IDENTITY THEFT
& SCAMS
Detective J. Blackwell CFE
Montgomery County Sheriff’s Office
Criminal Investigations Division
936-788-8366
936-538-8102
IDENTITY THEFT
TARGETS
•
INDIVIDUALS
•
BUSINESSES
IDENTITY THEFT
OBJECTIVES FOR INDIVIDUAL TARGETS
WHAT ARE THEY AFTER?
• Name
• Date of Birth
• Credit / Debit Card Number
• CVC number
• Social Security Number
• Email Addresses / passwords
• Driver’s License Number
• Address
• Phone Number
IDENTITY THEFT
OBJECTIVES FOR INDIVIDUAL TARGETS
WHAT ARE THEY GOING TO DO WITH IT?
• FINANCIAL - Accounts, loans, credit cards
• CONCEALMENT - Illegal aliens, criminals
• IDENTITY CLONING - Account takeover, establish new life
COLLECTION METHODOLOGY
OBJECTIVES FOR INDIVIDUAL TARGETS
HOW ARE THEY GOING TO ACQUIRE IT?
▼ Burglary / thefts (wallets, purses, phones, laptops) ▼ Inside conspirator – stealing, bribing
▼ Mail theft
▼ Dumpster diving ▼ Database searches ▼ Social Engineering
▼ Scams
▼ Phishing – ads, telemarketing ▼ Skimming / RFID
▼ Hacking
COLLECTION METHODOLOGY
SKIMMING
COLLECTION METHODOLOGY
RFID
PASSING METHODOLGY
• Counterfeit checks
• Retail merchandise
• Online merchandise – drop box or ghost address
• Sales of acquired property – online & street
• Western Union
• Gift Cards, Closed loop cards
• Account takeover
• Phone services and Utility theft
• Impersonation
• Education
• Medical Treatment
IDENTITY THEFT ENTERPRISES
Geography & Sophistication
• Street Criminals (local, low level)
• Organized Street Criminals (local/regional, mid-level)
• Organized Professional Criminals (Multijuridictional, high level)
– Collectors (Specialists, Hackers, Skimmers)
– Converters (Brokers)
IDENTITY THEFT ENTERPRISES
Local Level
•
Small Cell Structure
•
Inexperienced Amateur
– SPIDER•
Prior Criminal Exposure
IDENTITY THEFT ENTERPRISES
Local Level
• Spider – counterfeit check maker
IDENTITY THEFT ENTERPRISES
Local Level
• Casper – counterfeit check maker
IDENTITY THEFT ENTERPRISES
Organized Street Criminals (mid-level)
• Maricopa Co, Az
• Check Forgery ring
• Heirarchial structure • Collectors • Cashers • Meth connection • Aryan Brotherhood • 28 People charged • 15 cases closed
IDENTITY THEFT ENTERPRISES
IDENTITY THEFT ENTERPRISES
Organized Street Criminals (mid-level)
•
Felony Lane
•
Regional
•
Multiracial, nomadic, loose organization
•
Collectors – Vehicle Burglars
IDENTITY THEFT ENTERPRISES
Organized Street Criminals (mid-level)
•
Passers
•
Use drive through
•
Outside Lane
•
Exact same van
•
4 min apart
•
Cash Counterfeit
checks
IDENTITY THEFT ENTERPRISES
Organized Professional Criminals
• Actors are International and/or Interstate
• Organized and sophisticated criminal organizations • Collectors (Specialists, Hackers, Skimmers)
Steal – millions of items of information
Sell – the items to specific groups or individuals
• Converters (Information Brokers)
• Passers – No one steals your money to save it.
Fraud – IDs are used to commit crimes to obtain money, services, and/or property
IDENTITY THEFT ENTERPRISES
Organized Professional Criminals
•
Montgomery Co resident’s account number
used to “pay” resident in Ohio
•
Ohio resident responded to internet
advertisement. He set up account to be a US
Clearing house to avoid taxes. Collected a
10% fee
•
Ottobuck – thought it was going to UK but
Russian IP address
COLLECTION METHODOLOGY
OBJECTIVES FOR INDIVIDUAL TARGETS
HOW ARE THEY GOING TO ACQUIRE IT?
▼ Burglary / thefts ▼ Inside conspirator ▼ Mail theft ▼ Dumpster diving ▼ Database searches ▼ Social Engineering ▼ Scams ▼ Phishing ▼ Skimming / RFID ▼ Hacking ▼ Malware, Botnets
SCAMS
SCAMS
•
The Artist
– well versed, experienced, intelligent, suave, smooth, professional, personable, convincing
•
The Documents, emails, ads, sites
– May be very professional, indistinguishable
– May be laughable
SCAMS
• 419-Nigerian-Advanced Fee
• CVC Number
• Lottery
• Work at Home / Job Offers – secret shopper
• Jail / bail – relative in jail now, past behavior we make warrant go away
• Internet purchases – soldier vehicle
• School Loans
• Fraudulent tax returns
SCAMS
SCAMS
The 419, Nigerian, Advanced Fee Scam
• The email or letter asking for help
• Keep part of the money for assistance
• Provide me with your information
• Sending you a check, deposit it. Call me as soon as you deposit it!
• 3 to 5 day threshold
• Need money back soon or forward to another associate
• Western Union, Money Gram, Green Dot Card
• Processing fee, taxes, bribes, legal processing fees
SCAMS
SCAMS
cvc -
Card Validation Code Number• Caller from Fraud Dept of Mastercard/Visa
• Unusual activity on your card – did you spend $ on X?
