An associate of mine recently discovered he was a victim of Identity Theft (links to the FTC website), as a result I discovered through speaking with the police that almost 95% of cases involving on-line Identity Theft are never prosecuted.  I'm sure you're wondering why.

Id theftApparently it becomes a jurisdiction issue.   The thief may be sitting at his computer in Palm Springs, CA entering your information in on-line applications using his or her contact information, home address, telephone numbers, e-mail address, etc and having a duplicate card issued in their name.  Simple right, we've caught him!  This in and of itself is not enough to successfully prosecute the suspected thief.    It now comes down to several issues one of them being jurisdiction.  While the actual input of information occurred in Palm Springs, CA the server the web-site and application are hosted on may be in another city, state or country.

Local, state and federal police agencies now have the burden of proof placed on them and the victim to prove that a crime was committed.  They have to prove that Stealing Steve was the one who actually sat down at the keyboard and performed the key strokes required to enter the information.  Did you see him do it?  Nope.  Secondly, Vince Victim has to now make contact with all the creditors to determine how and when the application was submitted, how many cards were issued and to whom, credit limits, account numbers, if any charges were made etc. and most importantly if it was an on-line application do they log IP addresses and where is their server located. 

If the server is located in New Delhi did the crime occur in Palm Springs, CA where the information was input or in New Delhi where the servers are housed, which then began the process of determining eligibility for credit?  Not a simple question to answer and quite mind boggling when you stop to think about it.  This is just one hiccup in our system.  If accounts were applied for but no charges made to the accounts, there's no loss therefore no crime!  What no crime?  What about the fraudulent applications that were made?  Again it becomes an issue of jurisdiction and whether or not you actually witnessed Stealing Steve input the information.

cartoonIt's a vicious cycle when it comes to on-line identity theft; educate yourself at the Federal Trade Commissions web-site Fighting Back Against Identity Theft.  With the influx of "mortgage companies" appearing on the internet it's important you know how to protect yourself.  Many of these companies are not truly mortgage companies they're lead generation sites that sell your information to a willing buyer.  There are no safeguards in place to protect you from Stealing Steve who may pose as a mortgage originator to gain access to the information you submitted to the on-line "mortgage company." 

Always look for legitimate contact information, phone numbers, addresses, and license numbers.  You can verify the legitimacy of the company by calling them direct or by contacting your local Department of Real Estate, the Better Business Bureau or your states Department of Corporations usually governed by the Secretary of State.  California Department of Real Estate web-site and the California Secretary of State's web-site can be found by clicking the preceding links.

I remember a few years back I had a potential client request that I send her a copy of my California Department of Real Estate License, at the time I though this was a strange request.  Looking back on it, with hindsight being 20/20 she was doing the right thing, protecting herself from possible identity theft.  Remember when advertising is involved whether on-line, television, radio or newspaper there are no safeguards in place to verify that the advertiser is a legitimate licensed company.  With the technologies we have today it's said to say "Buyer Beware" but, it appears to be truer today than it has in the past.

Additional government agencies that deal with internet fraud and identity theft:  Internet Crime Complaint Center and Internet Fraud Information.  These links were supplied by Damion Flynn a Real Estate Broker from the Mississippi Gulf Coast

Ed Brophy
President
Synergy Mortgage

Toll Free: (888) 45-LOAN-5 ext. 1
Direct: (760) 409-9069
E-mail: ewbrophy@synergymortgageloans.com
Web: http://www.synergymortgageloans.com/

 
Post is included in group: Identity Theft and Mortgage Fraud

12 Comments on Interesting Facts About Identity Theft - Are You an Invisible Victim?

JAN
25
2007
283,388 Points 6 Featured Posts Outside Blog
Hey I know two people in one of my cyber groups this happened to and it is not fun restoring your credentials.  Great blog
5:33pm • #1
2 Featured Posts
Great post and very timely as identy theft is really a BIG issue!
5:53pm • #2
8 Featured Posts
These 'white collar' crimes can ruin people's lives for a long time.  We need the legalities smoothed out and these perpetrators prosecuted to the full extent of the law!
6:04pm • #3
1,585,361 Points 430 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great information, Ed. Tough tough issue (know several people who have had problems and it goes on for years!). The scams out there are very creative and constantly changing.
6:37pm • #4
5 Featured Posts

Teri:  It can take years to re-establish yourself.  Being intimately involved in this I'm learning a lot, maybe it'll help me help others to protect themselves.

