I was reading an article about an undercover investigation done by a consumer reporter on Sales Tax Fraud. Then it occurred to me, I see this all the time; especially at small independent retailers and restaurants.
If you don't receive a register receipt (not the one from the debit/credit card machine), the business you are patronizing is likely "skimming" the proceeds and under reporting the amount they receive.
These proceeds (which are in addition to the cost of what you are buying) go right into their pockets.
This occurs when nothing is rung (entered) into the register and the cash is put in the drawer. Another sure fire sign of "Sales Tax Fraud" is the employee using a calculator to figure out the total.
Here is the story:
"It can happen every time you buy something, and it's costing our state a staggering amount of money.
KIRO 7 Consumer Investigator Wayne Havrelly went undercover to expose a problem that's hurting all of us.
There's a secret underground economy operating in our state, and you're the one paying for it.
If you bought something today with cash, there's a good chance the tax you paid didn't go where it's supposed to. The tax bandits made sure of that.
Registers ring millions of times a day in Washington state, but our consumer investigation has revealed the money and tax we pay isn't always recorded."
To read about the entire investigation:
Sales Tax Fraud Could Cost State Millions
This is a local story in Washington State. If Washington is losing millions to this, I wonder how much we are losing nationwide?
I keep reading how local governments are running out of money all over the country. This mean that (we), who are honest end up paying more for essential government services.
If you spot this you should report it to your local State authorities. In the long run, you could reduce your taxes and help your community get the money it deserves.
Trust me, these businesses are using the services I mention and they are doing it for free, plus a profit.
I tried to find information on how to report this sort of fraud in all fifty states and there are a lot of sites, but none that where you can do it nationwide. I would recommend doing a search for keyword "Department of Revenue" if you see somethng you would like to report.
Of course, my favorite resource for reporting tax scams is Quatloos. Here is a form they have to report scams:
Quatloos! Fraud Report Form
Consumer Investigator Wayne Havrelly inspired me to reflect on this AND I see it happening all the time.
Tuesday, February 07, 2006
The Dirty Dozen Tax Scams
Tax Season is here and along with it many different types of fraud. In almost all instances, the people responsible are stealing from the government, but there are also those out there recruiting fresh victims daily to become unknowing accomplices to their crimes.
The slogan the IRS uses, which is one I subscribe to myself is "If it's too good to be true, it isn't."
Here is some advice from the experts at the IRS on the different types of scams they are seeing:
The Dirty Dozen
The IRS urges people to avoid these common schemes:
Trust Misuse.
Unscrupulous promoters for years have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits, and the IRS is actively examining these arrangements. More than two dozen injunctions have been obtained against promoters since 2001, and numerous promoters and their clients have been prosecuted. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.
Frivolous Arguments.
Promoters have been known to make the following outlandish claims: that the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; that wages are not income; that filing a return and paying taxes are merely voluntary; and that being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. Such arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.
Return Preparer Fraud.
Dishonest return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others, which are pending in court.
Credit Counseling Agencies.
Taxpayers should be careful with credit counseling organizations that claim they can fix credit ratings, push debt payment agreements or charge high fees, monthly service charges or mandatory “contributions” that may add to debt. The IRS Tax Exempt and Government Entities Division has made auditing credit counseling organizations a priority because some of these tax-exempt organizations, which are intended to provide education to low-income customers with debt problems, are charging debtors large fees, while providing little or no counseling.
"Claim of Right" Doctrine.
In this scheme, a taxpayer files a return and attempts to take a deduction equal to the entire amount of his or her wages. The promoter advises the taxpayer to label the deduction as “a necessary expense for the production of income” or “compensation for personal services actually rendered.” This so-called deduction is based on a misinterpretation of the Internal Revenue Code and has no basis in law.
“No Gain” Deduction.
Similar to “Claim of Right,” filers attempt to eliminate their entire adjusted gross income (AGI) by deducting it on Schedule A. The filer lists his or her AGI under the Schedule A section labeled “Other Miscellaneous Deductions” and attaches a statement to the return, referring to court documents and including the words “No Gain Realized.”
Corporation Sole.
Since September 2004, the Department of Justice has obtained six injunctions against promoters of this scheme and filed complaints against 11 others. Participants apply for incorporation under the pretext of being a “bishop” or “overseer” of a one-person, phony religious organization or society with the idea that this entitles the individual to exemption from federal income taxes as a nonprofit, religious organization. When used as intended, Corporation Sole statutes enable religious leaders to separate themselves legally from the control and ownership of church assets. But the rules have been twisted at seminars where taxpayers are charged fees of $1,000 or more and incorrectly told that Corporation Sole laws provide a “legal” way to escape paying federal income taxes, child support and other personal debts.
