Statement of Paul Rispoli, Sergeant, Palm Beach County Sheriff’s Office,
Financial Crimes Unit, West Palm Beach, Florida

Testimony Before the Subcommittee on Social Security
of the House Committee on Ways and Means

Field Hearing in Lake Worth, Florida, on Protecting of the Privacy of Social Security Numbers and Preventing Identity Theft

April 29, 2002

Good Afternoon, Mr. Chairman and members of the Subcommittee.  On behalf of Sheriff Ed Bieluch, we would like to thank you for the opportunity to appear before you today to discuss this very important subject. 

My name is Sgt Paul Rispoli. I am currently in charge of the Palm Beach County Sheriff’s Office Financial Crimes Unit   Seated next to me is the Sheriff of Palm Beach County Ed Bieluch, Captain Simon Barnes and Detectives Pete Palenzuela and Alice Gold.

We are currently assigned to the Financial Crimes Unit.  Detectives in the Financial Crimes Unit are responsible for the investigation of white-collar crimes, specifically responsible for investigating exploitation of the elderly, corporate embezzlement, identity theft, credit card fraud, counterfeiting and computer Internet fraud. 

This six-person unit shares a combined 100 years experience in law enforcement.   During this time, we have been assigned to road patrol, different units within the detective bureau itself and money laundering.

Of all the crimes I have investigated, identity theft cases are the most difficult.

• Difficult in identifying the suspect(s),
• Difficult to get financial institutions to cooperate,
• Difficult to prosecute, and
• Difficult to have the guilty parties receive sentences that would deter committing identity theft.

Over the past five years, there has been a significant increase in crimes where criminals compromise personal identification data of victims, in order to commit identity theft.  The information falling into criminal hands includes:

• Name,
• Date of birth,
• Social Security Number,
• Banking account number, and other personal and financial information.

Victims of identity theft, like other crimes, are made to feel personally responsible.  This is especially true in light of the vicious cycle of events following the circumstances of this crime.  Imagine for a moment, you go to a car dealer to buy a new car, only to be denied because of a negative payment history reflected in a credit report—information that you knew nothing about.  The trauma this type of fraud causes its innocent victims is inconceivable, as victims are usually left to fix the problem. 

I will explain some of the difficult areas involved with investigating Identity Theft –

Identifying the suspect:

Technology has improved a thief’s chances of getting away with crime. A thief doesn’t need a gun or a mask to commit crimes. Today’s gun is a keyboard and the mask is a computer with Internet access. You can apply for loans, credit cards, and bank accounts online. You can purchase items with the click of a button and have them shipped all over the world. The thief is never seen. The credit cards and merchandise is delivered to an empty apartment in the thief’s building or neighborhood or a post office box under the victim’s name.

Most Financial institutions/Credit Card companies fail to check or question why the applicant’s address is different than the address listed in the credit report.

Most of our complaints come from victims, who are local and the thief is in another county, state, or country.

Florida has a statute dealing with this crime. The statute allows venue for the prosecution and trial of violations to be commenced and maintained in any county in which an element of the offense occurred, including the county where the victim generally resides.

The local law enforcement agency where the victim resides does not normally have the ability and resources to investigate the offense when it occurs in another county or state.

 Financial institutions and Credit Card Companies cooperation:

Most financial institutions/credit card companies are reluctant to cooperate during an investigation because it can generate negative publicity.  The loss amount on one case is usually not enough to begin an investigation.

It costs more to investigate the case than to write off the loss.

Prosecution and Sentencing:

Even when a thief is identified and there is probable cause for an arrest some prosecutors tend to plea a case out prior to trial. This plea agreement is usually probation and restitution. When criminals have been found guilty in court they rarely see any real jail time. Most are sentenced to probation and restitution anyway, so there is no deterrence to committing this crime.

Financial (white collar) Crime has always been viewed as a lesser threat than a burglary or a robbery.

Common consensus is  “No one is hurt”.

 Ask a victim of identity theft if they feel any less violated.

Victims have been refused employment, loans, and some victims have actually been arrested for crimes the identity thief has committed.

Victim’s lives have been destroyed by this crime.

In light of the events of September 11, 2001, one should be aware that identity theft in Florida played an important role in the terrorist being able to carry out their objectives.

Identity Theft does hurt people in many ways.

Some Recommendations suggested by the Palm Beach County Sheriff’s Office Financial Crimes Unit:

• Increase Public education about Identity Theft.
• Increase Law Enforcement education and interagency cooperation. Victims should not be turned away - a report must be taken.
• The current Identity Theft statute needs to be updated with enhanced penalties for this crime. This will make the crime less attractive for a thief.
• Credit card companies and Financial Institutions should be held responsible for indiscriminate issuing of credit to unauthorized persons. (Mass mailing pre-approved credit cards to the public)
• Credit Bureaus must take a more active role in ensuring security of ones credit. This may include notifying a person that their credit has been checked.
• Require any web-based company or company taking credit applications over the Internet to maintain detailed records of their transactions.
• Posting of Social Security Numbers on the Internet should be prohibited.
• Entities having access to a consumer’s personal identifying information should be strictly accountable as to whom they provide such information to and the purpose the information is being provided for.
• We believe if there were an enhancement in the penalties for identity theft, the criminal element would less likely attempt to commit this crime.   

In closing, we would like to thank Congressman Shaw for giving Law Enforcement an opportunity to offer input in this matter.  Additionally we would ask this committee to consider the massive impact identity theft has had on our society.