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SAN JUAN, Puerto Rico-An identity-theft ring that catered to illegal immigrants seeking to establish themselves in the U.S. stole the personal data of 7,000 public school children in Puerto Rico, officials said Tuesday. Members of the ring broke into about 50 schools across the U.S. island territory over the past two years to steal birth certificates and Social Security numbers to sell to the illegal immigrants, the FBI and other agencies announced at a news conference. The victims were largely unaware their information had been stolen-and likely would not have learned of the thefts until they became adults and tried to buy something on credit, said assistant U.S. Attorney Julia Diaz Rex. "A kid is going to have a perfect credit history," Diaz said. "They reach 18, 20 years of age. They go buy a car and their credit is damaged." The authorities did not disclose how they uncovered the ring but said seven people have been arrested and one more is being sought. At least some of them were illegal immigrants from the Dominican Republic. Investigators determined the birth certificates and Social Security numbers were sold as a package in a number of states including Texas, Alaska and California, for up to $250, authorities said. Two suspects are accused of possessing nearly 6,000 birth certificates and Social Security cards. One was accused of intending to sell 40 Social Security cards for nearly $3,000, while another was seeking the same amount for 12 cards. The suspects in custody were being held on charges that include aggravated identity theft and social security fraud and face up to 15 years in prison, said U.S. Attorney Rosa Emilia Rodriguez. One suspect had been previously arrested for the kidnapping of a Dominican man last year that led to the shooting of a police officer during an FBI raid, said Luis Fraticelli, special FBI agent in charge of Puerto Rico. It is unclear if other members of the ring are at large, and whether they received help from sch

The Nature of the Problem Identity theft has been referred to by some as the crime of the new millennium. It can be accomplished anonymously, easily, with a variety of means, and the impact upon the victim can be devastating. Identity theft is simply the theft of identity information such as a name, date of birth, Social Security number (SSN), or a credit card number. The mundane activities of a typical consumer during the course of a regular day may provide tremendous opportunities for an identity thief: purchasing gasoline, meals, clothes, or tickets to an athletic event; renting a car, a video, or home-improvement tools; purchasing gifts or trading stock on-line; receiving mail; or taking out the garbage or recycling. Any activity in which identity information is shared or made available to others creates an opportunity for identity theft. It is estimated that identity theft has become the fastest-growing financial crime in America and perhaps the fastest-growing crime of any kind in our society. Identity Theft: Is There Another You?: Joint hearing before the House Subcomms. on Telecommunications, Trade and Consumer Protection, and on Finance and Hazardous Materials, of the Comm. on Commerce, 106th Cong. 16 (1999) (testimony of Rep. John B. Shadegg). The illegal use of identity information has increased exponentially in recent years. In fiscal year 1999 alone, the Social Security Administration (SSA) Office of Inspector General (OIG) Fraud Hotline received approximately 62,000 allegations involving SSN misuse. The widespread use of SSNs as identifiers has reduced their security and increased the likelihood that they will be the object of identity theft. The expansion and popularity of the Internet to effect commercial transactions has increased the opportunities to commit crimes involving identity theft. The expansion and popularity of the Internet to post official information for the benefit of citizens and customers has also increased opportunities to obtain

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From a municipal network lockout to illegal access of Barack Obama's cell phone records, 2008 had no shortage of headlines about bad acts by company employees - both those currently employed and former workers. Here we look at five embarrassing breaches that brought publicity to companies they would probably prefer to forget. The incidents taught each company a lesson about security holes in their systems, and also shed light on just how vulnerable sensitive information continues to be to illegal and malicious access.

"A Little Rock doctor was reprimanded and fined $500 by the Arkansas State Medical Board on Thursday for illegally accessing Anne Pressly's medical records as she lay unconscious in intensive care at St. Vincent Infirmary Medical Center before she died. Dr. Jay Douglas Holland, who has a family-practice clinic in the Hillcrest neighborhood, was also ordered to pay $265 to cover the cost of the board's investigation into the matter. Pressly, 26, was a news anchor for KATV-TV, Channel 7, when she was found raped and badly beaten in her Hillcrest home the morning of Oct. 20, 2008. She spent five days in intensive care before succumbing to her injuries."

"Doctor rapped over peeking at TV anchor's files Little Rock, Ark., doctor Jay Douglas Holland was reprimanded and fined $500 by the Arkansas State Medical Board for illegally accessing Anne Pressly's medical records as she lay unconscious in the intensive-care unit at St. Vincent Infirmary Medical Center before she died."

