POP Conference 2005, Charlotte NC
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Transcript of POP Conference 2005, Charlotte NC
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Examining an Emerging Examining an Emerging Internet Fraud Problem: Internet Fraud Problem:
Who Has Responsibility & Who Has Responsibility & What Should Be Done?What Should Be Done?
Facilitator: Dr. Graeme R. NewmanFacilitator: Dr. Graeme R. Newman Kristen Rosselli, RPD Strategic Initiatives Mgr.Kristen Rosselli, RPD Strategic Initiatives Mgr.
Patrick Niemann, RPD Training SergeantPatrick Niemann, RPD Training Sergeant
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Work-at-Home/Work-at-Home/Repackaging FraudRepackaging Fraud
Raleigh NC PoliceRaleigh NC Police
Work-in-ProgressWork-in-Progress
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Raleigh, NC USARaleigh, NC USA
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
M.O. of the CrimeM.O. of the Crime
Two Variations of the “Work at Two Variations of the “Work at Home” scam:Home” scam:
1.1. Re-Packaging VariantRe-Packaging Variant
2.2. Money Order VariantMoney Order Variant
(variants can also be combined)(variants can also be combined)
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Commonalities to Both VariantsCommonalities to Both Variants
All victims responded to a job listing All victims responded to a job listing which advertised “work at home” which advertised “work at home” opportunities.opportunities.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Job Ad ExampleJob Ad Example
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Commonalities to Both VariantsCommonalities to Both Variants
All suspects were overseas.All suspects were overseas.
At the request of the suspect, all At the request of the suspect, all victims provided victims provided detaileddetailed resumes. resumes.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Commonalities to Both VariantsCommonalities to Both Variants
The suspect will “use” each victim for The suspect will “use” each victim for approximately two weeks.approximately two weeks.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Re-Packaging VariantRe-Packaging Variant
Victim is advised that they will receive Victim is advised that they will receive parcels from several areas within the USA.parcels from several areas within the USA.
The victim is then instructed to re-package The victim is then instructed to re-package or combine the parcels, and ship them to or combine the parcels, and ship them to the suspect (overseas).the suspect (overseas).
The victim is sometimes referred to a The victim is sometimes referred to a specific carrier’s (i.e. UPS) business specific carrier’s (i.e. UPS) business shipping account for postage. shipping account for postage.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Re-Packaging VariantRe-Packaging Variant
What’s really going on…What’s really going on…
The suspect is purchasing high-value The suspect is purchasing high-value items online with stolen credit card items online with stolen credit card numbers.numbers.
The orders are shipped to the victim, The orders are shipped to the victim, who re-packages them, and forwards who re-packages them, and forwards them to the suspect.them to the suspect.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Re-Packaging VariantRe-Packaging Variant
There’s More…There’s More…
Sometimes, when using “corporate Sometimes, when using “corporate shipping” accounts, the victim was shipping” accounts, the victim was unknowingly billing himself for the unknowingly billing himself for the shipping.shipping.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Money Order VariantMoney Order Variant
Victim is advised that they will Victim is advised that they will receive money orders, from various receive money orders, from various sources within the USA.sources within the USA.
The victim is then instructed to cash The victim is then instructed to cash the money orders. They are allowed the money orders. They are allowed to keep a small amount for to keep a small amount for themselves (usually 5%), but must themselves (usually 5%), but must wire the remainder to the suspect.wire the remainder to the suspect.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Money Order VariantMoney Order Variant
What’s really going on…What’s really going on…
The suspect is posting fictitious items The suspect is posting fictitious items on online auctions. He instructs the on online auctions. He instructs the “winner” of the auction to send the “winner” of the auction to send the price of the item, via money order, to price of the item, via money order, to the re-shipper.the re-shipper.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Additional Impact to the VictimAdditional Impact to the Victim
Upset merchants, auction bidders, Upset merchants, auction bidders, and law enforcement are contacting and law enforcement are contacting the re-shipper, demanding answers the re-shipper, demanding answers or restitution.or restitution.
Since the re-shipper has provided a Since the re-shipper has provided a resume to the suspect, continuing resume to the suspect, continuing identity fraud is a possibility.identity fraud is a possibility.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
International AspectsInternational Aspects
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
International AspectsInternational Aspects
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
There can be several distinct There can be several distinct crimes…crimes…
Fraud Fraud
Identity TheftIdentity Theft
Credit Card FraudCredit Card Fraud
Computer Crimes?Computer Crimes?
