Identity theft among Americans 50 and older is rising, according to the U.S. Department of Justice’s Bureau of Justice Statistics. In 2010, more than 3.5 million households headed by people 50 and older experienced identity theft, according to bureau figures.

Identity thieves find seniors attractive targets for a number of reasons, according to the FBI, including for their financial stability.  Seniors are more likely to have savings, own a home and have good credit. Fortunately, taking precautions – including monitoring one’s identity and credit through products like ProtectMyID.com – can help seniors reduce their risk of identity theft.

Two types of identity theft that have targeted seniors in the past are phone scams and medical fraud.

The FBI advises seniors to be wary of telemarketers and phone solicitations, since money lost through a phone call is very difficult to get back. The bureau recommends taking precautions when doing business over the phone, including:

* Asking for written material before committing to any charitable request or special offer. If you receive written material, review it with someone you trust.

* Avoid dealing with companies you don’t know, and research unfamiliar companies through consumer agencies like the Better Business Bureau, state attorney general or National Fraud Information Center.

* Know who you’re talking to. Ask for the person’s full name, business title, phone number, physical address, mailing address and business license number. Verify the information before any transactions take place.

* Don’t pay in advance for services, and be wary of high-pressure tactics that require you to act immediately in order to receive a special price or offer.

Medical fraud is another area of particular risk for seniors, who tend to have more doctor visits, hospital trips and prescriptions, and since Medicare can be confusing and complicated.

It’s important to protect your identity by guarding Medicare and health insurance information, just as you would your bank account number or Social Security number. The FBI offers these tips for avoiding health insurance fraud:

* Never sign blank claim forms or give a medical provider blanket authorization to bill for services.

* Make sure you understand what your medical providers will charge and how much of it you will be expected to pay out of pocket. Review your coverage with your health insurance company so you understand what your financial responsibilities are.

* Don’t do business with anyone selling medical equipment door-to-door or over the phone, or who tell you that you can get services or equipment for free.

* Provide your insurance or Medicare information only to those who have given you a medical service.

* Keep accurate records of all your medical appointments and prescriptions.

Finally, if you’re having trouble keeping track of your medical information, ask for help from a trusted friend or family member. Navigating Medicare, health insurance and health care can be challenging. Getting assistance and staying on top of your medical information are key steps toward protecting your identity, and help minimize the risk of becoming a victim of identity theft.

One area of disaster planning too often minimized or overlooked is financial data. “Saving and protecting your financial information can take some time,” says Jessi Dolmage, spokesperson for TaxACT. “But that information can impact how quickly and extensively you recover from a natural disaster.”

Dolmage recommends starting with a room-by-room inventory of personal and business belongings. Document, photograph or video record belongings – especially those of higher value – for proof of value for insurance, tax and casualty loss purposes. Visit www.irs.gov for Internal Revenue Service (IRS) workbooks and Publication 584 for inventory resources.

Next, save electronic copies of inventory and other documents on an external drive, CD or secure website. Documents should include home closing statements, homeowner and other insurance records, tax returns and W-2s. Consider keeping copies in multiple locations.

The IRS often grants extended tax return filing and payment deadlines, as well as lesser or waived penalties, to individuals and businesses in federally declared disaster areas. You don’t typically need to contact the IRS for tax relief, as the agency automatically identifies the areas. However, you should call the IRS disaster hotline if you have property in the designated area but reside or have a business outside the designated area. If you move outside the declared area, be sure to notify the IRS of your new address.

Casualty losses related to your home or business, household items and vehicles not covered by insurance or other reimbursements may be deductible on your federal tax return. Depending on when the federally declared disaster happens, you may have the option of claiming related losses on the previous or current year’s return.

Casualty losses for federally declared disasters can be claimed as a miscellaneous deduction. If you claimed the standard deduction last year and your casualty loss plus other itemized deductions total more than the standard deduction, you may benefit more by amending last year’s return.

Amending last year’s return can mean faster cash for repairs, rebuilding and replacing personal property. However, depending on your income the year of the disaster, you may increase your tax savings by waiting to claim losses on the current year return.

To determine an item’s deductible amount, subtract any insurance reimbursement from the value of the item (accounting for normal wear and tear or progressive deterioration) and then subtract $100. After totaling all losses, reduce the amount by 10 percent of your adjusted gross income.

“As with all deductions,” Dolmage reminds, “be sure to keep detailed documentation and receipts for each casualty item you claim.”

