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Fraud Prevention Blog

Why All Businesses Should Take Heed of the 7-Eleven ICE Raid

Posted by Stephanie Cho on Mon, Jan 29, 2018 @ 01:01 PM

If you are in noncompliance with Form I-9 requirements, your business could pay a rather hefty penalty.

Topics: regulatory compliance, I-9 compliance, Employee Verification, identity verification, identity authentication

Increase Transaction Security Through Identity Verification

Posted by Sean Trundy on Fri, Jul 17, 2015 @ 08:00 AM

Accurate identification papers are essential to safeguarding financial and legal transactions as well as many other sensitive exchanges. Specialty ultraviolet lights are important instruments used in the fight against fraudulent presentation. The right detection tools can augment existing fraud detection practices while empowering your employees and agents with greater defenses against the use of false identity documents.

Topics: identity theft, verification of ID, Employee Verification, authenticating drivers licenses, authenticating driver's licenses, counterfeit ID, ID Verification, fraud prevention protection, fraud prevention

Anatomy of Retail Fraud - $10,000 Inside Theft by LP Manager

Posted by Sean Trundy on Mon, Jul 23, 2012 @ 01:59 PM

Anyone that has been in retail for any length of time knows that protecting your company's assets from employee theft is a continuing process.  In a recent study done by the National Retail Security Survey, the majority of retail theft is done by employees.  According to the Study nearly 44% of all theft is internal.  That was the situation in the case of employee theft at Walmart recently.  Three employees, including a loss prevention officer were arrested on charges of felony shoplifting.

The three men stole electronics, computers, and general merchandise.  They were caught by the store manager when he began to review surveillance tape to determine if one of the men was committing time card fraud.  Upon reviewing the tapes he saw the three men at various times steel the items and in some instances openly walked past cashiers without paying.IN an least one instance, one employee pretended to scan the items while his accomplice bagged them.

Protecting your company's asset's from your own employees is a matter of reducing or eliminating the opportunity to steal.  In this case, even though it was a loss prevention manager, one would think that he would be aware that video camera surveillance is in place.  Technology, while essential in the fight against theft, both internal and external is not an end-all solution.  Even if the knowledge that employers are watching, routinely given to employees in the form of reminders that technology exits and is in use to prevent theft, is often not enough.

Topics: retail fraud, Employee Verification

Why eVerify Cannot Prevent Identity Theft

Posted by Sean Trundy on Mon, Feb 27, 2012 @ 02:07 PM

In a recent speech to the GOP faithful, Presidential Candidate Mitt Romney held up Arizona’s immigration control program, which relies heavily on a public database called E-Verify, as the model for the nation. Unfortunately, as sometimes happens during public discussions, it made for a better sound bite than a practical plan.

Romney told the crowd “I think you see a model in Arizona. They passed a law here that says -- that says that people who come here and try and find work, that the employer is required to look them up on E-Verify”, the database that would allow employers to determine the immigration status of applicants. He cited a reported 14% drop in the number of illegal immigrants in Arizona as proof it worked.

If elected, he promised to export the Arizona model to the nation at large: “I will make sure we have an E-Verify system and require employers to check the documents of workers, and to check E- Verify." Mr. Romney did not have command of all the relevant facts, however. The E-Verify database only checks the names on documents for employment eligibility. No effort is made to check on the authenticity of the documents themselves.

If the documents presented are forged, the entire logic of E-Verify breaks down. Illegal immigrants with stolen identities will easily circumvent the checks because that identity they assume does have legal status. In short, E-Verify will only catch the low-hanging fruit from illegal immigrants. Those even slightly more sophisticated will be able to obtain a counterfeit driver’s license and social security card using information taken from an unsuspecting victim, and will easily pass the check.

This is not a new discovery, either. Back in 2010 an independent evaluation of E-Verify by Westat, a Rockville, Maryland-based social science research firm, commissioned by the USCIS (U.S. Citizenship and Immigration Service) Office of Policy and Strategy found that more than half (54%) of the unauthorized workers flagged by E-Verify were flagged because of some form of identity fraud.

In other words, most of the illegal workers who try to pass themselves off as legal used a stolen identity -- most likely a forged driver’s license or social security card. There are likely many more of them who used forged documents and were never flagged by E-Verify -- which, after all, is not set up for document authentication. That major flaw did not escape the attention of the Society for Human Resource Management, which said the Westat report supports what they have been saying for years -- “that E-Verify doesn’t have the proper protections and safeguards in place for detecting identity fraud”.

