Prepared
Witness Testimony The Committee on Energy and Commerce W.J. "Billy" Tauzin, Chairman Identity Theft: Assessing the Problem and Efforts to Combat It. Lieutenant Colonel Ralph M. Periandi
Good morning Mr. Chairman and members of the Committee. I am Lt. Col. Ralph
M. Periandi, Deputy Commissioner of Operations for the Pennsylvania State
Police. On behalf of Colonel Jeffrey B. Miller, Commissioner of the Pennsylvania
State Police, I would like to thank the House Energy and Commerce Committee for
this opportunity today to speak on the issue of Identity Theft. Identity Theft is delineated in Title 18, the Pennsylvania Crimes Code,
Section 4120. This statute indicates a person commits the offense of identity
theft of another person if he possesses or uses, through any means, identifying
information of another person without consent of that other person to further
any unlawful purpose. The unlawful activity could involve a criminal utilizing a
victim's personal information in order to obtain access to loans, credit or
debit cards, bank accounts, services such as telephone or cable, or personal
property ranging from groceries to automobiles. Following the tragic events of
September 11, 2001, law enforcement must also consider the use of another
persons identifying information by criminals or terrorists in an attempt to gain
access to restricted areas/information in order to further their criminal
enterprise. In recent years, the crime of Identity Theft has grown in scope with the
advent of the inexpensive personal computer. Those criminals possessing
familiarity with computers now have powerful resources at their disposal. By
obtaining personal biographical and financial information, which is readily
available on the Internet, an identity thief can pose as anyone. Additionally,
by utilizing the wide range of high quality computer peripherals available, they
are able to craft documents and identification, which allow them to create new
identities or steal the identity of someone else. Another computer aided method
of committing Identity Theft is known as "skimming".
"Skimming" is the practice of reading and storing the magnetic
information on a debit or credit card. It is easily accomplished by those in the
service or retail industry by "swiping" a provided credit or debit
card through a second card reader at the time of a legitimate transaction. The
stored information is then used by that individual or sold to others for
criminal purposes. Conversely, the technologically challenged identity thief continues to resort
to time tested low-tech methods for obtaining the personal information of a
victim. Stealing mail and digging through garbage generally provides the
criminal with extensive personal information to include the victim's full name,
date of birth, social security number, bank account information, utilities
account information, address, and telephone number. Armed with this knowledge,
the identity thief is ready to apply for credit or access funds in the name of
the victim. Currently, the best source for documented statistical information concerning
the problem of Identity Theft is the Federal Trade Commission (FTC). The FTC has
been maintaining data and information regarding this crime since enactment of
the Identity Theft and Assumption Deterrence Act in 1998. (Pub. L. No. 105 -
318, 112 Stat. 3007) In furtherance of this Act, the FTC developed the Identity
Theft Data Clearinghouse and its reporting vehicle, the Consumer Sentinel. To
quantify the problem of identity theft, the following information is provided
from the Consumer Sentinel: Continuing, in an effort to quantify this problem since the inception of the
Pennsylvania statute regarding Identity Theft in 2001, the Pennsylvania State
Police have received 714 complaints involving this crime. 302 were received in
the year 2001, while 412 were received in 2002. This represents a 27% increase. This data provides a general overview of the raw, cold statistical
information regarding the crime of Identity Theft. What it does not provide is
insight into the associated emotional problems victims of this crime encounter.
Many individuals do not discover they are the victim of Identity Theft for
months, if not years. Some victims have been duped for as long as five years.
Upon discovery, victims must spend significant amounts of time contacting
creditors and credit reporting agencies in an attempt to repair the damage to
their credit histories. While this is occurring, they are often unable to obtain
credit and financial services, telecommunication and utility services, and even
employment. Many victims report having wages garnished and tax refunds withheld.
In those instances when an identity thief has received a criminal record in the
victim's name, victims have reported having licenses revoked, failing background
checks, and even being arrested or detained. Combating the crime of Identity Theft in Pennsylvania requires law
enforcement to achieve three main objectives. First, law enforcement personnel
must be properly trained and informed regarding this crime. Second, they must be
appropriately staffed with criminal investigators to conduct these sometimes
in-depth and lengthy investigations. Finally, the public needs to be provided
with information concerning methods to protect themselves from Identity Theft,
as well as information regarding the steps to take should they become a victim.