More disaster preparation tips and resources can be found at www.irs.gov. For step-by-step guidance for claiming losses on current and previous year returns using TaxACT, visit taxact.com.

The Internet has made it possible and practical to expand your car shopping search virtually across the country. What’s more, shopping online offers unmatched convenience, selection and value – all without the pressure of making your decision on the spot in the dealership.

Buying a new car online, however, is a lot different than other online purchases you might make, such as a book, music or movie. Buying a used car online is even more complex, because there can be far more unknowns to deal with.

To help you in this, here are eight secrets to successful online used car shopping:

1. Find out about the vehicle’s history

When you buy a vehicle from online car shopping sites such as eBay Motors, Yahoo! Autos or AutoTrader.com, you probably won’t have the opportunity to actually see and drive the vehicle before you commit to the purchase. Used vehicles are like snowflakes – no two are exactly the same. A vehicle history report like AutoCheck, offered by Experian Automotive can help provide information critical to making a smart vehicle-buying decision. The report will let you know if a vehicle has ever had a reported accident, how many owners it’s had, if it’s been registered in a designated natural disaster area, what the odometer reading is and if the vehicle has ever been repossessed or stolen. Experian Automotive’s AutoCheck Score also enables you to measure how a vehicle stacks up against others of the same age and model class, which is helpful in evaluating any vehicle. Log on to www.autocheck.com to learn more.

2. Complete transactions through the purchase site

If, for example, you find a car online, be sure to start and finish your transaction through the website. Doing so will afford you all the protections and assurances offered by the site.

3. Know what you’re buying

In addition to reviewing a vehicle history report, ask for additional photos of details like the odometer reading, VIN and any scratches or blemishes if they are not already revealed in the listing. It’s also recommended to have the vehicle inspected by a trusted third party prior to purchase to check for any mechanical or safety issues.

4. Check out the seller

What kind of feedback does he or she have on the marketplace site? Read his or her ratings and comments.

5. Review the vehicle title

If it appears to have been altered in any way, you may want to reconsider your decision to buy.

6. Never send payments through Western Union, MoneyGram or other wire services

If you plan to pay in cash, do so only in person and obtain a receipt. When going to meet a seller, take someone with you and make sure someone else knows where you are and who you’re with.

7. Realize that if a deal looks too good to be true, it probably is

Common sense and patience can be two of your best buying tools.

8. Beware of fraud

If you encounter fraud during the car-shopping process, consider filing a complaint with the Internet Crime Complaint Center at www.ic3.gov.

Just like shopping for any other merchandise — from clothing to houses to vacation packages – you should take reasonable precautions to ensure you are dealing with a legitimate seller, and take advantage of the secure processes offered by trustworthy and reputable online marketplaces.

1. There are many variations of the fake check scam. It could start with someone offering to buy something you advertised, pay you to do work at home, give you an “advance” on a sweepstakes you’ve supposedly won, or pay the first installment on the millions that you’ll receive for agreeing to have money in a foreign country transferred to your bank account for safekeeping. Whatever the pitch, the person may sound quite believable.
2. Fake check scammers hunt for victims. They scan newspaper and online advertisements for people listing items for sale, and check postings on online job sites from people seeking employment. They place their own ads with phone numbers or email addresses for people to contact them. And they call or send emails or faxes to people randomly, knowing that some will take the bait.
3. They often claim to be in another country. The scammers say it’s too difficult and complicated to send you the money directly from their country, so they’ll arrange for someone in the U.S. to send you a check.
4. They tell you to wire money to them after you’ve deposited the check. If you’re selling something, they say they’ll pay you by having someone in the U.S. who owes them money send you a check. It will be for more than the sale price; you deposit the check, keep what you’re owed, and wire the rest to them. If it’s part of a work-at-home scheme, they may claim that you’ll be processing checks from their “clients.” You deposit the checks and then wire them the money minus your “pay.” Or they may send you a check for more than your pay “by mistake” and ask you to wire them the excess. In the sweepstakes and foreign money offer variations of the scam, they tell you to wire them money for taxes, customs, bonding, processing, legal fees, or other expenses that must be paid before you can get the rest of the money.
5. The checks are fake but they look real. In fact, they look so real that even bank tellers may be fooled. Some are phony cashiers checks, others look like they’re from legitimate business accounts. The companies whose names appear may be real, but someone has dummied up the checks without their knowledge.
6. You don’t have to wait long to use the money, but that doesn’t mean the check is good. Under federal law, banks have to make the funds you deposit available quickly – usually within one to five days, depending on the type of check. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. It can take weeks for the forgery to be discovered and the check to bounce. 
7. You are responsible for the checks you deposit. That’s because you’re in the best position to determine the risk – you’re the one dealing directly with the person who is arranging for the check to be sent to you. When a check bounces, the bank deducts the amount that was originally credited to your account. If there isn’t enough to cover it, the bank may be able to take money from other accounts you have at that institution, or sue you to recover the funds. In some cases, law enforcement authorities could bring charges against the victims because it may look like they were involved in the scam and knew the check was counterfeit.
8. There is no legitimate reason for someone who is giving you money to ask you to wire money back. If a stranger wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local bank or a bank that has a branch in your area.
9. Don’t deposit it – report it! Report fake check scams to NCL’s Fraud Center, at www.fraud.org. That information will be transmitted to the appropriate law enforcement agencies.           

