Internet Fraud 1 55 of all fraud reports

Internet Fraud 1. 55% of all fraud reports the FTC received was Internetrelated complaints. 2. SSN misuse by electronic commerce on the Internet has become a national crisis. 3. Identity theft statistics show that it is one of the world's fastest growing crimes. 4. People can buy security software that informs them if someone is hacking into their system and who he/she is.

Computer Data Recovery ªA computer’s hard drive is comprised of many magnetic plates containing billions of magnetic points arranged in concentric circles. When data is written onto a hard drive, the magnetic points are either kept magnetized or demagnetized to create a pattern that the computer recognizes as symbols. Each eight points represents a separate symbol. ªThe hard drive is separated into different sections, known as clusters, for ease of finding information. The computer keeps a list (The Master File Table) with information of the documents contained in each cluster ªWhen a document is erased, it is taken off The Master File Table and the computer is told that the area of the cluster which the document used to hold the file is now available for use. DELETING A FILE DOES NOT CHANGE THE MAGNETIZED AREA IN WHICH IT WAS LOCATED!

Computer Data Recovery ªIdentity thieves can take advantage of computer data recover technology and files which have been deleted, but which have not been overwritten by new files. ª Search Methods of Identity Thieves ²“Logical searches” – looks through The Master File Tables for specific information (ex. jpg in the documents name, if searching for a picture ²En. Case forensic software and other forensics programs ²Hashkeeper and “hashing” – a data base and method that allows a person to type in a string of numbers which correspond to specific programs and documents. If the computer contains an exact match of the numbers then the computer contains the document.

Computer Data Recovery ª Data recovery is a process in which data is obtained from extracted from flawed files or impaired media devices such as hard drives or other computer parts. ª Overwriting the physical location of the file on the hard disk is the most effective way of deleting a file and preventing unwanted computer data recovery that can be used in identity theft. ª Formatting a drive overwrites the partition table instead of destroying the data.

Computer Data Recovery ª When deleting files, emptying your recycle bin, or formatting your hard drive, it only removes the hard drive’s table of contents. However, the data is still there and it can be found by many data recovery programs and free software downloaded from websites ª Everything in your hard drive includes the history of your internet use, passwords entered and other files that were saved for future reference ª Identity thieves look for donated, sold and discarded computer hard drives with information. Even a discarded diskette can contain your personal identity. Identity thieves can take the information out of these unwanted hard drives and diskettes and use it ª In order to prevent this type of identity theft, you can purchase hard drive wipe software so you can permanently delete files that you do not want others to obtain if you are selling or giving away your computer. ª To further prevent identity theft, old hard drives should be destroyed before discarding and to watch where you go to get your computer repaired

Financial Investigation ª Financial investigations frequently involve documents such as bank and motor vehicle records. ª The point of financial investigations is to trail the transfer of money. ª Law enforcers employ financial investigations to track down crimes, such as invasion of taxes, public corruption, health care scams, telemarketing scams and terrorist financing.

Financial Investigation ª Financial investigations rely heavily on documents. Any kind of records that record the movement of money are useful. ª Once obtained, the documents are analyzed to determine the various amounts of money and dates of transfer/storage. ª This can reveal evidence of criminal activity, especially when examining how the money was obtained(and from whom) and who it went to afterwards.

Financial Investigation 1. Financial Investigators 1. develop confidential financial profiles of companies/individuals who are prospective parties of financial transactions 2. Work closely with investment bankers and accountants 3. Search for assets in order to recover damages awarded by a court in fraud or theft cases ²Surveillance and Interview ²Usually have experience in law enforcement, insurance, the military, government investigative or intelligence jobs.

Financial Investigation ªWhat financial documents are used during financial investigations, and how? ²Tax returns: comparison of federal (IRS) tax returns and tax returns filed in the hopes of getting a loan often show disparities. (Form 1040 U. S. Individual Income Tax Return: information regarding assets and income. It can be used to prove or disprove information in insurance claims) ²Bank records: summary of all transactions (withdrawals, deposits, checks), per month. ²Loans: demonstrate financial obligations and patterns of purchasing behavior. ªHow is this information used? ²To create a financial statement about the suspect ²To monitor financial behavior and look for deviations from normal patters ²To assist forensic investigators in locating money and/or stolen good ªHow do forensic investigators get these documents? ²interviews, search warrants, written consent, court orders, subpoenas, or public access (as in a person or company’s web site or annual memos).

