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Consumers are not the only ones concerned about and taking steps to protect against identity theft. Many states are taking important steps to protect their residents. A few of these steps include stiffer penalties, imposing sanctions and fines on careless companies and providing their residents with many tools necessary to correct the errors that identity theft has caused.

Many identity theft savvy consumers are: installing anti-spy ware, using shredders, reducing the use of their social security number, using services to stop junk mail and risky credit card applications. But what about the actions of others? After all the care you take to protect yourself, what happens when others, such as companies or service providers do not?

Businesses that have access to your information aren’t always looking for you. It is far too easy to simply throw important personal information away, than to take the sometimes expensive steps needed to have it professionally disposed of. But many states are looking out for your best interest, especially when it comes to identity theft. Texas has a growing reputation for being proactive in preventing identity theft and tough on punishing businesses who don’t protect the consumer. Texas law requires vendors to take specific precautions before disposing of personal documents that may include customers’ bank accounts, driver’s license and Social Security numbers. In the state of Texas, you can bet companies will be thinking twice before dumping your credit application in a public trash can.

Examples of Poor Business Practices:

Public trash cans outside a local Radio Shack were filled with thousands of customer’s sensitive personal and credit information after the dumping of these documents. Credit applications containing names, social security numbers, debit and credit card numbers as well as addresses and telephone numbers and receipts were located, exposing many Radio Shack Consumers to identity theft or credit card fraud.

After investigations by the State of Texas Attorney General’s office, a settlement was reached. Under the settlement with Radio-Shack, the retailer is required to enhance security procedures and implement employee training. Radio Shack also agreed to unannounced compliance audits in all Texas stores bi-annually.

Select Medical was investigated after a report that over 4,000 documents were found in the garbage behind their Select Physical Therapy Location. These un-shredded records included bank account numbers, drug testing results, insurance verification sheets as well as sensitive social and vocational therapy questionnaires. Select Medical will also be required to amend security procedures and implement training for Texas employees about the newly established state laws governing customer record disposal. The insurance forms are of particular concern in light of the growing trend of medical identity theft, in which an individuals’ insurance information is used to obtain medical services or to commit insurance fraud.

Under the settlement agreement, the state of Texas will receive nearly $1.5 million in fines, including attorney’s fees. As outlined in the Identity Theft and Protection Act, the remainder will be used for the investigation and prosecution of future cases of identity theft.

Stiff penalties are just one of the steps taken to protect and prevent identity theft. The Texas Attorney General’s Office has created a checklist for victims of identity theft to take steps and track their progress during recovery. The identity theft check list includes information and forms on: closing all fraudulent accounts made in your name, contacting the 3 major credit reporting agencies and requesting a fraud alert or security freeze for new accounts, reporting identity theft crimes for local law enforcement and obtaining a copy of the police report, and reporting identity theft crimes to Federal Trade Commission and completing and ID Theft Affidavit. Victims are also advised to file a consumer complaint with the Office of the Attorney General in the event that they are harassed by credit collectors as a result of identity theft. Additionally The Texas Attorney General’s Office also offers an Identity Theft Victim’s Kit.

According to 2006 state statistics on identity theft, Texas ranks fourth in the area of identity theft. States are ranked according to victims per 100,000 people, and it should be noted that Texas also has a higher population than many other states. The top ten states with the Most Victims of Identity Theft Per Capita are: Arizona, Nevada, California, Texas, Florida, Colorado, Georgia, New York, Washington, and New Mexico.

Just because your state did not make the top ten list, doesn’t mean you are safe. No matter where you live, this crime is a real problem. Information, advocacy, laws and prosecutions in any state will ultimately help everyone but in the mean time consumers must educate themselves and arm themselves with protection against identity theft as well as the remedies available to them. With the continued efforts of law enforcement, state and federal agencies, stiffer fines and penalties as well as requiring a higher standard of care from businesses, progress is being made on many levels in protecting consumers.

Lisa Carey is a contributing author for Identity Theft Secrets : prevention and protection. You can get tips on Identity theft protection, software, and monitoring your credit as well as learn more about the secrets used by identity thieves at the Identity Theft Secrets blog

October 15, 2008, is the deadline to file your 2007 IRS tax return if you applied for and received an extension last April. It is also the deadline to claim your economic stimulus check.

