| atlanta division, knoxville / chattanooga domiciles
TRANSCRIPT
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ATLANTA DIVISION, KNOXVILLE / CHATTANOOGA
DOMICILES
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MISSION
The mission of the U.S. Postal Inspection Service The mission of the U.S. Postal Inspection Service is to protect the U.S. Postal Service, secure the is to protect the U.S. Postal Service, secure the nation’s mail system and ensure public trust in the nation’s mail system and ensure public trust in the mail.mail.
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IDENTITY THEFT
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What Is Identity Theft?
When a person knowingly transfers or uses, without When a person knowingly transfers or uses, without lawful authority, a means of identification of lawful authority, a means of identification of another person with the intent to commit or to aid another person with the intent to commit or to aid or abet any unlawful activity that constitutes a or abet any unlawful activity that constitutes a violation of federal law or that constitutes a felony violation of federal law or that constitutes a felony under any applicable state or local law.under any applicable state or local law.Identity Theft and Assumption Deterrence Act, Identity Theft and Assumption Deterrence Act, 18 USC 1028 (a) (7) 18 USC 1028 (a) (7)
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IDENTITY THEFT / FRAUD
Identity theft involves acquiring key pieces of Identity theft involves acquiring key pieces of identifying information without the victim’s identifying information without the victim’s knowledge.knowledge.
Identity fraud occurs when thieves use the Identity fraud occurs when thieves use the victim’s personal identifying information to order victim’s personal identifying information to order merchandise, obtain credit, or otherwise falsely merchandise, obtain credit, or otherwise falsely represent themselves without the victims’ consent.represent themselves without the victims’ consent.
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What do They All Have in Common ??What do They All Have in Common ??
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THEY ARE ALL VICTIMSTHEY ARE ALL VICTIMS OFOF IDENTITY THEFTIDENTITY THEFT
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TRENDS
Identity theft is America's fastest-growing crime.Identity theft is America's fastest-growing crime.
Last year alone, more than 9.9 million Americans Last year alone, more than 9.9 million Americans were victims of identity theft, a crime that cost were victims of identity theft, a crime that cost them roughly $5 billion.them roughly $5 billion.
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IDENTITY THEFT STATS
Nearly 30 million victims in last 3 yearsNearly 30 million victims in last 3 years
Most victims do not learn about the theft of Most victims do not learn about the theft of their identity until 14 months after it has their identity until 14 months after it has occurred.occurred.
Victims will spend about 30-175 hours Victims will spend about 30-175 hours cleaning up their personal and credit records.cleaning up their personal and credit records.
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How & Where is Victims Personal Identifying Information Stolen ?
Mail theftMail theft Trash theftTrash theft Personal theftPersonal theft Credit bureausCredit bureaus Automobile dealersAutomobile dealers
Hospitals/health careHospitals/health care EmploymentEmployment Hotels/Travel/SkimmingHotels/Travel/Skimming InternetInternet Anywhere!Anywhere!
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Identity TheftIdentity Theft
Mail Theft?Mail Theft?
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Don’t do this!Don’t do this! Mail TheftMail Theft
““Steal me” flag! Steal me” flag!
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Volume Attack
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Arrow Key
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Seized Counterfeit Arrow Keys
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Identity Theft
The FTC reported that only four percent of The FTC reported that only four percent of victims cited stolen mail as the source of victims cited stolen mail as the source of personal information.personal information.
BUT……BUT……
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Identity Theft
What is the common What is the common link in most Identity link in most Identity Theft cases?Theft cases?
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THE ADDRESS!
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Who Is Stealing Information?Who Is Stealing Information?