Document Examination ªDocument examination is a process that involves comparing a suspected document by using a scientific approach to a series of certified standards. ªThe document can be of many types, and the examiner’s job is to see if the suspicious document matches up with the known sources. ª During an examination, the examiner can check handwriting, signatures, the type of machine it was from, any stamps or labels, printing process, etc. ² The five most important necessities needed to analyze documents are eexcellent eye sight, hand lens, Stereomicroscope, Electrostatic Detection Apparatus (ESDA) and Video Spectral Comparator (VSC) ² A document can also contain latent fingerprints, so the document can also be tested for fingerprints. ² If as suspect leaves a ransom note, it can we can trace the note back to the suspect by analyzing it carefully, and then relating him to the case.

Document Examination ª Document examination is used to analyze an unknown document to a series of known standards. ª Illegal reproduction of handwriting occurs frequently and regularly appears in the legal court system. Comprehensive handwriting and signatures are constant “victims of forgery”, and are analyzed by a document examiner. ª Every typewriter has a distinct "signature" or “fingerprint“. This allows typewritten documents to be traced back to the typewriter that produced them. Color printers and photocopiers add a “stenographic pattern of minuscule yellow dots to the printout encoding the printer's serial number”. Another identification method is the ribbon ink analysis. ª Similar to identification of typewriters, printers and copiers can be identified by the imperfections which appear in the product. Banding contains information about the specific device's mechanical properties and with this, it is possible to figure out a printer’s name and brand. Sometimes, a specific printer can be identified by comparing their outputs to a set of already identified printers. ª Some high-quality color printers and copiers steganographically insert fine and almost invisible patterns of yellow dots into the printed pages as their identification code. The US government ask these companies to apply this “tracking scheme” to trace

Document Examination ª Handwriting examination by use of a powerful light and microscope enable law enforcement officers to find out if someone wrote something, which could be useful in the case of identity crimes as people often forge signatures ª Type examination uses a similar technique as handwriting examination, but also involves checking inks and paper types for falsifications and potential leads to where the documents may have originated ª Photocopied documents, such as identification can be compared with the originals to determine if they are the original, or examined on their own to find if they are photocopied ª Printed documents would be examined in the same manner as typed & photocopied documents, with more emphasis on the characteristics of what it was typed on and clues that could show where it came from ª Alterations and obliterations would be dealt with in a similar manner: both would be checked to reveal that they were in fact changed or removed, and then attempts would be made to discover what had been changed or obliterated. ² In identity crimes, this is highly important, as identity thieves could use documents written by the actual person, edit them, and use them to their advantage if unchecked

Document Examination ª Most “questioned” documents can be checked for identity theft by comparing handwritings of the doubtful documents with a real handwriting ª Graphologists are usually psychology experts who assess personality traits from handwriting samples ª Forgery specialists experts who analyze altered, obliterated, changed or doctored documents and photos using infrared lighting, spectrographic equipment, or digital enhancement techniques ª Forensic stylistics are like graphologists except they look at handwriting by looking at semantics, spelling, word choice, syntax and phraseology ª Handwriting analyst can tell whether a crime was committed through document examination

Fingerprint Evidence ª Forensic scientists employ fingerprint detecting techniques such as micro-X-ray fluorescence, a technique that does not damage the documents on which they reside, and other techniques such as dusting, which may damage evidence, but will certainly obtain results from suspected objects ª Preserving fingerprints can be just as important as collecting them, and in order to properly preserve them, everything must be properly photographed and video taped both before and after the fingerprints are obtained, and the actual fingerprint data secured in an unmolested place ª The development of fingerprints depends on a variety of things including the way they were found and which approach was used to lift them ² In dusting, they are simply lifted. In the instance of chemicals, they are lifted by isolating the area where they are suspected to be and developing that area with the proper chemicals or light ª Digital imagery plays an important role in fingerprint evidence because it provides a cheaper, faster and more convenient way to both photograph fingerprints as well as compare them by means of computer

