An identity-theft scheme that could have an effect on thousands of Americans has been exposed in Denver, the district attorney's offices advised in a customer alert Friday.
"The possible damage to citizens is enormous," said Lynn Kimbrough, spokesman for the prosecutor's office. "The possible is there that could affect thousands by the incredible misuse of tax reports and banking information."
During a regular theft inquiry, Denver police investigated a Denver residence and recovered private and financial information from about 75 persons and businesses from across the country.
The information, which included tax reports, bank-account data, online bill-paying records and other material, came out 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.
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