Citigroup Security and
Investigative Services
Loan Application Fraud
Robert Stanton
Sr Investigator
410-332-7745
• Citi Investigative and Security Services (CSIS) – North
America/LATAM/Mexico/Asia Pacific (APAC)
•Eastern Europe Middle (EMEA) and Central Eastern Europe,
Middle East and Africa (CEMEA)
• Investigations and physical security
• Corporate Investigators cover Citi entities globally
• CitiFinancial, Citibank, Citi Mortgage, Citi Auto, Primerica, Citi
Cards, CitiFinancial Retail Sales, etc.
• External and Internal Fraud and policy violations
• Forensic capabilities – ECrimes – Electromagnetic and
Digital Media – Digital Forensic Examinations
•CSIS Units and Subsidiaries –
•AML – Anti Money Laundering
•Due Diligence Unit
•FICA – Financial Crimes Analysis Support
•Fraud Management Program – Zero Tolerance to fraud
•Employee Pre-screening
Fraudulent Loan Applications
• Know your customer.
• Reviewing loan applications isn’t “Rocket Surgery” ?
• Look for the obvious – behavior (rushing/anxious
time of sale (store closing/peak season/sales event)
• Perform your due diligence/“Do your homework”.
• Verify information independently when possible, two
Forms of photo ID.
• Look for consistency.
• Insure employees are familiar with identification used
(driver’s licenses) during loan closings.
• Obtain CURRENT month ORIGINALS of utility bill, bank
Statement, credit card statement in the applicant’s
name.
• Identify abnormalities, poor quality, out of focus finish,
No holograms, state seals, etc.
• Recent issue dates, expiration dates don’t match dob.
• Cropped photo, no overlapping codes, seals, etc.
• Do the numbers make sense?
• Pay stub reflects bi-weekly pay period?
• Indicates 336 total hours worked during that time period.
• There are only 336 total hours in a two week period?
• Taxes, Social Security, fonts, cut and paste, etc.
• Female applicant using the same name with multiple ID’s,
with various photo’s at different branches located in the
same general metropolitan /geographic area.
• Branches failed to note recent multiple credit bureau inquires or new
accounts on the credit bureau reporting.
• Fraud Alerts/Warnings/SSN issued in the last five years.
• Red Flag - Victim has excellent credit and qualifies for
Maximum level loan (Premier).
• Red Flag - Applicant purchases “ALL” of the available
insurance packages offered by the lender – quick to agree to
extended warranty or not concerned with the price.
ORGANIZED FRAUD RINGS
• Ring targeted CitiFinancial branches in GA, FL, NC,
CA, IN and LA.
• Suspects recruited from homeless shelters in CA.
•Suspects would register at local hotels/motels and
await FedEx package that would contain ID and
other necessary materials (paystub/SSN card/DL/etc).
• Premier Loans (15K) Insurance products/single
Loan Proceeds Checks.
• Two suspects almost every time – applicant and driver
(lookout) waiting in parking.
• Cell phone communications back and forth – warning
on the arrival of law enforcement.
• Buffer maintained between operators and organizers.
• Suspects would cash checks at local check cashing
stores.
What is more valuable than your own good name?
Identity Theft is the fastest growing whitecollar crime in the country.
• It is estimated that 5-10 million Americans are touched by the effects of Identity
Theft a year.
• Experts estimate that it takes customers approximately 600 hours and $1,495 in
possible direct losses to restore one’s good name and credit.
Personal Data Theft: It's Outrageous
It's long past the time to hold companies that collect personal info to higher legal standards when it
comes to protecting that data Americans seem to be concerned, but not outraged, by news in recent
weeks that two big data collectors sold detailed personal information on nearly 500,000 people to
buyers who had absolutely no business getting it. (BusinessWeek--APRIL 15, 2005)
LexisNexis, a worldwide leader in global legal and business data, said it discovered
in the past 10 days that thieves had stolen data, including names, addresses, Social
Security and drivers' license numbers, on up to 145,00 U.S. consumers
ChoicePoint data loss may be higher reported, In its regulatory 8-K document,
filed on March 4, ChoicePoint said that it had restricted its search to a 15-month
period, during which records on 145,000 consumers were purchased by 50
fraudulent companies. Now the figure is over 300,000.
Interception
Where does the fraudster get the information?
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Dumpster Diving
Public Record Information
Skimming
Phishing/Hacking
Theft of information from a workplace
Purchased information
Social engineering
Mail theft/Phony postal change of address
Theft of wallets containing personal information
Dumpster Diving
•One outside camera on dumpster
location
ID Take Over
“IT can happen to anyone”
Suspect targeted
ELDRICK “TIGER” WOODS
in a credit scheme
USE
Once the information is obtained, how can it be put to use?
“Show me the money!”
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Credit/Debit/ATM/Gift Cards
Consumer Loans
Fraudulent Applications
Wire transfers
Stolen or false Driver’s License
Full identity take-over
Utilities/Cell Phones
How Can I Tell if I’m a Victim of Identity Theft?
•Monitor the balances of your financial accounts.
•Look for unexplained charges or withdrawals.
Other indications of identity theft can be:
•Failing to receive bills or other mail signaling an address change by the
identity thief.
•Receiving credit cards for which you did not apply.
•Receiving calls from debt collectors or companies about merchandise or
services you did not buy.
•Denial of credit for no apparent reason.
What can you do to avoid becoming a
victim?
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Don’t Carry Social Security Card, passports or birth certificates
Use a blue Postal mailbox for outgoing mail
Limit your Credit Cards
Do not give account number over the phone
Shred all credit card receipts
Order a credit report at least once per year
Remove Social Security number from your DL or checks
Cancel unused cards
Call your credit card company if you did not receive a new one
Credit Bureau Contact Numbers
Equifax
Experian
Trans Union
1-800-685-1111
1-800-682-7654
1-800-916-8800