Identity Theft - How Did They Get My Credit Card Number? Bobby Noy Soulinthong Sentenced to Prison for “Skimming”

Almost a year ago I was at the annual convention for members of the National Speakers Association. As a professional speaker, I attempt to make that each year. This year held something special for me - something unexpected. Upon return home to Dallas, Texas I found that I had become a victim of identity theft.

How? How could it be that my debit card was being used in San Francisco to make purchases at a wig shop. I’ll admit that while my hair is receding, I don’t need a wig. Fortunately, I was able to stop the process before it got out of hand. But the question still remained - HOW?

I later found out I was a victim of “skimming”. So what’s that you might ask?

Well, a Texas, man, Bobby Noy Soulinthong, 26, who pled guilty to his role in a credit card “skimming” scheme, was sentenced to 18 months in prison. Other defendants, charged in separate indictments but involved in the same scheme, have also pled guilty and have been sentenced. Dung Ba Nguyen, 28, of North Richland Hills, Texas, and Bryan Nanthathongthip, 24, of Dallas, were each sentenced earlier this year to 12 months in prison. All three defendants were ordered to pay restitution.

Nguyen admitted purchasing stolen credit card account information that had been “skimmed” from restaurant customers, and admitted having more than 100 credit card account numbers stored on his personal “thumb drive.” Soulinthong and Nanthathongthip admitted purchasing goods from GameStop and Target with counterfeit debit cards, which they knew had been electronically encoded with a stolen account number.

The account numbers were stolen by a method known as “skimming.” Individuals working at North Texas restaurants surreptitiously recorded account numbers and other account information from the magnetic strips on restaurant customers’ credit and debit cards with a small hand-held device known as a “skimmer.” After purchasing the stolen account information, Nguyen encoded it onto other credit cards. Soulinthong and Nanthathongthip used the re-encoded cards to purchase consumer goods that they could then re-sell. The restaurant customers whose credit card information had been stolen would receive the bills for those purchases.

According to credit.com - Skimming – Thieves use tiny hand-held credit card readers to collect the information on your credit card’s magnetic strip. Skimming is common in restaurants and stores where you turn over your credit card to pay. When a skimming device is full of hundreds of credit card numbers, these numbers can be sold or used to create fake credit cards. Skimming devices can also be placed over the normal card reader on an ATM to steal your data when you try to withdraw money.

As a white collar crime speaker, often I am asked questions about how to protect yourself against identity theft. Many of the methods used can be avoided, but “skimming” is tough to avoid. When you go to the restaurant, you give your card to pay your bill and, hence, are relying on the honesty of the restaurants employees. Should one of them have been Soulinthong you may have been a victim of identity theft.

If you’ve been a victim of identity theft and have any comments or helpful hints to avoid this dreaded form of white collar crime - FEEL FREE TO COMMENT.

White Collar Crime Speaker - Chuck Gallagher - signing off…

Car Repair and Identity Theft - Charles E. Perry, Jr. Pleads Guilty! Just When You Thought It Was Safe To Get Your Car Fixed…

As host of Wise Choices - The Great Advice Radio Show on CBS Radio - KRLD, I had a guest on the program talking about identity theft. Certainly, that’s a hot topic - especially when the methods of stealing and using identities has changed in the past ten years. Often, however, we don’t think of the obvious when it comes to how and where our ID’s can be stolen.

Christopher Bianez - member of the crime prevention unit of the Plano, Texas police department was my guest on the show and he outlined three things that help when thinking of identity theft: Deter, Detect and Defend.

In the case of Charles E. Perry, Jr. it would have been hard to use Christopher’s first suggestion as Perry used the trust people placed in him for the simple task of auto repair to steal their identities. Other than paying with cash (which few people do these days and I don’t blame them), when Perry’s customers paid - with their credit cards - Perry took advantage of the opportunity.

According to the US Attorney’s news release: Perry used his auto repair businesses, previously located in Norfolk, Hampton, and Virginia Beach, to conduct assorted, fraudulent criminal activities in violation of federal law. Perry regularly stole the identities and credit card numbers of customers seeking vehicle repairs. He then used this data in various ways. For example, Perry applied for credit card merchant accounts and business cash advances in customers’ names. Perry also used customers’ identities to open dealer accounts with vendors and then ordered parts and supplies for which he never paid. Perry also fraudulently charged customers’ credit card accounts for repairs that were either improperly or never performed. The known losses are estimated at more than $500,000.

According to the dailypress.com - Perry used several business names, including Dog & Pony Automotive Inc., T & S Transmissions Inc., T & C Automotive Inc., Hampton Tune LLC, Hampton Tune Inc., Hampton Tune and Lube Inc., Hampton & Tune Inc., Cornerstone Mechanical, Corner Stone Mechanical Inc., Seven Cities Automotive Inc., J & P Cycle Repair, J & P Automotive & Cycles, Python Custom Cycles, S & P Transmissions, Tidewater Automotive Center, ATL Motor Mate and JLP Enterprises, according to court records.

