Twin Reports Suggest We are Losing the Cybercrime War

According to Symantec, malicious activity in 2008 amounted to 60 percent of all the activity they have recorded since they started keeping records. Last year, they recorded 1.6 million new malicious code signatures and blocked 245 million malware attacks from their users every month.

Many of these attacks – when the words malware or malicious code are used – are designed to steal information (preferably financial) or take command and control of a computer. Once command and control of a computer is accomplished – it’s called a zombie and networked into a botnet. A botnet works as a super computer and is used to spam the electronic universe. Some of these spam e-mails contain even more malware, which infects more unprotected systems.

In 2008, Symantec saw a 31 percent increase in the number of zombie computers. In 2008, Symantec observed an average of more than 75,000 active bot-infected computers each day, a 31 percent increase from 2007. Symantec's latest report, which covers January to December of 2008, suggests that 90 percent of these attacks are designed to steal information. Attacks using key loggers – which log a computer's keystrokes and send them to the criminals who installed the malicious code – grew from 72 to 76 percent of the activity observed by Symantec's security lab.

Many of these attacks use a technique known as phishing, which is normally delivered in a spam e-mail. Phishing either tricks people into giving up their information (social engineering) or gets them to download malicious code, which makes the process automatic. Last year, Symantec detected 55,389 phishing website hosts, which is where you are sent if you click on a link in a phish-mail. Spoofed financial services companies accounted for 76 percent of these lures compared to 52 percent in 2007.

Spam, which delivers most of this activity, continued to grow, too. This equated to 349.6 billion spam messages in 2008 compared to 119.6 billion spam messages in 2007, which is a 192 percent increase. According to the monthly spam report from Symantec, last month's spam social engineering themes included mortgage rescue, tax season, terror and scareware (fake antivirus solutions) for the much anticipated Conficker worm that was designed to hit on April Fool's Day. Please note that Conficker a.k.a. Downdaup is still a problem, but it didn't spread it's gloom and doom on April 1st to the degree it was expected to.

Cybercriminals have always been quick to exploit the headlines and with the sour economy in the news have been targeting the financial industry. Here also, Symantec saw an increase of personal and financial information being stolen by using financial institutions as bait. In 2008, this amounted to 29 percent of the activity compared to 10 percent in 2007.

In their latest report, Symantec leveraged information from their recent Report on the Underground Economy which points to an organized criminal community that specializes in the sale of stolen personal and financial information. They noted that the economic principle of supply and demand has come into play with this underground economy due to a glut of stolen data – causing prices to go down.

Most of this stolen information is sold in electronic forums, such as websites and Internet Relay Chat (IRC) channels. These forums enable information to be sold worldwide and make the activity anonymous. Because the activity is anonymous, it is very difficult to investigate or shut-down. Credit cards go anywhere from less than a dollar to about $30 and bank account credentials sell for anywhere from $10 to $100. Much of the cost depends on the perceived value of information and the amount of it, which is purchased.



Symantec isn't the only one releasing a report showing an alarming increase information theft. Verizon just released a report showing that 285 million information records were compromised in 2008, alone. While the Symantec report focuses more on individual attacks, the Verizon report studies the impact large scale attacks on businesses and organizations. When combined, the information in these reports is pretty revealing.

According to the Verizon report, the 285 million records stolen are greater than what was known to be stolen in 2004 to 2007. I say "greater" because I've often speculated that the most valuable information stolen is the data no one knows has been stolen. After information is known to have been stolen, measures are taken to protect it. This makes it useless or at least a lot harder to use.

Recently, underground services have also popped up in these underground forums, which allow information thieves to see if the information they are buying hasn't been compromised (pun intended).

Verizon, who investigated 90 data breaches last year, noted that malware is now being designed to steal debit card and PIN information. The report also breaks down the point of compromise by industry and how the data was breached. For instance, in the past year 93 percent of the activity compromised was at financial institutions. Also cited was that most attacks were accomplished by external entities (73 percent) taking advantage of procedural flaws, but that when the breach was assisted by an insider (20 percent) more data was stolen.

The trend towards compromising debit cards and PINS is likely because these instruments are the quickest route to obtaining cash. Obtaining cash is normally the ultimate goal of an information thief and stolen debit card information accomplishes this with a minimum of effort.

Also covered are breaches caused by partners (32 percent), which are external entities providing services to a business. Please note these percentages add up to more than 100 percent, which means that multiple points of compromise can be attributed to any one incident in some cases.

Both reports are an excellent read and point to the fact that there is a glut of stolen information for sale on the black market, which isn't good news. The fact that more information is being stolen than ever before – even when security procedures are ramped up on a regular basis – is not good news, either.

