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IDENTITY THEFT/FRAUD

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Title: IDENTITY THEFT/FRAUD Author: durnerja Last modified by: Srinivas Created Date: 3/9/2011 2:28:50 PM Document presentation format: On-screen Show (4:3) – PowerPoint PPT presentation

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Title: IDENTITY THEFT/FRAUD


1
IDENTITY THEFT/FRAUD
  • PREPARED BY
  • MARYLAND POLICE AND CORRECTIONAL TRAINING
    COMMISSIONS

2
TRAINING OBJECTIVES TERMINAL OBJECTIVE Given
various criminal situations demonstrate the
ability to identify elements of a given crime,
utilizing the Annotated Code of Maryland and/or
the Digest of Criminal Laws, that enable an
officer to make a warrantless arrest. ENABLING
OBJECTIVES Define the term IDENTITY
THEFT. Identify the basic elements of the
crime of IDENTITY THEFT/FRAUD as contained in
the Annotated Code of Maryland. TERMINAL
OBJECTIVE Identify the resources available to
the officer while conducting a criminal
investigation. ENABLING OBJECTIVE Identify
the resources available to the officer for crimes
involving identity theft/fraud. TERMINAL
OBJECTIVE Identify resources available to a
crime victim. ENABLING OBJECTIVE Identify
resources available to the victim for crimes
involving identity theft/fraud.
3
TERMINAL OBJECTIVE Define crime prevention.
ENABLING OBJECTIVE Identify
several types of personal/financial information
that may be stolen/compromised to include, at
a minimum
? personal identifiers
? name
? date of birth
?
address ?
credit/debit/checking/savings/other existing
financial accounts ?
account access codes/passwords
? social security number
? medical records ?
drivers license number/identification number
? educational
background/records and ?
computer passwords.
4
ENABLING OBJECTIVES Identify several
examples of the crime of identity theft/fraud to
include, at a minimum, the
theft/fraudulent use of
? existing credit/debit
cards/financial accounts
? other financial
records/personal financial information to obtain
credit or other financial assistance
? personal
information to obtain various services such as
medical
treatment, government/social
services, educational assistance, etc and
? personal
information to obtain government identity cards,
licenses or other official documents.
Identify several different ways in which
personal information including financial
information may be stolen/compromised, to
include at a minimum
? the use of home/workplace
computers
? discarded/stolen mail
? discarded
personal/financial records and
? theft/compromise
during legitimate use of information by victim
during a third party transaction.
Identify several different ways
by which an individual can safeguard his/her
personal identifying information.
5
TERMINAL OBJECTIVE Demonstrate completion of
acceptable police reports for various
offenses/incidents/situations.
ENABLING OBJECTIVES Apply the law as
contained in the Annotated Code of Maryland that
requires a law enforcement
officer to prepare and file a report from the
victim of identity theft/fraud. Given a
scenario involving identity theft/fraud, compose
a complete initial
identity theft/fraud offense report that
includes, at a minimum, the following elements
?
complete victim information at the time of the
identity theft/fraud
? complete description of the type of
item/identity document stolen/compromised
?
specific information about how the
stolen/compromised identity item/document
was discovered by the victim and how the identity
item/document was used
? potential suspect
information
? action victim has taken to mitigate identity
loss/compromise and
? description of recommended follow-up
action given to the victim.
6
IDENTITY THEFT DEFINITION
7
IDENTITY THEFT DEFINITION GENERAL ?
ILLEGAL USE (WITHOUT CONSENT) OF ANOTHERS
PERSONAL INFORMATION SUCH AS ?
PERSONAL IDENTIFIERS ? NAME ? DATE OF
BIRTH ? ADDRESS ? MOTHERS MAIDEN NAME
etc. ? CREDIT CARD NUMBERS ?
FINANCIAL RECORDS ? SOCIAL
SECURITY NUMBER ? DRIVERS
LICENSE NUMBER ? OTHER PERSONAL
INFORMATION ? TO GAIN SOMETHING OF
VALUE ?
FACILITATE OTHER CRIMINAL ACTIVITY.
Source Federal Trade Commission
8
PERSONAL IDENTIFYING INFORMATION
DEFINED MARYLAND ANNOTATED CODE CR 8 301 (3)
9
CR 8 301. IDENTITY FRAUD. (a)
DEFINITIONS (3) PERSONAL IDENTIFYING
INFORMATION includes ? NAME ?
ADDRESS ? TELEPHONE NUMBER ? DRIVERS
LICENSE NUMBER ? SOCIAL SECURITY NUMBER
(SSN) ? PLACE OF EMPLOYMENT ? EMPLOYEE
IDENTIFICATION NUMBER ? MOTHERS MAIDEN
