Credit Card Fraud

Technology should make our lives easier but unfortunately complications happen. Identity theft such as credit card fraud is a problem that many people have encountered. Identity theft is committed by people that we know. “... According to the FTC's 2003 survey of identity theft, about 14 percent of victims claim to know the perpetrator” (Combating Identity Theft, 2007). Individuals or groups that are involved in identity theft find it to be a lucrative endeavor because they can easily gain monetary and material assets as well as medical and tax benefits.

Also, identity thieves gain access to crucial information and enact illegal activities by going over unshredded confidential documents, engaging in the misuse of private information acquired at the work place, changing someone else's address deliberately and indiscreetly to intercept confidential mail, stealing wallet and laptops that contain sensitive information, and obtaining information through hacking, illegal software, phising, pretexting and skimming. Loss of funds and credit violations can cause an unsuspecting person to feel helpless, frustrated and angry.

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Laws such as Identity Theft and Assumption Deterrence Act (18 USC 1028), Aggravated Identity Theft (18 U. S. C. 1028A) and (18 U. S. C. 1029) still remains to be ineffective. This is because obtaining and retaining investigators, rotating schedule of detectives, difficult process of training an investigator, existing multiple jurisdictions, and the complex nature of tracking an identify theft makes it a persistent problem. Identity thieves seem like they want easy money without putting in constant and consistent work.

All an identity thief needs is ingenuity, patience and inconspicuous methods to acquire thousands of dollars in an instant.

Hence, engaging in illegal activities enables them to make electronic withdrawals or transactions, thereby gaining wealth in a matter of minutes (About Identity Theft). They can also “take out a loan in your name... open a new phone or wireless account in your name... rent a house or get medical services using your name... use your name and Social Security number to get government benefits... [and even] file a fraudulent tax return using your information” (About Identity Theft).

To begin such an operation, there are some people who intentionally go over people's trash in the hopes of finding documents that will reveal credit card information, Social Security number and other related information (Identity Theft: How it Happens, 2000). Also, “[d]ishonest employees can obtain SSN's [Social Security Numbers] in the workplace by obtaining access to personnel files or accessing credit reporting data bases” (Identity Theft: How it Happens, 2000). In addition, a change of address is instituted by the identity theft to receive mails containing valuable information (Identity Theft: How it Happens, 2000).

Likewise, the conventional way of obtrusively gathering information also takes place. Instances of stolen wallet or purse are not uncommon (Identity Theft: How it Happens, 2000). “The thief either uses the information obtained or provides the contents to a crime ring” (Identity Theft: How it Happens, 2000). Also, devices like laptops and other portable equipments are taken to acquire vital information that will help an identity thief accomplish his desires (Combating Identity Theft, 2007). Similarly, electronic pilfering of important files occurs. Hackers

“steal information from public and private institutions... [by] intercept[ing] data during transmission, such as when a retailer sends payment card information to a card processor. Hackers have developed tools to penetrate firewalls, use automated processes to search for account data or other personal information, export the data, and hide their tracks” (Combating Identity Theft, 2007). Also, hackers make use of illegal software to “gain access to internet users' computers and data without the users' permission.... the use of enticing emails offering free pornographic images to a group of victims...

[launches] the installation of malware such as spyware or keystoke loggers” (Combating Identity Theft, 2007). Furthermore, identity thieves send deceptive emails that seem to come from legitimate institutions. The email will ask people to verify information such as “name, address, account number, PIN, and SSS,” which is known as phishing (Combating Identity Theft, 2007). Another tactic that is employed is pretexting, which is the “request [of] customer account information” by contacting individuals over the phone pretending to be “a financial institution or telephone company” (Combating Identity Theft, 2007).

While another technique used is skimming. Skimming involves the utilization of a skimmer, which is “an inexpensive electronic device with a slot through which a person passes or 'skims' a credit or debit card... the skimmer reads and records the magnetically encoded data on the magnetic stripe on the back of the card. That data then can be downloaded either to make fraudulent copies of real cards, or to make purchases when the card is not required, such as online [transactions]” (Combating Identity Theft, 2007).

Targeted victims of this unfortunate circumstance find out- a little bit too late- about these illegal activities. It is only when they receive their bank statements or get a phone call from credit companies that they become aware of the dire situation they are in. By then irreparable damages have been done already. The situation is aggravated because “they do not get effective help from the credit grantors, banks, and the CRA's. They describe difficulty in reaching the credit reporting agencies, and tell how they are treated disbelievingly by some creditors.