If you are a retiree or disabled veteran and you normally don’t file a tax return, you must file a tax return to qualify for your $300 check (you also receive $300 for each qualifying child you have).

If you are a retiree or disabled vet, you must have at least $3,000 in qualifying income from earned income, nontaxable combat pay or certain benefits from Social Security, Veterans Affairs and Railroad Retirement.

Qualifying income from Social Security includes retirement, disability and/or survivor benefits. Qualifying income from Veterans Affairs includes disability compensation and/or pension and/or survivor benefits. Dependents or those eligible to be dependents on someone else’s tax return are not eligible for an economic stimulus payment.

To qualify for your payment you also must have a valid Social Security Number unless your spouse is a member of the military.
The IRS can’t give out any economic stimulus payments after Dec. 31, 2008. However, if you are eligible for an economic stimulus payment, you can claim a credit in 2009 by filing a 2008 income tax return.

If you have filed your 2007 tax return but who have not received your economic stimulus payment, you can check on the status of your check by going to the IRS.gov Web site and clicking on the link entitled: “Where Is My Economic Stimulus Payment.”

Remember, you must file your tax return by October 15. And in this economy, couldn’t you use an extra few hundred dollars?

Discover if you qualify to have your taxes e-filed for FREE. Visit http://efile.123easytaxfiling.com

It is a safe, secure and easy way to file many of your Federal tax forms, as well as many state returns.

Income tax frauds are generally categorized into two types — personal income tax fraud and business income tax fraud. In the case of business income tax frauds, the owner of the company may use his corporate credit card for expenses related to his family; like paying for family vacations; and then reporting these expenses as valid business related expenses and deducting the same from taxable income.

In case of personal income tax frauds a person, although living in a place in the US does not pay the city’s resident personal income tax as he/she may own a summer house at a different place that is used as his/hers tax filing address. Also there are some cases where someone has filed a tax return by using the social security number of some other individual. Such serious fraudulent cases have to be reported to the IRS with the help of the guidelines given below:

To report an individual or a company not complying with the tax laws, you can download Form 3949-A from the IRS website. The form has to be filled and sent by US mail service to the IRS. On the other hand, you can also report an income tax fraud by writing a letter to the IRS. However, when you write a letter, you need to be very precise with the information you furnish. You would be required to give the following information in the letter:

• Name and address of the person committing income tax fraud

• The social security number of the person

• A brief description of the fraudulent activity or violation

• An estimate of the amount involved in the tax fraud

• Your name, address and telephone number.

This information is usually kept confidential and is not revealed at any time whatsoever.

About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality finance tips like:
Best Way To Invest In Sector Funds, What Is Taxable Interest? and Federal Credit Union & Financial Services

Is Life Lock the cure for the identity theft protection epidemic? Is Life Lock the answer to providing you with peace of mind when it comes to preventing identity theft?

We are going to look at the benefits, features, pros and cons of Life Lock. We are going to review Life Lock and see if it is the solution to identity theft prevention or if you can do the same thing on your own as Life Lock does.

What can Life Lock do for you that you can’t do for yourself? Well, pretty much nothing.

The real question is, do you want to hassle with going through all the steps and processes yourself. Some people thrive on research, seeking out every detail and are just plain DIYers. Others just have so much going on in their lives that they don’t want the additional burden, they just want the security of knowing things are taken care of for them and they are protected, and that is where companies such as Life Lock come into play.

So let’s look at what Life Lock does and how you can do the same thing yourself.

Life Lock – Fraud Alert

First is the fraud alert. Life Lock will place a fraud alert on your credit profile at all three credit bureaus: Equifax, Experian and Transunion. A fraud alert will put your credit profile in lock down mode. No one will be able to open new accounts in your name without your being notified. Any potential credit grantors will be notified that they must verify your identification before extending credit in your name in case someone is using your identity without your knowledge.

DIY – Fraud Alert

Can you put a fraud alert on your credit profile yourself? Sure you can, you must notify all three credit bureaus every three months to put a fraud alert on your credit profile. Fraud alerts come in three flavors:

1. You can put a three month fraud alert if you suspect identity theft

2. A one year fraud alert can be obtained if you are an active military consumer

3. A seven year fraud alert will require you to show proof that your identity has been stolen by submitting a copy of a valid identity theft report to the credit bureaus that you have filed with a Federal, State or local law enforcement agency.

