Small Business

Rocket Lawyer's recent small business survey offered up some interesting insight on what is going with small businesses. The survey provides excellent information as to why small business owners take the plunge to begin with and then explores the obstacles they face thereafter. What’s particular interesting is that over HALF of these small business owners had legal issues in the last year and of those owners, 11.9% had legal issues that involved failing to collect late payments.

Take a look at what’s going on inside small business owners heads.

SMALL BUSINESS LEGAL ISSUES: FAILURE TO COLLECT PAYMENTS TOPS THE LIST

 

If the collection of payments has become a problem for your business, we can help...
 find your Legal Business Plan HERE


Richard Figley
Independent Associate
614.395.2313
figleyr@legalshield.com
www.richardfigley.com
www.ID-TheftProtection.com

9 Alarming Statistics About Identity Theft

Posted by Rebecca Black on April 26, 2012

Identity theft is a serious problem worldwide. This crime flourishes when thieves are given access to your personal information, allowing them to commit crimes under your name or spend your money unbeknownst to you. You may be under the impression that identity theft could never happen to you. You may be careful with whom you give your Social Security number to, or diligent about changing up your passwords for the sake of safety. However, identity thieves are getting smarter about how they access your information. The statistics revolving around identity theft are disconcerting, but with a better understanding of how these crimes continue to be committed, we can help lower the rate of identity theft and prevent ourselves from becoming another statistic.

1. Odds Against You

   The United States Department of Justice states that in 2010, 7% of all United States households had at least one member of the family at or over the age of 12 who has been a victim of some sort of identity theft. That means the odds are greatly against you. Identity theft sets the government, American citizens, and businesses back by billions of dollars each year. From 2005 to 2010, 64.1% of these instances involved credit card fraud, the fastest growing type of identity theft. Over the range of this time period, credit card misuse was doubled as the determining factor in identity theft.

2. Grave Robbing

   According to Time Magazine, 2.5 million dead people get their identities stolen every year. Studies conducted by ID Analytics have shown that identity thieves have been applying for credit cards under the names of the deceased, opening up clean credit lines, new cell phone services, and in a staggering 1.6 million cases, using Social Security numbers previously belonging to dead people. This can be devastating for family members of the deceased who have been left to manage his or her estate. More than 2,000 identities of corpses per day are assumed by these fraudsters.

3. Social Media Fraud

   With a 13% increase in identity fraud between 2010 and 2011, a study conducted by Javelin Strategy & Research showed that consumers may be putting themselves at a higher risk for identity theft as a result of their increasingly intimate social media behaviors. Sixty-eight percent of people with public social media profiles on platforms such as Facebook or Twitter shared their birthday information with 45% of them getting into specifics about the exact month, day, and year. Sixty-three percent shared where exactly they attended high school. Eighteen percent shared their phone number and 12% shared their pet’s name. Not only are all of these details typically asked when verifying an identity, but people also frequently use them in passwords. The statistics are clear — people are giving away far too much personal information on social networking sites, allowing for fraudsters to easily steal their identities.

4. Medical Identity Theft

   According to the findings from a study conducted by the Federal Trade Commission, 19,428 complaints regarding medical identity theft have been reported to the Consumer Sentinel Database since January 1, 1992. Prior to that, medical-related identity theft was not documented, so there may have been many more instances of it that simply went unreported. Likewise, the number of medical identity theft victims rose from 1.6% in 2001 to 1.8% in 2005. Medical identity theft can be distressing to its victims, who often incur charges for medical care they didn’t even receive after their computerized medical records are stolen. A large chunk of these victims experienced raised premiums as a result of medical identity theft, with almost half losing coverage entirely. Medical identity theft is more of an insider crime, as it is typically done by a health care professional. It may be committed by doctors, nurses, lab technicians, and others associated with the hospital. Part of the reason that medical identity theft is made possible could be because almost half of seniors carry their Social Security card or Medicare card in their wallets, which is a risky place to keep such valuable information.