Perhaps both of these reports suggest the obvious, which is we are not winning the war against cybercrime and the problem is getting worse. Historically, these losses have been written off and the cost is passed to the consumer. With the sour economy and the fact that a lot of the financial industry is already on the brink of bankruptcy, writing off these losses might no longer be a realistic solution.

The reason criminals can easily exploit this information is that we are storing it in too many places that are too easy to access. The reason this has happened is because a lot of people are making a lot of money by using and selling this information. Making the information easy to access makes it easier to make money from it. I'm all for making money, but at what point does it prove to be irresponsible?

No security fix is going to solve this problem without a healthy dose of common sense being infused into the scheme of things!

After all, the economy is already in a lot of trouble because of some of same people making a lot of money, irresponsibly. My guess is we are getting to the point, where we will no longer be able to write-off the cost of being irresponsible to the consumer, as well as, the taxpaying public.

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How Foreign Crime Gangs Establish Their Identities

A Washington Post story about a Korean organized crime ring -- operating within driving distance of our nation’s capital -- reveals how these groups are involved in a wide-variety of criminal enterprises designed to create illegal revenue flows. It also shows how foreign criminals establish themselves and operate within our society.

The problem isn’t people trying to make a better life for themselves, the problem is that criminals are able to easily manipulate the security of our borders. There is even a good example in the story of how illegal immigrants are routinely victimized. In order to pay back their debt for being brought in illegally -- they were working in a sweatshop located in a middle-class residential neighborhood — producing counterfeits of designer labels.

On a side note, according to the International AntiCounterfeiting Coalition, counterfeit merchandise is a $600 billion a year problem in itself.

The story, written by Tom Jackman, of the Washington Post details an undercover investigation that starts with manipulating cigarette taxes and progresses into identity theft, mortgage fraud, money laundering, counterfeiting and even murder-for-hire.
The initial scheme with the cigarettes involved buying cigarettes in Virginia — which has a 30 cent per pack tax -- and transporting them to New York where the tax runs $4.25 a pack. Like the designer clothing being knocked-off (counterfeited), the tax stamps were counterfeited. According to an ATF agent quoted in the story, this equates to billions of dollars that have “gone missing” in tax revenue.

The identity theft and resulting crimes, such as mortgage and credit card fraud, were discovered when undercover agents were introduced to an individual selling social-security numbers and passport information obtained from Chinese nationals working in the Marianas Islands. This information was then used to establish credit and obtain identification to make the members of the gang appear to be legitimate members of our society.

The investigation also uncovered a dishonest DMV employee in Illinois, who was providing identification to members of the group. These documents were then traded in for identification from other States. In this case, the State was often Virginia. This sent shivers up my spine as I remembered that Mohammed Atta and crew used Virginia, Florida, New Jersey and California driver’s licenses' — which were obtained after they entered the country with counterfeit documents – to board the planes in what became 9-11.



In the past, I’ve written about and spoken to Suad Leija and her husband, who have been working with the government to expose a cartel that operates throughout the country providing counterfeit identification documents. They have dubbed these documents, “Paper Weapons” because they can be used to commit crimes or even achieve radical political objectives. Suad’s story has been covered in the mainstream media on a fairly regular basis. According to the conversations I've had with Suad and her husband, most of the people illegally entering the country use what are known as "feeder documents" to establish themselves. Their eventual goal is to establish an identity that appears to be as legitimate as yours or mine. Once they accomplish this, the identities can be used to establish credit and even get a mortgage.

In the Washington Post story, no mention of direct fraud involving a financial loss is mentioned. The intent seems to be to use the identities to establish a "seemingly" legal status and then commit other crimes. The story mentions that the group offered to help launder the illegal revenue being made from selling the cigarettes. This was done with personal and cashier’s checks, which suggests the identities were also used to open bank accounts.

These fraudulently established identities were also being used to buy real estate. Although no direct financial fraud is mentioned in the article, it wouldn’t be very hard for people doing this to get some home-equity loans, cash them out and disappear. They could do this if they were leaving the country, or simply move on to another identity and do it all over again. Given that we are in a pretty severe recession, sparked by a mortgage crisis, it again made me wonder how much of it might have been caused by fraud that we aren’t even aware of?

When the sweat shops were raided, crack pipes were found. This was probably to keep the people working in them in a state of addiction, which would assist in keeping them under the control of their keepers. Abuse of illegal immigrants is well-documented and this is probably only one of many examples going on throughout the country at this very moment. It isn’t unknown for illegal immigrants to be forced into smuggling drugs, committing financial crimes or even becoming prostitutes.