Collusive MerchantsCollusive Merchants
Custodians & CleanersCustodians & Cleaners
Bank EmployeesBank Employees
Hotel EmployeesHotel Employees
Postal EmployeesPostal Employees
Travel AgentsTravel Agents
Airline/Ground Support WorkersAirline/Ground Support Workers
Organized GroupsOrganized Groups- Russian - Gay Fraud Gangs- Russian - Gay Fraud Gangs- West Africans - Tweekers - West Africans - Tweekers - Mexican Gangs - Filipino Gangs- Mexican Gangs - Filipino Gangs- Chinese Gangs- Chinese Gangs
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What Are They Looking For? Credit Cards Credit Cards
Checks (including cancelled checks)Checks (including cancelled checks)
Pre-approved Credit Card ApplicationsPre-approved Credit Card Applications
Convenience ChecksConvenience Checks
Credit Bureau PrintoutsCredit Bureau Printouts
Bank StatementsBank Statements
Credit Card StatementsCredit Card Statements
Employee and Customer Records Employee and Customer Records
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Identity Theft ““Pre-Approved Application"Pre-Approved Application"
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Identity Theft““Pre-Approved Application”Pre-Approved Application”
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Identity Theft
“Convenience Check”
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Check Washing and CounterfeitingA few chemicals used to remove A few chemicals used to remove ink from stolen checks:ink from stolen checks:
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Identity Theft
Who?Postal EmployeeWoodmere, NY
• Incoming Credit Cards not received• Postal Inspectors observe clerk “Veronica” stealing• “Veronica” admits to stealing 60-65 credit cards• Sold credit cards to brother “Eddie” for $100 each• “Eddie” admits to receiving stolen credit cards and re-selling the credit cards to a “Nigerian National” for $200 each
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Who?Government Employees
Federal TimesFebruary 28, 2000
Identity Theft
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Who?Airline/Ground SupportAirline/Ground Support
BWI Airport / Baltimore, MDBWI Airport / Baltimore, MD
• Contract Employee of Worldwide Flight ServicesContract Employee of Worldwide Flight Services• Stealing US Mail from contract airlinesStealing US Mail from contract airlines• A search warrant was executed by Postal Inspectors at his A search warrant was executed by Postal Inspectors at his residence located in Baltimore, MD.residence located in Baltimore, MD.• Arrested on Federal chargesArrested on Federal charges
Identity Theft
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ID Theft Categories
ASSUMED IDENTITIES ASSUMED IDENTITIES
ACCOUNT TAKEOVERSACCOUNT TAKEOVERS
FRAUDULENT CREDIT FRAUDULENT CREDIT APPLICATIONSAPPLICATIONS
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ASSUMED IDENTITY
A victims personal identifying information used to A victims personal identifying information used to assume a new identity by:assume a new identity by:
FugitivesFugitives
Illegal AliensIllegal Aliens
TerroristsTerrorists
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ACCOUNT TAKEOVERS
Obtain the Personal Information of a True Person Obtain the Personal Information of a True Person and their Credit / Bank Account Informationand their Credit / Bank Account Information
Change Address on the AccountChange Address on the Account Send letterSend letter TelephoneTelephone FaxFax
Receipt of Card, Fraud charges begin Receipt of Card, Fraud charges begin
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CHANGE OF ADDRESS FORM
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False Change Of Address Filed
The majority of false COA occur through The majority of false COA occur through Financial Institutions and not through the Financial Institutions and not through the Post OfficePost Office
Why?Why?
Victim is alerted on non-receipt of mailVictim is alerted on non-receipt of mail
The U S Postal Service’s The U S Postal Service’s Move Validation Move Validation ProgramProgram
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FRAUDULENT APPLICATIONS
Personal identifying information of a true Personal identifying information of a true person used to open a new accountsperson used to open a new accounts MailMail FaxFax TelephoneTelephone InternetInternet Instant CreditInstant Credit
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To the victims residenceTo the victims residence
Commercial Mail Receiving Agency (CMRA) Commercial Mail Receiving Agency (CMRA)
( UPS SORE, Ma & Pa Stores, etc )( UPS SORE, Ma & Pa Stores, etc )
Pay friends, relatives, drug addicts, etc to receive mail Pay friends, relatives, drug addicts, etc to receive mail at their addressat their address
P.O. Box opened under fictitious nameP.O. Box opened under fictitious name
Vacant house or apartmentVacant house or apartment
Rent house or apartment in the victims nameRent house or apartment in the victims name
Where are the credit cards & checks mailed to ?
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CMRA’sCMRA’s Box rented in fictitious name and/or name of victim using false Box rented in fictitious name and/or name of victim using false
identification identification
At one time, address appeared as residence or business At one time, address appeared as residence or business (Apartment # or suite # used instead of box #)(Apartment # or suite # used instead of box #)
Minimal contact with employees (24 hour access)Minimal contact with employees (24 hour access)
Mail forwarding serviceMail forwarding service
Fraudulent Addresses
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Cash Advances Test card at gas station with Test card at gas station with
small chargesmall charge
Runners may be used to Runners may be used to make withdrawalsmake withdrawals
Large advances obtained Large advances obtained same day or within a few same day or within a few daysdays
Advances obtained at Advances obtained at different banks using same different banks using same cardcard
Maximum withdrawal per Maximum withdrawal per dayday
One bank may be used for One bank may be used for several different cards within several different cards within a short period of timea short period of time
Exhaust credit limit as Exhaust credit limit as quickly as possiblequickly as possible
Bribery of bank employees Bribery of bank employees to process cash advancesto process cash advances
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Identity Theft / Debit Card Open Fraud Checking/Investment Account in Victim’s Open Fraud Checking/Investment Account in Victim’s
NameName
Minimum Deposit - Cash ($100)Minimum Deposit - Cash ($100)
Deposit Stolen Business Checks, Credit Card Deposit Stolen Business Checks, Credit Card Convenience Checks and Counterfeit ChecksConvenience Checks and Counterfeit Checks
Obtain Debit CardObtain Debit Card
Purchase Postal Money OrdersPurchase Postal Money Orders
ATM Cash WithdrawalsATM Cash Withdrawals
Merchandise PurchasesMerchandise Purchases
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Identity Theft
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Personal Information is Everywhere!
