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May 2003 Issue
Feature 1

Losing Face

Feature 2

Old Wires, New Tricks

Editorial

Communications Complement
Editorial

Wisconsin Favorites

What Makes Mama Happy
Wisconsin Favorites

ARCHIVES

 

 

 

 

 

 

Losing Face
Identity Theft Emerging as Consumer Crisis

My wallet was stolen in December 1998. There’s been no end to the problems I’ve faced since then. The thieves used my identity to write checks, use a debit card, open a bank account with a line of credit, open credit accounts with several stores, obtain cell phones and run up huge bills, print fraudulent checks on a personal computer bearing my name, and more. I’ve spent the last two years trying to repair my credit report (a very frustrating process) and have suffered the ill effects of having a marred credit history. I’ve recently been denied a student loan because of inaccurate information on my credit report.—From a consumer complaint to the Federal Trade Commission February 22, 2001


Each year, hundreds of thousands of Americans are unknowing victims of our nation’s fastest growing crime—identity theft—and this number continues to grow dramatically each year. Indeed, there is a new identity theft victim every 45 seconds in the United States. U.S. Inspector General James Huse, Jr. calls identity theft the “emerging national crisis” and this crime can happen in many places and in many ways. The financial and personal toll on victims is dramatic, and federal, state, and local law enforcement are struggling to get the necessary tools to protect U.S. citizens from this crime.

Causes and Extent of Identity Theft in the U.S.

Identity theft is the theft of a consumer’s personal identifying information—such as a social security number, bank account number, or credit account number—for personal use by the thief. Identity theft occurs in many different ways, including: (1) “dumpster diving,” where the thief takes non-shredded personal information from a trash can; (2) mail theft, where a thief takes pre-approved credit cards, bank checks, or other personal information from a mail box; (3) purse or wallet theft, where credit cards or other types of personal identifying information are taken; (4) personal information theft committed by a dishonest employee at a hospital, government records office, etc.; (5) theft of credit card or other information by a thief over the Internet; or (6) theft of personal documents from a home by a burglar or trusted person. With this information, the thief can open new credit card accounts, drain a bank account, purchase automobiles, apply for loans, and open utility services, among other thefts.
Unfortunately, Federal Trade Commission (FTC) statistics make clear the extent to which identity theft is rapidly increasing as a significant problem for the American consumer. In 2002, the FTC received 380,103 written consumer fraud complaints from across the country, and, according to the Milwaukee Journal Sentinel, identity theft complaints were fully 43 percent of the total complaints filed. This compares with the next largest complaint—Internet theft—at 13 percent of the total complaints filed. The identity theft increase is even more dramatic when actual complaint numbers are compared: written identity theft complaints to the FTC rose from 31,117 in 2000 to 161,819 in 2002.
The Journal Sentinel notes that in Wisconsin, the primary types of identity theft are credit card fraud, phone and utility fraud, and bank fraud.
The economic impact of identity theft is extensive. There is, on average, a new consumer victim every 45 seconds and the total economic loss is estimated at over $2 billion a year. According to one newspaper account, thieves are estimated to receive an average of $6,7667 from financial institutions per victim, and an individual victim of identity theft is estimated to spend 175 hours and $800 untangling credit problems.
Why is identity theft growing so rapidly as a crime? The answer lies in our technology and the types of records government and businesses keep, often in computerized databases. These databases are vulnerable to discovery by electronic thieves if they are not adequately protected. Two recent thefts dramatize the extent of this problem. First, an "unauthorized intruder" gained access to some 8 million credit card account numbers—including Visa, MasterCard, and American Express—by breaching the security of a company that processes transactions for merchants, the card companies said on February 18, 2003. Unfortunately, it is still not clear how many consumers may have had their identity stolen as a result of this theft.
A second and equally dramatic case occurred on December 14, 2002, when “computer equipment and date files” were stolen from the offices of TriWest Healthcare Alliances’ offices in Phoenix, Arizona. This theft is thought to have potentially affected thousands of retired and active duty service members across the Western and Central United States. Once again, it is not clear how many consumers may have had their identity stolen as a result of this theft.

