2002 Fraud Trends

1
2002 Fraud Trends

• Detective Dave Street
• Moreno Valley Police Department.
• 909-486-6824

2
Houston, We Have a Problem

• In the year 2002, its estimated that 7-million
  Americans were victims of Identity Theft.
• In more than half of the cases, the victim had a
  relationship with the suspect.
• More than 11 million consumers were victims of
  credit card fraud.

3
Elements of the Crime

• Under 530.5 PC, ID theft is when the suspect uses
  anothers personal information to obtain credit,
  goods, services or medical info without
  permission.
• In most cases, there are 2 sets of victims.
• Before 530.5 VC, only the merchant was considered
  a victim.
• 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.

4
Identity Theft

• Difficult to detect. Victims often dont know
  someone has established credit in their name
  until their credit history is run for a large
  purchase.
• Difficult to identify perpetrator (theyre using
  your name).
• Difficult to investigate (multi-jurisdiction).
• Minimal punishment for offenders.
• Some companies make credit available with very
  few security checks.

5
Types of Identity Theft

• The quick hit is the most common. The thief
  uses your bank account , credit card , etc for
  a purchase and then moves on.
• The takeover is the most dangerous. The thief
  gets ID opens credit lines in your name. May
  use your ID for tickets, etc. Arrest warrants
  may go out in your name.
• The harasser is the most malicious. Often
  ex-spouse or business partner out to financially
  ruin you.

6
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 IDs.

7
Washing the Check

• Immerse check in solvent and wash the ink off.
• Dry check.
• Forge check, cash same.

8
Check Washing in Progress
9
Now You See It
10
Now You Dont
11
Counterfeit Checks

• Thieves use your bank account number because they
  know its in good standing.
• For 79.95, thieves buy software such as
  VersaCheck check stock to make counterfeit
  checks.
• They print checks with your account and will
  burn through an entire mall.
• They get refunds to buy drugs motel rooms.

12
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 suspects partner
  will advise its 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.

13
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.

14
Steal Incoming Mail

• Thieves intercept
• Incoming credit cards.
• Boxes of blank checks.
• Credit card statements with credit checks
  attached.
• Credit card bank statements listing your
  account numbers.
• Account numbers used on the Internet or phone.

15
Fishing for Mail

• Thieves attach sticky rat bait to a string
  fish for mail in USPS deposit boxes.
• Occurs nights weekends when nobody is around.
• Checks are then altered, washed or counterfeited.
• Deposit your mail inside the post office or
  deposit mail before the daily pickup times.

16
False Identification

• With computer technology, false IDs are good
  quality, cheap common.
• Why buy a false ID when you can get one from the
  DMV.
• For court purposes, CDLs are no longer
  considered positive ID.
• When merchants use CDLs for ID, theyre really
  checking if youre OK to drive.
• Why not establish your own false ID with an
  official birth certificate not your own.

17
What to Do Before ID Theft

• Remove telephone number and address from
  circulation.
• Obtain an alternative address for business
  correspondence.
• Have your personal information removed from
  direct marketing lists.

18
What to Do Before (continued)

• Mail Preference Service
• P.O. Box 9008
• Farmington, NY 11735
• Opt Out Program
• Call for credit reporting businesses to have
• your info removed from direct marketing
• 800-353-0809

19
What to Do Before (continued)

• Print minimal information on personal checks.
• Avoid using checks all together.
• Use ATM cards whenever possible.
• Consider on-line banking as an alternative.
• Remove name from Whos Who directories or other
  name publications.

20
What to Do Before (continued)

• Shred all identifying trash before disposal.
• Consider acquiring a voice mail service when any
  agency, business, or other than family and
  friends need your telephone number.
• Monitor your mail closely. Do not use your home
  mailbox for outgoing mail.

21
How is your Personal Data Obtained?

• Voter Registration Records
• Property Tax Records
• Criminal and Civil court files
• Bankruptcy files
• Military Service Records
• Occupational License Records
• Most other records acquired through a government
  agency
• Credit Reporting Bureaus

22
How Your Personal Info Is Obtained (continued)

• Private information brokers.
• Mail theft.
• Dumpster Diving.
• Internet access to public domain sites.
• Most businesses that acquire data on us, also
  sell data.

23
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.
• Receiving calls from collection agencies for past
  due debt you didnt create.

24
What You Should Do After Being Victimized

• Immediately make a police report.
• Under 530.6 PC, any police agency will take your
  report and forward it to the proper jurisdiction.
• Obtain a copy of the police report and make many
  copies.

25
What to Do After Being Victimized (continued)

• Put yourself on fraud alert status with the
  credit reporting bureaus. All three companies
  will mail you free credit reports and advise
  credit grantors to phone you first.
• Send affidavit to each credit grantor and request
  all false information be expunged.
• If your mail was stolen, contact the Postal
  Inspector to make a report.
• If you dont have one, determine if a U.S.
  Passport was made in your name.

26
What If The Crook Got A Ticket In Your Name?

• File an ID Theft report and then
• Check with local police for possible criminal
  actions against you.
• Check the local courts for any pending actions.
• Check with DMV for vehicle registration, CDL
  status, when last duplicate CDL issued in your
  name.

27
Agencies to Contact

• Federal Trade Commission Trans Union
  (www.transunion.com)
• 10877 Wilshire Blvd. P.O. Box 6790
• Los Angeles, CA 90024 Fullerton, CA 92834
• [phone] [phone]
• Equifax (www.equifax.com) Experian
  (www.experian.com)
• P.O. Box 105069 P.O. Box 9532
• Atlanta, GA Allen, TX 75013
• [phone] (888) EXPERIAN
• Other Websites
• FTC www.consumer.gov/idtheft
• ID Theft Resource Center www.idtheftcenter.org
• State of California ID Theft site
  www.privacy.ca.gov
• FBI Internet Fraud Complaint Center
  www.ifccfbi.gov

28
Check Reporting Agencies

• CheckRite [phone]
• Chexsystems [phone]
• CrossCheck [phone]
• Certigy/Equifax [phone]
• Intl Check Services [phone]
• SCAN [phone]
• TeleCheck [phone]