• SSN often used as identifier for patients on wrist band or SSN often used as identifier for patients on wrist band or medical charts which may be viewed by many.medical charts which may be viewed by many.
• Standard practice to use your SSN as an ID number for Standard practice to use your SSN as an ID number for health benefits and insurance services. Insurance providers health benefits and insurance services. Insurance providers are slowly switching to a randomly generated number.are slowly switching to a randomly generated number.
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UNKNOWN EMAILS
• Also known as “SPAM” Also known as “SPAM”
• Could launch hackers software Could launch hackers software
• Could cause victim to respond to fraud scheme (i.e. Could cause victim to respond to fraud scheme (i.e. “Phishing”) “Phishing”)
• Could cause victim to give up personal info when Could cause victim to give up personal info when making a “purchase” making a “purchase”
• Best practice is to delete unknown or suspicious Best practice is to delete unknown or suspicious looking emailslooking emails
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“ PHISHING ”
• The theft of personal information using The theft of personal information using legitimate looking emails legitimate looking emails
• An estimated 75 – 150 million phishing An estimated 75 – 150 million phishing e-mails are sent e-mails are sent EVERY DAY! EVERY DAY!
• Losses total more than $1 billion dollars Losses total more than $1 billion dollars a yeara year
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UNKNOWN EMAILS PHISHING
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PHISHING
Fake eBay siteFake eBay site
Real eBay siteReal eBay site
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AUCTION / CLASSIFIED SCAMS
• Victim is legitimately selling an item on the Victim is legitimately selling an item on the internet or through the newspaper and is internet or through the newspaper and is contacted by a potential “buyer” contacted by a potential “buyer”
• Buyer agrees to send check, which is for more Buyer agrees to send check, which is for more than what the victim is asking than what the victim is asking
• Buyer asks victim to deposit check, and wire Buyer asks victim to deposit check, and wire the difference back to the buyer via Western the difference back to the buyer via Western Union Union
• Check ends up being counterfeit Check ends up being counterfeit
• Buyer never had any intention to purchase itemBuyer never had any intention to purchase item
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SKIMMING
• Suspect uses a “wedge” to store Suspect uses a “wedge” to store information contained on credit information contained on credit card strip Downloads info later card strip Downloads info later to computer to computer
• Uses info to create counterfeit Uses info to create counterfeit
cards with your informationcards with your information
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ATM
False front is attached to False front is attached to ATM with additional ATM with additional card reader to copy card reader to copy magnetic strip info on magnetic strip info on
your cardyour card
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ATM Look at the pamphlet holder on the leftLook at the pamphlet holder on the left
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ATM
Note the hole in the sideNote the hole in the side
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ATM
Camera /transmitter housed insideCamera /transmitter housed inside
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ATMATM
Camera can view keypad, Camera can view keypad, monitor and send wireless monitor and send wireless picture up to about 500 ft. picture up to about 500 ft.
