AUTHOR:
TerrorismCentral Editorial Staff
TITLE:
TerrorismCentral Newsletter - November 24, 2002
SOURCE:
TerrorismCentral, November 24, 2002
TEXT:
News this week ranges from the disastrous attempt at holding the Miss World contest in northern Nigeria to the latest news on human rights and terrorism trials around the world.
Last week the feature on social engineering pointed out one of the greatest security risks we face, and one of the most difficult to mitigate: validating identity. Identity management is one of the largest challenges facing us today, and we continue exploration of this topic with an article on identity theft.
This was originally developed as a case study for the Massachusetts eCommerce Association (http://www.massecomm.org) as part of the series on the extended enterprise in financial services. For details on how to get the complete case and reference materials, email
This theme will continue in the future with articles on identity cards and emerging standards for identity management. As the series emerges, we will also discuss the balance between privacy (human rights) and safety (collective security).
CONTENTS:
NEWS HIGHLIGHTS OF THE WEEK:
1. World
2. Africa
3. Americas
4. Asia Pacific
5. Europe
6. Middle East
7. South Asia
8. Cyberterrorism and Information Warfare
9. Finance
10 Human Rights
11. Law and Legal Issues
12. Narco-terrorism
13. Transportation
14. Weapons of Mass Destruction
15. Recently Published
FEATURE ARTICLE:
Identity Theft
This week’s NATO alliance meeting saw agreement to expand the alliance to include former Soviet republics and a continued focus on the part of the US for an attack against Iraq. Many of its allies, including Russia, urged the world not to lose focus in the fight against terrorism, and to let weapons inspections in Iraq proceed in accordance with the recent UN resolution.
Attempting to address the root causes of conflict, the Secretary General of the United Nations, called for a new approach to global security with multilateral cooperation that, by maintaining essential freedoms could prevent handing “terrorists a victory that no act of theirs alone could possibly bring”. He stressed that “After Srebrenica, after Rwanda, after genocide, all of us need to affirm that sovereignty means responsibilities as well as power; and that among those responsibilities, none is more important than protecting citizens from violence in war”. (http://www.un.org/news)
The UN has called on the international community for help in a number of initiatives:
* Humanitarian aid to areas of conflict including Afghanistan, Angola, Burundi, Chechnya and neighboring Russian republics, DR Congo, DR Korea, Eritrea, Ethiopia, Guinea, Indonesia, Liberia, the occupied Palestinian territories, Sierra Leone, Somalia and neighboring southern African countries, Sudan, Tajikistan, and Uganda.
* A new report from the Global Alliance for Vaccines and Immunization describes the “vaccine gap”, a shortage of vaccines in the developing world, largely caused by reorganization of pharmaceutical companies and reduction in donations. Without actin now, new infections could have a devastating effect.
* Environmental protection, including new treaties on desertification and wildlife conservation
* New opportunities in e-commerce to benefit developing countries (see the UN report at http://www.unctad.org/Templates/Startpage.asp?intItemID=2068&lang=1
* November 25 is the International Day for the Elimination of Violence Against Women
For a related perspective, see Guy de Jonquieres article “As countries clamour for bilateral agreements, the prospects of creating a truly open global economy recede.” Financial Times, November 19, 2002.
Following last week’s confirmation of new warnings from Osama bin Laden and the al Qaeda network the US State Department issued a global warning that Americans might be targets of terrorist activities. Many American allies are on similar alerts.
2. Africa
The broad impact of AIDS in Africa is covered in two articles in The New York Times. Alex de Waal writes about “What AIDS Means in a Famine” in November 19’s Op Ed page. Henri E. Cauvin writes of “AIDS Imperiling African Armies key to Stability of Many Nations”, published November 24.
Nine Algerian soldiers were killed and twelve injured in a bombing and gun attack by suspected Islamic rebels.
Angola’s peace process has progressed enough that a UN Commission has recommended that sanctions against the UNITA rebels be lifted. The Security Council will review the recommendations.
Burundi’s government forces are still fighting Forces for the Defense of Democracy (FDD) rebels. The attempted peace process has stalled and the numbers of dead and injured continues to rise.
