Taxpayers
In many cases, those struggling to pay taxes qualify for one of several relief programs, including those expanded earlier this year under the IRS "Fresh Start" initiative.
Most people can set up a payment agreement with the IRS on line in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to six years or request a short-term extension to pay. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS.
Taxpayers can also request a payment agreement by filing Form 9465-FS. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
Alternatively, some struggling taxpayers qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.

If you have any questions in regards to this information please contact:  A Merika Tax Financial and ID Theft Protection  @ 216-744-8126 or visit our website  www.idtheft-amerikatax.com

Details on all filing and payment options are on IRS.gov.

Watch for Identity Theft using Google Alerts

How to Watch for Identity Theft Using Google Alerts.

Google Alerts is a great way to set up a virtual personal watchdog that will constantly look for attempts at identity theft.
This is much better than checking these values by hand periodically, since Google Alerts lets you set it and forget it. You'll be notified as soon as a thief posts your data online for others to use.


1. Know how to set up Google Alerts. Read How to Use Google Alerts if you don't know what to do.

2. Set up Google alerts for your key personal data. Here are some of the alerts you might consider running:
Your name
Your phone number
Your address (home and place of work)
Your date of birth (just to be safe)
Your license plate number
Your drivers license number
Your email address

3.  Read the alerts that Google will email you when the information you listed becomes published anywhere on the web that Google crawls. If any of these alerts are sent to you in a way you think indicates a potential identity theft, take immediate action. Check the link(s) provided in the Google alerts. Look for anything unusual either within the sites you're sent to, or look for a pattern in general relating to the type of sites you're being alerted to (such as financial institutions, sites that hold security information, etc.) Be especially alert if the returns with your personal details suddenly spike. You might get an occasional ping with your personal details from Google Alerts but if you notice a sudden increase in the amount of returns reaching your in-box, this is a cause for concern and should be investigated quickly.

4.  Seek help from a ID Theft Victim Assistance Representative or the local police if you're not sure how to respond to an alert where identity theft appears to have occurred. You may need to respond quickly if it appears that fraud may be happening using your personal details.

Tips:  Be careful about what warnings you set. Because your search history is saved, and Google alerts are sent to your email address, you can inadvertently expose information you want to keep private using these techniques if someone were to access your email. Some things to avoid using in these alerts:
Your social security number
Your credit card numbers 
Your bank account numbers 
Your mother's maiden name, since banks and some other institutions use this as an identity check. Be aware of when you've put your own personal information out there on social networking sites, for domain addresses, etc. Try to be vigilant about checking privacy boxes to keep as much personal information as possible away from public eyes. It is important to refine searches to help Google Alerts be the most efficient in returning the personal information. For example, you can enclose your name or address in quotation marks. You can also use plus and minus signs to narrow the returns to particular terms, names or information.
Warnings:  Be aware that search terms don't always turn up the results you're seeking. This means that you may need to cover a few different ways of inputting your personal information or find some keywords that are good to accompany your personal details. Keep tweaking to get the best results.  Things You'll Need:
Google Alerts
Internet access

Any further information or assistance   Call 216-744-8126  A Merika Tax Financial and ID Theft Protection.   www.idtheft-amerikatax.com

19 Action News

19 Action News CLEVELAND, OH (WOIO) - The identity of a Most Wanted fugitive who stole millions of dollars will be revealed today. Bobby Thompson: Elusive fugitive pleads not guilty in court U.S. Marshals capture elusive fugitive Updated: Tuesday, May 8 2012 4:03 PM EDT2012-05-08 20:03:21 GMTMay 08, 2012 4:03 PM EDT May 08, 2012 4:03 PM EDT Late Monday night, the United States Marshals Service captured one of Americas Most Wanted and elusive fugitives who is accused of stealing millions of dollars that had been donated for the sole purposeMore >> A mystery man who got busted in Oregon then extradited back to Cleveland faced a judge Tuesday and pleaded not guilty to several charges including fraud, theft, and corruption.More >>U.S. Marshal Peter J. Elliott will have a press conference to announce that the fugitive known as "Bobby Thompson" has been positively identified. Thompson, 66, had been one of America's Most Wanted fugitives and the subject of a nationwide manhunt before being caught in Oregon last April. He's accused of scamming millions of dollars out of Ohioans -- money that had been donated for the sole purpose of aiding U.S. veterans. He was listed as one of America's Most Wanted and elusive fugitive. "Bobby Thompson," which was an alias, was on the run for over the last two years where he assumed numerous fictitious names and was known to alter his appearance. He was charged with unlawful flight to avoid prosecution, identity theft, fraud and money laundering. In the early 2000s, the subject, using the alias Bobby Thompson, founded the U.S. Navy Veterans Association (USNVA), a charitable organization whose stated mission was to provide assistance to veterans and members of the U.S. Armed Forces. The USNVA claimed to have a national headquarters in Washington D.C., but its base of operations was the Tampa, FL., area. From its inception to the summer of 2010, it is estimated the USNVA received close to $100 million dollars in nationwide donations. Officials in several states are investigating the USNVA and it is believed little, if any, of the money actually benefited veterans or current service members. In August 2010, "Thompson" was charged in Ohio with various offenses relating to this fraudulent activity. A co-conspirator is currently serving a five year prison sentence in Ohio for her role in this scam after pleading guilty in June 2011. "Thompson", the alleged mastermind of this plot, fled in June 2010, when he learned of the criminal investigation. "Thompson" was featured on America's Most Wanted on two separate occasions, with the most recent being March 2011. Copyright 2012 WOIO. All rights reserved.