 |
 |
'CORPORATE' Identity Theft: A New TwistThree Florida men were recently charged with fraudulently obtaining more than $250,000 in goods and services: they made their purchases using 'business' bank account numbers. 'Personal' identity theft has been around for many years, but the theft of identification numbers from legitimate businesses is a new twist. In this case, the criminals printed and used counterfeit checks using bank account numbers they stole from several businesses. In another case, criminals used stolen corporate identities to create bogus payroll checks. The Internet technology makes 'corporate' identity theft a low risk crime promising higher returns than the theft of personal identities. However, crooks are creative and use technology in many ways. MANAGERS SHOULD BE ALERT: CORPORATE IDENTITY THEFT IS AN EMERGING CRIME For example, other reported thefts of corporate identities have used counterfeit Web sites. It's fairly easy to replicate a Web site, and imposters can shut down fake sites with a click of the mouse. In one widely published case, the International Chamber of Commerce shut down a global Internet banking scam involving about $3.9 billion. The thieves had set up fake Web sites that looked exactly like the original businesses. "This is worrisome because it involves the mimicking of a legitimate banking business and the use of the Internet to verify documentation" (Jon Merrett, Assistant Director, International Chamber of Commerce, Commercial Crimes Unit, cited in NewsFactor Network [below]). But not all identity thieves use the computer or the Internet to defraud corporations, as one New Hampshire businessman discovered. Fraudsters placed the name of a stolen corporate name and identification information in newspapers nationwide and set up a toll-free number: The theft ring used the legitimate business name to advance loans to people across the U.S. for commitment fees wired to the 'loan company' in response to the ad. Consumers bear the brunt of financial losses incurred by corporate identity thefts through higher costs for products and services. The costs of check fraud-losses, legal fees, increased insurance premiums, and higher banking costs are often if not always passed on to the consumer in the form of higher interest rates and other financial institution fees. References: Florida Attorney
General, Office of Statewide Prosecution. (2001, September 18).
Press Release. Sixteenth Statewide Grand Jury Charges Three in Racketeering
Scheme. Retrieved on December 22, 2001, from http://legal1.firn.edu/newsrel.nsf/ Stephens, Gerald. (1998, May). Business Credit Magazine. The Rules of Check Fraud Liability are Changing: Are You Prepared? pp. 23, 25. Retrieved December 26, 2001, from http://www.nacm.org/bcmag/bcarchives/1998/articles1998/may/may98art5.html Hibernia Corporation.
(2001, October 22). Press Release. Hibernia Brochures Target Identity
Theft and Fraud; People and Businesses Don't Know How to Protect
Themselves, Studies Show. Retrieved December 27, 2001, from
McDonald, Tim. (2001, April 13). NewsFactor Network. Global Internet Banking Scam Closed, Investigators Say. Retrieved December 27, 2001 from http://www.newsfactor.com/perl/story Associated Press. (2001, December 3). In The Citizen Online. N. H. Businessman latest victim of fraud ring. Retrieved December 28, 2001, from http://www.fosters.com/citizen/news2001/Dec/03/ap1203e.htm Back to Information Security Newsletters Copyright
©2003 Information Security Research Institute |