To paraphrase Mark Twain, the news
of Paul Vance’s death was greatly exaggerated. Last September, the Associated
Press reported the passing of Vance, who cowrote the pop hit, Itsy Bitsy Teenie Weenie Yellow Polka Dot
Bikini. The trouble was the real Vance was
still alive and living in Florida. The deceased, who also lived in Florida, had
spent much of his life posing as the songwriter, even to his wife.
 The imposter seemed more interested in notoriety than financial
gains, but the mix-up still caused Vance, then 76, some grief. A thoroughbred
owner, he saw his horses scratched from races based upon "news" that he had
passed away, and he worried that the fiasco would jeopardize his future music
royalties.
Vance was relatively lucky that his counterfeit self did not
cause more trouble. Identity theft plagues a growing number of affluent
individuals today, pummeling their financial and professional lives and causing
them years of hardship. Identity theft complaints made to the Federal Trade
Commission rose nearly 19 percent between 2003 and 2005, to more than 255,500.
It takes, on average, more than 600 hours—and more than 14 to 16 months—for a
victim to clear his record, notes James Kane, president of Hub International
Personal Insurance.
Criminals will target anyone with a social security number and
a good credit score, but the ultrawealthy are primary targets, says Paul
Viollis, CEO of Risk Control Strategies, a New York firm that specializes in the
security needs of affluent families. Individuals who lead a quasi-public life—by
sitting on boards, making large charitable donations, running a company—can be
even more vulnerable because their affiliations often require them to reveal
valuable information, such as their place of residence or net worth. Prevention
is key, and many effective steps don’t have to be major intrusions into your
life, Viollis says.
Viollis worries most about the people who immediately surround
his clients. According to the FTC, only one-quarter of victims uncover a thief’s
identity. But when serious crimes are committed—opening fraudulent accounts, for
example—more than half of the victims who identify the criminal find out the
thief is someone they know.
When serious crimes are committed, more than half of the victims who identify the criminal find out the thief is someone they know. |
Viollis urges his clients to ask anyone working in the home,
including temporary hires for seasonal work or a special event, to allow a
background check. Employees who routinely work inside the house and gain the
most intimate knowledge of the family should receive the most scrutiny.
"Negative behavior migrates to the path of least resistance," he says. "So if
you do a background check and I don’t, a person with a questionable background
is going to come to me for a job, and not to you."
One New York couple learned this lesson the hard way in 2004.
Reuben Borman and Cherin Perelmen took shortcuts in the usual checks and
scrutiny during their haste to hire a nanny to care for their colicky infant.
According to the New York
Times, the nanny, who dropped her résumé at a
placement agency while the couple was there seeking help, lasted only a few days
before disappearing with Perelmen’s cash and a stolen blank check.
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