Identity Theft.
It pays to be choosy when it comes to disclosing personal information. Identity thieves have used stolen personal data to access financial accounts, run up charges on credit cards and apply for new loans. The IRS is aware of several identity theft scams involving taxes. In one case, fraudsters sent bank customers fictitious correspondence and IRS forms in an attempt to trick them into disclosing their personal financial data. In another, abusive tax preparers used clients’ Social Security numbers and other information to file false tax returns without the clients’ knowledge. Sometimes scammers pose as the IRS itself. Last year the IRS shut down a scheme in which perpetrators used e-mail to announce to unsuspecting taxpayers that they were “under audit” and could set matters right by divulging sensitive financial information on an official-looking Web site. Taxpayers should note the IRS does not use e-mail to contact them about issues related to their accounts. If taxpayers have any doubt whether a contact from the IRS is authentic, they can call 1-800-829-1040 to confirm it.
Abuse of Charitable Organizations and Deductions.
The IRS has observed an increase in the use of tax-exempt organizations to improperly shield income or assets from taxation. This can occur, for example, when a taxpayer moves assets or income to a tax-exempt supporting organization or donor-advised fund but maintains control over the assets or income, thereby obtaining a tax deduction without transferring a commensurate benefit to charity. A “contribution” of a historic facade easement to a tax-exempt conservation organization is another example. In many cases, local historic preservation laws already prohibit alteration of the home’s facade, making the contributed easement superfluous. Even if the facade could be altered, the deduction claimed for the easement contribution may far exceed the easement’s impact on the value of the property.
Offshore Transactions.
Despite a crackdown on the practice by the IRS and state tax agencies, individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS, along with the tax agencies of U.S. states and possessions, continues to aggressively pursue taxpayers and promoters involved in such abusive transactions.
Zero Return.
Promoters instruct taxpayers to enter all zeros on their federal income tax filings. In a twist on this scheme, filers enter zero income, report their withholding and then write “nunc pro tunc”–– Latin for “now for then”––on the return.
Employment Tax Evasion.
The IRS has seen a number of illegal schemes that instruct employers not to withhold federal income tax or other employment taxes from wages paid to their employees. Such advice is based on an incorrect interpretation of Section 861 and other parts of the tax law and has been refuted in court. Recent cases have resulted in criminal convictions, and the courts have issued injunctions against more than a dozen persons ordering them to stop promoting the scheme. Employer participants can also be held responsible for back payments of employment taxes, plus penalties and interest. It is worth noting that employees who have nothing withheld from their wages are still responsible for payment of their personal taxes.
Here is how you can report suspected activity:
Where Do You Report Suspected Tax Fraud Activity?
If you suspect or know of a company or person who is not complying with the tax laws, you can report their activity by phone, mail or your local IRS walk-in office.
Tax Shelter Hotline
The IRS Office of Tax Shelter Analysis serves as a clearinghouse for information about potentially improper tax shelter activity. You can submit information by mail, telephone, fax, or e-mail.
Referral Form for Reporting Abusive Tax Promotions and/or Promoters
(PDF 182K)The form helps document the information necessary to report an abusive tax avoidance scheme. The form can be mailed or faxed to the IRS.
Report Abusive CPAs, Attorneys or Enrolled Agents
Special e-mail address to report actions by unscrupulous tax professionals to the IRS Office of Professional Responsibility.
There aren't the only scams out there, if you are interested in learning more, go to:
Tax Fraud Alerts
No one likes paying taxes, but they are necessary to fund our way of life. When tax fraud is committed, the long term effect is that the honest taxpayer ends up paying more to cover for the government revenue lost to fraud.
That's not fair to the honest majority!
Perhaps educating ourselves and reporting suspected fraudulent activity would decrease the amount of taxes we pay in the future? After all, most politicians (especially at election time) don't like raising taxes.
Many of the social programs administered by the government are facing a lot of financial strain and I sometimes wonder how much of this is due to fraud?
Here is a site, Quatloos that covers of variety of scams, but has a lot of information on tax fraud.
The slogan the IRS uses, which is one I subscribe to myself is "If it's too good to be true, it isn't."
