HSI Financial Investigations - Community Alliance Credit Union€¦ · 10/04/2012 · •Review...

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Protecting America Against Illicit Trade, Travel, and Finance

David J. Gibson

Special Agent

Homeland Security Investigations

Community Alliance Credit Union – April 10, 2012

HSI Financial Investigations

HSI MISSION STATEMENT:

Protecting America from transnational criminal organizations

at home and abroad that threaten our borders, national

security and public safety.

HSI CORE VALUES:

HONOR: HSI Special Agents perform their duties

honorably and with dignity in a manner befitting the oath of

office they are sworn to uphold.

SERVICE: HSI Special Agents serve the nation proudly

and face challenge with courage and determination.

INTEGRITY: HSI Special Agents exemplify integrity by

adhering to the highest ethical and moral codes.

Homeland Security Investigations has a wide range of investigative authorities

and responsibilities to include:

• Money Laundering / Bulk Cash Smuggling / MSB’s

• Narcotics Smuggling / Trafficking

• Commercial Trade and Fraud

• Human Smuggling / Trafficking

• Transnational and Anti-Gang Enforcement

• Weapons Smuggling

• Export Enforcement

• Intellectual Property Rights (IPR)

• Cyber Crimes / Child Sexual Exploitation

• Immigration Document / Benefit Fraud

• Human Rights Violations

• Worksite Enforcement / Critical Infrastructure Protection


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In an Average Year HSI Special Agents*

• Initiate 126,425 new investigations

• Make over 25,141 criminal arrests

• Seize $422.6 million in currency and monetary instruments

• Seize nearly 1.9 million pounds of narcotics and other

dangerous drugs

• Seize $126.1 million of contraband and other illegal

merchandise

• Respond to 1,133,130 inquiries and calls for assistance from

other federal, state and local law enforcement agencies through

ICE’s Law Enforcement Support Center

* Based on FY10 statistics


265 Domestic Offices – 26 SAC Offices

Last Updated: 4/10/2012

Law Enforcement Sensitive

70 International HSI offices in 47 Countries

Homeland Security Investigations – Detroit, MI

Illicit Finance and Proceeds of Crime Unit

Identity Theft, What is it?



US Law

• 18 USC 1028A

– While committing a Felony violation (can be

fraud).

– Transfers, possesses, or uses, without lawful

authority an means of identification of another

person

– Penalized two (2) years incarceration

CONSECUTIVE to other charges


Michigan Law

• MCL 445.65

– A person shall not do any of the following

• With intent to defraud or violate the law

• Use of attempt to use ID information of another

person

• Commit an unlawful act, obtain goods/credit, a vital

record, telephone records, medical records, or

employment


Detection

How to know somebody has

stolen your identity.


Detection

• Unexplained withdrawals from your bank

account.

• Don’t receive your bills or other mail

• Merchants inexplicably begin refusing your

checks/credit cards

• Debt collectors call for debts that are not yours

• Unfamiliar accounts/charges on your credit

report


Detection

• Medical providers bill you for services you didn’t

use

• Health insurance rejects legitimate claim

because you have reached your benefits limit

• IRS notifies you that more than one (1) tax

return was filed in your name, or you have

income from an employer you don’t work for

• Notification from a company that they have had

a data breach


Detection • You are arrested for a crime that you did not

commit


Being Proactive

What to do if you suspect your

identity has been compromised.


Being Proactive

• Contact credit reporting companies and

place a fraud alert on your credit file.

• Check bank and credit accounts for

unusual activity.

• Obtain your free credit report from

www.annualcreditreport.com

• Review your credit report for abnormalities

http://www.annualcreditreport.com/


Immediate Steps

What to do when your identity has

been stolen.


Immediate Steps

• Monitor and document recovery progress

– Keep a log of all telephone calls.

– Send mail certified, not first class, and request

return receipt.

– Create a filing system for important papers.

Always send copies, never send originals.

– Create a timeline for important deadlines.


Immediate Steps

• Place an Initial Fraud Alert

– Equifax, 1-800-525-6285

– Experian, 1-888-397-3742

– TransUnion, 1-800-680-7289

• Renew every 90 days

– Record in your phone log

– Mark your timeline

– Keep copies of letters in your filing system


Immediate Steps

• Consider a Credit Freeze

– Locks creditors from receiving your credit

report.

