Identity theft: Reports soar in Collier, Lee as new technology aids thieves POLLS
By TARA E. McLAUGHLIN
Naples Daily News
Posted February 26, 2011 at 6 p.m.
NAPLES — Technology continues to make life easier — for thieves.
Take the newer generation credit cards or keyless entry IDs given to employees. They may be equipped with radio frequency chips that make transactions and entry into buildings faster.
They also make transferring personal information easier for anyone who buys a $50 scanning device online.
With it, someone can walk into a crowd and capture personal information from anyone who walks close enough.
But don’t try to keep up with the technology, law enforcement officials said.
“It’s limited to the imagination of the criminal,” said Dave Couvertier, FBI spokesman for the Naples and Fort Myers area.
Reports of identity theft in Collier and Lee counties have soared, according to Federal Trade Commission data provided to Scripps Howard News Service and the Daily News.
In 2009, 814 complaints were filed, up 33 percent from 611 in 2005.
Cape Coral’s 33914 ZIP code saw the most complaints with 158 followed closely by Bonita Springs’ 34135 with 151.
But no area is untouched. From Marco Island and Naples to Golden Gate Estates and Immokalee, victims of identity theft span every region with more than 3,800 complaints filed in five years.
Of those, 800 related to credit cards, either opening new cards in someone else’s name or attempting to charge items to an existing account.
It’s the most common complaint in Collier County, according to Sgt. David White, supervisor of the economic crimes unit for the Collier County Sheriff’s Office. And the preferred method of getting personal information is called skimming.
It could work like this: You hand your credit card to a restaurant server and before she swipes your card at the register, she passes it through another device that captures your information. You’re none the wiser until your next month’s statement and your card has been cloned and used anywhere in the world.
Another common identity theft crime in Collier and Lee counties is employment, tax or wage fraud, where someone lifts another person’s identity to land a job, start utilities services or claim another person’s tax refund.
More than 18 percent of complaints to the Federal Trade Commission, about 700 in the 5-year period, involved these types of theft.
“You have to have a Social Security number,” White said, “and if you’re here illegally you can just borrow someone else’s.”
Stacey Payne, Lee County Sheriff’s Office community relations manager, monitors complaints and said one of the growing trends in identity theft will involve smart phones.
“I don’t think we’ve even touched the iceberg yet,” Payne said.
These phones don’t yet have protective software like computers do.
People download apps from unknown developers that could embed malicious software in the phone, she said, scoring private details such as passwords and bank information.
Additionally, the surge in popularity of social networking sites and peoples’ growing willingness to publish private information online has made would-be thieves happy, the FBI’s Couvertier said.
Criminals follow individuals online and build profiles. If they find out where someone lives, they go to the garbage can and start pulling valuable documents such as preapproved credit card applications.
There are as many tips to protect identity as there are ways to steal it, but sometimes, there’s little that can be done.
“Even when you build your firewalls and use antivirus software and set the highest security parameters you can, a lot of times our personal information is in the hands of third parties,” Couvertier said.
Schools and the doctors may require your Social Security number when it’s often not needed, he said.
“We just get used to ‘That’s the way we do business,’” he said, so we give our Social Security number to almost anyone.
If the statistics mean anything, your chances for being faced with identity theft are increasing.
The FBI maintains the Internet Crime Complaint Center, which is a clearinghouse for reporting online crimes, including identity theft.
Nationally, the number of reported crimes dipped 9.8 percent in 2010 from 2009, but the number of identity thefts among those crimes increased 6.2 percent.
More than 50,000 identity theft complaints were filed in 2010 compared with more than 47,000 in 2009. In Florida in 2010, the center received nearly 22,000 complaints. Some 2,000 were identity theft.
If the unthinkable does happen and a person realizes they’ve become a victim, they need to contact their financial institutions and file a police report, said Lt. John Barkley of the Naples Police Department.
“You really have to take the bull by the horns and do it yourself,” he said.
But there is still much work to be done once a crime is reported, said Lee County Sheriff’s Office Sgt. Keith Day, of the economic crimes unit.
“The anonymity of the crime, the jurisdictional challenges and the lack of cooperation with law enforcement investigations from some of the private financial institutions are all big hurdles to overcome investigating these crimes,” he said.
And even more challenges come with attempts to prosecute, said Dean Plattner, an assistant state attorney who supervises the economic prosecutions for Lee, Collier, Charlotte, Glades and Hendry counties.
“It’s one thing to know something happened, or suspect something happened,” Plattner said. “But that’s just the beginning of the case, not the end. We need to know who, where, when, how and have evidence to bring to court to prove it.”
