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WASHINGTON (AP)
Bank account search: $249.00. Available around the country.
Takes 10-18 business days.
Ads like this on the Internet are proliferating, experts say, despite a
10-month-old federal law prohibiting use of deceptive techniques to get
people's personal financial data from banks.
Such techniques, notably "pretext calling," in which people
misrepresent themselves to obtain the private data of others from banks and
other financial institutions, are flourishing, congressional testimony showed
Wednesday. Pretext callers often pose as law enforcement agents, social
workers, potential employers and other figures of authority.
How-to books teach foolproof methods of wangling financial information out of
bank employees, discussion groups trading techniques abound on the Internet
and there are courses in pretext methods.
"The techniques are becoming more complex and refined," Robert
Douglas, a privacy consultant based in Alexandria, Va., testified at a
hearing of the House Banking Committee.
Identity theft is one of the fastest growing crimes in the United States,
ensnaring some 500,000 people a year, the government estimates. The cruder
methods, such as digging through people's trash for credit card receipts or
bank statements, have been largely supplanted by more technologically savvy
techniques. In the most advanced cases, hackers have been able to penetrate
big corporations' databases and download credit card numbers and other data.
Some perpetrators use telemarketing scams to trick consumers into revealing
personal data. An array of authentic-looking fake IDs, including Social
Security cards, birth certificates and driver's licenses, are on sale online.
While most victims of identity theft eventually recoup their lost money, the
damage to their credit records and invasion of privacy can be terrible.
Compounding the problem, according to law enforcement officials, is the
growing presence in this country of organized crime groups, notably Russian
and Nigerian, that engage in large-scale identity theft schemes affecting
Americans.
The result: hundreds of thousands of victims like Shon Boulden, of Hillsboro,
Ore., who had his credit ruined after people using 12 different names used
his Social Security number to open numerous bank and retail accounts and to
get car loans.
Although the credit bureaus, such as TransUnion and Experian, have put fraud
alerts on his account, "they haven't done much to help me get rid of my
bad credit," Boulden, 22, told the hearing.
In addition, he said, he recently learned that new people have been opening
accounts using his Social Security number, even after the fraud alerts were
in place.
"I fear every day that I won't be able to get this fixed and that I'll
have bad credit for my whole life. As a young person, I need credit to get
started in life," Boulden entreated.
It is easier than ever to get someone's name, address, date of birth, Social
Security number, mother's maiden name and telephone number, often by buying
it on the Web, experts say. Across the country, an army of information
brokers and private investigators are said to be stealing personal financial
data and selling it.
"Americans' financial privacy - indeed their very financial identities -
are at risk as never before," said Rep. Jim Leach, R- Iowa, the Banking
Committee chairman.
"For many Americans, account information may be almost as valuable as
their ... (money in the account), and the impact of knowing that our private
financial records are so readily available is frightening. Law enforcement
agencies need to take these crimes more seriously," he said.
In an earlier exercise, members of Leach's staff phoned several information
brokers and private investigators around the country to see how many would
sell them bank account information and under what circumstances. In less than
three hours, the first 10 companies they reached were all willing to sell
detailed account data likely only to be obtained through deceptive means. Not
a single one turned them down.
Sweeping legislation enacted last November that allows banks, securities
firms and insurance companies to enter one another's businesses includes a
provision making it a federal crime, punishable by up to five years in
prison, for anyone to misrepresent himself to obtain someone's private
financial data.
The provision was originally put forward by Leach. Now two lawmakers want to
go further, proposing a bill that would tighten rules for credit bureaus and
give the Federal Trade Commission authority to impose fines.
Prospects for the measure by Reps. Darlene Hooley, D-Ore., and Steve
LaTourette, R-Ohio, are unclear, however, with only a few weeks remaining in
this congressional session before lawmakers adjourn for the year.
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On the Net:
House Banking Committee: http://www.house.gov/banking
The bill is H.R.4311.
Keywords: Financial
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