A huge global police operation has resulted in the removal of dozens of websites that were offering credit card information for sale.

A two-year worldwide investigation led to a series of raids in Australia, Europe, the UK and the USA, resulting in the arrest of two Britons and a Macedonian, and the shutdown of 36 sites, said Britain’s Serious Organised Crime Agency (SOCA).

Some credit card and bank account details were being sold for as little as £2 – and each victim would have been utterly oblivious to the trade going on using their data and details.

Lee Miles, the head of Soca’s cyber crime unit, said: [1]“Criminals are turning over vast volumes of these cards. We must match the criminals – it’s an arms race.

“They are industrialising their processes and likewise we have to industrialise our processes to match them.”

It is thought that in many cases the brains behind some of these operations are ‘bedroom’ hackers, recruited into the pay of criminal gangs to create the malware necessary to carry out their fraud.

Another factor that makes it hard for websites to be policed is that many internet service providers allow people to register websites anonymously, which makes them much harder to trace.

Remember that with ProtectMyID membership your credit report will be monitored for changes and you will be alerted to any sign of identity fraud. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud Resolution Assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

The US military hasn’t had the best press so far this year. And now one of their number has been arrested for a foiled attempt to steal the identity of one of the world’s richest men in what has been described as a ‘simple scam’.

Brandon Lee Price, a 28-year-old US Army soldier who went AWOL and is wanted as a deserter, is accused of impersonating billionaire Microsoft co-founder Paul Allen to successfully get access to his bank account.

Having altered the address on Allen’s account, he was able to get a debit card in Allen’s name sent to an address in Pittsburgh, in Price’s home state of Pennsylvania.

FBI reports allege that after having changed the address on the billionaire’s account, Price waited a few days before reporting the card as lost and asking for a new one to be sent to him.

Price is subsequently said to have allegedly used the account for personal payments on a Armed Forces Bank account, to attempt to take out $15,000, as well as various mundane personal expenses. In no time at all the bank’s suspicions were aroused, the police stepped in, and he was arrested on March 2 and charged with wire fraud and bank fraud.

Allen, who has an estimated net worth of $14.2 billion, owns NFL and NBA sports teams as well as one of the world’s biggest yachts, the Octopus, at $250m. He is also renowned for his philanthropy and donations to charitable causes.

Remember that with ProtectMyID membership your credit report will be monitored for changes and you will be alerted to any sign of identity fraud. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud Resolution Assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

Research from CIFAS, the UK’s Fraud Prevention Service, has revealed that it is not just financial losses that affects victims of fraud – but that it is actually the time taken to sort out the mess that can have the most devastating impact on victims.

When asked the question  ‘What is the worst side effect for victims of fraud?’, respondents were given a choice of three responses, based upon the three most common themes raised by victims of fraud who answered a previous CIFAS online survey.

Over 41% of respondents said ‘Time lost trying to clear up the mess’, with almost 31% answering ‘Trust in people/institutions damaged’ and a further 27% citing ‘Financial impact and loss’.

CIFAS Communications Manager, Richard Hurley, said: “For victims of fraud, the financial loss is obviously a very real one. Lenders and suppliers, however, are in most cases under an obligation to refund any losses or debts taken out in an innocent party’s name. This means that such losses are actually temporary.

 “What is interesting is that respondents to this poll have overwhelmingly emphasised this by confirming that the real trauma is the impact upon the fraud victims’ time, as they try to untangle themselves from the mess caused by a fraudster.”

Untangling the mess left by ID theft is one thing – losing trust is another.  For most victims, the methods fraudsters used to get the details they needed in order to impersonate them or to hijack an existing account remains unknown. With over 121,500 individual cases of impersonation or account takeover recorded in 2011[1], the scale of the problem cannot be over-estimated.

You can take some precautions against ID Fraud and the time it takes to clear it up:

-          Never give your identity details or financial information over the phone to someone calling unexpectedly even if it is the bank/company you use: especially if it is one you have never used.

-          Destroy or shred any documentation you no longer need that an ID fraudster could use, including bank or credit card statements, cheque book stubs and so on.

-          By monitoring your credit report you can give yourself an extra form of protection against the risk of ID fraud, by getting alerts of any changes to your credit report.

Remember that with ProtectMyID membership you will be alerted to any sign of identity fraud and your credit report will be monitored for changes. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud resolution assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

The use of fake ID is a no laughing matter, but you have to wonder sometimes at some of the methods used by would-be fraudsters.

Not content with trying to produce forged documents belonging to any other person, one Brazilian man took it a stage further by trying to pass himself as Hollywood legend Jack Nicholson.