 Id Authentication Whitepaper

Topics: identity theft, verification of ID, Employee Verification, authenticating drivers licenses, authenticating driver's licenses

How ID Authentication can help the war against terrorism

Posted by Sean Trundy on Thu, Jan 26, 2012 @ 08:50 AM

The world has changed much since September 11, 2001.  Awareness of how fragile our way of life can be, what steps must be taken to protect it and what might happen if we don't, is now a constant part of our national psyche.  It is probably safe to say that while the degree of American military involvement overseas may fluctuate with the times and conditions, the War on Terror at home likely will not.  Although anti-terrorism efforts are focused on potential overt acts of violence by international terrorist groups, it is specter of domestic covert acts intended to generate funding for terrorism that is at the forefront of our national security efforts. 

The Patriot Act expanded the concept of terrorism to include domestic terrorism.  The Act states, in pertinent part: 
(5) the term `domestic terrorism' means activities that--
`(A) involve acts dangerous to human life that are a violation of the criminal laws of the United States or of any State;
`(B) appear to be intended--
`(i) to intimidate or coerce a civilian population;
`(ii) to influence the policy of a government by intimidation or coercion; or
`(iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping; and
`(C) occur primarily within the territorial jurisdiction of the United States.'.
Detecting activities intended to finance terrorism is extremely difficult.  Financial institutions are not expected to distinguish terrorist financing from other criminal misuse of the financial system.  They are, however, tasked with ascertaining whether any transactions are suspicious, either because they are unusual or, by their very nature, are indicative of potential criminal activity.  

Money laundering is at the heart of most illegal financial transactions and is made possible through the use of identity theft.  Many measures have been enacted to require financial institutions and other businesses to detect and assist the U.S. government in preventing money laundering.  These include, among others, the Bank Secrecy Act, regulations from the Office of Foreign Assets Control, the Know Your Customer Act, the Fair and Accurate Credit Transactions Act and the Red Flags Rule developed by the FTC. 

Underlying these statutes, regulations and rules is the basic concept of identifying the person who attempts to conduct a financial transaction (e.g., a wire transfer, purchase of a money order, opening a new account, etc.) with the intention of ultimately funding terrorism or other criminal activity.  Because identifying the person suspected of engaging in such activity is paramount to any criminal investigation, priority is placed on identity verification. 

There are many identity verification tools available.  The Fraud Fighter™ line of identity authentication equipment provides the degree of technological sophistication and effectiveness necessary to ensure compliance with the laws pertaining to the monitoring of financial transactions and identity verification.Id Authentication Whitepaper   

Modeled on the same concepts used to secure IT networks from intrusion, Fraud Fighter™ will optimize organizations' regulatory compliance framework by helping structure an intelligently "layered" approach to the problem. "Layering", in this context, means targetting the appropriate level of technology at the appropriate level of threat. So, for those areas where risk exposure is minimal, lower end (and less expensive) equipment can be utilized, while higher risk activities are equipped with the higher-end, most technolgically advanced soutions.

Topics: verification of ID, I-9 compliance, Employee Verification, authenticating drivers licenses, authenticating driver's licenses, counterfeit ID, ID Verification

A New Chinese Counterfeit Problem: Fake Driver Licenses

Posted by Sean Trundy on Thu, Aug 11, 2011 @ 11:39 AM

As if it weren’t already difficult enough to verify identity documents, now comes a new wrinkle in the game – high-quality counterfeit driver licenses produced by overseas factories.

Topics: identity theft, I-9 compliance, Employee Verification, bank secrecy act, authenticating driver's licenses, counterfeit ID

Proper I-9 Employment Verification - Beyond “Good Faith”

Posted by Sean Trundy on Tue, Jul 13, 2010 @ 02:00 PM

There’s a lot of semantic debate these days over what to name foreign nationals who violate U.S. immigration policies and national laws – whether you call them illegal immigrants, illegal aliens or undocumented workers, it comes down to the same thing at the end of the day for every business: hire them, and you’ll pay big fines if detected. Though the majority of U.S. companies do not intend to violate immigration laws; in fact, more compliance violations occur from nonexistent or simple lazy I-9 verification than intentionally shady hiring practices. Breaking the law is easily accomplished if you’re not properly prepared; the bottom line is this –

Topics: regulatory compliance, I-9 compliance, Employee Verification, fraud prevention