Banking and Finance Sector

Extracted from the 7/23/2008 DHS Daily Open Source Infrastructure Report (Website)

9. July 22, Tampa Tribune (Florida) Negligent Florida let criminals infect mortgage industry. A Miami Herald investigation has found that from 2000 to 2007, regulators approved 10,529 people with criminal records to work in the mortgage profession. Some of these criminals committed nearly $85 million in mortgage fraud, stealing customers' identities, their savings and even their homes. Regulators ignored a state law adopted in 2006 requiring criminal background checks on mortgage brokers. The backgrounds of more than half the people who wrote mortgages in Florida were never checked. Despite the epidemic of mortgage fraud in recent years, license revocations declined during the last five years. And regulators allowed at least 20 brokers to keep their license after committing fraud. The Herald also found more than 5,000 people with criminal records became loan originators between 2000 and 2007 - including 2,201 who had committed financial crimes such as "fraud, money laundering and grand theft."
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10. July 21, KING 5 Seattle (Washington) Dozens of bank accounts drained in debit card scam. Dozens of victims have come forward after their bank accounts were drained by thieves. At least 75 people fell victim to a scam by simply using their debit card at a gas station and detectives expect many more reports to come in. Over the Fourth of July weekend, a highly organized group using stolen debit card information withdrew thousands of dollars from Pierce County, Washington, citizens' bank accounts. The information was obtained by using electronic skimming machines placed on gas pumps at an ARCO gas Station in Pierce County. Detectives believe the information was stolen in August 2007. Almost a year later, the information was used at multiple banks to withdraw thousand of dollars from each account. This was done over the three-day weekend to avoid detection. The card numbers and pins were trapped and stolen at the station and were used at ATMs throughout the King County area. Most card loses are around $1,200, but some are much higher up to $4,000, depending on account balance or overdraft rules. If anyone has used that ARCO station during that time frame, they should contact their financial institution and get a new card issued.
Source 21, Better Business Bureau Connecticut (National) BBB Connecticut reports rogue debt collectors breaking the law. As Americans struggle to cope with rising debt loads, complaints to Better Business Bureaus about some debt collection practices increased 26 percent in 2007. Consumers' most common complaints concern rude telephone calls, threats to have them arrested, using other forms of intimidation and violating federal law by ignoring the Do Not Call Registry. Some victims have even received repeated telephone calls on their cellular and home telephones. According to the Connecticut Better Business Bureau President, so-called third party debt collectors are going far beyond what the law permits them to do. Under the Fair Debt Collection Practices Act, debt collection companies are prohibited from abusive tactics to frighten people in debt, and obliged to treat debtors fairly. Some of the worst cases involve collectors calling neighbors, friends and employers in an effort to shame debtors into paying up. Consumers have a right to a written notice within five days after being contacted by a debt collector spelling out the name of the company, how much money
they owe and how they can contest their claim if they believe they do not owe the amount stated in the document. Collectors are not allowed to contact consumers after receiving a letter asking them to stop, though they may still inform them what action they intend to take.
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