Fingerprint Evidence ª A fingerprint is an impression left on a surface made by the ridges on a fingertip. ª No two fingerprints are the same making them very useful for setting tow people apart. ª Fingerprints can be left on forged documents; forensic scientists can then lift the prints with chemical methods like ninhydrin, iodine fuming, and silver nitrate. ª If a match is found between two prints, law enforcement officers can then apprehend the perpetrator.

Fingerprint Evidence ª What is a fingerprint? ² An impression left on a surface made by the ridges on a fingertip. ª Fingerprints are very valuable pieces of evidence in identifying the perpetrator because fingerprints are ² Unique; no two people have the same fingerprints. ² Unchanging; the fingerprints a person is born with are the fingerprints they will have for life ªFingerprints can be left on forged documents or on the surfaces near the forged documents ²Forensic investigators can lift the prints «with dusting powders, black or gray «with chemicals, including ninhydrin, iodine, silver nitrate, and Super. Glue ªIf eight to sixteen points on a suspect’s fingerprints correspond to points on the prints found at the crime scene, law enforcement agents can bring this suspect to court based on the fingerprint evidence * Fingerprints are the only piece of identity that cannot be easily stolen. *

Fingerprint Evidence ª Fingerprints are one of the best forms of physical evidence. A fingerprint can both identify the offenders and victims ª Fingerprints are usually searched for at the place where an individual’s identification was compromised, if possible ª Fingerprints on keypads, pens, doorknobs or any other place can be used against the identity thief ª University of California scientists have recently developed a novel method of detecting fingerprints based on the chemical elements present in fingerprint residue. It is known as micro. X-ray fluorescence, or MXRF ª MXRF shows the salts, such as sodium chloride and potassium chloride excreted in sweat, that way, it makes it possible to see the friction ridges in the fingerprint patterns ª Traditional detection method had been to treat the suspect area with powders, liquids, or vapors in order to add color to the fingerprint so that it can be photographed ª If positive identification of fingerprints can be recorded by the individual responsible at the time the identity was compromised, the one responsible can be prosecuted ª To minimize the risk of identity theft, in UK shops were protected by asking customers buying goods to submit a fingerprint to authorize a transaction when using a credit or debit card. The fingerprint is kept by shop in paper form for up to six months and if fraud was detected, police would have a fingerprint of the culprit

Federal Policy ª Identity theft is overseen by the FTC (Federal Trade Commission), the SSA’s Office of the Inspector General (Social Security Administration), the U. S. Secret Service, the FBI, the U. S. Postal Inspection Service ª Theses agencies now take precautions with issuing social security numbers and replacing cards ª The Identity Theft and Assumption Deterrence Act (Oct. 1998) makes identity theft a federal crime ² Under federal law identity theft is defined as when someone “knowingly transfers, possesses or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, or in connection with, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law” ª The Identity Theft Penalty Enhancement Act establishes penalties for identity theft

Federal Policy ª The Identity Theft Penalty Enhancement Act, a recent act from Bush’s presidency, has huge penalties for those who use identity theft to commit other crimes, including and especially terrorism ª The Fair and Accurate Credit Transactions Act established a national system of fraud detection. This provides a way to stop identity thieves before they accumulate too much debt in illegal purchases and a means for victims to make only one call to alert all three major credit rating agencies, allowing them to protect their credit rating ª The federal government prosecutes identity theft and fraud under a variety of federal laws. ² In 1998, Congress passed the Identity Theft and Assumption Deterrence Act. “This legislation created a new offense of identity theft, which prohibits knowingly transfer[ring] or us[ing], 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. This offense, in most circumstances, carries a maximum term of 15 years’ imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense. Schemes to commit identity theft or fraud may also involve violations of other statutes such as identification fraud, credit card fraud, computer fraud, mail fraud, wire fraud, or financial institution fraud. Each of these federal offenses are felonies that carry substantial penalties – in some cases, as high as 10 years’ imprisonment, fines, and criminal

New York State Policy 1. 2. 3. In October of 2002, Governor George Pataki made “identity theft” a crime in NYS by signing it into law legislation. The law provided penalties for actions that went into the category as identity theft which included unauthorized use of any sort of ID, credit cards, SSN, etc. Such a penalty was up to seven years in prison. Governor Pataki also made the Fraudulent Identification Task Force which targeted illegal manufacture of unauthorized passports, or forged licenses, and more.

