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, 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.

3. 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.

4. 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.

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 ID’s.

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 Don’t

11. 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.

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 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.

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 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.

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 Who’s 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 didn’t 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 don’t 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 (310) 824-4300 (800) 680-7289 Equifax (www.equifax.com) Experian (www.experian.com) P.O. Box #105069 P.O. Box #9532 Atlanta, GA Allen, TX 75013 (800) 525-6285 (888) EXPERIAN OtherWebsites: 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: (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