Fraud Trends andOrganized White Collar

Crime

Fraud Trends andOrganized White Collar

CrimePresentation by Jeff Wahl, CFEPresentation by Jeff Wahl, CFE

IntroductionIntroduction

Jeff Wahl, Vice President, Division Manager for U.S. Bank Corporate Security Operations– 19 years of banking experience

– 13 years investigating financial crime at the corporate level

– Certified in fraud examination (CFE)

– Current responsibilities include managing investigations staff and physical security for the Pacific Division within U.S. Bank Corporate Security (11 states and over 1,600 branches)

FormatFormat

Ask questions What do you want me to cover?

Fraud TrendsFraud Trends

Scams are evolving Fraud is becoming more organized Technology is changing fraud

– Better ways to detect

– Better ways to steal

Fraud Trends and White Collar CrimeFraud Trends and White Collar Crime

Advance Fee Scam Evolution Cash Advance Skimming Account Takeover Felony Lane Gang New Account Fraud Financial Exploitation of a Vulnerable Adult

Advanced Fee Scam EvolutionAdvanced Fee Scam Evolution

Investment Opportunity You Won!

– Big Payout

– Small Checks

Current Versions:– Employment Scam

– Romance/Dating Scam

– Auction Scam

– What Else?

Cash AdvanceCash Advance

Cash Advance Scam– Initial attempt will be declined

– Suspect uses a phone

– Transfer the phone to a banker/teller

– Knowledgeable

– Count on a procedural violation

SkimmingSkimming

What is skimming? PIN capture

SkimmingSkimming

Use captured data with counterfeit plastic Many victims do not know how card was

compromised Devices only used for a few hours Drive up ATMs are targeted Data can be transmitted wirelessly

SkimmingSkimming

Installed over the card reader Card passes through skimmer first

SkimmingSkimming

Skimming – PIN CaptureSkimming – PIN Capture

Skimming - PIN CaptureSkimming - PIN Capture

Account TakeoverAccount Takeover

Have account numbers High quality identification Travel Work in teams Social engineering

Felony Lane GangFelony Lane Gang

Break into vehicles Theft of purses and wallets Go to the “felony lane” Split deposits and cashed checks

New Account FraudNew Account Fraud

Organized groups Account opened using real information/ID Card is passed to suspect Activity completed by same person/people Activity is not always reported

Financial Exploitation of a Vulnerable AdultFinancial Exploitation of a Vulnerable Adult

ConclusionConclusion

Questions?