Post on 17-Dec-2015
Expecting the Expecting the Unexpected:Unexpected:
Important Identity Theft Important Identity Theft Factors for State and Local Factors for State and Local
Law EnforcementLaw Enforcement
Donald Rebovich, Ph.D.Donald Rebovich, Ph.D.Executive DirectorExecutive Director
Center for Identity Management Center for Identity Management and Information Protection,and Information Protection,
Utica CollegeUtica College2008 Economic Crime Institute 2008 Economic Crime Institute
ConferenceConferenceOctober 23, 2008October 23, 2008
Center For Identity Management Center For Identity Management And Information ProtectionAnd Information Protection
Research goals:Research goals: Trends, causes, early detection, and Trends, causes, early detection, and
prevention of identity fraud and theftprevention of identity fraud and theft Impact of policy decisions, legislation, and Impact of policy decisions, legislation, and
regulatory actionsregulatory actions Improved identity authentication systems Improved identity authentication systems
Center for Identity Management Center for Identity Management and Information Protectionand Information Protection
Recent Research Recent Research Bureau of Justice Assistance (BJA) – United Bureau of Justice Assistance (BJA) – United
States Secret Service StudyStates Secret Service Study
Quantitative and qualitative analysis of a Quantitative and qualitative analysis of a sample of closed Secret Service criminal sample of closed Secret Service criminal cases (2000-2006) to detect and cases (2000-2006) to detect and synthesize patterns as they relate to synthesize patterns as they relate to identity fraud and theft. identity fraud and theft.
Results released in October, 2007Results released in October, 2007
““Identity” – What is Identity” – What is
it?it?
• Do you “know” who your Do you “know” who your are?are?
• Do we “know” who you Do we “know” who you are? are?
• Do we sufficiently protect Do we sufficiently protect our identities?our identities?
• Have we become Have we become complacent about identity complacent about identity protection?protection?
• Do we play an indirect role Do we play an indirect role in “enabling” identity in “enabling” identity thieves?thieves?
IIdentity Theft – Who dentity Theft – Who
Protects Protects Us?Us?
• What role does the federal What role does the federal government play?government play?
• What role does local/state What role does local/state enforcement play? enforcement play?
• Is local/state enforcement Is local/state enforcement “sensitized” to identity theft “sensitized” to identity theft enforcement?enforcement?
• How does enforcement How does enforcement respond to identity theft “red respond to identity theft “red flags”flags”
U.S. Bureau of Justice Assistance U.S. Bureau of Justice Assistance Study:Study:
Patterns and Trends of Identity Patterns and Trends of Identity TheftTheft
The following research material is derived The following research material is derived from:from:
“ “Identity Fraud Trends and Patterns: Identity Fraud Trends and Patterns: Building a Data-Based Foundation for Building a Data-Based Foundation for Proactive Enforcement” by Gordon, Proactive Enforcement” by Gordon, Rebovich, Choo and Gordon. Economic Rebovich, Choo and Gordon. Economic Crime Institute Annual Conference, Crime Institute Annual Conference, (October 22, 2007).(October 22, 2007).
Report available at Report available at www.cimip.org
U.S. Bureau of Justice Assistance U.S. Bureau of Justice Assistance Study:Study:
Patterns and Trends of Identity Patterns and Trends of Identity TheftTheft
First empirical study of identity theft cases First empirical study of identity theft cases in U.S.in U.S.
517 U.S. Secret Service cases from 2000-517 U.S. Secret Service cases from 2000-20062006
Offender, offense and case process variablesOffender, offense and case process variables
Objective: Apply results to improve control Objective: Apply results to improve control effortsefforts
U.S. Bureau of Justice Assistance U.S. Bureau of Justice Assistance Study:Study:
Patterns and Trends of Identity Patterns and Trends of Identity TheftTheft
Released in October, 2007Released in October, 2007
Some results:Some results:
Most victims did not know the offendersMost victims did not know the offenders
1/3 of cases started at offender’s job1/3 of cases started at offender’s job
42% involved organizational crime42% involved organizational crime
Median loss was $31,356Median loss was $31,356
Local/State Police Referral CasesLocal/State Police Referral Cases
Close to half of the cases were referred from Close to half of the cases were referred from local and state law enforcement (246)local and state law enforcement (246)
Some results:Some results:
Similar to “Non-local” cases in most areasSimilar to “Non-local” cases in most areas
More outside of NortheastMore outside of Northeast
Greater percentage of two-person offender Greater percentage of two-person offender “teams”“teams”
Comparatively narrow range of lossesComparatively narrow range of losses
Local/State Police Referral CasesLocal/State Police Referral Cases
Some results:Some results:
Greater overlap with forgery and drug crimeGreater overlap with forgery and drug crime
Greater percentage of cases that originated Greater percentage of cases that originated with the investigation of cases outside of with the investigation of cases outside of the economic crime arena the economic crime arena
Average Loss Per CaseAverage Loss Per CaseThe median dollar loss among the local/state cases was $30,726. Dollar loss varied with the number of defendants in the case
Offenders Offenders Median LossMedian Loss
11 $22,344$22,344
22 $34,474$34,474
33 $18,000$18,000
44 $50,000$50,000
55 $77,503$77,503
6+6+ $76,000$76,000
Who Are The Offenders??Who Are The Offenders??