Although fighting continues in Democratic Republic of Congo, a draft transitional agreement has been completed. People continue to flee and the UNHCR has begun issuing identity cards to the refugees and asylum seekers. See Marc Lacey’s “War Is Still a Way of Life for Congo Rebels” in The New York Times, November 21, 2002
Djibouti is being built up with a massive US military presence. A profile of the country “US sees Djibouti as strategic point: But fears attacks in Muslim nation” by Raymond Thibodeaux appeared in the Boston Sunday Globe on November 24, 2002
Ethiopia, facing massive starvation, rejected Eritrea’s offer of access to its ports.
The government of Ivory Coast continues to raze shantytowns, leading to tens of thousands of homeless refugees. Combined with continued rebel fighting, this is leading to a massive humanitarian crisis. Rebels and mediators have proposed peace plans but there has been little progress.
Election campaigns in Kenya have begun with logistical problems and increasing levels of violence that have killed at least six.
Nigeria has been the scene of major riots between Christians and Muslims in which more than 100 people have been killed, and some 500 injured. The violence was sparked in response to a newspaper comment regarding the Miss World contest that was considered insulting to Islam. The Kaduna area in northern Nigeria is the center of Islamic movements and Sharia law. In similar communal violence two years ago, more than 2,000 were killed. Miss World has been moved to London.
Peace talks in Somalia are proving a major diplomatic challenge, as the effort to reconcile the different faction leaders is proving daunting.
Sudan’s truce has been extended, but peace talks ended without an agreement. Sudan had forbidden Ugandan troops to cross the border in their hunt for Lords Resistance Army rebels, but relented a day later.
3. Americas
Bermuda is featured in a Financial Times World Report published November 22. See http://www.ft.com/bermuda2002
Three bombs in Bogota, Colombia, injured two people.
Ecuadorians are voting in the second round of presidential elections. It appears that leftist and former rebel leader Lucio Gutierrez is poised to win. Note “Indians See Their Political Influence Rising in Ecuador” by Juan Forero, The New York Times, November 24, 2002.
Demonstrations in Haiti attracting thousands for and against President Aristide continue amid increasing street violence.
In the US, creation of the new Department of Homeland Security has been approved as well as a terrorism insurance measure that would make the government the insurer of last resort and limit liability in the case of terrorist attacks. Funding for these initiatives has not been released.
The US Immigration and Naturalization Service has added 13 nations to the list of those at higher risk of terrorism subject to special entrance requirements including fingerprinting and photographing. They are Afghanistan, Algeria, Bahrain, Eritrea, Lebanon, Morocco, North Korea, Oman, Qatar, Somalia, Tunisia, United Arab Emirates and Yemen. INS is still attempting to develop a tracking database for visitors.
As they did for a time during World War II, US Courts have issued recent rulings deferential to government requests for increased security at the expense of civil liberties. In response, the executive branch has been eager to expand intelligence gathering and other broad investigative and prosecutorial powers.
Alden, Edward and David Landes, “FBI’s increased powers under spotlight” Financial Times, November 21, 2002
Bravin, Jess. “U.S. Gains Powers in Terror Fight” The Wall Street Journal, November 19, 2002
Chaddock, Gail Russell. “Security act to pervade daily lives” The Christian Science Monitor, November 21, 2002
Davis, Ann. “FBI’s Post-Sept. 11 ‘Watch List’ Mutates, Acquires Life of Its Own: Bureau Gave It to Companies; Now, Out-of-Date Versions Dog Some People Named: Still Citing theAtta Brothers” The Wall Street Journal, November 19, 2002
Fainaru, Steve and Margot Williams, “Many held by US have not testified” Washington Post, published in Boston Globe, November 24, 2002
Human Rights Watch, “U.S. Homeland Security Bill: Civil Rights Vulnerable and Immigrant Children Not Protected” November 21, 2002, http://hrw.org/press/2002/09/us0927.htm
Kulish, Nicholas and Ann Davis. “White House Defends Pentagon Data-Mining Plan” The Wall Street Journal, November 21, 2002
Lewis, Neil A., “Court Overturns Limits on Wiretaps to Combat Terror” The New York Times, November 19, 2002
Lewis, Neil A., “U.S. Says Revealing Names Would Aid Al Qaeda” The New York Times, November 19, 2002
Lichtblau, Eric. “Justice Dept Acts To Use New Power In Terror Inquiries: Seeking Secret Wiretaps: Lawyers Assigned in Step to End Wall Between Spying and Law Enforcement” The New York Times, November 24, 2002
Markoff, John. “Terror-Tracking Agency Weighed, but Discarded, Plan reconfiguring the Internet. The New York Times, November 22, 2002
Mason, Barnaby. “US tightens surveillance laws” BBC News, November 19, 2002 http://news.bbc.co.uk/2/hi/americas/2492521.stm
Milligan, Susan “Military recruiters getting a foot in door: Federal education bill requires high schools to share student data” Boston Globe, November 21, 2002
Schlesinger, Robert. “US plan to screen more data defended” Boston Globe, November 21, 2002
US. “Exceprts from Court’s Ruling on Justice Dept.’s Broad Powers” The New York Times, November 19, 2002
Venezuela has again experienced violent protests, dispersed by troops.
