In America, cases of insiders using personal data for various types of fraud are becoming more frequent. One of their favorite targets is the area of credit. Last week, Florida police discovered a gang engaged in just such machinations. InfoWatch experts warn of a possible increase in cases of credit obtained on the basis other people’s credentials in Russia as well.
American police uncovered an eleven-man criminal network operating in the Broward district, Florida. The group was using stolen personal data to obtain credit from local banks. According to The Miami Herald, over the course of their activities – which began in early 2002 – the fraudsters had acquired some 12 million dollars. Several members of the gang are already in police custody, but others are in hiding in locations, including Jamaica. The US is negotiating their extradition.
Credit fraud is one of the fastest growing areas of crime in the US. It is a pressing problem not only for specific states, but for the country as a whole. This is part of the reason why the federal law-and-order agencies are participating in the investigation. The police are now uncovering the criminals’ networks and methods in order to fill cracks in the system.
The police have noticed that in numerous cases fraudsters are working in groups. Typically, several insiders combine forces and pool information, which makes them more effective, less conspicuous and less vulnerable. The document which serves as the basis for a fraudulent identity can be anything. For example, the members of a known gang used another person’s driving license on a number of occasions. In other cases, they appeared to pay people for the use of private information. However, it later became clear that this was, in fact, data obtained from insiders.
The fraudsters often made real estate deals. Houses and flats bought on credit on the basis of other people’s documents were then sold for ready cash. On average, each such deal was worth around 200,000 USD. Similarly, the criminals would rent accommodation under false names while they were planning future operations.
Denis Zenkin, InfoWatch’s Marketing Director says, “The case shows how easy it is to use personal data for various criminal activities. Moreover, the insider can use such data himself, or sell it to interested parties. Without doubt, in the West, there is a very real problem of identity theft at the hands of insiders. However, we Russians have nothing to be complaisant about. With the spread of mortgages and consumer credit in the country the number of related crimes will only increase.”
Source: The Miami Herald
