Understanding Identity Theft and Crime

Defining Identity Theft and Identity Crime

• Identity theft involves stealing personal information for fraudulent activities
• Stolen information often includes name and Social Security number
• The information enables unauthorized individuals to open accounts, use services, or access medical care
• Identity thieves may use a victim's name and personal information when interacting with law enforcement
• Consequences of identity theft include damaged credit, lawsuits for someone else's debts, and incorrect medical records
• Identity crime involves stealing or misusing personal and financial identifiers for personal gain or to enable further criminal activity

Finding Identity Theft Statistical Data

• Insurance Information Institute provides data on identity theft and cybercrime
• The FTC's Consumer Sentinel Network also offers such data
• Identity theft via the FTC involves using someone's SSN or personal data to open accounts, make purchases, or obtain tax refunds
• The Insurance Information Institute reported the top five types of identity theft in 2019:
• Credit card fraud involving new accounts is common
• Miscellaneous identity theft includes online shopping, email, social media, medical service, insurance, and securities account fraud
• New mobile telephone accounts are often fraudulently opened
• Fraudsters take out Business and personal loans
• Car and Vehicle leases are acquired
• Texas was 4th in the state rank for identity theft reports in 2019, with 73,553 reports according to the FTC data

Types of Crimes Associated with Identity Crimes

• Identity crime facilitates other criminal activities by providing financing or anonymity
• These activities include mail theft, narcotics, financial fraud, weapons trafficking, homicide, terrorism, wire fraud, and computer crime
• Identity crimes may originate from seemingly unrelated offenses like robbery, theft, burglary, computer intrusion, or theft of documents
• Special forms of identity theft include tax, child, and medical identity theft

Meaning of Identifying Information and Telecommunication Access Device

• Identifying information identifies a person on its own or with other information
• This includes name, date of birth, biometric data (fingerprint, voice print, retina/iris image), electronic identification number/address/routing code, telecommunication information/device, and government-issued ID
• Telecommunication access device means any item that can access an account to obtain money, goods, services or initiate a transfer of funds

Current Trends in Identity Crimes

• Current identity theft trends involve using modern technologies
• Scams involve listening to phone calls, hacking computers, reading emails, and scams via telephone and email
• Criminals exploit careless online shopping and banking habits

How Identity Crime is Commonly Perpetrated

• Identity crimes occur through:
• Stealing wallets, purses, or briefcases containing personal identification
• Stealing mail with bank/credit card statements or pre-approved credit offers
• Submitting a change of address to divert mail
• Rummaging through trash ("dumpster diving") for personal data
• Fraudulently obtaining credit reports
• Finding personal information at home or shared online

Techniques to Procure False Identification

• Criminals use various sources that provide instructions on producing false documents
• FTC Scam Alerts provide resources

Federal Statutes Dealing with Identity Crimes

• The 1998 Identity Theft and Assumption Deterrence Act made it a federal crime to knowingly transfer or use identification without authority
• This includes unlawful activity that violates federal, state, or local law
• The 2004 Identity Theft Penalty Enhancement Act established penalties for "aggravated" identity theft
• Includes felony crimes, immigration violations, theft of Social Security benefits, and acts of domestic terrorism
• Courts must sentence two additional years for general offenses and five years for terrorism offenses
• The 2008 Identity Theft Enforcement and Restitution Act amended Title 18, U.S. Code, Section 3663(b)
  • It clarifies that restitution orders may include the value of the victim's time spent remediating the harm
  • It allowed federal courts to prosecute cases when the criminal and victim live in the same state

Define State Statutes Dealing with Identity Crimes

• Texas Penal Code §32.51: Fraudulent Use or Possession of Identifying Information
• An offense is committed if someone intends to harm or defraud and obtains, possesses, transfers, or uses:
  • Another person’s identifying information without consent
  • Information about a deceased person that would be identifying if they were alive, without legal authorization
  • A child’s identifying information
• There is a presumption of intent to harm or defraud if the actor possesses:
  • Identifying information of three or more people
  • Information concerning three or more deceased
• The presumption doesn't apply to commercial or governmental entities
• Penalties depend on the number of items involved:
• State jail felony: less than five items
• Third-degree felony: five to ten items
• Second-degree felony: 10 to 50 items
• First-degree felony: 50 or more items
• The offense category increases if committed against an elderly individual or to facilitate another offense
• Courts may order reimbursement to victims for lost income and expenses
• Actors may be prosecuted under any applicable laws
• Other relevant Texas Penal Code statutes: -Mail Theft -Fraudulent Use or Possession of Credit Card or Debit Card Information

Texas Penal Code §31.20 covers mail theft

• "Disabled individual" and "elderly individual" are defined by Section 22.04
• "Identifying information" is defined by Section 32.51
• "Mail" includes letters, cards, packages, or sealed articles delivered by a carrier that haven't been received or collected
• An offense occurs if someone intentionally takes mail from another's mailbox without consent
• Penalties vary based on the number of addresses:
• Class A misdemeanor: fewer than 10 addresses
• State jail felony: 10-30 addresses
• Third-degree felony: 30 or more addresses
• If the mail contains identifying information and the offense facilitates another offense under Section 32.51:
• State jail felony: fewer than 10 addresses
• Third-degree felony: 10-20 addresses
• Second-degree felony: 20-50 addresses
• First-degree felony: 50 or more addresses
• Penalties increase if the actor knew the addressee was disabled or elderly
• Actors may be prosecuted under any applicable laws

