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 January 2008 Back to Table of Contents Back to Archives Main Page Section: Life & Leisure Protecting Yourself from Fraud and Identity Theft By Christopher Schobert
There are answers to all of these questions, and there ways to minimize your personal risk and protect your personal information. If you are a victim, there are many ways to take quick action, and put a stop to fraudulent activity. Locally, Hilbert College in Hamburg is at the forefront of the fight against white collar crime. The school’s Economic Crime Investigation Department is one of only a few programs of its kind in the country. Chief Scott R. Patronik works in the Special Services Division of the Erie County Sheriff’s Office and has been involved in computer crime and identity theft cases for more than 10 years. Patronik is also an instructor in Hilbert’s ECI department. He recently discussed how to protect yourself with Forever Young. How can people, especially the elderly, to protect themselves? They should have a trusted family member assist them with the following steps. First, take advantage of the New York State Security Freeze Law by visiting www.consumer.state.ny.us/security_freeze.htm. [A security freeze locks access to a credit file; it prevents someone from opening a new credit card under your name.] Review your credit report at least annually; you can get one a year for free. Consider opting out of unsolicited mail (credit card applications, etc.) at www.dmachoice.org/MPS. Promptly remove them, or have someone pick up your mail for you. And destroy, by shredding, all finanical applications and statements before disposing of them to prevent someone from going through your trash. What are some everyday things to watch out for? Study monthly account statements carefully, and call the institution immediately if anything looks suspicious, such as unfamiliar debit or charges, or evidence of having an unfamiliar account. What should one do if they believe someone may have stolen their identity? Contact the institution immediately and follow the instructions on the Erie County Sheriff’s Office web page: www.erie.gov/sheriff/idtheft.htm. How do we fight back against ID thieves? Protect or monitor your personnel information. Also, corporate America has to play a big role in protecting customer data; that’s where a lot of information ID thieves use comes from in the first place. Encrypting information is one way. The rise of identity theft can definitely be linked to the increased use of our electronic identities. In addition to the aforementioned sites, Patronik said several others that can be a major help. These include the Federal Trade Commission’s identity theft web site: www.ftc.gov/bcp/edu/microsites/idtheft/; the US Department of Justice’s identity theft website: www.usdoj.gov/criminal/fraud/websites/idtheft.html; and the Social Security Administrations’s identity theft website: www.ssa.gov/pubs/idtheft.htm. Another member of Hilbert’s ECI department, associate professor William Haslinger, is also a local expert on economic crime. He told Forever Young what constitutes such crime, how students in the program learn about it and what advice he has for personal protection. What constitutes economic crime? Depending on the criminologist or sociologist you ask, the answer to this question will vary. I define economic crime as a non-violent crime which is committed by someone who uses deception or fraud to obtain some financial gain or reward. How does the faculty at Hilbert prepare its students to detect economic crime? To deal with sophisticated economic crimes in today’s age of technology requires skill sets in accounting, criminal justice and computer technology. Students in the ECI program take courses in these three disciplines. In the area of accounting, students learning the basic accounting skills required to conduct fraud investigations. In the area of criminal justice, students are taught a base of knowledge in the laws regarding economic crime, as well as the investigative processes that are unique to financial investigations. In the area of computer technology, students learn skills involving computer and network technology, the security of computer systems and the investigative processes relating to the forensic examination of digital evidence. As technology advances, do the crimes become more and more sophisticated? How do you keep up? I recently gave a presentation regarding cyber crime to a group of high school students who are members of Future Business Leaders of America. I entitled my presentation, “Cyber Crime: DeJaVu All Over Again.” I chose this title because, in my opinion, there is nothing new about the economic crimes being committed today from those committed prior to the evolution of technology. All technology does is give a criminal more tools in their crime toolbox with which to commit their crimes. Today, evidence of economic crime is more likely to be found in digital form rather than in paper form, but it is still the same evidence. Today’s economic crime investigator needs all of the skills sets traditionally required plus the additional skill set of being conversant in the current technology. How and where does most economic crime occur? Economic crime occurs everywhere. It happens because our capitalistic economic is based upon a simple tenet: greed. There will always be greedy people who will be willing to violate the law to increase their wealth. And there will always be naïve and trusting people who will be victims of economic crime. Sociologist Dr. Donald Cressey developed a theory regarding why people commit economic crime which has come to be known as the “Fraud Triangle.” He suggests that people commit these crimes when, first, an opportunity exists because, for example, an organization has poor internal control. Second, the person has some financial pressure that they cannot share with others, for example personal vices such as gambling or a drug habit. And third, they rationalize a justification for their fraudulent behavior, for example, telling themselves that they really need the money and will eventually give it back. What advice would you give to people, especially seniors, to protect themselves? A convicted fraud felon whom I’ve met gives this advice to auditors regarding looking for fraud when auditing business records: do not follow the traditional audit maxim of “Trust, but verify.” Instead, follow the maxim “Don’t trust, and verify.” Whenever someone is involved in a financial transaction they should be cautious, and verify whatever the other party says, even if they are relatives or friends. Another truism should also be on the minds of people whenever they are involved in any type of financial transaction: “If it sounds too good to be true, it probably is.” back to top back to table of contents Current Issue | About Forever Young | Where to Find | Advertise | Our Advertisers | Community Calendar | Contest | Clubs | Contact Us | Archives | Home |