5. College Students at Risk

   The United States Department of Education encourages college-aged students to be particularly aware of identity theft. After they conducted a recent survey, the Department of Education found that 48% of the students that participated in the survey admitted to leaving personal information out in their dorm rooms, some of which was financial in nature. Thirty-one percent of these students were burglarized or knew someone in the building who was burglarized, which means that their personal information could have been compromised. Identity thieves look to college-aged adults because they often have good, clean credit scores, making them an ideal target. On college campuses, Social Security numbers are often used for identification purposes. For example, a student may use their social to register for classes. With such easy access to your Social Security number, an identity thief has all the information they need to commit their crime. Lastly, college students are not as attentive to their banking accounts and private information, which buys the identity thief valuable time with your funds at hand.

6. Misleading Trial Offers

   The Consumer Federation of America works with commercial providers of identity theft services to figure out ways to keep people safe from identity theft. According to a 2012 report it released examining ways these services could be bettered, customers most commonly complained about the service’s lack of addressing misleading trial offers. Free trials are everywhere, offering a week or months’ worth of Weight Watchers, Netflix, or Proactiv face wash. However, customers complained that the identity theft protection sites themselves were unclear as to the trial offer stipulations. The problematic part is that customers often forget to cancel these temporarily “free” subscriptions, or they don’t realize they need to cancel, and then charges begin to accrue in their accounts from a service they may not even use. Customers feel this may as well be on par with the stealing that occurs via identity theft. So, even sites that help protect against identity theft may be draining your funds via an unclear trial offer scheme.

7. Cost to Victims

   According to the Federal Trade Commission’s 2006 Report, while 50% of all identity fraud victims accrue little to no out-of-pocket charges for the legal fees, lost wages, and false payments brought upon them during the fraud, a small bracket of 10% of all identity theft victims incur considerable out-of-pocket expenses. This can be upwards of $1,200. This is most commonly the case when fraudsters use a false identity to open new accounts. The top percentile of these victims lost as many as $3,000, an unsettling amount to personally lose as a result of identity theft. Few things leave a person feeling more vulnerable and taken advantage of. Likewise, resolving identity theft crime isn’t easy. Ten percent of all victims spend 55 or more hours sorting out their problems, while the top 5% spend at least 130 hours.

8. Child Identity Theft

   Since children have perfectly clean backgrounds, no real credit score to speak of, and their parents don’t think to monitor the status of their identity, they make easy targets for identity theft. The main reasons fraudsters use child identities is to administer illegal immigration, steal, and wipe clean the credit scores of a loved one by utilizing that of a child in their place. Sadly, this can have negative effects on the child’s credit down the line, and they could have trouble securing student loans, getting a decent job, or even purchasing a cellphone. In a study conducted by Carnegie Melon’s CyLab, 10.2% of the children reported that someone else had used their Social Security number fraudulently. The worst of these accounts was toward a 16-year-old girl who had reported fraudulent charges of $725,000 under her name.

9. Police Notification

   According to the Consumer Sentinel Network’s 2011 report, 57% of identity theft victims notified a police department, resulting in a police report. Six percent notified a police department, but did not have a police report filed, and 7% notified the police but were unsure as to whether a report was filed. This leaves an alarming 30% of victims who didn’t bother to notify the police at all. In order to get ahold of the problem of identity theft, victims need to be proactive about stopping thieves with police intervention. Otherwise, the crime will perpetuate, as it is easy to get away with and can strongly benefit the thief.
   
   
   
   
   
   Richard Figley
   Independent Associate
   614.395.2313
   figleyr@legalshield.com
   www.richardfigley.com
   
   
   
    

Medical ID Theft nets $200,000

By Will James

HAUPPAUGE, N.Y.—A former supervisor at a Long Island brain injury treatment center stole the identities of dozens of patients and used them to file false tax returns that netted him $200,000 in refunds, prosecutors said Monday.

Benjamin Achampong, 30 years old, was until 2006 a supervisor at the Long Island Head Injury Association, a nonprofit in Commack, N.Y., providing housing, treatment and other services for those who have suffered head injuries from auto and bicycle accidents, guns, child abuse or alcohol use.

Suffolk District Attorney Thomas Spota said Achampong used his position to steal identification information from 56 patients’ files. In 2006 and 2007, he then used their identities to electronically file false tax returns in New York, New Jersey and with the federal government, Spota said.

