Identity theft and IT security threats are predicted to increase during 2011, according to Dmitri Alperovitch, Vice President of Threat Research for McAfee Labs. The rise in identity theft and IT security breaches is due to the increased use of technology and applications in the online environment. These findings will likely contribute to the rise in consumer use of identity theft protection services.

Some of the threat predictions that were recently mentioned include:

Mobile Apps

The increased use of mobile devices both for personal use and use in the workplace has influenced predictions that these devices will be targeted by hackers for identity theft and IT security breaches mostly due to the present weaknesses in the programming of mobile apps. Since mobile apps are a fairly new commodity they frequently contain vulnerabilities in the coding that hackers can exploit for use with a botnet, theft of confidential information and malware attacks.

Mobile Devices

The rise of the mobile workplace means an increased use of mobile devices by company employees. This opens up a new security concern for companies and businesses with regard to IT security threats, theft of critical company data, and personal identity theft.

Signed Malware That Appears Legitimate

Another prediction states, the programmers of malware will become more sophisticated and be capable of creating malicious software that imitates legitimate files on PCs and mobile devices. This will make it easier for cyber criminals to create fake keys from stolen ones and access critical data for the purpose of identity theft and theft of crucial data from companies and government agencies.

Botnets

In the past and still in the present for that matter, botnets have been created by organized criminals for the purpose of data and identity theft among other criminal acts. The criminals target specific computers on a network which are then turned into “zombie” computers that take commands from the botnet creator or “bot herder.” Company PCs as well as personal PCs are taken over to perform criminal acts without the user’s knowledge. Predictions for 2011 point to the fact that botnets will become more sophisticated and engage in advanced gathering of data through social networks.

Social Media

The increased use of social media as a tool for communication will replace email as the chief executor of malicious software and the main avenue for identity theft. Predictions also show that services that help you locate the mobile device users will contribute to the problem, as well as social media tools such as shortened URL services and other social media applications.

These are a few of the threats that you should be on the lookout for with regard to identity theft and IT security in 2011. Additionally, if you are an iPad or iPhone user you should be on guard for malicious codes which have not been a problem in the past with Apple, however the popularity of Apple mobile devices has significantly changed this climate.

Have a Facebook account? Then you’ve probably heard of Farmville, Mafia Wars, Zoo World, and other online games, whether you play them or hate them. If you haven’t, your kids have probably heard of them. These applications have tens of thousands of online fans.

Tried to play these games recently? Upon logging in, you’ve probably spotted something a little bit different. Many of these games now require you to provide your email address in order to keep playing. Blogger Deb Manzella has recently been drawing attention to this shady behavior, and for good reason.

Farmville and Zoo World aren’t the only Facebook applications requiring users to provide personal details before playing. Today, almost anything you install from Facebook will ask for permission to draw details from your profile and your friends list. Though many of these games tell users that this information is required in order for the application to work correctly, this is not always the case.

In addition, Facebook also has the ability to sync with the address book linked to your email address to suggest people for you to friend. Blogger Manzella said that thanks to this feature of Facebook, the site suggested that she “friend” her plumber and the paralegal working for her divorce lawyer. Though this may seem innocuous, such links provide important clues for identity thieves.

When taken together, all of these ways for Facebook and the games offered through the site to collect your personal information present a real danger. Not only that, but users themselves post personal details to their own Facebook pages. The site has become a huge database containing the personal information of millions of members worldwide.

If identity thieves can find away to get to this information, you can bet that they will do so. By using applications like Farmville, your personal information becomes widely shared. If you want to protect this information from identity thieves, the best thin to do is avoid signing up for these online games. No matter how fun they look, it is not worth the risk.

Avoiding these applications isn’t enough to protect your information when it comes with Facebook. Also be aware of how much information you’re sharing and who you “friend” on Facebook. Avoid connecting with those who have a professional relationship to you, even if you are also friends. If you do decide to cast your social net wider, remove personal information such as your address, date of birth, and email address, from your profile. Set your privacy settings so that those who aren’t your friends cannot access personal information about you. Otherwise, identity thieves may use the information you post – from your place of employment to your plans for Friday night – against you.

Consider protecting yourself with a service like Lifelock. Read a detailed lifelock review here.

Criminals View Seniors As Very Appealing Targets

If you don’t shop online and never use your credit card, you don’t have to worry about identity theft, right? This is a common belief among many seniors but they couldn’t be more wrong.

Credit experts warn that the very reasons that make seniors feel at low risk for identity theft – a tendency to not use credit often, shunning technology, and often using cash – make identity thieves view seniors as a very appealing group.