NAME ? BANK/OTHER FINANCIAL INSTITUTION
ACCOUNT NUMBER ? DATE OF BIRTH ?
PERSONAL IDENTIFICATION NUMBER ? CREDIT CARD
NUMBER or ? OTHER PAYMENT DEVICE NUMBER.
10
CR 8 301. IDENTITY FRAUD. ?
PROHIBITED (b) OBTAINING PERSONAL
IDENTIFYING INFORMATION WITHOUT CONSENT
A person may NOT knowingly, willfully and with
fraudulent intent ? possess ?
obtain ? help another possess/obtain
any personal identifying information of
an individual ? without the
consent of the individual in order to
? use ? sell
? transfer
? the information
to get a
? benefit
? credit
? good
?
service or
? anything of value
?
in the name of the individual.
11
CR 8 301. IDENTITY FRAUD. ?
PROHIBITED (c) ASSUMING IDENTITY OF
ANOTHER A person may NOT knowingly,
and willfully assume the identity of another,
including a fictitious person 1)
to avoid ?
identification ? apprehension
? prosecution for a
crime 2) with fraudulent intent to (i)
get a benefit, credit, good, service or other
thing of value (ii) avoid the payment of
debt or other legal obligation. Note The
words including a fictitious person were added
to
CR 8-301 (c) during the 2011 session
of the Maryland General
Assembly. This
change becomes effective October 1, 2011.
12
FACTORS THAT CONTRIBUTE TO IDENTITY THEFT
13
? relatively easy crime to commit because
individuals ? fail to adequately
safeguard personal data/information ?
carry personal information in wallets/purses
which can be relatively easily stolen/lost
? drivers license ?
credit cards ? medical insurance
cards ? social security cards
etc. ? casually provide others with
personal information without asking
? why the information is needed
? how will it be used
? how the information will be protected
? maintain personal information on
home/business computers that can be compromised
by hackers ?
unwittingly/unthinkingly discard trash/recyclable
materials containing personal
information ? dumpster
diving ? personal identifying
information can be stolen/compromised during
legitimate transactions ?
skimming ? personal information
is readily accessible in business files that are
not properly safeguarded ? employment
records ? medical records ?
academic records etc.
14
? personal information frequently
transported by those responsible for security on
computers/data storage devices
which can be stolen/otherwise compromised
? personal information is available on
Internet sites that are not protected or whose
security has been breached/otherwise
compromised ? individuals
freely/willingly supply personal information on
social networking websites ? websites
offer guides on how to create alternative IDs and
how to obtain personal identifiers
of others ? www.docusearch.com/ov
erture ? www.affordable.com/bestsell
ers ? victims do not typically
discover the crime until some time after it has
occurred ? familiarity between
victim and offender provides different
opportunities for identity theft
because of the availability of personal
information ?
relatives ? coworkers
? acquaintances including
those with whom they do business
? information is sold/freely by
businesses/organizations given the information
during legitimate business,
including some governmental agencies/charitable
organizations, etc.
? data mining ? typically
all that is needed to obtain personal information
such as a mothers maiden name,
birth certificate/death certificate or other
vital records is one form of identification that
can be forged/otherwise altered to
obtain personal information fraudulently
15
COMMON SOURCES CONTAINING PERSONAL IDENTIFYING
INFORMATION
16
COMMON SOURCES CONTAINING PERSONAL IDENTIFYING
INFORMATION ? some/all personal identifiers are
commonly included in ?
PUBLIC/GOVERNMENT RECORDS ? birth
certificate ? marriage license ? divorce
records ? drivers license ? vehicle
registration ? voting records ? property
records ? death certificates ? arrest
records ? court records ? SCHOOL
RECORDS ? primary/secondary/trade ?
college ? MILITARY SERVICE
RECORDS ? EMPLOYMENT FILES ?
employment application ? medical/drug
screening ? payroll ?
emergency notification ? background
investigation ? MEDICAL RECORDS ?
doctors office ? hospital/emergency room ?
pharmacies/clinics ? immediate care
facilities ? self-diagnosis websites ?
MAIL ? bills/financial statements ?
charitable solicitations ? junk ?
pre-approved credit offers ?
TRASH/RE-CYCLABLES ? discarded
but not destroyed financial statements/bills/other
personal documents ?
PERSONAL/BUSINESS COMPUTERS/ELECTRONIC DEVICES

