Identity Theft In This Issue Identity Theft: The Scope of the Problem............................ 1 March By Jonathan J. Rusch 2008 Identity Theft: Applicable Federal Statutes and Charging Decisions. .... 6 Volume 56 By Sean B. Hoar Number 2 Identity Theft and Social Security Numbers: Attacking Identity Theft at its United States Department of Justice Source........................................................ 1 9 Executive Office for United States Attorneys By John K. Webb Washington, DC 20530 Identity Theft Sentencing. ....................................... 2 7 Kenneth E. Melson By Richard W. Goldberg Director Contributors' opinions and Task Force Versus Working Group: A Small District Perspective. ..... 3 2 statements should not be considered an endorsement by By Alfred Rubega EOUSA for any policy, program, or service. Model Programs: Eastern District of Pennsylvania................... 3 5 The United States Attorneys' Bulletin is published pursuant to By Richard W. Goldberg 28 CFR § 0.22(b). Oregon Identity Theft Fast Track Program......................... 3 8 The United States Attorneys' Bulletin is published bimonthly by By Sean B. Hoar the Executive Office for United States Attorneys, Office of Legal Education, 1620 Pendleton Street, Columbia, South Carolina 29201. Managing Editor Jim Donovan Program Manager Nancy Bowman Internet Address www.usdoj.gov/usao/ reading_room/foiamanuals. html Send article submissions and address changes to Program Manager, United States Attorneys' Bulletin, National Advocacy Center, Office of Legal Education, 1620 Pendleton Street, Columbia, SC 29201. Identity Theft: The Scope of the Problem Jonathan J. Rusch Deputy Chief Fraud Section Criminal Division I. Introduction the billions of dollars." Id. at 11. The 2006 Javelin Research survey found that losses to businesses Identity theft is considered to be one of the and others due to identity fraud totaled $56.6 most pervasive forms of white-collar crime in the billion. Rubina Johannes et al., 2006 Identity United States. According to an October 2006 Fraud Survey Report, JAVELIN STRATEGY & survey by Javelin Strategy & Research, more than RESEARCH, Jan. 2006, note 1, at 1. 8.4 million U.S. adults were victims of identity theft in the preceding year. Rachel Kim et al., There are many ways in which victims of 2007 Identity Fraud Survey Report, JAVELIN identity theft may suffer direct financial harms, STRATEGY & RESEARCH, Feb. 2007, at 1, varying with the types of information that identity abbreviated version available at http://www. thieves obtain and the ways in which that acxiom.com/AppFiles/Download18/Javelin_ID_ information is used. These include misuse of their Theft_Consumer_Report-627200734724.pdf. existing credit cards and debit card accounts, While this crime takes many forms—from local opening new accounts (including credit or debit vehicle break-ins and trash theft (see, e.g., card, loan, and utilities) by criminals, issuance of United States v. Gonzales, 7:04 CR021-R (N.D. government benefits or services in the victims' Tex., Oct. 21, 2005), to international Web sites names to unqualified individuals, and purchases gathering personal data (see Press Release, of motor vehicles and other valuable items with Sophos, The Italian Job: 26 arrested for Poste the victims' funds or credit. See, e.g., Federal Italiane phishing attack (July 16, 2007)) (on file Trade Comm'n, Take Charge: Fighting Back with author), available at http://www.sophos. Against Identity Theft, Feb. 2006, available at com/pressoffice/news/articles/2007/07/italian- http://www.ftc.gov/bcp/edu/pubs/consumer/ phish.html.—"it invariably leaves victims with the idtheft/idt04.pdf. task of repairing the damage to their lives." Victims generally are not liable for debts that President's Identity Theft Task Force, Combating identity thieves create in their names. If the Identity Theft: a Strategic Plan, PRESIDENT'S misuse involves a consumer's existing credit card IDENTITY THEFT TASK FORCE, Apr. 2007, at 1, account, it can be relatively easy for the consumer available at http://www.idtheft.gov/reports/ to remedy the situation by calling the card issuer, StrategicPlan.pdf. reporting the fraudulent transactions, and providing supporting information. If the misuse II. Types of harm from identity theft involves a consumer's existing debit card or checking account, the victim should ultimately be A. Financial harm able to have the fraudulently obtained funds In the aggregate, victims of identity theft restored to the account, pending resolution of the suffer substantial losses. Estimates of aggregate claim by the financial institution. The consumer, losses due to identity theft vary, but the however, may be temporarily deprived of access President's Identity Theft