Here is some advice from the experts at the IRS on the different types of scams they are seeing:
The Dirty Dozen
The IRS urges people to avoid these common schemes:
Trust Misuse.
Unscrupulous promoters for years have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits, and the IRS is actively examining these arrangements. More than two dozen injunctions have been obtained against promoters since 2001, and numerous promoters and their clients have been prosecuted. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.
Frivolous Arguments.
Promoters have been known to make the following outlandish claims: that the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; that wages are not income; that filing a return and paying taxes are merely voluntary; and that being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. Such arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.
Return Preparer Fraud.
Dishonest return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others, which are pending in court.
Credit Counseling Agencies.
Taxpayers should be careful with credit counseling organizations that claim they can fix credit ratings, push debt payment agreements or charge high fees, monthly service charges or mandatory “contributions” that may add to debt. The IRS Tax Exempt and Government Entities Division has made auditing credit counseling organizations a priority because some of these tax-exempt organizations, which are intended to provide education to low-income customers with debt problems, are charging debtors large fees, while providing little or no counseling.
"Claim of Right" Doctrine.
In this scheme, a taxpayer files a return and attempts to take a deduction equal to the entire amount of his or her wages. The promoter advises the taxpayer to label the deduction as “a necessary expense for the production of income” or “compensation for personal services actually rendered.” This so-called deduction is based on a misinterpretation of the Internal Revenue Code and has no basis in law.
“No Gain” Deduction.
Similar to “Claim of Right,” filers attempt to eliminate their entire adjusted gross income (AGI) by deducting it on Schedule A. The filer lists his or her AGI under the Schedule A section labeled “Other Miscellaneous Deductions” and attaches a statement to the return, referring to court documents and including the words “No Gain Realized.”
Corporation Sole.
Since September 2004, the Department of Justice has obtained six injunctions against promoters of this scheme and filed complaints against 11 others. Participants apply for incorporation under the pretext of being a “bishop” or “overseer” of a one-person, phony religious organization or society with the idea that this entitles the individual to exemption from federal income taxes as a nonprofit, religious organization. When used as intended, Corporation Sole statutes enable religious leaders to separate themselves legally from the control and ownership of church assets. But the rules have been twisted at seminars where taxpayers are charged fees of $1,000 or more and incorrectly told that Corporation Sole laws provide a “legal” way to escape paying federal income taxes, child support and other personal debts.
Identity Theft.
It pays to be choosy when it comes to disclosing personal information. Identity thieves have used stolen personal data to access financial accounts, run up charges on credit cards and apply for new loans. The IRS is aware of several identity theft scams involving taxes. In one case, fraudsters sent bank customers fictitious correspondence and IRS forms in an attempt to trick them into disclosing their personal financial data. In another, abusive tax preparers used clients’ Social Security numbers and other information to file false tax returns without the clients’ knowledge. Sometimes scammers pose as the IRS itself. Last year the IRS shut down a scheme in which perpetrators used e-mail to announce to unsuspecting taxpayers that they were “under audit” and could set matters right by divulging sensitive financial information on an official-looking Web site. Taxpayers should note the IRS does not use e-mail to contact them about issues related to their accounts. If taxpayers have any doubt whether a contact from the IRS is authentic, they can call 1-800-829-1040 to confirm it.
Abuse of Charitable Organizations and Deductions.
The IRS has observed an increase in the use of tax-exempt organizations to improperly shield income or assets from taxation. This can occur, for example, when a taxpayer moves assets or income to a tax-exempt supporting organization or donor-advised fund but maintains control over the assets or income, thereby obtaining a tax deduction without transferring a commensurate benefit to charity. A “contribution” of a historic facade easement to a tax-exempt conservation organization is another example. In many cases, local historic preservation laws already prohibit alteration of the home’s facade, making the contributed easement superfluous. Even if the facade could be altered, the deduction claimed for the easement contribution may far exceed the easement’s impact on the value of the property.
Offshore Transactions.
Despite a crackdown on the practice by the IRS and state tax agencies, individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS, along with the tax agencies of U.S. states and possessions, continues to aggressively pursue taxpayers and promoters involved in such abusive transactions.
Zero Return.
Promoters instruct taxpayers to enter all zeros on their federal income tax filings. In a twist on this scheme, filers enter zero income, report their withholding and then write “nunc pro tunc”–– Latin for “now for then”––on the return.
Employment Tax Evasion.
