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Acquiring key pieces of someone’s identifying information in order to impersonate the person and commit fraud or steal assets has become a land-office business worldwide. An estimated 500,000 Americans have their identities stolen each year.

This crime has “taken off” in the new millennium primarily because it is often accomplished anonymously, easily, and by means of various schemes. And, above all, identity theft is very lucrative. Perhaps because of the immense payoff, the ID thieves couldn’t care less that victims often spend years trying to undo the damage to their credit records.

Identity theft - illegally using another person’s name, Social Security number, residential and/or work address, telephone number, driver’s license number, and any other form of identifying information, often to obtain credit, merchandise and services in that person’s name - is a crime born of the easy credit age in which we live. These hard to detect, investigate and prosecute theft schemes - with new and inventive twists arising left and right - cost organizations millions of dollars annually, and cause untold financial and emotional problems for the people who have their identities stolen.

Think about how easily someone can get your personal information. Just about everything you do on a daily basis can provide access to the identity thief: taking out the trash, buying gasoline with a credit card, paying for a meal in a restaurant, renting a movie, or trading stock on-line.

Criminal ID theft methods range from strong-arm robbery of a wallet or purse on the street to sophisticated use of computerized databases; from bribing employees with access to personal information contained in customer records or personnel records to organized crime operations employing well-oiled schemes to support drug trafficking.

The latest revelation which points out the need to escalate law enforcement response to identity theft is the use of stolen names, identifications, and credit lines by terrorist groups who use the money and services to support their operations against the United States.

As the Internet has increasingly become a very popular place to purchase goods and services, or to post private information with a government agency, identity thieves who know the technology find increased opportunities to commit their crimes with much less chance of detection.

Web sites which sell fake IDs are growing at an astounding rate. Even more alarming is the increase in Web sites that “spoof” other real E-commerce sites so that an unwary consumer, thinking he’s found a really good buy on the Internet, leaves his credit card number in criminal hands.

Until recently, few ID thieves were put off by the prospect of arrest and jail. Few were caught and few served time. As such, identity theft has been difficult to prevent, or to stop once it has started, because victims have no means of preventing creditors from granting new credit to people with fake credentials - and so the cycle continues, on and on without stopping.

According to the Privacy Rights Clearinghouse, it takes the average victim about two years (on average) to clear his credit rating.

The situation is improving somewhat as law enforcement agencies and officers with the training, staffing, and wherewithal to pursue these fleeting, shadowy figures learn tactics of pursuing this genre of criminal. At the same time, consumer groups are providing victims more information on how to protect themselves and prevent future victimization.

Even so, investigating identity theft is incredibly time-consuming. It usually takes financial crimes investigators hundreds of hours to put a good case together. Few law enforcement agencies have investigators with the time, or even training, to pursue these investigations, so, what generally happens is that victims must investigate their own cases if they want to put a stop to the spiral of credit thefts involving their names.

Victims are also between a rock and a hard place in that credit granting companies protect the privacy of the person using their names illegally, and will not provide information to anyone other than a sworn law enforcement officer. This officer, generally with scant resources, time and training, must put together the probable cause and proper court order to get the information at this single stop the identity thief made - then go through the very same process for many more illegal transactions at other credit granting institutions and businesses.

Does this sound like a catch-22 for the victim? It is for law enforcement as well.

The bottom line is that many victims have little prospect of putting an end to their ordeals since creditors will not help, and law enforcement cannot investigate to the extent that a case can be neatly wrapped up and the perpetrator have his day in court to be held accountable.

Further complicating the situation, many identity theft victims may not realize for months, or even years, that they have been targeted. The victims apply for loans to buy a house or a car only to learn that they no longer can buy anything on credit because credit histories say they are late on bills, or long overdue on payments. What they will see on a credit history which used to be spotless are numerous entries for credit cards for which they never applied, unfamiliar billing addresses, and inquiries from creditors they never heard of.

How do the identity thieves operate? They use both low-tech and high-tech methods.

They shoulder surf at ATMs and dumpster dive (get into people’s trash), looking for credit or debit card receipts, tax statements, insurance papers, bank statements, medical records, prescription labels, or other records which bear the intended victim’s name, address, or telephone number. Then, they use this information to charge merchandise over the Internet, or obtain credit cards to charge in the physical world.