"Got an e-mail list of customers or readers and want to know more about each - such as their full name, friends, gender, age, interests, location, job and education level? Facebook has just the free feature you're looking for, thanks to its recent privacy changes. The hack, first publicized by blogger Max Klein, repurposes a Facebook feature that lets people find their friends on Facebook by scanning through e-mail addresses in their contact list. But as Klein points out, a marketer could take a list of 1,000 e-mail addresses, either legally or illegally collected - and upload those through a dummy account - which then lets the user see all the profiles created using those addresses. Given Facebook's ubiquity and most people's reliance on a single e-mail address, the harvest could be quite rich. Using a simple scraping tool, a marketer could then turn a list of e-mail addresses into a rich, full-fledged set of marketing profiles, with names, pictures, ages, locations, interests, photos, wall posts, affiliations and names of your friends, depending on how users have their profiles set. Run a few algorithms on that data and you can start to make inferences about race, income, sexual orientation and interests. While that information isn't available for all users, Facebook changed its privacy settings in early December so that certain information can't be made private, including one's name, current city, profile picture, gender, networks and friend list (the latter can be somewhat hidden from public view). Anyone with your e-mail address can harvest that information, the company admits."

Probably not limited to FaceBook

MPs have today launched an investigation into the use of snooping technology by ISPs which allows them to profile customers for advertisers and throttle or block specific types of traffic. An inquiry by the All-Party Parliamentary Group on Communication will examine issues such as the emergence of Phorm's profiling system, and the restriction of bandwidth available to specific applications such as BitTorrent. Both activities are reliant on Deep Packet Inspection (DPI) technology. "Now the Internet is part of daily life, concerns are increasingly raised about a wide range of online privacy issues," the group said in a background statement. "Should there be changes to individual behaviour? Should companies be pressed to prioritise privacy issues? Or is there a need for specific regulations that go beyond mere 'data protection' and address privacy directly?" The inquiry will also consider the impact of DPI technology on ISPs' "mere conduit" protection from liability for illegal traffic such as child pornography and copyright-infringing filesharing.

The French parliament on Thursday voted down an Internet piracy law, which had largely been expected to pass. The "Creation and Internet" law, which won the preliminary approval of the parliament last week, would compel Internet service providers to take graduated actions against customers accused of illegally downloading copyrighted material. After warning a customer against such actions for a third time, an ISP could suspend the person's Internet access for up to a year. Because the bill was expected to pass, few members of parliament were present for the final vote on the bill, according to the Associated Press. Opponents of the legislation, led by the Socialist party, rejected the measure by a vote of 21 to 15. The legislation had the support of the ruling UMP party, to which President Nicolas Sarkozy belongs, as well as the support of the Recording Industry Association of America. Backers of the bill intend to re-introduce an amended version within the coming weeks, according to reports. The entertainment industry has suggested to the United States' Congress that it should consider adopting European methods of combating copyright infringement. The United States, members of the European Union, and other countries may also consider making ISPs liable for infringement through international treaties.

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After Google issued an official raspberry to South Korea - by sidestepping its "real name" law by simply disabling comments and uploads - the Korean government has taken to pounding the table and turning beet red. Korean reporter Koo Bonkwo sent me an email with his latest report on the situation. The Hankyoreh reports that the Korea Communications Commission is "in an uproar" over Google's actions. According to an unnamed official at KCC: The people higher up said that they could not just leave Google alone and told us to find something to punish them with, so the related team is researching possible illegalities. At a meeting of a National Assembly committee that deals with communciations, KCC chairman Choi See-joong, railed to members: They are speaking as though Korea is a backwards Internet nation that is intensifying its Internet censorship. Why are you just standing around doing nothing?

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Federal regulators slapped hundreds of small telecommunications providers for not abiding by new rules designed to protect consumer phone records, proposing more than $13 million in total fines. The Federal Communications Commission proposed $20,000 fines on more than 650 small phone, pager and wireless providers Tuesday, accusing them of not filing paperwork that certifies they have put protections in place to protect customer phone data. "I have long stressed the importance of protecting the sensitive information that telecommunications carriers collect about their customers," said Michael Copps, the FCC's interim chairman, in a statement. "The broad nature of this enforcement action hopefully will ensure substantial compliance with our [privacy] rules going forward as the Commission continues to make consumer privacy protection a top priority." In April 2007, the FCC tightened privacy requirements on phone companies in response to consumer complaints about data brokers selling phone records they had obtained illegally through "pretexting," or getting information under false circumstances. The agency required telecom companies to increase security of phone records, requiring customers to provide a password before receiving account information over the phone or online. Phone companies are required to notify customers when changes are made to their accounts or if their information has been improperly accessed. Companies are required to file annual certifications that they have complied with those requirements. The FCC said hundreds of small companies didn't provide the information in 2008, although it noted it was the first year the agency had required the paperwork. The agency warned that future noncompliance could face "more severe penalties."