Fraudulent Use or Possession of Credit Card or Debit Card Information is covered by Texas Penal Code §32.315

• A "counterfeit credit card or debit card" falsely claims issuance, has an altered digital imprint, or mismatched account information
• "Credit card" and "debit card" are defined by Section 32.31
• "Digital imprint" means the digital data on a credit card, debit card, or counterfeit card
• An offense is committed if someone intends to harm or defraud and obtains, possesses, transfers, or uses:
• A counterfeit credit card or debit card
• The number and expiration date of a credit card or debit card without the account holder's consent
• The data stored on the digital imprint of a credit card or debit card without the account holder's consent
• If an actor possesses five or more of the items described by Subsection (b)(2) or (3), a presumption is invoked
• The presumption doesn't apply to commercial or governmental entities
• Penalties also vary on the number of items involved:
• State jail felony: less than five items
• Third-degree felony: five to ten items
• Second-degree felony: 10 to 50 items
• First-degree felony: 50 or more items
• Courts may order victim reimbursement
• Actors may be prosecuted under any applicable laws

Texas Code of Criminal Procedure Article 13.29 regarding Fraudulent Use or Possession of Identifying Information

• Allows prosecution in the county where the offense was committed or where the victim resides

Texas Code of Criminal Procedure Article 13.291 regarding Credit Card or Debit Card Abuse

• Permits prosecution in the county where the act occurred or where the victim lives

Texas Code of Criminal Procedure Article 55.02, Sec. 2a concerning Procedure for Expunction

• Allows a person to apply for expunction with the state attorney in the county of felony prosecution
• The application must be verified, include authenticated fingerprint records, and contain relevant information about the applicant and the arrest

Security Alerts

• A security alert on a consumer file notifies recipients that the consumer's identity may have been used fraudulently
• Consumers can request a security alert in writing or by phone with proper ID
• Consumer reporting agencies must place the alert within 24 hours
• Security alerts last for at least 45 days
• There is no limit to the number of security alerts a consumer can request
• At the end of the 45-day period, the agency must provide a copy of the consumer's file if requested
• Consumers can include a phone number for businesses to verify their identity

Security Freeze

• A security freeze prevents consumer reporting agencies from releasing a consumer credit report without express authorization
• Consumers must send a written request by certified mail with proper ID
• Agencies must place the freeze by the fifth business day
• Agencies must disclose how to place, remove, or lift the security freeze
• Agencies must send written confirmations with a unique personal identification number or password within 10 business days
• Consumers can request a replacement PIN or password in writing

Credit Records after Active Duty

• Active-duty alerts from the FTC add protection for servicemembers' credit records while they are deployed

Steps to File Identity Theft Reports

• Credit bureaus require a police report to block fraudulent information and repair credit reports
• Financial institutions also typically require a police report and affidavit of fraud

Identity Crime Incident Reports and Information Gathering

• Information from the report helps officers understand the incident, organize the investigation, and determine where evidence can be found
• Victims should gather bank and credit card statements, letters from creditors, and merchant account statements
• Victims should try to hand over credit reports from Equifax, Experian, and Trans Union with a subpoena if necessary

Identifying Offenses for Identity Theft Reports

• Confirm that an offense that is an identity theft
• Opening a new account using the victim's information without consent is usually be a case of identity theft
• The officer must determine jurisdiction, if possible
• Texas Code of Criminal Procedure 13.29 and 13.291 indicate the offenses of 32.31 and 32.51 may be prosecuted in the county that the crime occurred

Entities that should be Notified of an Identity Theft

• Notify the FBI if the a loss of more than $100,000, investment scheme or governmental fraud occurs
• Notify the U.S. Secret Service if someone is arrested in custody that is associated with the crime, or if any amount of identity crime devices are recovered
• Notify the U.S. Postal Service (USPS) and if it is a financial crime through the U.S. mail service.
• Notify Social Security Administration (SSA) if they misused a Social Security Program number for fraud
• Victims of this crime should reports made through the Federal Trade Commission (FTC) -- This is in reporting a federal crime and have records expunged
• The Texas Department of Public Safety (TxDPS) is responsible for the issuance of State driver's license and identification cards

Protecting Personal Information Against Identity Crimes

• Don't give out personal information over the phone unless you know the receiver
• Limit what you carry and leave your Social Security card behind

Securing checks and reading health statements

• Keep the amount of personal information off your checks.
• Always read your health statements
• Protect your online information and use encryption software when giving out secured information

What you can take to police

• You can notify police and make a report
• You can file for criminal activity that has happened with a driver license office
• You can notify creditors and merchants upon fraudulent credit card use

Other important measures

• Flag accounts upon suspicious activity
• Review Social Security benefits online
• Notify the U.S. Passport Agency