Metro uses scare tactics with businesses

"Our goal," said Metro Police Lt. Steve Franks, "is to scare the hell out of you."

With that, Franks and his colleague, Sgt. Bob Sebby, launched into stories about businesses being ripped off by a sophisticated brand of financial criminals who use all kinds of high-tech gear to steal millions of dollars from their unsuspecting victims.

Knowing that Metro and other police agencies nationwide are losing the battle against criminals who use information found with a computer in their thefts, Franks and Sebby have gone on the offensive with the best tactic they have -- informing people about how they can protect themselves.

Metro is the police agency serving the city of Las Vegas and much of the surrounding metro area of Clark County.

A three-hour workshop sponsored by the Nevada Small Business Development Center of UNLV and the Las Vegas Chamber of Commerce was a start. Based on the attendance at Tuesday's event, Franks and Sebby have a long way to go -- only about 10 people turned out.

But the Metro financial crimes investigators promised more workshops to educate people about credit card, payroll and identity fraud and counterfeiting. And, if it really was their intent "to scare the hell out of" the audience, that mission was accomplished.

Franks said financial crime is now a $10 billion business in the United States and more violent criminals are turning to high-tech fraud because there's more money to be taken and anyone with access to computers, scanners and printers found in most offices can turn a modest investment into a lucrative rip-off.

Take mail theft. Crooks who steal checks out of envelopes destined for a creditor aren't after a quick score by trying to cash the check. They're more likely trying to reproduce a likeness of the checks, complete with a bank account number, with the intent of cleaning out the whole account.

Sebby said Las Vegas and Phoenix are running neck and neck for the dubious distinction of being the national leader in mail thefts. The crooks aren't just raiding mailboxes, either. The investigators think it's no coincidence that the most popular uniform rented from costume stores is that of a postal worker. To prevent mail theft, they recommend getting to know the regular mail carrier.

The telephone is another avenue for potential scams. The Metro officers told a story about a scam artist posing as a flower delivery man showing up at a business with a bouquet for a person no one has ever heard of.

When the delivery man uses the phone to find "the right address," he actually calls a high-priced 900 number, sometimes calling over and over because "the line is busy." The owner of the 900 number bills the business and kicks back a percentage to the delivery man and they both hope the billing goes unnoticed in a large office that already has thousands of long-distance calls.

The scam artist can usually pull the caper off on neighboring businesses -- and doesn't even have to invest in a fresh bouquet.

Perhaps the most terrifying financial crime the Metro officers described is identity fraud. Criminals can wreak havoc on an unsuspecting victim's credit by successfully obtaining credit cards with information readily available on the Internet. Sebby and Franks recommended carefully protecting date-of-birth and Social Security number information to guard against identity fraud.

Sebby said he will attempt to convince the Nevada Legislature to approve a bill to make identity fraud illegal in the state when lawmakers convene this year.

Other highlights of the presentation:

Train employees. Education is the best tool law enforcement has in fraud and counterfeit prevention. The officers said there is a tenfold return on the amount of time and money invested in education efforts. "We're really not taking it seriously yet," Franks said.

Never carry more credit cards than you need. Most people won't use every card to its maximum limit on a given day, yet most people carry all their cards all the time.

Motorists should be careful when they lock their cars with a remote control. The signal can be captured and replicated by a thief who can rummage through a car for bank account receipts and other information most people don't want circulated.

Shopkeepers should ask for multiple IDs. Most people have several forms of identification when they make a transaction, Franks said. But thieves usually only have one or two. Most people don't mind showing multiple IDs if it means preventing fraud.

Consider policies at a business that make it easier for police to obtain information quickly. Many stores have policies against giving information about transactions to anybody. Police can obtain the information they seek with warrants and subpoenas. But that takes time -- and it's time criminals use to make a getaway.

Be wary of employees who carry portable scanning devices. They can be gathering information that can be used by criminal partners versed in high-tech theft.

Consider obtaining a low-limit credit card just for telephone and Internet transactions. That way, if a card number is stolen, the thief can't steal your entire credit line.

Shred everything with an address or account number. Thieves often swim through trash bins in search of discarded mail they can use to steal things.

Keep an eye on your employees' lifestyles. If they have drug or gambling problems or pending divorces, they could be inclined to steal. "If they're driving a Gremlin one day and driving a Jag (Jaguar) the next day, we may have a problem," Sebby said.

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