Jennifer Leuer, the general manager at ProtectMyID.com says:

“Anyone with a Social Security number needs to be aware of the risk of identity theft. 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:

1. Medicare Cards

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 by hacking into your health care provider’s records. In 2009 alone, hospitals suffered millions of records lost to data breaches.

2. Less Tech Savvy

Seniors may be less technologically savvy, and may be more likely to respond to scams because they haven’t researched them online.

3. Credit Report

Because seniors feel less at risk for identity theft, they don’t closely monitor their credit reports and financial accounts. Last week, identity thieves stole over 9.5 million from consumers by micro-charging accounts. (Read more) Amazingly, less than 5% of consumers detected the scam.

4. Seniors Have More To Steal

Seniors often have more to steal than people of other demographics. They tend to carry higher cash reserves and home equity than other age groups.

5. Seniors Are More Exposed

Seniors’ personally identifying information may be exposed to more people through extended caregiver networks, nursing homes, doctor’s offices and other service organizations.

6. Scams Target Seniors

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.

7. Seniors Do Things The Old Way….

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.

Consider An Identity Monitoring Service

Consider using an identity monitoring product that gives you identity theft protection, like ProtectMyID.com from Experian. 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 read our detailed ProtectMyID review for more information.

Recently, the New York Times covered a story from CBS News that discussed the possibility of identity theft from copiers. It is interesting to note this news report because most people are not aware that using a copy machine can pose a risk to their identity.

There are certain types of copiers that operate with a hard drive just like your PC. These types of copiers are mostly high end copiers that contain hard drives which store information for an indefinite period of time. If you use a copier at work or in a public place to copy sensitive information it can potentially end up on the hard drive of the copy machine.

Now that the news report has created awareness of identity theft through copy machines, consumers can protect themselves by asking the public venue that provides copy services what types of copy machines they use and if they contain a hard drive. You can also ask your employer the same types of questions in addition to inquiring about their policy for copier use.

Although the news reported that there have been no known cases of identity theft by a copier, this is likely to change since the issue has recently been made public. Government regulations may be in the near future however currently there are no policies in place. Meanwhile, consumers can protect themselves against identity theft by using their own copier that is not equipped with a hard drive and avoiding public copy services.

Consider using an identity protection service like Lifelock, Identity Guard or Trusted ID for complete protection. You can compare identity protection services or read our detailed reviews.

• Read our Lifelock review
• Read our Trusted ID review
• Read our Identity Guard review

Best Identity Theft Protection For Seniors?

Senior citizens looking for identity theft protection have different requirements than say a young couple in their thirties raising a family. It’s a question I often get asked myself as an individual approaching retirement age.

First, seniors who are on fixed income may not need wage-loss protection or care about some of the more tech-oriented gizmos like IDVault or Mobile Lockbox, features that Identity Guard offers. Second, seniors have to be weary since as a demographic they’re constantly targeted by fraudsters and scam artists. Face it, we grew up in a more trusting time and the world around us has become increasingly cynical and far more dangerous.

Most seniors I talk to want affordable identity theft protection that will cover a spouse without paying for any of the features designed for a younger market. Also, seniors should look for a service with excellent customer service. The last thing any senior citizen wants to hear are words like “forum” or “chat online”. Should you become a victim of identity theft, you’ll want a resolution expert assisting you through the recovery process.

No service can completely guarantee protection but almost all services can drastically reduce your exposure to identity theft and will guarantee complete recovery if you do become a victim while under their protection.

So What’s Best For Seniors?

• Read our detailed TrustedID review

After looking at all the available plans, TrustedID’s individual or family plan is the one I recommend for seniors who fall into this category.

Family Pricing

TrustedID will cover an entire household for $13.46/month and that means it doesn’t matter if you have just a spouse or your kids have moved back in. (In this economy, not an uncommon situation.) TrustedID will cover the entire household. Lifelock on the other hand, will charge you a new subscription per adult.

Credit Freezes

TrustedID goes beyond fraud alerts and is the only service to offer credit freezes on all three of the credit bureaus. An AARP article on identity theft recommends placing credit freezes. For more information, read our article on the differences between fraud alerts and credit freezes.

Medical Benefits Protection

An increasing form of identity theft fraud that seniors are especially vulnerable to is medical benefit fraud. TrustedID will review your medical benefit statements to ensure that you and your family are the only ones being treated with your medical benefits.

TrustedID Fraud Scanning

While TrustedID isn’t a credit monitoring service like Identity Guard or ProtectMyID, it does offer sophisticated scanning services that will scan the black market internet sites where identity thieves buy and sell information. TrustedID will scan for your credit card numbers, social security numbers, bank account numbers, name and addresses. If they find that any of your information has been compromised, you’ll be alerted immediately.

