Top PDF The Cases For and Against Financial Fraud - Identity Theft

The Cases For and Against Financial Fraud - Identity Theft

The Cases For and Against Financial Fraud - Identity Theft

The bust out and disappearance of the account holder complicate detecting fictitious identity fraud. From the lender’s perspective, the evidence includes (1) the account has gone delinquent and (2) collection teams have been unable to contact the account holder. On one hand, the account could have been legitimate, but for one of several reasons, such as a change in employment status, the account holder has decided to not repay the loan and to avoid collection- related efforts. Alternatively, the account may have been opened using a fabricated identity, and therefore, the account holder’s disappearance may be an incidence of fraud. In either case, the lender’s inability to contact the account holder undermines efforts to determine which situation the lender is dealing with. This same uncertainty hinders efforts to quantify financial losses resulting directly from fictitious identity fraud, and generally, without a clear indication of fraud, related charge-offs will be characterized as loan losses. One firm that offers identity-theft- detection solutions, ID Analytics, suggests that this form of identity theft accounts for “88.3 percent of all identity fraud events and 73.8 percent of the total dollars lost by U.S. businesses.” 10 While a number of observers have argued that these estimates are overstated little published information, other than that from ID Analytics, is available to quantify the total dollar losses or incidence of fictitious identity fraud.
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Check Fraud, Identity Theft and Embezzlement

Check Fraud, Identity Theft and Embezzlement

R EAD B ANK C ONTRACTS Carefully read your bank contracts to understand your company's liability for fraud losses under the revised Uniform Commercial Code. This specifically includes the small print on signature cards and disclosure statements. It is abundantly clear from recent court cases involving fraudulent checks that a bank’s intentions must be stated clearly and without ambiguity in order to win a check fraud case against a customer. Accordingly, banks are rewriting their signature card agreements and are including new provisions and requirements in their disclosure statements. For a summary of the changes in the UCC, please visit www.FraudTips.net.
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Identity Theft Mitigation in Kenyan Financial Sectors (SACCOs): Handwritten Signature Verification

Identity Theft Mitigation in Kenyan Financial Sectors (SACCOs): Handwritten Signature Verification

The general objective of this project was to analyse features on a signature that are imprinted on loan forms by the guarantors and propose an algorithm and develop a prototype that will enable the verification of this signatures and thus enhance efficiency in the handling of the identity theft cases. The algorithm proposed used the Euler number as the mode of attaining the keypoints from the 2d image of the signature that are retrieved from the database and scanned from the forms. The evaluation of the identity tactics and establishment of red flags was conducted through the filling of questionnaires and this helped in actualising the projects necessity. From the project Signature verification with the application of the algorithm was termed more accurate and timely unlike when conducted by a human expert as shown in the results above. The human expert eye will seek to outline the most visible set of strokes that may seem to look similar in one way or the other while for the system it looks at wholes found in the image pixels and use this to determine the signatures validity. Due to the pressure one uses to imprint their signature on a paper the ink placement largely varies.
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Identity Theft and Systems Theory: The Fraud Act 2006 in Perspective

