SARs and Fraud TSAB FBI - Bankersbankersassurance.net/yahoo_site_admin/assets/docs/SARs... ·...
Transcript of SARs and Fraud TSAB FBI - Bankersbankersassurance.net/yahoo_site_admin/assets/docs/SARs... ·...
SSA Todd Adams and SA Tonja Sablatura
Little Rock FBISARs and Fraud
LEARNING OBJECTIVES
1. Discuss WHO has to write SARs, WHEN should we write them, WHY write SARs, and WHAT you can do to help LE when writing SARs.
2. WHO are the victims and WHAT YOU should know about them.
3. SCAMS and FRAUDS YOU should be aware of.
WHO ARE REQUIRED TO FILE SARs?
• Many different types of finance-related institutions are required to file SARS:• Stock/mutual fund brokers• Check cashing and currency exchange bureaus• Casinos and card clubs• Dealers in precious metals and gems• Insurance companies• Car dealerships• Mortgage companies• Plus more…
Suspicious Activity Reports (SARS)
• WHAT QUALIFIES AS SUSPICIOUS?
• PLEASE KEEP DOING THEM!
• NOTHING IS SILLY• Money smells weird• Person does not want to fill out CTR paperwork and then decides
to structure afterwards• Out of country wires by someone without identification• Activity in account inconsistent with individual’s employment or
business purpose for account
WRITING SARs
• When writing SARs:• Fill out the whole form (i.e. if name only completed then
very difficult for us to do much with it…)
• Bottom Line Up Front (BLUF) – Brief statement of what the SAR is all about.
• In the body – describe what it is, facts, dates, amounts, and what we are dealing with…as organized as possible.
• Contact information in case we have additional questions
YOU ARE HELPING LAW ENFORCEMENT
• When writing a SAR, remember you are helping LE identify individuals, groups, and organizations involved in criminal activities:• Mass Marketing and Internet Fraud (too many to list…right?)
• Ransomware, CEO Takeover, Publishers Clearinghouse, Facebook…• Terrorist Financing• Money Laundering• Insider trading and securities fraud• Tax evasion• Counterfeiting
• SARs also help LE identify emerging trends and patterns associated with financial crimes.
Who are the Victims of Fraud?
EVERYONEPerpetrators are Masters of Social Engineering – well practiced in the art of Persuasion and Manipulation
Continually emphasize reward
Emphasize scarcity, urgency, and uniqueness
Continually increase monetary commitment
Develop relationship with victims
Not afraid to threaten or frighten the victim
Actual Number of Victims
KNOWN VICTIMS
UNKNOWN VICTIMS
Why Victims Don’t Report:Shame and Embarrassment
Perception that law enforcement won’t believe them or act on crime
Fear that family will assume control of finances, loss of independence
Suffer from cognitive impairments
Devastating Impact
…On Individual Victims: •Depression, withdrawal and isolation from family and friends
•Deterioration of physical and mental health
•Loss of life savings, home, job, independence
•Suicidal thoughts and actions….even physical harm from perpetrators
Devastating Impact
• On Family Members:
Loss of money and assets on which he/she may have been financially dependent
Must cope with family member’s loss, grief, financial dependence
Sense of anger and helplessness
• On Legitimate Businesses and Industries:
Change in purchasing and payment behavior, consumer suspicions of legitimate direct marketing promotions leads to losses in revenue
Exploits, undermines legitimate business processes
• On National Reputations of “Host” Countries: Adverse impact on image and reputation of countries and their citizens Discourages trade, investment, and tourism
Eluding Law Enforcement
UNCLASSIFIED//LAW ENFORCEMENT SENSITIVE
Use of “Pitch” Names and False Identification
Multiple Scams, Multiple Groups, Multiple Countries
Untraceable Communications
Use of Facilitators and Runners
Cash-Based Money Transfers
Sophisticated Money Laundering Techniques
Business Email Compromise (BEC)
• Hacked accounts via spear phishing
• Spoofed accounts mimicking the real account until one reviews the extended header or hovers over the address
• Spoofed accounts with slight domain variations• [email protected] vs. [email protected]
• Spoofed accounts made similar to legitimate accounts • [email protected] vs. [email protected]
Common Variations of BEC?
What do you do if you are a victim of BEC?• Request your financial institution to issue a “SWIFT recall”• File a SAR• For domestic institutions – request your financial institution
to send a “hold harmless” letter to the beneficiary bank
After three days the funds often-times transferred out of the beneficiary account. However, this is not always the case, and the FBI may still be able to pursue a criminal prosecution.
What do you do?
Funds wired within the last three days:• >$50,000 - Immediately report to FBI Little Rock• <$50,000 – Report to FBI via Internet Crimes Complaint Center (IC3) at
www.ic3.gov• Also consider notifying local law enforcement
Funds wired more than three days ago:• >$50,000 - Immediately report to FBI Little Rock & www.ic3.gov• <$50,000 – Report to www.ic3.gov
• Also consider notifying local law enforcement
What do you do?
IRS SCAM COSTS TAXPAYERS $15MM
What is Mass Marketing Fraud
• Mass Marketing Fraud exploits mass media communication, such as telemarketing fraud, internet fraud, and identity theft.
• Millions of victims every year and losses in the hundreds of millions.
Common Mass Marketing Frauds
LOTTERY/SWEEPSTAKES
Victims are told that they have won a lottery or sweepstakes in a foreign drawing. To collect the winnings, victims are told they must first pay various taxes and fees.
INVESTMENT FRAUD
Perpetrators deceive victims with promises of high returns in exchange for devoting
investment funds to the purchase of securities, real estate, stakes in oil drilling ventures, coins,
gems, and other commodities
Zibiah and Paul Gunter, arrested for role in scamming
15,000 UK victims of £35 million in Investment Scam
Common Schemes
• Fake Invoice Scams
• Nigerian Letter Scams
• Advance Fee Scams
• Overpayment Scams
• CEO Takeover Scheme
Other “Hot” MMF Scams
Dating / Romance
Scams
Charity Fraud
Counterfeit Check Schemes Targeting Attorneys and Businesses
Emergency Scams
MMF Scams Exploit Financial Crisis
Mortgage-Related Scams
Foreclosure Rescue Scams
Loan Modification Scams
Loan Forgiveness Scams
Debt Elimination Scams
Scams Exploit Financial Crisis
Debt Collection
Fraudulent Credit Card Offers
Fraudulent Loan and Grant Scams
Credit Counseling Scams FRAUDSTER
Scams Exploit Financial Crisis
Work-at-HomeMystery ShopperFranchise Scams
Multi-Level Marketing PlansFinancial Agent / Reshipper
EMPLOYMENT SCAMS
WHAT ARE YOUR QUESTIONS?
Thank You!