17
TYPES OF INFORMATION STOLEN
18
TYPES OF INFORMATION COMMONLY STOLEN ? personal
identifiers ? name ? date of birth ? home
address/telephone number ? social security
number ? drivers license number ?
credit/debit/bank card account numbers
? account passwords/access codes ? mail
? bank statements ?
statements from other financial institutions

? retirement fund statements
? credit card statements/pre-approved
credit card offers ? telephone
calling cards ? cell phone
bills/utility statements with account numbers
? tax information ?
employee 1099 forms ? refund
checks ? personal/financial information from
home/business computer by TRICKERY ?
Internet ? hacking ?
unsolicited e mail/attachments ?
free downloads of programs
? passwords ? personal information retained
in employment file ? medical
records/medical insurance information ?
scholastic/academic records
19
EXAMPLES PERSONAL INFORMATION MEDICAL
RECORDS PUBLIC/GOVERNMENT RECORDS
20
MEDICAL RECORDS ? considered by most to be
highly sensitive/deserving of strongest
protection under the law ? normally created
when treatment is received from health care
professional/entity ? may include
? personal identifiers ?
biographical information ? medical
history including relevant lifestyle items
? use of tobacco ?
alcohol use ? drug use
? family medical history ?
parents ? siblings ? laboratory
test results ? medical diagnosis
? medications prescribed including
controlled substances ? results of
operations/medical procedures ?
results of genetic testing ?
physical and mental condition ? mental health
treatment/counseling
21
? records are shared by variety of individuals
both IN AND OUT of health care industry ?
access usually obtained by agreement to share
information to receive particular service
? insurance companies ? Medical
Information Bureau (MIB) ?
central database of medical information shared by
insurance companies
? approximately 15 million individuals are on
file ? IntelliScript and MedPoint
? databases that report
prescription drug purchase histories to insurance
companies ? may go
back 5 years detailing drug usage/dosage/refills
? government agencies/entities
? Social Security ?
public health facilities/clinics ?
EMPLOYERS may obtain medical records by
? asking applicants/employees to
authorize disclosure of medical records
? pre-employment physical
exam ? annual
physical exams ?
fitness for duty exams
? promotional
physical exams ?
random drug screening
? workers compensation exams ?
subpoenaed for court/administrative hearing
? direct marketers ?
when individuals participate in informal health
screenings at health fairs, etc. ?
Internet sites ?
self-help/self-diagnosis websites
? no guarantee that any information
that is disclosed will remain private
22
  • ? Health Insurance Portability and
    Accountability Act (HIPAA)
  • ? enacted in 2003 sets national standard
    for privacy of health information
  • ? sets floor on medical record privacy
    rights
  • ? states are free to set more
    stringent standards
  • ? applies to medical records transmitted by
    electronic form maintained by
  • ? health care providers
  • ? health care plans
  • ? health clearinghouses
  • ? great deal of health-related information
    exists outside of health care facilities/files of
    health
  • care providers/health plans
  • ? life insurance companies
  • ? employers records
  • ? Internet self-help sites
  • ? entities conducting health care
    screenings such as pharmacies/shopping
    centers/health
  • fairs, etc.

23
  • COMMON EXAMPLES of MEDICAL RECORDS OUTSIDE
    PROVIDERS CONTROL
  • ? in EDUCATIONAL RECORDS maintained by schools
    may include childs
  • ? vaccination history
  • ? allergies
  • ? physical examinations for sports
  • ? counseling for behavioral problems
  • ? learning disabilities
  • ? visits to school nurse
  • ? covered by Family Educational
    Rights and Privacy Act (FERPA) not HIPAA
  • ? in EMPLOYMENT RECORDS may contain information
    related to
  • ? Occupational Safety and Health Act
    (OSHA)
  • ? workers compensation files
  • ? fitness for duty examinations
  • ? Family and Medical Leave Act (FMLA)
  • ? agency sponsored health/fitness
    programs

24
MARYLAND LAW - MEDICAL RECORDS Maryland
Annotated Code Health General Title 4 -
Statistics and Records Subtitle 3
Confidentiality of Medical Records
25
? Maryland Law provides in general that
? health care provider ? keep
medical records of patient/recipient of mental
health services confidential ?
disclose records only as provided within law
? re-disclosure by person
to whom records are released not legal unless
authorized by
patient ? conditions under
which medical records can be released to third
party ? valid
authorization necessary ?
requirement to provide copy of individuals
medical record to party of interest
within reasonable amount of time (up to 21
days) ? upon
written request ?
conditions under which mental health provider can
deny request that relates to
psychiatric/psychological
problem ? may not refuse
copy of medical record for failure to pay for
health care services
rendered ? payment for copy
of medical record ?
requirement to establish procedures to add
to/correct patients medical record
? conditions under which health care
provider may disclose medical records to third
party without authorization of
person of interest
? seeking payment for medical services
provided ? legal
counsel ? insurers
? to others as enumerated in
4-305 ? disclosures without
authorization for investigative purposes -
4-306 ?
subpoena/summons/warrant/court order
26
? 4-302. Confidentiality and disclosure
generally (a) In general A
health care provider shall (1) keep
the medical record of a patient or recipient
CONFIDENTIAL and (2) disclose the
medical record only (i) as
provided by this subtitle or
(ii) as otherwise provided by law. (d)
Re-disclosure ...may NOT re-disclose
medical record to other person unless
re-disclosure is (1)
authorized by the person in interest... (e)
Transfer of records relating to transfer of
ownership of health care practice/facility.
...a person may NOT disclose by
sale/rental/barter any medical record.
27
? 4-303. Disclosure upon authorization of
person in interest. (a) In general
...health care provider shall disclose
medical record on authorization of person in
interest in accordance with this
section... (1) BE IN
WRITING/DATED/SIGNED BY PERSON IN INTEREST
(2) state name of health care provider
(3) identify to whom information is to
be disclosed (4) state period of
time that authorization is valid may not exceed
1 year (i) in cases of
criminal justice referrals...authorization shall
be valid for 30 days following
final disposition (5) apply
only to medical record developed by health care
provider unless in writing
(i) authorization specifies disclosure of
medical record...from another provider and
(ii) other provider has not
prohibited re-disclosure. (c)
Pre-authorized insurance forms
...shall disclose medical record on receipt of
preauthorized form...part of application for
insurance. (d) Authorization for
release related to workers compensation claims
...shall disclose medical record on
receipt of authorization for release of relevant
medical information included with the
claim application form filed with the Workers
Compensation Commission...
28
? Maryland Law 4-306 allows disclosure of
medical records WITHOUT authorization of patient
or person of interest under various
circumstances/with certain conditions/limitations
to include ? investigation/treatment in
case of suspected abuse/neglect of child/adult
? health professional licensing and
disciplinary boards ? health care
provider or providers insurer/legal counsel when
health care provider is faced with
civil action initiated by patient/recipient/person
of interest ? medical/dental review
committees defined in Health Occupations Article
? another health care provider as provided
in 19-308.2/ 10-807 of this Article
? during court proceedings when person of
interest has waived compulsory process ?
grand juries/prosecution agencies/law enforcement
agencies to further investigation
? PURSUANT TO SUBPOENA/WARRANT/COURT ORDER
? for SOLE purpose of
INVESTIGATING AND PROSECUTING CRIMINAL ACTIVITY
? must have
written procedures to protect confidentiality of
the records ? Maryland Insurance
Administration when conducting an
investigation/examination pursuant to
Title 2, Subtitle 2 of Insurance Article ?
State/local child fatality review team
established under Title 5, Subtitle 7 of this
Article as necessary to carry out its
official functions ? local domestic
violence fatality review team established under
Title 4, Subtitle 7 of Family Law
Article as necessary to carry out its official
functions ? Health care provider to insert in
patients medical file ? written request
for disclosure ? written confirmation of
oral request that justifies disclosure ?
documentation of disclosure