4. Asia Pacific
The Australian government has asked for increased security powers.
Burma has released 115 political prisoners.
Note Amy Kazim and Richard McGregor’s article “China modernisation march turns Mekong into battleground: Pressure for dams has pitched poor ethnic minorities against industrial centres” Financial Times, November 20, 2002
Indonesian police have made great progress in uncovering those responsible for the Bali bombing. Their tactics have drawn criticism, particularly raids on boarding schools. Imam Samudra, allegedly the mastermind of the bombing, and two other men, were arrested and seven other suspects have been identified. For details on the suspects, see BBC News “The Bali Bombing Suspects” November 21 at http://news.bbc.co.uk/2/hi/asia-pacific/2385323.stm
The Indonesian government and separatist Aceh rebels have agreed a ceasefire and will sign a peace agreement on December 9.
In Japan, a US air base was attacked with explosives from a rocket launcher. Responsibility and motives are unclear.
North Korea says it will refuse entry to fuel oil inspectors, following the US blockage of fuel aid. They will also ban the use of US dollars.
5. Europe
See a 3-part series reporting on “The New NATO” and the addition of eastern European countries published in The Christian Science Monitor, November 20-23.
Cyprus peace talks will begin under UN auspices.
In Chechnya two kidnapped Red Cross workers were freed from rebels holding them by a pro-Russian militia group. There were two bombs near a stadium, but no casualties.
Turkey will allow Kurdish-language broadcasts.
More details surfaced over the warnings of a gas attack on the London Underground and arrest of three suspects in the case. Prime Minister Blair has reassured the British public that despite frequent warnings of new terrorist incidents, he would inform them if any specific warnings were received.
Members of the British Conservative party have called for a new homeland security cabinet post, modeled after the US department.
Conversations among conflicting parties in Northern Ireland continues to resurrect the Good Friday Agreement. The British government has proposed to continue with 22 bills designed for devolution even though the assembly has been suspended.
6. Middle East
The United Nations has issued an update on the condition of Palestinian refugees. Half now live on less than $2 per day and 22 percent of children suffer from malnutrition, a level comparable to that in DR Congo or Zimbabwe. The International Labor Organization has suggested creating a pilot program for basic social security that could be used as a model for other poor countries.
In Egypt, Mustafa Mashour, leader of the banned Muslim Brotherhood, died in prison from a stroke at the age of 81. He had been in prison for over 20 years. The search for new leadership is underway, possibly with someone who would like to move towards participation in democratic processes.
The occupied Gaza strip was repeatedly raided and more buildings were razed. In a suicide boat attack, two militants with Islamic Jihad attacked an Israeli patrol boat, killing themselves and injuring four. Israel has now banned Palestinian fishermen from the coastal waters.
Iran’s students continue to clash with hardline militia groups. Protests had begun over the death sentence of prominent academic Hashem Aghajari. The sentence is now under review.
Iraq is preparing the report on all research programs, plants or materials that could be used for weapons production. UN weapons inspectors have arrived. The oil for food program has helped reduce malnutrition among Iraqi children by nearly half a million. The Iraqi government issued a one-month ban against the newspaper Babel, run by Saddam Hussein’s son Uday.
Iraq and Jordan reached an agreement for oil, transporting Iraqi crude through a pipeline to be refined in Jordan. They plan other joint ventures.