The IRS has seen a number of illegal schemes that instruct employers not to withhold federal income tax or other employment taxes from wages paid to their employees. Such advice is based on an incorrect interpretation of Section 861 and other parts of the tax law and has been refuted in court. Recent cases have resulted in criminal convictions, and the courts have issued injunctions against more than a dozen persons ordering them to stop promoting the scheme. Employer participants can also be held responsible for back payments of employment taxes, plus penalties and interest. It is worth noting that employees who have nothing withheld from their wages are still responsible for payment of their personal taxes.
Here is how you can report suspected activity:
Where Do You Report Suspected Tax Fraud Activity?
If you suspect or know of a company or person who is not complying with the tax laws, you can report their activity by phone, mail or your local IRS walk-in office.
Tax Shelter Hotline
The IRS Office of Tax Shelter Analysis serves as a clearinghouse for information about potentially improper tax shelter activity. You can submit information by mail, telephone, fax, or e-mail.
Referral Form for Reporting Abusive Tax Promotions and/or Promoters
(PDF 182K)The form helps document the information necessary to report an abusive tax avoidance scheme. The form can be mailed or faxed to the IRS.
Report Abusive CPAs, Attorneys or Enrolled Agents
Special e-mail address to report actions by unscrupulous tax professionals to the IRS Office of Professional Responsibility.
There aren't the only scams out there, if you are interested in learning more, go to:
Tax Fraud Alerts
No one likes paying taxes, but they are necessary to fund our way of life. When tax fraud is committed, the long term effect is that the honest taxpayer ends up paying more to cover for the government revenue lost to fraud.
That's not fair to the honest majority!
Perhaps educating ourselves and reporting suspected fraudulent activity would decrease the amount of taxes we pay in the future? After all, most politicians (especially at election time) don't like raising taxes.
Many of the social programs administered by the government are facing a lot of financial strain and I sometimes wonder how much of this is due to fraud?
Here is a site, Quatloos that covers of variety of scams, but has a lot of information on tax fraud.
Sunday, February 05, 2006
What are the Security Implications of Pay Per Mail
Here is an interesting thought, Pay Per Mail. Yahoo and AOL will now offer a service (where for a fee) businesses can ensure their marketing e-mails bypass Spam filters.
Spam e-mail is often the delivery device of malware (malicious software), which is used for fraudulent activity on the internet. Experts agree that this activity is now being done by highly organized criminal enterprises. Many of these enterprises are probably capable of paying the fee, or using some sort of deception to have their Spam sent.
eBay accounts are now routinely taken over and used as vehicles for fraud. Will some of these Pay Per Mail accounts be taken over, also?
Here is one of the stories from the AP, courtesy of the San Francisco Chronicle:
Yahoo, AOL Plan Fee for Bypassing Filters
It's too early to speculate what the potential for abuse is. BUT I wonder how Yahoo and AOL will verify that the customers agreed to receive the mail (as they state) and that the businesses are legitimate?
Daily, we see major corporations and financial institutions being spoofed on the internet. Add in some Spam and people become victims of phishing, which leads to identities and financial information being stolen. If criminals are able to use this new service to their advantage, who will suffer from this?
The Spamhaus Project already has evidence the ISPs profit from Spam. Here is a recent article they did on this:
Should ISPs Be Profiting From Knowingly Hosting Spam Gangs?
This concept is probably too new to say anything for certain, but at first look, it bothers this writer.
The Spamhaus Project is a leader in the detection of Spam and other cyber-nasties, I like to refer to as scumware. If you would like a more technical perspective, I highly recommend their website, which can be viewed by clicking on the title of this post.
Back to Work Programs a Fraud Heaven for Scammers
We've all heard of Welfare Reform. Here are some examples of how it isn't saving the working public (who pay taxes) much money. In fact for those committing fraud, it appears to be pretty lucrative. According to reports, they may be taking in up to $5,000.00 a month without paying taxes.
Many of the people on this program, also qualify for AFDC (Aid to families with dependent children), the Food Stamp Program and possibly other free benefits.
In California alone, as reported by Troy Anderson of the Los Angeles Daily News, fraud and abuse are costing the taxpayers about 1.5 billion a year. Although this figure is being disputed by secondary sources, fraud isn't successful unless it goes undetected.
The end result from the law enforcement sources quoted is a belief that 40-50 percent of what is paid out is probably fraud.
Is it possible that some of these people have more spending power than say a "blue collar" family, who is paying for it in their taxes? Speaking of taxes, a lot of these people will qualify for
the Earned income tax credit, which can net them a few more thousand in spending power.
