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Identity Theft, Nigerian Fraud, and Cross Border Fraud. What it
is, How it works, and how to protect yourself:
A Presentation by Matt Smith. President of Litchfield County Computer, L.L.C.
Identity Theft
What is Identity Theft
• Identity theft is when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
• 9.3 million Americans were victims of identity theft in 2005 alone. This totalled to 52.6 billion dollars in losses.
• Only 1 in 700 identity thieves ever get caught.
How Criminals get your Information
• Business records get stolen• Shoulder Surfing• Dumpster Diving• Theft of mail• Pretending to be someone of authority• Internet based attacks (known as online identity theft)• Social Security Number• Skimming• Phishing• Diversion of bills/records to another location• Photocopiers
How Criminals get your Information
• Prank Calls
How Criminals get your Information: Internet based attacks • Credit card and other personal information
is stored in a database by an online merchant.
• These databases require Internet access in order to operate.
• The database is broken into, allowing for large amounts of personal information to be stolen.
How Criminals get your Information: Not as secure as you
think• Many people that shop online are familiar with
the lock on their browser that indicates a secure connection.
• This is a security misconception, the data is only encrypted while it is being sent to the merchant. Once it is sent it is stored in plaintext form and can be stolen.
• It could also be stolen from the shopper via various means (shoulder surfing or a virus)
The TJX Security Breach
• TJX is the parent company of Marshalls, TJMAXX, and several other retail stores.
• Sometime in the summer of 2005, two attackers broke into the wireless network of the Marshalls in St. Paul, MN and Miami, FL.
• Once they were inside the store’s network, they were able to break into TJX headquarters.
• A confirmed 94 million credit and debit card numbers were stolen. This is the second largest data breach in U.S. history.
The TJX Security Breach
• The mastermind behind the breach was a man by the name of Albert Gonzales.
• Mr. Gonzales was also one of the heads of Shadowcrew, an ID theft Internet Mafia that was broken up by the USSS in 2004
• While he was helping the USSS take down Shadowcrew, he was plotting his next attack – TJX
TJX/Heartland Security Breach
• Mr. Gonzales also masterminded the Heartland credit card processor security breach in which a confirmed 130 million credit card numbers and the magnetic stripe data off the cards were stolen – this is the largest data breach in U.S. History
• Mr. Gonzales has now been sentenced for his parts in the TJX/Heartland security breaches.
How Criminals get your Information: Social Security Number
• Your Social Security Number is a unique identifier.
• Because of this it’s often used as the primary key that identifies individual records in a database.
• The SSN is a powerful tool. If a criminal has your SSN it can be used to get other personal information about you.
How Criminals get your Information: Social Security Number
• Your Social Security Number is a unique identifier.
• Because of this it’s often used as the primary key that identifies individual records in a database.
• The SSN is a powerful tool. If a criminal has your SSN it can be used to get other personal information about you.
How Criminals get your Information: Skimming
• Skimming is the act of running a credit card though a device that is designed to capture and store the information on many credit cards for easy access later by a computer.
• You can also skim a card by writing down the card information on a piece of paper when the card is out of sight.
How Criminals get your Information: Skimming
• Skimming attacks often occur in restaurants and other places where your credit card must be taken out of your sight to be scanned for payment.
How Criminals get your Information: Phishing
• Phishing is when someone tries to get your information by putting a fake banking (or other site) on the Internet. Once the site is online the phisher will send out spam emails looking for victims.
• These spam emails will look and sound official. However they are merely traps to get you to reveal your personal information.
How Criminals get your Information: Phishing
How Criminals get your Information: Phishing
How Criminals get your Information: Phishing
How Criminals get your Information: Photocopiers
• ID Theft via photocopier is a very new threat (March, ’07)
• Photocopiers made in the last 5 years have the same hard drives that computers do.
• These hard drives are used to store every document the copier has ever copied. This data has very little chance of being overwritten.
How Criminals get your Information: Photocopiers
• These hard drives can be stolen from the copier, revealing personal information.
• They also become a problem after the copier is disposed of.
• Sharp and Xerox make security kits. However, the security kit must be applied to the copier.
• Be very cautious about what you copy on a public copier.
How Criminals get your Information: Prank calls
• Criminals will sometimes call you asking you to give them the very information that they need to steal your identity.
• They will pretend to be someone of authority.
• Should you receive a suspicious call, locate a known good number for the calling institution and call them back.
