By Mary O’KEEFE

“In 2016, 10% of persons age 16 or older had been victims of identity theft during the prior 12 months. For 85% of identity theft victims, the most recent incident involved the misuse or attempted misuse of only one type of existing account,” according to the Dept. of Justice.

The study by DOJ also stated that identity theft had increased from 7% in 2014 to 10% in 2016 and fewer than one in 10 identity theft victims reported the incident to police.

Identity theft is a growing problem and that is why it was the focus of a recent town hall sponsored by Assemblymember Laura Friedman. There were three experts on the panel, one who dealt with elder abuse and elder care issues, one who covered construction scams and another who dealt with identity theft in general terms from scams that involved credit cards to phone calls.

Last week, CVW highlighted the medical – elder abuse and elder care issues; this week, we take a look at scams relating to credit cards and the theft of other personal information.

“There used to be a saying that crime doesn’t pay,” said Detective Jason Ross, Glendale Police Dept. “That is absolutely wrong. This [financial] crime is very lucrative.”

He added that criminals can easily obtain identity information and steal thousands of dollars from people.

“This is considered a white collar crime,” he added.

The average sentences for those convicted of identity theft vary from one-year for state convictions to three years for federal convictions. For those arrested the first time for ID theft, probation is not uncommon. 

Ross asked the audience if a person is convicted of an identity theft crime, and is required to make restitution, “how are they going to pay for that?”

“Years back we apprehended somebody who flew out [to Southern California] from Ohio to commit crimes,” he said.

The man had been convicted of identity theft in Ohio and was on probation. Part of his sentence was to pay restitution of $3,500. But he was able to get permission to fly to California where he continued the only job he knew how to do … identity theft.

“After he was arrested [in Glendale] I asked him how he was [planning] on paying that restitution. He said, ‘Come on, man; you know what I do,’” Ross recalled. “To pay his restitution during his probation he was committing more crime.”

Ross said the best defense against identity theft scams is to get the criminals off the street; however, many of those committing these types of crimes know very well what the penalties are and how far they can go with their crimes.

One of the scams Ross spoke about dealt with emails, including those of people who share their email passwords. After gaining access to email accounts, criminals will duplicate emails from businesses used by the victim, like from a bank that could include copying that business’ logo. Correspondence can be sent to the victim from what looks like a legitimate business that may elicit additional information. Criminals can find out information, including mortgage information, from their victim. 

Ross gave an example of victims receiving emails from what they thought was their bank concerning their escrow.

“[Criminals] will send an email pretending to be the banking institution,” he said. “They [tell] the victim there is a change in the wiring information on the closing escrow.”

The victim, thinking this is the real bank or lending institution, follows the false instructions. It may take days before they discover their funds have been routed to an account unrelated to the bank.

Ross added many times those who commit identity theft get their victims’ personal information by stealing from mailboxes. He advised people to retrieve their mail as soon as they can and not to leave outgoing letters at their mailboxes for their postal worker to pick up.

Other scams include people calling their victims on the phone and creating a scenario in which they have either thought they have won money or they owe money. Scams include fraudsters stating they are representatives of non-profit organizations, like police and fire foundations, soliciting “donations;” others claim they are calling about unpaid utility bills, which the resident is certain were paid or the IRS is calling and threatening to have the resident arrested for non payment. Scams include telling residents they have won the lottery yet they don’t remember purchasing a ticket. There are always new and creative scenarios.

“The grandpa/grandma scam is when someone calls a person and tells them their grandson or granddaughter is in trouble and needs money,” Ross said.

This scam usually starts with a parent, most likely a grandparent, picking up the phone to the voice of a young man or woman crying, “Grandma” or “Grandpa.” Many times the grandparent will immediately respond by saying their grandchild’s name and asking what’s wrong. The minute the scammers have that name they are off and running with a story that the grandchild is either arrested, in an accident or in some type of trouble that requires money to fix.

One of the scams that has most recently been in the media is a frightening scenario in which parents receive calls from criminals who claim they have kidnapped their son or daughter.

“The caller may allege your daughter [or son] has been kidnapped and you hear a female screaming in the background,” according to a release from the National Institutes of Health.

The caller will typically keep the victims/parents on the phone so they cannot verify the location and welfare of their loved one. The victims will be given instructions on how to wire the funds to “free” their child.

“You may be ordered to stay on the line until money is wired. The caller may claim not to have received the money and may demand more payment,” according to the statement.

Between 2013 and 2015, investigators in the FBI’s Los Angeles Division were tracking virtual kidnapping calls from Mexico – almost all of these schemes originate from within Mexican prisons. The calls targeted specific individuals who were Spanish speakers. A majority of the victims were from the Los Angeles and Houston areas, according to an FBI release.

The criminals usually ordered their victims to wire ransom payments; however, according to the FBI, there were two people in the Houston, Texas area who were ordered to pay larger amounts totaling about $28,000. The victims were directed to make money drops.

The FBI has been aware of these “virtual kidnapping” frauds for over two decades and have made arrests; however, the scam does continue.

“The success of any type of kidnapping scheme depends on speed and fear,” according to the FBI.

FBI suggestions on protection against becoming a victim for the virtual kidnapping scheme can be found on our website www.cvweekly.com at the end of this article.

Next week we will cover the construction scams covered by the Contractors State License Board.

  Mary Okeefe