Each of these objectives will be explored more fully. In Pennsylvania, the State Police are tasked with providing police services
to those areas and citizens, who find themselves without their own police
department. We are a full service department, performing functions ranging from
traffic enforcement to criminal investigations. Our criminal investigators are
responsible for the investigation of all types of crime. As such, our
investigators must receive training and obtain expertise in all facets of
criminal investigations. Training specific to Identity Theft and fraud is
available to them and Pennsylvania's law enforcement community through numerous
sources. Some examples are: the Pennsylvania State Police Academy; the Middle
Atlantic-Great Lakes Organized Crime Law Enforcement Network (MAGLOCLEN); the
National White Collar Crime Center (NW3C); the International Association of
Financial Crimes Investigators; the U. S. Department of Justice; and local
banking institutions. Generally, individual instances of Identity Theft are investigated by a
Criminal Investigator assigned to one of our Troop commands. In those instances
when a case of Identity Theft is indicative of organized criminal activity, the
Pennsylvania State Police rely upon the Organized Crime Division of the Bureau
of Criminal Investigation. Members of this specially selected group of
investigators are strategically located in task forces throughout Pennsylvania.
They work with their Troop counterparts, as well as local and federal
investigators on cases involving large monetary losses, which are usually
associated with organized groups of criminals. These groups may be associated
with traditional organized crime, displaced ethnic groups, or simply
enterprising local criminals. Identity Theft is increasingly becoming an
international crime with roots in Canada, Eastern Europe, Asia and Africa. This
has made prosecution difficult and in some cases impossible even with the
involvement of federal law enforcement agencies. In an attempt to deter or mitigate the crime of Identity Theft, the
Pennsylvania State Police provide the following information to law enforcement
agencies and the general public: How Do I Protect Myself?
These and other protective measures will not absolutely guarantee you will never
become a victim of Identity Theft, but employing one or more of these can
drastically reduce your risk:
What If I Become A Victim of Identity Theft?
Identity Theft can occur even if you have been careful about protecting your
personal information because of the ever-increasing skill employed by
professional thieves. The exact steps that you should take after becoming a
victim of Identity Theft will vary depending upon your circumstances, but in
most instances, the following steps should be taken:
Unfortunately, it is impossible to protect yourself entirely from Identity
Theft, but following the safeguards detailed herein can certainly reduce your
risk. Publications by the Federal Trade Commission (FTC) can provide further
information on how to prevent Identity Theft. These publications can be obtained
by contacting the FTC by telephone at 1-877-IDTHEFT or by visiting their web
sites at http://www.ftc.gov or at http://www.consumer.gov. Phone counselors at
the FTC can assist callers on how to take advantage of their consumer rights and
on what actions need to be taken to restore their credit.
Additionally, The Pennsylvania State Police provides numerous other services
to Pennsylvania's citizenry and law enforcement community in dealing with the
problem of Identity Theft. The Bureau of Forensic Services offers examination of
questioned documents, handwriting comparisons, and patent and latent fingerprint
identification and comparison. The Polygraph Unit in many instances is required
to determine the veracity of involved suspects. The Community Services Unit
performs speeches and provides information to community groups concerning how to
reduce the probability of becoming a victim of this type of crime. The Bureau of
Criminal Investigation through the Department's 'Pennsylvania Criminal
Intelligence Center' (PaCIC), provides Briefs, which contain information
concerning prevention and response methods for crimes such as Identity Theft. In
addition, ongoing analysis of data helps PaCIC to identify trends in an effort
to alert law enforcement statewide to potential organized efforts to commit
Identity Theft. Finally, with the advent and ease of access to computer
technology, the State Police Area Computer Crime Task Forces have become an
invaluable resource to Pennsylvania law enforcement, particularly in those
instances when a computer has been utilized in some way to steal an individual's
identity or commit a crime utilizing another's identity. As you can see, the Pennsylvania State Police brings a wide variety of
investigative resources to combat the evolving problem of Identity Theft in the
Commonwealth. Through experience, we have learned to utilize and share these
resources with local, state and federal investigators. Only by sharing resources
and staying ahead of the criminal mind will we be effective in this crime
fighting effort. Finally, recent legislative changes to Pennsylvania's Identity Theft statute
have made investigation and prosecution for this crime a more efficient and
effective process. Penalties have been stiffened and venue now includes the
residence or employment address of the person whose identifying information has
been lost or stolen or has been used without the person's consent. The
clarification of venue is particularly important as many of the crimes
associated with Identity Theft occur in other jurisdictions, states, or
countries. In closing, I would like to thank the Chairman and members of the Committee
for the opportunity to address you today on this issue. As a member of the
Pennsylvania State Police, each officer carries on a tradition of excellence
begun in the year 1905. As part of this tradition, it is the mission of each
member to effectively investigate crime and criminal activity, provide
investigative assistance and support to ALL law enforcement agencies within the
Commonwealth, and promote public awareness concerning personal responsibility
regarding crime reduction. This includes the crime of Identity Theft. I welcome
the opportunity to respond to any questions or comments you may have. The
Committee on Energy and Commerce |
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