How Criminals use your Information
• Diversion of your credit card bill.• Open new credit and/or bank accounts.• Forge checks and/or debit cards.• Take out car loans and buy cars (very
common).• Set up phone or cell service.• File bankruptcy in your name.• Commit crimes in your name.
Signs of Identity Theft
• You don’t get your normal bills• Getting credit cards and account
statements that you didn’t apply for• Creditor tries to repossess a car you don’t
own• Police contact you after “you” commit a
crime• Being denied credit for no reason• Sudden unexplained calls from collection
agencies
If Your Identity is Stolen
• 1. Contact your local Police Department and have them file a police report. Although they will not be able to do much else other than file a report you will NEED a police report for later steps to help prove that there has been a crime. Make sure that you get a copy of the police report.
• 2. Cancel all accounts where the suspicious activity was seen. This includes credit and debit cards.
If Your Identity is Stolen
• 3. Contact the 3 credit bureaus. They are http://www.equifax.com, http://www.experian.com, and http://www.transunion.com. They will place a fraud alert on your account(s). If you skip this step, you run the risk of the identity thief being able to reopen the accounts you had closed in step 2.
• 4. Contact the FTC at http://www.consumer.gov/idtheft and file a report.
If Your Identity is Stolen:
• 5. Contact your creditors and inform them of the situation. Provide copies of your police report if requested.
How to Protect Yourself
• Make sure no one is looking over your shoulder when entering sensitive information.
• Shred your sensitive trash.
• Never allow your credit card out of your sight when a payment is being made.
• If your mail is stolen, report it immediately to the post office. Get a locking mailbox if possible.
How to Protect Yourself
• If you are not sure if an official sounding communication is legitimate, check directly with your bank, credit card company, etc.
• Shop or bank online as little as possible.• If you notice that you are not getting your bills
contact your creditors immediately.• Do not copy sensitive information (tax returns)
on a public copier.• Be very careful in giving out your SSN. The only
people that should need it are State and Federal agencies and your employer.
How to Protect Yourself
• Use good computer security: Keep your antivirus and antispyware software updated and scan your computer regularly.
• Avoid websites that are likely to infect your computer with malware.
• Use a pop up blocker.
• Use strong passwords and change them frequently.
How to Protect Yourself
• You can opt not to receive unsolicited credit offers in the mail by calling (888)5-OPTOUT
Nigerian Fraud
What Is Nigerian Fraud
• Nigerian Fraud is a type of scam where you send the scammer a sum of money in order to receive something in return (usually a large sum of money).
• The initial contact is usually made via email, although other methods (fax, snail mail) can be used.
• There are many variants of Nigerian Fraud.
Variants of Nigerian Fraud
• The most common form of Nigerian Fraud involves you being asked to help the scammer move a large sum of money out of the country in exchange for a portion of the money. The scammer will ask for money to help with fees involved in moving the money.
Variants of Nigerian Fraud
• Another form of Nigerian Fraud is the lottery scam in which the scammer claims that the victim has won a lottery and needs to pay “processing fees” in order to receive the winnings.
• The reshipping scam is also common. This is where a scammer will ship stolen goods to a victim so the victim can ship them to another location in return for receiving a sum of money.
Variants of Nigerian Fraud
• The reshipping scam is especially hazardous for the victim because as soon as the victim receives the stolen goods the victim is an accomplice to a crime.
An Example of Nigerian Fraud
How to Protect Yourself
• If you get a Nigerian scam email in your inbox, don't respond to it.
• Be careful of any “Work from home” type job offers. These are often used to hide reshipping scams.
Cross BorderFraud
What is Cross Border Fraud
• Cross Border Fraud is a fairly new type of fraud that takes place across the borders of neighboring countries.
• It usually involves telephone and telemarketing scams.
• What happens is a scammer or group of scammers will set up a “boiler room” in one country and use it to launch scams against victims in the neighbor country.
A Real Example of Cross Border Fraud
• Case occurred here in Woodbury.
• Scammer in Canada called an elderly resident.
• Said that her granddaughter was stuck at the border for having contraband and needed $3000 to cross the border
• Scammer knew names of the family
• You can guess the outcome
A Real Example of Cross Border Fraud
• Since this case occurred, other cases have happened in Connecticut.
• It's believed that the scammers get their information on their victims through identity theft.
How to protect yourself
• Watch out for the example scam described here. It's a very hot item with boiler rooms right now. If you are unsure contact your family members and check up on them.
• Be wary of any unsolicited telephone offer. It could be a scam, JUST SAY NO
Any Questions