Identity Theft and Systems Theory: The Fraud Act 2006 in Perspective

It is of course true that we are dealing with data – notwithstanding the medium, we are still faced with a long-standing societal problem of deviants in society threatening value. Like Murray, the extract above does not assist us in any meaningful way other than to remind us that the end-to-end architecture embeds the norm of legitimacy in all communications. Instead of focussing on data or the organic regulatory model, let us remind ourselves of the scale of the threat landscape. CIFAS, the United Kingdom’s Fraud Prevention Service has remarked on the rise in cases of most types of financial fraud during the first half of 2007, when compared with the same period in 2006. 36 During the first six months of 2006, Symantec reported an 86 per cent increase in phishing messages per day. 37 The large numbers of phishing activities were directed at the financial services and banking sectors. For example, the banking industry estimated that phishing frauds cost the industry £22 million in the first half of 2006. 38 A British man was recently sentenced for four years for operating an eBay Internet auction scam. He accessed account details from users and assumed their online identities to perpetrate these scams. 39 The Select Committee has commented on the ease with which criminals are now imposing negative externalities on society generally. 40 These examples illustrate the scale and reach of the evolving threats posed by identity thieves. More importantly, for present purposes, rather than focus on ‘data’ or the constitutional aspects of content filtering, we could direct our efforts instead on how sub-systems in society view risk and assess their relevance for information security governance.
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On the other hand, plastic card fraud is defined as using plastic payment cards, such as ATM, debit, credit or store cards to withdraw money without permission or prior knowledge from a financial institution (NSW Justice, 2011). Plastic card fraud frequently happens via the illegitimate gaining and/or use of card information and the personal identification number (NSW Justice, 2011). In most cases cards used to commit fraud are usually lost or stolen cards which could be used intact or changed by re-embossing and re-encoding, or forged cards that are completely new (Smith & Grabosky, 1998). To counterfeit a card it is essential to know the details of an existing legitimate cardholder consequently the craving of reprobate to acquire rightful plastic card details from other sources such as the internet (Smith & Grabosky, 1998). Occasionally information on the card's magnetic strip is obtained through "card skimming". This is when a genuine card is obtained for a few seconds to facilitate it to be passed over a magnetic tape reader so that a phoney copy may be made (Smith & Grabosky, 1998). Another technique is "buffering", which entails transforming the information kept in the magnetic strip of the card or gaining security codes electronically (Smith & Grabosky, 1998). Nonetheless, according to Pudaruth, Juwaheer & Madoo (2013) in their analysis they revealed that customers have acknowledged plastic cards as a helpful means of effecting payments since plastic cards proffers worldwide acceptance. Even though plastic cards are valuable, Sakharova & Khan (2011) found that payment card fraud is causing billions of dollars in losses for the card payment industry and the brand name can be affected by loss of consumer buoyancy due to the fraud. This requires the supply of awareness information as Vincent (2005) concluded that provision of information about credit card functioning in India and payment settlement is a good thing to both the merchants and customers. In the same vein Kaseke (2012) found that individual factors such as education level had a bearing on the use of plastic money. In support to that Archer (2012) implicated that consumer education on identity theft fraud leads to pressure that consumers need to utilize all behaviours that can reduce risk and loss.
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A Holistic View of Identity Theft Tax Refund Fraud

A Holistic View of Identity Theft Tax Refund Fraud

systems were running congruently, the system was known as the Dependent Database due to the fact that it would take time for the RRP to handle the full load of returns. The major benefit of the RRP is that in addition to the filters that were used in previous systems that relied on binary analysis, the RRP’s filters consisted of both rules and models. Additionally, the system is much more flexible and fluid as it is much easier to make amendments to than the EFDS. Its efficacy was seen in the first year as its false detection rate (FDR), or in other words the percent of legitimate returns it flagged as fraudulent was only 37.9% in comparison to the EFDS’ FDR of 54.5% (NTA, 2016). This year the IRS also consolidated their IDT victim assistance functions into the Wage and Investment division, doing away with the 21 specialized units that was established in 2012 in response to the Tax Refund Prevention Act of 2014, which was proposed by Senator Hatch from Utah, a longtime proponent of prevention (NTA, 2014). A major benefit of this would be that a victim of the fraud would now have all their communications with the IRS be through a single point of contact, instead of having to deal with numerous employees across different departments. There would still be some cases that would require special attention, but the majority of standard cases would now be streamlined, which the NTA advocated for in many prior years (2016). It was also reported that in this year they had increased the number of
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Fraud and Identity Theft Concerns with Vermont s Certified Copies of Birth and Death Certificates

Fraud and Identity Theft Concerns with Vermont s Certified Copies of Birth and Death Certificates

There are two jurisdictions – New Jersey and Puerto Rico – that serve as principle examples of how significant a problem identity theft becomes in a state with open access to birth and death certificates. New Jersey had significant problems for many years and their staff were overwhelmed with fraud investigations. For example, their staff was handling a dozen faxes each week to verify or investigate fraudulent use of NJ certificates in Guatemala. This was approximately 50 cases per month (600+ per year) from just one country.

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Identity Theft and Fraud

Identity Theft and Fraud

The Federal Trade Commission (FTC) is the federal clearinghouse for complaints by victims of identity theft. Although the FTC does not prosecute criminal cases, it helps victims of identity theft by providing them with information to help resolve the financial and other problems that can result from identity theft. The FTC may refer victim complaints to other appropriate government agencies or private organizations for assistance.

