Fraud in the 21st Century:
Computers and Fraud Examinations

Jim Baker, guest speaker at the Philadelphia Area Chapter of Certified Fraud Examiners Two Day Conference in Philadelphia on August 16 & 17, presented the following information. It is excerpted in a series, in our Philadelphia Examiner Newsletter, for your information and encouragement to take the course in another city if you missed Jim's presentation.

The Internet was created in 1969 with one computer and grew to 36 computers hosting web sites by 1991, but by 1999, there were 9.5 million web sites. In the U.S. there are 122.7 million web site users.

Given the volumn of data from the two day conference, definitions and brief examples will highlight portions of the text.

WHOIS, a searchable database which contains information about networks, networking organizations, domain names, ans associated contacts. Search: http://networksolutions.com/cgi-bin/whois/whois.

Boolean commands "or," "and," "not," "near," and "nesting" allow for specificity, inclusion and exclusion of search criteria. "Near" command requires termsto be close to one another. "Nesting" allows the complex building of a query using parentheses.

The Freedom of Information Act governs the availability of govenment records to the general public. Substantial controversy has arisen given the access to that information. As an investigator, those public records are vital. As we know as fraud examiners, this same access invites fraud and scams. The Fair Credit Reporting Act, with the amendments of 1997, limit access unless certain notices and a signed consent form are present. Failure to do so can mean civil penalties. In order for the FCRA to apply, the information must be a "consumer report." Note that a consumer report is defined as:

Any written, oral or other communication by a consumer reporting agency bearing on a customer's credit worthiness, credit standing, character, general reputation, personal characteristics, or mode of living.

The Federal Trade Commission, interprets the FCRA to include credit reports and public information, such as criminal records and DMV searches. The collected information must be from a consumer reporting agency, which is anyone who sells information about people including on-line services, a private investigator or the credit reporting agencies.

The FCRA does not apply if the information is obtained directly from the source. If a third party is used then compliance with the FCRA notice and consent provisions apply. The subject of the search must be given a separate, clear and conspicuous notice and obtain the person's written authorization.