Spota called Achampong a “shameless, incorrigible thief who has absolutely no moral standards whatsoever.”

Achampong pleaded not guilty on Friday to a 48-count indictment accusing him of grand larceny, identity theft, filing false tax returns and other charges. He faces a maximum sentence of 14 years in prison, prosecutors said.

After a 14-month probe, Achampong was discovered in Georgia, where he was in custody on identity theft charges in a separate investigation. He is also facing identity theft charges in Delaware. He pleaded guilty in 2009 to stealing the identity of a dead former patient of another Long Island residential treatment facility, where he worked, prosecutors said.

Defense attorney Michael Alber said he wants more information from prosecutors.

The Head Injury Association said in a statement that it fully cooperated with the probe and is “appalled by the possible victimization of our clients by this former employee.”

Andy Kraus, a spokesman for the association, declined to say whether Achampong’s departure had anything to do with the allegedly stolen identities.

Achampong was being held until he could post a $50,000 cash bail or a $100,000 bond

Richard Figley

Independent Associate

figleyr@legalshield.com

www.ID-TheftProtection.com

Legal Requirments Relating to ID Theft

 

Businesses Must Provide Victims and Law Enforcement with Transaction Records Relating to Identity Theft

The Fair Credit Reporting Act (FCRA) spells out rights for victims of identity theft, as well as responsibilities for businesses. Identity theft victims are entitled to ask businesses for a copy of transaction records — such as applications for credit — relating to the theft of their identity.
Indeed, victims can authorize law enforcement officers to get the records or ask that the business send a copy of the records directly to a law enforcement officer. The businesses covered by the law must provide copies of these records, free of charge, within 30 days of receiving the request for them in writing. This means that the law enforcement officials who ask for these records in writing may get them from your business without a subpoena, as long as they have the victim’s authorization.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA including this requirement, which is known as Section 609(e). Here is some additional information to help your business comply with this provision of the law:
Q. Who must comply with Section 609(e) of the FCRA?
A. The law applies to a business that has provided credit, goods, or services to, accepted payment from, or otherwise entered into a transaction with someone who is believed to have fraudulently used another person’s identification. For example, if your business opened a cell phone account in the victim’s name or extended credit to someone misusing the victim’s identity, you may be required to provide the records relating to the transaction to the identity theft victim or the law enforcement officer acting on that victim’s behalf.
Q. What documents must my business provide?
A. Your business must provide applications and business transactions records, maintained either by your business or by another entity on your behalf, that support any transaction alleged to be a result of identity theft. Records like invoices, credit applications, or account statements may help victims document the fraudulent transaction and provide useful evidence about the identity thief.
Q. What are the procedures for requesting these materials?
A. Requests for documents must be submitted in writing. Your business may specify an address to receive these requests. You may ask the victim to provide relevant information, like the transaction date or account number, if they know it. You also can require that victims provide:
1. proof of identity, like a government-issued ID card, the same type of information the identity thief used to open the account, or the type of information you are currently requesting from applicants; and
2. a police report and completed affidavit. Victims can use the FTC’s ID Theft Affidavit, available at ftc.gov/idtheft, or another affidavit you accept.
Q. Is it ever appropriate not to provide documents?
A. You can refuse to provide the records if you determine in good faith that:

• you cannot verify the true identity of the person asking for the information;
• the request for the information is based on a misrepresentation; or
• the information requested is Internet navigational data or similar information about a person’s visit to a website or online service.

Your business may not deny disclosure of these records based on the financial privacy provisions of the Gramm-Leach-Bliley Act (see Subtitle A of Title V of Public Law 106-102). Nevertheless, you may refuse to disclose them if state or another federal law prohibits you from doing so.
Q. Are there recordkeeping requirements of Section 609(e)?
A. Section 609(e) does not require any new recordkeeping procedures for your business.