This is just one example, but a good one, of how insecure our borders really are. It also shows the more severe consequences of allowing identity theft to run rampant in our society. Now that the election is over, perhaps it’s time for our politicians to stop ignoring the problem. We are a nation of immigrants, and in the end, very few of us are against hard-working people trying to better themselves. The problem is that the way we currently approach the problem enables criminals (and potentially terrorists) to operate and profit at the expense of society.

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DOJ announces strategy to go after organized crime in a borderless environment

I've often written about borderless crime being committed with a click of a mouse, as well as, the lines that law enforcement jurisdictions impose, which can make investigative and prosecution efforts, frustrating.

The Attorney General and the Justice Department are announcing a new strategy to go after the problem.

From the press release on fbi.gov:

Today, Attorney General Michael B. Mukasey announced a new strategy in the fight against international organized crime that will address this growing threat to U.S. security and stability. The Law Enforcement Strategy to Combat International Organized Crime (the strategy) was developed following an October 2007 International Organized Crime Threat Assessment (IOC Threat Assessment) and will address the demand for a strategic, targeted, and concerted U.S. response to combat the identified threats. This strategy builds on the broad foundation the Administration has developed in recent years to enhance information sharing, and to secure U.S. borders and financial systems from a variety of transnational threats.

In the press release, Attorney General Mukasey sums up the threat by saying:

The strategy specifically reacts to the globalization of legal and illegal business; advances in technology, particularly the Internet; and the evolution of symbiotic relationships between criminals, public officials, and business leaders that have combined to create a new, less restrictive environment within which international organized criminals can operate. Without the necessity of a physical presence, U.S. law enforcement must combat international organized criminals that target the relative wealth of the people and institutions in the United States while remaining outside the country.

Also stated in the verbiage of the press release is that there will be more coordination of information between federal law enforcement agencies. "This unprecedented coordination will include utilizing all available U.S. government programs and capabilities, including existing economic, consular, and other non-law enforcement means," according to Attorney General Mukasey.

"The Law Enforcement Strategy to Combat International Organized Crime (the strategy) was developed following an October 2007 International Organized Crime Threat Assessment (IOC Threat Assessment)," according to the press release.

The press release identifies and defines the following strategic threats:

International organized criminals have penetrated the energy market and other strategic sectors of the U.S. and world economy. As U.S. energy needs continue to grow, so too could the power of those who control energy resources.

International organized criminals provide logistical and other support to terrorists, foreign intelligence services, and foreign governments, all with interests acutely adverse to those of U.S. national security.

International organized criminals traffic in people and contraband goods, bringing people and products through U.S. borders to the detriment of border security, the U.S. economy, and the health and lives of those human beings exploited by human trafficking.

International organized criminals exploit the U.S. and international financial system to move illegal profits and funds, including sending billions of dollars in illicit funds through the U.S. financial system annually. To continue this practice, they seek to corrupt financial service providers globally.

International organized criminals use cyberspace to target U.S. victims and infrastructure, jeopardizing the security of personal information, the stability of business and government infrastructures, and the security and solvency of financial investment markets.

International organized criminals are manipulating securities exchanges and engaging in sophisticated fraud schemes that rob U.S. investors, consumers, and government agencies of billions of dollars.

International organized criminals have successfully corrupted public officials around the world, including in countries of vital strategic importance to the United States, and continue to seek ways to influence—legally or illegally—U.S. officials.

International organized criminals use violence and the threat of violence as a basis of power.

What alarmed me the most in this news release, especially with out of control oil prices, was that organized crime was involved in the energy sector. Randall Mikkelsen at Reuters must have been interested in this statement and questioned Alice Fisher, head of the DOJ criminal division. Fisher seemed downplay the statement by saying "I don't think that you can directly link the two." Fisher did go on to state that organized crime had a foothold in global financial markets?

To me, that's at least as scary as organized criminals being involved in the energy sector. What we do know is that both the financial and energy sectors seem to be causing the average citizen a considerable amount of pain and suffering, lately.

The reason for this response might be that investigative entities don't generally want to comment on the specifics of any ongoing investigations? There are good reasons for not doing so.

Interestingly enough, the Organised Crime and Corruption Reporting Project, which is run by some Eastern European journalists has covered potential organized criminal involvement in the energy sector in Eastern Europe. On a story, which can be seen on the home page of the site, it states:

In between are the energy traders. They say they are the future of low-cost energy but that is a promise yet to be fulfilled. These politically connected and well-financed businessmen have reaped billions in sales, often at the expense of state companies. Investigators in a number of countries are trying to determine whether some of them made their millions in profits illegally or legally in systems that have few laws and not enough regulations.