29
? Maryland Law 4-307 covers disclosure of
MENTAL HEALTH RECORDS to include ?
disclosure of mental health records WITHOUT
AUTHORIZATION of person of interest to
include ? ONLY information in
record relevant to purpose of disclosure to be
released ? PERSONAL NOTES of
provider under conditions set forth in law
? results of psychological tests ?
mental health records may be disclosed without
authorization under various
circumstances/with certain restrictions/limitation
s to include ? OBTAINING OR
CONTINUING EMPLOYMENT ? when
receiving mental health services from a core
service agency ? for the
health/safety/protection of recipient/others
? pursuant to commitment
proceedings/court orders/subpoenas
? medical examiner in event of recipient death
? documentation of release of records
to be inserted in medical record of recipient
30
? Maryland Law 4-309 (C) covers medical
records that are FRAUDULENTLY OBTAINED or
WRONGFULLY DISCLOSED (e)
FRAUDULENT obtaining of records WRONGFUL
DISCLOSURE of records
? A health care provider/any person
including officer/employee of a governmental unit
who ? KNOWINGLY AND
WILLFULLY ?
REQUESTS or OBTAINS A MEDICAL RECORD
? UNDER FALSE
PRETENSES OR THROUGH DECEPTION or
? KNOWINGLY AND WILLFULLY
? DISLOSES A MEDICAL
RECORD
? in violation of this subtitle
? is
guilty of a MISDEMEANOR ? This
subsection does NOT apply to an officer or
employee of governmental unit that is
conducting a CRIMINAL investigation.
31
PUBLIC/GOVERNMENT RECORDS
32
PUBLIC RECORDS AND PRIVACY ? virtually EVERY
MAJOR CHANGE IN LIFE is recorded somewhere in
government document ? birth
certificate ? school enrollment ? social
security number issued ? personal
identifiers ? medical/immunization record
? drivers license ?
magnetic strip containing personal identifying
information ? work permit ?
school/academic record ? marriage
license/divorce records ? house/property
bought/sold ? vehicle purchased/registered
with State ? tax payments ?
income ? property tax ?
professional licenses ? death certificate
? many public records/documents contain
PERSONAL IDENTIFYING INFORMATION ? some public
records readily available to self/others and may
even be posted online ? some require
sufficient identification before review, e.g.
birth records ? others do NOT
require identification, e.g. property records or
court records ? various public records are
routinely consulted/examined by ?
employers ? insurance companies/financial
institutions ? attorneys ? law
enforcement ? various requests to view public
records/documents may/may not be subject to
public information laws depending on the
type of record
33
? EXAMPLES OF INFORMATION THAT MAY BE CONTAINED
IN PUBLIC RECORDS/DOCUMENTS ? BIRTH
RECORD ? NAME OF CHILD ?
NAME OF PARENTS ? DATE AND TIME OF
BIRTH ? CITY OF BIRTH NAME OF
HOSPITAL ? ATTENDING PHYSICIANS NAME
? STUDENT RECORD ?
NAME/DATE OF BIRTH/HOME ADDRESS/HOME TELEPHONE
NUMBER ? BIOGRAPHICAL INFORMATION
? FAMILY INFORMATION ? PHYSIOLOGY
? RELIGION ? ACADEMIC
ACHIEVEMENT ? PHYSICAL/MENTAL ABILITY ?
MOTOR VEHICLE RECORD ? PERSONAL
IDENTIFYING INFORMATION ? PHYSICAL
DESCRIPTION ? NOTATIONS REGARDING
PHYSICAL/MENTAL CONDITIONS ? ISSUED
DRIVERS LICENSE NUMBER ? PHOTOGRAPH
? CONVICTIONS FOR VIOLATIONS ?
TRAFFIC ACCIDENT HISTORY