New York State Policy ªNew York State has helped prevent identity theft by: ªAllowing victims access to transaction and application records. ªImplementing strict punishments for convicted identity thieves. ªPlacing Holograms on New York State ID cards, such as licenses to prevent the counterfeiting of IDs.

New York State Policy ª Provisions in New York State Law ª Individuals who feel their personal information could have been compromised have access to transaction and application records ª Holograms on New York State I. D. cards (i. e. driver’s license) to prevent identity counterfeiting ª Depending on amount of financial damage, or pain-and-suffering done to victim, an identity theft crime can result in heavy punishment. ª On cash register receipts there must be truncation of credit card info

California State Policy ª California State has helped prevent identity theft by: ª Requiring the shredding of information so that it is unreadable before disposal. ª Providing victims with access to transaction and application records ª Instating a credit freeze law

California State Policy ª More Provisions of California State Law: ªIssuing mandatory observations of fraud alerts on credit bureau reports ªCash register receipts must show truncation of credit card info. ªCompulsory observation of fraud alerts on State Credit Bureau reports. http: //caag. state. ca. us/idtheft/images/topcities. gif

California State Policy ª ª ª People must report right away to authorities if they think they are in danger of identity theft. For example, if a driver’s license is misused, the owner of the ID must report to the California Department of Motor Vehicles. California has a Privacy Protection Plan which helps reduce identity theft rates. Victims must also fill out a Identity Theft Registry.

City: New York City ª Mayor Bloomberg has signed three bills in May of 2005 regarding to identity theft. The first bill, Intro 139 -A further empowers the Department of Consumer Affairs to deal with businesses convicted of identity theft. ª Intro 140 -A requires for businesses or authorities that deal with the acquiring of personal identification to notify the police if they are suspicious of identity fraud. ª Intro 141 -A requires that a business or authorities be licensed if they deal with personal identification. They must also destroy any personal identification if a person doesn’t have any relationship with the business. ª

City: New York City ª City officials proposed about 10 bills in 2001 to protect consumers from the misuse of their social security numbers. ª One bill helped in increasing the penalty for identity theft in the second degree from a Class E to a D felony. Meaning the punishment is more severe ª Comprehensive measures are being put into effect to protect privacy data and tighten security gaps at credit reporting agencies ª Limited Access to Credit Information ª Truncate Credit Card Receipts

City: New York City ª New York City law provisions to help reduce incidents of identity theft include: ªCredit card companies generally must assume liability for debts incurred by identity theft ªTruncation of credit card information such as account numbers on cash register receipts. ªIdentity theft is punishable by law

City: Chicago ª The Department of Consumer Affairs in Chicago deals with consumer fraud, which includes identity theft A police report must be filed to be sent to the creditors to prove identity theft. ª The complaint can be filed to the FTC, which is a database of identity thefts for further investigations. ª

City: Los Angeles Policy The city of Los Angeles takes steps to protect its residents from identity theft such as: ª Credit Bureau reports must have observations of fraud alerts ª Credit card information on cash register receipts must be truncated ª Special designs on I. D. cards ª Public Service Announcements about protecting oneself from identity theft

Board of Education Policy 1. In order to protect the safety and security of students and teachers in New York City, anyone who wants to be employed by the Board of Education must have their fingerprints taken. 2. The Board also allows employees to obtain their own photo ID card. 3. The Board of Education requires that any new staff members be screened by the Office of Personnel Investigation. 4. If there any cases of identity theft, a report must be made to the Office of Inspector General of the U. S. Department of Education.

