FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds SUBJECT FORENSIC SCIENCE
Paper No. and Title PAPER No. 16: Digital Forensics
Module No. and Title MODULE No. 23: Identity Theft Frauds
Module Tag FSC_P16_M23
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds TABLE OF CONTENTS
1. Learning Outcomes 2. Introduction
3. Understanding Identity Theft Frauds 4. Typology of Identity Theft Frauds 5. Methods of Identity Theft
6. Crimes facilitated by Identity Theft 7. Summary
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds 1. Learning Outcomes
After studying this module, you shall be able to know about-
The terminologies associated with identity theft and frauds
The difference between identity theft and identity frauds
The types and methods of identity theft frauds
2. Introduction
According to a survey report, around one million individuals are victimized by Identity Theft Frauds every year. Identity fraud is a mounting industry in the criminal underworld. Although such fraud is generally carried out for economic gain, it may also be used to gain access to secure or confidential regions. In this region, minors may attempt to purchase alcohol or gain access to night clubs or gambling establishments. Further deceptive uses may involve aliens seeking territorial entrance or terrorists desiring concealment. In actual fact, personal identification information has become a merchantable article of trade, one whose worth is increasing gradually. Corresponding to other extents of criminal behaviour, approximations on the occurrence of identity theft fraud fluctuate widely. Historically, researchers have struggled to develop a valid arrangement of crime measurement. Regrettably, there are a range of factors which adversely affect a factual measure of crime. These traditional hindrances have included lack of reporting victimization by the public, lack of reporting by police to central agencies, jurisdictional discrepancies in crime measurement, and selective enforcement based on community standards and departmental resources. These characteristics have also been found to affect reporting of identity theft fraud.
3. Understanding Identity Theft Frauds
Customarily, the basic term identity theft has been used to describe any use of stolen personal information. However, such representation fails to provide a comprehensive picture of the totality of possibilities adjoining that concept known as identity. Identity fraud, which comprehends identity theft within its purview, may be defined as the use of a vast selection of illegal activities based on deceitful use of identifying information of a factual or fictitious individual. Thus, it provides for the creation of fictional identities. Originated from a single breeder document, i.e., fictitious or stolen identifiers, identity fraud is committed when a trustworthy identity is created by accessing others’ credit cards, financial or employment records, secure facilities, computer systems, or such.
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds
Upon development of the credible identity, the criminal possibilities are infinite. Petty criminals, for example, may simply engage in several counts of credit card fraud by ordering goods for their personal use. More refined criminals may use such information to create additional lines of credit and separate bank accounts to take full advantage of the profitability of theft. And, terrorists may belligerently abuse the information to conceal their own identity, hide from authorities, gain access to sensitive information, and further their ideological philosophy. The information necessary to execute such activities may originate from a variety of sources, including, but not limited to, names, addresses, dates of birth, social security numbers, taxpayer identification numbers, alien registration numbers, passport numbers, historical information like city of birth or mother’s maiden name, and biometric information such as fingerprints, voice prints, and retinal images. Individuals involved in the theft and utilization of personal identification information and fictitious identities may target upon private citizens, company employees, corporate executives, and government workers.
Altogether, identity theft fraud may be committed by individuals, loose social or business networks, terrorist groups, and criminal organizations. It may be used for personal gain or corporate interests, or to facilitate the globalization of crime by terrorists and organized criminal groups. The criminal acts which may be involved in by such entities include, but are not limited to, money laundering, drug trafficking, foreign smuggling, weapons smuggling, extortion, fund misappropriation, embezzlement, and other financial crimes. Unfortunately, effective procurement of one introductory document of identification empowers its holder to secure a variety of others.
4. Typology of Identity Theft and Fraud
Contrary to the general acceptance, identity theft is not a new phenomenon. In contemporary society, identity theft fraud is characteristically categorized by the intention or motivation of the offender. In the most common sense, identity theft fraud may be bifurcated as either financial or non-financial. Under this wide domain, there are five main types of identity theft frauds befalling:
4.1 Assumption of Identity
This is the rarest form of identity theft fraud and occurs when an individual purely assumes the identity of his or her victim, including all aspects of the target’s lives. It must be noted that this type of activity is uncommon as it is considerably more difficult to achieve.
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds
Even if a thief could identically duplicate the physical characteristics and appearance of his intended target, the possibility of learning personal histories, intimate relationships, and communication tones is extremely remote. However, it is important to note that this type of identity fraud has occurred even in cases where the probability of such assumption limits on the absurdity.
4.2 Theft for Occupation and Territorial Entry
This kind of identity theft fraud is gradually more common due to the development of illegal immigration and foreign smuggling. It includes the fraudulent use of embezzled or fictitious personal information to obtain employment or to gain entry into the territory. In a study, documents most frequently intercepted by officials included alien registration cards, non- immigrant visas, passports and citizenship documents, and border crossing passes. These documents are presented by immigrants who attempt to enter the territory in search of employment or other immigration benefits, like naturalization or permanent residency status.
The study further indicated that large-scale counterfeiting of employment eligibility documents, like social security cards, accredited to the increasing drift of fake documents.
4.3 Criminal Record Identity Theft Fraud
This type is often ignored in discussions of identity theft, maybe because it is not as common or because the immediate financial consequences are not substantial. It has been used traditionally by individuals trying to evade apprehension or criminal prosecution. Reverse criminal record identity theft occurs when a criminal uses a victim’s identity not to engage in criminal activity but to seek gainful employment. Unfortunately, criminal record identity theft fraud is exclusively insidious as it frequently remains undiscovered.
