Identity Theft

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Identity Theft

• Presented By
• Melissa Beyer
• Steve Eberlein

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What is Identity Theft?

• Theft of identification information including
• Name
• Social Security Number
• Date of Birth
• Credit Card Number
• Drivers License Passport number
• Unique Biometric Data/Physical Representation

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ID Theft Stats

• ID Theft has surpassed drug trafficking as the
  number one crime in the nation
• In 2005 ID theft cost U.S. businesses and
  consumers 56 billion
• In 2006 15 million victims
• Every 2 seconds 1 new victim
• The average victim does not discover their
  identity has been stolen for 1 to 6 months after
  the first occurrence.
• Most ID thieves are repeat offenders.

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How Is It Committed?

• Low Tech Methods
• Shoulder Surfing in Public Places
• Discarded or Stolen Property
• Breaking Entering
• Dumpster Diving
• Accessing Mail or Recycling

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How Is it Committed?

• High Tech Methods
• Skimming
• Pretexting
• Phishing
• Pharming
• Wireless Hacking
• Computer Spyware

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How is the Stolen Info Used?
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Conventional ID TheftWhat is the Relevant Law?

• The Identity Theft and Assumption Deterrence Act
  was enacted on October 30, 1998 and added to
  1028
• 18 U.S.C. 1028(a)(7)
• makes ID theft a Federal crime
• establishes harsher penalties of up to 15 years
  imprisonment and a maximum fine of 250,000
• allows the identity theft victim to seek
  restitution

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18 U.S.C. 1028(a)(7)

• Whoever knowingly transfers, possesses, or uses,
  without lawful authority, a means of
  identification of another person with the intent
  to commit, or to aid or abet, or in connection
  with, any unlawful activity that constitutes a
  violation of Federal law, or that constitutes a
  felony under any applicable State or local law
  violates this statute.

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What did 1028(a)(7) add to the Statute?

• Previously 1028 only criminalized the creation,
  use, or transfer or fraudulent ID documents
• Now, 1028(a)(7) criminalizes fraudulent
  creation, use, or transfer of the underlying
  personal information, regardless of its use in a
  document
• It also imposed more stringent penalties for
  identity thefts
• And attempts or conspiracies receive the same
  punishment as a substantive offense under 1028

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Aggravated Identity Theft

• The Identity Theft Penalty Enhancement Act was
  enacted on July 15, 2004
• It created a new offense under 18 U.S.C. 1028A
• Aggravated Identity Theft
• It prohibits the knowing and unlawful transfer,
  possession, or use of a means of ID of another
  person, during and in relation to any felony
  listed in the statute at (c).

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1028A(c) Non-Terrorism Predicate Felonies

• Document fraud
• Mail, e-mail, wire fraud
• Immigration passport fraud
• Various theft offenses
• Securities fraud
• False elicitation of SS No.
• Health care fraud
• False pretenses on high seas

Over 180 Non-Terrorism Related Felonies!
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1028A(c) Terrorism-Related Predicate Felonies

• Financing, Supporting, Harboring terrorists
• Violence at Airports, on an Aircraft, against
  Maritime platforms
• Bombing other violent acts against U.S.
  officials, Govt property, or any public property
  

Over 100 Terrorism Related Felonies!
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Aggravated ID Theft Penalties

• General Offense
• Consecutive to imprisonment term provided for
  such felony, defendant shall be sentenced to a
  minimum, mandatory 2 year term of imprisonment.
• Terrorism Offense
• Consecutive to imprisonment term provided for
  such felony, defendant shall be sentenced to a
  minimum, mandatory 5 year term of imprisonment.

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Conventional ID Theft Sentencing Guidelines

• Under the 98 ID Theft Act, the Sentencing
  Commission added this directive at 2B1.1(b)(9)
• (C)(i)the unauthorized transfer or use of any
  means of identification unlawfully to produce or
  obtain any other means of identification or (ii)
  the possession of 5 or more means of
  identification that unlawfully were produced from
  another means of identification, or obtained by
  the use of another means of identification,
  increase by 2 levels. If the resulting offense
  level is less than level 12, increase to level
  12.

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Aggravated ID Theft Sentencing Guidelines

• The Sentencing Commission accommodated for the
  two new Agg. ID theft crimes created by the 04
  Identity Theft Penalty Enhancement Act at 2B1.6
• the guideline sentence is the term of
  imprisonment required by statute
• 2 years for Non-Terrorism Related Felonies
• 5 years for Terrorism-Related Felonies
• Chapt. 2 Specific Offense Characteristic, Chapt.
  Three Adjustments, and Chapt. Four Criminal
  History and Criminal Livelihood, shall not apply
  to that count of conviction to avoid
  double-counting

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Issue Whether the D charged with a violation of
1028A must be convicted of, or even charged
with, an underlying predicate felony?

• The Language
• 1028A only applies where the Ds unlawful
  transfer, use, or possession is accomplished
  during and in relation to any 1028A(c) felony.

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Argument

• The Statutory language during and in relation
  to should be construed to find that a Ds
  conviction under 1028A does not depend on his
  being convicted of the predicate offense.
• As long as all the elements of 1028A were proved
  beyond a reasonable doubt.

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Why?

• 1028A closely parallels 924(c), which provides
  sentencing enhancements for gun-related offenses.
• It uses similar during and in relation to any
  felony language
• The 4th Circ. has construed this language to mean
  that conviction under 924(c) does not depend on
  conviction of a predicate felony
• This allows prosecutors to

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How Do You Protect Yourself? 5 Questions to Ask
Every Business

• Why do you need my information?
• How will my information be used?
• How do you keep my information safe?
• Have you ever had a security breach?
• How do you dispose of old records?

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Other Tips?

• Dont leave a paper trail!
• Destroy all CC statements and other records that
  have personal info
• Never leave receipts behind at ATMs, gas
  stations, etc...
• Safeguard your SS Number.
• Never carry it with you or put it on checks

• Monitor your credit report and CC statements
  carefully.
• For online purchases, consider alternatives to
  using your CC, such as
• Smart cards, Stored-value cards, Digital cash,
  etc...
• Finally, some Insurance Companies offer identity
  theft insurance to cover portions of loss.

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Any Questions?