They steal people’s mail, seeking preapproved credit card solicitations, activate the cards, and have them sent to drop boxes or third party addresses.

They corrupt people who have access to a victim’s private information (postal employees, doctor’s office employees, etc.) and set up in motel rooms with computers, printers, and check creation software.

Becoming almost routine are reports of identity thieves using simple software to hack into commercial Web sites and capturing keystrokes to snare credit card account information.

Potential victims are not even safe inside their own homes using the Internet, because high-tech thieves have learned how to use simple hacking tools to obtain personal information from their computers which may not be adequately protected behind a firewall - accessing spreadsheets, pillaging computerized checking account programs, logging keystrokes which reveal their credit card number as they purchase items on-line.

Although part of the recent increase in reports of identity theft can be attributed to the Internet, off-line methods of stealing personal data still provide a more significant risk, according to Norm Willox, National Fraud Center Chairman of the Board. Speaking recently before identity theft workshops assembled by the U.S. Federal Trade Commission (FTC) and the Social Security Administration, Willox said National Fraud Center research indicates that the Web is not the usual avenue for identity thieves to obtain information. Instead, long established means of gathering data - such as “dumpster diving” or using a well placed employee - remain the most popular ID theft methods. Even so, as use of the Internet continues to grow with E-commerce fully in bloom, ID theft on the Internet will grow proportionally.

While the methods of operation of ID thieves are tremendously varied, new criminal techniques are continually being uncovered as these crooks incorporate new technologies and refinements as quickly as investigators uncover and counter the old ones. Given the complexity of identity theft operations and schemes, how can these crimes be investigated and prosecuted, and who should take the lead - federal authorities? The U.S. Secret Service will tell you it is overwhelmed with its presidential protection duties, fake check passing, and counterfeiting investigations. What about local police, then?

The short answer, from agencies already enmeshed in these investigations, is that it takes a mix of local, state, and federal officers working together to successfully investigate and prosecute these multijurisdictional crimes. This is so because, usually, individual cases are “too small” for federal prosecution, and “too large” and “too far abroad” for most local agencies to easily manage. Identity thieves usually fleece multiple victims in multiple jurisdictions. When investigators in one jurisdiction try to get a toehold, they soon realize that they can’t get a big picture of the thieves’ whereabouts and dealings because many victims often don’t realize they’ve been victimized for weeks or months after they were bilked. They don’t appear in the databases, so their individual stories escape the persistent investigator.

For this reason, central computerized databases, just now being built by the Federal Trade Commission and the U.S. Secret Service, and saturation training on prevention, investigation, and prosecution of these offenses have become key strategies to resolve even the simplest of interstate criminal activity. Operationally, multiagency task forces, where member agencies pool scarce resources, work best to investigate, prosecute, and educate/train for prevention.

While federal agencies have tooled up considerably to address this threat, on the local level, what police need is more funding to increase the number of financial fraud investigators.

Since many ID thieves have their goods delivered to a physical address which is not their own, it becomes difficult to arrest and prosecute them. Often, they case a home to become familiar with that family’s comings and goings, then order the merchandise delivered on a day when they know no one will be home. They sit next to the house and, when the delivery service truck arrives, they pose as the homeowner, sign for the goods, and make their getaway.

That one variation can be countered through a controlled delivery, a favorite tool of postal inspectors and others who work these types of scams. These types of operations are much easier if law enforcement gets to know industry people (FedEx, UPS, etc.) in a casual setting, such as quarterly luncheons, where relationships are nurtured and fraud prevention and detection issues are discussed.

If an officer wants to get a good picture of the fraud and theft problem in his city, all he has to do is query the FTC’s Consumer Sentinel site for every complaint filed in his jurisdiction, which might very well give him a picture of activity which dovetails with his current investigation.

While these investigations can turn complex quickly, taking them step-by-step will often make for success in the long run. Here are some steps you might want to take:

• The investigator (as early as possible) should provide a copy of his incident report to the victim so he (or she) can use it to help straighten out credit histories.

• Serial numbers of merchandise bought with a stolen identity can be entered into the National Crime Information Center (NCIC), and you might want to check pawnshops to see if any of the items were sold.

