Chart 1, shown below, was created to try to persuade the FBI to take the case due to the overwhelming interstate nature of the case, the complexity, and the continuation of the fraud attempts as the victims fought the fraud daily, not unlike “Whack-A-Mole.” Even with the victim being a decorated WWII veteran pilot, the one time he called for help from his country, they turned him away, saying, “We can’t work the case unless the loss exceeds $1 million.” The family was left to fight banks, credit card companies and lenders opening accounts using the victim’s name and personal identifiers at a record pace while the perpetrators continued their fraud unabated. Attempts to report the fraud accounts to financial institutions, which were opened in mere minutes, often took days and multiple phone calls. In one instance, a bank refused to take a fraud report until they could identify the victim through a driver’s license and video face identification of the victim. When the verification camera link did not function properly, the bank asked the now 99-year-old to go outside and have his daughter film him via the fraud reporting portal. Only after their facial recognition system confirmed his photo was the same as the driver’s license the victim supplied would the bank take a fraud report. This process took more than three hours to complete. The crooks had opened the account in mere minutes. At a local bank, the drive-through teller became suspicious of a check being presented as if written by their 98-year-old customer. The payee claimed it was for “painting a house.” They called the customer and spoke to the daughter (who had been added to the account). Neither she nor her father knew anything about the check or the payee. The bank called the police, but the perpetrators took off before they arrived. A seven-month odyssey of fraud then ensued, highlighting many of the macro issues facing banks challenged by the marketplace to make opening accounts and transacting business online faster and faster, with less and less friction. And a criminal justice system that is not equipped or inclined to help. Chart 1 — Reflects Change of Addresses at BMV’s, Postal Service, Checking Acct Fraud Accounts, Forged Checks, Credit Unions. Chart provided by Jim Rechel, President, The Rechel Group Inc. Ultimately, a dedicated lieutenant in a local police department worked with the family, and a U.S. postal inspector I knew worked with me to identify the perpetrators. After two years of continuing fraud, eight people were later identified and were prosecuted in state courts. They received six-to-eight-year sentences. One of the main participants has a criminal record, including drug dealing and homicide, and he knew how to stay in the background. Fortunately, he was convicted in other courts of criminal activity unrelated to this ring and is in prison for an extended period. WWII VETERAN CHECK/ID THEFT FRAUD FLOWCHART 22 West Virginia Banker
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