Instruction manual Flashcards
(15 cards)
Dealing with credit card and cheque offences - Types of offences
Stolen cheques or cards – usually taken as part of a theft or burglary
Counterfeit cards – where a person’s genuine details are stolen via an ATM skimming operation etc
Fraudulent cheque accounts – where the account is opened specifically to commit offences, usually with false identification.
Dishonoured cheques
Procedures for investigating credit card and cheque fraud.
Interviewing Stage 1. Speak with informant and find out identity used by offender, description of offender and property obtained and vehicle used.
- Contact the accounts manager at the bank and find out: -account holder’s full particulars -date account opened, history and how it was operated -date the cheque book or credit card was reported missing, how and by whom it was reported -serial number of missing cheques, details of any dishonoured cheques and returned -whether account holder is suspect of issuing valueless cheques.
- When an account has been opened with ficticios details find out: -account number and date opened -nature and amout of first deposit and any other deposits. -details used when account opened -description of suspect and associates at the time -names and addresses of the employee who opened the account and other employees who can ID suspect. Obtain statement from them. -serial numbers of cheques supplied -details of dishonoured cheques and victim’s defrauded.
- Obtain sample of suspect’s handwriting from bank documents.
- When cheques are dishonoured through lack of funds, interview account holder and obtain statement that includes: -suspects full particulars -date account opened, nature and amount of first deposit -any arrangements for regular deposits such as wages and dates/amounts of irregular deposits. -details of any overdraft -general pattern of way account was operated -state of account when cheques were issued -whether suspect was aware of the state of account when it was issued. Obtain any correspondence from the bank telling them not to issue any more cheques. Confirm this was not returned to the bank undelivered. -details of dishonoured cheques and victim’s defrauded -amount of savings in other accounts.
- Contact other police stations and fraud squads who may hold related complaints and information. Investigations to be coordinated but one squad to take responsibility.
- Find out whether offender was photographed or on CCTV at the bank or retail outlet and obtain images.
Ongoing inquiries for investigating cheque fraud
- Liaise with investigations officer and arrange: -to be advised immediately of any further dishonoured cheques -for the bank to recover the original cheques and forward them to you. However Bank may insist on sending them to the complainant, if so, contact complainant and retrieve them.
- Documents may need to be examined by fingerprint expert or document examiner. Ensure they are handled as little as possible.
- Inform the Fraud Squad collator of the offending. Enter into NIA items of property obtained by means of dishonoured cheques. Locating the offender 1. Check any relevant addresses 2. Follow up on obvious information e.g. regos, telephone numbers etc 3. Photo of offender – bully board message/intel Property easily deposed of – avenues for disposal? Implement early warning system – consider customs for ATM fraud – these are often perpetrated by trans-national gangs who remain in the country for short periods of time.
- If there are no suspects – consider forensics on the cheques etc
Arrest procedures for investigating cheque fraud
- Recover evidence such as credit cards, stolen eftpos terminals, equipment used for altering and interfering with electronic devices, anything capable of storing electronic data, cheque books, pens and property obtained. Issue 268.
- Interview the suspect and obtain explanation fr the offences to establish whether there was intentto obtain or cause loss by deception.
- Find out the suspect’s: -knowledge or the state of the account -expectation of funds -overdraft arrangements if any
- Obtain statement and handwriting specimens. It is preferable to obtain the specimens on a form that is the same as, or similar to, the offending document.
- Issue OR
Prosecuting cheque fraud
- If there is a case to answer, obtain authority to prosecute.
- For stolen cheques used to obtain, it is usual to file charge of obtaining by deception without charging the forgery and using offences disclosed.
- Prepare the file, remember to quote cheque numbers.
- Prepare a blanket charge if: -suspect intends to plead guilty -difficult to specify individual dates for series of offences
Company Fraud Category A
Large scale thefts and other dishonestly offences against employers by employees
– usually people such as managers or accountants who uses their position to manipulate the company’s financial systems. In these cases the identity of the suspect is usually known and the purpose of the investigation is to the prove the offending by:
- ensuring the informant provides all the documentary evidence
- tracing the suspect’s actions -establishing where the money went
- executing production orders or search warrants on suspect’s bank accounts and home to seize evidence
- interviewing the suspect.
Company Fraud Category B
Dishonesty offences committed against financial institutions by people outside the institution obtaining money from it through deception and GST fraud against IRD by businesses making false GST returns
The investigation takes the same course as per category A
Company Fraud Category C
Commercial Fraud committed against the public by people who, either as individuals or through the guise of a company, entice people to invest money.
The identity of the suspect and its principals is often known and the purpose of the investigation is to prove the offending by:
- confirming company officer details through a company search
- interviewing victims to determine the false representations and inducements made to them
- identifying through the victim’s transactions, the details of the suspect company’s bank
- executing PO’s and SW’s on the suspect’s bank accounts and premises to have evidential material produced or seized.
