LifeLock Blog

Because I write so much about identity theft I read a lot about it, too. And what I’m seeing lately is a lot of medical identity theft.

The story I saw today came from the Baltimore Sun: Christel Ebony Norwood stole the names, birth dates and Social Security numbers of at least 49 people from two medical facilities where she worked. She use it to get a fraudulent driver’s license and change the mailing address of her victims so she got their mail and they didn’t see the bills she was running up in their names. Among her purchases was a 2002 Mercedes-Benz she financed for $35,560.

Last week the big medical identity theft news from the LA Times was about a Cedars-Sinai Medical Center former employee who stole the personal information of at least 1,000 patients and parlayed it into fraudulent insurance claims worth at least $69,000. That’s a nice chunk of change, but he might have made additional money by selling that information to others.

One of the biggest identity theft stories of 2008 had to be the one about an extortion attempt involving Express Scripts and a few million of their customers. The extortionist added credibility to their ransom request by adding the details of 75 of the company’s members, including their names, dates of birth, Social Security numbers and even some prescription info. The message was “Pay up, or we publish similar information on millions of your customers on the Internet.”

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Here’s how a lot of people find out about it:

• The waitress comes back with your credit card saying, “I’m sorry, sir, but your card was declined.”

or

• The credit card statement says you owe a minimum payment that includes a $39 fee for exceeding your $6,000 credit limit by $376, but the last time you used that card the balance was only $452.

Sounds like identity theft, right? Wrong.

There’s a fine distinction between identity theft and existing account fraud. In the scenarios above, what has probably occurred is existing account fraud.

Here’s the difference: If someone uses your personal information—your name, Social Security number, etc—to open new credit card accounts, new utility accounts or take out new loans, then you’re a victim of identity theft. However, if someone obtains your credit card number and makes purchases on your account, you’re a victim of existing account fraud.

How does it happen? Look again at the first scenario described above. The meal was great, the service was terrific, and you’re planning to give the waitress a 25% tip. But when she walked away with your credit card, she ran it through a skimmer she carries in her apron pocket. Now she has everything she needs to make purchases on your credit card account.

It can also happen in the checkout line at the mall. Stores are crowded, and you’re already holding your credit card in your hand to hasten things along when you finally get to the register. You don’t think there’s anything strange about the guy in line behind you who’s standing so close. But, he’s standing where he is so he can memorize the numbers on your credit card.

Call her the evil Christmas elf. Call her the grinch who stole toy-drive donors’ financial information. Call her the most damaging political intern since Monica Lewinsky. Call her whatever you want, but for heaven’s sake, call Phelicia Williams’ references before you give her a job.

Williams’ job responsibilities as an intern in Oakland, Cal. Mayor Ron Dellums’ office included helping with the mayor’s Holiday Toy Drive. Everybody loves a toy drive at Christmas time. And people especially love to donate to a toy drive when it’s one of their boss’s pet projects. That’s how Williams’ gained access to more than 100 personal checks police found photocopies of when they searched her apartment. And who wrote those checks? Oakland police officers making donations to their boss’s Christmas Toy Drive.

While the cops’ photocopied checks might end up being Williams’ biggest problem, they certainly aren’t the first.

It started with a misdemeanor forgery conviction that earned her three years of probation. She was still on probation for that charge when she began working for Pamela Price, an Oakland attorney.

Her job with Price gave her access to a company credit card that Price says Williams used to make $10,000 in purchases that included lingerie, a cell phone and tickets to sporting events—definitely not office-related expenses.

It was while police were searching Williams’ apartment for evidence related to that accusation that they came across the photocopied checks.