Identity Theft in Wisconsin

Closer to home, there have been a number of identity theft cases investigated or prosecuted by Wisconsin district attorneys. These cases impact numerous state businesses and thousands of our state’s citizens. In one case, a former employee of the Milwaukee County Register of Deeds Office has been accused by the Milwaukee County District Attorney of stealing birth and death certificates, marriage licenses, mortgages, and deeds from that office during a two-year period following an investigation by the U.S. Postal Service. According to the complaint, the former employee used the records to commit identity theft by obtaining credit in her victims’ names. Following the alleged thefts, a county audit determined the county should run background checks—including fingerprinting—on people selected for hire before they start working so that this type of theft does not occur again.
In another case reported in the Journal Sentinel, A 29-year-old Milwaukee man who prosecutors said was living off falsely obtained credit cards was sentenced August 28, 2002, to three years in prison for identity theft and was ordered to pay $10,000 in restitution to two banks. The defendant, a college graduate, began using Social Security numbers of 5- and 6-year-old children to obtain dozens of credit cards fraudulently.
Finally, in Waukesha County, a Register of Deeds office employee recently was charged with stealing blank birth certificates. According to county officials, also found at the former employee's home were printouts of Waukesha County government payroll records with county employees' names, home addresses, and Social Security numbers; a notary seal from the State of Illinois; two Illinois birth certificates; and letterhead and envelopes from the Waukesha County Register of Deeds office and Human Resources Department.
All of these cases demonstrate that identity theft has become a difficult Wisconsin problem as well.

State Legislature Responds

The Wisconsin Legislature is recognizing the dramatic impact identity theft is having on state citizens. The state Assembly created a task force to review ways Wisconsin law could be strengthened to more effectively combat this crime. The task force was chaired by Assembly Judiciary Committee Chair Mark Gundrum (R–New Berlin) and members included prosecutors, local law enforcement officers, and several business representatives. The task force worked for six months to draft legislation addressing several of the primary problems faced by Wisconsin consumers and state law enforcement.
Current Wisconsin law, Wisconsin Statutes Section 943.201, makes identity theft a felony crime; Wisconsin was the first state in the nation to make identity theft a felony. However, task force members determined some improvements to the current law were necessary to further protect Wisconsin consumers and businesses. First, task force members recommended that the state identity theft law address three types of activities would constitute identity theft: the intentional use, the attempt to use, or the possession of a person’s personal identifying information with the intent to use the person’s personal identifying information.
Second, task force members determined the identity theft jurisdiction of law enforcement officials and prosecutors needed to be broadened to provide greater protection to Wisconsin consumers and businesses. Under current state law, prosecutors do not have jurisdiction if an alleged criminal lives in another state and commits the crime from another state. This gap in state law often means that local police departments are reluctant to take police reports from local victims if the perpetrator is located in another state or another country. This then means the consumer not only cannot get the theft of his or her personal information investigated, but it also means the victim has no written record of the crime to provide to creditors, credit reporting agencies, insurers, etc. Therefore, the task force recommended providing state jurisdiction over “any person” who committed an identity theft crime against a resident of this state.
Third, task force members, at the request of the Wisconsin Federation of Cooperatives, included language requiring the local law enforcement agency to take a report on the alleged crime unless the agency reasonably concludes the agency does not have jurisdiction over the crime. Because the bill includes expanded jurisdiction language, it is intended the local law enforcement agency will take a report if the victim is a resident of his or her community, regardless of where the criminal may be located. This provision should greatly help consumers who have become identity theft victims.
Fourth, task force members recommended the proposed maximum penalty per violation be six years’ imprisonment with up to three years of probation. Since an identity theft crime could include multiple victims and multiple criminal activities, there is the possibility of criminal being sentenced to multiple felony penalties.
Fifth, the task force recommended that the law prohibit false statements to a financial institution such as a credit union or bank. This provision is intended to ensure a criminal opening up a false account in a victim’s name could be prosecuted for identity theft.
Representative Gundrum, along with other Assembly members, is expected to introduce the task force recommendations as legislation soon. Observers expect the state Assembly and Senate will quickly review the proposal.