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
RPD StatisticsRPD Statistics
Several case reports were filed with Several case reports were filed with RPD, which ultimately identified:RPD, which ultimately identified:
3 re-shippers in Raleigh3 re-shippers in Raleigh
15 victims throughout the US who 15 victims throughout the US who sent money orders or merchandisesent money orders or merchandise
Two countries where proceeds were Two countries where proceeds were being sent (Russia, Ukraine)being sent (Russia, Ukraine)
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
National StatisticsNational Statistics
No authoritative data yet on re-shipping No authoritative data yet on re-shipping scams scams in particularin particular, however…, however…
From 1/1/04 through 12/31/04, there were From 1/1/04 through 12/31/04, there were 12,703 work-at-home and business 12,703 work-at-home and business opportunity fraud complaints reported to opportunity fraud complaints reported to the FTC’s Consumer Sentinel.the FTC’s Consumer Sentinel.
Source: FTC’s “National and State Trends in Fraud and Identity Source: FTC’s “National and State Trends in Fraud and Identity Theft” published 2/1/05.Theft” published 2/1/05.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Typical InvestigationTypical Investigation
Out-of-town victims are called, and Out-of-town victims are called, and interviewed at length.interviewed at length.
Raleigh victims / re-shippers are Raleigh victims / re-shippers are visited and interviewed.visited and interviewed.
Court Orders are obtained for IP Court Orders are obtained for IP addresses (email trace).addresses (email trace).
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Typical ResultsTypical Results
Re-shippers were unusually naïve, Re-shippers were unusually naïve, and desperately hopeful.and desperately hopeful.
All IP address traces ultimately All IP address traces ultimately ended overseas.ended overseas.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Prosecution ResultsProsecution Results
State Prosecution declined on local State Prosecution declined on local re-shippers, and no jurisdiction on re-shippers, and no jurisdiction on foreign suspects.foreign suspects.
Crime / damages do not meet Crime / damages do not meet threshold for prosecution at US threshold for prosecution at US Attorney’s Office (NC Eastern Attorney’s Office (NC Eastern District). Therefore, no FBI, USSS, District). Therefore, no FBI, USSS, etc. involvement or adaptation.etc. involvement or adaptation.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Are victims warned?Are victims warned?
Caveat on “jobspider.com”Caveat on “jobspider.com”
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Are Victims Warned?Are Victims Warned? Caveat from IFCCCaveat from IFCC
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
ScanningScanning
Emerging complex crime in RaleighEmerging complex crime in Raleigh
Multiple victims/caseMultiple victims/case
$7,000 - $20,000/case$7,000 - $20,000/case
~2 week window~2 week window
Multiple jurisdictions/caseMultiple jurisdictions/case
Low solvability factorsLow solvability factors
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Analyzed crimes separatelyAnalyzed crimes separately
Underlying cause: “Opportunity”Underlying cause: “Opportunity”
Vulnerable victimsVulnerable victims
Vulnerable networksVulnerable networks
Motivated offendersMotivated offenders
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Analysis:Analysis: ResourcesResources
COPS GuidesCOPS Guides Identity TheftIdentity Theft Check and Card FraudCheck and Card Fraud Financial Crimes Against the ElderlyFinancial Crimes Against the Elderly Shifting & Sharing Responsibility for Public Shifting & Sharing Responsibility for Public
Safety ProblemsSafety Problems
POP Center website: POP Center website: popcenter.orgpopcenter.org
Police Practitioners & ResearchersPolice Practitioners & Researchers
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Job ScamJob Scam
Victims/TargetsVictims/Targets
Re-packager/Re-shippersRe-packager/Re-shippers
Online MerchantsOnline Merchants
Shipping CompaniesShipping Companies
Credit Card CompaniesCredit Card Companies
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Job ScamJob Scam
Places/SystemsPlaces/Systems
InternetInternet
E-job websitesE-job websites
Newspaper AdsNewspaper Ads
Email ServicesEmail Services
Online Merchant Online Merchant WebsitesWebsites
Shipping Shipping Networks Networks
US/ Int’l Shipping US/ Int’l Shipping LocationsLocations
Banking NetworksBanking Networks
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Job ScamJob Scam
OffendersOffenders
ScammersScammers
Repackaged Repackaged Parcel RecipientsParcel Recipients
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Job ScamJob Scam
Places/SystemsPlaces/Systems
InternetInternet
E-job websitesE-job websites
Newspaper AdsNewspaper Ads
Email ServicesEmail Services
Online merchant’s Online merchant’s websiteswebsites
Banking NetworksBanking Networks
Shipping Networks Shipping Networks & Locations& Locations
Int’l Reshipping Int’l Reshipping locations locations
OffendersOffenders
ScammersScammers
Repackaged Repackaged Parcel RecipientsParcel Recipients
Victims/TargetsVictims/Targets
Re-packager/Re-shippersRe-packager/Re-shippers
Online MerchantsOnline Merchants
Shipping Co.Shipping Co.
Credit Card Co.Credit Card Co.
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Identity Identity TheftTheft
Victims/TargetsVictims/Targets
Credit Card Theft VictimCredit Card Theft Victim
Re-shipperRe-shipper
Online Merchants & Shipping Co.Online Merchants & Shipping Co.