Although the executives at Enron were never found to be involved with organized crime, the Enron debacle illustrates how a little dishonesty in the energy sector can create a lot of financial havoc for a lot of people!

Also alarming, is the statement that public officials around the world are being corrupted by these groups.

As I stated in the first paragraph, I've often written about some of the items now being identified as strategic threats. We live in a society, where identities are stolen in mass, counterfeiting is rampant and rumors of foreign governments hacking into military and industrial systems are surfaced, too frequently.

And so far as hacking, criminal organizations -- who seem to be run as efficiently as any successful corporation -- appear to have the ability to crack into whatever defenses the good guys put into place. There has been speculation that these groups can afford to recruit the best and the brightest in a lot of "disciplines" in addition to information technology, also.

These factors have also enabled a lot of other (even more dangerous) criminal activity to spread at what some consider, epidemic proportions.

Given all these trends, the only successful strategy is to go after the people behind it. Nothing else has seemed to work very well, at least so far!

The full press release can be seen, here.

Reuters story can be seen, here.

I would also like to thank Suad and Lazarus at Paper Weapons, Heike at The Dark Visitor (information on Chinese hacking) site and the journalists at the Organised Crime and Corruption Reporting Project for the links, which I seeded in this post to make a point.

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NATO Summit and EU Conference address the global reaches of illict cyber activity

On the Internet -- crime, espionage and some say, terrorism can cross a border with the click of a mouse. Because of this, it probably shouldn't be surprising that this is a hot topic at the NATO summit, as well as, a seperate conference conducted by the EU.

The AP is reporting:

At a two-day conference starting Tuesday in Strasbourg, France, the Council of Europe will to review implementation of the international Convention on Cybercrime and discuss ways to improve international cooperation.

Cyber defense also will be on the agenda when heads of state from NATO's 26 member nations gather in Bucharest Wednesday for three days. The leaders are expected to debate new guidelines for coordinating cyber defense.

Cyber defense is increasingly becoming a concern. For instance, there is increasing evidence that the Chinese have been hacking into other government's systems and have a cyber war doctrine being developed.

Last year, there was the much written about attack on the government of Estonia, also.

The EU conference will also address more financially motivated criminal activity on the Internet, also.

The AP article quotes a German University Professor, Marco Gercke, who specializes in computer law as saying:

Compared to regular terror attacks, it is much easier for the offenders to hide their identity. There are at least 10 unique challenges that make it very difficult to fight computer-related crime," said Gercke, one of the conference participants. "The success rate of cybercrime is very high."

While it is unknown, whether or not, these meetings of the minds will yield any results -- the fact is that unless there is greater cooperation and collusion between the good guys -- the problems of undesirable activity being spread with the click of a mouse is likely to continue growing at an alarming rate.

A little more teamwork and forward thinking might go a long way towards solving the problem. Of course, taking some of the players out from the opposition (bad guys) would go a long way, also!

To close this brief post, I would like to point to matters a little closer at home. An American computer law expert recently wrote a forward thinking article on the Hannaford data breach, where hackers stole 4.2 million payment (credit/debit) card numbers and the recent settlement between TJX and the FTC.

In his well thought out article, Ben Wright of SANS writes:

The FTC is well-meaning here, but it is misdirected. By singling out TJX and chastising it with the “unfairness” “bad guy” rhetoric, the FTC distracts the necessary public conversation. It implies that if we can just punish these lazy merchants enough (and force them to comply with the PCI and similar controls), then credit cards will be safe. That’s wrong.

The criminal warfare directed at the credit card system is more powerful than the theory behind PCI. The whole credit card system needs to change. As a society we need to focus on beating the criminals, and stop flogging victims like TJX as unfair privacy infringers.

To me, this means that instead of spending all our resources on inadequate security and filing litigation against the "unlucky targets" of organized cyber crime, we need to start addressing the root of the problem. I'll give anyone reading this one guess, who that might be?

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Does healthcare fraud tie into organized crime, illegal immigration and .... corporations?

Read a pretty interesting article about how identity theft is being used (more and more frequently) to commit healthcare fraud. The article also alleges that organized crime is exploiting this activity to their financial advantage.

Since organized criminals normally are hard to get a "quote" from, we'll have to speculate about how much they are involved in this phenomenon.

The article written by Jim McKay appeared in govtech.com and quoted a section chief (Sharon Ormsby) from the FBI:

At least 3 percent of U.S. health-care costs (about $60 billion) can be attributed to fraud, according to the National Health Care Anti-Fraud Association. Of that, 1 percent is attributed to medical ID theft - an ominous figure when the numbers are triangulated, according to Sharon Ormsby, section chief for the financial crimes section of the FBI.