 The very qualities that make some seniors feel safe – a tendency to not use credit much, operating on a cash basis and avoiding technology – make identity thieves view seniors as very appealing targets, credit experts warn.

“Anyone with a Social Security number needs to be aware of the risk of identity theft,” says Jennifer Leuer, general manager, ProtectMyID.com. “Seniors, however, should be especially vigilant about identity theft protection, because they are often a preferred target of identity thieves and scammers.”

While identity theft can happen to anyone at any age, seniors may be at greater risk for a number of reasons, including:

• Many states display social security numbers on Medicare cards. Even if your card is never lost or stolen, enterprising thieves may be able to snatch the number when you show your card for a legitimate purpose.
• Seniors often have more to steal than other people. They tend to carry higher cash reserves and home equity than other age groups.
• Seniors may be less technologically savvy, and may be more likely to respond to scams because they haven’t researched them online.
• Seniors may feel less need to closely monitor their credit reports and financial accounts because they tend to use credit less. Identity thieves know that it may be months – or even years – before senior victims check their credit reports and discover they’ve been defrauded.
• Seniors’ personally identifying information is more likely to be exposed to people through extended caregiver networks, nursing homes, doctor’s offices and other service organizations.
• Seniors are more likely to trust official-looking emails and open unsolicited communications and click on links that could lead to malware or phishing attacks.

Common forms of senior identity theft include check fraud, credit card fraud, phone or e-mail solicitations, social networking schemes and Social Security fraud. Fortunately, there are many ways seniors can protect themselves, or adult children can help protect their aging parents, from identity theft.

• Never carry your Social Security card with you. If your Medicare card has your Social Security number on it, make a photocopy of the card and black out everything but the last four digits of your number with a permanent marker. Carry the copy whenever you need to show the card.
• Carry only the checks you will need for a specific use on any day. Leave your checkbook at home in a secure location.
• Pick up checks at the bank to avoid having them stolen from your mailbox. Better yet, set up direct deposit with the Social Security Administration and any retirement accounts that you regularly draw on such as pensions or IRAs.
• Learn to pay bills online, if possible, or mail bills and other paperwork from a secure mailbox at the post office. Don’t mail bills or any documents with identifying information from your home mailbox. .
• Always lock up financial statements and any items, including computers, which contain personal information. Especially for seniors who live in assisted care facilities. There are too many people with access to rooms in these facilities to leave sensitive information out for anyone to see.
• Use an updated cross-cut or diamond-cut shredder to shred all personal and financial records before you throw them away. It’s a good idea to complete a thorough inventory of all old files – receipts, financial statements, taxes – shred the ones that are no longer needed and secure the ones that are.
• Consider using an identity monitoring product that gives you identity theft protection, like www.ProtectMyID.com. The product monitors your credit report on a daily basis and alerts you to activity on your credit accounts. And, with one phone call to a specially-trained fraud resolution agent, you can report all your cards lost or stolen and they’ll contact the credit card companies for you. And if you do become a victim of identity theft, you’ll have a designated fraud resolution agent by your side through the whole process of resolving the situation. You can learn more at www.ProtectMyID.com.
• Know who to call. You can opt out of credit card offers – which thieves may use to steal your identity – by calling (888) 567-8688. If you believe your Social Security number may have been compromised, call the Social Security Administration fraud line at (800) 269-0271.

Provided By: ARA

We’ve all heard of the problem, but few have recognized how theft of an employee’s identity can be devastating to an employer’s business. What are the potential costs to your business? They’re not obvious at first. You probably won’t write anybody a check directly, but consider the hidden costs of lost time, reduced productivity, lower morale and deteriorating quality.

