Indenty Theft & Fraud

Senior Detective Dave Street • 29+ Years in Law Enforcement • Work #951-486-6824 • Currently Assigned to the Detective Bureau out of the RSO-MVPD Station. • Email: “DRSTREET@RIVER SIDESHERIFF.ORG” Houston, We Have a Problem • The Federal Trade Commission described ID Theft as one of the fastest growing crimes in America. • Some victims spend hundred of hours and thousands of dollars. • In 2007, US suffered a loss of • $45 billion to ID Theft. • In 2007, there were 8.1 million • victims in the USA. • There is hope. In 2006, the • US suffered a $49 billion loss. Part of the Problem • This is a credit society. • Merchants make getting credit easy to sell their products. • It’s a CATCH-22. • If one merchant is strict on issuing credit, people will go to his competitors and he will lose business. • Security against fraud is expensive. Part of the Problem • We have two sets of victims. • One: The business who was defrauded out of goods, services or money. Part of the Problem • Two: The person who’s identity was compromised. • This is a credit society. • The identity theft victim will have problems getting credit or have to pay more for it. Part of the Problem • Recent studies attribute a significant amount of fraud & ID theft to drug users. Elements of the Crime • Under 530.5 PC, ID theft is when the suspect uses another’s personal information to obtain credit, goods, services or medical treatment without permission. • Some get tickets in other people’s names. When they don’t pay, a traffic warrant is issued in the victim’s name. • 530.6 PC requires police agencies to take report and then forward to department with venue. • 530.8 PC requires businesses to supply records to both sets of victims. Saves time for police. Harvesting Your Identity Dumpster Diving • Still the easiest, most popular way to obtain information • Is it illegal to take trash from a curb? Harvesting Your Identity Mail Theft • Unsecured Residential Mail Boxes. • Discuss Trading Meth for Mail Case. What Can They Get From Your Mail • Incoming credit cards. • Boxes of blank checks. • Credit card statements with credit checks attached. • Credit card & bank statements listing your account numbers. Harvesting Your Identity • Stealing Your Mail is One Method. • Changing Your Address Is Another. • You Can Do It On the Internet! Harvesting Your Identity Purse/Wallet Theft • Residential Burglary • Describe Common M.O. of Knocking on Front Door and Then Going Around Back to Break In. Harvesting Your Identity Purse/Wallet Theft • Burglary from Vehicle. • Vehicle Theft. Harvesting Your Identity Rouge Employees • # 1 location for information… • Hospitals and Medical Clinics Harvesting Your Identity Rouge Employees • Government Offices Harvesting Your Identity Rouge Employees • • • • Custodial Staff Hotel Staff Schools Co-workers Harvesting Your Identity Rouge Employees • Store & Restaurants Employees • Skimmers Harvesting Your Identity Skimmers How the Skimmer Works Harvesting Your Identity ATM Skimmers Typical ATM machine, right? False slot fixed over the original card slot. The “Dummy” slot contains an additional card reader. Harvesting Your Identity ATM Skimmers Pamphlet holder on the side… That houses a hidden camera that captures the screen and your secret PIN code. Harvesting Your Identity ATM Skimmers Hidden camera has a wireless transmitter capable of sending information up to 200 meters. Harvesting Your Identity Computer Sources • Database Research • Your info is out there: – Ancestry Searches – Merlin – AutoTrack – LexisNexis – Accurint – Search USA Harvesting Your Identity Phishing • False Internet Web Pages. • Misrepresenting Themselves as a Bank, Credit Card Company or Well Known Retailer. • Used to Extract Personal Information From Victim. • Imagine being 80 and receiving email from Social Security threatening to cut off payments & Medicare unless you update your files. Harvesting Your Identity “EBAY” Phish Page What Do ID Thieves Do With Your Personal Information • With your stolen credit card, thieves can buy gas at the pumps, buy merchandise in the stores. • With your credit card number, thieves can buy merchandise on the Internet or by phone through mail order businesses. • With your bank account number, thieves can pay their bills over the phone. What Do ID Thieves Do With Your Personal Information Recent case where suspect responded to add for work out of home. Would receive packages at his home. Told to send to Brian in Ukraine. Received payment via Western Union for every 4 packages sent. What Do ID Thieves Do With Your Personal Information • With your CDL, they can open credit lines at most stores and charge merchandise that day. • With your personal information, thieves can obtain CDL with their pictures on them and your name. – Open credit card accounts, cell phone accounts, store credit accounts & home utilities. – Tell of $8,000 credit line case here in MV. – Cash counterfeit checks, stolen checks, altered checks. – Forge your name on loan documents, escrow papers, etc. – Forge your name on traffic citations and other criminal contacts with law enforcement. Why Thieves Steal Mail • “Wash” the ink off and rewrite check. • “Counterfeit” checks using your account #. • Pay Bills over phone or Internet using you checking account #. • “Alter” the check and cash them with false ID’s. “Washing” the Check • Immerse check in solvent and “wash” the ink off. • Dry check. • Forge check, cash same. • Using a “gel pen” will prevent this. Check Washing in Progress Now You See It Now You Don’t Counterfeit Checks • Thieves use your bank account number because they know it’s in good standing. • For $79.95, thieves buy software such as “Versa Check” & check stock to make counterfeit checks. • They print checks with your account # and will burn through an entire mall. • They get refunds on merchandise to buy drugs & motel rooms. Counterfeit Payroll Checks • Counterfeit checks with