Board of Education Policy ª Information has recently been added to the Student Guide and the High School Counselor’s Handbook regarding fraud when applying for student loans. These popular publications are distributed to counselors and students all over the country. ª The Department intends to include tips for students on loan billing statements about identity theft and the protection of their information. This step in the fight against identity theft will reach about 2. 5 million student borrowers per month. ª The new link (www. ed. gov/misused) on the Department’s Web Site is a helpful resources for students concerned about identity theft. It includes hints on how to protect personal information and ways to detect and combat identity theft. ª The Department also has a hotline for people who suspect that they could be victims of student loan fraud. By contacting the hotline, 1 -800 -MIS-USED, the Department and its partners can begin investigation of students’ claims.

Board of Education Policy ªThe NYC Department of Education, beginning in September 2005 published a booklet on ‘Citywide Standards of Discipline and Intervention Measures. ’ as a method of setting a clear policy for illegal behaviors inside of schools. ªTheft, which includes identity theft, is considered a level 3 infraction, on the 1 -5 level scale. ªThese offenses, directly related to identity theft are punishable in all of the following manners.

Board of Education Policy ª the DOE’s Children Internet Protection Act (CIPA) requires students’ online activities to be monitored in order to make the discovery of identity theft crimes committed within the DOE and its schools easier to catch ª any internet identity theft crimes can also be found through the Department Internet Acceptable Use Policy, which gives users no privacy expectation in their personal files and records of online activity while using the DOE system ª according to the DOE, students who fail to provide school officials with proper ID are subjected to level 1 infraction punishments including conferences of in-school disciplinary actions such as exclusion from extracurricular activities ª students found misusing others’ property or information are subjected to level 2 infraction punishments such as a principal’s suspension ª plagiarism, considered a form of identity theft, is punishable by level 3 infraction punishments including the most severe: a regional superintendent’s suspension resulting in an extended 1 year suspension

Bronx High School of Science Policy ª In order to prevent outsiders from entering the school and to protect the students’ identity, each student of the Bronx High School of Science has an ID card. ª These ID cards have photographs of the students along with their personal information. ª Students must always carry their ID cards with them, and must show it to any teachers, deans, or student officials that ask for it. ª Each student must scan their ID card when they enter the school, and they must also present it for other actions such as borrowing books from the library.

Bronx High School of Science Policy ª Currently, no specific identity theft policy is published in school code ² School should explicitly state a policy on identity theft ª Measures school has taken to prevent identity theft include: ² Photo ID cards ² Personalized 9 -digit O. S. I. S. numbers ª Though students misplace or lose their ID cards frequently, reports of identity theft are infrequent.

Bronx High School of Science Policy ªAt Bronx Science, identity theft can be commonly described as plagiarism, as it is the most common form of identity theft that occurs in a school environment. ª Punishment for plagiarism includes notification of parents and colleges, and failing grades, though it varies from teacher to teacher. When plagiarism is “unintentional” teachers may give warnings without further punishment. ª Students assuming the identity of other students in a class when those students are absent provides grounds for heavier punishment. This punishment could be expulsion from the class and/or a dean’s referral.

The Most Effective Feasible ª more information should be Policy made available to the people of each city, state, and country regarding identity theft ª ID theft is a serious crime that should be punishable by a fine and imprisonment ª every person who commits ID theft should be made to pay for any loss sustained by their victims, any costs incurred by the victim in correcting his/her credit history, and any costs incurred from civil or administrative proceeding to satisfy debt, lost wages, attorney’s fees and more. ª the authorities in schools, cities, states, and the country should be sympathetic towards victims of identity theft rather than suspicious and should assist victims with filing reports and recovering their identities; they should also be better educated on ways to prevent identity theft and track down thieves ª more severe punishments should be established for ID thieves whose victims are elderly, minors, or disadvantaged ª publications should be made and distributed to warn people of the dangers of identity theft and inform them how to protect themselves ª all legitimate companies with identity information should have strong privacy policies and security systems to prevent thieves from obtaining others’ info as well as identifying info for themselves so that people can tell if representatives are legitimate or impostors ª internet monitoring is a cheap, easy, and effective way to prevent internet identity theft, and to catch thieves in the act

