Congress is finally waking up to the fact that just about everything Americans want to keep private—bank account details, phone records, credit records, medical records, driving records, bankruptcies, criminal records, civil suits, and property records and much more—is available if you have the money to purchase it.

That was the lesson Congressman Whitfield and the members of his House Energy and Commerce Committee Oversight Subcommittee learned during a series of hearings in June. The hearings featured testimony from data brokers, from whom banks, car dealers, jealous lovers, and even some law enforcement officers have covertly purchased information.

They learned of a multi-million dollar industry in which, by illegally impersonating your target, you can purchase someone’s phone records for US$200, Social Security number for US$60 and the location of a cell phone for US$300. 

They also learned how law enforcement—including the Department of Homeland Security and the FBI—uses data broker services to evade legal protections guaranteed in 1970s-era laws prohibiting law enforcement agencies from assembling such records. 

These privacy-stealing issues are so grave that data brokers that appeared on Capitol Hill in June couldn’t describe their own involvement for fear of criminal prosecution.

Congressman Whitfield’s subcommittee focused on the technique of pretexting, in which a data broker contacts a phone company, bank, mortgage company, utility, or government agency pretending to be someone else. In many cases, the data broker pretends to be the investigative target calling for information about his or her account.

The subcommittee subpoenaed representatives from 11 companies who obtain, market and sell personal data—but every one of them refused to testify about how they earn a living.

One by one, each of them raised their right hand and swore an oath to tell the truth. But when asked whether they sold “personal, non-public information” that had been obtained by lying or impersonating someone, all 11 representatives invoked their constitutional right not to incriminate themselves.

The subcommittee learned how drug dealers use data brokers to obtain information so they can track down and murder undercover narcotics agents and how stalkers use data brokers to find, harass and sometimes even kill their victims. For instance, in 1999, a man obsessed with a high-school classmate tracked down and killed her after using the services of a data broker called Docusearch, Inc. The killer paid Docusearch US$204 to learn Amy Boyer’s birthday, her Social Security number and her employer. Using this information, he ambushed and murdered Boyer as she left work. He then shot himself to death.

And Congress heard first and how numerous federal and local law enforcement agencies use data brokers to sweep up telephone, bank and other records, bypassing the legal framework set up 30 years ago designed to protect civil liberties. This disclosure occurs on an enormous scale. ChoicePoint, one of the largest data broker services, runs between 14,000 and 40,000 searches per month for just one federal agency, the United States Marshall’s Service.

Former data broker James Rapp testified that he could obtain their bank passwords or credit card records with just a few telephone calls. By providing customer service representatives a few pieces of information, he could trick them into revealing this data. After a few inquiries, he said he could obtain their Social Security numbers: the key to stealing someone’s identity.

“There was nowhere you could run or hide that I couldn’t track you down,” Rapp told the subcommittee members. 

Rapp’s exaggerating, but only a little. It’s true there is no way to eliminate the potential exposure of your data without ending all relationships with U.S. banks, brokerages, utility companies, etc. But there are steps you can take to greatly limit the data flow. Here are my top suggestions:

1. Guard your data. If a data broker or identity thief knows your name, date of birth, SSN,­ and residential address, they have enough information to steal your identity. Don’t give out this information unless you have no choice. For instance, when I fill out a form that asks for my SSN, I usually leave the entry blank. If it’s really needed, whoever processes the form contacts me. This rarely happens, but when it does, in almost every case I’ve been able to avoid disclosing this information, or I’ve been assigned a substitute number. I also don’t list my SSN on my checks or my driver’s license—and neither should you.

2. Contact banks, brokers, utility service providers, etc. and ask them not to answer inquiries about your account without a code word or phrase that you designate. Make sure the word or phrase wouldn’t be easy for an imposter to guess, such as your birthday or the last four digits of your SSN.

3. If you’re involved in litigation, ask that the records be sealed. If that’s not possible, you may have the right to request personal information such as your SSN, bank account numbers, etc. to be placed in a confidential addendum that can’t be retrieved without legal authorization.

4. Guard your residential address. Don’t list it on your driver’s license, stationary or anywhere else. Instead, rent a mailbox at a mail receiving service (e.g., The UPS Store, http://www.upsstore.com) and imprint this address on the license.

5. Use business entities to hold leases, own vehicles, take out utility services, etc. If you rent your residence (recommended because it will make it more difficult for stalkers or other undesirables to find you), consider forming a simple business entity, such as a domestic limited liability company (LLC), to hold the lease. You can use the same (or, ideally, different) LLCs to own your vehicle, obtain utility services, etc. You may need to identify yourself as the owner of the business entity, but don’t have yourself recorded as the account holder. If your name must appear at all on account records, it should merely be as a person to contact in an emergency.

6. Consider a “land trust” to cloak your ownership of real estate. This is a specific type of revocable trust created by state statute. Illinois and Florida land trusts, for instance, provide anonymity for the beneficial owners of the trust. In addition, the trustee can be a business entity, further shielding your identity. There is generally no requirement to register the trust, although its name as owner of the real estate will appear in public land records.

7. Move “nest egg” assets outside the U.S. into offshore jurisdictions that are serious about preserving privacy. The egregious violations of privacy we accept in the U.S. for the sake of “convenience” simply aren’t tolerated in countries like Switzerland and many other offshore centers.

 

 

You're an easy target for unjust lawsuits, asset forfeitures and identity theft.

I'll show you 109 ways to protect your privacy and property rights - and secure your wealth - using the secrets of the United States Witness Protection Program...  Click here for details.

 

More Articles on Financial Privacy