The first thing you can do is learn more about identity theft. Here are some “myths:”

1. “My Credit Card Covers Me.”
Consumers think their credit cards cover an identity theft situation. Credit-card companies only cover their financial losses. The most a victim has to pay is $50, but the victim is still obligated to restore any damage to his/her name and/or credit rating.

2. “I Don’t Have a High Net Worth.”
The fact is that people with a high net worth do check their credit status more frequently because they make more purchases. No matter what your income level is or what a person’s net worth is, you can still become victimized.

3.”I Don’t Use the Internet.”
The reality is that if you have used the Internet just once, your information can be compromised. But that’s just one concern. We are all in a reactive posture because the information is out there-employer records, medical records, mortgage companies, insurance companies, financial institutions, credit-card companies, department stores, and the list goes on. Think about how many times you have given out your information over the past 10 years.

4. “The Credit Repositories Will Correct My Problem.”
The Credit Repositories are only responsible to correct the information that gets reported to them. It becomes the responsibility of the victim to ensure that his/her name and credit is corrected in an identity-theft incident.

Article provided to the La Quinta Chamber of Commerce – GEM Publication March 2006 page 14.

http://www.lqchamber.com/pdf/gem_mar06.pdf

Today’s well-trained insurance investigators know that roughly 10 percent of all claims are fraudulent, so they’re extremely vigilant. They’re also equipped with sophisticated software programs that send out red flags when claims look suspicious, and they know just what to search for next.

For example, the National Insurance Crime Bureau (NICB) can identify at least 80 indicators that a claim may be fraudulent, from the length of an insured’s policy coverage to the difficulty in contacting the policyholder to the car’s history of mechanical problems to the vehicle’s degree of customization and even its gas consumption.

Investigators from the NICB know that fraud concerning auto thefts generally falls into one of four types:

• Owner give-ups. This is when a vehicle is reported stolen but later found burned, submerged in a lake or even buried underground. The owner has arranged the car’s destruction to collect a claim settlement.
• 30-day specials. In this case, the car is reported stolen and hidden for 30 days, long enough for the insurance company to settle the claim. Later, the car is often found abandoned and in need of extensive repair.
• Export fraud. After getting a bank loan for a new vehicle, the owner buys an insurance policy as expected. Then, the vehicle mysteriously goes missing. In reality, it’s not missing; the owner has sold it for shipment overseas. The owner collects both the insurance payment and the illegal sales price.
• Phantom vehicles. In this scenario, a person creates a phony title or registration for a nonexistent vehicle. The vehicle is then reported stolen and the “owner” collects.

The company also notes that if policyholders are looking for ways to manage their bills, it’s wise for them to contact their insurer and talk to a counselor about beneficial payment plans and coverage options. It’s a better solution than facing fines, imprisonment and a criminal record for fraud.

 Provided by: NAPSI

The following are examples of possible Medicare fraud:

A health care provider bills Medicare for services you never got.

A supplier bills Medicare for equipment different than what they provided to you. Someone uses another person’s Medicare card to get medical care, supplies, or equipment.

Someone bills Medicare for home medical equipment after it has been returned.

A company offers a Medicare drug plan that hasn’t been approved by Medicare.

A company uses false information to mislead you into joining a Medicare plan.

If you believe a Medicare plan or provider has misled you, call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048. When you get health care services, you may want to save the receipts you get from providers. Use your receipts to check for mistakes on statements you get. These include the Medicare Summary Notice if you have Original Medicare, or similar statements that list the services you got or prescriptions you filled.

If you suspect billing fraud, here’s what you can do:

• Contact your health care provider to be sure the bill is correct.
• Call 1-800-MEDICARE
• Call the Inspector General’s hotline at 1-800-HHS-TIPS. (1-800-447-8477). TTY users should call 1-800-377-4950. You can also send an email to HHSTips@oig.hhs.gov.

Fighting Fraud Can Pay

You may get a reward of up to $1,000 if you meet all these conditions:

• You report suspected Medicare fraud
• The Inspector General’s Office reviews your suspicion
• The suspected fraud you report isn’t already being investigated
• Your report leads directly to the recovery of at least $100 of Medicare money

For more information, call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

Note: For your protection, your full Medicare number is no longer printed on your Medicare Summary Notice. The first 5 digits of your number are replaced with “Xs.”