34
? access to public records in Maryland is
controlled under State Government Article
Title 10 - Governmental Procedures Subtitle 6
Records Part III Access to Public records
parts of which state ? 10-611.
Definitions (c) Custodian means
(1) official custodian or
(2) any other authorized individual who has
physical custody/control of a public record
(d) Official custodian Official custodian
means officer/employee of State or of political
subdivision who, whether or not
officer/employee has physical custody and control
of public record, is responsible
for keeping the public record. (f)
Personal information (1) Except
as provided in this Part III, personal
information means ?
information that identifies an individual
including an individuals ? address
? drivers license number
? any other identification number
? medical or disability information
? name ?
Social Security number ?
photograph/computer generated image ?
telephone number
35
? 10-613 Inspection of Public records
(a) In general (1) ...a custodian
shall permit person/government unit to inspect
any public record at any
reasonable time. (2)
inspection/copying of public record may be denied
only to extent provided under subtitle
(b) Rules or regulations To protect
public records and to prevent unnecessary
interference with official business each
official custodian shall adopt reasonable
rules/regulations that...govern timely production
and inspection of a public record.
(c) Designation of specific types of
public records Each official
custodian shall consider whether to
(1) designate specific types of public records
of government unit that are to be made
available to any applicant immediately
upon request and (2) maintain
current list of types of public records that have
been designated as available to
any applicant immediately upon request.
36
(g) Public record (1) Public
record means original/any copy of any
documentary material that
(i) is made by unit/instrumentality of State
government or political subdivision or
received by the
unit/instrumentality in connection with
transaction of public
business and (ii) is in
any form, including
? card ? computerized record
? correspondence ? drawing
? film/microfilm ?
form ? map ?
photgraph/photostat ? recording ?
tape (3) Public
record does NOT include a digital photographic
image or signature of an
individual or the actual stored data thereof
recorded by the Motor Vehicle Administration.
37
? 10-615 Required denials In general
A custodian shall deny inspection of public
record/any part of public record if (1)
by law public record is privileged or
confidential or (2) inspection would be
contrary to (i) State statute
(ii) federal statute/regulation issued under
statute and has force of law
(iii) rules adopted by Court of Appeals or
(iv) order of a court of record.
38
? 10-616. Required denials. Specific RECORDS.
? Unless otherwise provided by law
custodian (of records) shall deny inspection of
public RECORD as provided in this
section ? Adoption records ?
Welfare records ? Letters of Reference ?
Circulation records/other item/collection/grouping
of information about an individual ?
Gifts ? Retirement records ? Certain
police records criminal charging documents ?
Personnel records ? Hospital records ?
Student records ? RBC records ? Maryland
Transportation Authority records ? Higher
education investment contracts ? Recorded
images from traffic control monitoring
systems ? Motor Vehicle Administration records
containing personal information ? TR 12-111
TR 12-112 ? Records pertaining to arrest
warrants ? Maryland Transit Administration
records ? Department of Natural Resources
records containing personal information ?
Application for renewable energy credit
certification or claim for credits ?
Surveillance images
39
? 10-617. Required denials. Specific
INFORMATION. ? Unless otherwise provided
by law custodian of records shall deny
inspection of part of public record as
provided in this section ? Medical and
psychological information ? Sociological
information ? Commercial information ?
Financial information does not apply to salary
of public employee ? Information systems
security of ? Licensing records ?
Suspected collusive or anticompetitive
activity ? Notary publics ? License
application containing Social Security Number
e.g. marriage license ? Public record
containing personal information




40
? 10-624. Personal records (a)
Personal record defined In this
section personal record means public record
that names or with reasonable
certainty otherwise identifies individual by
identifying factor such as (1)
address (2) description (3)
finger or voice print (4) number
(5) picture. (b) Requirement of
need (1) Personal records may
NOT be created unless need for information has
been clearly
established by unit collecting records.
41
? 10-626. Unlawful disclosure of PERSONAL
records. (a) A person including
officer/employee of governmental unit is liable
to individual for actual damages
that the court considers appropriate if court
finds by clear/convincing evidence that
(1) (i) person willfully and knowingly
permits inspection/use of public record in
violation of this subtitle
and (ii) public record
names/with reasonable certainty otherwise
identifies individual by
identifying factor such as
1. address
2. description 3.
finger or voice print
4. number or 5.
picture or (2) person willfully
and knowingly obtains/discloses/uses personal
information in violation
10-616 (p) Motor vehicle Administration records
containing personal
information of this subtitle.
42
? 10-627. Prohibited acts CRIMINAL
penalties (a) Prohibited acts
A person may not (1) willfully
or knowingly violate any provision of this
subtitle (3) by false
pretenses/bribery/theft gain access to/obtain
copy of personal record
whose disclosure to person is prohibited by this
subtitle (b) Criminal penalties
A person who violates any provision of this
section is guilty of ?
MISDEMEANOR ? on
conviction is subject to a fine not exceeding
1,000.
43
IDENTITY THEFT - HOW IT OCCURS

Sources

National Organization for Victim
Assistance (NOVA)
Federal Trade
Commission
Maryland Attorney Generals
Office
Privacy
Rights Clearinghouse