Kaushik:  According to the police officers I've been talking the Feds are trying to get this all sorted out and laws in place to prosecute the offenders.

Jeff:  The mortgage lead websites that are out popped into my mind yesterday while speaking with the detective handling the case.  I have bought these leads with no verification who I am.  It's amazing that people still believe the internet is safe.
8:09pm • #5
5 Featured Posts

Damion:  Thanks for the great links.   I'm going to add them to the article.

Thanks again, Ed
9:21pm • #6
199,383 Points 5 Featured Posts
This post really makes you more cautious when it comes to identity theft...its such an easy crime for people to commit now days and so scary how it's so difficult for them to be prosecuted.  Hmmm....maybe that's why identity theft has increased so much the past few years among thieves, harder to get caught.  Scary stuff.
10:19pm • #7
193,997 Points 7 Featured Posts Outside Blog

We were victims of a small (relatively) case of identity theft, and it took a year to get things finally (crossed fingers!) And that was just our bank account, not (thankfully!) our credit cards or anything else.  However, even though the theft took place in our own counties (two adjacent ones), the police where we filed the police report (necessary in order to sort things out) simply gave us a case number over the phone and, months later, sent us a postcard saying here's your case number.  No one called to talk to me (though they said at the time that I filed the report that someone would), even though I told them that one of the merchants was able to tell me, from the information I gave them from the back of the cancelled fake check, that they could tell me which register, what time of day, who was on that register, and that there was a security camera on the register, and that I should tell the police when they interviewed me that they'd be happy to provide all of this information and let them have a copy of the security tape. 

It was too little an amount, evidently (just over a thousand) for them to bother with - never mind the theft of my time spent sorting it out, its value, and the fact that the merchants who took the forged checks were out a few hundred each. 

10:33pm • #8
27 Featured Posts

Ed,

Very good post on the subject and thanks for adding it to the group.  Only thing I would add is the need for people to understand that Identity Theft goes way beyond what most people think, ie financial.  I did a post a while back on Medical Identity Theft which highlights the fact that being a victim in this area of ID theft can actually kill you. 

There is also criminal identity theft, and social security identity theft which are very prevalent due to the large amounts of illegal immigrants we have (they need a SSN to gain employment).

This is one topic that rests on my mind every day and how we can protect ourselves, our businesses, and our clients.
11:11pm • #9
JAN
26
2007
18 Featured Posts
Florida real estate appraiserHi Ed.. great post, as people need to be aware of the dangers of ID theft. South Florida is notorious for dumpster diving (where people sift through trash to get info). My wife had some minor ID theft, and we had to take so many precautions. I still worry about it though. There are people with access to your SSN that just shouldn't..i.e. doctors office, dental office, accountant's employees, and how about the accountant that (if applicable) your broker uses, and all their employees.  I was furious to have to give my SSN to get fingerprinted in the State of Florida for the professional liceses (REaltor and Appraiser).   Its good that you raise awareness with this post. see you around.
9:15am • #10
144,870 Points 3 Featured Posts Outside Blog
We just had an issue of identity theft with our assistant. Someone used her home phone number to buy a phone card over the internet. Well, it turns out whoever bought the phone card used a stolen credit card number. It came back to look like our assistant purchased the phone card since her phone number was used. Right now it's a big mess with the police and the guy that got his number stolen. It's really pretty scary when you think about it! Thanks for the post.
9:27am • #11
122,017 Points 6 Featured Posts Outside Blog
Wow..I never really thought of it that way. I thought once they found the who, it was over for him. I can't believe they don't prosecute if they were unused. It's a horrible crime.
8:23pm • #12


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Ed Brophy - REALTOR® - DRE #01344385

Palm Springs, CA

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