– Some states Free to victims, others ~ $10

– You can still apply for credit, but it requires

lifting the freeze temporarily (some fees

apply).


Immediate Steps

• Obtaining a Credit Freeze

– Contact your State Attorney General

• www.naag.org

– Contact credit reporting companies

– Update your timeline and filing system

• If you pay fees, keep copies of

receipts/canceled checks as well.

http://www.naag.org/


Immediate Steps

• Obtain copy of your credit report

– www.annualcreditreport.gov

– Dispute any/all inaccuracies

• Contact businesses affected

– Ask for their fraud department

– Log telephone calls

– Send letter CERTIFIED MAIL

– Keep everything in your filing system

http://www.annualcreditreport.gov/


Immediate Steps

• Create an ID Theft Report

– Report incident to FTC

• www.ftc.gov

• Generates ID Theft Affidavit

– File a police report with local jurisdiction

• Bring ID theft affidavit with you

– Attach ID Theft Affidavit to police report

• ID Theft Affidavit + Police Report = ID Theft Report

http://www.ftc.gov/


Immediate Steps

• Consider Extended Fraud Alert

– Requires ID Theft Report

– Stays in effect for 7 years

– Six free credit reports annually

• 2 from each bureau

– Name removed from prescreen credit offers

for 5 years


Immediate Steps

• Acquire copies of all documents used to ID

thief to engage in transactions

– Assists law enforcement in their ID theft

investigation.


ATM/Debit/Credit Cards

• Contact card issuer immediately

– Liability goes up the longer you wait



• Liability limits based on reporting period

(Debit/ATM cards)

– 2 business days $50.00

– 2-60 business days $500.00

– 60 days + All funds taken



• Contact card issuer immediately

– Liability goes up the longer you wait

• Financial institution must initiate

investigation within 10 business days, and

report back to you within 3 days of

completing investigation. Some

investigations can take up to 45 days.


Checking Accounts

• Report to financial institution immediately. You

are NOT protected against these kind of losses

by federal law.

– Some UCC provisions do protect you.

• Cancel payments on all stolen checks.

• Contact TeleCheck and Certegy and request

that stolen checks be rejected by businesses.

– Telecheck 800-710-9898

– Certegey 800-437-5120


Checking Accounts

• If checking accounts were opened in your

name,

– Ask financial institution to close the account

– Contact Chex Systems and retrieve report of

accounts opened and inquiries, there may be

more

• Chex Systems 800-428-9623

• If a thief passes a bad check in your name

have your ID Theft Report ready.


Brokerage Accounts

• Contact investment broker

• Make a complaint to the Securities and

Exchange Commission

– www.sec.gov/complaint.shtml

– 800-732-0330

– SEC Office of Investor Education and

Advocacy

– 100 F Street NE, Washington, DC 20549

http://www.sec.gov/complaint.shtml


Debt Collectors

• Write to collector within 30 days of receiving

notice

– Inform victim of ID Theft

– Send COPY of ID Theft report

– TELL them to stop contacting you

• Collector must suspend collection until it sends

written verification of debt. If collector is a

contractor it must tell originating company you

are an ID Theft victim.


Income Taxes

• Usually a result of somebody using your ID to

get a job.

• Results in unreported/underreported income on

your legitimate tax return.

– Contact IRS and ask for ID Theft Affidavit Form 14039

– www.irs.gov/identitytheft

– 800-908-4490

http://www.irs.gov/identitytheft


Medical ID Theft

• VERY SERIOUS ISSUE with LIFE-

ALTERING/ENDING ramifications

– Thief’s blood type/allergies (lack there of) can

creep into your medical history.

– Inaccurate test results (for you).

– Illnesses you don’t have (but might end up

being accidentally treated for).

• All of this can also have life/health/long-

term care insurance ramifications as well.


Medical ID Theft

• Contact provider and request copies of ‘your’ medical

records.

• Provider REQUIRED to give them to you.

• If they refuse, contact person listed on Notice of Privacy

Rights listing or ombudsman.

