Consumers seek advice after news of massive scam

NEW YORK -- Numerous consumers moved to try to protect their finances and credit lines Tuesday, a day after prosecutors warned that thousands of people were vulnerable to a high-tech assault on their identities after records were stolen from a software company.

"It's just been a deluge," said Jay Foley, director of consumer and victims services at the Identity Theft Resource Center. The San Diego-based nonprofit organization, which helps victims of identity theft, was among several agencies nationwide swamped with calls Tuesday.

Callers were worried they might be victims of a massive scheme to steal credit information from thousands of people. Losses from the scam were put at $2.7 million and could grow as more victims are identified.

U.S. Attorney James B. Comey said Monday that prosecutors were still trying to learn how many people had their bank accounts drained, addresses changed, lines of credit opened and new credit cards opened without their approval.

He said almost all the fraudulent charges and withdrawals would be covered by financial institutions. Prosecutors are sending letters to victims that can be used as proof to credit agencies and financial institutions.

Authorities said the scheme began about three years ago when Philip Cummings, an employee at a Long Island software company, sold passwords and codes for downloading consumer credit reports to an unidentified person.

Cummings, 33, of Cartersville, Ga., was released on $500,000 bond after a court appearance in Manhattan on Monday at which he did not speak. The FBI also charged two other men in the case.

Officials credited the Ford Motor Credit Co., the world's largest automotive finance company, with discovering the fraud last winter.

Personal information belonging to some 30,000 people was stolen, authorities said. Included were 15,000 credit reports stolen from Experian, a credit history bureau, using passwords belonging to Ford Motor Credit Corp., a finance arm of Ford Motor Co. in Dearborn, Mich., officials said. A message left with Experian was not immediately returned Tuesday.

Melinda Wilson, a spokeswoman for the Ford credit company, said only a few Ford customers were affected and the company, a victim itself, went to authorities immediately.

"We didn't know what we had at first. We just kept digging and digging and unraveling and pulling, trying to get to the bottom of it," she said. "This was a breach that was made falsely in our name and, as such, it was deeply disturbing."

Libby Hutchinson, a spokeswoman for the Washington Mutual Finance Co., said the company, based in Crossville, Tenn., had sent out 6,000 letters to warn people that its access codes had been stolen.

"We're not aware of any amount of money that anyone has lost. Sadly, that might change," she said, noting an increase in inquiries by the public since Monday.

Some people who got letters "were concerned, actually thinking we were trying to scam them," she said.

"We had to assure them it was legit and gave them contacts at the FBI and other law enforcement agencies," she said.

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On the Net:

FTC identity theft site: http://www.consumer.gov/idtheft

Privacy Rights Clearinghouse: http://www.privacyrights.org

Identity Theft Resource Center: http://www.idtheftcenter.org