false business name & address, but valid cell phone #. • The market or check cashing business will verify funds are available on the automated merchant line. • The business will then call the cell # on the check for verification and the suspect’s partner will advise it’s OK to cash. • Of course, the business phone is part of the scam. • Relate case of having suspect deny involvement & then calling him on his cell. Altering Checks • Thieves will erase and change payee and amount information. • The changes are usually very obvious. • Using false ID (sometimes their own), they cash the checks. False Identification • With computer technology, false ID’s are good quality, cheap & common. • For court purposes, CDL’s are no longer considered positive ID. • When merchants use CDL’s for ID, they’re really checking if you’re OK to drive. • Why not establish your own false ID with an official birth certificate not your own. Signs That You Are Being Victimized • A sudden stop in your mail service. • Receiving mail from financial businesses, thanking you for your application. • Receiving telephone calls from business to “verify” your address. • Unexplained purchases on your credit card statement. • Receiving calls from collection agencies for past due debt you didn’t create. What To Do If You Are A Victim • Take a stiff drink! What To Do If You Are A Victim • Immediately make a police report. • Bring with you documentation with account numbers and your loss. • Sorry, a Credit Report is not enough. • Under 530.6 PC, any police agency will take your report & forward it to the proper jurisdiction. • Under 530.8 PC, company reporting loss must give victim documentation of questioned loss. What To Do If You Are A Victim • California’s “Office of Privacy Protection” is set up to help you. • Go immediately to www.privacy.ca.gov for assistance. • You will find up-todate directions on handling a variety of problems. What To Do If You Are A Victim • Put yourself on “fraud alert” status with the 3 main credit reporting bureaus. • Experian 888-397-3742 • Equifax 800-525-6285 • Trans Union 800-680-7289 • When a merchant phones one of the credit bureaus, they will give them your phone number. • At your request, all three companies will mail you free credit reports. • Follow up with written request & police report. What To Do If You Are A Victim • If someone is using your credit card number of bank account, immediately cancel the account. • Transfer your money to a new account. • Request a PIN or password be installed for access. • Ask bank to notify their “check verification company.” What To Do If You Are A Victim • Review your credit report & identify creditors who have reported you as delinquent. • Phone each creditor & report the fraud. • Have them send you an “affidavit of fraud” forms to document your claim in writing. • You can use forms from the “Office of Privacy Protection” web site (www.privacy.ca.gov) or the FTC’s web site (www.FTC.gov). • Send written affidavit & your police report to each credit grantor & ask that they investigate & expunged fraudulently opened accounts. What To Do If You Are A Victim • Also, send documentation and your police report to the three CREDIT BUREAUS. • Ask them to “block or remove” any negative information from your credit report that resulted from this fraud or ID theft. • Send it as certified mail with return receipt. • Do everything in writing and keep a written log and copies of all correspondence. What To Do If You Are A Victim • Be especially diligent if you are contacted by a collection agency • These agencies typically purchase you debt and because they have a monetary investment in your debt, they can garnish your wages, etc. What to Do If You Are A Victim • If your mail was stolen, report it to the US Postal Inspector. • You can find your closest office at “www.usps.com/websites/depart/inspect/.” • If your driver’s license was stolen, report it to the DMV Fraud Hotline 866-658-5758. • If someone uses your social security #, report it to “www.ssa.gov” What To Do If You Are A Victim • If a criminal arrest warrant is issued in your name, contact the issuing law enforcement agency and file an ID Theft report. • Typically, this happens when an imposter uses a false ID in your name to get a ticket. • Contact the issuing court and petition to have the warrant withdrawn. • Also, go to the California Dept of Justice web site and register in their “criminal identity theft registry.” • See www.privacy.ca.gov for specific instructions. Freeze Account • California residents can put a “security freeze” on their credit files maintained by the three credit bureaus. • Once in place, your credit report cannot be released to potential creditors. • Most legitimate creditors will check your credit history before issuing credit. • For a $10 fee, you can freeze your account with each credit bureau. What To Do If You Are A Victim • React immediately once you discover you are a victim. Nip it in the bud if possible. • Document dates, times, phone numbers & people you contact. These problems often resurface months or years later. • You may recover your money, but it takes time & effort to clean up your credit. • Nobody is going to do this for you. • Register yourself with the FTC as an identify theft victim. This will aid future investigations if these fraud issues continue. Prevention and Response www.privacy.ca.gov • Do not provide any personal information over the telephone or e-mail unless you initiated the contact • Don’t carry your Social Security card in your purse or wallet • Have your checks sent to your bank • Order your credit report at least once a year (www.annualcreditreport.com) • Use a gel pen when completing checks Prevention and Response • Shred everything with your name on it • Send mail from the Post Office or from a secured mailbox Special Thanks for Contributions to This Presentation California Office of Privacy Protection “www.privacy.ca.gov”