Mary Kay Hoal tried everything she could to keep her daughter off of MySpace. She put password locks on the computer and blocked the site. Still, her daughter found ways to log on. Hoal's concerns stemmed from statistics that showed 29,000 registered sex offenders were on MySpace, one out of every five kids are sexually solicited online, and nine out of ten children are exposed to pornography online. When she looked for alternative safe sites for kids, she found none, so she decided to do something about it. Story continues below ↓advertisement | your ad here Click Here! The result is www.yoursphere.com, the only social networking site for kids and teens that's backed by the Federal Trade Commission through the site's Privacy Vaults approval. The site's Chief Technology officer worked at the California Department of Justice tracking anonymous online sex offenders, as well as the Megan's Law database. Moreover, it requires verified parental consent for a minor to join. Other features include: -- Requires verifiable parental consent to join -- Confirms the identity of the parent providing consent -- Confirms that the parent or guardian providing consent is not a registered sex offender -- Is exclusively for kids and teens through age 18. -- Exceeds COPPA (Children's Online Privacy Protection Act) and Federal Trade Commission (FTC) guidelines for protecting kids online through our approval by Privacy Vaults Inc. -- Whose policy is "no creepers allowed" -- lurkers are removed and banned. -- No fake profiles. (No one is anonymous on Yoursphere.com) "The bottom line is that we're the only place in the online world that that has taken extraordinary measures to help ensure the safety of its members and meets or exceeds standards set by the government," Hoal said. "Our opinion is that if it's a behavior that is illegal, immoral or unacceptable offline, then it's unacceptable online." About Mary Kay Hoal After researching the disturbing la

Monster.com is advising its users to change their passwords after data including e-mail addresses, names and phone numbers were stolen from its database. The break-in comes just as the swelling ranks of the unemployed are turning to sites like Monster.com to look for work. The company disclosed on its Web site that it recently learned its database had been illegally accessed. Monster.com user IDs and passwords were stolen, along with names, e-mail addresses, birth dates, gender, ethnicity, and in some cases, users' states of residence. The information does not include Social Security numbers, which Monster.com said it doesn't collect, or resumes. Monster.com posted the warning about the breach on Friday morning and does not plan to send e-mails to users about the issue, said Nikki Richardson, a Monster.com spokeswoman. The SANS Internet Storm Center also posted a note about the break-in on Friday. USAJobs.com, the U.S. government Web site for federal jobs, is hosted by Monster.com and was also subject to the data theft. USAJobs.com also posted a warning about the breach. Monster.com has been checking for misuse of the stolen information but hasn't yet found any, it said. It has made changes since discovering the break-in but won't discuss them because it doesn't discuss security procedures publicly and because it is still investigating the incident, Richardson said. She also would not disclose the volume of data stolen, but said the company decided it would be prudent to alert all of its users via its Web site.

As I'm sure you know, former NSA analyst Russell Tice revealed that the agency spied on journalists and ordinary Americans - not just communications between the U.S. and overseas. Speaking on the Keith Olbermann show on MSNBC, Tice said: "The National Security Agency had access to all Americans' communications," he said. "Faxes, phone calls and their computer communications. … They monitored all communications." He made a further appearance on Olbermann Thursday (view above), in which he said that the NSA combined these illegal wiretaps with credit card and financial data. ""This [information] could sit there for ten years and then potentially it marries up with something else and ten years from now they get put on a no-fly list and they, of course, won't have a clue why," Tice said. "This is garnered from algorithms that have been put together to try to just dream-up scenarios that might be information that is associated with how a terrorist could operate," Tice said. "And once that information gets to the NSA, and they start to put it through the filters there . . . and they start looking for word-recognition, if someone just talked about the daily news and mentioned something about the Middle East they could easily be brought to the forefront of having that little flag put by their name that says 'potential terrorist'." Why were they monitoring reporters? New York Times reporter James Risen told Olbermann he thought it was a plot "to have a chilling effect on potential whistleblowers in the government to make them realize that there's a Big Brother out there that will get them if they step out of line."