How You Can Protect Yourself From Identity Theft:

1. Obtain and review your credit report each year from the three major credit report agencies: Equifax 1-800-525-6285, Experian 1-888-397-3742, and Trans Union 1-800-680-7289.

2. Opt out of receiving pre-approved credit card offers by calling 1-888-5-opt-out.

3. Shred pre-approved credit card offer and other personal financial documents before you put them in your garbage or recycling.

4. Do not carry your Social Security card—or any other card such as a medical insurance card containing your Social Security number—in your wallet or purse.

5. Do not put your phone number or driver’s license numbers on your checks.

6. Pick up new bank checks from your bank; do not have them sent to an unlocked mailbox.

7. Do not mail financial documents from an unsecured mailbox.

8. Check monthly credit, utility, and phone bills for charges you did not make. If monthly statements do not arrive on time, call your lender, utility, or telephone company right away.

9. Do not give identifying information over the phone to someone who called you.

10. Only use your credit card number at secured Internet sites that are identified by a padlock icon or that provide a security statement.

11. Do not use your mother’s maiden name or birthdate as your password.

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Old Wires, New Tricks

The television set in the boardroom at Vernon Telephone Cooperative in Westby, Wisconsin, displays a bright, crisp picture as legislators and other co-op guests watch the boys from nearby Seneca High School triumph over Northwood in the state basketball tournament. Not long after, there's drama of a very different kind: live images of huge explosions rocking Baghdad, delivered by a 24-hour news network as Allied aircraft and cruise missiles open a new phase of a war guaranteed to change the world.
In fact, the very means of our viewing the conflict signifies a changing world—thanks to one little twist that makes the situation in the boardroom nearly unique in the whole vast reach of the telecommunications industry. The pictures coming to us from the other side of the world and from the Kohl Center—about a hundred miles away in Madison—are not being captured by a rooftop antenna or even being fed through a coaxial TV cable. They're coming in through the copper-wire telephone line.

Innovation, Country-style

Vernon Telephone Cooperative is by no means the only rural telecommunications provider breaking into the new world of television over the phone lines—called digital video by those in the know—but it's fair to say this co-op and several others participating with it in joint ventures are on the cutting edge in deploying the emerging technology.
Vernon is one of several small cooperatives clustered in southwestern Wisconsin that somehow never got the message about how you have to be big or move to the East or West Coast before you can do important new things.
That was amply demonstrated several years ago with the creation of Midwest Tel Net.
It was founded in the 1990s and includes Cochrane Cooperative Telephone Company, La Valle Telephone Co-op, Richland–Grant Telephone Cooperative, Vernon Telephone Co-op, and neighboring electric cooperatives Oakdale Electric, Richland Electric, and Scenic Rivers Energy Cooperative, along with the privately owned Coon Valley Farmers, Hillsboro, and Lemonweir Valley Telephone Companies. Midwest is a consortium providing local Internet access in much of southwest Wisconsin. As of this spring, the combined telephone providers were serving about 22,000 lines.
By the end of the ’90s and with the telecommunications business in a state of rapid change, "It was time to have something new and offer other things," says Rod Olson, Vernon Telephone's manager. "One idea was that our members wanted an alternative to the cable television providers."
Midwest Tel Net, or MWT, was seen as the ideal vehicle to serve that member need by delivering television over its phone lines. And though it isn't alone in doing that, it is the first and so far only provider in the United States to be offering that service as a totally standards-based ethernet network using Internet Protocol or "IP."
Olson explains that MWT's Internet protocol is a new technology allowing every telephone, every computer, every box on top of a television set that's connected to the system to be identified by its own Internet-type address.
"It's not part of the worldwide web; we're building our own network entirely separate from the worldwide web. It's our own internal worldwide web for video," he says.
Just outside Westby is MWT's "head end" facility where satellite dishes collect signals and feed them into a compact, squeaky-clean building where they're processed for distribution through the wires. Inside, along with the processing equipment, there's an individual computer server for each of MWT's participating companies. They store all the information necessary to send the customers what they're paying for, and give each company control over its individual services and the ability to customize the look and feel of its product.
What's available from the system right now, in addition to TV, is voice communication (or as we used to say, telephone) and high-speed Internet service, all through the same phone line. Each service can be used simultaneously without interfering with the others.
During an early spring visit, five big dishes were in place and operating, with seven more scheduled to arrive by early last month. Video operations began in June 2002 and at the time of the visit, nearly 200 customers were connected to the service, and 120 channels were being received at the head end.
Once the customer base grows to 1,000, Olson says, it will become economically possible to offer on-demand video rentals with unlimited play during the 24-hour rental period and the ability to stop, pause, and restart, as if the customer were using his or her own videocassette player.
The system already can deliver Internet service through the television monitor. Using a wireless keyboard, it's possible to send and receive e-mail without a computer.

