Transcript Work at Home / Repackaging Fraud Global Raleigh NC Police

Examining an Emerging
Internet Fraud Problem:
Who Has Responsibility &
What Should Be Done?
Facilitator: Dr. Graeme R. Newman
Kristen Rosselli, RPD Strategic Initiatives Mgr.
Patrick Niemann, RPD Training Sergeant
POP Conference 2005, Charlotte NC
Work-at-Home/
Repackaging Fraud
Raleigh NC Police
Work-in-Progress
POP Conference 2005, Charlotte NC
Raleigh, NC USA
POP Conference 2005, Charlotte NC
M.O. of the Crime

Two Variations of the “Work at
Home” scam:
1. Re-Packaging Variant
2. Money Order Variant
(variants can also be combined)
POP Conference 2005, Charlotte NC
Commonalities to Both Variants

All victims responded to a job listing
which advertised “work at home”
opportunities.
POP Conference 2005, Charlotte NC
Job Ad Example
POP Conference 2005, Charlotte NC
Commonalities to Both Variants


All suspects were overseas.
At the request of the suspect, all
victims provided detailed resumes.
POP Conference 2005, Charlotte NC
Commonalities to Both Variants

The suspect will “use” each victim for
approximately two weeks.
POP Conference 2005, Charlotte NC
Re-Packaging Variant


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Victim is advised that they will receive
parcels from several areas within the USA.
The victim is then instructed to repackage or combine the parcels, and ship
them to the suspect (overseas).
The victim is sometimes referred to a
specific carrier’s (i.e. UPS) business
shipping account for postage.
POP Conference 2005, Charlotte NC
Re-Packaging Variant
What’s really going on…


The suspect is purchasing high-value
items online with stolen credit card
numbers.
The orders are shipped to the victim,
who re-packages them, and forwards
them to the suspect.
POP Conference 2005, Charlotte NC
Re-Packaging Variant
There’s More…

Sometimes, when using “corporate
shipping” accounts, the victim was
unknowingly billing himself for the
shipping.
POP Conference 2005, Charlotte NC
POP Conference 2005, Charlotte NC
Money Order Variant


Victim is advised that they will
receive money orders, from various
sources within the USA.
The victim is then instructed to cash
the money orders. They are allowed
to keep a small amount for
themselves (usually 5%), but must
wire the remainder to the suspect.
POP Conference 2005, Charlotte NC
Money Order Variant
What’s really going on…

The suspect is posting fictitious items
on online auctions. He instructs the
“winner” of the auction to send the
price of the item, via money order, to
the re-shipper.
POP Conference 2005, Charlotte NC
POP Conference 2005, Charlotte NC
Additional Impact to the Victim


Upset merchants, auction bidders,
and law enforcement are contacting
the re-shipper, demanding answers
or restitution.
Since the re-shipper has provided a
resume to the suspect, continuing
identity fraud is a possibility.
POP Conference 2005, Charlotte NC
International Aspects
POP Conference 2005, Charlotte NC
International Aspects
POP Conference 2005, Charlotte NC
There can be several distinct
crimes…

Fraud

Identity Theft

Credit Card Fraud

Computer Crimes?
POP Conference 2005, Charlotte NC
RPD Statistics
Several case reports were filed with
RPD, which ultimately identified:


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3 re-shippers in Raleigh
15 victims throughout the US who
sent money orders or merchandise
Two countries where proceeds were
being sent (Russia, Ukraine)
POP Conference 2005, Charlotte NC
National Statistics
No authoritative data yet on re-shipping
scams in particular, however…

From 1/1/04 through 12/31/04, there
were 12,703 work-at-home and business
opportunity fraud complaints reported to
the FTC’s Consumer Sentinel.
Source: FTC’s “National and State Trends in Fraud and Identity
Theft” published 2/1/05.
POP Conference 2005, Charlotte NC
Typical Investigation

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Out-of-town victims are called, and
interviewed at length.
Raleigh victims / re-shippers are
visited and interviewed.
Court Orders are obtained for IP
addresses (email trace).
POP Conference 2005, Charlotte NC
Typical Results

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Re-shippers were unusually naïve,
and desperately hopeful.
All IP address traces ultimately
ended overseas.
POP Conference 2005, Charlotte NC
Prosecution Results


State Prosecution declined on local
re-shippers, and no jurisdiction on
foreign suspects.
Crime / damages do not meet
threshold for prosecution at US
Attorney’s Office (NC Eastern
District). Therefore, no FBI, USSS,
etc. involvement or adaptation.
POP Conference 2005, Charlotte NC
Are victims warned?

Caveat on “jobspider.com”
POP Conference 2005, Charlotte NC
Are Victims Warned?

