April 20, 2005     Willow Glen, California Since 1992
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Medical info is stolen, and Willow Glen patients sent warning letter
By Alicia Upano
Patients with the San Jose Medical Group, including many Willow Glen residents, are taking steps to protect their identities after their personal data was stolen during an office break-in at the group's Race Street administrative offices on March 28.

The burglars stole two new computers containing names, addresses, confidential medical information and Social Security numbers of 185,000 past and present patients. The medical group alerted patients to the burglary and stolen data in a letter dated April 4.

Although the medical group has patients from throughout Santa Clara County, numerous Willow Glen residents were affected. The medical group maintains a Willow Glen branch at 655 Lincoln Ave. That office treats nearly 350 patients daily, said San Jose Medical Group CEO Ernie Wallerstein.

When Willow Glen resident Judith Semas received the letter on April 7, she was shocked. "I thought, 'Whoa.' You read about it and you never feel its going to happen to you."

Semas knows that if someone got hold of her name and Social Security number, they could easily obtain a line of credit in her name. She immediately ran a credit report and found no foul play. Semas said she will continue to run her reports quarterly.

Even before the break-in, Semas subscribed to a credit-reporting service for peace of mind, she said. The service she uses, creditexpert.com, monitors her credit daily for a monthly charge. If anything suspicious pops up, she receives an email immediately.

Ken Miller and his wife, Querta, who also live in Willow Glen, also received letters from the medical group. Miller knows well the dangers of identity theft and was well-prepared for the security breach.

Miller became an identify-theft victim several years ago. A Western Union agent had called him at 2 a.m. to confirm his identity before wiring money from Atlanta to Los Angeles. Miller denied the transfer and realized his identity had been stolen.

Using Miller's name and credit card number, a man called the credit card company to change Miller's home address to Atlanta and have a card reissued. By the time Miller discovered it, the man had successfully transferred $900.

To protect himself, Miller immediately placed a fraud alert on all his accounts. The alert is free and can be launched through the three major credit bureaus--Equifax, Experian and TransUnion. As soon as an individual tries to obtain credit, an electronic fraud alert is issued by one of these major credit bureaus. This stops the processing of any new credit card or loan until the applicant's identity is verified.

Miller has not been a fraud victim since and recommends the service to all San Jose Medical Group patients.

U.S. Bank vice president Dave Machado agrees that the fraud alert is a good shield against identity theft. Since the burglary, several people have come to the U.S. Bank's Los Gatos branch for advice.

Many, Machado says, have been seniors concerned about the safety of their pension and Social Security checks. None of their credit reports showed any suspicious transactions and they opted to utilize the fraud alert service. Machado said these extra precautions are necessary.

"I've been in banking 27 years and there's a whole new wave of crime going on here," Machado said. "But there are ways to protect yourself."

While bank accounts should be safe, Machado recommends monitoring the accounts closely for several months. He also says online banking is a way to avoid mailing checks that could be stolen through the mail.

The biggest risk is credit, Machado says. Criminals often take out credit cards with stores such as Home Depot, Circuit City and Best Buy. Items bought there, he said, are easy to resell.

Adults are not the only ones at risk, Machado added. Minors with no credit history are also at risk. This issue has Willow Glen resident Catherine Edwards concerned about the possible identity theft of her 10- and 13-year-old boys. Both received letters from San Jose Medical Group.

"You can do nothing until something happens," Edwards said. For minors, the only recourse is to dispute transactions after they happen.

For herself, Edwards said placing a fraud alert on her accounts was easy. The medical group's instructions for using the service was also helpful, she added.

Edwards' main concern, however, is that the data was not protected prior to the break in. "It's a little disconcerting that the information on the computer was not password-protected."

Although Wallerstein would not confirm whether the medical group plans on encrypting data, he said the San Jose Medical Group is beefing up security. Police have advised Wallerstein not to disclose security improvements until the burglary investigation is complete, he said.

"We feel violated here," Wallerstein said. "We're doing everything we can to make sure it won't happen again."

For more information on fraud alerts or credit reports, contact Equifax at 888.766.0008, Experian at 888.397.3742 or TransUnion at 800.680.72889.

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