44
IDENTITY THEFT - HOW DOES IT OCCUR? ?
personal information is ? illegally
accessed/removed from existing records by
employee ? medical records ?
employment records ? scholastic records
? obtained by reviewing available
public/government records ? obtained
from home/business computer by TRICKERY
? Internet ?
hacking ?
unsolicited e mail/attachments
? free downloads of programs
? social networking sites
? information
becomes public by user intent or by default
?
personal information posted by others viewing
individuals site ?
unsecured E-commerce transactions ?
telephone solicitations ? other LOW TECH
METHODS ? DUMPSTER DIVING ? CHECK
FRAUD ? THEFT ?
BURGLARY ? THEFT FROM VEHICLE
? PURSE/WALLET SNATCHING ?
MAIL THEFT ? SHOULDER
SURFING
45
? IMPROPERLY DISCARDED COMPUTER EQUIPMENT
? digital copiers ? hard drives ?
SKIMMING ? capturing electronic
information encoded on a financial card using
electronic device ? typically
during a LEGITIMATE transaction ? PHISHING
SMSHING VISHING ? PHISING use of
email/letter to deceive victim into providing
information such as
account numbers/passwords/personal identifying
information ? SMSHING use of
email/letter/mobile phone text messages to
attract users to fraudulent
websites/phone numbers or download
malicious content ? VISHING use of
telephone to deceive victim into providing
personal information ? UNSECURED WEBSITES
? personal/sensitive information is passed
over unprotected websites ?
http// UNSECURED ? https//
SECURED
46
? SOCIAL NETWORKING - PEER TO PEER SPYWARE
BOTNETS - BLUEJACKING ? SOCIAL
NETWORKING websites where individuals
PLACE/SHARE personal information ? PEER
TO PEER file sharing programs that allow users
to share files
? commonly used to share music and/or
video files
? allows thieves to seek/obtain/remove
files on computers in network
Examples

? Limewire or Kazaa
? SPYWARE software allows thief to gain
access/control of victims computer
? used to
capture keystrokes (keylogging) to reveal
passwords for
financial accounts
? capture on-line
financial transactions ? BOTNETS
malicious software that takes over a group of
computers for criminal purposes
such as spamming/phishing emails
? BLUEJACKING use of wireless device to
gain access to Bluetooth enabled wireless device
to
access data stored on device ?
WARDRIVING use of wireless network-detecting
device/antenna to access unsecured
wireless networks
? networks
typically used by businesses to transmit personal
identifying
data ? RADIO FREQUENCY
IDENTIFICATION device allows remote scanning of
identifying

information from victim

? convenience store/gas
station/EZPass
47
EXAMPLES DIGITAL COPIERS E-COMMERCE
48
IDENTITY THEFT - DIGITAL COPIERS ? digital
copiers commonly found in offices/businesses
including pay-per-copy businesses, etc ? since
2005 hard drive installations in midsize/large
digital photo copiers routine ? hard drive
stores image of any document scanned/copied
? unencrypted data remains until hard drive is
full ? when hard drive becomes full it
overwrites old files with newer ones ? many
business photocopiers use modem/are connected to
office network ? disposal of photocopier with
personal information stored on hard drive exposes
individuals personal information to
theft/fraudulent use ? no guarantee
that pay-per-copy business uses
? disk scrubbing software PRIOR to disposing
of used copiers ? encryption
software to prevent copied/scanned data from
being stored ? hard drives reclaimed by
identity theft suspects after copier has been
disposed of ? Maryland Law - Personal
Information Protection Act (PIPA) requires
businesses that maintain personal
information to ? protect information and
DISPOSE OF IT IN MANNER THAT RENDERS IT
UNREADABLE ? applies to paper
records/records maintained on computers/other
devices with hard drives ? improperly
disposing of individuals personal information
violation of Marylands PIPA ? in event of
security breach notice must be given to consumer
in writing or by telephone to most recent
telephone number as soon as reasonably
practicable following investigation ?
business also required by Maryland Law to notify
Office of Maryland Attorney General
49
E-COMMERCE ? 2008 survey by Pew Organization
revealed that ? 74 of adult Americans are
Internet users ? 93 of adult
internet users have conducted some type of
financial/commercial transaction over
the Internet ? 66 of on-line
Americans have purchased a product online
? 64 have made some type of travel
reservation ? 39 bank online
? 24 used classified ads on such
sites as Craigs list ? 26 have
participated in an online auction ?
17 have paid to access digital content
? 11 have purchased/sold stocks online
? prevailing attitudes of
e-commerce shoppers ? 78 of users agreed
that it is convenient ? 68 of users
agreed that it saves time ? 75 of users
agreed that they do not like giving their credit
card number or personal information
online
50
E-COMMERCE ? victims provide personal
identifying information about self during
E-COMMERCE transactions ? name ?
address ? credit/debit card information ?
many fraudulent websites set up to appear to be
legitimate ? once fraud/theft discovered victim
is faced with 3 challenges when reporting and
following through on prosecution ?
because of remote nature of Internet ?
locating/identifying suspect ?
may operate in other countries
? suspects develop new tricks to stay ahead
of law enforcement ? determining
jurisdiction in which to prosecute suspect
? obtaining restitution ? users/consumers
need to take responsibility for own risk
management strategy ? use only CREDIT card
for online financial transactions
? debit cards normally do not provide
protection from fraud ?
access to checking account may result in entire
checking account balance
being lost ?
use of CREDIT card allows victim to dispute
unauthorized charges ? reputable businesses
normally use secured websites with up to date
security certificates ? web address with
letter s after http in address bar
? indicates financial information will be
encrypted during transmission ? businesses
legitimately buy/sell user information to each
other ? DATA MINING by way of Web bugs
? reputable online auction sites issue fraud
alerts posted by online
51
HOW STOLEN INFORMATION IS USED