"If you figure by 2012, national health-care expenditure costs for the country will be approximately $3 trillion, you look at the fact that the National Health Care Anti-Fraud Association conservatively estimates health-care fraud to be 3 percent to 5 percent of that expenditure amount," she said. "That's a significant amount of fraud, so we do have a strong interest in it."

Another interesting article related to the subject of healthcare fraud showed up in the news in the past few days, also. CBS News did a story about a "whistleblower," who turned in his superiors -- in this instance a hospital -- for fraudulently billing government healthcare programs.

Unlike the govtech.com article -- which only suggests a dollar loss -- the CBS piece estimates the cost of healthcare fraud at about $11 billion a year.

Sharyl Attkisson, a CBS correspondent covered this story and it points to more commentary about government waste in general on the Couric (Katie) and Co. blog.

Please note the whistleblower in this instance received $3 million for turning in his employer.

With the baby boom generation headed for retirement and reports of hospitals going under because they provide free healthcare for illegal immigrants, there is a lot of camouflage for healthcare fraud to hide in.

The fact that a hospital was in on the fraud shouldn't surprise a lot of people, either. If you are following the 2008 election, the subject of legitimate companies gouging the healthcare system for profit isn't a new topic.

There is little doubt that the subject of healthcare costs is a hot topic and will continue to be for a long time to come.

Govtech.com article, here.

Here is a story, I did in May that covers the ties between healthcare fraud, organized crime and illegal immigration:

Medicare Fraud arrests might expose ties to medical identity theft and organized crime

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Could buying that knock-off item fund the next terrorist attack?

While this story is from a British perspective, it reveals how the trade in counterfeit (knock-off) merchandise is funding some pretty nasty characters beyond the borders of the British Isles.

Richard Elias recently revealed in Scotland on Sunday:

The sale of fake CDs, DVDs, clothing and perfumes in Glasgow and other British cities is helping to raise money for one of the world's most-notorious terror outfits – the group held responsible for the slaughter of US journalist Daniel Pearl in 2002.

MI5 is now targeting British-based supporters of Jaish-e-Mohammed (JeM), a pro-Kashmiri group dedicated to gaining the disputed territory its independence. Its aims include the "destruction" of the United States and India.

This isn't the first time the words terrorist organization and counterfeit merchandise have been used in the same sentence. And in reality, the problem goes far beyond the borders of the United Kingdom.

A good video about the counterfeit problem by KRQE in New Mexico is posted on YouTube, which can be seen, here.

The video references a report by the IACC (Internation Anticounterfeiting Coalition). The IAAC stated in a white paper that:

Low risk of prosecution and enormous profit potential have made criminal counterfeiting an attractive enterprise for organized crime groups. Congress recognized organize crime’s increasing role in the theft of intellectual property when it made trademark counterfeiting and copyright piracy predicate acts under the federal RICO statute (see 18 U.S.C. § 1961). Recently, ties have been established between counterfeiting and terrorist organizations who use the sale of fake goods to raise and launder money.

Counterfeiting is becoming a worldwide problem that poses a threat to the economy and public safety. Unfortunately, a lot of people view it as a victimless crime and continue to support it by purchasing knock-off merchandise.

If you take the time to read the IAAC White Paper, it also reveals that a lot of countries that we do business with in the global economy are some of the biggest culprits.

And the biggest offender seems to be China!

This should be no surprise considering the amount of unsafe product being found at your local store coming from that country.

While there are obviously more players in all of this than terrorist organizations, supporting any of them with our business isn't in the public's best interests.

IAAC White Paper, here.

Scotland on Sunday story, here.

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Counterfeit Document Gang Jefe(s) "Chiefs" charged with murder, racketeering and conspiracy

Recent picture of Suad Leija taken at an undisclosed location. Although not mentioned in many of the articles about this arrest, Suad is responsible for providing a lot of the information used in this latest indictment. Her story has been covered in the mainstream media by Lou Dobbs, Paula Zahn, Fox, CNN, La Opinion and Univision.

Operation Paper Tiger, the federal investigation into the organized trade in counterfeit documents has resulted in the arrest of three of the Jefes (Chiefs) of the largest organized gang (the Castorena Leija-Sanchez organization) involved in the trade.

Also arrested was one of the hit-men associated with the gang. The latest charges include murder, racketeering and conspiracy. These charges have been added to previous charges (already) filed regarding the organized counterfeiting of identification documents by the organization.