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Nature of the Cyber Crime Activities among the Secondary Student in Dhaka City of Bangladesh: A Baseline Study

Nature of the Cyber Crime Activities among the Secondary Student in Dhaka City of Bangladesh: A Baseline Study

Cyber crime is a concerning issue and threat for the information and communication technology (ICT) sector of Bangladesh. Significant numbers of Dhaka city dwellers mostly secondary level (13 to 19 years old) students are doing this unlawful crime consciously or unconsciously. Here, computer is used either as a tool or target or both. There is apparently no distinction between cyber and conventional crime. The differentiation lies in the involvement of the medium in cases of cyber crime. But the identification of crime and implementation of law both are new in our society. It indicates the frequent incidence of cyber crime among the secondary school students of Dhaka city. Hacking, credit card fraud, software piracy, cyber identity theft, cloning of website/phishing, pornography, cyber defamation, virus dissemination and cyber stalking are the common cyber crime in Dhaka City.
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The Fraud Bulletin. Volume 11. Mobile Banking Fraud Cyber Crime Embezzlement Identity Theft Check Fraud Holder In Due Course.

The Fraud Bulletin. Volume 11. Mobile Banking Fraud Cyber Crime Embezzlement Identity Theft Check Fraud Holder In Due Course.

One of the most effective check fraud prevention tool is Positive Pay, an automated check-matching service that is unparalleled in detecting most bogus checks. It is offered through the Cash Management Department of many banks. To use this service, the check issuer transmits to the bank an electronic file containing information about the checks it has issued. Positive Pay compares the account number, the check number, dollar amount and sometimes payee name on checks presented for payment against the previously submitted list of checks issued and authorized by the company. All the components of the check must match exactly or it becomes an “exception item.” The bank provides the customer with an image of the check to determine each exception item’s authenticity. If
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Review of Proficient Approaches for Determining Identity Frauds and New Data Mining Based Method Under Investigation

Review of Proficient Approaches for Determining Identity Frauds and New Data Mining Based Method Under Investigation

Genetic algorithms: In [2], For predictive purposes, genetic algorithms are often acclaimed as a means of detecting fraud. In order to establish logic rules which is capable of classifying credit card transactions into suspicious and non- suspicious classes, genetic algorithm has been suggested that is based on genetic programming. However, this method follows the scoring process. In the experiment as described in their study, the database was made of 4,000 transactions along with 62 fields. As for the similarity, tree, training and testing samples were employed. For this purpose, different types of rules were tested with the different fields. The best rule among these is with the highest predictability. Their method has proven results for real home insurance data and could be one best method against credit card fraud. Chan et al. (1999) has developed an algorithm for prediction of suspect behaviour. Origin of their research is that cost model evaluated and rated b whereas other studies use evaluation based on their prediction rate/the True Positive Rate (TPR) and the error rate/the False NegativE Rate (FNR). Wheeler & Aitken (2000) formed the idea of combining different algorithms to maximize the power of prediction. Article by, Wheeler & Aitken, presents different algorithms: diagnostic algorithms, diagnostic resolution strategies, best match algorithms, density selection algorithms, probabilistic curve algorithms and negative selection algorithms. As a conclusion from their investigation that probabilistic algorithms and neighbourhood-based algorithms have been taken to be appropriate techniques for classification, and further it may be improved using additional diagnostic algorithms for decision-making in borderlines cases as well as for calculation of confidence measures and relative risk measures.
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IDENTITY THEFT: THE TAX AND FINANCIAL IMPLICATIONS

IDENTITY THEFT: THE TAX AND FINANCIAL IMPLICATIONS

You can obtain valuable information for your case by monitoring changes on your credit report. For example, after my identity was stolen and my credit had a fraud alert issued, the perpetrator did not give up easily. The perpetrator kept trying to open accounts and file tax returns even after the alert was issued. One daily alert indicated that a particular bank had viewed my credit. I called the bank and asked why they were looking at my credit. They notified me that they did the financing for a motorcycle shop that I had bought a motorcycle from the day before. I called the shop and explained the situation to the manager. I was able to get a description of the impostor, the ID that she used, as well as exactly what information she knew about me, such as employment. Had I waited, I may not have received such clear information from him. Note that even though I had a fraud alert on my account, the perpetrator still walked away with a motorcycle while the loan was being processed. The shop had poor internal controls in place and learned a valuable lesson.
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Security Summit. Protecting Taxpayers from Identity Theft Tax Refund Fraud