They are “criminal opportunists”They are “criminal opportunists”
They search for the They search for the easiesteasiest route to route to profitsprofits
They specialize their criminal They specialize their criminal servicesservices
They “adapt” well to control effortsThey “adapt” well to control efforts
They have They have all the time in the worldall the time in the world
The Offenders: Arrest The Offenders: Arrest HistoryHistory
30.7% -- no arrest history30.7% -- no arrest history
Of the arrests:Of the arrests: 26.6%: larceny or theft.26.6%: larceny or theft. 36.7%: fraud, forgery, or ID 36.7%: fraud, forgery, or ID
thefttheft
Situational
Patterns Of Identity TheftPatterns Of Identity Theft
Routine
Professional
Situational
Crimes of Opportunity
Patterns Of Identity TheftPatterns Of Identity Theft
Routine
Professional
The Role of “Insiders”The Role of “Insiders” Of the total 246 local/state cases, 65 Of the total 246 local/state cases, 65
involved offenders who accessed involved offenders who accessed personal identifying information at personal identifying information at their place of employment.their place of employment.
The employees victimized:The employees victimized: Retail – 27Retail – 27 Private Company – 17Private Company – 17 Bank/Credit Union – 7Bank/Credit Union – 7 Government Agency - 3Government Agency - 3 Education – 3Education – 3 Insurance – 3Insurance – 3 Unavailable – 5Unavailable – 5
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
IDENTITY THEFT RING DEVELOPMENT IDENTITY THEFT RING DEVELOPMENT
Information “Insider”
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
RECRUITMENT
RECRUITMENT
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
RECRUITMENT
RECRUITMENT
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
RECRUITMENT
RECRUITMENT
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
Theft Ring DirectorRECRUTIMENT
RECRUTIMENT
Demonstrationof Ease
(“Teasers”)
CriminalMentoring
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
Theft Ring Director
Testing the “System”
RECRUITMENT
RECRUITMENT
Demonstration of Ease
(“Teasers”)
CriminalMentoring
IDENTITY THEFT RING DEVELOPMENTIDENTITY THEFT RING DEVELOPMENT
Information “Insider”
Theft Ring Director
Testing the “System”
“Reaping the Rewards”
RECRUITMENT
RECRUITMENT
Demonstration of Ease
(“Teasers”)
CriminalMentoring
InsiderFakeDL
IDFraud
Fake Driver’s License as “Catalyst”Fake Driver’s License as “Catalyst”
InsiderFakeDL
IDFraud
Info. Broker
DLTech.
DLTech.
Fake Driver’s License as “Catalyst”Fake Driver’s License as “Catalyst”
InsiderFakeDL
ID Fraud
Tech.Skills
Runners
IDFraud
Fake Driver’s License as “Catalyst”Fake Driver’s License as “Catalyst”
CRIMINAL DEVELOPMENT STAGESCRIMINAL DEVELOPMENT STAGES
Citizen Fraud Report
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Victim Theft/Victim
Manipulation
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Victim Theft/Victim
Manipulation
IdentityConversion
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
Response to OriginalOffense
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
Response to OriginalOffense
Exposure to Identity Theft“Red Flags”
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
Response to OriginalOffense
Exposure to Identity Theft“Red Flags”
Officer Reaction to
Case Factors
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
Response to OriginalOffense
Exposure to Identity Theft“Red Flags”
Officer Reaction to
Case Factors
Inductive Assessment by Officer
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Citizen Fraud Report
Non-FraudReport
Encounter
Victim Theft/Victim
Manipulation
IdentityConversion
Identity TheftRecognition
Response to OriginalOffense
Exposure to Identity Theft“Red Flags”
Officer Reaction to
Case Factors
Inductive Assessment by Officer ID Theft Recognition
OFFICER RESPONSE STAGESOFFICER RESPONSE STAGES
Laminating machines
Bar Code Scanners
Bar Code Rewriters
Credit Card Embossing/Encoding Equipment
Multiple Drivers Licenses
Multiple Social Security Cards
TOOLS OF THE TRADETOOLS OF THE TRADE
Multiple Vehicle Titles
Blank Check Stock
Drivers License Templates
Check Producing Software
Treasury Check Template Disks
TOOLS OF THE TRADETOOLS OF THE TRADE
RECOGNIZING “RED FLAGS”
Connecting the Dots
Unusual behavior, circumstances,
evidence
Reports (Average Citizen, Service)
RECOGNIZING “RED FLAGS”
Connecting the Dots
Motor Vehicle Stops
Narcotics Cases (e.g., trafficking,
possession)
RECOGNIZING “RED FLAGS”
Connecting the Dots
Role of “chance” in routine calls/original offenses (e.g.,
disturbances, domestic violence, assault, burglary,
loitering)
QuestionsQuestions
In the present environment:
How do we protect “Who We Are?”
How do we prevent others from “Becoming Us?”
How do we thwart the criminal relations and transactions leading to identity theft and identity fraud?
Identity Theft& FraudControl
Prevention
Punishment/Deterrence
Identity Theft& FraudControl
Prevention
Punishment/Deterrence
Point of Theft
AwarenessScreening
Monitoring
Identity Theft& FraudControl
Prevention
Punishment/Deterrence
Point ofConversion
Document “Target
Hardening”
Point of Theft
AwarenessScreening
Monitoring
Identity Theft& FraudControl
Prevention
Punishment/Deterrence
Point ofConversion
Document “Target
Hardening”
Point of Theft
AwarenessScreening
Monitoring
Point of Fraud
AwarenessVerification
Identity Theft& FraudControl
Prevention
Punishment/Deterrence
Point ofConversion
Document “Target
Hardening”
Point of Enforcement
CoordinationAwareness
Point of Enforcement
CoordinationAwareness
Point of Theft
AwarenessScreening
Monitoring
Point of Fraud
AwarenessVerification
DiscussionDiscussion