All 23 defendants arrested thus far are from the Castorena Leija-Sanchez counterfeit document organization. Three of the people arrested include Manuel Leija-Sanchez, Pedro Leija-Sanchez and Julio Leija Sanchez -- three brothers who allegedly are in control of the organization throughout the United States and Mexico.

There is a lot of evidence that this organized gang, which the government describes as International in nature, is responsible for providing counterfeit documents to ANYONE with the money to buy them. This would include not only millions of illegal immigrants, but a LOT of criminals and potentially, even terrorists.

On Wednesday, the Department of Justice announced the indictment of the three leaders of this cartel in a press release:

Federal racketeering conspiracy and murder-related charges were added against three brothers – now all in custody and charged together for the first time – and their alleged “hitman” in Mexico to a pending indictment resulting from the dismantling in April of an international counterfeit identification document business that allegedly generated profits between $2.5 million and $3 million a year in Chicago’s Little Village Community. Manuel Leija-Sanchez, 40, who was arrested in Mexico last Friday, and his brother, Pedro Leija-Sanchez, 35, who was arrested in Mexico in August, are facing extradition to the United States. Together with a third brother, Julio Leija-Sanchez, 31, who was arrested in Chicago in April, the three are among a total of 23 defendants facing charges in Chicago as part of Operation Paper Tiger, an investigation led by U.S. Immigration and Customs Enforcement (ICE). Also facing extradition from Mexico is the alleged hit-man, Gerardo Salazar-Rodriguez, 34, who was charged previously and was arrested in Augustin Mexico, federal law enforcement officials announced today.

Not mentioned in the press release, or most of the news articles, I saw appear on this story is the fact that most of this was made possible by a young woman by the name of Suad Leija.

Suad Leija is the step-daughter of Manuel Leija-Sanchez -- who has been providing information to the authorities about the gang's inner-operations and identifying members -- previously unknown to law enforcement.

The Chicago Tribune (Antonio Olivo) was the one mainstream source, I'm aware of, who refers to Suad's involvement in the case. I've also been told by Suad's husband that she has completed two recent interviews with Univision and was featured on the Minutemen Project the other day.

Suad started providing information on the organization after discovering her husband was trying to gather intelligence on potential terrorists, who the organization had provided with counterfeit documents. This led to her having to make a hard choice, which was whether to side with her family, or her husband. Suad chose her husband after being educated on the dangers this trade poses to the United States.

I would have to speculate that a lot of evidence used to arrest Manuel, Pedro and Julio was obtained as a result of information Suad has provided to the authorities.

If one refers to the Paper Weapons site, it also shows that the earnings of this cartel are a lot higher than $2.5 - 3.0 million allegedly earned by the Chicago cell of the organization. The figure quoted on the site is actually closer to $300 million. This figure includes the earnings of the numerous cells of the organization, which are located in cities throughout the country and operated as franchises.

Suad's story has been well-documented by mainstream media types, such as Lou Dobbs, Paula Zahn, Fox, CNN, Univision and La Raza. She has also produced a series of YouTube videos, which reveal why she decided to educate the public on how counterfeit documents are actually "paper weapons."

Interestingly enough, her story has been covered extensively in the Spanish media. One reason for this might be that pending legislation will force employers to respond to no-match social security numbers. Because of this, legal Hispanic identities will likely be targeted for identity theft purposes. In the past, making up a name was sufficient to pass muster for employment purposes.

Suad and her husband have written a novel describing the full detail of their involvement in Operation Paper Tiger, which is currently only available from the Paper Weapons site. This book reveals what might be at stake if we continue to allow criminals to control our borders.

Included in the book are transcripts from actual wire-taps, many of which, tie into this most recent indictment.

They are currently writing another novel, which will detail Suad's personal story.

Here is my original post, I did on Operation Paper Tiger, which introduces the book:

Operation Paper Tiger - the true story, which reveals why our borders aren't very secure!

I highly recommend it to anyone, who is concerned about our Nation's security.

DOJ press release on the arrest of the Leija-Sanchez brothers, here.

Indictment from Eastern Court of Illinois, here.

ICE (Immigration and Customs Enforcement) has a slightly different version of this latest development in the story, here.



(Passport photo -- which are frequently used to make counterfeit documents -- of Pedro Castorena-Ibarra)


(Pedro Leija-Sanchez doing time for another crime under an assumed name)


(Julio Leija-Sanchez)

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ICE nails foreign gang members in 19 States

(Map of arrest locations courtesy of the ICE website)

Recently, I wrote about how counterfeit documents enable all kinds of undesirable people to blend into our communities. The point of the article was that these documents are used by more than hard working illegal immigrants seeking a better life for themselves and their families.

ICE issued a press release, which shows how widespread the problem of undesirable people blending into our communities has become.

