A New Kind of Credit Fraud

Identity theft: How to protect your kids. Identity theft that targets children is rising. By Alissa Figueroa, Christian Science Monitor Correspondent

Identity theft has grown into a multibillion-dollar problem. And it’s not only adults who are targeted.

At least 7 percent of the reported cases of identity theft target children. The number could actually be much higher, since many families don’t discover theft until a child applies for credit.

And the problem is likely to get worse before it gets better, the Associated Press reports, as identity thieves steal children's dormant Social Security numbers and use them to create phony lines of credit and rack up debt, sometimes for years.

The scam, which has popped up only in the last year, is difficult to guard against, says Linda Foley, cofounder of the Identity Theft Resource Center (ITRC), an organization that offers counseling and resources to identity theft victims. The ITRC has seen a notable jump in the number of children identity-theft cases in the last year, reaching about 9 percent of its caseload this month.

“There’s no way to protect your child completely,” says Ms. Foley. That’s partly because these thieves are likely using sophisticated programs that mine for dormant numbers through school or doctor’s offices databases, which often require that children’s Social Security numbers be provided. And partly because tactics for selling the numbers are constantly evolving, making this kind of theft difficult to track.

Since credit issuers do not keep track of the age of Social Security number holders, they cannot alert families when a child's number is being used. That's something Foley's organization has been trying to change since 2005, and a protection she considers vital for preventing child identity theft on a large scale.

There is some advice that parents can follow, though, to reduce the risk of identity theft:

1. Be cautious with your child’s Social Security number. Always ask why an organization needs the number and when possible, do not give it out. Be careful about which individuals, even friends and family, have access to your child’s number. Many identity thieves know their victims. Destroy extra documents that list your child’s number.

2. Talk to your kids about identity theft. Teach children not to divulge their personal information on the telephone and online.

3. Do not check your child’s credit report unless you have reason to believe there’s a problem. A minor should not have a report unless someone has applied for credit using that child’s Social Security number. To order reports unnecessarily can establish a credit report, opening a door to thieves, according to the ITRC.

4. Watch for red flags. If you receive pre-approved credit card offers or calls from collection agencies, run a credit report on your child immediately to see if there has been fraud.

5. Contact an identity theft specialist if you suspect a problem. There are several resources for families concerned with issues of identity theft. Visit the ITRC’s website for facts and information, or call its hotline at (888) 400-5530. You can also find information on the Federal Trade Commission’s identity-theft-prevention website.

McAfee Family Internet Protection for Mac's

Anti-Virus for Your Mac:

Understanding that the majority of computer users are IBM type users, Apple’s Mac computers have seen an increase in viruses and malicious cyber “bad guy” crimes. McAfee Internet Security has released a pair of it protection products for the Mac: McAfee Internet Security and McAfee Family Protection.

The following is by Dan Moren, Macworld

McAfee Announces Internet Security, Family Protection

If you're just looking to keep your own surfing habits from getting you into trouble, McAfee Internet Security can protect you from dangerous Web sites and browser exploits as well as telling you if a particular online shopping site has been checked over by McAfee (unfortunately, McAfee's Site Advisor, which adds safety markings right inside your browser is only compatible with Firefox at the present time). It can also scan e-mail and IM attachments from Mail and iChat to make sure nobody tries to slip you a mickey while online, and can repair many files without damaging the contents.

In addition, a dedicated Secure Search tool allows you to make sure that phishing sites don't find their way into your results; a two-way firewall keeps an eye on all the traffic entering or leaving your computer as well as locking down outside access to protect from hackers; and all the while McAfee Internet Security can scan for both Windows and Mac malware.

McAfee Internet Security runs $80 and covers one Mac for one year-after that, you'll need to buy a new copy as there's currently no upgrade pricing available. That's all well and good for your own personal Web surfing, but if you're more concerned about what your kids might be getting up to, there's McAfee Family Protection (also available for the iPhone and iPod touch). Not only does it allow parents to filter searches by keyword and prevent access to Websites from 35 different categories of content, but reports provide parents an overview of all the Websites that their kids are visiting.

Alerts can be sent to parents via e-mail or text message if a child tries to access a site that's not appropriate for them. In addition, parents can specify time limits to manage their kids' Internet use and block the use of specific programs on the Mac. Parents can also remotely modify a child's profile if necessary.

McAfee Family Protection covers up to three Macs for a year for $40. As with Internet Security, you'll need to shell out for a new copy after that due to any lack of upgrade pricing at present.