• We’ll send you new card, gives you your card number, confirms the number is right
• Well start investigation, gives you number
• I need to verify you possess your card, read me the 3 digit number on back.
MASTERCARD – card validation code ("CVC2") VISA – card verification value ("CVV2")
DISCOVER – card identification number ("CID") AMERICAN EXPRESS – "CID" or "unique card code" DEBIT CARD – "CSC" or "card security code"
SCAMS
Lottery
• Primary Target - elderly
• Notified you have won a lottery. Phone, Email and / or mail
• Receipt of “Official” notice, documents and certificates
• Phone calls - 876 area code - Jamaica
• You never entered the lottery
• Arrange for transfer of your winnings
SCAMS
Lottery
• Processing Office fee
• Banker’s fee
• Lawyer’s fee
• Local & National Taxes
• Law Enforcement
• Transit fees
• Burser’s certification charge
• Rental of secure storage
• Security guard charges
• Shipping
• FBI - backing out warrants a call from the “FBI” assigned to the transfer.
SCAMS
Work At Home / Secret Shopper
• Work on behalf of a variety of retailers and
manufacturers of consumer products who are
interested in knowing more about how products are displayed and marketed in stores and how customers are treated in such establishments
• Advance packet
– List of consumables you buy with the enclosed check.
– Fill out the questionnaire send back to us.
– Please return any unused funds to our corporate office, via Western Union, Money Gram, or Green Dot.
SCAMS
JAIL / BAIL
• “Official” from The Embassy in Mexico notifies you a relative has run afoul of the law while in country.
SCAMS
JAIL / BAIL
•
Official requests you send bail money.
Provides location for you wire money
•
Variations – Passport office, Hospital
•
Inability to speak with loved one
•
Actor will have name of relative, may have
social engineered their location via Facebook
posts ect.
SCAMS
Internet Purchases
•
Deployed Soldier – must sell vehicle or other
big item, before being shipped out.
•
Send money now
•
Expedite by wire transfer, Western Union
•
Promises to send item, inspect before you pay
full price
•
Need to pay freight forwarding shipping
SCAMS
Internet Purchases
• Sends you VIN # of vehicle
SCAMS
School Loans
•
Account is debited for tuition
•
Money wired from your bank to School
•
Contact school – FERPA rules prohibit
release of information
•
Student “drops out” and has unused
monies returned to beneficiary at new
account number.
SCAMS
Fraudulent Tax Returns
•
Discover only after you file taxes
•
Another person used your SS#
•
IRS not forthcoming with information
•
File Fraud case with IRS
SCAMS
Online Relationship
•
Meet someone online
•
Form relationship (longer/closer the better)
•
Request to go off the dating site to talk or
SCAMS
Online Relationship
• Request for Money
– Personal Crisis
A sick relative in the hospital Medical expenses
Burial expenses Tuition
Money for computer use
– Travel expense (redeemable) to visit you
• Social Engineer You
– Gather your personal information
SCAMS
Online Relationship
• Requests for racy photographs – future extortion
WHEN YOU BECOME A VICTIM
•
RULE #1 Protect Yourself
–Contact Financial Institutions
–Contact Credit Bureaus – Credit Report, Fraud Alert, Freeze
•
Police Report
•
Start A File – keep records
WHEN YOU BECOME A VICTIM
CREDIT BUREAUS • Equifax 1-800-525-6285 www.equifax.com • Experian 1-888-397-3742 www.experian.com • TransUnion 1-800-680-7289 www.transunion.comWHEN YOU BECOME A VICTIM
FINANCIAL INSTITUTIONS
•
Change or Close Accounts
•
Change or Close Debit / Credit Cards
•
Fraud or Forgery Affidavit
•
Transaction Records from Account(s)
•
Check copies (front & back) or Originals
WHEN YOU BECOME A VICTIM
POLICE REPORT
• Have information at hand – transaction records, affidavits, information gathered
• Have You suffered a loss or has Card Co.
• Do you retain your checks / credit card
• Crimes committed Out of County – forward to other jurisdictions… no Hawaii trips
• Info preservation – case load determines when case gets worked
WHAT TO DO
MINIMIZE RISK
• Check / Reconcile Your Accounts Frequently
• Immediately Address Anomalies
• Protect your vehicle,computer, phone, home and mail – use, locks encryption, passwords, firewalls, antivirus software
• Secure and guard your personal information – do not advertise yourself
• Regular review of your Credit Report
• Review bills and notices but be alert for impersonators
• Independently verify BEFORE you give out information. Find contact number and call back. Make sure they are who they say they are.
WHAT TO DO
MINIMIZE RISK
• Inventory your accounts, cards, assets,
vulnerabilities (physically separate and secure).
• Limit what you broadcast on social media
• Change passwords frequently – strong alphanumeric
• Shred documents
• HTTPS sites for online shopping
• Consider getting a loadable card just for purchasing
WHAT NOT TO DO
• Aid the criminal - legitimate companies advertise but they Do Not solicit your personal information via Text, Phone or Email messages. Time sensitive offers are THE RED FLAG here!
• Do not respond to spam offers
• Do not click on links in emails
• Do not carry your social security number
• Do not carry your PIN number
• Do not have SS# or DL # printed on checks
• Do not receive bills / make payments from your home mailbox