Here is a scary fact from the article that bespeaks a better than a "blue collar" lifestyle:
"In one case, prosecutors say a Lancaster resident conspired with relatives and friends to invent phony employment and child-care records and fraudulently obtain $345,719.
"The scam is increasingly popular in Los Angeles County, where investigators have opened more than 800 cases involving child-care fraud.
"Right now, this is the fraud du jour," said James Baker, assistant head deputy district attorney in the Welfare Fraud Division. "This is where the big money is now."
"The scam typically involves welfare-to-work recipients who fabricate employers or exaggerate work hours in order to qualify for taxpayer-financed child care. Then they split the money with friends and relatives who claim to be caring for the children, prosecutors said."
"Under reforms of the 1990s, welfare recipients qualify for government-paid child care -- usually $500 to $1,000 a month per child -- while they are looking for work or, after finding jobs, are making the transition into the work force."
For the full story by Troy Anderson, read:
Fraud eats away at funds earmarked for child care
The Welfare-to-work program is administered by the Federal Government. If there is 1.5 billion of fraud being committed in California, I would hate to estimate what the nationwide bill for all of this is. Furthermore, if in California, half of what is being paid out is a result of fraud, it's time to take a serious look at what is going on.
Don't get me wrong, we need to help those who are truly needy. BUT how much more could we help those who deserve help if half of the budget to help them wasn't being stolen by criminals? There are also the rights of those, who work hard and pay their taxes to support these social programs. It just isn't very equitable.
Speaking of social programs, it isn't hard to find reports in the news that they are over burdened and going bankrupt. The solution to this problem is greater oversight, to include aggressive prosecution of fraud and a complete review of entitlement policies and procedures.
It's not fair to make the working public pay for this sort of ABUSE!
Many of the people on this program, also qualify for AFDC (Aid to families with dependent children), the Food Stamp Program and possibly other free benefits.
In California alone, as reported by Troy Anderson of the Los Angeles Daily News, fraud and abuse are costing the taxpayers about 1.5 billion a year. Although this figure is being disputed by secondary sources, fraud isn't successful unless it goes undetected.
The end result from the law enforcement sources quoted is a belief that 40-50 percent of what is paid out is probably fraud.
Is it possible that some of these people have more spending power than say a "blue collar" family, who is paying for it in their taxes? Speaking of taxes, a lot of these people will qualify for
the Earned income tax credit, which can net them a few more thousand in spending power.
Here is a scary fact from the article that bespeaks a better than a "blue collar" lifestyle:
"In one case, prosecutors say a Lancaster resident conspired with relatives and friends to invent phony employment and child-care records and fraudulently obtain $345,719.
"The scam is increasingly popular in Los Angeles County, where investigators have opened more than 800 cases involving child-care fraud.
"Right now, this is the fraud du jour," said James Baker, assistant head deputy district attorney in the Welfare Fraud Division. "This is where the big money is now."
"The scam typically involves welfare-to-work recipients who fabricate employers or exaggerate work hours in order to qualify for taxpayer-financed child care. Then they split the money with friends and relatives who claim to be caring for the children, prosecutors said."
"Under reforms of the 1990s, welfare recipients qualify for government-paid child care -- usually $500 to $1,000 a month per child -- while they are looking for work or, after finding jobs, are making the transition into the work force."
For the full story by Troy Anderson, read:
Fraud eats away at funds earmarked for child care
The Welfare-to-work program is administered by the Federal Government. If there is 1.5 billion of fraud being committed in California, I would hate to estimate what the nationwide bill for all of this is. Furthermore, if in California, half of what is being paid out is a result of fraud, it's time to take a serious look at what is going on.
Don't get me wrong, we need to help those who are truly needy. BUT how much more could we help those who deserve help if half of the budget to help them wasn't being stolen by criminals? There are also the rights of those, who work hard and pay their taxes to support these social programs. It just isn't very equitable.
Speaking of social programs, it isn't hard to find reports in the news that they are over burdened and going bankrupt. The solution to this problem is greater oversight, to include aggressive prosecution of fraud and a complete review of entitlement policies and procedures.
It's not fair to make the working public pay for this sort of ABUSE!
Saturday, February 04, 2006
Graft in the Oil Industry Funds Criminals and Terrorists
For many of us gritting our teeth every time we fill up our tanks, it is merely a financial concern. The sad truth is that oil money is funding criminals, terrorists and radical governments.