Security Summit. Protecting Taxpayers from Identity Theft Tax Refund Fraud

In recognition of escalating challenges and the need to act quickly to prepare for the next tax filing season, IRS Commissioner John Koskinen called on leaders in the public and private sectors to come together and work collaboratively to protect taxpayers from IDT refund fraud. On March 19, Commissioner Koskinen convened an unprecedented Security Summit meeting in Washington, D.C. with IRS officials, the chief executive officers (CEOs) of the leading tax preparation firms, software developers, payroll and tax financial product processors, and state tax administrators to discuss common challenges and ways to leverage our collective
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Online Fraud and Identity Theft Guide. A Guide to Protecting Your Identity and Accounts

Online Fraud and Identity Theft Guide. A Guide to Protecting Your Identity and Accounts

Identity theft is a serious crime that occurs when someone illegally obtains and uses personal information for their own gain. Your name, address, date of birth, Social Security number, Online Banking passwords and personal identification numbers (PINs), and credit and check card numbers are keys to your financial information. When scammers obtain this information they can charge expenses to your accounts, create new accounts in your name, or use your personal information for other illegal purposes.

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Protect Yourself Against Identity Theft

Protect Yourself Against Identity Theft

Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don't allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately.

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BIOMETRICS WILL IT CHANGE THE WAY YOU WORK?

BIOMETRICS WILL IT CHANGE THE WAY YOU WORK?

At the same time, consumer electronics has also emerged as one of the most exciting frontiers of biometric advance . As the functionality of personal technology expands, so does the need to secure the devices and protect users against fraud and identity theft . Samsung’s Galaxy Nexus phone already incorporates a facial recognition function, while in September, Intel prototyped a tablet that interfaces with all of a user’s passwords and log-ins via a scan of the palm . In July, tech-giant Apple paid US$356 million for AuthenTec, whose fingerprint sensors are used in phones and buildings . Last year, Apple even registered a patent for their own facial recognition technology .
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The FRAUD Bulletin. Volume 12. ACH Fraud Mobile Fraud Corporate Identity Theft Small Business Fraud Check Fraud Scams Cyber Crime.

The FRAUD Bulletin. Volume 12. ACH Fraud Mobile Fraud Corporate Identity Theft Small Business Fraud Check Fraud Scams Cyber Crime.

Frank W. Abagnale is one of the world’s most respected authorities on the subjects of forgery, embezzlement and secure documents. For over 35 years he has lectured to and consulted with hundreds of financial institutions, corporations and government agencies around the world. Mr. Abagnale has been associated with the Federal Bureau of Investigation for over 30 years. He lectures extensively at the FBI Academy and for the field offices of the FBI. More than 14,000 financial institutions, corporations and law enforcement agencies use his fraud prevention materials. In 1998, he was selected as a distinguished member of “Pinnacle 400” by CNN Financial News. He is also the author and subject of Catch Me If You Can, a Steven Spielberg movie that starred Tom Hanks and Leonardo DiCaprio.
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When Identity Crime Strikes You

When Identity Crime Strikes You

Remember, you are not responsible for any bill, portion of a bill, or checks written or cashed which result from identity theft. Your credit rating should not be permanently affected, and no legal action should be taken against you. If any merchant, financial institution or collection agency suggests otherwise, simply restate your willingness to cooperate, but don’t allow yourself to be coerced into paying a fraudulent debt. Many victims of identity theft report feeling angry, frustrated, powerless, and even violated. If these feelings persist or become overwhelming, talk to your friends, family members, or a counselor.
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Official Urges Protection Against Identity Theft. Defense Department officials are urging service members to be aware of identity theft

Official Urges Protection Against Identity Theft. Defense Department officials are urging service members to be aware of identity theft

Active-duty alerts can be activated by calling the toll-free fraud telephone number for one of the three nationwide consumer reporting companies. That company is required to notify the other two companies that a service member has activated a duty alert. Another option service members can use to protect themselves is putting a “freeze” on their credit report to restrict access to it. Once a freeze is in place, potential creditors and other third parties will not be able to get access to a credit report unless the freeze is lifted.

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Meeting Identity Theft Red Flags Regulations with IBM Fraud, Risk & Compliance Solutions

Meeting Identity Theft Red Flags Regulations with IBM Fraud, Risk & Compliance Solutions

Red flag 26. The financial institution or creditor is notified by a customer, a victim of identity theft, a law enforce- ment authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft. Quickly determine if any information used in the fraudulent account (address, phone number, date of birth, SSN, etc.) has been used (either exactly or modified lightly) in found in any other accounts or applications.

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