From the press release:

A comprehensive national law enforcement operation led by federal agents and officers of the Department of Homeland Security's U.S. Immigration and Customs Enforcement (ICE) resulted in the arrest of 1,313 violent street gang members, associates and illegal aliens in 23 cities across 19 states.

Many of these undesirable individuals are involved in narcotics, human smuggling, financial crimes and of course, crimes of a more violent nature.

MS13, which has been written about a lot was one of the targets. Other gangs were targets, also:

In addition to MS-13, targeted gangs included Surenos-13, 18th Street Gang, Latin Kings, Bloods, Crips, and Vatos Locos to name a few.

While this reflect the most recent statistics from ICE, Operation Community Shield in an ongoing operation and when you take a look at the big picture, the statistics are even larger:

During the last 27 months, Operation Community Shield has resulted in the arrest of more than 7,655 members and associates of approximately 700 different gangs and the seizure of 287 firearms. Of those arrested, 107 were gang leaders. Many of those arrested under Operation Community Shield are prosecuted criminally and eventually removed from the United States. To date, 2,444 have been charged criminally, while 5,211 have been charged with immigration violations and processed for removal.

And it seems (finally), ICE is gathering support from local law enforcement, who have been forced to stay away from this activity, mostly because of political mandates. Here is a quote from a Sheriff in Florida:

Collier County, Fla., Sheriff Don Hunter notes that, "Criminal illegal immigrants are committing crimes and victimizing our residents and it is our responsibility to investigate their immigration status thoroughly while investigating their other crimes. We have the resources and tools to do that now. It is part of our mission."

ICE press release, here.

A few days earlier, an extensive ICE operation in California netted a lot more of these undesirable foreign types, including a large number of them eating up tax dollars in local jails. What is amazing -- if you take the time to read this press release, are specific references to arrests of individuals (not only in the jails) --who had previously been convicted of serious crimes.

In other words, when they were picked up, they were running around in our neighborhoods.

Previous press release, here.

Here is the post, I mentioned in the first paragraph, which describes how a lot of these people blend (sneak) into our society:

Operation Paper Tiger - the true story, which reveals why our borders aren't very secure!

America is a land of immigrants, and should continue to be considered that. After all, a lot of us believe that this diversity is what has made this the greatest nation in the world.

Please note that there are a lot of legal immigrants, who earn the right to become citizens, also. We shouldn't be handing over the fruits of our society to anyone, who can sneak over the border. It simply isn't fair to the people, who follow the law and prove they have what it takes to uphold the best interests of our society.

Some of them value the right to be called an American so much that they are serving our country in Iraq and Afghanistan as I write this. By the way, this is nothing new, many citizens of our country have earned their right to be called an American by serving it.

The problem is all the illegal activity, which goes hand-in-hand with illegal immigration, enables a lot of undesirable people to blend into our society. These people are not making our society a better, or a safer place to live.

If we allow this to continue, we risk losing our status as the greatest nation in the world.

We need to remember that "We the People" are what made this nation great.

In closing, I've seen the folks at ICE bashed quite a bit this year for trying to make an impact on a serious problem. There are some of us -- who appreciate the fact that they are doing their jobs, and by doing so -- trying to make this country a safer place to live.

In my opinion, these fine citizens deserve to be commended instead of being picked apart by certain factions in the media.

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Operation Paper Tiger - the true story, which reveals why our borders aren't very secure!

(Mohammed Atta of 9/11 infamy used counterfeit documents to get this legitimate Florida Driver's License. Counterfeit documents used to get legitimate ones are known as "feeder documents.")

Border security has become a major concern for all us ever since 9/11 revealed how vulnerable we really are.

Counterfeit documents paved the way for the terrorists in 9/11 to get into our country and cause the terrible event, which has forever changed the way we live.

In 2006, Suad Leija, who was raised as the stepdaughter of the founder of the largest counterfeit documents cartel in the United States began assisting the federal authorities in discovering how widespread this problem has become.

Suad has been able to identity members of the organization, who were previously unknown to law enforcement and provide historical data on the organization dating back to the late eighties.

The story begins with Suad meeting and marrying an American businessman, who runs businesses in Mexico and Central America.

Although, this part of the story still isn't completely clear, her husband turned out to be a little more than a person operating businesses in foreign lands.

Saud discovered her husband was trying to gather intelligence on suspected terrorists the cartel had supplied with counterfeit documents. The information he was interested in was contained in an extensive database of the cartel's business dealings.

Upon this discovery, Suad had to make a hard choice. The choice was between her family, or her husband and the United States.