Turkish police investigating the attempted hijacking of an El Al flight found that the accused Tevfik Fukra had concealed a small knife in his belt. It was his first time on a plane; he has no known associations with militant groups and is thought to have acted alone.
A suicide bombing in west Jerusalem killed 11 and injured 40.
Jordan’s harsh crackdown of dissidents following the murder of an American diplomat looks set to unleash an extreme backlash. US officials have offered free flights to non-essential diplomatic staff to encourage them to leave the country, but still says Jordan is a close ally and safe place.
A Kuwaiti policeman wounded two US soldiers. He fled and was later arrested in Saudi Arabia. Kuwait is being used for practice; see Michael R. Gordon’s “G.I.’s Hone Skills on Iraq’s Border: Kuwait has given U.S. Army vast spaces for maneuvers” in The New York Times, November 20, 2002.
In Lebanon, an American missionary working as a nurse was shot dead. The crime is thought to stem from her evangelical religious beliefs and general anti-Americanism.
An armed assailant set a McDonald’s restaurant in Saudi Arabia on fire. Fueled by gasoline, it burned down but there were no injuries. Saudi Arabia is featured in a World Report in the Financial Times, November 20. http://www.ft.com/saudi2002. Saudi authorities have arrested a hundred suspected terrorists, mainly those who had returned from Afghanistan.
In the occupied West Bank, Israeli troops have continued incursions and arrests. Bethlehem has been fully re-occupied.Five Palestinians, including one wanted militant, were shot dead and 11 injured in Tulkarm. The next day, a teenager throwing stones was shot dead.The Palestinian ambush in Hebron last week was found to have been against only military and security targets not civilians as had been originally suggested.
A British aid worker was shot dead by Israeli forces as he attempted to evacuate UN forces from the area. There were also claims that the ambulance had been delayed in trying to reach him. Israeli authorities say this would have been because of the heavy gunfire, a claim disputed by UN observers.
7. South Asia
In Afghanistan lack of funding continues to hurt recovery, with widespread poverty and dismal healthcare contributing to unrest and widespread security problems. A year after the defeat of the Taliban, a review of conditions shows hope but little real progress. See James Dao, “U.S. Shifts Emphasis in Afghanistan to Security and Road Building: Search for Al Qaeda Finds Few Fighters” in The New York Times, November 12, 2002; Victoria Burnett “Kabul tries to crawl out from under the UN’s aid blanket” Financial Times November 18, 2002; Ilene Prusher “A year after Taliban, little change” in The Christian Science Monitor, November 19, 2002David Rhode “In Post-Taliban Poverty, At Least There is Hope” New York Times, November 23; Tom Zeller, “Of the People, By the Warlords” The New York Times, November 24, 2002. A new book by Bob Woodward, Bush at War, claims that the war in Afghanistan was won by CIA bribes, not by military force.
In clashes with police, four protesting students were shot dead and dozens were wounded. Attempted assassinations of President Karzai and the defense minister were thwarted. Explosives at a power generation plant were discovered and made safe. Two children were killed when they picked up unexploded bombs.
Bangladesh continues its anti-crime drive, dismissing new allegations of human rights abuses issued by the European parliament. Bangladesh is contending with a serious problem of water contaminated with arsenic. To understand the risks, see “Flawed water tests put millions at risk” by Fred Pearce and Jeff Hecht, published in New Scientist, November 16, 2002.
In the Indian state of Andhra Pradesh a railway station was bombed without injury but a landmine under a bus killed 14 and injured around 30. Maoist rebels of the Naxalite People’s War Group apologized for the attack, in which the bus had been mistaken for a police vehicle. Another bomb hidden in a scooter near a temple killed two.
India’s Jharkhand state saw eight police killed by a landmine laid by suspected Maoist rebels. In Manipur state, separatists shot dead seven police.
Authorities in the states of Karnataka and Tamil Nadu have agreed to the demands of the bandit Veerappan (to withdraw charges against a jailed Tamil activist) in order to secure the release of kidnapped former minister, Nagappa. It was disclosed in a book by the former police director that Veerappan was paid a huge ransom to secure the release of film star Rajkumar, two years ago.
In Indian-administered Kashmir gun battles at the beginning of the week killed 12 Islamic militants and an army officer. An attack on an army barracks killed six police and two militants. Twelve soldiers were killed when a bus hit a landmine.