• If that fails, contact US Department of Health and Human

Services

– www.hhs.gov/ocr


Medical ID Theft

• Demand that provider correct any

inaccuracies in medical records.

• Also, demand that healthcare provider

inform any labs, providers, testing

facilities, and/or hospitals to do the same

• If contacted regarding medical debts, see

section on Debt Collectors.


Child ID Theft

• Although rare, criminals have stolen and

used, undetected, the identities of children

for many years.

• In order to inquire on a child’s credit

history (or if one exists) certain

identification standards have to be dealt

with via the Credit Bureaus directly.

• See handout for details.


Criminal ID Theft

• Criminal is arrested and booked for a crime. In

order to evade law enforcement and the courts,

the criminal gives your identity to booking

officers.

• The result is you now have a criminal record for

a crime you did not commit or even know about.

• Could result in you being innocently arrested.

– Do NOT resist arrest.

– FULLY cooperate with resulting investigation to clear

your name.


Criminal ID Theft

• Contact law enforcement agency that made initial arrest.

– Give copies of photograph, identification documents, and submit

to a fingerprint analysis and DNA test.

– The fingerprint analysis will likely be the first thing to exonerate

you.

• Request a ‘clearance letter’ and/or ‘certificate of release’

from court or law enforcement agency.

– Keep copy of letter AT ALL TIMES. This is just like your driver’s

license.

• Also, inform your state attorney general’s office and

acquire an ID Theft passport if available.


Criminal ID Theft

• If the case has already been prosecuted, you may need

to do all of the above and hire an attorney. Your

attorney will be able to help you clear up your name on

resulting court documents.

• Many criminal records are sold to legitimate ‘information

brokers’. They typically conduct commercial criminal

background checks.

– Ask court and law enforcement agency for list of brokers

purchasing information

– Write to broker and have information corrected.


ID Theft Protection Services

• You can protect your personal information for

free without paying large monthly subscription

fees.

– Many are nothing more than credit monitoring.

– Others are blatant mass-marketing fraud and

prey on the fears of the public.

• Know EXACTLY what you are getting and

paying for.



Telemarketing Scam

• Scammer cold-calls victim claiming to be from

bank or credit bureau.

• Tells victim they have unauthorized charges on

their account or credit report.

• Tells victim they NEED to purchase ID theft

service.

• Steals account information (checking/credit card)

to process ‘payments’.



Telemarketing Scam

• Continually ‘slams’ account with preauthorized

check drafts and fraudulent merchant charges

until victim changes account number.

• Will then call victim again impersonating victim’s

bank to acquire new account number.

• Cycle repeats itself.



Telemarketing Scam

• You financial institution will NEVER call you on

the phone unsolicited and ask you for your

account information.

• If this EVER happens, hang up and contact your

bank’s primary customer service line to report

the incident.

• Wright down the exact date/time you received

the call.


Law Enforcement Investigation

• I am a victim of Identity Theft, and law

enforcement has initiated an investigation.

• What does this mean for me?



• You will probably be interviewed multiple times.

Always give truthful answers to the best of your

knowledge.

• Provide any documents and/or journals of phone

calls made or received.



• You have a right to know the status of the

investigation, but not all of the details. You will

typically be notified on significant events,

arrests, seizures, restitution, etc.

• You can contact the Officer/Agent for updates,

but information may be limited.

• Remember, every minute the Officer/Agent

spends updating you is a minute he/she is not

able to work on your case.



• You may be called to testify in court. If this

happens, you will receive a subpoena requiring

your appearance.

• Work with the Officer/Agent and the Prosecutor

prior to your testimony. The legal system can be

tricky, and it’s not like court-room dramas seen

on TV shows/movies.

• The prosecutor will help you make everything

quick and painless.

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Protecting America Against Illicit Trade, Travel, and Finance

Report unlawful activity to:

1-800-DHS-2-ICE 1-866-347-2423

www.ice.gov

HSI Financial Investigations - Community Alliance Credit Union€¦ · 10/04/2012 · •Review...

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Transcript of HSI Financial Investigations - Community Alliance Credit Union€¦ · 10/04/2012 · •Review...