Identity fraud is the actual deceptive use of the identity information of another person

(living or dead) in connection with various frauds (including for example personating another
person and the misuse of debit card or credit card data). Identity fraud can occur without
identity theft, as in the case where the fraudster has been given someone's identity information
for other reasons but uses it to commit fraud, or when the person whose identity is being used
is colluding with the person committing the fraud

Fraudsters can use the identity details to:

 Open bank accounts.

 Obtain credit cards, loans and state benefits.
 Order goods in your name.
 Take over your existing accounts.
 Take out mobile phone contracts.
 Obtain genuine documents such as passports and driving licences in your name.
 Stealing an individual’s identity details does not, on its own, constitute identity fraud.
But using that identity for any of the above activities does.
 The first you know of it may be when you receive bills or invoices for things you
haven’t ordered, or when you receive letters from debt collectors for debts that aren’t

A distinction can be drawn between identity fraud and identity theft. Identity fraud
refers to the creation and use of false identification or identities whereas identity theft refers to
the theft of a person’s existing identity (stealing someone’s identity or impersonating an
individual).
Identity fraud is an expression that is often used to encompass both types of fraud in
question. Identity fraud has been described as a tool which is used to facilitate some other
criminal act. As noted by Dr Brandi, a forensics expert for the Australian Federal Police,
identity fraud “has become an enabler for many other crimes....A false or stolen driver’s licence
is not usually used to drive a car but to provide identity for illegal immigrants, tax evasion or
money laundering.”

It has been said of identity fraud that it “is one of the fastest growing, and insidious
crime problems in the world today. There are lot of forms and use in facilitating a number of
crimes poses unique and unprecedented challenges that require not only greater planning,

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coordination, and cooperation within and among government agencies, but with those across
national borders as well.”

Factors which influence identity fraud

There are many factors which influence fraud in general. In relation to identity fraud
specifically, technology is a key factor which has influenced the rise in identity fraud. This is
in two key respects: in terms of weakening the integrity of identification and the widespread
collection and dissemination of data (in electronic form) on individuals by private sector and
other organisations which provides opportunities for easier access to personal information.

Who commits identity fraud?

It has been said that identity fraud is “employed by individuals, organised crime groups
and terrorists”. Also, that “It generally involves a person falsely representing him or herself as
either another person or a fictitious person. It may also take the form of a person fraudulently
representing themselves through the misrepresentation of crucial facts regarding their own
identity.”

How is it perpetrated?
There are many ways in which personal information is manufactured or obtained. These
include the use of high-tech means (such as the use of technology to either create false
identification or access personal information) as well as non-technological means (such as
sifting through rubbish bins for bank statements and other information, or looking over
someone’s shoulder as they use an ATM). Hemphill states: “These misrepres entations of same,
stolen or fictitious identities are made possible by either obtaining (through theft or fraud)
documents and / or personal data of another individual, or by the production of false documents
themselves. By taking advantage of weak or ineffective identification and authentication
systems, criminals have victimised consumers, credit card companies, government agencies,
businesses, and entire nations.”
In addition to taking advantage of weak or ineffective ID systems, information is also
obtained by stealing mail, looking over some one’s shoulder whilst they are using a phone,
computer or ATM, or by scanning credit cards via an electronic device such as at a point of
sale (skimming).

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 CASE : Aptos 'neighbors from hell' sentenced in massive ID theft case

SANTA CRUZ -- Lara Love and David Jackson were the "neighbors from hell."

At least that's how prosecutor Steve Drottar described the two, who were sentenced Wednesday
to a year in County Jail for a massive identity theft scheme that ensnared more than two dozen
victims -- mostly neighbors and friends -- in eight months last year.

The couple admitted to 30 counts of possessing others' identifying information, grand theft and
other charges. They each faced 24 years in state prison, but Judge Paul Marigonda gave them
local jail time, drug treatment and five years of supervised probation.

The judge called the case "a very tragic situation. ... It's the twin evils of controlled substance
addiction combined with identity theft."

The couple and their children lived in a quiet Aptos hills neighborhood for about four years.
About a year ago they started stealing their neighbors' mail and pirating Internet access from
the family next door to establish phony accounts in others' names, according to the District
Attorney's Office. Neighbors began noticing odd items arriving in the mail, checked their credit
reports and found accounts they had not opened.

The neighbors pooled information and called the Sheriff's Office. By the fall, Love, 42, and
Jackson, 41, were in front of a judge facing a half-dozen charges each.

The judge released them on their own recognizance in October, and that's when the crime spree
shifted into high gear, Drottar said.

