About The Law
by Andrew D. Myers

Identity Theft

They used to shoot horse thieves in the old west. Carjackers usually get at least some time. However, identity theft seems rampant in our new Century and rarely do we hear about harsh treatment.

Sometimes it happens through no fault of our own. They say deal only with reputable companies, ones you know and trust. Fine.

There was a case in this area several years ago in which a highly reputable business had a fluke bad employee who 'double swiped' credit cards and then used the info.

Honest consumers like you and I have no idea of the depth of evil facing us. Investigators now believe that hackers pointed a telescopic antenna towards a Marshall's store in Minnesota, and used a lap-top computer to "decode data streaming through the air between hand-held price-checking devices, cash registers and the store's computers." The Wall Street Journal, on May 4, 2007, reported that the data collected helped the hackers tap into the TJX computers in Framingham, MA to download customer credit info.

I know a guy with a very common name. The credit card companies, who after all are in the information business, should have been more careful before allowing a knucklehead with the same name, who screwed up his own credit, to use this guy's ID.

Sometimes it's our own carelessness. One day a waitress from the restaurant next door to my office walked in and said "Look what I found!" She had a credit card receipt with my name and credit card number. It had blown out of the dumpster into the parking lot that our businesses shared.

A paper shredder was purchased soon after.

Other things people do, in retrospect, have simple solutions. I can't believe how many people leave their lockers unlocked in the gym. If you follow the news, items are pilfered even in nice places.

I can't believe how many people leave their cars unlocked, their homes unlocked and their purses unattended. Computer people won't like this. But, I can't believe how many people leave computers on "24/7" with sensitive personal information stored there. Why give hackers an opportunity? Encryption and firewalls block honest people.

Check your credit report regularly. If anything doesn't look right, challenge it immediately. The burden then shifts to the credit reporting agency to verify the information.

You are entitled to one free copy of your credit report every year. The Fair and Accurate Credit Transactions Act of 2003 (FACTA) requires the credit bureaus to provide consumers, upon request, with one free copy of their credit report each year.

Equifax, Experian, and TransUnion, the big three, are easily found online.

If you transact business online, be careful. Read bank statements and credit card itemizations each month. Credit card companies offer protections if you report problems right away.

Ignore e-mails requesting verification of account information. These are largely scams, "phishing" for account numbers and other personal information. They may even look like they're from your bank. Never respond. If you think it's valid, ask your bank's customer service people before even thinking of responding.

Never 'verify' anything from an unsolicited e-mail.

You could protect yourself by cutting up your credit cards and paying for everything with cash. I horrified a family member in his 20's by saying that.

I'm not that old. When I was 20, they'd stopped printing Confederate money. But, ATM machines weren't around yet, either.

Every Friday, knowing the banks would shut down for the weekend, I thought what I needed that weekend; some groceries, a date, gas money and entertainment. It wasn't an exact science. But, you had to figure.

People did figure.

It's not a bad idea.

Back to reality.

I've helped people help themselves out of ID theft. More often than not the credit companies and banks will shut down the offender, remove the charges that aren't yours, and restore your credit.

However, the way the system works, it takes a great deal of time. It requires much communication by the victim to the financial institutions including correspondence, forms and telephone time. Perseverance pays off. But, cleaning up your credit after an ID theft can seem like rolling a rock up hill.

Do-It-Yourself Legal Kits

Attorney Myers: I just did a will using a web site and it was cheaper than if I had hired an attorney. Why not?

This reminds me of a news story from a few years ago. Instead of hiring an electrician, a fellow wired up the underwater lights of his own swimming pool. When the do-it-your-self handyman jumped in, he was electrocuted.

I've checked out some web sites and software. One site asked some of the same questions that an attorney would ask. But, I had questions that weren't answered. Another site gave few options for the trust that I would set up for the grandkids if I died before they were adults. The trust would simply sprinkle out payments at designated times until they achieved a certain age, regardless of purpose, for example, limiting it to education only.

There's little clarification outside the task of writing a will. For example, they don't do a good job of explaining the difference between a guardian and a trustee. The best options in your circle of friends and family may or may not be the same people.

Information is out there if you look. But, the programs and the sites generally tend to click you through a one-size-fits-all process. A good attorney will gear their approach to individual concerns of the clients and the needs they express.

The computer approach also ignores other relevant issues. For example there are ways for money and property to pass outside of a will. Beneficiary designations, joint interests and trusts are examples. I ask people who come to my office to do a will if they've checked the beneficiary statements of their life insurance, 401K and other documents. Sometimes these things were set up so long ago that there may be a new spouse in the picture, yet beneficiary designations weren't changed. This is simple advice. It takes little time. But, I don't see it in the computer forms.

Your will should be self proving, meaning the court will allow it without having to actually find the will's witnesses and bring them to court. Each state has its own statutory form. I'm not convinced the websites or programs provide the simple formalities that are absolutely required.

Under some scenarios, a trust is a good option for passing along what you have. If you sit down at the computer to do a will, you have blinders on to that and other alternatives. And doing a trust on the do-it-yourself plan would be like that guy with a scalpel in his hand in the TV commercial talking to his doctor about where to make the first incision. I have seen trusts of anywhere from one page to 200 pages, depending on an individual's needs and what they want to do.

Using a website or program, you're just filling out an electronic form, going down one path, without the benefit of the 'big picture'. Often, questions arise as to living wills, powers of attorney and other things. What is the difference between these forms? If you have one, do you need the other? Again, if you look, the answers are out there. But, if you just start filling out forms, they may or may not be what you need.

Two of the nastiest law suits I've ever seen were will contests. They dragged on at length. People on all sides paid dearly in time and money. In one, I was one of two attorneys representing one client's interests. The other attorney was a probate expert. I was the litigation guy.

Why risk it to save a few bucks now?

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To submit a question to About the Law, e-mail attorney Myers at andrew@attorney-myers.com.
See About the Law in the Derry News each Wednesday.
Copyright 2008. These columns initially appeared in the Derry News.