challenges in business id theft
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CHALLENGES IN BUSINESS ID THEFT IN THE UNITED STATESCheri L. Myers, Corporations DirectorNC Department of the Secretary of State
Who uses our data?
NC Secretary of StateElaine F. Marshall
Brief History 2010 – Growing number of business identity
theft cases discovered across the country, especially in Georgia and Colorado
April 2011 – NASS Business Identity Theft Taskforce formed 19 Secretaries of State Every region represented
2011 NASS Business Identity Theft Forum
Develop proactive strategies for combating this relatively new form of crime
Purpose Key Emphasis: Balance between convenience and unauthorized access
2012 NASS BUSINESS IDENTITY THEFT WHITE PAPER: www.NASS.org Role of Secretaries of State in reviewing
business filings – limited authority Challenges to tracking the issue
Lack of clear data Lack of penalties and laws that allow
prosecution Multi-jurisdictional investigations
Recommendation #1Establish a statewide taskforce on business identity theft of key stakeholders
Recommendation #2
Develop a state action plan
Recommendation #3
Establish a notification process for businesses in your state
Recommendation #4Establish clear steps for victim assistance and education
Recommendation #5Conduct outreach to raise awareness and urge preventive action
Resources Developed April 2012 website launched www.BusinessIDTheft.org
Developed by NASS in partnership with Identity Protection Association
Provide state-by-state resources for victims
2016: Business Identity Theft Task Force Reconvened March 10, 2016 Elaine F. Marshall (NC) and Paul Pate (IA)
Co-Chair Public Outreach Education Cyber Security Data Protection
North Carolina Has the authority to reject
documents Provides free E-mail notification
subscriptions Allows filers to submit affidavits to
correct fraudulent changes Works closely with law
enforcement to identify and prosecute
Tales from North Carolina Fall 2011: Surge of Complaints about
Unauthorized Revocation of Voluntary Dissolutions
November 2011: Modified Procedures around Reviewing Revocations of Dissolutions
Result? Within 6 months, All Unauthorized Activity STOPPED!
Most Recent Major Case NCSOS staff investigated a business identity theft
case that resulted in over 1 million dollars in losses collectively to 3 major cell phone companies
Scheme hijacked legitimate business identities and creation of entities created solely for fraudulent purposes
January 2016, 2 defendants charged with serious felonies; mandatory prison time if convicted
Why is this case relevant?
These schemers were active in TEN other states!
Conversations Needed
Internet Issues
Services to Citizens
Criminal Activity
International