Equifax: 1-800-525-6285 P.O. Box 740241, Atlanta, GA 30374-0241

Experian:
1-888-EXPERIAN (397-3742)
P.O. Box 9532,
Allen, TX 75013

TransUnion:
1-800-680-7289
Fraud Victim Assistance Division, P.O. Box 6790,
Fullerton, CA 92834-6790

Life Lock – Opt Out

The next thing Life Lock will do is request that your name be removed from junk mail lists and pre-approved credit offers. This is one of the main methods identity thieves will use to get a hold of your identity.

DIY – Opt Out

Can you request your name be removed from junk lists and pre-approved credit offers? Once again, yes you can, but you may have to make the request multiple times before you are completely removed. As I am sure you know, advertising is a very lucrative business and companies don’t give up easily on potential prospects.

Listed below is information on the organizations you can contact to have your name removed from various mailing lists.

Credit Bureaus

Keep in mind that the credit bureaus may have different requirements for opting out. You can write a letter to request your personal information not be shared or used for promotional purposes.

The national credit bureaus offer a toll-free number that enables consumers to opt-out of all pre-approved credit offers with just one phone call. You can call 1-888-5-OPTOUT (1-888-567-8688) or you can go to the OptOutScreen website.

Department of Motor Vehicles

State departments of motor vehicles (DMVs) keep a lot of personal information about you. (Take a look at your driver’s license, for example.) The Drivers Protection Act offers you privacy rights concerning your information maintained by DMVs. The law sets limits on how your information can be used. A DMV agency can give out your personal information for things such as law enforcement, driver safety, insurance underwriting, etc.

Recently, an amendment was made to the law which now prohibits DMV from giving out your personal information for other types of uses, including for direct marketing, unless you give them permission.

You should contact the DMV in your state for more specific information.

Direct Marketers

The Direct Marketing Association’s (DMA) Mail Preference Service allows you to opt out of receiving unsolicited commercial mail from various national companies for five years. When you sign up for this service (a $1 fee), your name will be put in a ‘delete’ file and made available to direct-mail marketers. This will only help you for mailings from organizations who use the DMA’s Mail Preference Service. Your registration won’t stop mailings from organizations that don’t use this service. To register with DMA’s Mail Preference Service, go to the DMAChoice org website.

The FTC also publishes a free brochure on Shopping by Phone or Mail. For a complete list of publications, write for Best Sellers, Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or call toll-free, 1-877-FTC-HELP (382-4357), TDD (202) 326-2502.

Life Lock – Free Credit Reports

Life Lock will also order your credit report from all three credit bureaus which are sent directly to you.

DIY – Free Credit Reports

You can also do this yourself. Each credit bureau allows you to obtain one free credit report each year. That will give you your credit report every four months, each time from a different credit bureau. Keep in mind that each credit bureau does not always keep the same account information on file.

Getting your credit report every four months is all well and good to get an overview of your credit score and where you stand. But it is not going to be very helpful in the event your identity is stolen, unless you happen to get your credit report just as an identity thief is going on a shopping spree in your name.

Do it yourselfer’s can go to annualcreditreport.com to get your free credit report.

Life Lock – Replacing Lost Information

Life Lock has a feature they call WalletLock™. In the event your wallet is stolen you call Life Lock anytime and they will match you up with a WalletLock specialist who will help you contact your credit card, bank or document issuing company, cancel your affected accounts and complete any paperwork and steps necessary to replace your lost documents, such as your credit/debit cards, driver’s license, social security card, insurance cards, checkbook, even travelers checks.

DIY – Replacing Lost Information

Can you do all this yourself? You should know by now that the answer is yes. As long as you remember all the cards you have to replace. And you will also have to hunt down all the contact information for each organization you hold cards with.

I don’t know about you, but this feature alone is worth the price to me. Just thinking of going through all that hassle makes my head spin and gives me a migraine. Yes I admit it, I am lazy and I don’t want to go through all that hassle by myself! I want someone holding my hand, walking me through it and making sure I don’t forget anything cause I can guarantee you I won’t be thinking with a clear head.