24 On-Call Protection Specialists

Sometimes, you just need to speak to a live person. TrustedID has On-Call Protection Specialists that will assist you if you think anybody is trying to steal your identity.

TrustedID is a highly recommended service for identity theft protection and especially for seniors, it’s the protection service that gives you everything you need at a price that’s affordable.

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“Plastics will be the biggest thing since radio…” said Sam Wainwirght to George Bailey in the 1946 Christmas classic movie, It’s a Wonderful Life. Sam Wainwright went on to make a fortune in plastics selling airplane canopies, so much so he was able to offer his old friend George an advance of $25,000 at the end of the movie.

For those of you wondering that’s almost $300,000 in today’s dollars.

While Sam Wainwright wasn’t referring to credit cards, his statements sounds especially relevant today. Most American households own at least one credit card and one debit card and credit cards are the most popular method of spending money. If you’re like most people, you pull out your credit card to pay for purchases without thinking to hard about the potential consequences or how to protect yourself.

Credit Card Fraud: How Does It Happen?

Bold Faced Theft

One of the biggest drawbacks with credit cards are they can literally fall into wrong hands, whether by loss or theft. For example in May 2008, USA Today reported that authorities had arrested Jocelyn Kirsch and Edward K. Anderton for financing their exorbitant lifestlye using the credit cards and bank account numbers they had stolen from family members, friends, coworkers, and neighbors.

Card Skimming Technology

Unfortunately not all credit card theft is as simple as a stolen purse or wallet. Portable card reading devices can mean anybody who scans your card can potentially make a copy of your card without you knowing. In January 2008 a Wendy’s fast food employee made the news when she was charged with stealing credit card numbers from customers of the drive through chain where she worked. After swiping the customer’s cards through the store device she would swipe it again on her personal credit card reading device, which she kept in her pocket. When she got home, she would hook up her reader to her computer to go online shopping.

Identity Thieves Are Using Technology

In Los Angeles, authorities arrested a trio of men for allegedly inserting scanning devices into 12 Arco gas stations. The devices were equipped with Bluetooth technology which allowed the criminals to upload customer card information along with PIN codes simply by driving by the gas station. Police confiscated $40,000 in cash. bluetooth-equipped skimming devices, hundreds of counterfeit credit cards, cell phones, computers, and luxury vehicles including a new Porsche and a Ferrari.

How Do You Protect Yourself?

• Monitor your credit card and bank statements.

This is critical-going over your statements is sometimes the only way to find our your identity has been stolen. Keep a calendar and set reminders when you expect your statements to arrive, and immediately follow up if you don’t receive them. Reconcile your receipts and report discrepancies a soon as you find them.

Consider going paperless. Most financial institutions offer secure email delivery for statements and notices. This eliminates the risk of your mail being intercepted before it gets to you as well as preventing potential identity thieves from finding it in your trash. Make sure you’re comfortable with using your email and email security practices before selecting this option.
• Don’t put outgoing bill payments in an accessible mailbox.

This used to be a common practice not to long ago but that was a different time. Today, identity thieves will see your envelope sticking out of your mailbox and retrieve it themselves. It’s safest to mail bills inside a post office.

• Use a shredder for old receipts, bank cards, and statements

Never leave receipts lying around and also remember to shred old cards and bank records – seven years is usually long enough.

• Carry only as many credit cards as you regularly need.

There’s no need to carry your entire inventory of credit cards with you at all times. keep cards you don’t regularly need in a safe place. This will simplify statement verification as well as make it easier for you to recover form identity theft if it does happen.

Do I Need Identity Theft Protection?

Unfortunately, you can implement every precaution and preventive measure here and still be a victim of identity theft. The truth of the matter is much of your information is already out there beyond your control.

How many credit applications have you filled out? How many copies have been made? Who’s seen your mortgage, student, or auto loan application? Having an identity protection service watch your back can significantly reduce your likelihood of becoming a victim as well as assist you in the recovery if it does happen.

Identity protection services vary widely in features and price. Take the time to educate yourself on how they work and what service is right for you. You can view an identity theft comparison here or read reviews of leading services like Lifelock, TrustedID, and IdentityGuard here as well.

Most importantly, stay on top of your credit report. You can get a free credit annually at AnnualCreditReport.com but in my opinion, reviewing your credit report once a year simply isn’t enough. Some of the paid services will monitor your credit report in real time and send you notices via phone, email or text if they notice anything suspicious. Lifelock Command Center will also review public databases monthly like sex offender registry reports and court records.

