An identity-theft scheme that could affect thousands of Americans has been uncovered in Denver, the district attorney’s office warned in a consumer alert Friday.
“The potential harm to people is huge,” said Lynn Kimbrough, spokeswoman for the prosecutor’s office. “The potential is there that could affect thousands through the incredible misuse of tax records and banking information.”
During a routine theft investigation, Denver police searched a Denver apartment and recovered personal and financial information from about 75 individuals and businesses from across the country.
The information, which included tax records, bank-account data, online bill-paying records and other material, appears to have been stolen from computers that were using LimeWire, a file-sharing software program, Kimbrough said.
According to the Federal Trade Commission, millions of computer users share files online every day. Whether it’s music, games or software, file sharing can give people in an informal network access to a wealth of information, the FTC said.
Normally, file-sharing software allows only certain types of files, such as pictures or music, to be shared. But the safeguards can be breached and the information stored in the entire computer compromised, Kimbrough said.
Kimbrough said that it appears the file-sharing program was exploited to enable someone to illegally access every file and document on computers across the country.
She said computer-to-computer file sharing is “wildly popular” among young adults and teenagers because the software is free and easy to download.
Denver investigators are trying to determine if those who downloaded the information simply found computers that didn’t have ample security safeguards or managed to breach computer security.
She said parents, if they share a home computer with a young person, should check and see if LimeWire or other file-sharing software has been installed on their computer. Computer users, she said, might consider uninstalling file-sharing software and having their computers screened by a reputable computer professional.
Kimbrough said that one person has been arrested in the probe and three are being sought.
Staff writer Howard Pankratz can be reached at 303-954-1939 or hpankratz@denverpost.com.