41-year-old Ricardo Sergio Freire de Barros, from the north-eastern city of Recife, used a 2003 photograph of the Batman and Shining star on his fake documents.

Police later released a copy of the forged document which shows a photo of Nicholson’s face next to the signature of “Joao Pedro dos Santos” and a fingerprint.

Barros, who has little if any resemblance to Jack Nicholson, was later charged with both using false documents, carrying ID belonging to other people, and forgery.

“The document with the photo of the actor and other false identification were used to start a fictitious company and with it, also open a bank account,” said chief investigator Erivaldo Guerra.

“That way, he would use the limits on the checks and the credit cards to steal money.” 

Barros had already been under investigation for three months, for fraudulent activity, when he was arrested.

Of course, ID fraud can happen to anyone – and even the dimmest fraudsters would usually realise that it’s best not to use a photograph of someone extremely famous.

Remember that with ProtectMyID membership you will be alerted to any sign of identity fraud and your credit report will be monitored for changes. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud resolution assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

Has Britain’s economic malaise contributed to the rise in fraud?

The latest analysis of fraud trends during 2011 by CIFAS – the UK’s Fraud Prevention Service – has revealed a disturbing 9% increase in the overall level of fraud, when compared with the previous year, with further key findings presenting a stark picture of the economic crime landscape in the UK.

Over 236,500 frauds were identified during 2011 by CIFAS members, the highest number ever recorded – and over 120,000 of those were individual cases with an identifiable victim. The continued blight of identity fraud accounted for over 113,000 fraud cases (a 10% increase from 2010 levels and representing 48% of all frauds).

There was an 18% surge in facility takeover fraud (where a fraudster gains access and fraudulently uses a victim’s account such as a credit card, bank account or mobile phone), meaning that this type of fraud has rocketed by nearly 300% in just five years.  In addition, 2011 saw a 13% rise in misuse of facility fraud (where an account, policy or other facility has been legitimately obtained but is later used fraudulently).

Richard Hurley, CIFAS Communications Manager, says: “It is vitally important to remember that fraud and economic crime are offences with a range of motivations. Many of these frauds will undoubtedly be committed by organised criminal elements, but many will also be committed by people who seemingly feel that their circumstances leave them no choice.

“Equally, financial desperation leaves many susceptible to potential scammers. Untangling the mess that fraud causes, irrespective of motivation, however, is time-consuming, damaging and costly to businesses, to the public sector and to individuals. Rather than being the ‘victimless crime’ it is sometimes heralded as, fraud actually makes victims of us all.”

Remember that with ProtectMyID membership you will be alerted to any sign of identity fraud and your credit report will be monitored for changes. If you suspect that you have been a victim of fraud, then ProtectMyID’s Fraud resolution assistance will ensure a dedicated caseworker will work with you to help you sort everything out from start to finish.

It’s bad enough when you share a flat with someone you are not sure whether or not to trust – but what if that person doesn’t even exist?

 A new threat that could affect tenants in apartment blocks is a scam in which fake tenants ‘rent’ out flats in blocks where post is delivered and left in communal areas. The ‘tenant’ – who will stay no longer than a few days – then goes through the real occupants’ post, looking for ID to steal with which to set up fraudulent credit cards and bank accounts. 

The agents or the landlords would probably have suspected nothing – the ‘phoney tenant’ will have probably produced all the ID checks and references necessary and paid rent and deposits upfront – but very likely with a stolen identity. 

One example, described here, led to a fraud being uncovered only after a police raid found a vast number of expensive items, including iPads and iPhones, bought using stolen credit and debit cards. They also found a set of keys for a flat ten miles away – the fake tenant had succeeded in stealing the identities of three of the six occupants in the block concerned. 

The agents were later informed that the ‘tenant’ had paid for his deposit & rent via a stolen debit card, and that the individual defrauded wanted their money refunded. 

So what can be done to help prevent this? Insurance specialist Michael Portman says: “Tenant fraud is a growing problem for agents and landlords alike. It is essential that agents have a checklist for new tenants that includes obtaining ID documents and proof of current residency at an early stage of the tenancy application.” Experian’s Check My Tenant service is a useful source for  helping landlords verify their tenant.

And for tenants, make sure you check your bank and credit card statements frequently so you can act quickly if you see anything unusual or irregular. With ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

Fraudsters will fake identities for a multitude of criminal activities to make money at someone else’s expense, but they will always end up getting found out if they take it a step too far.

Late in 2011 a London couple were found guilty of housing fraud after it was discovered that they had bought a council-owned home under the Right To Buy initiative using fake, stolen identities.

The couple were imprisoned for twenty months and two years respectively after an investigation by Southwark Council found that they had been letting a council property he had earlier bought using identity fraud.