Try TrustedID FREE For 30 Days

The downside to all this “connectivity” is that it opens the door for online identity theft. Any online communication, whether it’s posting on Facebook, email, instant messaging, or simply surfing the web, increases your risk. There are numerous online threats waiting to steal or con you out of your personal information. Taking a few simple precautions can drastically reduce the chances online identity thieves can access your private information. Today we’ll begin a series on “How To Secure Your Online Presence”.

You can improve your online security by:

• Installing the right software to protect your computer.
• Avoiding software that can harm your computer
• Protecting your network
• Using strong passwords
• Practicing safe email habits
• Shopping online with care
• Familiarizing yourself with known scams

We’ll go into each of these categories as we begin our series but probably the greatest protection is the eye of experience. A majority of the online fraud occurs due to simple consumer negligence and ignorance. If you’re going to have an online presence: online banking, social networking, online gaming, you must be security conscious. Don’t leave sensitive information where everybody can see it.

Online identity thieves use technical knowledge, an understanding of online commerce, internet security, and combine them with age old scams to trick online users. They may not go through your mail or break into your own like traditional identity thieves but the goal is the same-to steal your personal information for their own amusement and profit.

Online identity theft is not only being perpetrated by individual scammers, but also by large rings, many of which make money by selling your sensitive information on underground websites. One of the most notorious was Shadowcrew.com, an online marketplace with over 4,000 members. Before the Secret Service brought the site down and arrested many of its members, the site had trafficked in over 1.5 million stolen credit card numbers and stole over $4 million dollars.

Today’s virtual identity thief could be the shy geek next door or a highly skilled criminal mastermind. Chances are, you’ll never find out. But these high tech criminals have one thing in common with their traditional brothers, they like to target easy marks. If you understand how they work and how to protect yourself, you can safely use the technologies they target without having your identity stolen.

Your mail can contain sensitive personal information

Effectively securing your mail can significantly reduce your exposure to identity fraud. Protecting your mail involves three simple practices:

• Physically securing your incomming and outgoing mail
• Limiting and destroying junk mail
• Monitoring mail to ensure sensitive mail arrives

1. Physically Securing Your Mail

The first step in protecting your mail is to prevent any unauthorized access to them. This can be done in a variety of ways:

Using a post office box or other secure mailbox: Most mailboxes are unsecured and even locked ones can be broken into. The most secure mailboxes are slots in your door or a P.O. box. By using a post office box, you in a way eliminate the “middle man” in your mail’s journey from one postal center to another and it always remains safe in federal custody until you pick it up.

Suspend mail delivery during vacations:If you’re planning a trip, let the post office know to hold your mail so it doesn’t pile out of your box. Not only is this dangerous for identity theft but it’s also a clear signal to thieves nobody’s home.

Sensitive mail should be mailed at the post office: Whenever possible, drop mail containing bills,l checks, or applications at the post office or a well trafficked mailbox. A raised red flag on your mail box notifies identity thieves, not just your mailman.

Send check orders directly to your bank:It’s extremely dangerous to have a box of blank checks sitting in a mailbox unattended. Have them arranged to be delivered to your local branch for pick up. Your bank should be able to arrange this without any problem.

2. Limit and Destroy Junk Mail

Junk mail is more than a nuisance. Identity thieves can use it to apply for lines of credit and purchase goods in your name. To reduce the limit of junk mail you receive:

• Out out of preapproved offers by calling 1-888-567-8688
• Sign up for the Direct Marketing Association’s “Do-Not-Mail” list. To register, simply send your name, address, and signature to:
  
  Mail Preference Service
  Direct Marketing Association
  PO Box 643
  Carmel, NY 10512

If you continue to receive any junk mail containing credit card offers or other information identity theives could steal, destroy it with a cross-cut shredder.

Monitor Your Mail Schedule

Sensitive pieces of mail usually arrive the same time every month so if something does not arrive on schedule, make certain the mail hasn’t been stolen. If a monthly bill or statement does not arrive on time, follow up immediately with the appropriate institution.

Another highly piece of sensitive information are expired credit cards. Creditors will usually send out new cards well in advance of their expiration dates. Be aware of your card expiration dates and if a new card has not arrived within a month of expiration, this may be sign your new card has been compromised.

Securing your mail is the first step towards any comprehensive solution to protecting your identity but it’s also important to know that despite these precautions, identity thieves can still access your information. Order a free copy of your credit report form the 3 major credit bureaus and review whats on the credit file. Make certain the names, addresses, and information on them is complete.

Under the Fair Credit Act, you are allowed one free report a year from each of the three major bureaus but checking your credit file once a year is like checking the lock on your house once a year. We highly recommend a credit monitoring service with an insurance policy for complete protection. There are many types of protection services and with wildly varying ideas about protection. We review the top companies and for more information, You can read our Identity Guard review, Lifelock review, TrustedId Review or compare identity theft protection services here.