Identity Theft: Fallout, Investigation, and Prevention
-
Upload
fmiigf -
Category
Government & Nonprofit
-
view
82 -
download
5
description
Transcript of Identity Theft: Fallout, Investigation, and Prevention
![Page 1: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/1.jpg)
I.D. Theft: Fallout, Investigation, and
Prevention
Welcome to the Financial Management Institute WebinarWednesday, February 12, 2014 1:00pm EST
![Page 2: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/2.jpg)
Panel:• Jennifer Fiddian-Green, CPA, CA-IFA,
CMA, CFI, CFE, CAMS, Forensic Accounting, Investigations and Anti-Money Laundering, Grant Thornton LLP Canada
• Dt. Ian Nichol, Detective at Toronto Police Service Financial Crimes Unit
Moderator:• Lori Glen, FBMC Executive Coordinator
at Ministry of Finance, Government of Ontario
![Page 3: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/3.jpg)
Who’s Collecting Your Data?Do you Trust them?
Jennifer Fiddian-GreenPartner, Grant Thornton
![Page 4: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/4.jpg)
Identity Theft and Mortgage Fraud• Received call from mortgage
company collector: 'late on payments and where was the money?'
• Two properties, each with a mortgage, located in Brantford, Ontario
• Together likely worth about $360,000; registered mortgages totaled $494,060
![Page 5: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/5.jpg)
Identity Theft and Mortgage Fraud• Two different financing companies
lent money to organized group using my name and SIN number.
• No actual interaction with the ‘customer’- transaction completed through phone call, fax, and mortgage broker.
• Other than name and SIN, all other information on file was false.
![Page 6: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/6.jpg)
Equifax and TransUnion• Obtained reports electronically from
websites…• Concern immediately was the number
of organizations who had accessed credit information (as opposed to there being a lot of credit accounts that I was not familiar with)
![Page 7: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/7.jpg)
Attempts Made to Obtain Financing
Interestingly… I identified 12 attempts to use my credit to obtain financing, only 2 attempts were successful. What happened in the other 10 cases?
Fraudsters learned with each attempt made (but the last two were not the successful two). The application did get better and better. In the beginning the ‘FiddianGreen’ application was likely not that sophisticated
![Page 8: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/8.jpg)
How can you be aware of the damage Any number of things can have
already occurred:• Money is withdrawn or transferred• New accounts or loans have been
created• Credit cards or any goods & services
ordered.• Retail purchases
Damage to credit records and other negative impact can be irreversible
![Page 9: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/9.jpg)
Signs of being victimized Creditors mentioning and requesting
funds for unknown loans Notices of denied applications or other
letters hinting at unknown activities Bills for goods and services Missing statements or mail indicating that
correspondence is being diverted Banks contacting by email or telephone,
indicating to go to branch and get a new card
![Page 10: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/10.jpg)
How Easy is it to Obtain the Personal Information…
• Theft of mail/mail diversion– Completing a change of address form– New cheques, bank and credit card statements, promotional
offers – Tax information/forms
• Organizations, government, businesses and institutions– Stealing/hacking information from employer: data on servers,
screen shots, photos– Thieves infiltrate as employees– Bribing targeted employees who have access to records – Social engineering - “conning” information out of employees– "Lost" data as it is couriered, transported between locations
• Theft of credit or debit card numbers– “skimming” - capturing cardholder information in a data storage
device
![Page 11: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/11.jpg)
How Easy is it to Obtain the Personal Information…
• Courier carriers- lost data after pick up• Credit reports
– abusing their authorized access from their employer– posing as a landlord, employer, or someone else who may have a legal
right to access your report
• “Dumpster diving”– rummaging through trash and dumps
• Physical theft of wallets, purses, electronic storage devices, house break-ins
![Page 12: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/12.jpg)
…the Data is Accessible, So Many Sources…
• IT servers, where are these today? Outsourced operations, CLOUD computing
• Garbage, recycling, 'secure' document destruction
• “Phishing” and “pretexting”– Theft of personal information by posing as legitimate companies
claiming that you have a problem with your account. Telephone and computer/email
• Keystroke logging, data copiers
![Page 13: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/13.jpg)
The Bigger Picture• The integrity and credibility of our
systems is essential, foundational. We need to be diligent
• Protection of personal information is paramount: Organizations, credit bureaus. businesses, government need to be vigilant!
• Lending organizations need to be proactive in work undertaken to know their customer
• Managing fraud risk costs money. Where is the pendulum?
![Page 14: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/14.jpg)
Visiting the Two Mortgage Companies• CIBC issued the mortgage using their
‘Firstline’ branding, I was a legitimate customer at the time
• Other company- non-conforming mortgage company, they called me looking for payment, same broker had 2 other deals that resulted in ID theft, appears she was targeted by fraudsters
• Understand that both of these companies are victims.. But also unwitting enablers!
