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![Page 1: ECI Conference USPIS Fraud Crime Trends Deputy Chief · PDF fileECI Conference USPIS Fraud Crime Trends ... Target blue collection boxes ... 475 L’Enfant Plaza SW Washington,](https://reader031.vdocuments.site/reader031/viewer/2022022421/5a8976017f8b9afe568b4738/html5/thumbnails/1.jpg)
| 11/7/2011 1
ECI Conference
USPIS Fraud Crime Trends
Deputy Chief Greg Campbell
November 2, 2011
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Current Trends
Operation Birds of
Prey
Check Theft from
business hold outs
Mail Theft / Fishing
Operation Homeless
Operation Jolt
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| 11/7/2011 3
Operation Birds of Prey
Fraudulent tax returns filed using stolen identities
Social Security numbers stolen from Puerto Rico citizens
Tax refund checks mailed to addresses in eight states
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| 11/7/2011 4
Operation Birds of Prey
Refunds range from
$4,000 - $6,000
EFO Divisions plus
Chicago and Detroit
investigating
Tax Year 2011 losses
exceed $200 million
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| 11/7/2011 5
Operation Birds of Prey
Mailed refunds stolen
from apartment panel
boxes
Fraudulent changes of
address submitted
USPS employees
recruited to assist in
scheme
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| 11/7/2011 6
Operation Birds of Prey
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| 11/7/2011 7
Operation Birds of Prey
Fraudulent tax returns filed electronically and loaded
onto Green Dot cards
Able to load 4 tax returns onto each Green Dot card
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| 11/7/2011 8
Operation Birds of Prey
Goal is to defraud
government
Also use counterfeit
postage to file returns
Letter Carriers robbed
for collection keys
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| 11/7/2011 9
Operation Birds of Prey -
USPIS Response
I-95 Corridor Working Group re-established March, 2011 to combat this fraud
Goal to identify, disrupt and dismantle groups responsible
More than 100 suspects identified
More than 50 arrests to date
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| 11/7/2011 10
Business Hold Out Theft
Companies contract with banks to process their payments
Banks given a unique zip code (Business Hold Out)
Several PO Box numbers within the zip code
Companies assigned a specific PO Box number
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| 11/7/2011 11
Business Hold Out Theft
Couriers pick up mail
within zip code for
banks
Couriers drop off at
processing facility for
banks
Banks credit
business’ account
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| 11/7/2011 12
Business Hold Out Theft
Checks stolen after sortation to PO Box
Individuals recruited to open business bank accounts
Stolen checks deposited into new account
Funds withdrawn from account
Ring leaders most often West African
Checks often negotiated in another state
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| 11/7/2011 13
Business Hold Out Theft
4 cases open in the Atlanta
Division
Suspects different in each case
10 arrests made in these 4
cases
Known losses exceed $1.7
million
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| 11/7/2011 14
Fishing
Problem is widespread:
Phoenix
Los Angeles
San Francisco
Seattle
Texas
New York
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| 11/7/2011 15
Fishing
Different types of devices used
Target blue collection boxes
Sticky substance used
Tools also used to pry open boxes
Look for financial documents - checks / money
orders
Perpetrator either washes check or sells to another
for cash or drugs
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| 11/7/2011 16
Fishing Devices
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| 11/7/2011 17
Fishing Devices
Vertical Blind
Sticky
substance
used on the
end
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| 11/7/2011 18
Fishing Caught on Tape
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| 11/7/2011 19
Fisher Caught and Arrested
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| 11/7/2011 20
Fishing Prevention Device
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| 11/7/2011 21
Operation Homeless
Mail stolen from business parks
Counterfeit checks created
“Street People” recruited to cash checks
Homeless
Day Laborers
Prostitutes
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| 11/7/2011 22
Operation Homeless
Ring Leaders from Atlanta, GA and Charlotte, NC
areas
Travel up and down I-95
Commonalities of group:
Use rental cars
Make checks out for $5,000 or less
Carry weapons to intimidate street people
Many have criminal records related to drug
charges
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| 11/7/2011 23
Operation Homeless
I-95 Corridor Working
Group
Eastern Field Offices
plus Chicago and
Detroit
Sharing intelligence to
combat this scheme
Phone database
established to share
information
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| 11/7/2011 24
Operation Homeless - Scope
18 open cases in nine Divisions
Loss amount exceeds $7 million
At least 360 suspects identified
83 arrests have been made
Investigations ongoing
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| 11/7/2011 25
Operation Homeless - Prevention
Operation Check Fraud
Campaign initiated by USPIS and VA Attorney
General
Educate potential recruits
Distributed posters to 17 social service agencies in
NC and VA
Homeless shelters
Soup kitchens
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| 11/7/2011 26
Operation Jolt
Multi-agency effort to
combat Jamaican
Lottery scam
Victims mailed
notification they have
won lottery
Advised they must
pay fees on winnings
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| 11/7/2011 27
Operation Jolt
Focus: Identify,
disrupt and dismantle
Jamaican based
telemarketing fraud
operations
Many victims are US
senior citizens.
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| 11/7/2011 28
Operation Jolt - Scope
Victims sent ≈$100M to Jamaican fraudsters in
2010
2011 losses estimated at $300M
Proceeds primarily used to fund weapons
smuggling
36,000 complaints received from victims
86,000 victims identified through other means
Fighting over victim lead lists has lead to violence
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| 11/7/2011 29
Operation JOLT - Prevention
Intelligence-based investigations
Education - US Citizens (via AARP, etc)
Enforcement - 2011 focus to dismantle 11
identified fraud networks
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| 11/7/2011 30
Questions and Comments
USPIS Criminal Investigations Group
Mail Theft Program Manager
Joe Cronin
475 L’Enfant Plaza SW
Washington, D.C. 20260
(202) 268-6903