Old-School Identity Theft on the Rise

Old-school identity theft is making a strong comeback, with fraudsters targeting unsuspecting victims by using stolen checks, fake IDs, and forged signatures. This resurgence has left banks and government authorities scrambling to address the increasing threats.

One particularly concerning trend is the quality of fake IDs available for purchase. High-quality counterfeit driver’s licenses and passports are easily accessible, making it difficult for bank tellers to distinguish them from genuine IDs. In Janna Herron’s case, a criminal managed to withdraw $11,300 from her account using a fake ID that appeared legitimate to the bank teller.

Herron’s ordeal also revealed several lapses in bank procedures. The fraudster used her maiden name, which hadn’t been associated with her accounts since 2010, and even misspelled her first name on two withdrawal slips. Additionally, the tellers failed to record the ID form and number on the back of the withdrawal slips, a breach of protocol that could have flagged the fraudulent activity.

To execute these heists, criminals need specific information such as bank account numbers and fake IDs. Platforms like Telegram, a cloud-based encrypted messaging service, have become popular forums for selling stolen documents. This platform is often referred to as “the new dark web” due to its use by criminals for illicit transactions.

Professor David Maimon from Georgia State University, who specializes in criminal justice and criminology, provided insights into how these fraudsters operate. He highlighted how stolen checks, obtained through various means including home or car robberies and thefts from the U.S. postal system, are sold on platforms like Telegram. These checks alone don’t provide enough information for creating fake IDs, leading criminals to pay insiders at banks and credit bureaus for additional personal data.

The rise in these types of identity theft cases underscores the importance of robust security measures and vigilance. As Ian Mitchell, founder of the Knoble, a nonprofit network dedicated to fighting fraud, pointed out, fraudsters are constantly evolving their techniques and looking for weak points in financial institutions’ defenses. Banks must continually update and enforce their anti-fraud measures to stay ahead of these criminals.