Nepal’s Maoist rebels are said to have suffered heavy casualties, with reports that up to 50 were killed in clashes with the police.
Hafiz Mohammad Saeed, founder of Lashkar-e-Toiba, an outlawed Kashmir separatist group, was ordered freed form six months detention when the High Court in Pakistan said it was unlawful. India reacted angrily to this release. Leading physician Aamir Aziz was also freed in Pakistan after extended interrogation by American CIA an FBI agents.
Huge crowds in Pakistan attended the funeral of Aimal Khan Kansi, executed in the US for the murder of two CIA operatives.
8. Cyberterrorism and Information Warfare
Microsoft issued a warning of a critical security hole in its browsers and web servers affecting the Microsoft Data Access Components. A fix can be downloaded from the Microsoft web site.
Fox-IT. Published a survey of information technology forensics. See http://www.fox-it.com
9. Finance
Indonesia’s arrest of Imam Samudra, mastermind of the Bali bombing, was aided when they traced his use of an ATM. See Raymond Bonner, “Indonesians, Tracing A.T.M.Use, Arrest Major Suspect in Bali Bombing: The New York Times, November 22, 2002
US Congressional investigators looking into security failings suggest that links to funding by Saudi Arabia were not adequately investigated. The allegations, including a charge that the wife of the US ambassador provided funds that were used by the September 11 hijackers, have been strongly denied by Saudi Arabia.
The US Treasury has designated the Benevolence International Foundation, Benevolence International Fund (Canada), Bosanska Idealna Futura (Bosnia) and their ranches as financiers of terrorism under Executive Order 13224 and has asked these groups to be added to the UN designation as well.
The US Treasury has offered technical assistance to Pakistan to help them combat terrorist financing and money laundering. They are also investigating links between the Stolt-Nielson Transportation Group Ltd. and possible illegal-chemicals shipments to Iran.
The International Monetary Fund has approved a one year pilot to add assessments of the Financial Action Task Force anti-money laundering recommendations as part of the IMF and World Bank financial sector and offshore assessment programs.
10. Human Rights
November 25 is the International Day for the Elimination of Violence Against Women. The World Health Organization has issued a new “World Report on Violence and Health” that shows the impacts of violence against women.
Fourteen EU countries imposed a travel ban on Alexander Lukashenko, President of Belarus, to protest his human rights record, including increasing religious persecution.
The United Nations Committee Against Torture reported on evidence that the Egyptian Government allows torture of detainees, and cites abuse of military courts and numerous deaths in custody.
The UN is reviewing options to try surviving leaders of the Khmer Rouge for responsibility in the Cambodian genocide.
11. Law and Legal Issues
Leading physician Aamir Aziz was freed in Pakistan after extended interrogation by American CIA an FBI agents.
Tihomir Blaskic, convicted of war crimes in 2000, has asked for a new trial in light of new evidence.
Continuing the Saville Inquiry into Bloody Sunday (1972), Major General Pat MacLellan testified that soldiers apparently disobeyed orders by moving further into the area than commanded.
Bangladesh opposition politician Saber Hossain Chowdhury was released from prison on order of the High Court.
A US federal court has ruled that the Coalition or Clergy, Lawyers and Professors had no legal standing to represent detainees at Guantanamo Bay.
Turkish police investigating the attempted hijacking of an El Al flight found that the accused Tawfik Foqara (Tevfik Fukra) had concealed a small knife in his belt. It was his first time on a plane; he has no known associations with militant groups and is thought to have acted alone. He will be tried in Turkey.
Latif Gashi, Naim Kadriu, Nazif Mehmeti and Rrustem Mustafa (“Commander Remi”) have been indicted by the UN mission on war crimes for their treatment of Kovoco Albanians in 1998-9
Jerome Heckenhamp, indicted on computer crime charges, was granted bail but is under house arrest. He is accused of numerous computer intrusions and defacing eBay’s web site.
Elena Iparraguirre, accused senior member of Peru’s Shining Path rebels, has been granted a new civilian trial by the high court in Peru.
Nizar al-Khazraji has been accused of involvement in the chemical weapon attack against Iraqi Kurds in Halabjah. He is under house arrest in Denmark.
James Kilgore, the last remaining Symbionese Liberation Army fugitive, has agreed a plea bargain with US authorities, and his extradition is in process.