Credits Instructor: Ms. Mary Villani Student Coordinator: Aeli Cho Arianna Ho Sun A Yoon Leaders: Christopher Bae Susan Chen Aeli Cho Onnelly Delacruz Terri-Ann Grey Arianna Ho Eunge Jung Sam (Yong) Kim Nicole Lam Jordan Levine Dorris Ling Joy-Ann Mahabir Andrew Pabon Silvia Park Drew Schneider Tania Vasquez Derrick Yip Suna Yoon William Yoon Richard Zhao Darren Zue Production Staff: Susan Chen Vincent Dang Stephanie Dayrit Glenn Doherty Helen Fong Grayson Gmuco Julia Heifets Alexander Kennedy Chris Kyriakakos Bobby Lau Joshua Leavitt Daniel Lee Angela Lei Julia Lukomnik Joy-Ann Mahabir Nick Minadis Noha Osman Bangacha Rajun Vishal Ramratten Elizabeth Tam Karmun Tang Scott Topal Yi-Ting Wang

Researchers Dennis Almodovar David Alvarez William Arsenault Kyle Aaquil Atmore Vinusha Autar Sanu Babu Christopher Bae Oni Banks-Hunt Aman Birhanu Daniel Blonshteyn Amina Bobb Matthew Breines Kerry Ann Burke Griffin Burnett Maria Del Pilar Casal Michael Chan Stephanie Chan Michael Chelnis Michael Chen Susan Chen Sung Chiu Aeli Cho Dong Hyuk Choi Nelson Chow Rebecca Chung Sachio Cook Jon Marciano Cruz Xiao Yue Dai Angela Dallara Gon Man Dang Stephanie Dayrit Anthony Delgado Jesse Diasparra Glenn Doherty Max Engel-Streich Steven Fields Vilion Fok Helen Fong Sharon Forrest Sam Giller Grayson Gmuca Katherine Gorelko Jason Gorman Terry Ann Grey George Hamelos Amir Harel Proma Hassan Dayne Haskin Julia Heifets Arianna Ho Abid Hossain Ada Hung Maksim Ilyaguyev Mickheila Jasmin Eun Ge Jung Ping Kan Aman Katyal Jane Kelly Alexander Kennedy Nazmus Khan Joshua Kim Joyce Kim Yong Kim Hazem Kiswani Joshua Kozlovsky Ilya Kurkov Kai Kuroiwa Christopher Kyriakakos Nicole Lam Samuel Lam Eli Lamb Bobby Lau Joshua Leavitt Daniel Lee Tiffany Lee Angela Lei Ayesha Lewis Jordan Levine Doris Ling Julia Lukomnik Joy Ann Mahabir Perveen Manowar Kathleen Marean Candace Mashel Valeriy Matsiborchuk Kelley Mc. Donough Nicholas Minadis Samantha Montalvo

Researchers Michael Moore Holly Nordpodberesky Noha Osman Andrew Pabon Caleb Pan Silvia Park Joseph Penney Juan Carlos Perez Joshua Pozzuto Daniel Pyon Renee Ragin Bangacha Rajan Vishal Ramrattan Michael Riviera Owen Rogers Vincenzo Romano Chris St. Louis Jared Sapolski Henry Schiller Mary Schroeder Timothy Shek Angelica Singh Benjamin Spinrad Rebekah Souder. Russo Piotr Sowinski Erica Stumpf Elizabeth Tam Jacky Tan Karmun Tan Samuel Thode Scott Topal Alexander Trigoboff Catalina Valencia Emma Vargas Tania Vasquez Frances Viafara Gianni Villavicenio Tom Vouvoudakis Lauren Vriens Kristen Walkes Yi Ting Wang Maggie Wen Christopher Whylie Brandon Woo Cora Wu Fang Xu Jennifer Yin Derrick Yip Sun A Yoon William Yoon Allan Yu Kevin Yu Daniel Yuabov Jason Yuan Richard Zhao