Richard Figley
Independent Associate
614.395.2313

 www.ID-TheftProtection.com
 www.richardfigley.com

27,000 NEW Identity Theft Victims Every Day

After reading an article in the Early Bird on ID theft and as a person traveling around the mid-west giving identity theft workshops I wanted to pass along some educational material to the readers on identity theft.
The Federal Trade Commission reports that identity theft has been the NUMBER ONE consumer complaint for TWELVE consecutive years. The WI DATCP has now added it their list as the source of the fastest rising group of consumer complaints.  Here are just a few facts:
•       There are currently over 27,000 NEW identity theft victims EVERY DAY!
•       Over 512 million Americans’ Identities have been reported lost or stolen since January 20010.
•       Over400,000 dead people opened bank accounts last year.
•       The revenue from trafficking financial data has surpassed that of drug trafficking. –  US Secret Service
•       Over3.5 million children have already fallen victim to identity theft in the US.

“Identity Theft is poised to increase by a factor of 20 over the next two years. The criminals are still trying to figure out what to do with all the data.”  •       You are THREE times more likely to have your identity stolen than you are to have your house or  car broken into.
•       The average dollar amount charged in Identity Theft:  $92,893
•       The average time taken by a victim to restore their identity is 607 hours.
•       Most identity theft issues are non-credit related.

What most people don’t understand and I get statements like “with my credit they can have mine identity” or “my bank and credit card company watches over mine” is that there are 6 common types of ID theft not to mention data breeches from companies large or small.   The common types are: Character & Criminal, Employment, SSA & IRS related, Medical, Financial, Drivers License, and Minor Children & Elderly. 

Each one of these has their own devastating results in lost time, money and peace of mind, but the real kickers are the medical and children areas.  With medical, a person’s id is used to get medical treatment. While that is bad enough, it isn’t as bad as your medical records getting changed.  I can’t tell you how many stories I’ve heard on this. Just imagine, if you were killed in an accident and the insurance company wouldn’t pay out to your spouse because you had an illness like AIDS that you didn’t report, because you didn’t know this was on your record. And with children, it could take up to 18 years for them to find out that they are victims.  Only 17% of this crime is credit card and financial in nature.  Your information is a gold mine to these thieves.  Not only will identity hurt an individual and their families but their job performance as well because it takes time to clean up after becoming a victim.  The worst part is not finding out you are a victim but what you have to do afterwards. I urge people and maybe companies to get some sort of protection or learn the various ways they can protect themselves.  In looking at protection there are some great plans on the market. My advice would be to prepare yourself by purchasing a plan that offers the following;
•       Monitoring
•       Reimbursement
•       Fraud Alert Services
•       Restoration Service and a Legal Plan

I have found that identity theft can also lead to many legal issues so you need to consider these possible side effects: Criminal Charges, Arrests (imagine getting your door busted open at 2AM by the SWAT team because you committed a crime), Lawsuits, Garnishments, Civil Litigation's and even IRS Audits.  Remember one thing, with Identity Theft, YOU ARE GUILTY until proven innocent.



Richard Figley
Independent Associate
www.ID-TheftProtection.com 
www.richardfigley.com

10 percent of children’s Social Security numbers are being used by someone else

 

 Protecting the Innocent: The Basics of Child Identity Theft

Written by Peter Schoenrock on March 26, 2012 in Credit  |   No comments

In our cyber-connected world, we’re increasingly at risk of data breaches, hackers, phishing scams, and all manner of identity theft. While many adults have learned to keep their Social Security number protected and to not give out personal information over the internet or phone, a new victim of identity theft and fraud is on the rise—our children.
Children are at risk because they have a clean slate. They have no credit history or debts, and that makes them an attractive target to identity thieves and scam artists. People are looking to rebuild their life with a fresh start, and a child’s clean credit report may provide them with that new (albeit fraudulent) beginning.
According to a report on Child Identity Theft from the Carnegie Mellon CyLab, over 10 percent of children’s Social Security numbers are being used by someone else, and children are 51 times more likely to be victims of identity theft than adults.
Some perpetrators of child identity theft are friends and family members looking to get around their own bad credit ratings. According to the CyLab report, other primary causes of identity theft can be traced to illegal immigration (to obtain false ID for employment) and organized crime and financial fraud.
Criminals will search for Social Security numbers and run checks to see if the numbers have been used to obtain credit. When they find an unused number, they’ve hit the jackpot. Such numbers—and other personal information—can then be sold for hundreds or even thousands of dollars.
Even if you think your child’s Social Security card is protected in your safety deposit box, you might be surprised at the activities that can place his or her personal identification at risk.
According to Marietta Jelks, consumer action handbook manager for the Office of Citizen Services and Innovative Technologies, children are online more, and they don’t understand the consequences of certain actions. “They’re giving out private information like their phone number or address, and [they] don’t think about the negative implications. They’re not reading privacy statements,” says Jelks.
You trust your children’s doctor’s office and school with their health and safety, but you don’t know what such agencies are doing with your family’s personal information. If you submit a form when you see the doctor or sign your child up for an extracurricular activity, you don’t know who is seeing the information and how it’s kept or destroyed. Jelks also says that parents are placing their children at greater risk when they carry around children’s Social Security cards without keeping track of the materials.
What kind of personal information could put your child at risk for identity theft?