Gary McKinnon has been charged in US federal court with seven counts of computer fraud including incursions into military systems and private companies.
Akram Taufiq Muramy has been arrested in Afghanistan on charges of planning a suicide attack against government officials.
Abd al-Rahim Nashiri, accused leading al Qaeda member has been captured and is being interrogated by US authorities.
Glan Panard is the sixth British businessman arrested and accused of involvement in a series of bombings in Saudi Arabia.
Colonel Tharcisse Renzaho has pleaded not guilty before the International Ciminal Tribunal for Rwanda to genocide and murder charges.
Jack Roche was arrested in Australia on suspicion of planning to bomb Israeli diplomatic offices.
Hafiz Mohammad Saeed, founder of Lashkar-e-Toiba, an outlawed Kashmir separatist group, was ordered freed form six months detention when the High Court in Pakistan said it was unlawful. India reacted angrily to this release.
Major Santiago Martin Rivas, alleged leader of the Grupo Colina death squad responsible for massacres under former President Fujimori.
Imam Samudra, alleged mastermind of the Bali bombing, was arrested in Indonesia. Two men, Rauf and Udi, were also arrested.
Rasmi Al-Shannaq, who had roomed with two of the September 11 hijackers, has pleaded guilty to visa fraud and will be deported to Jordan.
Khaled al Shimmiri, a Kuwaiti policeman with a history of mental problems, was arrested after he fled to Saudi Arabia following his shooting attack that wounded two American soldiers.
David Tovey has been sentenced to 11 years jail for weapons charges in conjunction with planning a racially motivated terrorist campaign. His arms cache was uncovered last February.
Pravin Togadia, leader of the militant World Hindu Council, was arrested by Indian police to prevent a banned rally in Gujarat state, scene of prior violence between Hindus and Muslims.
12. Narco-terrorism
Jamacan and British authorities have agreed on joint investigations to combat drug smuggling using “mules” – people who swallow bags of cocaine – by using swabs to detect traces of cocaine before they board a flight.
13. Transportation
The International Maritime Organization has continued a limitation on the liability of shipping disasters. They believe that requested changes to increase passenger payouts would be unsustainable.
Although details were not provided, the US Transportation Security Agency has said its staff will use common sense to ease congestion at US airports at the start of the busy holiday season. 47,000 federal flight screeners have begun work at 424 airports around the US. See Abraham McLaughlin’s description “Behind X-ray machines, a more expert crew” in The Christian Science Monitor, November 20, 2002. The effectiveness of the new federalized staff could be threatened by logistical problems that have caused hundreds to go unpaid.
In the biggest investigation and crackdown to date, 127 airport workers at La Guardia and Kennedy airports in New York were arrested and charged with falsifying their identities, including false or stolen social security numbers and criminal backgrounds.
14. Weapons of Mass Destruction
For a good discussion of the technology behind weapons inspectins, see Debora Mackenzie’s article “Anything to declare?” in New Scientist, November 16, 2002
The US National Nuclear Security Administration has ordered a hiring freeze.
Questions over the security of the Plum Island Animal Disease Lab were raised again when it was found that a strike replacement worker with a criminal record had made it past the strict background checks. He took his laptop and its data with him for three days after his dismissal.
Nizar al-Khazraji has been accused of involvement in the chemical weapon attack against Iraqi Kurds in Halabjah. He is under house arrest in Denmark. More than 5,000 were killed in the attack. For a reminder of the impact of this atack, see Scott Peterson’s article “Lessons from Iran on facing chemical war” in The Christian Science Monitor November 19, 2002
For an inside look at the continuing effort to reveal the truth behind biological weapons used in World War II read Joseph Kahn’s article “Shouting the Pain From Japan’s Germ Attacks” in The New York Times, November 23, 2002.
And for an interesting article on US health system preparedness, see Katherine Eban’s article “Waiting for Bioterror” in The Nation, December 9, 2002
FEATURE ARTICLE: Identity Theft
Identity theft is the number one source of consumer complaints to the Federal Trade Commission (42 percent). The number of cases of identity theft nearly tripled between 2000 and 2001.
