"Pretexting" is latest ID theft scam
Government Technology Magazine had an interesting article on the newest scam to steal personal identities called "pretexting." What's particularly disturbing is that this method if identity theft is not even technically a crime, at least until the information stolen is used to defraud someone. To address the problem in California, a legislative bill, SB1666, has been introduced by Senator Debra Bowen (D, Redondo Beach) to ban the practice, but it's a lot more widespread than most people know.
Simply put, pretexting is impersonating someone to gather confidential information about them. The most visible pretexting of late is used to obtain cell phone use records that are then posted on websites for sale to the public. It's frightening how easy it is to use one of these sites to get detailed records on someone else's cell phone calls, including what calls were made to whom, where and from what location. If the information was only used for pranks or by suspicious spouses, that would be one thing ... they are also used by defendants in domestic violence criminal cases to track down victims to do further harm.
Pretexting is not only used to mine cell phone records; it's also used to swipe bank account, credit card, insurance, medical and employment records that either become the basis for identity theft or the records are used directly for fraud. How is it done? All a rat has to know is enough information about you to call an information holder and fool them into thinking it's you.
Think this is small potatoes? This month, California Attorney General Bill Lockyer filed a $10 million lawsuit in San Diego against a company called Data Trace Inc. that used pretexting to fraudulently obtain cell phone records that were subsequently sold on the Web.
I had the pleasure of working with then-Assemblymember Bowen when I was a court manager, and it was refreshing to know a lawmaker with a working knowledge of technology. We still keep in touch, and I have written letters of support for some of her past legislative initiatives. She is largely responsible for a lot of the e-government laws that allow business transaction online that used to require original signatures and a trip to city hall.
All of us should be aware of the dangers of identity theft and take precautions to safeguard our privacy. Encourage your bank, cell phone company or insurance company to ask you for a secret question-and-answer to verify your identity. In the case of cell phone records, contact them and demand that your records not be released. Subscribe to Equifax, Experion, TransUnion or a credit reporting agency of your choice to monitor inquiries about your credit worthiness, opening/closing of your accounts and large fluctuations in account balances. It's worth the expense.
Pretexting wasn't the first and won't be the last scam that is used to separate you from your money. In this, as in many of life's perils, an ounce of prevention is worth a pound of cure.
Chris Crawford
www.justiceserved.com