Little Rock FBI SARs and Fraud. SSA Todd Adams and SA Tonja Sablatura

Transcription

1 Little Rock FBI SARs and Fraud SSA Todd Adams and SA Tonja Sablatura

2 LEARNING OBJECTIVES 1. Discuss WHO has to write SARs, WHEN should we write them, WHY write SARs, and WHAT you can do to help LE when writing SARs. 2. WHO are the victims and WHAT YOU should know about them. 3. SCAMS and FRAUDS YOU should be aware of.

3 WHO ARE REQUIRED TO FILE SARs? Many different types of finance-related institutions are required to file SARS: Stock/mutual fund brokers Check cashing and currency exchange bureaus Casinos and card clubs Dealers in precious metals and gems Insurance companies Car dealerships Mortgage companies Plus more

4 Suspicious Activity Reports (SARS) WHAT QUALIFIES AS SUSPICIOUS? PLEASE KEEP DOING THEM! NOTHING IS SILLY Money smells weird Person does not want to fill out CTR paperwork and then decides to structure afterwards Out of country wires by someone without identification Activity in account inconsistent with individual s employment or business purpose for account

5 WRITING SARs When writing SARs: Fill out the whole form (i.e. if name only completed then very difficult for us to do much with it ) Bottom Line Up Front (BLUF) Brief statement of what the SAR is all about. In the body describe what it is, facts, dates, amounts, and what we are dealing with as organized as possible. Contact information in case we have additional questions

6 YOU ARE HELPING LAW ENFORCEMENT When writing a SAR, remember you are helping LE identify individuals, groups, and organizations involved in criminal activities: Mass Marketing and Internet Fraud (too many to list right?) Ransomware, CEO Takeover, Publishers Clearinghouse, Facebook Terrorist Financing Money Laundering Insider trading and securities fraud Tax evasion Counterfeiting SARs also help LE identify emerging trends and patterns associated with financial crimes.

7 Who are the Victims of Fraud? EVERYONE Perpetrators are Masters of Social Engineering well practiced in the art of Persuasion and Manipulation Continually emphasize reward Emphasize scarcity, urgency, and uniqueness Continually increase monetary commitment Develop relationship with victims Not afraid to threaten or frighten the victim

8 Actual Number of Victims Why Victims Don t Report: Shame and Embarrassment Perception that law enforcement won t believe them or act on crime Fear that family will assume control of finances, loss of independence Suffer from cognitive impairments KNOWN VICTIMS UNKNOWN VICTIMS

9 Devastating Impact On Individual Victims: Depression, withdrawal and isolation from family and friends Deterioration of physical and mental health Loss of life savings, home, job, independence Suicidal thoughts and actions.even physical harm from perpetrators

10 Devastating Impact On Family Members: Loss of money and assets on which he/she may have been financially dependent Must cope with family member s loss, grief, financial dependence Sense of anger and helplessness On Legitimate Businesses and Industries: Change in purchasing and payment behavior, consumer suspicions of legitimate direct marketing promotions leads to losses in revenue Exploits, undermines legitimate business processes On National Reputations of Host Countries: Adverse impact on image and reputation of countries and their citizens Discourages trade, investment, and tourism

11 Eluding Law Enforcement Use of Pitch Names and False Identification Multiple Scams, Multiple Groups, Multiple Countries Untraceable Communications Use of Facilitators and Runners Cash-Based Money Transfers Sophisticated Money Laundering Techniques UNCLASSIFIED//LAW ENFORCEMENT SENSITIVE

12 Business Compromise (BEC)

13 Common Variations of BEC? Hacked accounts via spear phishing Spoofed accounts mimicking the real account until one reviews the extended header or hovers over the address Spoofed accounts with slight domain variations vs. Spoofed accounts made similar to legitimate accounts vs.

14 What do you do? What do you do if you are a victim of BEC? Request your financial institution to issue a SWIFT recall File a SAR For domestic institutions request your financial institution to send a hold harmless letter to the beneficiary bank After three days the funds often-times transferred out of the beneficiary account. However, this is not always the case, and the FBI may still be able to pursue a criminal prosecution.

15 What do you do? Funds wired within the last three days: >$50,000 - Immediately report to FBI Little Rock <$50,000 Report to FBI via Internet Crimes Complaint Center (IC3) at Also consider notifying local law enforcement Funds wired more than three days ago: >$50,000 - Immediately report to FBI Little Rock & <$50,000 Report to Also consider notifying local law enforcement

16 IRS SCAM COSTS TAXPAYERS $15MM

17 What is Mass Marketing Fraud Mass Marketing Fraud exploits mass media communication, such as telemarketing fraud, internet fraud, and identity theft. Millions of victims every year and losses in the hundreds of millions.

18 Common Mass Marketing Frauds LOTTERY/SWEEPSTAKES Victims are told that they have won a lottery or sweepstakes in a foreign drawing. To collect the winnings, victims are told they must first pay various taxes and fees. INVESTMENT FRAUD Perpetrators deceive victims with promises of high returns in exchange for devoting investment funds to the purchase of securities, real estate, stakes in oil drilling ventures, coins, gems, and other commodities Zibiah and Paul Gunter, arrested for role in scamming 15,000 UK victims of 35 million in Investment Scam

19 Common Schemes Fake Invoice Scams Nigerian Letter Scams Advance Fee Scams Overpayment Scams CEO Takeover Scheme

20 Other Hot MMF Scams Charity Fraud Dating / Romance Scams Emergency Scams Counterfeit Check Schemes Targeting Attorneys and Businesses

21 MMF Scams Exploit Financial Crisis Mortgage-Related Scams Foreclosure Rescue Scams Loan Modification Scams Loan Forgiveness Scams Debt Elimination Scams

22 Scams Exploit Financial Crisis Debt Collection Fraudulent Credit Card Offers Fraudulent Loan and Grant Scams Credit Counseling Scams FRAUDSTER

23 Scams Exploit Financial Crisis EMPLOYMENT SCAMS Work-at-Home Mystery Shopper Franchise Scams Multi-Level Marketing Plans Financial Agent / Reshipper

24 WHAT ARE YOUR QUESTIONS?

25 Thank You!