More on Identity Theft

In the June 2001 Issue of the SAR Activity Review, Identity Theft was selected as the Highlighted Trend based on the financial industry's perception of increases in both the incidence of identity theft-based fraud and increased SAR reporting. Identity theft and related fraudulent activities have been reported by financial institutions since SAR reporting began in 1996. Results of FinCEN's analysis of SAR data confirmed that there had been an increase in the incidence of identity theft and increased SAR reporting. Details of the SAR narratives describing examples of identity theft were provided in the June 2001 SAR Activity Review.

Since December 1, 2000, financial institutions have filed 352 SARs relating to identity theft. That amounts to a 50 percent increase from the same period a year ago. The number of SARs filed each year relating to identity theft is shown in the table below:
* Partial year- April 1, 1996 - December 31, 1996
** Partial year- January 1, 2001 - April 30, 2001

There have been a total of 236 financial institutions that reported incidents of identity theft since the beginning of SAR reporting requirements. However, 42 financial institutions that had not previously reported instances of identity theft reported such activity since January 1, 2001. Identity theft was reported by financial institutions located in 43 states and the District of Columbia. Financial institutions in California and North Carolina each account for about 15 percent of the number of SARs filed describing identity theft or related frauds. Since December 1, 2000, financial institutions referred 81 SARs to law enforcement.

Because the rate of identity theft incidents continues to increase, the following information is provided to assist in reporting identity theft:

The Federal Trade Commission has developed a pamphlet to assist consumers in avoiding identity theft and, in instances of abuse, to give steps to take in addressing stolen identities. The pamphlet can be obtained from the FTC's website at www.consumer.gov/identitytheft. Another resource on identity theft can be found at www.consumer.gov/knowfraud. In addition, federal bank supervisors recently released guidance to banking organizations on identity theft and pretext calling. The guidance can be found on their respective websites:

• Federal Deposit Insurance Corporation at www.fdic.gov,
• Federal Reserve Board at www.federalreserve.gov,
• National Credit Union Association at www.ncua.gov,
• Office of the Comptroller of the Currency at www.occ.treas.gov, and
• Office of Thrift Supervision at www.ots.treas.gov.

Financial institutions should refer to Section 5 of this issue of the SAR Activity Review for guidance related to identity theft and pretext calling.



Excerpted from SAR Activity Review Issue 3, page 24