Victims also report that flagging their credit report for fraud doesn't always stop the impostor from obtaining more credit” (Identity Theft: How it Happens, 2000). Also, to make matters worst, victims “spend a great deal of time cleaning up the mess.... many... tak[e] the day or the week off work so they can make the necessary phone calls, write the letters, and get affidavits notarized. This costs them money as well... In a recent survey we conducted with CALPIRG, we found the average amount of time spent by victims to regain their financial health was 175 hours” (Identity Theft: How it Happens, 2000).

Hence, it is not surprising to encounter victims who feel helpless, frustrated and angry. Federal laws have been established to combat cybercrime such as identity theft. The violation of the Identity Theft and Assumption Deterrence Act (18 USC 1028), is when “someone knowingly uses the identification of another person with the intention to commit any unlawful activity,” constitutes as a federal felony (Identity Theft: How it Happens, 2000). The US Department of Justice handles such crimes (Identity Theft: How it Happens, 2000).

Moreover, the 18 U. S. C 1028, states that “ [f]raud and related activity in connection with identification documents, authentication features and information... [d]efines the knowing production, transfer and possession of false identification documents as crime. This statute also outlaws the possession of document-making implements such as computer files, hardware and software” (Identity Theft: How it Happens, 2000). In addition, imprisonment can also ensue for the offender. The Aggravated Identity Theft (18 U. S. C.

1028A) states that two year imprisonment can result from fraudulent activities. This act covers instance wherein a person “knowingly transfers, possesses or uses, without lawful authority, a means of identification of another person during and in relation to any felony violation of certain enumerated federal offenses' ” (Cybercrime Public and Private Entities, 2007). Also, 18 U. S. C. 1029 prohibits the “knowing production, use or trafficking in counterfeit or unauthorized access devices such as any card, plate code, account number, electronic serial number...

personal identification number,... that can be used to obtain money, goods, services, or any other thing of value, or that can be used to initiate a transfer of funds” (Cybercrime Public and Private Entities, 2007). Despite these measures in place, cybercrime is still a massive problem. This is due to the fact that hiring and retaining skilled investigators is a daunting task because private companies offer a higher salary and better benefits than the federal government (Cybercrime Public and Private Entities, 2007).

Also, “staff rotation policies in place at certain law enforcement organizations” make it difficult for law enforcers to fully attend and address the situation properly (Cybercrime Public and Private Entities, 2007). Besides, it takes a year to train an investigator to be competent enough to handle his own case (Cybercrime Public and Private Entities, 2007). Individuals have to be trained because federal agencies lack resources to employ professional investigators (Cybercrime Public and Private Entities, 2007).

In addition, multiple jurisdictions in place makes the matter even more complicated to handle (Cybercrime Public and Private Entities, 2007). “Law[s] used to address cybercrime differ across states and nations. For example, not all US states have anti-spam laws or anti-spyware laws... Further, jurisdictional boundaries can limit the actions that federal, state, and local law enforcement can take to investigate cybercrime that crosses local, regional and national borders” (Cybercrime Public and Private Entities, 2007).

Lastly, the complex nature of tracking an identify theft also poses a problem. “[C]ybercriminals can take steps to remain anonymous, making it difficult, if not impossible, to attribute a crime to them... [this is because] [c]ybercriminals can be physically located in one nation or state, direct their crime through computers in multiple nations or states and store evidence for the crime on computers in yet another nation or state” (Cybercrime Public and Private Entities, 2007).

Hence, cybercriminals are rarely caught and if they are apprehended, the “penalties are minimal... Community service and parole are the usual sentence” (Identity Theft: How it Happens, 2000). Cybercriminals exist because engaging in identity theft enables them to acquire money and benefits such as material assets, medical insurance and tax returns without working conventionally to obtain them. Also, they are rarely caught because the system in place is disorganized and ineffective; that is why identity theft remains a big problem.

A national and specialized agency should be set up to handle this situation. Resources should be allocated to this agency so that skilled investigators can be employed. This will speed the investigation process because individuals in the force do not have to be trained for a year to be able to effectively deal with cases. References: Privacy Rights Clearinghouse. (2000, July 12). Identity Theft: How it Happens, Its Impact on Victims and Legislative Solutions. Retrieved January 20, 2008, from http://www. privacyrights. org/ar/id_theft. htm

Federal Trade Commission. (n. d) About Identity Theft. Retrieved January 20, 2008, from http://www. ftc. gov/bcp/edu/microsites/idtheft/consumers/about-identity-theft. html#Howdothievesstealanidentity The President's Identity Theft Task Force. (2007, April 23). Combating Identity Theft A Strategic Plan. Retrieved January 21, 2008, from http://www. idtheft. gov/ United States Government Accountability Office. (2007, July 22). Cybercrime Public and Private Entities Face Challenges in Addressing Cybercrime Threats. Retrieved January 21, 2008, from www. gao. gov