Citigroup Security and Investigative Services Loan Application Fraud

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 • Citi. Financial, Citibank, Citi Mortgage, Citi Auto, Primerica, Citi Cards, Citi. Financial 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 Citi. Financial 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 Fed. Ex package that would contain ID and other necessary materials (paystub/SSN card/DL/etc). • Premier Loans (15 K) 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.

Interception Where does the fraudster get the information? • • • 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

USE Once the information is obtained, how can it be put to use? “Show me the money!” • • 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? • • • 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