Failure to take action now could cause us more than a "financial concern" when filling up our tanks.
Robert Worth and James Glanz of the New York Times recently wrote:
"Ali Allawi, Iraq's finance minister, estimated that insurgents reap 40 percent to 50 percent of all oil-smuggling profits in the country. Offering an example of how illicit oil products are kept flowing on the black market, he said that the insurgency had infiltrated senior management positions at the major northern refinery in Baiji and routinely terrorized truck drivers there. This allows the insurgents and their confederates to tap the pipeline, empty the trucks and sell the oil or gas themselves.
"It's gone beyond Nigeria levels now where it really threatens national security," Mr. Allawi said of the oil industry. "The insurgents are involved at all levels."
Here is the full story from the New York Times:
Oil Graft Fuels the Insurgency, Iraq and U.S. Say
The Christian Science Monitor also put it's view in writing on this subject:
"As the world's largest oil user, the US must reduce oil consumption so that an Iran cannot easily wield an oil card to get a nuclear weapon. Or so a Saudi Arabia cannot allow oil profits to filter to terrorists. Or so a Venezuela can't throw oil money at anti-US regimes. Or so a Russia cannot cut off petroleum exports in a strategic dispute. Or, for that matter, so a hurricane like Katrina can't create an oil price spike.
Nor should the US continue to spend billions to deploy its military in the Middle East to secure that dwindling oil patch - one reason perhaps why Bush set a goal for the US to cut 75 percent of its oil imports from the Middle East by 2025.
For the entire editorial:
For oil addicts, switch-grass gas and more (The Christian Science Monitor)
We need to free ourselves from our addiction to foreign oil. ACTING now could be crucial to our very existence. This isn't just the responsibility of our governments, but is also the responsibility of each and every one of us.
In the long term, developing new energy resources will the solution. Here is an interesting article from Missouri Families on how YOU as an individual can start impacting this problem tomorrow:
Reduce Your Gasoline Consumption and Save
There are other ways to do this in the long run, the most important of which is supporting the long term development of alternative resources. We must also become united in our efforts and support our leaders to find a new ways to combat this increasing menace.
Failure to take action now could cause us more than a "financial concern" when filling up our tanks.
Robert Worth and James Glanz of the New York Times recently wrote:
"Ali Allawi, Iraq's finance minister, estimated that insurgents reap 40 percent to 50 percent of all oil-smuggling profits in the country. Offering an example of how illicit oil products are kept flowing on the black market, he said that the insurgency had infiltrated senior management positions at the major northern refinery in Baiji and routinely terrorized truck drivers there. This allows the insurgents and their confederates to tap the pipeline, empty the trucks and sell the oil or gas themselves.
"It's gone beyond Nigeria levels now where it really threatens national security," Mr. Allawi said of the oil industry. "The insurgents are involved at all levels."
Here is the full story from the New York Times:
Oil Graft Fuels the Insurgency, Iraq and U.S. Say
The Christian Science Monitor also put it's view in writing on this subject:
"As the world's largest oil user, the US must reduce oil consumption so that an Iran cannot easily wield an oil card to get a nuclear weapon. Or so a Saudi Arabia cannot allow oil profits to filter to terrorists. Or so a Venezuela can't throw oil money at anti-US regimes. Or so a Russia cannot cut off petroleum exports in a strategic dispute. Or, for that matter, so a hurricane like Katrina can't create an oil price spike.
Nor should the US continue to spend billions to deploy its military in the Middle East to secure that dwindling oil patch - one reason perhaps why Bush set a goal for the US to cut 75 percent of its oil imports from the Middle East by 2025.
For the entire editorial:
For oil addicts, switch-grass gas and more (The Christian Science Monitor)
We need to free ourselves from our addiction to foreign oil. ACTING now could be crucial to our very existence. This isn't just the responsibility of our governments, but is also the responsibility of each and every one of us.
In the long term, developing new energy resources will the solution. Here is an interesting article from Missouri Families on how YOU as an individual can start impacting this problem tomorrow:
Reduce Your Gasoline Consumption and Save
There are other ways to do this in the long run, the most important of which is supporting the long term development of alternative resources. We must also become united in our efforts and support our leaders to find a new ways to combat this increasing menace.