• Check to see if any photos or videotapes might have been taken of your suspect - cameras are everywhere nowadays.

• Get copies of fraudulent applications, sales drafts with forged signatures, and identification presented by the suspect.

• If it appears the suspect is stealing a certain type of merchandise, contact major distributors over the Internet or those locally (if a local investigation) and alert them to this thief’s shopping habits.

• Interviews with UPS, FedEx and other shipping drivers often produce results. Get the tracking number from the shipper and follow up. The delivery person might be able to shed light on suspicious deliveries and you might also be able to obtain a package delivery history for a certain address.

• If the suspect has gotten a cell phone in the name of the person whose identity was stolen, phone records will provide many clues to the identity of the thief.

• You can chip away at the suspect’s advantage of operating in jurisdictions outside where he lives by communicating with other law enforcement agencies. Contact them and share case information.

• If your suspect is local, steal his (or her) trash and see what you can learn about his illicit dealings with an eye toward discovering other victims of his scams.

• If you develop enough probable cause, get a search warrant for the suspect’s address.

• Check the suspect’s criminal history to see if he has been involved in similar fraud crimes in the past.

• Are the various victims connected in any way? Do they live in the same neighborhood? Do they shop in the same area or did they use the same vendor or rental agency recently?

• Don’t forget to check the national fraud investigation agencies (such as the National White Collar Crimes Center) and regional intelligence networks (such as RMIN - the Rocky Mountain Information Network) which can provide you with listings and details of similar criminal activity; do public database searches for you; and recommend investigative Web sites where you will find a lot of the information you seek about this type of crime or this particular criminal.

Various laws on the “federal side” will aid in prosecuting identity thieves and in assisting the victim to repair his credit history.

The theft statute most often used is 18 U.S.C. § 1028(a)(7), enacted Oct. 30, 1998, as part of the Identity Theft and Assumption Deterrence Act. This act added §1028(a)(7) which makes unlawful theft and misuse of personal identifying information criminal, regardless of whether or not the information appears, or is used, in documents. Section 1028(a)(7) provides that it is unlawful for anyone who:

...knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law....

The Identity Theft Act amended § 1028(b)(3) to provide that, if the offense is committed to facilitate a drug trafficking crime, or in connection with a crime of violence, or is committed by a person previously convicted of identity theft, the individual is subject to a term of imprisonment of not more than twenty years. The Identity Theft Act also added § 1028(b)(5) which provides for the forfeiture of any personal property used, or intended to be used, to commit the offense.

The Identity Theft Act also directed the FTC to establish a procedure to log in and acknowledge receipt of complaints from victims of identity theft; to provide educational materials to these victims; and to refer the complaints to appropriate local, state or federal authorities. The FTC since has developed a Web site, a central information database, a hotline for complaints, and quality educational materials. The Web site is www.consumer.gov/idtheft; the hotline is 1-877-ID THEFT; and identity theft complaints can be entered into Consumer Sentinel, a secure, on-line database available to law enforcement. The FTC has become a primary referral point for victims of identity theft, as well as a resource to local law enforcement and to victims.

Identity theft might not be the only federal charge which can be lodged since this offense is often committed in tandem with other crimes: identification fraud (18 U.S.C. §1028(a)(1) - (6)), credit card fraud (18 U.S.C. §1029), computer fraud (18 U.S.C.§ 1030), mail fraud (18 U.S.C. § 1341), wire fraud (18 U.S.C. §1343), financial institution fraud (18 U.S.C. §1344), mail theft (18 U.S.C. § 1708), and immigration document fraud (18 U.S.C. § 1546).

For example, a criminal could commit computer fraud if he invades a private home computer or corporate network to steal personal information, or if he uses personal information to open up credit accounts over the Internet. Twin charges of identity theft and computer fraud could then be lodged against this criminal. Likewise, a criminal who steals mail to get identifying information can be charged not only with identity theft, but also mail theft. One who poses as a telemarketer to get personal information could also be charged with wire fraud.

Investigators, whether state, federal or local, will also need to be conversant with federal credit laws which can help them assist victims as they repair their credit histories.