Meanings Large and Small

Big ideas can mean big changes, regardless of the size of the community. In small communities, some of the changes get noticed a little sooner.
One of the most direct and positive changes resulting from MWT's video operations is the hiring of five new employees—five brand-new jobs that never existed before in the community, Olson explains.
Another new thing being planned is a school network to offer coverage of area high school football and basketball games and to feature programming produced by local students.
The basic product now on offer is a digital fiber optic signal over about 200 miles of line with no "line loss," or deterioration over distance from the source. In the future, the same system could be used to read electric or water meters. Olson says some members have asked about using the system to conduct video monitoring for security purposes, and that could be coming as well. Virtually any device that can use IP addressing can be utilized over the network.
These capabilities haven't gone unnoticed outside the local area. Olson says companies as far away as Chicago are interested in the service provided by MWT.
Because each company that's part of MWT can offer its own local package, including its own unique lineup of television channels, how long the list of available services will be is something the members will pretty much determine for themselves.
The great significance of using the telephone line as the basic means of conveyance is that virtually anyone who wants MWT's growing array of services already has most of what's needed to receive them. That means a relatively rapid expansion of choices, in some cases for areas where historically the biggest concern hasn't been picking which way to obtain a service, but wondering when it would become available at all.
Rod Olson explains to the observers gathered in his boardroom that with their larger customer base and the purchasing power that goes with it, cable companies have lower programming costs, "but they charge more and they're raising their rates."
"They think we're just a little bump in the road for them," Olson says.
To which the most tech-savvy legislator in the room responds: "The market will hit them in the head."—Dave Hoopman


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Communications
Complement

Editorial by Perry Baird

When it comes to magazine articles, we’ve found readers’ memories tend to be quite selective. They’ll remember facts in obscure detail from a story they’ve read, but frequently they can’t recall when they read it.
With shelves of bound volumes stretching from floor to ceiling in my office, the archived Wisconsin Energy Cooperative News and its predecessor publications (Wisconsin REA News and Wisconsin R.E.C. News) hold a wealth of words and images dating back almost 63 years. A week seldom passes where someone doesn’t call or write to get information about a story of photo seen on our publication’s pages.
“I think it was maybe a year and a half or perhaps two years ago that I read it,” a caller tells me, seeking a copy of some article. From experience, I know that can mean the reader saw it up to at least five years ago.

