King County Prosecuting Attorney Angela Kaake makes her living going after criminals engaged in identity theft and financial fraud, and she shared her years of experience with the West Seattle Crime Prevention Council on Sept. 20.
The big picture
Kaake started out with the big picture and some sobering statistics on identity theft gathered from the Federal Trade Commission (FTC):
-Identity theft is the number one reported crime in the United States. Kaake said this statistic is all the more profound because many people never report their identity theft to the FTC, let alone their local police force. She estimated 61 percent of identity theft victims never report it to police. The reason, she said, is victims are usually able to get their money back by working with the bank and consider the matter closed. She urged victims to file reports with both police and the FTC to help law enforcement identify patterns, leading to arrests.
-There are 10 million new identity theft victims each year.
-1 in 10 U.S. citizens have been a victim.
In Washington, Kaake said there were 6,646 identity theft cases reported to the FTC in 2009. If the 61-percent-never-reported stat holds true, there were more like 17,041 cases in reality.
Kaake said Washington State was 17th in the nation per capita in identity theft victims in 2009, a number that has gotten better over time. In 2006 Washington ranked 7th.
Identity theft comes in many forms
Kaake asked the crowd to share their personal stories of identity theft and the hands shot up.
One man’s credit card numbers were stolen and used to purchase several computers and ship merchandise from the Midwest to Nigeria.
A woman moved out of her apartment and found out the person that moved in after her (whom she knew) used mail still going to the victim’s old address to open a credit card and phone line, which she used to rack up a massive bill talking to pay-by-the-minute psychics.
Another woman used her ATM card at a Fred Meyer self-checkout stand and hours later there were $1000 transactions occurring at the same store by someone who had skimmed her card data.
The scope of identity theft is wide, and Kaake provided a list of the most common:
-Forged checks. This is where the check is already written and someone uses chemicals to clear the name and amount, then put their own name and a larger amount on the check before cashing it.
-Counterfeit checks. Where a thief gets a hold of your account number and prints checks at home (there is software available to print checks from a personal computer).
-Using stolen credit cards.
-Stealing personal information, primarily social security numbers, and opening accounts and lines of credit in the victim’s name.
-Skimming credit or debit card numbers from ATMs or checkout sliders. Kaake said the actual skimmer devices are legal to buy; it’s their improper use that’s illegal. To read more on card skimming, check out the Herald article, “Card skimmers rig ATMs for identity theft.” Once thieves have the information from a victim’s card they can freely transfer it to any card with a magnetic strip.
How do they get to our information?
There are several techniques identity thieves use to get at victims’ information, from the basic (steal your mail) to more sophisticated computer programs. Kaake said organized crime gangs, often from Eastern Europe, are usually behind identity theft operations.
-Stolen mail
-Stolen garbage
-Car prowls
-Burglaries
-Employees stealing personal information from customers
-Computer hacking, including phishing programs. For example, phishing thieves might send out emails that seem to be from a legitimate source like a bank and ask you to reenter your personal and account information.
-Malware, software that unknowingly downloads to victims’ computers and spies on their online activity, stealing account information when it is entered to make purchases.
Prevention – How do we stop them?
-To prevent mail theft, Kaake recommended locking mailboxes and always taking outgoing mail to the post office instead of in your mailbox for the mail carrier to pick up. “Putting that flag up is a flag to criminals,” she said.
-Shred sensitive documents, including unsolicited credit card offers. If a thief gets a hold of a credit card offer they can simply change the address and apply for the card, Kaake said.
-Don’t leave valuables in your car.
-Protect your home from burglaries. For some ideas on how to do just that, check out the Herald article, “West Seattle Blockwatch Captains get a field trip on crime prevention through landscaping.”
-Don’t give out personal information over the phone or internet unless you initiate the contact. If someone calls claiming to be from a legitimate company, let them know you will call the company back to discuss the matter further.
-Install antivirus software on your computer to help fend off malware.
-Monitor your accounts on a regular basis. Kaake recommended looking over your accounts for suspicious activity at least once a week. You can also get a free credit report three times a year from www.annualcreditreport.com.
-Use credit cards over debit cards. Kaake said credit cards generally have more protection and don’t pull money directly from your bank account.
-Inspect ATM machines for skimmer evidence. Skimming devices are placed directly over the card interface on ATMs and a small camera is generally positioned above, looking down on the keypad where PIN numbers are entered. Kaake said to inspect the card reader for anything suspicious – scuffs or glue for example – and feel free to yank on it. Skimmers are designed to mimic the look of the regular ATM interface, so take a close look. In addition, be sure to cover the keypad when you enter your pin, obscuring it with your off-hand, purse or wallet. The safest way to avoid getting skimmed is to never use ATMs, Kaake said. Instead, go to a grocery store, buy a pack of gum and get your cash back that way.
-Card skimmers usually install their fake machinery at night or over the weekends and leave them there for only a few hours, so Kaake recommends extra diligence at those times.
-Door readers on ATM booths. Some banks have a card reader to gain access to the actual ATM enclosed in a booth. Kaake said those external card readers have been set up with skimming devices, so use your Safeway or QFC Club cards instead (it only takes a magnetic strip, not your actual debit card, to get inside).
Prosecuting identity theft is difficult
Kaake said prosecuting identity theft is a tough road. Take the example of a thief using a stolen card at grocery store. Unless a surveillance camera happens to clearly capture the face and other defining characteristics, the thief is completely anonymous (because they are using someone else’s information!). Add to that the fact that store clerks are highly unlikely to remember that guy who bought a case of beer around 9:30 last Tuesday and many stores have either no surveillance, fake cameras or surveillance data that deletes itself after a short period of time, and it is clear why prosecuting identity theft is a tall order.
Additionally, both police and prosecutors are dealing with budget cuts, leading to fewer eyes on the beat and changes to the rules, such as any forgery under $1,000 being considered a misdemeanor rather than a felony.
When identity theft strikes, here’s how you can stop things from getting worse and help prosecutors
When you see unauthorized transactions on your account, or know your identity has been stolen, here are some tips from Kaake:
-Cancel your cards immediately.
-Put a fraud alert on your credit by calling any one of the three credit score agencies (Equifax, Experian and TransUnion). If someone applies for a line of credit, you will be notified.
-Report the theft to the police and FTC (in addition to your bank)
-Due some detective work on your own. Kaake said it is much easier for the victim of identity theft to gather specific information on the time and place of an unauthorized transaction from their bank than it is for police or prosecutors. While the law has to procure search warrants for that information, you can get it immediately because you are a customer.
