financial fraud & exploitation of the elderly · financial fraud & exploitation of the...
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Financial Fraud & Exploitation of the Elderly
Summer 2015 Elaine Dodd
Oklahoma Bankers Association
What Are We Doing Here at OBA? And Why?
• First, and only, association fraud division • Active since 2003 • Retired law enforcement with strong
background in training and networking • Rapport with law enforcement, seniors,
bankers and retailers all critical pieces • It’s great to be old, really
CAFEE - Coalition Against Financial Exploitation of the Elderly
APS
OK Securities
OK Bankers
Area-wide Aging/Long-Term Care
Ombudsman
Law Enforcement
OK Senior Law Resource
Center
Dedicated Prosecutors
OU Geriatric Researchers
TRIAD
Education, at every level • Education events/forums for and with:
– Bank staff (recognition, current scams, SARs, legal reporting)
– Law enforcement (partners like Hobby Lobby)
– Adult Protective Services (executive function) – Retailers – Community groups – Media as an important partner – And, most importantly here, Seniors
Education • Bonus benefit, it helps
with red flag requirements
It’s All About Networking (and Understanding SAR’s)
OK Chief of Police CLEET Recertification Training
Topics like Suspicious Activity
Report: Or, Can You Say, “Somethin’ Ain’t Right”???
So, How Does It (and Should It) Really Work?
• Mandatory reporters • Knowledge of SARs • Permissive Nature
– Some Do, All Can, None Must (Pre-mandatory level at least)
• Affects Profitability – Of Nation • We need numbers on exploitation
How Do We Get Current Info • It’s all about the networking • Numerous calls from banks and customers
every day • Law enforcement contacts • MAFIA (Metro Area Fraud Investigator
Association) and banker groups convened as needed
• Reaching out to internet gurus • Outbound calls to the fraudsters just to get
feel of what they are doing
Watch for What???
• Relatives or caregivers
• Charitable Donations • Home repair fraud • Postal Fraud • Bogus Prizes • Bank examiner scam
• Phishing • Internet
And what are those stories that resonate?
• Ed and AA sponsor concept – Isolation is a real part of the equation
• 10,000 is a magic number • Retired LE and 200,000 Dad • Aging banker • Poteau dreams • Elk City, Tulsa • No one seems to get the whole, epidemic
picture • OK bankers have been amazing to respond
Why are seniors targeted?
• They hold a disproportionately high percentage of the country’s wealth.
• Many live alone • Cognitively or physically impaired • Lack of a surrogate decision maker • Lack of knowledge on financial or legal issues • Many trusted friends or family are deceased • Overly trusting • Low risk and penalties for perpetrators
• Tends to be socially or physically isolated;
• Not necessarily wealthy; • Tends to be of advanced age; • May be vulnerable due to cognitive,
physical or sensory impairments that can limit ability to make reasoned decisions;
• May be dependent on the perpetrator.
VICTIM CHARACTERISTICS More Reasons to KYC (Know Your Customer)
Forms of Identity Theft: •Credit card fraud •Applying for loans in
someone else’s name
•Raiding bank accounts •Check fraud •Establishing utility service
using a stolen identity
•Applying for jobs while pretending to be someone else
Identity Thieves Need Personal Identifying Information:
• Bank account numbers • Credit card account numbers • Social Security numbers • Personal identification numbers (PINs) • Passwords • Stolen credit cards or checks • Dates of birth • Addresses and phone numbers
How ID Thieves Obtain Personal Information:
•Phone and Internet scams
•Stealing mail •Working with dishonest
employees with consumer information
• Searching through trash – dumpster diving
Shred, shred, shred
(Credit card offers, bank statements, any items with your personal information)
Physical Safety (Safe and Smart Shopping and Living)
Big 3 for Safety:
1. Check credit card statements monthly
2. Check bank statements monthly
3. Review Your Credit Report Each Year
Starting June 1, 2005 www.annualcreditreport.com 1-877-322-8228
If You Are an Identity Theft Victim
• Think like a police officer or lawyer • www.PrivacyRights.org – summary of how to
organize your files. • Financial fraud is a crime, file a police report – be
persistent • Contact your bank and creditors. • Contact the credit bureaus and place fraud alert. • Call the FTC hotline 1.877.ID THEFT or online
www.ftc.gov/idtheft. • Document and organize your case
What is this about Heartland/Global Payments, Target, Nieman, White
Lodging etc, etc… And what’s it mean to you?
Big Kudos and Thanks to our Buddy Brian Krebs, KrebsonSecurity.com
Alberto Gonzalez
Counterfeit Credit Cards Skimmers (Readers and Writers)
And Skimmers…In the Pump
Phishing, Vishing and now SMiShing (SMS Phishing)
Sample: Fraudulent Text messages are being sent to cell phones in Oklahoma:
“This is an automated message from XXXX bank.