Boston Globe Hands Out 202,000 Credit Card Numbers
We can add the Boston Globe to a growing list of corporations that have compromised people's financial information. Sadly enough, this wasn't done by a hacker, but was more of a faux-pax (social blunder). 202,000 Globe and Worcester Telegram and Gazette readers had their names and credit card numbers complete with expiration dates sent out as routing slips on the top of newspaper bundles.
In doing this, they literally handed out everything that a criminal would need to start committing credit card fraud.
Here is one of the stories about this circulating by the Boston Herald:
Fraud follows Globe goof: 3 say others used their credit cards
According to the ID Theft Center, the recent rash of data breaches have occurred in many different ways:
Lost or stolen laptops, computers or other computer storage devices.
Backup tapes lost in transit because they were not sent either electronically or with a human escort.
Hackers breaking into systems.
Employees stealing information or allowing access to information.
Information bought by a fake business.
Poor business practices- for example sending postcards with Social Security numbers on them.
Internal security failures.
Viruses, Trojan Horses and computer security loopholes.
Info tossed into dumpsters- improper disposition of information.
The Boston Globe is just another in a growing list of organizations, who have compromised the information of their customers. Others in the news recently for "data breaches" have been Choice Point, Wachovia Corporation, Bank of America, Time Warner and even educational institutions, such as Boston College and the University of California, Berkeley. Although these institutions are in fact victims themselves, many of these breaches occurred because of a lack of security and even what some would consider "stupidity."
To protect us all, there is a lot of legislation on the books and quite a bit that has been passed. Here are two posts regarding this:
Personal Data and Security Act Moves Forward
Terminating Identity Theft in California
Prudent corporations should realize that the time is NOW to take a serious look at protecting the assets of those, whom they claim are dear to their hearts, or their customers. Besides potentially being in violation of the law, "consumer confidence" is a powerful indicator of whether they will be successful in the future, or not.
A great resource to learn how to protect yourself against identity theft is the Identity Theft Resource Center. If you click on the title of this post, it will take you directly to their web site.
In doing this, they literally handed out everything that a criminal would need to start committing credit card fraud.
Here is one of the stories about this circulating by the Boston Herald:
Fraud follows Globe goof: 3 say others used their credit cards
According to the ID Theft Center, the recent rash of data breaches have occurred in many different ways:
Lost or stolen laptops, computers or other computer storage devices.
Backup tapes lost in transit because they were not sent either electronically or with a human escort.
Hackers breaking into systems.
Employees stealing information or allowing access to information.
Information bought by a fake business.
Poor business practices- for example sending postcards with Social Security numbers on them.
Internal security failures.
Viruses, Trojan Horses and computer security loopholes.
Info tossed into dumpsters- improper disposition of information.
The Boston Globe is just another in a growing list of organizations, who have compromised the information of their customers. Others in the news recently for "data breaches" have been Choice Point, Wachovia Corporation, Bank of America, Time Warner and even educational institutions, such as Boston College and the University of California, Berkeley. Although these institutions are in fact victims themselves, many of these breaches occurred because of a lack of security and even what some would consider "stupidity."
To protect us all, there is a lot of legislation on the books and quite a bit that has been passed. Here are two posts regarding this:
Personal Data and Security Act Moves Forward
Terminating Identity Theft in California
Prudent corporations should realize that the time is NOW to take a serious look at protecting the assets of those, whom they claim are dear to their hearts, or their customers. Besides potentially being in violation of the law, "consumer confidence" is a powerful indicator of whether they will be successful in the future, or not.
A great resource to learn how to protect yourself against identity theft is the Identity Theft Resource Center. If you click on the title of this post, it will take you directly to their web site.
Wednesday, February 01, 2006
Does the NSA, or the Private Sector Have Better Information?
The NSA and the Bush Administration have been in the news a lot lately for domestic surveillance. A recent development making the news is their alleged partnership with corporate America.
MATTHEW FORDAHL, AP Technology Writer reported yesterday:
"A civil liberties group sued AT&T Inc. on Tuesday for its alleged role in helping the National Security Agency spy on the phone calls and other communications of U.S. citizens without warrants.
The class-action lawsuit, filed in U.S. District Court in San Francisco by the Electronic Frontier Foundation, seeks to stop the surveillance program that started shortly after the 2001 terrorist attacks. It also seeks billions of dollars in damages.
The EFF claims the San Antonio-based telecommunications company not only provided direct access to its network that carries voice and data but also to its massive databases of stored telephone and Internet records that are updated constantly.
