May 2003
Issue
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Communications
Complement
Editorial
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What Makes Mama Happy
Wisconsin Favorites
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ARCHIVES |
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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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