Your ATM card has been suspended. To reactivate call urgent at 18775895978.”
Contactless Payment (AKA Touch and Go or
Wave and Pay)
Got a computer in your pocket? Then we need to treat it like one!
Unsecured WiFi’s
• Just say no!
876 Area Code Should this concern you
and why??? • Google and you will learn
it is Jamaica • They will claim to have
stateside offices • Now moving from
Western Union wires to pre-loaded cards (eg Green Dot and Mango)
Lottery / Sweepstakes Scam
Congratulations! You have won the “insert foreign country here” Lottery! Fees and Taxes Required Up Front “Loan” Secured to Help Pay Fees Past = Check Today = More ACH Stolen Funds from Hijacked Originator Accounts
On the topic of Caller ID SpoofCard.com
For Entertainment Purposes Only… Of Course
Social Engineering
Hi, I’m a gentleman from
Oklahoma, Tulsa!
Avoid tech support phone scams - Friendly Advice from Microsoft
– Offer to help solve your computer problems or sell you a software license. Once access to your computer, they can do the following:
• Trick you into installing malicious software and then charge you to remove this software.
• Take control of your computer remotely. • Request credit card information for phony services. • Direct you to fraudulent websites and ask you to
enter credit card and other personal or financial information there.
Payday Loan Scams are Booming (and Becoming More Threatening)
• ACS Common Thread • India accent also
common • “A cop will drag you to
the cold hard jail cell.” Right.
If your phone rings in the middle of the night, I’m betting your grandson is not really in Canada. Or in trouble, in jail. Or needing money!
I Have Your New Medicare Card…
And now I just need those numbers at the bottom of your check. Yeah…
Or, Trust Me I’m with the IRS. You owe money and I’m taking you to jail if you don’t pay. Now. <iframe width="560" height="315" src="https://www.youtube.com/embed/YPzwkJf4EWE" frameborder="0" allowfullscreen></iframe>
https://www.youtube.com/watch?v=YPzwkJf4EWE
From the real IRS: Phone Scams Continue to be Serious Threat, Remain on IRS “Dirty Dozen” List of Tax Scams for the 2015 Filing Season
And how about those charity calls and letters?
• Just Hang Up!!!
• Really!!!
• If they called, you don’t really know who they are.
Set up an online presence for your banking accounts – or at least monitor or have someone monitor to ensure no one else is doing so
Examples of tools offered On OBA.com, backlink available by request from [email protected] 23 minute video by OBA and OK APS to train bankers on senior fraud and responses.
OK Securities Info at www.invested.org Seniors Tab Investor Protection Kit My Money Handbook EIFFE Info (Including Clinician’s Pocket Guide)
Saveandinvest.org
All available at: http://promotions.usa.gov/cfpbpubs.htm
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Checking Your Links Closely? Links Lie: http://krebsonsecurity.com/2011/04/after-epsilon-avoiding-phishing-scams-
malware/ Want to learn more cool stuff about links? Check out this guy’s site and you’ll be a link
ninja in no time. http://www.bustspammers.com/phishing_links.html And how to forge “From” fields: http://email.about.com/cs/spamgeneral/a/spam_headers.htm
Our friend, Brian Krebs, now a star in USB, Kickstarter, Mark Cuban backed documentary on mule Co-produced (okay just funded at a whopping $25) by Dodd
www.krebsonsecurity.com
And…on Cyptolocker (Ransomware) front
• Disconnect affected computer from network but don’t necessarily turn off
• Consider using www.DecryptCryptolocker.com to reverse encryption – Product of FireFox and Fox-IT – Suggested by bank board member – Vetted through FBI and they think it is safe – Also written about and vetted by Brian Krebs,
krebsonsecurity.com http://krebsonsecurity.com/2014/08/new-site-recovers-files-locked-by-cryptolocker-ransomware/
Passwords Are Like Underwear! Change Yours Often
Be Mysterious Don’t Share Them With Friends The Longer the Better Don’t Leave Yours Lying Around
(Keep It Hidden)
Counterfeit Cashiers Checks • Always, always verify with issuing bank, using a
phone number you have located yourself (not the one printed). (For their corporate “cousins” call the company supposedly issuing the check directly.)
• Verify routing number to the bank on which the check was written.
• Ensure customers know “funds available” is not the same as “funds collected”.
• Consider policies to increase holds, more strict policies on hold releases, collection not deposit
Counterfeit Corporate Checks
No, Dell has not funded a sweepstakes and sent you a check!