While there’s no surefire way to prevent identity theft, Couvertier said, there are definitely steps to take to protect yourself.
“Instead of worrying about every potential opportunity,” he said, “just have a general awareness of how these things happen, how they occur. If you start taking steps, you’ll reduce the chances of becoming a victim.”
State Farm defends proposed homeowners’ insurance rate increase
by MiamiHerald.com
Feb 28,2011
TALLAHASSEE — State Farm Florida defended its proposal to hike homeowners’ insurance rates an average of 28 percent during a public hearing Tuesday as necessary because the company’s finances have dwindled amid recent hurricane-free years.
“Our financial condition has deteriorated over the last two years,” State Farm pricing manager Adam Swope told the Office of Insurance Regulation panel. “Over the last almost three years, we’ve lost over $500 million of surplus. This company has lost a substantial amount of surplus in years with no hurricane events.”
The state’s largest private property insurer claims it needs increased premiums for its roughly 700,000 homeowners in Florida to pay for rising noncatastrophic claims, such as sinkholes.
The company has also proposed raising premiums for commercial multiperil policies an average of 96 percent. That plan generated little discussion Tuesday, as it affects an estimated 5 percent of State Farm’s clients.
Steve Alexander, actuary for the Office of the Insurance Consumer Advocate, did not suggest rejecting the rate increase, but had a few tweaks. He recommended bringing State Farm Florida’s premium costs closer to the national average and doubling the average sinkhole discount policy.
Belinda Miller, general counsel for the Office of Insurance Regulation, said some people would be surprised to see their premiums increase by 40 to 50 percent if the rate passes. She asked Swope if State Farm considered capping rates to “prevent the shock in the marketplace.” The carrier did, he said, but decided against it.
Dissatisfied customers, Miller said, would probably call their agent and ask about other options. Would these customers go to Citizens Property Insurance, the state-run insurer of last resort, or would State Farm ensure these customers could go to other companies? Swope wasn’t sure.
The Office of Insurance Regulation will accept comments or concerns via e-mail until Tuesday. Send them to ratehearings@floir.com with the subject “State Farm Florida.”
Eliminating staged accident fraud
Fort Myers, Fla--Florida insurance companies say they would like lawmakers to make changes to Florida law to crack down on staged accidents.
Florida is one of just 12 states requiring a $10,000 dollar personal injury protection clause in your policy. That means the insurance company pays up to $10,000 worth of medical claims directly to the medical provider...no questions asked. Scam artists take advantage of that provision by staging accidents and making false medical claims.
That's something insurance companies would like to see changed.
Justin Herndon with Allstate says fraud costs you about 20 percent of your insurance premiums.
He and other insurance companies would like to see Florida law changed to keep scam artists from ripping them off.
"The target needs to be these unscrupulous medical providers who are out there building up these claims and not testifying to the practices going on," said Herndon.
That's why insurance companies would like to see medical providers required to sign sworn statements about what treatments they have provided.
They'd also like a schedule of fees for attorneys...to keep those costs from ballooning.
Chair of the Florida Insurance and Banking sub-committee Representative Bryan Nelson says this is something he plans to look at this session.
He says his proposed bill isn't an insurance bill--it's an economic bill. Insurance providers say Floridians pay up to 400 dollars more than other states because of fraud from staged accidents.
"I know you know we have four of the top ten cities for this type of fraud in Florida," Nelson told WINK NEWS over the phone, "So we really need to look in every nook and cranny and try to squeeze out as much fraud as possible."
Florida Chief Financial Officer Jeff Atwater is responding. He has set up a second personal injury fraud squad to investigate these crimes.
Flood Insurance and Flooding Risks
Preferred Risk Policy Extension Program available for Homeowners
Why the PRP Extension?
Flood maps are changing as the assessment of flood risks changes due to community development, aging flood control structures, natural changes to topography, and better technology. The NFIP wants to ease the transition for property owners who have been newly mapped into a high-risk flood zone and the mandatory flood insurance purchase requirements that go along with map changes. If your property was newly mapped into a high-risk flood zone on or after October 1, 2008, you may be eligible for the lower-cost Preferred Risk Policy for up to 2 years after the latter of the two following dates:
- The effective date of the map revision, or
- January 1, 2011
Who is eligible?
- Property owners of buildings that have been newly mapped into high-risk flood zones (e.g., labeled with A, AE, AO, AH or V, or VE on the flood maps) due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible to receive a PRP for two policy years effective between January 1, 2011 and December 31, 2012. So, policies issued as standard-rated policies or converted to standard-rated policies following a map change on or after October 1, 2008, could be converted to the lower-cost PRP for two years beginning on the first renewal effective on or after January 1, 2011. On the third year, they may then be eligible for additional savings through grandfathering.
