Report on Federal Prosecutions of Identity Theft
The Department of Justice is tasked with the prosecution of federal identity theft cases. The report on federal prosecutions is as follows, verbatim, from the task force set up to handle the matter.
Report on Federal Prosecutions
Identity theft is a crime that victimizes people and businesses in every community from major cities to small towns, and robs victims of their individual freedoms. The President’s Identity Theft Task Force, co-chaired by Attorney General Alberto R. Gonzales and Federal Trade Commission Chairman Deborah Platt Majoras, has been working diligently since its inception in May 2006 to develop a comprehensive national strategy to combat identity theft. Beginning with today’s interim recommendations, the Identity Theft Task Force will improve the ability of the government and the private sector to bring identity thieves to justice, to mitigate the risks of identity theft for individuals and companies, and to assist identity-theft victims in recovering from the effects of this pernicious crime.
Bringing Identity Thieves to Justice
The 17 federal agencies and departments that comprise the Task Force each has a particular expertise in substantive areas that impact and can contribute to the federal government’s response to the problem of identity theft. Of these, the FBI, the United States Secret Service (USSS), the United States Postal Inspection Service (USPIS), and the Social Security Administration Office of the Inspector General (SSA OIG) are all empowered to investigate identity theft, and the Department of Justice brings substantial numbers of prosecutions against identity thieves. The results of these efforts include:
- In fiscal year 2005, the Justice Department charged 226 defendants with aggravated identity theft.
- In fiscal year 2006 (through the end of July 2006), the Justice Department charged 432 defendants with aggravated identity theft.
- The FBI reports that it has 1,587 pending identity theft-related cases. It opened 662 identity theft-related cases in 2005, and has opened 272 identity theft-related cases to date in 2006.
- The USPIS reports that it opened 1,530 identity theft-related cases and made 2,277 arrests in Fiscal Year 2005, and opened 1,012 identity theft-related cases and made 1,294 arrests in Fiscal Year 2006 (through June 30, 2006).
- The SSA OIG Office of Investigations reports that it opened 1,566 cases involving SSN misuse in Fiscal Year 2005, and 812 cases involving SSN misuse in the first half of Fiscal Year 2006.
Some recent examples of identity theft prosecutions by the Department of Justice include the following:
FEMA fraud. On September 5, 2006, a defendant was sentenced to more than 10 years imprisonment for running a scheme to defraud the Federal Emergency Management Agency (FEMA), by using false identities to support his claims that he was a victim of Hurricanes Katrina and Rita. The defendant’s scheme involved telephoning the FEMA emergency assistance hotline, providing a false name and address, and claiming to have suffered property damage as a result of the hurricanes.
Skimmers. On June 19, 2006, federal authorities in the Central District of California arrested eight defendants accused of being part of an identity theft ring that "skimmed" account information from debit cards used by more than 100 diners at area restaurants and used the information to steal money from the victims' bank accounts. A ninth defendant was declared a fugitive.
Counterfeit Immigration Documents. On February 13, 2006, a defendant was sentenced in the District of Colorado to 133 months in prison for aggravated identity theft, conspiracy to commit money laundering, and other crimes related to the manufacturing and distribution of counterfeit identity documents, including resident alien cards, social security cards, and various drivers licenses in Denver, Los Angeles, and Chicago.
Stolen Identifications to Open New Accounts. On June 23, 2006, in the U.S. District Court for the Eastern District of Missouri, the leader and organizer of an identity theft ring and her two daughters were sentenced, respectively, to 70 months imprisonment; 2 years and 1 day imprisonment; and 4 years probation with home confinement on aggravated identity theft, identity theft and related fraud charges, in a scheme to use stolen identities to open credit accounts and purchase merchandise.Counterfeit Checks.
On March 8, 2006, a defendant convicted after trial on counterfeiting and identity theft charges was sentenced to 132 months imprisonment and ordered to pay $292,400.00 in restitution, as well as forfeit an automobile and various equipment, including computer equipment, which he used in the scheme. The government presented evidence during that trial that the defendant was the organizer of a conspiracy to manufacture, possess and utter counterfeit securities, specifically counterfeit $100 VISA travelers’ checks, counterfeit bank cashier's checks, and counterfeit U.S. Treasury checks.
Working Across Agencies to Disrupt Identity Theft
Federal authorities lead or co-lead a total of 96 task forces and working groups devoted to identity theft. These include:
Federal Trade Commission: The FTC provides support for criminal law enforcement through its Identity Theft Clearinghouse, the national repository of consumer complaint data. Law enforcers across the country use this secure online resource of more than 1 million complaints to identify trends and targets. This resource encourages greater coordination and data sharing among the more than 1,300 criminal enforcement agencies that have access to this system.
U.S. Attorneys' Offices. U.S. Attorneys lead 17 identity-theft task forces and working groups, in cities such as Philadelphia, St. Louis, and Eugene, Oregon. Twenty-seven U.S. Attorneys' Offices participate in identity theft task forces or working groups.
FBI. The FBI leads four identity theft task forces, and participates in 21 identity theft/financial crimes task forces or working groups in most of the major metropolitan areas. In addition, the FBI's Cyber Division has more than 90 task forces and more than 80 working groups, consisting of federal, state and local law enforcement personnel, which investigate all cybercrime violations, including identity theft and Internet fraud.
Secret Service. The Secret Service has 27 Financial Crimes Task Forces and 24 Electronic Crimes Task Forces that focus on identity theft-related crimes.
Postal Inspection Service: The Postal Inspection Service actively leads 13 Financial Crimes Task Forces/Working Groups in cities across the country.
ICE: Immigration and Customs Enforcement (ICE) has established Document and Benefit Fraud Task Forces (DBFTFs) in 11 cities across the country to enhance interagency communication and improve each agency's effectiveness in fraud investigations.
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As you can see, the federal government has made a start. That being said, much more can and should be done on this most pervasive of crimes.