- interviewing the suspect
Company Fraud Category D
Dishonesty offences committed by professional people in a position of trust such as solicitors and accountants, against their clients. In these cases the identity of the suspect is known and a professional body may have already carried out an enquiry. There will usually be a paper trail to follow, although it may be complex.
The purpose of the investigation is to the prove the offending by:
- putting together the paper trail
- gathering documentary exhibits
- interviewing appropriate clients
- preparing and executing PO’s and SW’s
- interviewing the suspect
- preparing the case in such a way that it can be understood by counsel and juries.
Assistance available from external agencies in the investigation of company fraud
Police accountants and legal officers – Police forensic accountants are available to give advice and assist personally. Legal section can help in preparing PO’s and SW’s and charges.
Ministry of Business, Innovation and Employment – possible sources of information are: -registrar of companies -companies office -official assignee -insolvency services
Commerce Commission – can assist with matters relating to the Fair Trading Act 1986, pyramid selling.
Financial Markets Authority – can assist in matters relating to the Financial Markets Authority Act 2011 and the issuing of prospectuses.
NZ Customs – assist in matters involving international travel and CAPPS alerts.
Liquidators and receivers – these administer companies that are in liquidation or receivership, they are usually accountants.
Interviewing Stage (SCFHDCC)
- Speak with informant and find out identity used by offender, description of offender and property obtained and vehicle used.
- Contact the accounts manager at the bank and find out: -account holder’s full particulars -date account opened, history and how it was operated -date the cheque book or credit card was reported missing, how and by whom it was reported -serial number of missing cheques, details of any dishonoured cheques and returned -whether account holder is suspect of issuing valueless cheques.
- When an account has been opened with fictitious details find out: -account number and date opened -nature and amount of first deposit and any other deposits. -details used when account opened -description of suspect and associates at the time -names and addresses of the employee who opened the account and other employees who can ID suspect. Obtain statement from them. -serial numbers of cheques supplied -details of dishonoured cheques and victim’s defrauded.
- Obtain sample of suspect’s handwriting from bank documents.
- When cheques are dishonoured through lack of funds, interview account holder and obtain statement that includes: -suspects full particulars -date account opened, nature and amount of first deposit -any arrangements for regular deposits such as wages and dates/amounts of irregular deposits. -details of any overdraft -general pattern of way account was operated -state of account when cheques were issued -whether suspect was aware of the state of account when it was issued. Obtain any correspondence from the bank telling them not to issue any more cheques. Confirm this was not returned to the bank undelivered. -details of dishonoured cheques and victim’s defrauded -amount of savings in other accounts.
- Contact other police stations and fraud squads who may hold related complaints and information. Investigations to be coordinated but one squad to take responsibility.
- Find out whether offender was photographed or on CCTV at the bank or retail outlet and obtain images.
Ongoing enquiries (LDI)
- Liaise with investigations officer and arrange: -to be advised immediately of any further dishonoured cheques -for the bank to recover the original cheques and forward them to you. However Bank may insist on sending them to the complainant, if so, contact complainant and retrieve them.
- Documents may need to be examined by fingerprint expert or document examiner. Ensure they are handled as little as possible.
- Inform the Fraud Squad collator of the offending. Enter into NIA items of property obtained by means of dishonoured cheques.
Locating the offender (AFPF)
- Check any relevant addresses
- Follow up on obvious information e.g. regos, telephone numbers etc
- Photo of offender – bully board message/intel Property easily deposed of – avenues for disposal? Implement early warning system – consider customs for ATM fraud – these are often perpetrated by trans-national gangs who remain in the country for short periods of time.
- If there are no suspects – consider forensics on the cheques etc
Arrest (RIFH)
- Recover evidence such as credit cards, stolen eftpos terminals, equipment used for altering and interfering with electronic devices, anything capable of storing electronic data, cheque books, pens and property obtained. Issue 268.
- Interview the suspect and obtain explanation for the offences to establish whether there was intentto obtain or cause loss by deception.
- Find out the suspect’s: -knowledge or the state of the account -expectation of funds -overdraft arrangements if any
- Obtain statement and handwriting specimens. It is preferable to obtain the specimens on a form that is the same as, or similar to, the offending document.
- Issue OR
Preparing for prosecution (AOPB)
- If there is a case to answer, obtain authority to prosecute.
- For stolen cheques used to obtain, it is usual to file charge of obtaining by deception without charging the forgery and using offences disclosed.
- Prepare the file, remember to quote cheque numbers.
- Prepare a blanket charge if: -suspect intends to plead guilty -difficult to specify individual dates for series of offences