The couple stole credit cards but left wallets behind in vehicles at a private school on Soquel
Drive, which at least one of their children attended. More mail was stolen. Charges -- like a
room at the Seacliff Inn, purchases on amazon.com and charges to online gambling sites --
added up. The total amount of money scammed from people is around $15,000, according to
Drottar.

ID theft is a serious problem in Santa Cruz County. The area ranked 16th in the country in ID
theft consumer complaints in 2008, according to the Consumer Sentinel Network Data Book
published by the Federal Trade Commission last month.

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The case in court Wednesday didn't differ drastically from a normal identity theft investigation,
Drottar said.

"This one's not the most sophisticated one, but there's certainly a lot of victims," he said. "In
sheer volume of victims, these people did a lot of damage ... in a very short period of time."

Both Love and Jackson have admitted drug problems, and Drottar said sheriff's deputies found
cocaine and heroin when searching their home. Deputies also recovered more than 50 pre-paid
gift cards worth thousands of dollars. The couple reportedly said they stole to feed their family.

In court Wednesday, the couple, dressed in street clothes, sat next to their court-appointed
attorneys. Neither Love nor Jackson addressed the 11 former neighbors who came to court to
make statements and watch the hearing, but through their attorneys said they were remorseful
and hoped to turn their lives around.

"She's very sorry for her actions," Love's attorney, Jonathan Gettleman, said.

The two victims who addressed the court told Marigonda the crimes rocked their tranquil,
close-knit neighborhood where some had lived for 40 years.

"My view is these crimes are an assault on the community in which we live," said Bryn Young,
whose family lived next door to the couple and befriended Love's two teenage sons. "Your
honor, these are not faceless crimes."

Denise Elerick, another neighbor, wept as she spoke about the loss of security she felt after her
family was victimized.

"Money can be replaced," she said. "Trust, sense of safety in my home, joy and lightheartedness
-- these things take time."

To date, the couple has made $9,000 in restitution payments to the victims. They are banned
from entering the neighborhood for five years and the judge on Wednesday placed limits on
their Internet use and access to others' personal identifying information. They are also required
to go through drug-treatment programs and will be sent to state prison if they violate any of the
court-imposed terms, Marigonda said.

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 Analysis

According to triangle fraud, this fraud can be occur because of the existence of Pressure,
Opportunity, and Rationalization.

 Pressure
Pressure is what causes a person to commit fraud. Pressure can include almost
anything including medical bills, expensive tastes, addiction problems, etc. Most of the
time, pressure comes from a significant financial need/problem. Often this need or
problem is non-sharable in the eyes of the fraudster. That is, the person believes, for
whatever reason, that their problem must be solved in secret. However, some frauds are
committed simply out of greed alone. In the case, Love and Jackson said that they did
this because they have to feed their family. In the other side, Love and Jackson have
high lifestyle that push them to bought unimportant things.

 Opportunity
Opportunity is the ability to commit fraud. Because fraudsters don’t wish to be
caught, they must also believe that their activities will not be detected. Opportunity is
created by weak internal controls, poor management oversight, and/or through use of
one’s position and authority. Failure to establish adequate procedures to detect
fraudulent activity also increases the opportunities fraud for to occur. Of the three
elements, opportunity is the leg that organizations have the most control over. It is
essential that organizations build processes, procedures and controls that don’t
needlessly put employees in a position to commit fraud and that effectively detect
fraudulent activity if it occurs. This fraud can happened because they live as a neghbors
which enable them to have close relation so that they already trust one to another. The
condition of their neighbors that are not sensitive was a big opportunity for Love and
Jacksond to did fraud and theft. Also, their neighbors mostly ignore the safety of their
identities and their stuffs.

 Rationalization
Rationalization is typically an early trait of first-time and occasional thieves. It
may not apply to predatory individuals who have a highly conscious criminal intent to
steal from a company or employer such as in an organized-crime situation. While

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 rationalization is a starting point for many individuals, the internal need for
rationalization often fades when small lies or thefts are repeated, possibly becoming
more frequent or causing more loss. Typically, the condotion becomes routine over
time, and eventually, the person loses the need for internal justification. As a result,
early detection of fraud is critical in preventing schemes from deteriorating into a more
damaging series of occurrences. Love and Jackson said that they did this criminals just
for their family welfare, they have to feed them, so that Love and Jackson stole their
identity of their neighbors. In the other side, Love and Jackson admitted drug problems
which they used to rationalize their criminals.

Reccomendation

As what happened in the case the only possible things that we can do to avoid identity
fraud is to protecting our identity and stuffs:

 Shred or burn all mail with personal identifying information,

 Lock vehicles and homes,
 Regularly check credit reports,
 Password-protect Internet access at home,
 Keep track of credit cards,
 Don't leave outgoing mail in unlocked mail boxes and pick up incoming mail as soon
as possible

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