Am I Who I Say I Am? A Systems Analysis into Identity Fraud in New Zealand Mireille Johnson A thesis submitted to Auckland University of Technology in fulfilment of the requirements for the degree of Master of Philosophy (MPhil) 2009 Institute of Public Policy Primary Supervisor: Professor Marilyn Waring ii Table of Contents List of Figures ................................................................................................................................ iv List of Tables .................................................................................................................................. v Attestation of Authorship ............................................................................................................. vi Acknowledgements ...................................................................................................................... vii Abstract ......................................................................................................................................... ix 1 INTRODUCTION .......................................................................................................................... 1 2 ETHICS ...................................................................................................................................... 14 3 METHODOLOGY ....................................................................................................................... 18 3.1 SYSTEMS ANALYSIS ........................................................................................................... 18 3.1.1 Introduction ............................................................................................................... 18 3.1.2 Defining a System ....................................................................................................... 19 3.1.3 Defining Systems Analysis .......................................................................................... 21 3.1.4 Applying Systems Analysis to Identity Fraud ............................................................. 22 3.2 KEY INFORMANT INTERVIEWING ...................................................................................... 27 3.2.1 Key Informants ........................................................................................................... 29 3.2.2 The Interview Process ................................................................................................ 33 3.3 PARTICIPANT OBSERVATION ............................................................................................. 37 3.4 SECONDARY INFORMATION.............................................................................................. 41 3.5 REFLEXIVITY ....................................................................................................................... 47 4 LITERATURE REVIEW ................................................................................................................ 53 4.1 CONCEPTUALISING IDENTITY FRAUD ................................................................................ 54 4.2 THE NEW ZEALAND IDENTITY FRAUD ENVIRONMENT ..................................................... 57 4.3 IDENTITY FRAUD SYSTEM ISSUES ...................................................................................... 69 4.4 POLICY AND LEGISLATION ................................................................................................. 83 4.4.1 Policy .......................................................................................................................... 83 4.4.2 Legislation .................................................................................................................. 96 5 FINDINGS ................................................................................................................................ 109 5.1 THE IDENTITY FRAUD ENVIRONMENT IN NEW ZEALAND ............................................... 109 5.1.1 Trends ...................................................................................................................... 109 5.1.2 Issues ........................................................................................................................ 113 5.1.3 Main Threats ............................................................................................................ 117 5.1.4 Abused Documents .................................................................................................. 121 5.2 SYSTEMS ISSUES .............................................................................................................. 125 iii 5.2.1 Identity Crimes and Documents .............................................................................. 125 5.2.2 Identity Verification ................................................................................................. 129 5.2.3 Systems to Minimise Identity Fraud ........................................................................ 140 5.2.4 Improvements in Systems to Combat Identity Crimes ............................................ 147 5.2.5 Identity Fraud Cost and Statistics ............................................................................ 149 5.3 FRAMEWORKS AND LEGISLATION .................................................................................. 153 5.3.1 Frameworks ............................................................................................................. 153 5.3.2 Legislation ................................................................................................................ 157 6 CONCLUSION .......................................................................................................................... 164 REFERENCES .............................................................................................................................. 177 GLOSSARY.................................................................................................................................. 185 APPENDIX A – Auckland University of Technology Ethics Committee (AUTEC) Approval Memorandum ........................................................................................................................... 188 APPENDIX B – Participant Information Sheet ........................................................................... 190 iv List of Figures Figure 1: Percentage of Fraud Offences Resolved from 1999 to 2008. Adapted from Fraud statistics from 1999 to 2008, Statistics New Zealand, personal communication, June 30, 2009. 7 Figure 2: Number of Recorded Offences for Take/Obtain/Use Doc for Pecuniary Advantage from 1999 to 2008. Adapted from Fraud statistics from 1999 to 2008, Statistics New Zealand, personal communication, June 30, 2009. ..................................................................................... 8 Figure 3: Identity Fraud System Model ....................................................................................... 11 Figure 4: Fake Massey University Students’ Association Webpage ............................................ 63 Figure 5: Website - Fakepassport.cn ........................................................................................... 64 Figure 6: Website – Photobucket.com ........................................................................................ 65 Figure 7: New Zealand Identity Documents Displayed from a Google Image Search ................ 66 Figure 8: New Zealand Passport Image and Personal Information Displayed Online ................ 67 Figure 9: What Trends in Identity Fraud Have Emerged in New Zealand? ............................... 111 Figure 10: What Do You Think the Issues are Surrounding Identity Fraud in New Zealand? ... 114 Figure 11: Where Do You Perceive the Main Threat of Identity Fraud Comes from in New Zealand? .................................................................................................................................... 118 Figure 12: What Documents of Identity are Mainly Abused in New Zealand? ......................... 123 Figure 13: What are the Consequences to Your Organisation and the Public for Ineffective Identity Verification? ................................................................................................................ 136 Figure 14: Does Your Organisation Have Best Practice Parameters Around Identity Verification? .................................................................................................................................................. 139 Figure 15: What Improvements Would You Like to See in Your Organisation’s Systems to Combat Identity Crimes? .......................................................................................................... 148 Figure 16: How Much Has Identity Fraud Cost Your Organisation to Date? ............................ 151 Figure 17: What Do You Think About the Current Legislative Provisions for Identity Fraud Offences? .................................................................................................................................. 158 Figure 18: Capturing the Identity Fraud Environment in New Zealand - An Identity Policy Led Model ........................................................................................................................................ 172 v List of Tables Table 1: Timetable of Interviews ................................................................................................ 31 Table 2: A Sample