Yesterday, the U.S. Supreme court announced its refusal to hear appeals against the banning of the Child Online Protection Act (COPA), effectively killing the bill. The American Civil Liberties Union called it "a clear victory for free speech," having fought the bill for ten years claiming it infringed on a website's freedom of speech. I've always advocated that it is the responsibility of parents to monitor their children's online activity. There are a ton of Web filtering and parental control applications available, many for free such as Blue Coat's K9 Web Protection. Especially with the country in the shape it's in now, my personal opinion is that the government has more pressing issues to attend to than babysitting children online. COPA was first passed in 1998, and made it illegal to display any pornographic material on a Web site without an access code or proof of age message. However, state courts began challenging the bill immediately, claiming it was unconstitutional and violated the First Amendment. Instead, it was ruled that parental controls should be used by individual families to block unwanted content, rather than the government determining what can and cannot be seen by all. (COPA was killed, not COPPA - Children's Online Privacy Protection Act)

A former State Department worker has pleaded guilty to gaining illegal access to more than 50 confidential passport application files. The plea by the worker, Gerald Lueders, is the third in an investigation into improperly examination of private data on actors, musicians, politicians, athletes and other celebrities. Mr. Lueders pleaded guilty to a single count of unauthorized computer access.

In a decision that has privacy advocates and others scratching their heads, a federal judge has ruled that LifeLock has been breaking California law for years by placing fraud alerts on its customer's credit profiles. The decision is a blow to the burgeoning identify-theft protection industry, and means that companies that experience data breaches may no longer be able to offer victims free subscriptions to such services - a standard damage-control tactic in recent years. Consumers can still place fraud alerts by contacting one of the three U.S. credit reporting agencies directly. Bo Holland, founder and CEO of Debix, a competitor of LifeLock, called the ruling "dramatic and unexpected." "It causes a real shift in the industry," he told Threat Level. The pre-trial partial summary judgment comes in a lawsuit filed last year against LifeLock by Experian, one of the nation's three credit reporting bureaus. Experian claimed LifeLock is trying to "game the system" of fraud alerts to make a profit.

Why employers should actually perform background checks.

A former Texas lottery worker was arrested while training for a new job Tuesday - his fourth with the state - and charged with illegally "possessing" personal information on 140 lottery winners and employees, including their names and Social Security numbers. Joseph Mueggenborg was still working for the Lottery Commission in 2007 when he allegedly took the information, which was discovered last year on a state computer at the Comptroller of Public Accounts where he later was employed. He was fired and the information was turned over to criminal investigators. When arrested Tuesday, however, the computer analyst was training for yet another job, at the Texas Department of Licensing and Regulation. Travis County prosecutor Jason English said it was "concerning" that the man was still working for the state after being fired by the comptroller. Susan Stanford, a spokeswoman for the Texas Department of Licensing and Regulation, said the department was unaware Mueggenborg had been fired and was under investigation when he was hired as a systems analyst three weeks ago. He was receiving job-related training at the time of his arrest, she said. The department has secured Mueggenborg's computer and begun a forensic study.

LifeLock Inc., the identity-theft protection company that boasts 1.5 million customers, is embroiled in legal battles with critics who say its key service breaks the law and its advertising defrauds consumers. A federal judge has ruled that the Tempe-based company's practice of setting fraud alerts for consumers with the three main credit bureaus - a major part of its $10-a-month service - is illegal. LifeLock filed a motion challenging the decision. If the court sides with LifeLock's opponents, the decision could stunt the growth of one of the shining stars of Arizona's startup community, forcing the company to permanently alter its practices.

Consumers, who become victims of identity theft through access to public records, do not have a clue as to how they became a victim. They cannot know unless the fraudster who "legally accessed" the public information is caught and confesses that they used or sold the information for identity theft. Most often end users of stolen identities are caught, not the kingpins. Illegal immigrants who purchase identities on the street sometimes for hundreds of dollars do not know the source. * What can an identity thief do with a name and SSN? Here is a short list. * Make a fake Social Security Card (see image below) * Make a fake Medicare Card and get medical treatment and Medicare benefits * Use the fake Social Security Card to get a driver's license or passport * Get a job and government benefits. * Get credit and open new financial accounts * Get housing, utilities and phone service * Get insurance * Thieves use fake ID to elude law enforcement by pretending they are you.

Buying and renting tools used by cybercriminals to conduct attacks and steal credentials is becoming much easier for the average person. "For Rent" signs hang on botnets, automated hacking toolkits are sold at bargain prices, and the data reaped by the criminal activity is sold and traded in online forums on a daily basis. Researchers at networking giant Cisco Systems Inc. are warning of the increasingly sophisticated cybercriminal underground economy and how it could be attractive to those having trouble finding work or facing layoffs in a troubled global economy. Meanwhile, cybercriminals are borrowing some of the best strategies from legitimate companies and forming partnerships with one another to help make their illegal activities more lucrative, according to Cisco.