And, neither did Pro1 Automotive xxxx xxx
(POS) Point of Service Money Order
And, are you watching your wires? ANY BANK
Social Engineering training critical on this topic Who signed the authorization for wires and is request new? Issues from fraudsters overseas and corporate embezzlers here
New OBA Fraud Alert
• What is the magic of 229 days? To clarify, magic for the bad guys!
• What should your response be?
• SAR-able?
Citizens as Money Mules Money Mules, aka Money Laundering Committing Fraud - Can Be Sued or
Prosecuted Fall for it once, will likely fall for it again Educate Consumers, Stop The Traffic, Stop the Scams
Money Mule Tests • Deposit account, minimal deposit soon followed by large EFT
deposits. • Deposit customers - suddenly receiving and sending EFTs related to
new employment, investments, business opportunities or acquaintances (especially Internet opportunities).
• Newly-opened deposit account with an unusual amount of activity, such as account inquiries, or a large dollar amount or high number of incoming EFTs.
• Account that receives incoming EFTs then shortly afterward originates outgoing wire transfers or cash withdrawals approximately eight to 10 percent less than the incoming EFTs.
• A foreign exchange student with a J-1 Visa and fraudulent passport opening a student account with a high volume of incoming/outgoing EFT activity.
Corporate Account Takeover - Availability Exception Option Approved September 8, 2011; effective on January 1, 2012 Option for an RDFI to exempt itself from the funds availability requirement for an ACH credit when it reasonably suspects that the ACH credit is not authorized. Additional time to investigate a suspicious credit prior to making funds available to a Receiver. The additional time might enable ODFIs and RDFIs to identify instances of unauthorized credit entries due to Corporate Account Takeover, and recover funds on behalf of Originators before funds are withdrawn.
www.nacha.org
Craigslist, Ebay, Amazon
• The BobCat loader, weekend phone call and help from one really big bank
Work From Home Scam
Online Ads / Post Resume Online High Salary / Little Work Accounts Receivable or Customer
Service Receive Funds and Send Out of Country
Craigslist, Anyone??? (Not Me, But…)
• Red Flags – Buyer from overseas
wanting to ship goods, cars – Buyer sends check for
overage ($4980 check for $450 goods)
– Buyer asks for overage to be wired or sent via money gram to them
– Buyer often poses as an “Okie” from another community
•Do: •Buy locally •Never wire money •Watch for fake money orders •Be wary of guarantees
Sites that debunk rumors and hoaxes:
• www.snopes.com • www.scambusters.org
• www.ripoffreport.com
• www.quackwatch.org
• www.truthorfiction.com
Tell Me Again Just What Great Folks Our Bankers Are!
What is financial exploitation?
• Improper use of a vulnerable adult’s financial, real or personal resources
• For the benefit of another person
• Through the use of undue influence,
coercion, harassment, duress, deception, false representation or false pretense.
Sometimes the facts are more difficult…
• Anna Nicole story-ish
• Grandkids/family members
• Clergy
Roles – Adult Protective Services
– Confidential – Investigate – Make contact – Interview – Review information – Possibly contact law
enforcement – Make a determination – Advise bank of decision
Roles – Branch Office Staff
– Identify the situation - Recognize warning signs in the customer’s activity or behavior.
– Avoid confrontation & try to separate the client from the suspect
– Use probing questions to determine customer intent - let them tell use their own words – no prompting
– Delay the suspicious transaction – Contact the fraud department (Loss Management) – Be aware of recent or new scams & fraud schemes
Roles – Bank Fraud Dept
– Document situation – Take immediate protective action on accounts – Make report to Protective Services – Provide necessary research to assist with their
investigation as needed – Advise financial center of final outcome – Track the results – Stop the loss
Expect and Watch For Repetitive Victimization
• It is not uncommon for victims to be swindled on several occasions, sometimes repeatedly by the same individual, or by other swindlers who have acquired the victims’ names as potential “dupes” from previous perpetrators.
• Sadly, for many elderly victims of financial crime, contact with the perpetrators may be one of few, if not only, contacts the victims have with people who appear to take an interest in them.
Do They Really Know Who’s at the Other End of That Computer Connection???
• $9200 wired to the “love of her life” • Trust in counterfeit money orders because
young man was too close to the object of his affection (on the internet) – Love talk on the computer?
• Customer convinced by Rascal Flatts’ touching sentiments
• On the computer, nothing may be as it seems!
What You Can Do to Prevent Fraud
• Be Aware – don’t be a victim
• Be Alert – don’t be drawn into someone else’s schemes
• Be an “Okie” – it’s just
not our way to be in a rush!
• Questions???
• Contact Info: – Elaine Dodd – Oklahoma Bankers
Association – 405.424.5252 – [email protected]