this information.
These companies collect a wealth of information about consumers, including information as confidential as their medical histories.
The Internet provides the anonymity that criminals desire. In the past, fraud schemes required false identification documents, and necessitated a “face to face” exchange of information and identity verification. Now with just a laptop and a modem, criminals are capable of perpetrating a variety of financial crimes without identity documents through the use of stolen personal information.
In an investigation conducted in April 2001, Secret Service Agents from the Lexington, Kentucky, Resident Office, along with their local law enforcement 9 8
C H A P T E R 4
partners from the Richmond, Kentucky, Police Department, arrested a suspect who was operating an online auction selling counterfeit sports memora-bilia . During this investigation, it was learned that the suspect had fraudulently opened a number of credit card accounts utilizing the personal information of individuals who had participated in his auction on the Internet.
F A K E I R S F O R M S
In 2001 and 2002, a scheme appeared throughout the U.S. that used fictitious bank correspondence and bogus IRS forms to mislead taxpayers into disclosing their personal and banking data. The information was then used to steal the taxpayers’ identities and bank account balances.
In the scam, the taxpayer receives a letter, purport-edly from his or her bank, stating that the bank is updating its records to exempt the taxpayer from reporting interest or having tax withheld on interest paid on the taxpayer’s bank accounts or other financial dealings. According to the letter, anyone who does not file an enclosed form is subject to 31 percent withholding on the interest paid.
The bank correspondence encloses a form allegedly from the IRS and seeks detailed financial and personal data. Recipients are urged to fax the completed forms within seven days. Once they get the information, the scheme’s promoters use the information to impersonate the taxpayer and gain access to his or her finances.
9 9
T H E M E C H A N I C S O F I D T H E F T
One such form is labeled W-9095, Application Form for Certificate Status/Ownership for Withholding Tax.
This form requests personal information frequently used to prove identity, including passport numbers and mothers’ maiden names. It also asks for data such as bank account numbers, passwords and PIN numbers needed for access to the accounts.
This form is meant to mimic the genuine Form W-9.
However, the only personal information that a genuine W-9 requests is the taxpayer’s name, address and Social Security number or employer identification number.
Other fictitious forms include Form W-8BEN . In contrast to the legitimate W-8BEN, the fictitious one has been altered to ask for personal information much like the W-9095. Also used is a form labeled W-8888 .
The requested information in the fake form goes far beyond what anything anyone would wisely want to volunteer to strangers: a passport number, mother’s maiden name, account numbers and names, dates they were opened and date of the last transaction.
Legitimate IRS forms generally have an IRS processing center address on them as well as the IRS phone number. Beyond that, the IRS doesn’t ask for things like your bank passwords or insist that you fax things in to them.
100
C H A P T E R 4
Any such request should be a red flag .
M E D I C A L I D T H E F T
Taking advantage of e-commerce and insufficient safeguards on patient and physician information in hospitals and clinics, crooks have come up with sophisticated schemes to steal physician identities and walk off with millions of dollars.
In California, an ID theft crew allegedly defrauded the state’s Medicaid program of $3.9 million by using physicians’ stolen identities to order bogus tests—and then billing both Medicare and Medicaid for the tests.
Identity theft
These companies collect a wealth of information about consumers, including information as confidential as their medical histories.
The Internet provides the anonymity that criminals desire. In the past, fraud schemes required false identification documents, and necessitated a “face to face” exchange of information and identity verification. Now with just a laptop and a modem, criminals are capable of perpetrating a variety of financial crimes without identity documents through the use of stolen personal information.
In an investigation conducted in April 2001, Secret Service Agents from the Lexington, Kentucky, Resident Office, along with their local law enforcement 9 8
C H A P T E R 4
partners from the Richmond, Kentucky, Police Department, arrested a suspect who was operating an online auction selling counterfeit sports memora-bilia . During this investigation, it was learned that the suspect had fraudulently opened a number of credit card accounts utilizing the personal information of individuals who had participated in his auction on the Internet.
F A K E I R S F O R M S
In 2001 and 2002, a scheme appeared throughout the U.S. that used fictitious bank correspondence and bogus IRS forms to mislead taxpayers into disclosing their personal and banking data. The information was then used to steal the taxpayers’ identities and bank account balances.
In the scam, the taxpayer receives a letter, purport-edly from his or her bank, stating that the bank is updating its records to exempt the taxpayer from reporting interest or having tax withheld on interest paid on the taxpayer’s bank accounts or other financial dealings. According to the letter, anyone who does not file an enclosed form is subject to 31 percent withholding on the interest paid.
The bank correspondence encloses a form allegedly from the IRS and seeks detailed financial and personal data. Recipients are urged to fax the completed forms within seven days. Once they get the information, the scheme’s promoters use the information to impersonate the taxpayer and gain access to his or her finances.
9 9
T H E M E C H A N I C S O F I D T H E F T
One such form is labeled W-9095, Application Form for Certificate Status/Ownership for Withholding Tax.
This form requests personal information frequently used to prove identity, including passport numbers and mothers’ maiden names. It also asks for data such as bank account numbers, passwords and PIN numbers needed for access to the accounts.
This form is meant to mimic the genuine Form W-9.
However, the only personal information that a genuine W-9 requests is the taxpayer’s name, address and Social Security number or employer identification number.
Other fictitious forms include Form W-8BEN . In contrast to the legitimate W-8BEN, the fictitious one has been altered to ask for personal information much like the W-9095. Also used is a form labeled W-8888 .
The requested information in the fake form goes far beyond what anything anyone would wisely want to volunteer to strangers: a passport number, mother’s maiden name, account numbers and names, dates they were opened and date of the last transaction.
Legitimate IRS forms generally have an IRS processing center address on them as well as the IRS phone number. Beyond that, the IRS doesn’t ask for things like your bank passwords or insist that you fax things in to them.
100
C H A P T E R 4
Any such request should be a red flag .
M E D I C A L I D T H E F T
Taking advantage of e-commerce and insufficient safeguards on patient and physician information in hospitals and clinics, crooks have come up with sophisticated schemes to steal physician identities and walk off with millions of dollars.
In California, an ID theft crew allegedly defrauded the state’s Medicaid program of $3.9 million by using physicians’ stolen identities to order bogus tests—and then billing both Medicare and Medicaid for the tests.
Identity theft
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