Presented by:Christopher Gandy, CFE

Cost of Crime in USViolent Crime $ 14 BillionProperty Crime $ 17.6 BillionVehicle Accidents $ 74 BillionFraud $ 2.3 Trillion

Do we have a problem in the US?

Ronald Reagan

“I’ve been trying … to think of a way to illustrate how big a trillion is. The best that I could come up with is that if you had a stack of $1000 dollar bills in your hand only four inches high, you would be a millionaire.

A trillion dollars would be a stack of $1000 dollar bills 67 miles high.”

Ronald Regan said this quote in 1981 to help people visualize the size of the national debt, which was approaching $1 trillion.  

By comparison, the $700 billion bailout would be a stack of $1000 dollar bills 44 miles high.

Types of Crimes Loan Fraud Access Device Fraud –Credit Cards and ATM Counterfeit Checks and Identification Abuse of Elderly Embezzlements Theft of Property Skimming Credit Cards Ghost Employees False Billing Schemes Identity Theft Phishing Schemes

Mortgage Fraud Inflated Appraisals

The appraisal is artificially inflated to make the home seem like it is worth more than it actually is.

What should we do?Inspections of the property –not just the

front, inside and out.Check prices of other property in area

Loan Fraud Using false identity

A person's identity and/or credit history is falsely used to apply for a loan. This may be done with the person's knowledge (who's known as a "straw buyer") or it may be a case of identity theft.

What can we do? Run the buyers name on the Clark County

Assessors Office web site, does he own other property

Run the property address Contact the listed owner of the property, is this

the same person

Foreclosure Scams

The "rescuer“Charges outrageous fees for light-duty phone

calls

The BailoutDeceived into signing over title

Loan FraudEquity skimming

An investor uses a straw buyer along with a false credit history and false income information to apply for a loan. After the loan closes, the "straw buyer" then signs the property over to the investor who then rents out the property (without making mortgage payments) until the property is foreclosed.

Loan FraudProperty flipping

The act of buying a property, fixing it up and selling it at a profit. This is not an illegal act unless the acquisition of the property involved falsifying loan documents such as income information, appraisals, etc.

Access Device FraudDestination Las Vegas40 Million visitors in 2006

Among the ways personal information is obtained:38% Lost or stolen wallet, checks or credit cards15% Friends or acquaintances15% Retail purchase-credit transaction-

Skimming9% —Stolen paper mail8% —Computer viruses or hackers4% —phony e-mails4% —online purchases

Abuse of the ElderlyWho is committing the crimes Care giversFamily MembersNeighborsFriends of the FamilyStrangers Selling products or investments

EmbezzlementsBookkeeper FraudGhost EmployeesFalse Billing SchemesCounterfeit Checks “ Check 21” 10/23/2003”Fraudulent use of Company Credit CardFraudulent use of Company P-Card

Identity TheftAssuming the identity of anotherWhy do it?Wanted under your real nameTo Obtain Credit To cause harm to another Financial Gain in a business transactionTo make a purchaseTo commit a crime and get away

How do we protect ourselvesThe plan--- Networking and CommunicationFinancial InstitutionsRetails OutletBusiness City and State InvestigatorsFederal Agencies

Knowledge is power!

Work TogetherCommunication is the Key!Email – New NV Laws

1) N.R.S. 597.970 Restrictions on Transfers2) N.R.S. 205.474 Data Defined3) N.R.S. Personal Information Defined

Encryption should be used at all times

NV Laws NRS 597.970  Restrictions on transfer of personal information through electronic

transmission. [Effective October 1, 2008.]      1.  A business in this State shall not transfer any personal information of a customer through an

electronic transmission other than a facsimile to a person outside of the secure system of the business unless the business uses encryption to ensure the security of electronic transmission.

      2.  As used in this section:      (a) “Encryption” has the meaning ascribed to it in      (b) “Personal information” has the meaning ascribed to it in    (Added to NRS by, effective October 1, 2008)    NRS 205.474  “Data” defined.  “Data” means a representation in any form of information,

knowledge, facts, concepts or instructions which is being prepared or has been formally prepared and is intended to be processed, is being processed or has been processed in a system or network.  

   NRS 603A.040  “Personal information” defined.  “Personal information” means a natural person’s first name or first initial and last name in combination with any one or more of the following data elements, when the name and data elements are not encrypted:

     1.  Social security number.     2.  Driver’s license number or identification card number.     3. Account number, credit card number or debit card number, in combination with any required

security code, access code or password that would permit access to the person’s financial account.

Ê The term does not include the last four digits of a social security number or publicly available information that is lawfully made available to the general public.

 

The VictimShould!

Sends out an alert to all membersDo you know this personHis/her descriptionM.O.Factors- How the crime was committedHow suspect was identified or located Has a Police report been filed—Where– WhenGive Police report number if availableNames and number to contact is suspect is

identified or located

Membership

To use our system you must be a CFE member, IAFCI or Local Law Enforcement

Increase membershipHelp stop future crimesCapture suspectsConvict or help us get restitutions from the

courts

TestPick a number greater than 1 but less than 10 of how many

times you would to have chocolate this week.Multiply by this number by 2Add 5Multiply by 50 If you have already had your birthday this year add 1759 If you haven’t add 1758Now subtract the four digit year you were bornYou should have a three digit number The first digit is how many times you picked to eat

chocolateThe last two should be your age

Questions