Fraud Ring Broken Up in the Largest US Identity Theft Case So Far

Internet fraud and identity theft may be rife and getting more dangerous as time passes, but it is somewhat comforting to see major rings get bust up from time to time.

New York authorities have said that 111 people from five criminal groups in New York have been indicted in what is being claimed as the “largest identity theft case” in the history of the United States of America – the product of a two-year investigation dubbed “Operation Swiper”.

86 of these individuals have been detained while the remaining 25 are being hunted down. But the reach of these groups are not limited to America alone.

These groups would work with others based in Europe, Africa, East Asia and even the Middle East. Together they have “robbed” a total of $13 million dollars in the span of just 16 months.

The groups would use service employees like bank tellers and restaurant workers to “skim” data from credit cards and then pass that data on to criminal technicians. The technicians would use this data forge credit cards which is then passed on to “shoppers.” The shoppers would buy high-end computers and computer parts with the express intent of reselling them to criminal syndicates outside of the United States.

via www.creditnine.com

Free Credit Scores for Those Denied Financing to Start Today

Starting July 21, 2011, all lenders who deny potential borrowers or offer interest rates that are higher than the norm must show the borrower’s credit score to him or her.

This is due to an amendment in the Dodd-Frank Wall Street Reform and Consumer Protection Act, which in turn came about because of discrepancies between consumer credit reports and lender credit reports.

A study by the Consumer Financial Protection Bureau explains this in greater detail.

“When a consumer purchases a score from a (credit rating agency) it is likely that the credit score that the consumer receives will not be the same score as that purchased and used by a lender to whom the consumer applies for a loan.”

The study goes on to say that Fair Isaac Corporation (FICO) scores vary depending on the formulas used, while other credit rating agencies have their own formulas for releasing “educational” scores meant for consumers and “real” scores meant for lenders.

Credit reporting agencies have yet to make a comment regarding the differences in scores.

On the other hand, senior counsel at the American Bankers Association Nessa Feddis says that lenders are being forced to provide credit scores too many times, with one being given during mortgage applications and another should their application be denied.

“Proprietary scores are so complicated; people are not going to understand them. Do people really care?” Feddis adds.