Most states have laws which prohibit stealing another’s identifying information or have other laws which can be used to prosecute. To date, 46 states have passed identity theft laws. Officers should consult their state statutes to see what else applies beyond possible federal charges. The Federal Trade Commission site on the Internet contains a complete listing of state identity theft statutes.

Stealing of identities may have been lucrative and “cost-free” for the criminal in the past. But, with these resources being mounted, his chance of getting away with his crime are lessening.

A number of fairly robust Web sites have been set up on the Internet to help victims and investigators sort through issues and procedures, and to provide checklists to work through the maze of confusing response tactics. Good places to visit for current information on identity theft include:

1. Federal Trade Commission’s Identity Theft Clearinghouse (www.consumer.gov/idtheft/index.html) - This site includes forms the victim can fill out to deal with repeated submissions of facts to various agencies, investigators and creditors.

2. Identity Theft - When Bad Things Happen to Your Good Name (www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm) - This on-line version of the Federal Trade Commission publication is a good starting point when you work with a victim of identity theft. Have the victim browse this document and its links. It provides all the guidance he (or she) needs to work the problem.

3. Privacy Rights Clearinghouse (www.privacyrights.org/) - The PRC site includes fact sheets designed to guide identity theft victims through the process of uncovering, investigating, reporting, and recovering from identity theft.

4. Identity Theft Resource Center (www.idtheftcenter.org/html/facts_and_statistics.htm) - This site contains prevention information, legislation, a reference library, consumer alerts, fraud form, speeches, articles, and testimony.

5. Internet Fraud Complaint Center (IFCC) (www.ifccfbi.gov) - The FBI and the National White Collar Crime Center maintain a pretty cool Web site, used a lot since Sept. 11 for people to report terrorist activity and which was previously dedicated to Internet fraud complaints. Officers can use the database here, even if the identity fraud did not involve Internet activity, and contribute information about their cases so other officers can search to build a profile/history of a suspect.

As Internet fraud complaints are reported on-line, IFCC electronically compiles the data. Trained analysts review and research each complaint, disseminating information to the appropriate local, state, or federal law enforcement agencies for criminal, civil or administrative action, as needed.

For the most part, this site caters to local officers and their needs; there is a certain threshold where the feds will assume responsibility for the investigation.

With millions of Americans now victimized over the years, ID theft has finally become a priority for officers at all levels of government. As they develop and refine investigative protocols for this crime of our “easy credit” age, prosecutors are digging in to provide support so that those who are arrested pay a larger price for fleecing an unwary public. Key to winning this latest criminal challenge will be saturation training in prevention, investigation and prosecution of ID theft; continued development of the databases now being built by the FTC and the Secret Service; and interagency task forces who share bits of information which eventually grow into a good case which can be prosecuted.

The Federal Trade Commission’s Consumer Sentinel Network on the Internet provides a variety of tools local law enforcement officers can use to investigate identity theft, a crime which often crosses jurisdictional boundaries.

You must be a law enforcement officer to join Consumer Sentinel, but it is as easy as sending an E-mail to sentinel@ftc.gov, or by calling the Consumer Sentinel Help Line at (202)326-2913. Consumer Sentinel will send you instructions if you leave your office fax number.

This secure, encrypted Web site provides a robust search interface for information on identity theft. For example, officers can search by identity theft type (what happened), when it occurred, details of the identity theft incident or incidents, law enforcement agencies involved, incident report numbers, and by the name of the consumer involved or his (or her) personal information. Also available is information on suspects, such as where they work, and about financial institutions or other creditors involved in the identity theft.

Seeking out this information on-line will enable a local officer to more easily assemble information which can be used to spot trends in criminal activity which dovetail with their local investigation.

The on-line, searchable databases also provide law enforcement contacts around the country who are also investigating identity theft cases and are knowledgeable about how to investigate them. Beyond that resource, the Secret Service and FTC are developing a case referral program which will access on-line complaints, tie similar ones together, and feed information to local agencies and officers who will be interested in working these cases.

There is no cost to local law enforcement for the services and information provided by the Identity Theft Data Clearinghouse.