- Property owners of buildings that are newly mapped into a high-risk flood zone due to a map revision on or after January 1, 2011, are eligible to receive a lower-cost PRP for two policy years from the map revision date. On the third year, they may then be eligible for additional savings through grandfathering.
What you will need to do: Talk to your agent. Previous and current flood zone documentation for your property will be needed to validate your PRP extension eligibility. Historic maps and current effective maps are available through FEMA's Map Service website: www.msc.fema.gov. If you have questions or would like more information, you can call the NFIP Help Center at 1-800-427-4661 for assistance.
Change is coming for the Health Care Industry
A potential decline in physician office visits, record spending on health information technology, a total redesign of insurance markets, and the creation of accountable care organizations are among the health industry trends in store for 2011, according to a PriceWaterhouseCoopers report.
The report authors used an online survey of 1,000 U.S. adults to assess consumer perspectives on health reform, healthcare usage, and payment for healthcare. Those surveyed represented a cross-section of the population in terms of insurance status, age, gender, income, and geography. The survey results were incorporated into the analysis given in the report.
High Deductibles = Fewer Office Visits
Health insurance deductibles for people in employer-sponsored plans rose an average of 77% between 2003 and 2009, while premiums for family coverage increased by 41%, the Commonwealth Fund recently reported. And that trend will continue in 2011, according to the report, by the Health Research Institute at PriceWaterhouseCoopers (PwC), a large accounting and consulting firm.
In 2010, the most common plan had deductibles ranging from $400 to $999, according to PwC.
As deductibles rise, patients will forgo medical care to avoid paying out-of-pocket costs. Couple the rising deductibles with the struggling economy, and patients are even more likely to skip doctors visits.
"With more employees being squeezed with high-deductible plans and coinsurance, their increased cost sensitivity will push them to make hard decisions on how often to go to the doctor or what prescriptions to fill,"the report authors said.
The first group to be affected will be doctors and drug companies, because consumers' first-dollar spending in health plans tends to be on office visits and medication. Fewer office visits will eventually trickle down and effect other medical services, such as lab tests and imaging scans, the study authors said.
Health IT
Health information technology (HIT) spending is likely to hit record highs in 2011 as providers beef up their HIT capabilities to comply with new government regulations, according to the report.
Starting in 2011, hospitals and physicians can start collecting money for "meaningful use" of electronic health records (EHRs). The money comes from the 2009 economic stimulus bill, which authorized $19 billion to upgrade the nation's HIT capabilities and to provide incentive payments through Medicare and Medicaid to clinicians and hospitals when they use electronic health records.
Stage one of meaningful use is that physicians be able to provide patients with paper copies of their health records, which would be a "sea change for patients," the authors said.
Redefining Insurance
The primary foci of the insurance industry in 2011 will be the medical loss ratio (MLR) -- which mandates the proportion of an insurer's revenue that must be spent on patient care as opposed to administrative expenses -- as well as the new health insurance exchanges.
The Affordable Care Act (ACA) requires that, starting in 2011, insurers covering large groups must spend at least 85 cents per dollar of revenue on medical care or "activities that improve healthcare quality" (for small group and individual plans, they must spend 80 cents per dollar).
Beginning in the second quarter of 2011, the federal government will provide grants to help establish insurance exchanges, and debate will intensify over what defines a qualified health insurer. According to the report, 13.8 million people are expected to enroll in health insurance exchanges in 2014.
ACOs
The healthcare reform law will create a new care model, called an accountable care organization (ACO), which already has insiders buzzing.
Loosely defined, an ACO will be a group of providers that works together to treat a set number of patients, and splits the payments it receives for the care provided. Under the ACA, the government will begin offering providers the option of forming ACOs with the hope that the setup will improve patient care and save money. Starting in 2012, Medicare will pay ACOs using a "shared savings" design which pays bonuses based on meeting certain quality and cost-saving benchmarks.
In other words, if providers in an ACO can reduce the cost growth of Medicare in their communities, they will receive cash rewards.
The report authors warn that one of the biggest risks for ACOs will be managing a patient population and trying to keep the population healthy and enrolled in the ACO.
When PwC asked survey respondents how likely they would be to stay within an ACO, half said they would always stay with a hospital or group of physicians if they knew that group was accountable for their care.
"Providing incentives for patients to be a part of this accountability model could be the difference between profits and losses for an ACO," the report authors said.
Primary source: PriceWaterhouseCoopers
Source reference: PwC Health Research Institute "Top health industry issues of 2011".