Tools And Tricks Of The Criminal Trade: How To Spot And Stop Identity Theft Tactics

Doesn’t it seem like every time you open the newspaper, or rather double-click on your web browser icon, there’s another article about how America is falling behind in the world?  Education, health care, life expectancy, technology, and of course economic growth are just some of the many areas the United States once dominated and now must play second fiddle to a more alpha country.  It’s like nothing will go our country’s way anymore.  Aside from apple pie baking and overpriced school tuition, it seems like there’s not much America can say they’re number one in these days.  I mean other than crime, of course.  That’s one area where the barriers to entry are non-existent and the kingpins can be anything from Italian American mobsters to Armenian American gangsters.

Who would’ve ever thought this one was coming?  I grew up on movies like The Godfather, Boyz In Da Hood, and New Jack City.  It’s nice to see that at least among thieves in America racial diversity doesn’t seem to be a problem.  And in an odd way it’s sort of comforting to see the face of crime in America perpetually changing over the years.

This Armenian American criminal enterprise was able to milk $35 million dollars from the US Medicare system and successfully bill over $100 million over the estimated course of only 4 years – that’s a big chunk of change.  What’s more interesting is that this organized crime group didn’t get their money through extortion, drugs, or any of the other traditional criminal methods attributed to mafias.  The group scammed Medicare by employing one of the largest and most complex identity theft rings in the world.  Times sure are changing.

The really scary part about all of this was how easy and efficient this group was able to accomplish their goal.  Essentially they stole the identities of thousands of real patients and doctors, set up fake clinics and billed Medicare for reimbursements for fake treatments.  The ID theft ring also employed similar methods to cheat auto insurance companies, too.

“But how did these mobsters acquire so many people’s IDs to begin with?” you may be wondering.  That’s a question I was pondering, too.  Fortunately, having just attended a conference on identity theft, it’s a question I can answer.  That way you can not only know how it was done, but how to prevent it from happening to you.

Here are the top four identity theft tactics (yes, I’m aware that four is an odd number for a list):

1)      Mailbox Interception

So much vital information is delivered via the mail system.  Credit cards, driver licenses, medical benefits cards, and so forth.  It’s amazing the things people trust to a generally unlocked box.  Thankfully, sensitive mail usually comes in unmarked indiscrete envelopes.  Unfortunately, ID thieves know this, too, and will stalk mailboxes to extract all the sensitive goodies within.  Rural mailboxes are especially vulnerable targets because they are normally in desolate and unguarded areas.  It may seem like there isn’t much you can do to prevent mail theft short of hiring a person to stand watch over it all day.  But there is one easy deterrent method: install a lock slotted mailbox.  No one wants to work hard, criminals included.  And a locked mailbox is a headache most criminals won’t want to deal with, especially considering all the easy unlocked mailboxes in the world.

2)      Dumpster Diving

Identity thieves aren’t afraid to get a little dirty if it means a good payday.  Bank statements, bills, tax document, receipts, even account catalogs can provide enough personal information for thieves to use for their scams.  Don’t make it easy for them and buy a good cross cut paper shredder.  You don’t have to burn your sensitive documents and toss them in the sea to ensure your privacy is protected because a mound of confetti is a puzzle no one wants to put together.

3)      ATM Skimmers

This is a new one, but scary and effective nonetheless.  Identity thieves essentially place a device over the card reader on an ATM.  The device captures the data on your bank card’s magnetic strip and is designed to look like part of the ATM.  A hidden camera is installed next to the ATM to capture a victim’s pin number.  These are also covertly designed to look like something inconspicuous, such as a bank brochure holder.  But not to fear, as fortunately most of ATM skimmers out there today are pretty sloppily designed.  So you’ll probably be able to spot one if you saw it.  However, if you don’t trust your senses, do what I do every time I use an ATM and grab the card reader and nearby brochure holders.  Skimmer devices are designed to come off fast, so pulling on one will usually make it come off easy.  Also, stay away from private ATMs as some better funded thieves have been known to manufacture and place fake ATMS for the purpose of stealing identities.  The other reason you should stay away from private ATMs is because even the real ones are a rip off.  Who in their right mind would pay a fee to withdraw their own money?

4)      Phishing Emails and Websites

This one has been around since the internet’s popularization and has received enough press for me to not have to go through a lengthy explanation.  Basically identity thieves will send out fake emails posing as legitimate institutions, such as a bank, and ask recipients to verify their password and user ID.  This is usually accompanied by the threat that failure to do so will result in the victim’s account closing.  Users who click on the links in the bogus email are then directed to a phony website that steals information.  The methods employed vary greatly, but the important thing to remember to prevent theft is to not respond to these emails.  Every company out there today won’t ask for your private information.  They don’t need to because if you’re a customer, then they already have it.  But if you’re really unsure, remember to do your due diligence and call into the company itself to check if your email from them is real or fake.

Have you been the victim of an identity thief or know someone who has?  Feel free to share your stories below along with any other thoughts or opinions.