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Plenty Of Collateral Damage From a Credit Card Theft

There is a good article in PC Magazine that describes the scope of damages from identity theft when credit cards, smart phones, and spammers intersect. Jacqueline, a sales manager, had her credit card stolen and cloned, which resulted in over $2,000 in fraudulent charges. (Damages #1.) Her bank cancelled the exisitng credit card account and issued her a new credit card account. You would assume that was the end of the story, but sadly it wasn't.

Then, the credit card theft and card cloning happened with the replacement credit card -- which suggests an insider identity-theft problem at the bank Jacqueline uses.  Her bank cancelled the replacement credit card account, and issued her a second replacement credit card. End of the story, right?

Wrong. Next, Jacqueline and her contacts began to receive a flood of text message and phone call spam from unknown phone numbers. Apparently, the identity criminals had also stolen Jacqueline's mobile phone number (Damages #2.) along with her credit card information. Jacqueline's company-issued Blackberry-brand smart phone had been spamming people and phishing for consumers' Sovereign Bank sign-in credentials.

Jacqueline doesn't work at Sovereign Bank. After more investigations by the IT department at Jacqueline's employer, her mobile carrier, Verizon, informed them that the text message spam wasn't coming from its network, but from a computer pretending to be Jacqueline. Apparently, the credit card thieves re-sold Jacqueline's personal data and mobile phone number to other identity criminals, which included a spammer (Damages #3.):

"Someone had gotten a hold of her mobile number and was spoofing other phones using her digits. It turns out there's software designed specifically for businesses to send bulk SMS to lists of phone numbers from a computer."

Wow! What a mess. This saga highlights several issues, including the:

  • Creativity and persistence of identity thieves,
  • Efficiency of online forums where consumers' stolen personal data is resold and traded,
  • Value of consumers' (digital) personal information, and
  • Duration of damages from identity theft and fraud.

The average consumer doesn't think about how valuable the various bits of their personal information are. But, identity criminals think about it deeply.

The good news in this story was that the IT department at Jacqueline's employer was able to rule out any leaky smart phone apps that could have compromised her data security.

Today, there's not much more Jacqueline or her employer's IT department can do. Her personal identity information is out there in the thieves' domain. As I see it, all she can do is file police reports to document the trail of theft, and lock down her credit reports to keep the damage from spreading to her financial accounts. If the thieves also have her Social Security number, then they can obain fraudulent identification cards and drivers licenses. And, there's nothing to restrict the thieves' action with the USA borders.


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Peter Garcia

That's reaaly sad,im sorry she had to deal with this mess. I hope they can put severe punishment on the idendity thieves.......

Ian Worrall

Hoefully this gets all sorted out eventually. There are, however identity theft services out there that can help out.


I have also noticed that only because of credit card theft many collaterals damage every year. Credit card providers should find any good solution, so that after this theft at least credit card collaterals must not be damage.

John Martin

IT department has really a good job and could find her leaky smart phone apps, where they got some data about the credit card theft. This is true that because of this credit card theft plenty of collateral Damage.

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