By Kevin Byrne, Senior Regulatory Consultant, Wolters Kluwer Financial Services
After reading the article below, you wonder how a person can successfully perpetrate new account fraud via identity theft at a financial institution (FI). Simply put, it shouldn’t happen.
ID theft is now “old news” and we all know how the thieves get the information and what information they need to get on a person to attempt to steal identity. With name, address, TIN, DOB and mother’s maiden name, ID thieves reacked havoc on unsuspecting consumers years ago. Suprisingly, it’s still happening.
A robust CDD and EDD program that “authenticates” customers attempting to open accounts at an FI goes beyond the basic questions of name. address, TIN, etc and asks detailed previous history questions that only the true customer can know. After asking the series of questions, a scoring result is presented to the FI so that a logical and informed decision can be made surrounding the potential customer. The use of this type of automation can prove to be invaluable to the FI by preventing new account fraud, loan fraud, ID theft etc. A solid ROI can be proven in minimal time by preventing just one bad customer from getting into the FI. Making the arrest of the bad guy is one thing – but actually preventing the fraudster from vicitmizing your bank in the first place is another – and should be your ultimate goal.
Myrtle Beach man sentenced for bank fraud, identity theft
Myrtle Beach man was sentenced in federal court for bank fraud and aggravated identity theft, U.S. Attorney W. Walter Wilkins said today.
Abdurrahman Cetin, 43, was sentenced to seven years in prison, to be followed by five years on supervised release, Wilkins said. Cetin was also ordered to pay $40,246.53 in restitution.
Evidence presented at trial showed that Cetin collected the personal and financial information of customers at a Toyota dealer in Long Island, NY, while working there as a salesman in 1999, Wilkins said.
Cetin saved the information and when he moved to Myrtle Beach, he used the information to open five bank accounts and obtained lines of credit at two Myrtle Beach banks, Wilkins said. When opening the accounts, Cetin gave other people’s names, dates of birth, and social security numbers.
He then withdrew money on the lines of credit he had established, Wilkins said.
Cetin was arrested at one of the banks and a search of his residence turned up six driver’s licenses with Cetin’s picture on them but in other people’s names, and 37 credit cards which had been issued matching the names on the counterfeit driver’s licenses, Wilkins said.
Other individuals’ credit reports and a computer used by Cetin to order counterfeit driver’s licenses were also found, Wilkins said.
