Some indentity thieves download credit card information after a customer card is swiped for a transaction, and creates duplicate cards using those particulars. - File

This following is a presentation by fraud investigator Deputy Superintendent of Police Fitz Bailey, at a COK forum on 'Confronting Identity Theft: The Changing Nature of Financial Security', held October 19. The material has been edited for space.

One of the challenges we face is coping with the proliferation of identity theft/fraud and we do believe dealing with this monster requires a multiplicity of solutions.

Identity theft is the stealing of personal identifying information, which may include a name, address, date of birth, taxpayer registration number (TRN), and parents' names in order to gain some benefit.

Tax Registration Office

Having secured this information, a fraudster can use it in a number of ways: to secure a credit card, apply for loans, and set up utility and phone services in the victim's name. Between 2003 and present, 125 cases of identity fraud were reported to the Fraud Squad. A significant number of these cases originated from the Tax Registration Office. Essentially, the profiles of the victims were stolen. By that, I mean that their names, dates of birth, places of birth and parents' names were stolen. The perpetrators were able to secure TRN, passport, and driver's licence in the victims' names.

Let me give you an example of an actual event, but with names changed: In 2004, 'Mary Jane' rented premises from 'Jodi Jones'. Jones locked her section of the apartment and left for work. Mary Jane, who had secured a key for Jones' apartment, entered it, stole her birth certificate, and GCE O' Level certificates.

Relevant Identification

Mary Jane applied for and was enrolled in one of our universities in the name of Jodi Jones. She secured the relevant identification including driver's licence and TRN in the name of Jodi Jones.

During the course of her study, she also applied for and was granted a student loan in the name of Jodi Jones. Having completed her first degree, she went on to do a Masters degree in the name of Jodi Jones. She then did a Deed Poll to change her name to Jodi Jones.

The real Jodi Jones was home one day, when the mail man turned up with a letter informing her that she was indebted to the Student's Loan Bureau for hundreds of thousands of dollars.

The matter was thereafter brought to our attention at the Fraud Squad. Can you imagine the police turning up at your gate to arrest you for a case of fraud or other felony because a person had stolen your identity and use it to commit such act?

People can steal your identity by intercepting your mail, bank and credit card statements and tax information.

They can also steal your identity through email or by getting information from businesses or other institutions through employees using bribery.

They may steal your credit card or debit card numbers by capturing the information in a data storage device in a practice known as 'skimming'.

They may swipe your credit card for an actual purchase and download your information. Merchants need to be aware of this practice.

The device can be conveniently carried in the pocket. It is battery operated. The Area One Fraud Squad recently held a known fraud perpetrator who attempted to clear three of these devices at custom; his car was searched and another device was found therein.

In addition to this form of identity theft there are:

The switching of legitimate customer signature cards in financial institutions with one signed by an impostor

Photo switch in passports

The securing of forged identification to commit acts of criminality

Taking on the identity of genuine account holders and applying for loans in their names.

There are many more examples of how these crimes are committed.

I believe that the laws under which we operate are inadequate to deal with the proliferation of identity theft and fraud in general.

Forgery Act

For example, no charges could be proffered against the person who was found in possession of the four devices. I personally searched the Forgery Act to see if I could identify a section, but it was of no avail.

I contacted the offices of the Director of Public Prosecution but no assistance was provided due to the inadequacy of the law.

The financial sector, including the Jamaica Bankers Association, should lobby for amendment to current legislation or the drafting of new legislation to address the changing face of crimes against the financial sector.

This should factor in the evolution of technology, and the admissibility of computer and other electronically-generated evidence, as has been done in England.

The legislation must also address the issue of punishment which must fit the crime.

I am aware that all the players in the financial sector are operating against each other in a highly competitive environment.

However, it must be recognised that united you must all stand in fashioning structures and strategies to combat and prevent the proliferation of identity fraud, or else divided you all fall.

Trust and confidence in the financial sector by the public would be severely undermined. You cannot allow that to happen. Those who are in risk management or anti-fraud departments must look at ways to share information across institutional borders, such as hosting quarterly meetings to discuss fraud trends and approaches to deal with them.

The police can be invited to some of these sessions, as we are willing to provide any assistance to minimise the impact of fraud. We prefer to be proactive and pre-emptive rather than reactive.

The perpetrators of fraud are in most instances repeat offenders.

Database

The credit unions, along with other financial institutions, could look at establishing a database with the support of the police to identify the main perpetrators in reasonable time. How can financial institutions verify the authenticity of a driver's licence, passport or national identification? I believe such a database could assist the process.

Identify theft is far more widespread than the financial sector and law enforcement agencies are aware.

We need to create partnerships and strategic alliances between all the players that is the business sector, government agencies and law enforcement agencies. The police alone cannot do it.

Deputy Superintendent Bailey is in charge of the Fraud Squad, Jamaica Constabulary Force.