Consumers also have convenient Web sites and toll-free phone lines to contact for information or assistance with their cases. To file a complaint about identity theft, all they need do is call (877)IDTHEFT. The ID THEFT counselors are trained to provide tips to help prevent future identity theft, and to help victims work through the maze of confusing steps to reestablish their good credit and good names. All complaints coming in to this central consumer assistance and complaint site are automatically entered into the Identity Theft Data Clearinghouse.

The Federal Trade Commission’s identity theft Web site not only offers a place where consumers can lodge a complaint, but lots of advice and tips for prevention and credit repair. It can be found at www.consumer.gov/idtheft.

Working hand in glove with the FTC to address this widespread problem of identity theft with specific programs and enforcement tactics are the Office of the Inspector General with the Social Security Administration, and the U.S. Postal Inspection Service.

Someone used your Social Security number and driver’s license number to get credit in your name. This has caused a lot of problems. You have been turned down for credit and for refinancing offers. You want to open your own business, but it might be impossible with this unresolved problem hanging over your head.

Stress, embarrassment, financial “limbo” - these are only a few of the consequences you will feel keenly in the weeks and months to come.

Your identity can be stolen in a variety of ways. Someone can steal your wallet/purse; rifle through your trash; pilfer your mail; impersonate you to get information about you; and spy on your PIN transactions at automated teller machines. Your response and tactics to “make things right” will vary, depending on the scam and the approach of the criminal.

Let’s take a look at one scenario: Your purse or wallet is stolen, and someone begins using your good name and credit line to purchase expensive items. Here’s what you do:

1. First (and do this right away!), file a police report in the city in which the crime occurred.

2. Immediately call your bank to report the theft. Alert your bank to flag your accounts and to contact you to confirm any unusual activity.

3. Call each credit card company at the special number devoted to theft incidents to report the crime.

4. If the thief now has your home and/or work address, be vigilant. They may probe to see if you can be victimized again (burglary, theft, scam approach at work, etc.).

5. Consider getting a new driver’s license number (not just a reissue of your old license, but an entirely new number). Call your state’s department of motor vehicles to see whether or not they have a procedure for doing this. If you keep your prior driver’s license, you may continue to see checks bounce, harming your credit.

6. Contact the three major credit reporting agencies’ fraud departments to alert them of possible fraudulent activities using your accounts:

Equifax Credit Information Services, Inc. P.O. Box 740241
Atlanta, GA 30374-0241
Phone: (800)525-6285
www.equifax.com

(The hearing impaired can call (800)255-0056 and ask the operator to call the Auto Disclosure Line at (800)685-1111 to obtain a copy of your report.)

 
Experian Information Solutions, Inc.
P.O. Box 9530 Allen, TX 75013
Phone: (888) 397-3742
TDD: (800)972-0322
www.experian.com

TransUnion
Fraud Victim Assistance Division
P.O. Box 6790 Fullerton, CA 92634-6790
Phone: (800) 680-7289
TDD: (877) 553-7803
www.tuc.com
 

Ask them to put a “fraud lock” on your credit to prevent someone from opening any new lines of credit in your name. You can later have the locks removed when the threat subsides.

7. Gather the following documents; get them notarized, if necessary; and make at least 25 copies of each document. As you receive bounced forged checks from check clearing companies, you can quickly put together a packet to send an immediate reply. Keep a copy of each document with you at all times in case you are challenged when you try to buy something with your credit card or check and are challenged:

• a copy of the police report;

• a bank affidavit attesting to the forgery; and

• a letter from the bank verifying that the checking account was closed due to theft.

8. Be vigilant to check your credit reports for the next year and aggressively follow up on any problems which relate to the theft. Get an updated credit report from each of the three agencies at least every two months for the next year.

Other important actions for victims to take:

• Call your nearest Postal Inspection Service office if the mail is involved in any way;

• Contact the Federal Trade Commission to report the problem;

• Contact the Social Security Administration’s Fraud Hotline;

• Contact the state office of the Department of Motor Vehicles to see if another license was issued in your name. If so, request a new license number and fill out the DMV’s complaint form to begin the fraud investigation process;

• You may also wish to contact a privacy or consumer advocacy group regarding illegal activity;

• Request a change of PIN and new password; and

• Keep a log of all contacts and make copies of all documents.