"Our main goal is to stop this invasion of privacy, prevent it from occurring again and make sure AT&T and all the other carriers understand there are going to be legal and economic consequences when they fail to follow the law," said Kevin Bankston, an EFF staff attorney.
President Bush has acknowledged authorizing the super-secret NSA to eavesdrop on international phone calls and e-mails of people within U.S. borders without the approval of a court, as required by existing surveillance and wiretapping laws.
The White House has vigorously defended the program, saying the president acted legally under the constitution and a post-Sept. 11 congressional resolution that granted him broad power to fight terrorism.
Democrats and civil libertarians disagree with the program's defenders, and it has already resulted in lawsuits against the federal government and plans for congressional hearings.
In its lawsuit, the EFF claims AT&T violated U.S. law and the privacy of its customers as part of the "massive and illegal program to wiretap and data mine Americans' communications." The group said it identified AT&T through news reports and its own investigation."
For the full story: Group Sues AT&T Over Alleged Surveillance.
The ACLU seems to be active in the issue, also. Here is a scary site about how this information might be used in the private sector for marketing purposes: ACLU - Pizza.
There is a lot of disagreement on this subject. On a personal level, if terrorists and criminals are being spied on, I could care less and support the efforts to do so. The problem as I see it is when corporations use this same data for so called marketing purposes and innocent people are victimized as a result of this.
Let's face it, we are in the information age and corporations have been gathering data (some might term it spying) on all of us for quite awhile.
The NSA is using the vast amounts of information compiled on citizens for marketing purposes. With all the massive data thefts (intrusions) in the past few years, it is apparent that the criminal element is using this information too.
Perhaps, the criminal element and the NSA know something the rest of us are only starting to understand, which is some of these corporations have gathered the best databases around.
If this is true, then why blame the NSA and the Bush Administration? If we want to solve the problem, perhaps we should address the root cause.
If you would like to read the release on this directly from the Electronic Frontier Foundation, click on the title of this post.
MATTHEW FORDAHL, AP Technology Writer reported yesterday:
"A civil liberties group sued AT&T Inc. on Tuesday for its alleged role in helping the National Security Agency spy on the phone calls and other communications of U.S. citizens without warrants.
The class-action lawsuit, filed in U.S. District Court in San Francisco by the Electronic Frontier Foundation, seeks to stop the surveillance program that started shortly after the 2001 terrorist attacks. It also seeks billions of dollars in damages.
The EFF claims the San Antonio-based telecommunications company not only provided direct access to its network that carries voice and data but also to its massive databases of stored telephone and Internet records that are updated constantly.
"Our main goal is to stop this invasion of privacy, prevent it from occurring again and make sure AT&T and all the other carriers understand there are going to be legal and economic consequences when they fail to follow the law," said Kevin Bankston, an EFF staff attorney.
President Bush has acknowledged authorizing the super-secret NSA to eavesdrop on international phone calls and e-mails of people within U.S. borders without the approval of a court, as required by existing surveillance and wiretapping laws.
The White House has vigorously defended the program, saying the president acted legally under the constitution and a post-Sept. 11 congressional resolution that granted him broad power to fight terrorism.
Democrats and civil libertarians disagree with the program's defenders, and it has already resulted in lawsuits against the federal government and plans for congressional hearings.
In its lawsuit, the EFF claims AT&T violated U.S. law and the privacy of its customers as part of the "massive and illegal program to wiretap and data mine Americans' communications." The group said it identified AT&T through news reports and its own investigation."
For the full story: Group Sues AT&T Over Alleged Surveillance.
The ACLU seems to be active in the issue, also. Here is a scary site about how this information might be used in the private sector for marketing purposes: ACLU - Pizza.
There is a lot of disagreement on this subject. On a personal level, if terrorists and criminals are being spied on, I could care less and support the efforts to do so. The problem as I see it is when corporations use this same data for so called marketing purposes and innocent people are victimized as a result of this.
Let's face it, we are in the information age and corporations have been gathering data (some might term it spying) on all of us for quite awhile.
The NSA is using the vast amounts of information compiled on citizens for marketing purposes. With all the massive data thefts (intrusions) in the past few years, it is apparent that the criminal element is using this information too.
Perhaps, the criminal element and the NSA know something the rest of us are only starting to understand, which is some of these corporations have gathered the best databases around.
If this is true, then why blame the NSA and the Bush Administration? If we want to solve the problem, perhaps we should address the root cause.
If you would like to read the release on this directly from the Electronic Frontier Foundation, click on the title of this post.
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