But that is just me, maybe you have plenty of time on your hands, aren’t bothered by the hassle, are great at research and getting a hold of the right people (and not an answering system), and having all your information stolen just wouldn’t bother you enough to get your head spinning. So if you are a ‘do it yourselfer’ then have at it.

Life Lock – Identity Theft Monitoring Service

Life Lock offers two new identity theft monitoring services that helps you locate any threats to your identity.

eRecon™ spiders websites known for criminal activity associated with illegal selling or trading of your personal information (this includes your Social Security number, credit card number, driver’s license and email address, if you provided it) and alerts you if, or when they find something.

TrueAddress™ keeps tabs on nationwide address databases and Life Lock will notify you if any new address information associated with your name is detected in this database. This alert will help you if a criminal has changed your address to send your new mail to a different location where they can steal your mail easier and get your financial information.

DIY – Identity Theft Monitoring Service

Can you monitor your identity yourself? Maybe, possibly, if you are extremely web savvy, have the right software and tools…but highly unlikely.

Life Lock – $1,000,000 Guarantee

And the last feature offered by Life Lock is the famous Life Lock million dollar guarantee. Life Lock claims if your Identity is ever stolen while you are a member of the Life Lock identity theft protection service they will do whatever it takes to reclaim your good name. Life Lock states they will hire the best lawyers on your behalf. They will get you investigators, accountants, case managers, whatever else you might need to recover your identity. Life Lock also states they will give you back any money you have lost due to the theft of your identity.

Life Lock claims they do whatever it takes and will spend up to $1,000,000 to help you recover your good name.

DIY – $1,000,000 Guarantee

Can you offer yourself a million dollar guarantee? Ah, well, only you know the answer to that one.

DIY vs Life Lock Review Conclusion

Most of the features offered by Life Lock can be had by any energetic DIYer (except possibly the $1,000,000 Guarantee). It just depends on whether you want to deal with all the hassle yourself or not. If your a typical DIYer and don’t mind the hassle, then by all means, have at it.

If you are like many people, don’t have the extra time to deal with the hassle and would prefer some guidance along the way, then you might want to think about using the Life Lock Identity Theft Protection Service, or even another similar service.

We hope this Life Lock Review has been helpful to you. If you are still trying to decide on whether to use an identity theft protection service or if your just not sure which monitoring service to choose, you might want to take a look at our comparison page to get the pros and cons to some of the top identity theft protection service providers that are out there.

Brenda Mohney is founder of Identity Theft Security. Identity Theft Security is a site dedicated to providing identity theft tips tools and resources to help consumers find quality information about identity theft protection.

Identity Theft Security offers reviews of identity theft insurance services, comparisons of identity theft plans and we offer identity theft videos, brochures and free software.

If the term identity theft brings to mind images of ‘bad guys’ rummaging through your garbage looking for an account number or spying eyes ready to memorize your PIN numbers and passwords – think again. It could be as simple as someone signing into a forum using your account or as serious as having a mortgage taken out in your name.

Not protecting your sensitive information makes you a prime target for identity theft. The consequences could be an unnoticed $20 charge on your credit card or credit agencies knocking on your door.

What Is Identity Theft?

Identity theft or identity fraud is any inappropriate use of your personal and financial information. The misuse of your Social Security number, credit card, bank accounts, passwords or any data specific to you is a crime.

Um…So What Is It Really?

Identity theft is hours wasted trying clear your name of something YOU didn’t do or say.

What’s in a name?

You decide to take out a mortgage, a college loan or buy a car and you realize that your credit is not up to par. It’s not only your credit that’s affected, but the name associated with every other account under that name.

Is It Really the End of the World?

In order for you to clear your name as a victim, you’ll need to file a police report, put a freeze on your accounts and fill out a fraud complaint with the FTC…And wait…And wait some more…

Victims spend an average of 330 hours recovering from identity theft. Wouldn’t you rather be doing something else with that time?

Still Not Convinced?

Take a look at these stats. In 2005:

• 2.2 million – car accidents
• 2.2 million – burglaries
• 1.2 million – stolen cars

All these incidents added up don’t even amount to half of the amount of victims of identity theft in that same year

• 15 million – victims of identity theft.

