Identity Theft Hurts

FRESNO CAREER-CRIMINAL CONVICTED ON 16 COUNTS OF CONSPIRACY, CREDIT CARD FRAUD, AND IDENTITY THEFT

John Barksdale - 26 October 2008

On March 6, 2008, US Attorney McGregor Scott announced the conviction of KEITH DAVID GOODWIN, 30, of Fresno, for conspiracy, nine counts of credit card fraud, four counts of identity theft, and four counts of aggravated identity theft stemming from identity theft, purchasing goods using fraudulently obtained credit cards and selling the goods to local contractors.

While I congratulate US Attorney Scott for his conviction of this identity thief, and the cooperative work of the FBI and the Fresno Police investigators, as a victim of financial identity theft, I take issue with the phrase “fraudulently obtained credit cards”.  I believe Mr Goodwin was able to “purchase goods” because he used “FRAUDULENTLY AUTHORIZED CREDIT CARDS.”

Let’s see who extended credit to Mr. Goodwin and which businesses enabled the financial identity thief to commit his fraud…

“…the evidence introduced at trial showed that the defendant stole the identities of individuals who worked at mortgage companies and a realty office. He then took those identities and filed online for credit cards with Home Depot, Sam’s Club, Zales and JC Penny’s in various locations, primarily in the Fresno area. Using these fraudulently acquired credit card account numbers, the defendant then went to these businesses and purchased goods for thousands of dollars.”

Actually, Home Depot, Sam’s Club, Zales and JC Penny’s extended credit without validating the identities of the identity theft victims. The credit bureaus did not notify, flag or question the requests for credit of the financial identity theft victims. These companies and their sloppy credit verification standards should in no way be the victims’ burden.

Neither the credit bureaus or Home Depot, Sam’s Club, Zales and JC Penny’s should have been permitted to enter any derogatory record into the victims’ credit records.

Home Depot, Sam’s Club, Zales and JC Penny’s should have the burden of PROVING that the victims’ requested the credit online. These companies should have to produce web-logs, IP addresses and printed credit form requests. Why should the victims have to submit notarized affidavits, copies of their drivers licenses and copies of utility bills to clean their soiled credit records?

With all due respect to Home Depot, Sam’s Club, Zales and JC Penny’s, too bad for you.

If your credit departments and credit bureau partners are stupid enough to extend credit to an identity thief, you deserve the financial loss.

If the reader feels pity for the businesses; please don’t. The businesses sold those delinquent fraudulent accounts to collection agencies and those same businesses will write-off the losses as a tax-deduction. The credit bureaus will profit from the inquiries into the victims’ credit records and offer lukewarm support to clean up the victims’ credit reports.

But who will get to clean up this mess? The financial identity theft victims.

The press release stated Mr Goodwin worked at some mortgage companies and a realty office. I’d bet a buck that he accessed the employee’s employment records and copied the victims’ drivers license numbers and Social Security numbers.

With names, social security numbers, credit bureas and businesses only too happy to extend credit and a system that blames the victim; Mr. Goodwin was buying jewelry, building supplies and who know what else.

If the credit bureaus allowed customers to add email alert notifications or cellphone alerts to their credit files whenever someone accessed their credit records before authorizing or extending credit, financial identity theft would diminish significantly.

Equifax, TransUnion and Experian will do that for you - FOR A FEE.

MAKES MY BLOOD BOIL.