State leads nation in fraud and identity theft


Florida’s transient population makes it easier for criminals to take advantage


WASHINGTON – Florida remained the hotspot for fraud and identity theft in 2014, burdened by the highest per-person rate of consumer complaints in the nation.

JuWanda Harris holds personal documents on Feb. 17, 2010, in Chicago. After Harris filed her tax return, the IRS told her someone using her Social Security number had already filed a return. (PHIL VELASQUEZ/CHICAGO TRIBUNE/TNS)
JuWanda Harris holds personal documents on Feb. 17, 2010, in Chicago. After Harris filed her tax return, the IRS told her someone using her Social Security number had already filed a return.

Among metropolitan areas, South Florida topped the list for ID-theft complaints for the fifth year in a row, according to figures released by the Federal Trade Commission.

But complaints from the region have dwindled from prior years, a sign that an intense federal and local crackdown has had an impact.

Florida – long known for flimflam, bogus swamp sales, and Medicare fraud – was home to seven of the top 20 metro areas for consumer fraud complaints last year. The state is the third most populous with 19.9 million but has the highest fraud rate by far. While we briefly mention Medicare fraud, this is something that should be taken seriously. Doctors/nurses in healthcare are people that we should be able to trust, but there are some who abuse their power within the industry. For more information on Medicare fraud, sites like may be worth checking out.

‘Getting better’
Still, the latest data on South Florida is a victory of sorts: The reported identity thefts are about half that of 2012, the peak of this ubiquitous crime in Palm Beach, Broward and Miami-Dade counties.

“The numbers are getting better,” said Cindy Liebes, FTC southeast regional director, who has traveled from Atlanta in previous years to warn of identity theft at town hall meetings throughout South Florida.

Computer hacking that exposed consumer information from companies such as Target and Home Depot has exacerbated the long-standing problem, the National Consumers League warned Tuesday.

“Data breaches regularly expose sensitive personal information about millions of Florida consumers on cybercrime black markets,” said John Breyault, vice president of the Consumers League. “Without reforms in Washington to better protect consumers’ data, high identity-theft rates could become the ‘new normal’ for consumers in Florida and around the country.”

That being said, online businesses also need to be vigilant with regards to ensuring that their websites are secure. For instance, eCommerce websites can enhance the security of their online stores by using a trustworthy web hosting service. There are so many unique web hosting service providers out there that all offer security features, and patches as part of their packages. You can learn about some of the most popular web hosts by reading through articles on A number of different web hosts have been reviewed by Jamie so take a look if your business is looking to enhance its web security.

Why Florida?
He said thieves and scammers apparently are attracted to Florida for a host of reasons: Its lack of state income tax means less scrutiny from state officials. Its transient population makes it easier for hit-and-run operators to blend in. Its large senior population provides a tempting target of savings and vulnerabilities. And its fast development “means a lot of new money floating around.” Of course, if the people of Florida are willing to scam vulnerable senior people, it should make the public worried about what else these people are willing to do. Perhaps this sort of behaviour is the reason behind so many of the senior population trying to get their houses set up with some Verisure Alarms to try and protect themselves from all of the thieves and scammers in their community.

More than 200,000 fraud-related complaints poured in from Floridians last year, the highest per-person rate in the nation, with 1,007 complaints per 100,000 of population. Florida’s high rate was followed by Georgia and Nevada.

More than 37,000 Floridians complained of identity theft, giving the state the highest rate – 186 per 100,000 – followed by Washington and Oregon.

Among metropolitan areas, Miami/Fort Lauderdale/West Palm Beach had 18,428 ID-theft complaints, the nation’s highest rate of 316 per 100,000.

Next highest were Seattle, St. Louis, Tallahassee and the Naples area. Jacksonville had the ninth highest rate, Fort Myers the 11th highest, Port St. Lucie 12th, Lakeland/Winter Haven 13th, and Orlando/Kissimmee/Sanford tied with Tampa for 17th.

Many of the thefts are discovered when taxpayers are unable to file their returns because an identity thief had already sent a return using their names.

Top cases
In early 2013, officials from the IRS called South Florida one of the “twin epicenters” in the state for tax-related identity theft and vowed to continue a crackdown. In a year, the federal agency tripled the number of investigations, doubled the number of IRS staffers working on tax-related identity theft and beefed up its computer software to ferret out fraudulent returns.

The IRS included two Florida cases in its top 10 identity theft prosecutions last year. Keven Cimeus of Miami was sentenced to 156 months in prison after federal agents found more than 2,400 Social Security numbers and names stored on thumb drives, laptops, an iPad and his email account. And Tanya Fox, of Orlando, was sentenced in October to 240 months in prison and ordered to pay more than $4 million for a scheme to file fraudulent tax returns using stolen identities taken from the Orange County Health Department.

Fighting ID theft also became the top priority for the FBI’s 800 employees who work between Fort Pierce and Key West. Local law enforcement also stepped up.

Tips for consumers
The National Consumer League, a private nonprofit advocacy group, said the report shows the need for Congress to increase penalties for malicious computer hacking and to require companies to meet data-security standards to safeguard consumer information.

The group also provided these tips for consumers:
Resist clicking on suspicious links or attachments in emails, text messages or on the Web. These often contain malware that can hijack your computer and steal sensitive personal information like Social Security numbers, user-names, passwords and dates of birth.

File your taxes early. The FTC identified tax-related identity theft as a top source of identity theft complaints. Scammers file in someone else’s name early in tax season and collect fraudulent returns before the legitimate taxpayer has filed his or her return.

Create strong and unique passwords using a combination of letters, numbers and symbols. Avoid using common words or names in your password and don’t use the same password across multiple websites. This can make remembering your passwords quite difficult, however, it can improve your online security. If you’re going to struggle with remembering these passwords, you could always consider looking at some of the passwords managers to store your passwords for you, such as some of the dashlane plans. There are multiple password managers though, so make sure to do some research before you install one.

Review your credit reports regularly and report any suspicious activity promptly to your bank. If you notice any transactions that you don’t recall making, then it’s important to tell your bank so they can investigate the unfamiliar transactions. It’s important to check all of your online profiles regularly to check no one has gained access to them. However, using all different passwords should help deter people from hacking into your online platforms.



Please enter your comment!
Please enter your name here