How Medicare Protects You

Medicare works with other government agencies to protect Medicare from fraud and to protect you from identity theft. With help from honest health care providers, suppliers, law enforcement, and citizens like you, Medicare is improving its ability to prevent fraud and identity theft. Some dishonest health care providers have been removed from Medicare, and some have gone to jail. These actions are saving money for taxpayers and protecting Medicare for the future. Below and on the next page are other ways Medicare is working to protect you.

You Are Protected from Discrimination

Every company or agency that works with Medicare must obey the law. You can’t be treated differently because of your race, color, national origin, disability, age, religion, or sex. If you think that you haven’t been treated fairly for any of these reasons, call the Department of Health and Human Services, Office for Civil Rights for your state, or call toll-free 1-800-368-1019. TTY users should call 1-800-537-7697. You can also visit www.hhs.gov/ocr for more information.

The Medicare Beneficiary Ombudsman

An “ombudsman” is a person who reviews issues and helps to resolve them. The Medicare Beneficiary Ombudsman shares information with the Secretary of Health and Human Services, Congress, and other organizations about what works well and what doesn’t work well in Medicare. The Ombudsman helps improve the quality of the services and care you get from Medicare by reporting problems and making recommendations.

How Does the Medicare Beneficiary Ombudsman Help You?

The Ombudsman makes sure information is available to all people with Medicare about the following:

• Your Medicare coverage
• Information to help you make good health care decisions
• Your Medicare rights and protections
• How you can get issues resolved

Probably the oldest form of stealing one’s personal information is by snatching your purse, wallet or mail. Try putting your shoulder bag across your body, not draping it over one shoulder making it easy to snatch and run. Stolen mail could include bank or credit card statements, pre-approved credit cards or any financial information. You can put a hold on your mail while you are away and not let it pile up in your mailbox. Thieves have also been known to file a change
of address in order to have your mail diverted to another location. Dumpster diving is another method of stealing personal information where thieves rummage through your trash looking for any identifying numbers that can be used for their own purposes. Don’t put your trash out to be picked up until the morning of the scheduled pick-up. A special storage device can be used to “skim” or store your credit card information as an employee processes it. When handing your credit card to an employee, be sure it never leaves your site. Cash is always a good idea when going to a restaurant. Be particularly careful of emails claiming to be from financial institutions or companies wanting you to reveal your passwords or personal information. Call the institution to check on the validity of the email. Beware of any person, company, phone call or email wanting you to give them information under false pretenses. This is called “pretexting” and your information is sold to people who use your assets, get credit in your name or to investigate you. Hang up and Google the phone number or company. These practices are used every day and no one is immune to the crime of identity theft.

Why is this such a problem and how is this information used? There are a multitude of ways thieves can wreck havoc on your life and take years to correct. Credit cards can be opened in your name with delinquent accounts showing on your credit report. This could go on for months before you realize what is happening. How often do you check your credit reports? Setting up a wireless phone is a common practice, also.

A new loan could even be taken out in your name! If a thief decides to commit a crime using your identity, a warrant could be issued for your arrest. When government issued information is stolen, a thief can assume your identity and file a fraudulent tax return. No one wants to deal with the IRS! These are real problems that 9 million Americans face every year.

What can you do to thwart these actions? Being aware of how identity theft can happen is a good start. Simple measures like the ones listed above can go a long way in preventing identity theft. The law allows consumers to receive free annual credit reports from the three major credit bureaus. Routinely ask for these reports by logging on to www.annualcreditreport.com to request a free report. You can place a fraud alert on these reports free of charge. Also, consumers can opt out of unsolicited credit card offers by going to the website, www.optoutprescreen.com . There is a five year opt-out plan or a permanent opt-out plan. When you aren’t receiving any “pre-approved” credit card offers, they can’t be stolen. All mail with any personal information should be shredded before being put in the trash. Most identity theft is done by dumpster diving or trash digging. Thieves have even been known to piece bits of papers together to steal information. A cross-cut shredder is the best way to prevent this from happening. When buying a shredder, make sure it is a cross-cut shredder and shred everyday. For those who are too busy or simply don’t like doing this, a service can be called to your house to shred. This is especially a good idea when shredding years of information – like tax returns or financial statements – that would take many hours with a home shredder.

Article provided to the La Quinta Chamber of Commerce – GEM Publication January 2009 page 25.

http://www.lqchamber.com/pdf/gem-jan09.pdf