Both products available now and require Mac OS X 10.5 or later. They also come with a 30-day money-back guarantee and 30 days of free support.

Home Security System - What to Look For

It is wise to consider a security system that will work for you. Try not to consider price when it comes to choosing a security system, but if you are cost conscience, then please question it, but most of all make sure that you own your alarm equipment, so that you can switch monitoring companies if you’re not happy with their service.

Most regular security companies will charge $300-$400 for what the “free” companies offer for no charge. After that, devices tend to be the same price, or slightly lower with the non-“free” companies. So for an extra $300-$400 upfront, you get a system that is a lot less vulnerable, is more reliable, lasts longer, is installed by the better technicians, and gives you the freedom to shop around for better service and/or a lower monitoring rate.

The following is from www.alarmsystemreviews.com

If you honestly think you’re going to get adequate security protection for “free”, you’re going to be disappointed. Let's set the record straight about the infamous "free home alarm system". When you’re offered a “free” system, it usually consists of the following:

An “all in one” wireless keypad, siren, control panel and dialer.

One wireless door or window contact, one wireless motion sensor.

A long term monitoring contract, that automatically renews (sometimes even up to five years).

Extra charges for additional contacts, motion sensors, etc.

Extra charges called “activation fees” or “police and fire registration fees”.

Especially sneaky: Some companies that use central monitoring stations that are out of your telephone area code will actually CHARGE you to use their 1-800 number, in order for your alarm to send its signal

So Why Is The System Wireless?

Most of these “free” alarm companies go with wireless because it takes virtually no skill to install. A lot of the programming can be done ahead of time, so the “technician” that installs the system can get the job done as quickly and easily as possible. Many of these employees have little to no skill, because their employers pay them as little as possible. Really talented technicians are paid well, because they are a surprisingly rare and valued commodity in the industry these days. These “free” alarm companies do not attract the best technicians.

What’s wrong with these “all in one” wireless units?

They’re extremely vulnerable. The best set up for your alarm is to have the keypad, control panel (the “brains” of the system) and siren installed in separate places. So for example if a thief rips the keypad off your wall, it doesn’t matter. The dialer that sends your alarm system’s signal to the monitoring station is located inside the control panel, which is most likely installed in your basement, and is not damaged. If you have an “all in one” system, not only is the keypad disabled, but so is the entire alarm system, including the siren!

No matter which company you go with, it is always best to have a hard wired alarm system. They are more reliable than wireless, last forever, and you don’t have to worry about batteries running out and compromising your security!

Here’s a scary fact about wireless alarm components: at one time, one of the bigger alarm equipment manufacturers produced wireless equipment that communicated using a 900MHZ signal. What’s wrong with that, you ask? The problem is/was that most cordless phones use the SAME frequency! These systems were vulnerable to interference (therefore false alarms) from not only the phones that belonged to the homeowner, but even the phones that belonged to neighbors! So now manufacturers are using different frequencies, such as 2.4 MHZ and 5.8 MHZ, to solve the problem. The only problem is, newer style cordless phones are now starting to use the same frequency! Will your wireless system be compromised by a cordless phone or any other wireless interference? The chances are slim, but not zero. All the more reason to go with a hard wired system, where there is NO chance of interference. Even better, hard wired devices generally cost less than their wireless counterparts.

They Cannot Be Monitored By Any Other Alarm Company.

It is important that you own your alarm equipment, so that you can switch monitoring companies if you’re not happy with their service, or want to shop around for a better monitoring rate. And there are dramatically different levels of service quality and monitoring cost between the various alarm companies! With a “free” system, it is almost certain that it is “locked out”. This means that no other alarm company can monitor it. These companies may also use software that can “remotely kill” your alarm system, rendering it useless in a matter of minutes.

They Give A False Sense Of Security.

Protecting your home with one motion sensor and one or two door contacts would not be even adequate protection for the average home owner. It will leave huge gaps in your security protection, allowing an intruder to easily enter your home, and stay a lot longer, before the alarm actually goes off.

The “Free” System Offer Gets Their Foot In The Door.

As explained above, you are definitely going to have to add more equipment to get to an acceptable level of security. Typical prices for a wireless device offered by any alarm company would be: $75-$95 for a door or window contact, $90-$130 for a wireless motion sensor, and about the same cost for a wireless smoke detector. If you decide to go with fire monitoring (highly recommended), or if you need a back up for your phone line using cell or radio, the (already inflated) monitoring charges will be much higher. The “free” offer is really a classic “bait and switch” tactic.