• Social Security number
• Address and phone number (present and prior)
• Student ID number (often easily traced back to a Social Security number)
• Email address
• Medical ID number
• Health insurance ID number
• Bank account numbers

As your children become teenagers and may have jobs, bank accounts, and email addresses, educate them on the importance of protecting their personal information. While your children are growing up and finding their identity, help them out and make sure to protect their credit and financial identity.

Richard Figley
Independent Associate
614.395.2313
www.800-DO-A-WILL.com
www.ID-TheftProtection.com

Learn the Signs of Scams

By ELISABETH LEAMY (@elisabethleamy), ABC NEWS Consumer Correspondent
I have some con artists to thank for today’s column. Yes, you heard that right. This week’s topic arrived by mail—in the form of a classic come-on. My husband received a $3,850 check in the mail. It looked awfully official, complete with “security features” and bank account numbers. I’m going to dissect if for you, to show all the tip-offs to a rip-off. Here’s a picture of the “check.”:

(Image Credit: Elisabeth Leamy)

Your heart DOES do a little pitter pat at first, eyeballing a substantial sum like that. However, the accompanying letter gives the ploy away. The crooks have managed to roll two oldies but baddies into one: the foreign lottery scam and the check overpayment scam.
Click here for the letter.
The letter announces “Cash Prize Notification” and goes on to say, “…you are one of the winners in the “CONSUMER PROMOTIONS SWEEPSTAKES DRAWING.” Pretty thrilling, right? But here’s the clue: “…this draw was held in the United Kingdom.” It’s actually illegal for Americans to participate long-distance in foreign lotteries. Therefore, if you’re ever told you have won one (especially one you never entered!), it’s a scam. Period.
There’s another clue, too. The letter informs the recipient that the prize winnings will be delivered by a courier company. The bad guys try to avoid sending their correspondence by U.S. Mail, because they don’t want to be subject to U.S. mail fraud laws. I suspect that if my husband had fallen for this plot, future correspondence from the crooks would have, indeed, arrived via a private courier.
In a sick sort of way, you have to admire the crooks’ handiwork. They even managed to use postage that looks like it’s from a foreign country. Wow! It came via the “Royal Mail!” Actually, it’s quite possible the letter WAS sent from another country, because often con artists prey upon Americans from beyond our borders, knowing it’s very hard for US authorities to prosecute them. I took a picture of the postmark too:

(Image Credit: Elisabeth Leamy)

So how were the thieves going to profit? Let’s go back to the letter. The “company” has sent my hubby a check for $3,850 and says that’s to cover the “Tax Clearance Fee.” But here’s the trick. The tax clearance amount is NOT “$3,850. It’s $1,950! The company has overpaid my husband! Why? The crooks want their victims to deposit the $3,850 check in their accounts and forward them $1,950 of their own money. By the time the victims find out that the $3,850 check is bogus, their OWN money is long gone.
That, my friends, is the latest example of the “Check Overpayment Scam.” It comes in many forms. The classic is that if you are selling something, like a used car, a stranger may send you a check for more than the asking price and ask you to forward them the difference, while they arrange to have the car transported to them. The crooks have a million excuses for why they’ve sent too much money and why you need to forward them the difference. Never, ever do it. If a stranger overpays you by check, it’s a scam. Period.



Richard Figley
Independent Associate
figleyr@legalshield.com
www.800-DO-A-WILL.com
www.ID-TheftProtection.com.

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