Sources

National Organization for Victim Assistance
(NOVA)
Federal Trade Commission

Maryland Attorney Generals Office

Privacy Rights Clearinghouse

52
HOW STOLEN INFORMATION IS USED ? identity
theft often part of larger criminal scheme
? involves other statutory prohibitions against
credit card fraud/computer fraud/mail fraud
etc. ? TWO MAIN MOTIVES FOR IDENTITY THEFT
? FINANCIAL GAIN ? CONCEALMENT OF
TRUE IDENTITY ?
PERSONAL HISTORY ?
PAST CRIME/CRIMINAL HISTORY ? TYPICAL
ILLEGITIMATE uses for stolen personal identifying
information ? open ? NEW
CREDIT CARD account ?
landline/CELLPHONE account ?
UTILITIES account to obtain services
? CHECKING account to write bad checks
? create counterfeit checks/credit/debit cards
using other individuals identity ? file
for bankruptcy under victims name to avoid
paying debts/avoid eviction ? take over
existing insurance policies/make false insurance
claims ? take out loans such as
auto/personal/mortgages ? submit
fraudulent tax returns to collect refunds ?
submit applications for social security numbers
? apply for/receive services from various
government agencies/other organizations
? medical treatment ? use
victims name/information for identification when
stopped by law enforcement/charged with
crime/traffic offense ? use stolen IDs
to obtain credit/access to existing
accounts/services
53
SCOPE OF IDENTITY THEFT/FRAUD


SOURCES

U.S. Department of
Justice
Federal
Trade Commission

Privacy Rights Clearinghouse

Javelin Strategy and Research
54
? national crime victimization survey conducted
by U.S. Department of Justice entitled
Victims of Identity Theft, 2008 highlighted
following ? estimated 11.7 million persons
experienced at least one type of identity theft
in 2-year period ? 5 of all
persons age 16 in United States ?
unauthorized misuse/attempted misuse of credit
card was MOST PREVALENT type of identity
theft ? reported by 10.1 million
persons age 16 ?
6.2 million experienced fraudulent use of
EXISTING credit card account ? 4.4 million
persons reported fraudulent use of BANK
accounts ? 1.7 million victims reported
fraudulent misuse of personal information to open
NEW account ? 39 of identity
theft victims believed they knew how identifying
information was obtained ?
30 believed the theft occurred while making
purchase ? 618,900 victims reported misuse
of personal identifying information to commit
other crimes ? fraudulently
obtaining medical care ?
fraudulently obtaining government
benefits/services ? providing
false information to law enforcement during
crime/traffic stop ? 1.8 million
persons experienced MULTIPLE types of identity
theft usually involving ?
unauthorized use of combination of EXISTING
accounts such as ?
credit cards ? checking
accounts ? savings
accounts ?
telephone/on-line accounts
55
? personal information most likely to be
compromised ? FULL NAME 63
? PHYSICAL ADDRESS 37
? SOCIAL SECURITY NUMBER 32 ? while
still relatively small amount (4) HEALTH
INSURANCE INFORMATION is increasing target
for fraud ? number of NEW credit card
accounts opened using stolen information
increased to 39 of all identity fraud
victims ? 33 from 2008
? NEW on-line accounts opened fraudulently
increased more than 50 ?
new e-mail payment accounts increased 12
? EXISTING CREDIT CARDS were increasingly
targeted ? 75 of card fraud
involved existing credit cards ?
existing debit card fraud decreased 2 to 33
? 29 of fraud victims reported that
NEW mobile phone accounts had been opened
56
? Federal Trade Commission reported following in
its annual publication entitled Identity
Theft Consumer Complaint Data for 2009 ?
278,078 self-reported consumer complaints
involving identity theft filed with Federal Trade
Commission - Consumer Sentinel Network
from January 1 December 31, 2009
? 5,232 identity theft consumer complaints
from Maryland ?
Maryland ranked 11th nationwide in number of
consumer complaints per 100,000
? 91.8 complaints per
100.000 persons ? fraud complaints were
categorized as follows TYPE OF
FRAUD NATIONWIDE
MARYLAND ? CREDIT CARD
17 22
? GOVERNMENT DOCUMENTS/BENEFITS
16 12 ?
PHONE/UTILITIES 15
13 ? EMPLOYMENT
RELATED 13
8 ? BANK
10
14 ? LOAN
4
4 ? OTHER IDENTITY
23 24 ?
ATTEMPTED IDENTITY 6
7
57
? prior to mid-1990s police did not generally
regard identity theft victims as true crime
victims ? credit card companies
took financial loss ? victims rarely reported
loss/theft of credit cards to police because they
believed ? credit card company would
cover loss ? police could not/would
not help them ? IN 2008 ONLY 17 OF IDENTITY
THEFT VICTIMS REPORTED INCIDENT TO LAW
ENFORCEMENT ? 80 of identity
theft victims who did not report incident to
police offered a variety of
reasons for lack of contact
? most common being was
that victim handled theft in different way such
as reporting it to
credit card company/bank/other organization
? 19 believed that the police
could NOT help them ? number of victims
reporting identity theft to law enforcement is
increasing because of need to document
identity theft crime in order to resolve fraud
claims with creditors/banks/others ? reporting
of identity theft to law enforcement agencies has
significantly increased ? credit
card companies/other financial institutions
require victims to report identity theft
incidents to law enforcement as part of
IDENTITY THEFT AFFIDAVIT
? IDENTITY THEFT AFFIDAVITS include space for
police report number
58
ECONOMIC IMPACT OF IDENTITY THEFT
59
? ECONOMIC impact of identity theft broken down
into two types of financial loss ? DIRECT
loss ? monetary amount offender
obtained from misusing victims account/personal
information ? estimated value of
good/services/cash obtained ? INDIRECT
loss ? other costs accrued because
of identity theft ? legal
fees ? bounced checks
? miscellaneous expenses to victim
60
DIRECT FINANCIAL LOSS ? in 2008 62 of
identity theft victims reported direct/indirect
financial loss ? cumulative loss of
nearly 17.3 billion during 2 year period ?
percentage of victims that suffered any financial
loss varied by type of identity theft
? credit card 61 ? bank card fraud
70 ? NEW account fraud 48 ?
personal information fraud 24 ? 70 of
victims reporting MULTIPLE types of identity
theft experienced financial loss totaling over
4.1 billion over two year period ?
average DIRECT LOSS of 4,680