Archive Minding and Mining

My memory of when we ran something can usually place the item within a year or two back as far as the mid-1980s, narrowing searches a bit. But since each individual co-op prepares certain pages of its own for each issue, there’s always the possibility that the reader may be recalling something from those pages—where my memory gets hazy (and is getting worse with passing years). A comprehensive index would be nice, but we’ve never had the necessary time to devote.
But the wonders of cyber-technology are now making our archive explorations both quicker and more readily available to magazine readers.
Peppered throughout this month’s edition at page bottoms and in various stories and graphics is a brand-new Internet web address: www.wecnmagazine.com. It’s our official site, just launched within the past few weeks. Among other features, it contains a searchable archive of materials printed since February 2002.

Digital Derivatives

That month is significant in that it’s when we began totally producing our magazine using digital imaging technology—essentially generating finished pages in computer programs. The jump to that process put the materials in a form that can be put more easily on a web site, and that’s what precisely what we’ve done. The whole magazine is not on the web site, just the principal features and editorial, calendar of events, recipes (in an indexed archive), and selected information from the pages prepared by local electric co-ops.
Besides archiving, another advantage of the site is to make available some additional information to our readers. For instance, where space in the magazine may not permit full details of a particular story, cluster of recipes, monthly events calendar, or other item of interest, that extra material may be put on www.wecnmagazine.com. Plus, updates on developing issues of importance can be posted on a web site with more immediacy than is possible with a monthly magazine.
In short, it’s a new and useful supplement to the magazine that we want to continue developing, upgrading, packing with interesting content, and talking with you about. Your ideas and participation are welcome.

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What Makes Mama Happy

A good friend of mine has this sign posted on his family’s refrigerator door: “When Mama ain’t happy, ain’t nobody happy!” For maximum happiness this May 11, think beyond the traditional Mother’s Day brunch or dinner. Instead, why not treat Mama to a day-long outing that includes her very favorite activities, as well as the traditional special meal? For many moms nationwide, those favorite pastimes include shopping, attending a special event or entertainment, or visiting a particularly interesting or beautiful site.
The shopping part is easy. Most Wisconsinites are within easy driving distance of a mall, but the whole family might find it more pleasant to stroll through one of our many towns that have unique shops and galleries, historic sites, and special eating establishments. For instance, take a drive to Mineral Point, where you can shop the antique shops and artisans’ studios. Pick up a one-of-a-kind treasure for Mom’s special-day gift, then stroll through Shakerag Alley, with buildings from the town’s mining past, and top your day off with a pasty from a Cornish restaurant. Other good towns for shopping, strolling, and munching include Bayfield, Hayward, Columbus, Augusta, Cedarburg, Wisconsin Dells, and Cambridge.
If Mama likes the arts, there’s an art fair in Marshfield on Mother’s Day, and several theater presentations are scheduled: a Groovy ’70s Review at Frank’s Dinner Theater in De Pere; The Odd Couple at the Hollywood Theatre Live, La Crosse; and The New Odd Couple at Eau Claire’s Fanny Hill Dinner Theatre, where both brunch and dinner performances are planned.
Some Wisconsin Historical Society sites will be open in time for Mother’s Day. Mama should love visiting the opulent Villa Louis in Prairie du Chien or the culturally diverse Old World Wisconsin near Eagle. The family with young children should especially enjoy the Circus World Museum in Baraboo, where the full summer program, including the big-top circus, swings into gear just in time for Mom’s holiday.
Most mothers love flowers, and beautiful displays are available at such showplaces as Janesville’s Rotary Gardens, the Green Bay Botanical Garden, the Boerner Botanical Gardens in Hales Corners, and Madison’s University of Wisconsin Arboretum and the Olbrich Botanical Gardens. As an added attraction, Olbrich features a Mother’s Day concert. No public gardens nearby? No problem! Take Mama to tour your area’s largest greenhouse, which should be bursting with color in mid-May. Then buy Mama some of her favorite blooms—and don’t forget to plant them for her when you get home!—Linda Hilton

Information about most of these events and locations was obtained by visiting www.travelwisconsin.com.

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©2008 Wisconsin Energy Cooperative News