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“ TOOLS OF THE TRADE ”
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CRIMES THAT CAN BE COMMITTED WITH YOUR IDENTITY
• Credit card and bank account takeovers Credit card and bank account takeovers
• Open fraudulent bank accounts Open fraudulent bank accounts
• Purchase or lease automobiles Purchase or lease automobiles
• Apply for fraudulent credit cards Apply for fraudulent credit cards
• Apply for fraudulent loans Apply for fraudulent loans
• Defrauding utility companies Defrauding utility companies
• Renting apartments / storage facilitiesRenting apartments / storage facilities
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PREVENTING IDENTITY THEFT
• Promptly remove mail from mailbox and Promptly remove mail from mailbox and deposit mail in U.S. Postal receptacles deposit mail in U.S. Postal receptacles
• Empty your purse/wallet of extra credit or ID Empty your purse/wallet of extra credit or ID cards including your social security card cards including your social security card
• Memorize your PIN numbers Memorize your PIN numbers
• Never give out personal information over the Never give out personal information over the phone phone
• Shred pre-approved credit applications, bills Shred pre-approved credit applications, bills and other financial information when and other financial information when discardingdiscarding
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WHAT YOU CAN DO
DETERDETER
Deter identity thieves by protecting your informationDeter identity thieves by protecting your information
DETECTDETECT
Detect suspicious activity by monitoring your financial Detect suspicious activity by monitoring your financial accounts and billing statementsaccounts and billing statements
DEFENDDEFEND
Defend against identity theft as soon as you suspect a Defend against identity theft as soon as you suspect a problemproblem
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WHAT YOU CAN DO
DETERDETER
Shred financial documentsShred financial documents
Protect SS #Protect SS #
Don’t give out personal information unless you know Don’t give out personal information unless you know who you’re dealing withwho you’re dealing with
Don’t use obvious passwordsDon’t use obvious passwords
Keep your information secureKeep your information secure
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WHAT YOU CAN DO
DETECTDETECT
Be alert – look out for mail/bills that don’t arriveBe alert – look out for mail/bills that don’t arrive
Denial of credit for no apparent reasonDenial of credit for no apparent reason
Inspect you credit report – law entitles you to one free Inspect you credit report – law entitles you to one free report a year. Request online at report a year. Request online at www.AnnualCreditReport.comwww.AnnualCreditReport.com
Review your financial statementsReview your financial statements
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WHAT YOU CAN DODEFENDDEFEND
Place a “fraud alert” on your credit reports by calling Place a “fraud alert” on your credit reports by calling any of the three nationwide credit reporting companiesany of the three nationwide credit reporting companies
Close and dispute accounts that have been tampered Close and dispute accounts that have been tampered with or opened fraudulentlywith or opened fraudulently
File a police reportFile a police report
Contact the Federal Trade CommissionContact the Federal Trade Commission
Order a copy of your credit report and reviewOrder a copy of your credit report and review
Alert your banks to flag your accounts and confirm any Alert your banks to flag your accounts and confirm any unusual activityunusual activity
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IMPORTANT FRAUD CONTACTS
Equifax………………1-800-525-6285 Equifax………………1-800-525-6285
Experian…………….1-888-397-3742 Experian…………….1-888-397-3742
Transunion………….1-800-680-7289 Transunion………….1-800-680-7289
FTC………………….1-877-FTC-HELP FTC………………….1-877-FTC-HELP
www.ftc.gov www.ftc.gov
For victims of fraud on the InternetFor victims of fraud on the Internet
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United States Code, Title 18; Section 1028
Fraud and related activity in connection with identification documents and Fraud and related activity in connection with identification documents and information information
Production of an ID without lawful authority Production of an ID without lawful authority
Transferring a stolen or produced ID Transferring a stolen or produced ID
Possessing document making implements Possessing document making implements
Using an ID to aid or abet any unlawful activity Using an ID to aid or abet any unlawful activity
ID Theft Assumption & Deterrence Act (1998) ID Theft Assumption & Deterrence Act (1998)
Amends 1028 making ID theft a federal offense Amends 1028 making ID theft a federal offense
Established victim as person whose identity was stolen and not credit Established victim as person whose identity was stolen and not credit grantors who suffered losesgrantors who suffered loses
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FY 2007 Criminal Stats Mail Theft 3,608 Miscellaneous Crime 465
(includes counterfeit and contraband postage, vandalism, arson, and U.S. Postal Service money orders)
Identity Theft 2,071 Hazardous and Hoax Substances 17
(includes biological, chemical, nuclear, and radiological threats) Bombs, Threats, Hoaxes, and Explosive Devices and Materials 72 Firearms, Weapons, Intoxicants, Extortion, and False Documents 57 Assaults and Threats 333
(includes threats and assaults against on-duty postal employees) Robbery 63 Burglary 130 Mailing of Controlled Substances 860
(includes narcotics, steroids, drug-related proceeds, and drug paraphernalia) Mail Fraud 1,236 Child Exploitation, Mailing of Obscene Matter, and Sexually Oriented
Advertisements 155 Revenue Investigations 79 TOTAL 9,146
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THE ENDTHE END
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QUESTIONS??
Ron Jones
U.S. Postal Inspector / Team Leader
Chattanooga / Knoxville
8880 Cedar Springs Lane, Suite 102
Knoxville, TN 37923
865-690-7919