61
? DIRECT FINANCIAL LOSS ? 59 of
identity theft victims reported DIRECT FINANCIAL
LOSS totaling more than 16.6 billion ?
average of 2,400 per victim ?
approximately 16 of all identity theft victims
reported OUT-OF-POCKET personal losses
totaling over 4.1 billion over two year
period ? average of 2,228 per victim
? number of victims experiencing DIRECT
financial loss varied by type of identity theft
? 59 credit card fraud victims
? average loss
of 1,105 ? 68 bank card fraud victims
? 42 new account fraud victims
? average loss
of 8,110 ? 18 personal information theft
victims
? average loss of 2,289
62
INDIRECT LOSS FINANCIAL LOSS ? 11 of all
identity theft victims reported INDIRECT losses
totaling 1.04 billion ? average
reported INDIRECT LOSS of 788 per victim
? victims of fraudulent misuse of
personal information reported largest average
INDIRECT LOSS - 3,955
per victim ? victims of NEW account fraud
averaged INDIRECT financial loss of 7,250 ?
42 identity theft victims reported they spent a
day or less to resolve financial or credit
problems associated with the theft ?
27 spent MORE THAN A MONTH from discovery of
theft trying to clear up problems
63
NON-FINANCIAL IMPACT OF IDENTITY THEFT
64
NON-FINANCIAL IMPACT OF IDENTITY THEFT ? as
with all incidents of crime victim stress to
identity crime varied ? 11 did NOT suffer
from any stress ? 34 found the incident
MILDLY DISTRESSING ? 33 found it
MODERATELY DISTRESSING ? 20 found it
SEVERELY DISTRESSING ? level of emotional
distress on victims of identity theft varied by
type of incident TYPE OF IDENTITY THEFT
MODERATE/SEVERE STRESS
TOTAL IDENTITY 53 CREDIT
CARD 42 BANK ACCOUNT 59
NEW ACCOUNT
58 PERSONAL INFORMATION
67 MULTIPLE TYPES
60
VIOLENT CRIME ALL TYPES
55 ? victims of theft of PERSONAL
INFORMATION reported experiencing higher direct
negative impact on ? work ?
school ? family relationships than
those who experienced the unauthorized use of
credit card
65
? significant feature of identity theft is
REPEATED VICTIMIZATION of victim ? BY
REPEATEDLY ? USING STOLEN CREDIT
CARD ? TAKING OVER EXISTING
ACCOUNT ? USING STOLEN PERSONAL
INFORMATION TO OPEN NEW ACCOUNTS
? repeated disruption to victims
life ? inflicts
repeated emotional damage ? identity theft
victims may experience long-term/well-documented
pain/suffering such as ? harassment from
debt collectors ? banking problems ?
loan rejection ? utility cutoffs ?
employment denial because of credit problems ?
estimated cost to law enforcement ranges from
15,000 to 25,000 to investigate each case
of identity theft
66
PORTRAIT OF A VICTIM
67
? ANYONE CAN BECOME VICTIM OF IDENTITY THEFT
? NOT just affluent ? ANYONE WITH GOOD
CREDIT ? Federal Trade Commission has
described characteristics of average identity
theft victim ? spans ALL AGE CATEGORIES
? average victim age is 42 ?
victimization rates may be correlated to Internet
use ? may account for large number
of victims under 40 years
? 44 of identity theft victims
? seniors less likely to be victimized by
identity theft by computer
? more susceptible to telephone scams
? 18-24 year olds are slowest to detect
fraud ? least likely to
monitor accounts regularly
? as a result are fraud victims for
longer period of time ?
most likely to install anti-malware on computer
when they discover fraud ? most victims
live in metropolitan area but increasing number
of victims live in rural areas ? victims
typically do not notice crime for 14 months
? greater percentage of identity theft
victims live in higher income households
? more than 75,000 per year than in lower
income households ? similar percentage of
men and women experience identity
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