Some statistics go as far as to claim that every 79 seconds a thief steals someone’s identity, opens accounts in the victim’s name and goes on a buying spree.

An Identity Is Only As Strong As Its Weakest Link

The very basics of security starts with you – never reuse a password!

Nowadays everything can be done online – working from home, shopping, paying a bill. In order to protect your identity, you need to protect it online. Start with your weakest link: passwords.

Makeshift or do-it-yourself solutions are not enough. You need to use an application designed specifically for the task, online password managers. This online vault should be using fundamental online security like anti-phishing, AES encryption and host-proof hosting.

And Remember

Reusing the same password across accounts is like using a hypodermic needle – all you need is for it to be compromised once and everything else associated to it is at risk.

Born and raised in New York City, Louise Vinciguerra has a Bachelor’s degree from SUNY Binghamton. She is currently living and working in Rome, Italy where she writes and handles public relations for Italian start up PassPack – leading online password manager.

A number of clients have recently reported to their tax preparation services that they have been receiving calls from someone posing as a representative from the Social Security Administration. The caller began the conversation by talking about the pending Congressional leader’s announcement where a deal with the White House on the economic stimulus package would give most tax filers refunds of $600 to $1,200, and more if they have children. The caller went on to solicit from consumers their Social Security number stating confirmation of their number would ensure they received their rebate checks within the next 6 – 7 months.

The Social Security Administration is not making a conscience effort to confirm consumer identification numbers. You need to be aware that identity thief’s are however and they use a number of tactics to steal your identity. Spoofing is generally used by thieves as a means to convince individuals to provide personal or financial information that enables the perpetrators to commit credit card/bank fraud or other forms of identity theft. An attempt to fraudulently acquire sensitive financial or personal information, such as credit card information or a Social Security number, by impersonating a business representative or trustworthy person is also known as a Phishing attempt and is usually initiated through e-mail, phone calls or Instant Messaging.

Thieves do not just collect Social Security Numbers. They are also after your telephone taxes date of birth and your bank and credit card account numbers. This information is a personal asset as well and people who illegally solicit this information are also known as pretexters.

It is yet another name for identity theft and Pretexting is (like the other practices mentioned) a means of getting your personal information under false pretenses.

Pretexters sell your information to people who may use it to get credit in your name, steal your assets, or to investigate or sue you. Pretexting is against the law. Whether it is by means of Spoofing, Phishing or Pretexting the tactics are all designed to get your personal information.

According the Federal Trade Commission For example, a pretexter may call, claim he’s from a survey firm, and ask you a few questions. When the pretexter (let’s just call it a thief) has the information they want, it is used to call your financial institution.

The thief pretends to be you or someone with authorized access to your account. They might claim that they have tax their checkbook and need information about their account. In this way, the criminal may be able to obtain personal information about you such as your SSN, bank and credit card account numbers, information in your credit report, and the existence and size of your savings and investment portfolios.

Keep in mind that some information about you may be a matter of public record, such as whether you own a home, pay your real estate taxes, or have ever filed for bankruptcy.

It is not pretexting for another person to collect this kind of information. Identity thieves don’t just use the schemes we’ve just talked about to get your personal information they also procure your identity by:

* Stealing wallets, purses and your mail (bank and credit card statements, pre-approved credit offers, new checks and tax information);

* Stealing personal information you provide to an unsecured site on the Internet, from business or personnel records at work and personal information in your home;

* Rummaging through your trash, the trash of businesses and public trash dumps for personal data;

* Buying personal information from “inside” sources. For example, an identity thief may pay an employee for information about you that appears on an application for goods, services or credit.

Even though the laws are on your side, it’s wise to take an active role in protecting your information. The Federal Trade Commission recommends the following actions;

1. Don’t give out personal information on the phone, through the mail or over the Internet unless you’ve initiated the contact or know who you’re dealing with. Pretexters may pose as representatives of survey firms, banks, Internet service providers and even government agencies to get you to reveal your SSN, mother’s maiden name, financial account numbers and other identifying information. Legitimate organizations with which you do business have the information they need and will not ask you for it.