Perry faces a maximum sentence of 20 years in prison and a fine of $1,000,000 on the wire fraud charge, and a mandatory, consecutive sentence of two years in prison on the aggravated identity theft charge.

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is - no one escapes the consequences of their choices. While Perry may have enjoyed the money for a time and avoided the consequences - he did not avoid the consequences all together. Prison is no fun and Perry is facing several years plus substantial restitution for his conviction. Likely he will serve time and that will prove to be a dramatic change from his prior activities. You do reap what you sow.

If anyone reading has any background on Perry - feel free to comment as I study the behaviors and backgrounds of those convicted of white collar crime. Likewise, if you were a victim…please share your experience so other may benefit.

White Collar Crime Speaker - Chuck Gallagher - signing off…

Former FEMA Employee - Robert G. Davis - GUILTY of Identity Theft!

Every choice has a consequence! In this case, stolen identities of over 200 people will likely get Robert G. Davis, age 44, a stint in federal prison.

Davis plead guilty to stealing personal identification information of over 200 persons, fraudulently opening over $150,000 in credit accounts with various retailers in the names of the victims, and ordering merchandise for himself on these accounts.

According to the US Attorney’s office,between December 2003 and November 2007, Davis stole the identities of over 200 people (“ID Theft Victims”) while working as a clerk at various mortgage companies operating in the District of Columbia area and as a FEMA Human Services Specialist who worked with the victims of natural disasters. Davis stole the identities of the ID Theft Victims without the knowledge of his employers by copying their personal information from loan applications the ID Theft Victims had submitted to FEMA or the mortgage companies. Approximately 30 of the 200 ID Theft Victims had their identities stolen from FEMA, an agency of the Department of Homeland Security after they had submitted their personal information as part of their applications for disaster relief.

After obtaining the ID Theft Victims’ personal information, Davis called various retailers impersonating the ID Theft Victims and fraudulently opened credit accounts in their names. Davis used the identities of at least 74 ID Theft Victims to open accounts with The Home Shopping Network, Ginny’s Inc., Shop NBC, QVC, Inc. (collectively, “Retailers”), and he fraudulently obtained credit with these Retailers in excess of $156,257. Impersonating the ID Theft Victims, Davis fraudulently ordered dozens of items that were delivered to his home, or other addresses near his home. The items ordered by Davis included gold and diamond jewelry, designer watches, digital cameras, DVDs, Dyson vacuum cleaners, gourmet food (including steaks, lobster, and seafood), lingerie, clothing, jackets, DVD players and other electronic items. After obtaining these items, Davis would either keep them for personal use or pawn them at pawnshops in and around the Washington, D.C. area. Between December 2003 and November 2007, Davis pawned dozens of items and obtained over $24,084 in cash from the pawnshops in exchange for the items he fraudulently obtained from the Retailers.

Davis is facing between 2 and 32 years in prison. His sentencing date is June 20, 2008.

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is - no one escapes the consequences of their choices. While Davis may have looked good for a time and avoided the consequences - he did not avoid the consequences all together. Prison is no fun and Davis is facing many years plus substantial restitution for his conviction. Likely he will serve time and that will prove to be a dramatic change from his prior activities. You do reap what you sow.

If anyone reading has any background on Davis - feel free to comment as I study the behaviors and backgrounds of those convicted of white collar crime.

White Collar Crime Speaker - Chuck Gallagher - signing off…

600 People’s Identities were Stolen - Wendy Rigdon Pleads Guilty!

Wendy - what were you thinking?

Wendy Rigdon, age 37, plead guilty to using stolen credit cards and convenience checks issued to other individuals in order to purchase over $11,000 in goods and services. Rigdon admitted to using fake identifications as well as stolen credit cards to cash both counterfeit and/or legitimate checks sent via the Postal Service to other individuals.
Authorities estimate that through her scheme, Rigdon stole mail from more than an estimated 600 individuals.

Rigdon faces a mandatory two years in federal prison on the aggravated identity theft charge consecutive to the sentence imposed (up to 15 years in federal prison) on the access device fraud charge. She is also subject to a maximum $500,000 fine as well as restitution in the amount of $11,393.32. Rigdon remains in federal custody. Sentencing is scheduled on June 27, 2008.

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is - no one escapes the consequences of their choices. While Rigdon may have looked good for a time and avoided the consequences - she did not avoid the consequences all together. Prison is no fun and Ridgon is likely facing time in prison for this conviction. Serving time will prove to be a dramatic change from her prior activities. No credit cards are needed in prison. You do reap what you sow.

If anyone reading has any background on Rigdon or was a victim of her criminal activities - feel free to comment.

White Collar Crime Speaker - Chuck Gallagher - signing off…