FTC suggests that identity theft is the most popular consumer fraud because it is so profitable. Last year, identity thieves reaped nearly $100 million from financial institutions. That’s $6,767 per victim. In addition, it costs a victim of identity theft more than $1,000 (and over a hundred hours) to repair the damage.
Identity theft is also popular in organized crime where the organizations undertake massive frauds, launder money, and help to finance terrorism. In fact, using multiple identities is one of the tools of the trade for terrorism.
Stealing identity is easy. It doesn’t take violence or theft. Instead, identity thieves rely on the ignorance, naivete or trust of every day people. (These are also techniques described as “social engineering”, as discussed in the TerrorismCentral Newsletter of November 17, 2002.)
For example, a thief standing in a public place can find out your passwords or Personal Identification Numbers (PINs) by listening to you on a phone call while making a reservation with a hotel or car rental company. Or they can look over your shoulder at an ATM or your computer terminal to watch you enter the numbers. This practice is called “shoulder surfing”
Another common technique is to go through garbage cans and dumpsters. Criminals can get copies of checks, credit card and bank statements, and other records that give your name, address, phone number and sometimes other identifying information.
If you have thrown away a pre-approved credit application, that’s also useful for a criminal. They have been able to retrieve the information and activate accounts without your knowledge. Some credit card companies have started to counter this by requiring activation from a home telephone number or using other 2-tier security checks, but this doesn’t always happen.
It’s even easier if your mail is delivered to a public location, where someone can intercept and redirect it.
All of these records so rich in personal data make it easy for criminals to take on your identity and use it to get control of accounts in your name.
This practice of dumpster diving is not limited to criminals. After the September 11 hijackings, FBI investigators were able to uncover ATM records thrown away at the hotel where some of the hijackers had stayed. Ultimately, this led to the first connection to al Qaeda when the FBI was able to trace a funds transfer back.
Mail fraud had reached new heights with the advent of widespread email. Many people respond to unsolicited email offers – spam – that offer them benefits: lotteries, discounts, and so on. These mails provide an opportunity to obtain large amounts of personal information and in some cases can even encourage a person to download a trojan horse or virus.
Once they have your information, a criminal can use it to commit a wide variety of criminal activities. For example:
* False credit applications for bank loans and credit cards
* Fraudulent use of telephone calling cards
* Obtaining access to goods or services they are not otherwise entitled to, including auction fraud, other benefit cards, and the use of bank account transfers that don’t show up until after reports (balances, credit reports) begin to emerge
These are not hypothetical situations. Here are two quick examples of real cases of financial services fraud using identity theft. Make sure to take note of the way electronic funds transfers, use of multiple institutions, social engineering and the lack of assertive validation of identity all supported these frauds.
“April 13, 2001. Jerome Keith Vassar, age 33,
JEROME KEITH VASSAR, age 33, of Seattle, Washington
Pled guilty in April, 2001 to two counts of Bank Fraud and one count of Identity Theft. The court records shows that he and his associates executed a scheme to defraud the Bank of America and Washington Mutual Bank by withdrawing cash and wire transferring money from the savings account of a victim of identity theft, as follows:
“VASSAR and an accomplice utilized the name, date of birth, social security number, and savings account of the victim, a Seattle resident, without the victim’s knowledge or consent. The victim has never met VASSAR or his accomplice.
Unbeknownst to the victim, one of VASSAR’S accomplices had obtained an actual Washington Driver’s License bearing the name and the date of birth of the victim, but reflecting the accomplice’s picture on the face of the license.
As part of this scheme, VASSAR opened an account at E-Trade Bank, in Virginia, in the name of the victim. VASSAR then fraudulently caused the Seattle bank to wire transfer $15,000 from the victim’s savings account to E-Trade Bank as a deposit into the newly opened account.
Unbeknownst to the victim, VASSAR opened another account at JANUS investment company in Colorado in the victim’s name. VASSAR or his accomplice deposited a counterfeit check into the JANUS account. The counterfeit check – in the amount of $99,979.35 – was created using the name and actual account number of United Way of King County. United Way did not authorize the creation or use
of this check.
VASSAR later caused JANUS to issue two checks from the account. JANUS innocently issued both checks not knowing that the $99,979 in proceeds – on which the checks were being drawn – consisted of non-existent funds.
