FRAUD EXAM REVIEW Flashcards
What is Civil Administrative Forfeiture?
Without going to court
No Real Property
Applies to all Cash and Monetary Instruments
CAFRA applies
Personal property < $500,000 each item of property
What is Civil Judicial Forfeiture?
Decided by Federal Judge CAFRA applies CAFRA allows for forfeiture of FUNGIBLE property Real Property Personal property >$500, 000 Contested Forfeiture
What is 49 USC 80302?
PROHIBITIS use of Aircraft, Vehicles, Vessels to transport carry conceal possess, used to facilitate contraband.
Can you seize a vehicle under 49 USC 80302 if carrying hundreds of CFT CREDIT CARDS?
NO, not included in the definition of contraband under the statute
What are the VISA security features?
Dove Hologram
All VISA account numbers start with 4
The BIN must match the first four digits of the account #
VISA brand mark in lower right corner
VISA debit card has “debit” printed above VISA brand mark
Full or partial acct # is indent-printed on the tamper evident signature panel
The 3 digit CVV is in the right corner of signature panel
Some cards have a holographic magnetic strip featuring doves
What is the FMS 1133R or 5-89?
Release of Claim form when the payee remembers they received and/or cashed the check
18 USC 1028
Fraud in connection with ID documents
18 USC 1028A
Aggravated fraud in connection with ID docs. Not a stand alone crime, mandatory minimum 2 years, consecutive
18 USC 1029
Access Device Fraud
18 USC 1030
Computer fraud
Is a “Walmart” computer a protected computer?
FALSE
Does USSS require that Miranda be read from the card?
No, it suggests it should be
CVV, Card Verification Value
VISA
CVC, Card Verification Code
MasterCard
CID, Card Identification Number
Discover or AmEx
BIN
Bank Identification Number, usually the first four digits of the account number
What is Regulation CC?
Regulated when deposits are available to consumers, minimum of 2 days for check to clear
Who does record checks, link analysis, etc.?
CRS, Criminal Research Specialist
When can you use a seized vehicle?
Only after it is forfeited
Which card is a travel & entertainment card?
AmEx
Which card starts with 3?
AmEx
Which card starts with 4?
VISA
Which card starts with 5?
MasterCard
Which card starts with 6?
Discover
What is the threshold for someone to be charged with 18 USC 1029(a)(2), stolen credit card?
$1000 within one year
What is the threshold for someone to be charged with 1029(a)(3), possession of unauthorized/counterfeit access devices?
15 or more counterfeit and/or unauthorized access devices on one occasion
What is a SAR?
Suspicious Activity Report (cannot be disclosed)
It is sent to FinCEN
What is a CTR? What is the dollar amount a CTR has to be filed on?
Currency Transaction Report
$10,000 or more
Examples of nontraditional financial institutions
Western Union Casinos car dealerships brokerages check cashers
What is Regulation E?
Electronic Funds Transfer Act
What does Regulation E establish?
basic rights, liabilities and responsibilities of consumers and financial institution
What does Regulation E require merchants to have on receipts?
Amount, Date, Type, Terminal location, At least 4 digits of the account number
What is the primary objective of Regulation E?
the protection of individual consumers engaging in electronic funds transfers
Does Regulation E cover store value cards?
NO
Types of credit card scams
check kiting bust out advance fee fraud telemarketing fraud crime bank fraud check fraud cc fraud mortgage fraud money laundering
If a financial institution document is photocopied is it counterfeit or fictitious?
counterfeit
What’s the difference between a counterfeit and fictitious document?
counterfeit is an altered genuine document
fictitious is a completely made up document
How are travelers checks used to commit fraud?
Buy something small and get large amounts of change back
Who are the major players in mortgage fraud?
Appraiser Mortgage broker Lender Investor/recruiter Realtor Title company Borrower Straw purchaser Seller
What’s the best way to identify a counterfeit credit card?
compare it to a genuine
What value do you list on a 1544 for a credit card?
No value
What’s the potential value for a credit card?
Either the credit limit or $500 if the credit limit is unknown
What are the timelines for reporting on a T-check claim?
60 days for a regular claim
30 days for a congressional referral
What does IOD stand for?
Investigation Other District
What’s a spurious check?
A genuine T-check issued to a fictitious payee
What designation does a Spurious check case get?
“S” for Special
What charge is used if a spurious check is negotiated?
18 USC 495
T-check security features
Bleeding Ink on the US Treasury seal Microprinting on endorsement line (USAUSA) Watermark Ultraviolet overprinting Signature block
What are the first 2 things you tell a person to do when their account is compromised?
Close the account
Get a credit report
What is a closed card?
A traditional “gift card” that can typically only be used at a specific merchant i.e. Target, Walmart, etc…
What is a semi-closed card?
Cards issued by a third party permitted to be used by multiple merchants in a given area i.e. Arundel Mills Mall gift card
What is FMS and CRD?
Financial Management Service
Check Claims Group
Who maintains US Government’s financial integrity by adjudication and settlement of claims?
CRD, Check Claims Group
Who provides financial information for all inquiries related to all T-check claims?
CRD, Check Claims Group
Who processes requests for copies or digital images of T-checks for the USSS and other agencies?
CRD, Check Claims Group
