2002 Fraud Trends

• Detective Dave Street• Moreno Valley Police

Department.• 909-486-6824

Houston, We Have a Problem

• In the year 2002, it’s 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.

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 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.

Identity Theft• Difficult to detect. Victims often don’t know

someone has established credit in their name until their credit history is run for a large purchase.

• Difficult to identify perpetrator (they’re using your name).

• Difficult to investigate (multi-jurisdiction).• Minimal punishment for offenders.• Some companies make credit available with very

few security checks.

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.

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.

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 “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.

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.

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.

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.

False Identification

• With computer technology, false ID’s are good quality, cheap & common.

• Why buy a false ID when you can get one from the DMV.

• 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.

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.

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

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 Who’s Who directories or other name publications.

• 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.

What to Do Before (continued)

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

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.

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 didn’t create.

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.

• 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 don’t have one, determine if a U.S. Passport was made in your name.

What to Do After Being Victimized (continued)

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.

Agencies to Contact• Federal Trade Commission Trans Union (www.transunion.com)

10877 Wilshire Blvd. P.O. Box #6790Los Angeles, CA 90024 Fullerton, CA 92834(310) 824-4300 (800) 680-7289

Equifax (www.equifax.com) Experian (www.experian.com) P.O. Box #105069 P.O. Box #9532Atlanta, GA Allen, TX 75013(800) 525-6285 (888) EXPERIAN

Other Websites:FTC: www.consumer.gov/idtheftID Theft Resource Center: www.idtheftcenter.orgState of California ID Theft site: www.privacy.ca.govFBI Internet Fraud Complaint Center: www.ifccfbi.gov

Check Reporting Agencies

CheckRite: (800) 766-2748

Chexsystems: (800) 428-9623

CrossCheck: (800) 843-0760

Certigy/Equifax: (800) 437-5120

Int’l Check Services: (800) 526-5380

SCAN: (800) 262-7771

TeleCheck: (800) 710-9898