4.4 Virtual Identity Theft Fraud
It is a comparatively new phenomenon. Virtual identity theft fraud involves the use of personal, professional or other extents of identity toward the development of a dishonest virtual personality. Unlike physical identities which are secured to social networks, legal documentation, and biological characteristics, virtual identities are mostly individually constructed. Certainly, virtual identities are often far distant from actuality. They are often used for online dating, role-playing, and accessing deviant sites or locations containing questionable content. Deviant activities associated with this type of identity theft fraud track the scale of traditional illicit behaviour.
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds 4.5 Credit Identity Theft Fraud
Undoubtedly, it is the most common type of identity theft fraud. Credit identity theft fraud, is also the most feared by the public. It may be defined as the use of stolen personal and financial information to facilitate the creation of duplicitous accounts. This explanation, specific by design, requires the affirmative act of securing additional credit. It does not include traditional activities like the illegal use of a stolen credit card, as that activity is more appropriately situated under statutes relating to credit card fraud.
Credit identity theft, on the other hand, is inexhaustible and not bound by the amount of cash or credit which is instantly available. Rather, it allows criminals to create additional sources of revenue through the establishment of multiple accounts.
5. Methods of Identity Theft 5.1 Mail Theft
Although it is hard to identify which method of identity theft fraud is most commonly engaged, the theft of information from physical mailboxes is certainly one of the most common.
Unfortunately, numerous documents containing personal and financial information are deposited in unlocked containers on the side of the road until it is retrieved. Oftentimes, such retrieval is conducted by someone other than the intended recipient and is used to generate illegal profit or to facilitate criminal activities. Physical mailboxes can contain a plethora of valuable information. Several times, they even use mail breeder documents. This includes, but is not limited to, driver’s licenses, passports, and financial statements. Although some thieves randomly target mail boxes, others target those whose red flag indicates outgoing mail.
5.2 Card Skimming, ATM Manipulation and Fraudulent Technologies
A more refined method of data theft involves the reading and recording of personal information encoded on the magnetic strip of an Automated Teller Machine (ATM) or credit card. Once stored, the stolen data is re-coded onto the magnetic strip of a secondary or dummy card. This process is known as Card Skimming, results in a dummy card, which is a full-service credit or debit card indistinguishable from the original while purchasing.
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds
While card skimming was traditionally reserved to facilitate credit card fraud, it is increasingly being employed with the collection of other personal information to create additional accounts.
Card skimmers come in a variety of shapes and sizes. Most often miniaturized cameras or copiers and can be mounted on retail and ATMs. In some cases, thieves have actually developed fraudulent ATMs. Thus, consumers are intensely encouraged to only use those machines that are maintained by financial institutions, and to be alert for any suspicious equipment or attachment.
5.3 Internet Facilitated Methods
The majority of identity theft fraud is still committed by means of traditional or non- technological methods. Although the Internet is presently available to even the most naive computer user, the structure of the medium is essentially vulnerable. Indeed, online identity theft is chiefly facilitated by faults in a range of Internet Standard Protocols created before the implications of cybercrime were revealed. In fact, the World Wide Web was designed not for security but efficiency in which protocols make validation extremely difficult.
6. Crimes facilitated by Identity Theft
Although the theft of personal data is exceptionally profitable, its value often lies in the criminal activity facilitated by the information and not in the theft itself. Identity theft is the introductory element on which some criminals and terrorists construct illegal complex assemblies. The possession of the product in question empowers such individuals or entities to remain unidentified, enter secluded regions, circumvent detection and enforcement, and transfer resources. Crimes facilitated by identity theft fraud include, but are not limited to, student loan fraud, immigration fraud, social security fraud, insurance fraud, credit card fraud, tax fraud, and various telemarketing and Internet scams. They can also incidentally include traditional crimes ranging from auto theft to narcotics or weapons trafficking and organized crime. In fact, criminals can efficaciously exploit fictitious or fraudulent identities to escape detection or avoid prosecution in almost any criminal activity. However, the crimes which are directly facilitated by Identity theft fraud are generally limited to those crimes which are associated with fraud, illegal immigration, or terrorism.
FORENSIC SCIENCE PAPER NO.16 : Digital Forensics
MODULE NO.23: Identity Theft Frauds 7. Summary
Although many sources fail to distinguish between identity theft and identity fraud, a comprehensive definition of the utilization of fraudulent or stolen identification is necessary if legislation, enforcement, and prosecution are to be effective.
The basic term identity theft has been used to describe any use of stolen personal information.
Identity fraud, which comprehends identity theft within its purview, may be defined as the use of a vast selection of illegal activities based on deceitful use of identifying information of a factual or fictitious individual.
The information necessary to accomplish such activities may originate from a variety of sources, including, names, addresses, dates of birth, taxpayer identification numbers, alien registration numbers, passport numbers, historical information and biometric information.
In contemporary society, identity theft fraud is characteristically categorized by the intention or motivation of the offender. In the most common sense, identity theft fraud may be bifurcated as either financial or non-financial.
Criminals can efficaciously exploit fictitious or fraudulent identities to escape detection or avoid prosecution in almost any criminal activity.