The first check was made payable in the name of the victim in the amount of $49,990.00. JANUS mailed this check to an address associated with VASSAR. A few days later, VASSAR and his accomplice entered a MoneyMart Store in Seattle and cashed the check. Unbeknownst to the victim, VASSAR’S accomplice presented the check to the cashier and gave the victim’s name as his true name. The accomplice produced the Washington State Driver’s License, bearing the victim’s name and license number, and reflecting the victim’s actual date of birth. VASSAR told the cashier that he was the victim’s “Uncle.”
The second check – issued by JANUS – was made payable in the name of the victim in the amount of $40,000. Thereafter, VASSAR caused the deposit of this check into a Bank of America savings account opened three days earlier by VASSAR and a juvenile male. The savings account was opened in the name of the juvenile and in the victim’s name, even though the victim had no knowledge of this account. VASSAR then caused the minor to withdraw cash from the account in the amount of approximately $33,000: $7,000 was taken in cash and the remainder was taken in two cashier’s checks issued to VASSAR or on his behalf.
The total amount of loss, and attempted loss, caused by VASSAR and his accomplice is an amount between $70,000 and $200,000.”
July 10, 2000 MILENKA A. TOMASZEWSKI, 21, a California resident, entered guilty pleas to three felony counts of identity theft, using an unauthorized credit card, and conspiracy to commit wire fraud involving attempted losses in excess of $1,000,000.
According to court documents, she and “other conspirators assumed the identities of third persons without their consent and authorization, and fraudulently utilized the Social Security Account Numbers and names of actual persons. In addition, the conspirators created false identity documents such as state identification cards, driver's licenses, and immigration cards. Using the identities and names of third persons, the conspirators obtained credit cards and they opened banking and investment accounts at numerous locations.
The conspirators also prepared fraudulent and counterfeit checks using the account names and numbers for actual bank accounts. TOMASZEWSKI and the other conspirators then would deposit the counterfeit checks into accounts opened by them, using one of their assumed identities. Shortly thereafter, the conspirators would withdraw, and attempt to withdraw, the funds fraudulently credited to their accounts at the time they deposited the counterfeit checks. The conspirators used these fraudulently-obtained funds for their personal use and benefit.
Over an eight month period, TOMASZEWSKI and the other conspirators presented and deposited at least twelve (12) counterfeit checks -- valued in excess of $1,000,000 -- to various banks and investment companies in western Washington, including Washington Mutual Bank, Bank of America, Paine Webber Incorporated, Merrill Lynch & Co., NETVEST Securities, and NetBank.
As part of their scheme to defraud, TOMASZEWSKI and the other conspirators also purchased legitimate cashiers checks – in nominal amounts -- and then altered the checks to reflect dollar amounts substantially greater than the amounts for which they had purchased the cashiers checks.
Over a five-month period, TOMASZEWSKI and the other conspirators presented or deposited at least five altered checks, worth almost $350,000, to Salomon Smith & Barney, and Key Bank in the Seattle area.
Specifically, on March 8, 2000, TOMASZEWSKI telefaxed a "Letter of Authorization," using one of her assumed identities, to PaineWebber Incorporated, authorizing a wire transfer of funds in the amount of $25,000 to be sent from TOMASZEWSKI'S account – which she had opened under an assumed name -- to one of her coconspirator's accounts held at banks in the United States and in Spain.
TOMASZEWSKI also pleaded guilty to the fraudulent use of another person's identity. TOMASZEWSKI admitted that, without lawful authority, she used a Massachusetts Driver's License bearing the name of "Sharon D. Harcourt," an actual person not associated with these criminal activities, for the purpose of opening a mail box drop in Seattle. TOMASZEWSKI admitted that she used Harcourt's identity in order to open the mail box drop to further her criminal activities.
Finally, TOMASZEWSKI admitted that she aided and abetted another conspirator in the fraudulent and unauthorized use of a MasterCard credit card -- issued under the name of "Henry Olvera," another victim not associated with these activities -- in order to obtain auto parts for a Porsche 911 Carerra valued in excess of $1,000. “
These two examples are about people who have been caught. To help you avoid becoming a victim of identity theft, please take a look at the information provided by the Federal Trade Commission (http://www.ftc.gov). If you’d like a copy of their document on preventing identity theft and resolving it if you are a victim, please send email to and we’ll forward you an email of their PDF file.
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