Credit Card Co.Credit Card Co.
Places/SystemsPlaces/Systems
InternetInternet
Online merchant Online merchant websiteswebsites
Shipping networks Shipping networks & locations& locations
Place CC was Place CC was compromisedcompromised
OffendersOffenders
Identity ThievesIdentity Thieves
Online product Online product purchaserspurchasers
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Internet Internet FraudFraud
Victims/TargetsVictims/Targets
Ebay BidderEbay Bidder
EbayEbay
Re-shipperRe-shipper
Places/SystemsPlaces/Systems
InternetInternet
Ebay Auction SitesEbay Auction Sites
Email ServicesEmail Services
Money Order Money Order Locations Locations
US & Int’l US & Int’l Shipping Shipping Networks & Networks & LocationsLocations
OffenderOffender
Ebay Auction Site Ebay Auction Site ScoutsScouts
Website DesignerWebsite Designer
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Analysis: Job ScamAnalysis: Job Scam
High offender commitment High offender commitment
Financial gainFinancial gain
Organized crimeOrganized crime
Predatory & consensual/ Predatory & consensual/ participatory V-O relationshipsparticipatory V-O relationships
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Analysis: Job ScamAnalysis: Job ScamVictim FacilitationVictim Facilitation
Making initial contactMaking initial contact
Providing personal info Providing personal info
Allowing shift to trust & waives Allowing shift to trust & waives customary safeguardscustomary safeguards
Believing offender’s pitchBelieving offender’s pitch Providing access to fundsProviding access to funds
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
How capable are they?How capable are they?
Who else can help solve the Who else can help solve the problem?problem?
Who has ownership?Who has ownership?
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysis
Job Job ScamScam
GuardiansGuardians
FamilyFamily MediaMedia
Email Providers Email Providers ISPISP
Law EnforcementLaw Enforcement Financial InstitutionsFinancial Institutions
Corp Fraud DeptsCorp Fraud Depts Credit Reporting AgenciesCredit Reporting Agencies
FCC & FTCFCC & FTC Shipping CompaniesShipping Companies
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Job Job ScamScam
AnalysisAnalysis Place/Systems Place/Systems ManagersManagers
Email ProvidersEmail Providers
ISPsISPs
Website Website ManagersManagers
Newspaper Ad Newspaper Ad DeptsDepts
Corp Fraud/ Corp Fraud/ Security Depts.Security Depts.
Package Delivery Package Delivery ServicesServices
Package Package ReceiversReceivers
Mailbox Mailbox CompaniesCompanies
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AnalysisAnalysisHandlersHandlers
Law EnforcementLaw Enforcement
Organized Crime Organized Crime MembersMembers
OthersOthers
Job Job ScamScam
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
ResponseResponse
Solving casesSolving cases
Preventing future opportunitiesPreventing future opportunities
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Response: Solve CasesResponse: Solve Cases
Exhausted all leadsExhausted all leads
DA declined to prosecuteDA declined to prosecute
Little to no solvabilityLittle to no solvability
Cases inactivatedCases inactivated
Seeking other response ideas…Seeking other response ideas…
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Response: PreventionResponse: Prevention
Attempted to influenceAttempted to influence Victims & GuardiansVictims & Guardians Place/System & ManagersPlace/System & Managers Offenders & HandlersOffenders & Handlers
Addressed motivation of “owner”Addressed motivation of “owner” Unable, unwilling, gain more from ignoring, Unable, unwilling, gain more from ignoring,
profit from crimeprofit from crime
Requested prevention effortsRequested prevention efforts Voluntary – CoerciveVoluntary – Coercive
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
AssessmentAssessment
Not effective at removing causesNot effective at removing causes
No prosecution No prosecution
Some business practice changesSome business practice changes
Problem continues Problem continues
Seeking suggestions…Seeking suggestions…
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Request for FeedbackRequest for Feedback
What other information should be What other information should be collected?collected?
Who is in the best suited to address Who is in the best suited to address problem?problem?
Other response ideas?Other response ideas?
What are other ways to measure What are other ways to measure success?success?
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Shifting/Sharing ResponsibilityShifting/Sharing Responsibility
What level of “due diligence” is What level of “due diligence” is required for emerging crimes?required for emerging crimes?
What are the public’s expectations of What are the public’s expectations of local police response? local police response?
How much local police resources How much local police resources should be used?should be used?
POP Conference 2005, Charlotte NCPOP Conference 2005, Charlotte NC
Contact InformationContact Information
Kristen RosselliKristen RosselliRaleigh Police DepartmentRaleigh Police Department
919-890-3865919-890-3865
[email protected]@ci.raleigh.nc.us
Patrick NiemannPatrick NiemannRaleigh Police DepartmentRaleigh Police Department
919-872-4144919-872-4144
[email protected]@ci.raleigh.nc.us