Caveat from IFCC
POP Conference 2005, Charlotte NC
Scanning

Emerging complex crime in Raleigh

Multiple victims/case

$7,000 - $20,000/case

~2 week window

Multiple jurisdictions/case

Low solvability factors
POP Conference 2005, Charlotte NC
Analysis

Analyzed crimes separately

Underlying cause: “Opportunity”

Vulnerable victims

Vulnerable networks

Motivated offenders
POP Conference 2005, Charlotte NC
Analysis: Resources

COPS Guides

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Identity Theft
Check and Card Fraud
Financial Crimes Against the Elderly
Shifting & Sharing Responsibility for Public
Safety Problems

POP Center website: popcenter.org

Police Practitioners & Researchers
POP Conference 2005, Charlotte NC
Analysis
Job Scam
Victims/Targets
Re-packager/Re-shippers
Online Merchants
Shipping Companies
Credit Card Companies
POP Conference 2005, Charlotte NC
Analysis
Places/Systems
Internet
E-job websites
Newspaper Ads
Job Scam
Email Services
Online Merchant
Websites
Shipping
Networks
US/ Int’l Shipping
Locations
Banking Networks
POP Conference 2005, Charlotte NC
Analysis
Offenders
Scammers
Repackaged
Parcel Recipients
Job Scam
POP Conference 2005, Charlotte NC
Analysis
Places/Systems
Offenders
Internet
Scammers
E-job websites
Newspaper Ads
Repackaged
Parcel Recipients
Email Services
Job Scam
Online merchant’s
websites
Banking Networks
Shipping Networks
& Locations
Victims/Targets
Int’l Reshipping
Re-packager/Re-shippers
locations
Online Merchants
Shipping Co.
Credit Card Co.
POP Conference 2005, Charlotte NC
Analysis
Offenders
Places/Systems
Identity Thieves
Internet
Online product
purchasers
Online merchant
websites
Identity
Theft
Shipping networks
& locations
Place CC was
compromised
Victims/Targets
Credit Card Theft Victim
Re-shipper
Online Merchants & Shipping Co.
Credit Card Co.
POP Conference 2005, Charlotte NC
Analysis
Offender
Places/Systems
Ebay Auction Site
Scouts
Internet
Website Designer
Email Services
Ebay Auction Sites
Internet
Fraud
Victims/Targets
Ebay Bidder
Ebay
Re-shipper
POP Conference 2005, Charlotte NC
Money Order
Locations
US & Int’l
Shipping Networks
& Locations
Analysis: Job Scam

High offender commitment

Financial gain

Organized crime

Predatory & consensual/
participatory V-O relationships
POP Conference 2005, Charlotte NC
Analysis: Job Scam
Victim Facilitation

Making initial contact

Providing personal info

Allowing shift to trust & waives
customary safeguards

Believing offender’s pitch

Providing access to funds
POP Conference 2005, Charlotte NC
Analysis
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How capable are they?
Who else can help solve the
problem?
Who has ownership?
POP Conference 2005, Charlotte NC
Analysis
Job
Scam
Guardians
Family
Email Providers
Law Enforcement
Corp Fraud Depts
FCC & FTC
Media
ISP
Financial Institutions
Credit Reporting Agencies
Shipping Companies
POP Conference 2005, Charlotte NC
Analysis
Place/Systems
Managers
Email Providers
ISPs
Job
Scam
Website
Managers
Newspaper Ad
Depts
Corp Fraud/
Security Depts.
Package Delivery
Services
Package
Receivers
POP Conference 2005, Charlotte NC
Mailbox
Companies
Analysis
Handlers
Law Enforcement
Organized Crime
Members
Others
Job
Scam
POP Conference 2005, Charlotte NC
Response

Solving cases

Preventing future opportunities
POP Conference 2005, Charlotte NC
Response: Solve Cases

Exhausted all leads

DA declined to prosecute

Little to no solvability

Cases inactivated

Seeking other response ideas…
POP Conference 2005, Charlotte NC
Response: Prevention

Attempted to influence

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Addressed motivation of “owner”


Victims & Guardians
Place/System & Managers
Offenders & Handlers
Unable, unwilling, gain more from ignoring,
profit from crime
Requested prevention efforts

Voluntary – Coercive
POP Conference 2005, Charlotte NC
Assessment

Not effective at removing causes

No prosecution

Some business practice changes

Problem continues

Seeking suggestions…
POP Conference 2005, Charlotte NC
Request for Feedback

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What other information should be
collected?
Who is in the best suited to address
problem?
Other response ideas?
What are other ways to measure
success?
POP Conference 2005, Charlotte NC
Shifting/Sharing Responsibility



What level of “due diligence” is
required for emerging crimes?
What are the public’s expectations of
local police response?
How much local police resources
should be used?
POP Conference 2005, Charlotte NC
Contact Information
Kristen Rosselli
Raleigh Police Department
919-890-3865
[email protected]
Patrick Niemann
Raleigh Police Department
919-872-4144
[email protected]
POP Conference 2005, Charlotte NC