2. Be informed. Ask your financial institutions for their policies about sharing your information. Ask them specifically about their policies to prevent pretexting.

3. Pay attention to your statement cycles. Follow up with your financial institutions if your statements don’t arrive on time.

4. Review your statements carefully and promptly. Report any discrepancies to your institution immediately.

5. Alert family members to the dangers of pretexting. Explain that only you, or someone you authorize, should provide personal information to others.

6. Keep items with personal information in a safe place. Tear or shred your charge receipts, copies of credit applications, insurance forms, bank checks and other financial statements that you’re discarding, expired charge cards and credit offers you get in the mail.

7. Add passwords to your credit card, bank and phone accounts. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.

8. Be mindful about where you leave personal information in your home, especially if you have roommates or are having work done in your home by others.

9. Find out who has access to your personal information at work and verify that the records are kept in a secure location. Checking your credit report annually can help you catch mistakes and fraud before they wreak havoc on your personal finances.

Order a copy of your credit report from the three tax mistakes consumer reporting companies every year. To order your free annual report from one or all the nationwide consumer reporting companies, call toll-free 1-877-322-8228, or complete the Annual Credit Report Request Form avail at their Website annualcreditreport.com and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

If you do not have the time or expertise to put measures in place to protect you and your family’s identity consider visiting a credit protection service that can put the appropriate measures in place to preserve your good name, credit and assets.

Ronald Hudkins is a published Internet author with a very high regard for consumer awareness. Despite over 2o years in law enforcement and working many jobs requiring a security clearance he once fell victim to credit theft as a result of a disgruntled employee selling information from personnel records. To find out how he supplements and protects his identity visit and review the program he uses at http://www.registryfixing.com./LifeLock.html

What is tax mistakes definition of identity theft? As defined by the Federal Trade Commission, “Identity theft occurs when someone uses your personal information without your permission to commit fraud or other crimes. While you can’t entirely control whether you will become a victim, there are steps you can take to minimize your risk.”

Identity theft is a growing problem in the country according to police, the federal trade commission, and credit reporting agencies. Despite your best efforts to protect your personal information, it can still occur. Shredding personal information such as documents that contain your name, address, social security numbers, account numbers is highly advised. When you mail bills, they should be dropped off at the post office.

Despite my best efforts, this now has hit home with me. Someone used my name and title to secure a loan for a home. tax called the local police department to report this incident and they closed the case because I did not know who had created this bogus letter used to secure the tax mistakes I attempted to find out who had done this with both the mortgage broker and the lender and neither one would help.

Tax preparers can sell their client list to third parties with consent from the client. This is a 30-year-old regulation that is under revision by the IRS which determines how tax preparers can seek consent to use or disclose information. National Taxpayer Advocate Nina Olson believes that disclosure of tax related information is not strong enough and preparers can determine what constitutes disclosure.

The American Institute of Public Accountancy (AICPA) recently sent out a letter to over 330,000 members notifying them of a lost hard drive that contained personal information
(i.e. name, address, and social security numbers) of its members. This is the organization who dictates how Certified Public Accountants must perform. They have given Certified Public Accountants a year of free credit monitoring and tried to assure members that less than one percent are affected by identity theft. If you do the math, that computes to approximately 3,300 professionals that are now at risk. I resent that fact that they still carry my information after over five years. I have not been a member for greater than 5 years and personal information was not safeguarded adequately. They have changed their procedure of requiring social security numbers in the data base they maintain, but this is like shutting the gate after the horse gets out.

There is a growing problem in this country and our ethics are slipping. Individuals who are professionals are committing crimes against their clients and the general public. No one will speak out against their own profession for fear of retaliation by their peers. This is in any profession and it is time to stop. Medical information which contains personal information is being outsourced to foreign countries that do not follow our stricter guidelines. Accounting and tax information is also outsourced to foreign countries as well as legal documents through attorneys. There is a cost savings to these professionals, but who pays the ultimate price – the client does.

There is a saying that money is the root of all evil. Money itself is not evil. Money is power. People are control hungry and misuse power. They are in control and love the feel of power and use it to hurt others. This also has happened to me in a business relationship. You can see it in the headlines daily. When are we going to fight back? When are we going to do something about this situation?