Task Force stated that to those funds. In addition, in cases involving "the data show that annual monetary losses are in creation of new credit card accounts, the victim MARCH 2008 UNITED STATES ATTORNEYS' BULLETIN 1 may not learn of the identity theft until a creditor the retired captain's name and with his or debt collector contacts him or her. That contact Social Security number. The military may not take place until after the identity thief has identification, combined with the victim's already used those accounts and amassed then-excellent credit history, allowed the substantial debt in the victim's name. identity thief to go on an unhindered spending spree lasting several months. Unfortunately, victims may have to spend From July to December 2001, the identity hundreds, if not thousands, of dollars recovering thief acquired goods, services, and cash, from the crime. Expenses may include notary fees, in the victim's name, valued at over certified mailings, hiring of counsel, and lost $260,000. The victim identified more than income. Nonfinancial losses, such as lost time sixty fraudulent accounts, of all types, that spent correcting credit reports, disputing were opened in his name: credit accounts, fraudulent accounts, and obtaining new identity personal and auto loans, checking and documents, also can be substantial, as described savings accounts, and utility accounts. below. The identity thief purchased two trucks Although many cases of identity theft involve valued at over $85,000 and a Harley- smaller amounts of money, ranging from a few Davidson motorcycle for $25,000. The dollars to a few hundred dollars, other identity thief also rented a house and purchased a thefts can lead to more substantial losses. The time-share in Hilton Head, South 2006 Javelin Strategy survey found that, while the Carolina, in the victim's name. median fraud amount per victim was $750, the President's Identity Theft Task Force, Combating mean fraud amount per fraud victim was $5,720. Identity Theft: A Strategic Plan, PRESIDENT'S Rubina Johannes et al., 2006 Identity Fraud IDENTITY THEFT TASK FORCE, Apr. 2007, at 10, Survey Report, JAVELIN STRATEGY & RESEARCH, available at http://www.idtheft.gov/reports/ Jan. 2006, at 2. Because the median (the midpoint StrategicPlan.pdf. of the range of losses per victim, where half are below and half above that midpoint) is • In another instance, an elderly woman substantially lower than the mean (the total losses suffering from dementia was victimized divided by the number of victims), these data by her caregivers, who admitted to indicate that many identity theft victims have lost stealing as much as $200,000 from her thousands of dollars, if not more. See, e.g., before her death. The thieves not only National Institute of Standards and Technology used the victim's existing credit card (NIST)/Sematech, Engineering Statistics accounts, but also opened new credit Handbook § 1.3.5.1 (July 18, 2006), available at accounts in her name, obtained financing http://www.itl.nist.gov/div898/handbook/eda/ in her name to purchase new vehicles for section3/eda351.htm. While losses of this themselves, and, using a fraudulent power magnitude can be burdensome for more affluent of attorney, removed $176,000 in U.S. individuals, they are devastating for persons of Savings Bonds from the victim's safe- more modest means. deposit boxes. Two instances that the President's Identity Id. at 10. Theft Task Force cited in its recently-issued It should be noted that identity-theft victims Strategic Plan show how substantial a single may have to spend more than de minimis amounts victim's financial losses can be. of money out of their own pockets to resolve their • [I]n July 2001, an identity thief gained situations with creditors, or administrative or law control of a retired Army Captain's enforcement agencies. The 2007 Javelin Strategy identity when Army officials at Fort survey found that the average victim of existing Bragg, North Carolina, issued the thief an account fraud paid $587 to resolve the problem. active duty military identification card in The average victim of new account fraud paid 2UNITED STATES ATTORNEYS' BULLETIN MARCH 2008 $617 to resolve the problem. Rachel Kim et al., victim's name as being associated with the 2007 Identity Fraud Survey Report, JAVELIN criminal acts that the identity thief committed STRATEGY & RESEARCH, Feb. 2007, at 1. under the victim's name. This, in turn, can lead to mistaken arrests by law enforcement officers who B. Nonfinancial harms rely, in good faith, on those law enforcement In addition to direct financial harm, victims of records. identity theft often suffer nonfinancial harms from The number of mistaken arrests of identity which it may take substantially longer to