It was only when his tenant claimed he was being illegally evicted, and the council’s tenancy relations service started looking into the case, that the deception was uncovered.

In addition to seeking £45,000 criminal damages from the couple, the council issued civil proceedings to recover outstanding account charges of £14,100 as well as ownership of the property.

Councillor Ian Wingfield, cabinet member for housing, said: “There are almost 20,000 people in need of housing in Southwark, so to try to obtain a home by deception then profit from it while other, genuine, applicants wait for a home is disgraceful.

“We will come down hard on anyone found to be illegally obtaining housing. Supplying falsified documents to the council, or any government authority, is against the law. We will pursue anyone attempting to defraud the public purse and we will recover associated funds.”

Identity theft can often lead to identity fraud which can seriously damage your credit rating – so it is always best to destroy any rubbish that contains personal information, including cheque stubs, receipts and bank statements.

With ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

Proving your ID can be tricky sometimes, whether it’s showing that you’re old enough to be able to buy a drink or explaining at the bank that you are who you say are.

One area in which irrefutable proof of ID is sacrosanct is border control – unless you have a passport or a valid ID card, in many cases a biometric, new-fangled form of electronic identification, you can forget about being able to go from one country to the next.  Especially when it comes to the USA, which can (with the greatest respect) sometimes feels to non-Americans like a nightclub with the most rigid door policy.

However, a couple of weeks ago a Canadian man who forgot his passport managed to cross the border into the US – using a copy of it that he’d scanned on to his iPad.

Martin Reisch, a 33-year-old from Montreal, realised shortly before he approached the border that he did not have his passport with him. Although he had his standard drivers’ licence, that in itself would not be enough to get him past border control, as since 2009 Canadian citizens have needed either a passport or a NEXUS card (a NEXUS card is a form of ID for travelling between USA and Canada) to get into the USA.

Reisch told the border officers that he was only crossing over to deliver some Christmas presents in Vermont, and promptly presented them his iPad with the screen displaying his scanned passport.

As Reisch explained: “He took the iPad into the little border hut. He was in there a good five, six minutes. It seemed like an eternity. When he came back, he took a good long pause before wishing me a Merry Christmas.”

The officers may have made a Yuletide exception for the Canadian with the iPad, but it is by no means impossible that in the near future scanned identification may become standard practice.

With digital devices such as smartcards and chip and pin being used to combat the threat of ID fraud, it could only be a matter of time.

Remember, with ProtectMyID membership you will be alerted to any signs of identity fraud, and get a dedicated expert to help you resolve any fraud issues should you have any.

The passwords you choose for your online banking, login details or other forms of entry protection are crucial.

Too easy and predictable, and it could be guessed by someone with the intention of committing ID Theft or gaining access to your personal finances. 

The most predictable of all in 2011 was ‘password’, followed by ‘123456’, ‘12345678’ and ‘qwerty’.

On a brighter note though. one of 2011’s best stories was that a joke related to online security matters won the prize for the funniest joke at this year’s Edinburgh Fringe.

A host of comedy critics spent two weeks looking for the best jokes, before making a top 30 shortlist and putting it to a public vote.

The winner was relatively unknown comedian Nick Helm, with this cracker that will bear repeating at every Xmas party:

    “I needed a password eight characters long-  so I picked Snow White and the Seven Dwarves.”

Merry Christmas and a Happy New Year from everyone at ProtectMyID – and stay safe over the holiday period.

There was a 77% rise in attempted mortgage fraud in the three months to September 2011, compared to the same period in 2010, according to the latest findings from Experian’s Fraud Index.

No fewer than 49 of every 10,000 mortgage applications were found to be fraudulent, a figure 53% higher than the previous three months’ figures between April and June 2011.

Nick Mothershaw, Director of Identity & Fraud at Experian UK & Ireland, said: “More than 90 per cent of mortgage fraud tends to originate from genuine individuals misrepresenting their financial situations attempting to buy property that would ordinarily be out of reach. “

It wasn’t just mortgages that were targeted – 30 out of every 10,000 current bank accounts were revealed as fraudulent – an increase of 48% from a year ago.  Bogus savings account applications were up 47 per cent year on year and 16 per cent over the last quarter.

Mothershaw added: “Current accounts continue to be frequently targeted, which combined with the growth in savings account fraud, points towards an increasing trend for deposit accounts to be targeted for money laundering purposes or to then be used as a springboard to more lucrative credit products.”

Credit card fraud was also up – 7% in the past year – at 13 out of every 10,000 applications, though loan fraud remains the least targeted credit facility of the financial products Experian analyses, remaining constant at a rate of six fraudulent applications per 10,000 received.  Over the year this equates to a ten per cent decrease in fraud rates.