Important Issues
Identity theft related crime has been identified as the fast growing crime trend in America today. In 2004, the Federal Trade Commission identified the Phoenix metropolitan area as having the highest rate of identity related crime per capita of any other city in the nation. In order to make a positive impact, law enforcement and businesses must coordinate our efforts to better protect ourselves and the citizens we serve.
The Phoenix Police Department has responded proactively to this threat to our community. In 2004, The Document Crime Detail (DCD) was increased by six detectives and one supervisor, in order to bring additional resources to combat this alarming crime trend. The DCD is also currently participating with the FBI/Bank Fraud Task Force and the Postal Inspection Service Identity Crimes Task Force. The Document Crime Detail is dedicated to addressing this crime through aggressive investigative intervention involving other plain clothes investigative units and coordination with financial institutions and the hotel/motel industry.
The home computer has revolutionized the ability of the average criminal to involve themselves in identity related crimes. A large majority of the offenders are being identified as having illegal drug addictions and are utilizing identity theft to further their ability to afford these drugs.
These criminals are stealing mail in order to discover checks (routing and account numbers), credit cards and/or applications (items of mail containing personal information that can be utilized to obtain credit). By using check and ID writing software, offenders are making counterfeit checks and ID's in order to write checks for cash or to purchase retail items.
These suspects are also compromising the credit card industry by obtaining credit cards via the internet application process using stolen personal information. They are also obtaining stolen credit cards through mail theft, burglary from vehicle and other related crimes. Another form of credit card fraud occurs when the offender obtains the credit card numbers from discarded receipts, applications and other paperwork discarded into dumpsters by individuals and businesses.
While advances in technology and the advent of the internet have made it possible for businesses to become more user friendly, it also opened the door for the perpetration of fraudulent activity under cover of anonymity. With the adoption of the below listed business practices you can help to curtail fraud while still presenting a positive user friendly atmosphere for your customers and limit your exposure to civil liability through reckless handling of your customer's personal information.
How to protect your clients/customers
- Keep all documents containing personal information of your clients,
customers and employees under lock and key.
- When personal information is held within a computer, ensure that it
can only be accessed and tracked by authorized personnel using passwords
and is protected with an appropriate level of security/fire walls. When
the information has been transferred to the computer, any handwritten
information should be shredded.
- Shred customer personal or account information and receipts before
discarding them. Consider keeping shredders within reach of those employees
who handle personal/account information on a regular basis.
- Create policies to restrict the handling of customer information to
a limited number of employees.
- Customer personal information such as credit applications, sales receipts/carbon copies should not be temporarily kept within reach of the casual observer. This will help to deter theft by criminals or corrupt employees. Provide a secure receptacle for employees and citizens to throw out applications/receipts or provide informational signs advising them not to carelessly discard these documents.
How to protect your business from fraud
- When accepting credit applications or checks, require the applicant
to provide a finger print directly on the application or check. This
is common practice in the banking community and should be readily accepted.
This aids law enforcement with identifying exactly who presented the
documents.
- Install video surveillance in areas where business is conducted with
a "loop time" of at least one month. This will allow ample
time for the fraud to be detected and the suspect transaction to be
pulled for evidence.
- Video evidence along with a finger print is very good evidence and
reduces the possibility that employees would have to attend court.
- Require a photographic ID be presented during check and credit card
transactions, along with a finger print on the sales receipt and/or
check. Inkless pads are cheap and readily available for each register.
Debit card transactions utilizing a PIN number need not fall into this
category.
- If your business retails to other businesses utilizing a business
account number and company credit card listed in your computer, understand
that this information is often corrupted by ex-employees of the customer
business. Always require that your sales representatives call a responsible
party with the company to verify the transaction.
- If your business accepts telephone or internet orders, always utilize the 3-digit verification number printed on the signature line of the card. This number should not be recorded on the internet order form or receipts generated from sales. This ensures that the card itself is in the possession of the customer and isn't being stolen from a compromised recklessly discarded document.