![Page 15: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/15.jpg)
Calling the Seller!• Within about three days I had
reached a point where I knew (or thought!) the next step was to contact the seller of the properties
• Same name in each case- ‘the husband’
![Page 16: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/16.jpg)
How Could This Happen?• Financing/lending companies• Appraisers• Lawyers• Mortgage Brokers• Real Estate Brokers• Credit Agencies• Land Registry Offices• Hot real estate market, increasing
prices
![Page 17: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/17.jpg)
So it’s about informationMinimum amount of information to impersonate someone is simply a name but access to the following can cause real damage
Full name Date of birth Social Insurance Numbers Full address Mother’s maiden name Username/password for
Web sites
![Page 18: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/18.jpg)
Observations on Identity Theft
Detective Ian NicholToronto Police ServiceFinancial Crimes Unit
![Page 19: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/19.jpg)
• Enacted January 8, 2010• Recognized identity theft was not
sufficiently addressed in Criminal Code• Created new offences for acts that were
related to fraud/personation, but not specifically illegal.
• Electronic interception now authorized for offences related to forgery, identity documents, and personation
Identity Theft Provision: Bill S-4
![Page 20: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/20.jpg)
• Identity theft & Trafficking of Identity Information
• Personation to avoid arrest, prosecution, or obstruct justice
• Possession & trafficking of forged documents• Make, repair, trafficking of forgery
instruments, credit card forgery devices• Possession Canada Post mailbox key• Fraudulent re-direction of mail
New Offences Created
![Page 21: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/21.jpg)
• Individual offences investigated at Divisional level
• Criminal organizations dedicated to identity theft investigated by Financial Crimes Unit, Organized Crime Section
• Charge of Participation in Criminal Organization seldom laid
• Most identity theft investigations relate to Criminal Organizations, but not investigated as such
Toronto Police Service & Identity Theft
![Page 22: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/22.jpg)
• True name identity theft• Complicit identity theft• Payment card cloning• Profile creation. (Not identity theft,
but identity creation)
Typical Investigations by FCU/OC
![Page 23: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/23.jpg)
• Account take-overs • True-name false account applications• “Creations” from true identity• Fraudulent advance tax returns• Title theft• Vehicle lease/theft• Immigration fraud• Warrant avoidance• Avoidance of travel restrictions• Laundering proceeds of crime
True Name Identity Theft
![Page 24: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/24.jpg)
• Ex-patriots returning home, sell identity for exploitation
• Allow account take-over & feign being “victim”
Complicit Identity Theft
![Page 25: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/25.jpg)
• Identity information (card data/PIN’s) unlawfully obtained through ATM/POS tampering, server breach, hacking
• Forged payment cards produced and utilized. (Victim’s inconvenienced, but usually assume no losses)
• “Identity Theft Light”
Payment Card Cloning
![Page 26: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/26.jpg)
Identity theft is usually a group effort
![Page 27: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/27.jpg)
• Middlemen with connections to persons with access to identity information, provide “players” with info sought
• Continuously developing new contacts within financial community, other private sector, and government. (wine + dine/pay per “profile”)
• Treat Identity information as a commodity.• May do so in person, or via web• Generally ID info is sold in “bulk”
Connectors & Brokers
![Page 28: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/28.jpg)
• Bank employees• Other corporate employees• Government employees• Other persons with access (Doctors
office, insurance companies, etc.)
Persons with access to Identity Information
![Page 29: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/29.jpg)
![Page 30: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/30.jpg)
C-phone on bank call-taker when arrested
![Page 31: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/31.jpg)
Crew leaders directing “runners”
![Page 32: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/32.jpg)
Forgers are required
![Page 33: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/33.jpg)
• Some operate within loose networks who maintain connections, but not aligned with any particular group
• Others clearly operating within criminal organizations, many of which are based outside of Canada
Organized crime versus networks in GTA
![Page 34: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/34.jpg)
• Players rely heavily on underground web for ID information
• Ability to network greatly enhanced• Players operate internationally• Multi-national investigations pose
problems for law enforcement
Web enabled criminality
![Page 35: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/35.jpg)
• Ability to operate enhanced by web based applications that allow call spoofing, I.P. spoofing, ID shopping
• Ability to operate internationally• Web utilized for money laundering
![Page 36: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/36.jpg)
Hamond JINADU’s “research”
![Page 37: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/37.jpg)
Money laundering sitesClosed by US Secret Service
![Page 38: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/38.jpg)
Call spoofing site
![Page 39: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/39.jpg)
I.P. Spoofing Site
![Page 40: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/40.jpg)
Skype Message to accused in Toronto, from runner in Chile
![Page 41: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/41.jpg)
• Tolerance of identity theft is incentivized
• Those in a position to counter identity theft actually realize financial benefit if they allow it. (Retailers, used car dealers, jewellers
• If approval for suspect transaction is obtained, they get paid. No incentive to exists detect or deter fraud
About Prevention of Identity Theft
![Page 42: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/42.jpg)
• “No blood, no foul”• Non-violent, therefore, not important• High level of tolerance towards fraud.
Banks perceived as enemies. “Victims will get their money back”
Social Attitudes
![Page 43: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/43.jpg)
• R v MARINOV et al (Project Holiday)• R v JINADU (Project Easy)• R v RAMASAMY (Project Rocket)
Recent Identity Theft Investigations (Crim. Org Laid)
![Page 44: Identity Theft: Fallout, Investigation, and Prevention](https://reader033.fdocuments.us/reader033/viewer/2022061203/546e85d5af7959ed048b6ff9/html5/thumbnails/44.jpg)
Questions and AnswersBe sure to tune in to next month’s webinar!• “Reflections from an International Financial
Management Professional”• Presenter: Kevin Ross• Tuesday, March 4th, 2014