After her husband described the terrorist threat -- comparing it to the violent drug gangs operating in Mexico, she chose to support him -- and ultimately the United States of America.

There is an excellent description of how this occurred in a La Raza article, which has been translated into English on the Paper Weapons site, here.

I found it interesting that La Raza was covering this story, given their political agenda. La Raza isn't the only Spanish media outlet covering the story, Saud has been featured on La Opinion and Univision, also. This would indicate to me that a lot of Hispanic Americans are worried about the criminal and possible terrorist implications that counterfeit documents pose to all of us.

Eventually, Suad and her husband fled to the United States and this is where Operation Paper Tiger begins.

Operation Paper Tiger documents the federal investigation into the widespread use of counterfeit documents in the United States, which are available to anyone, who can come up with the money to pay for them. It also reveals how these documents, which are produced in large numbers, aren't very expensive, either.

The book introduces a term (Paper Weapons), which might unfamiliar to the general public:

Counterfeit documents are Paper Weapons. The first weapon a terrorist needs to "FIT IN" in the United States is a document. Once he has this weapon and cover he can then go about his business of causing great harm to the United States and its citizens.

Here is a description of the cartel and their scope of operations:

The Castorena Leija-Sanchez crime organization is the major supplier of counterfeit documents/paper weapons in the United States. They are Mexico based and have been operating in the United States for 17 years. They are in every major American city and earn approx.300 million dollars per year. They also deal in narcotics and human smuggling. They are the new silent terrorist. Just about every illegal immigrant has purchased documents or knows some one who has from this organization. This book will go into the history, organization in Mexico and the United States, money laundering, illegal document manufacturing, human smuggling and murder.

Counterfeit documents are easily purchased in most major U.S. cities. Most of us have been led to believe that they are used by illegal immigrants, who are trying to make a better life for themselves.

While this is partially true, these documents are also used by criminals to commit a lot of different crimes and have been used by terrorists to blend into our society. The book is able to substantiate this with factual information from government sources, as well as, information revealed during Operation Paper Tiger.

If you were to consider the criminal activity alone, it would include narcotics, white slavery, and a host of financial crimes. More violent crimes result out of these so-called lesser crimes, also.

In fact, Suad once asked her grandfather if the family would sell documents to terrorists. His reply was chilling, “terrorism is an American problem, not a Mexican one.”

The novel includes actual transcripts of wiretaps, revealing a lot of criminal activity, including a pretty gruesome description of a murder within the cartel.

Also revealed are some amusing blunders made by members of the cartel and how the business of counterfeiting documents is set up much like any other successful organization.

It even shows how inmates in prison are serving their sentences under assumed identities.

Operation Paper Tiger shows how these documents are enabling benefits fraud and points out that most of the people, who immigrate here are poor and need assistance. In other words, it shows how the American taxpayer is picking up the cost for all this.

Benefits fraud is another growing problem. In 2006, Los Angeles was losing an estimated $1.5 billion dollars to benefits fraud.

Also revealed is how the recently defeated amnesty legislation wouldn't have done much to stop the flow of illegal immigrants across our Southern border. Quoting the book, itself:

Border Patrol agents have found fraudulent utility bills -- dating back more than five years, and thus proving residency under the Senate's bill --in the possession of those illegally crossing the border into the United States. Many of the immigrants with the documents had never visited or lived in the country, said one Border Patrol agent who requested anonymity.

This fact is substantiated in the wiretaps, which are available in the book.
Quite simply had this legislation passed, counterfeit documents would have made it easy for just about anyone to qualify as having been here for five, or more years.

Given this, it's possible the bill would have caused a rush to our borders by people seeking to get in on the amnesty provision.

If you are interested in knowing the truth about all the criminal activity, which is hidden in illegal immigration, Operation Paper Tiger is a must read.

Suad has paid a price for revealing this information. Her life has been threatened by the cartel and she is forced to remain in hiding. Since she is hiding with the borders of the United States, one has to assume this cartel has a pretty far reach.

Operation Paper Tiger can be bought directly on the Paper Weapons site, here.

Suad has been interviewed extensively by the mainstream media, including Lou Dobbs, Paula Zahn, Fox, CNN, Univision and La Opinion. Many of these stories are linked to the Paper Weapons site.

She has also produced her own set of YouTube videos, which can also be seen on the site.

I highly recommend reading this novel, which reveals Suad's and the government's efforts to keep us out of harm's way!


Pedro Leija-Sanchez serving time in prison under an assumed name.

Previous posts, where Suad is mentioned can be seen, here.

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Are illegal immigrants from Islamic nations slipping across our Southern border?

Not all the illegal immigrants slipping across our Southern border were born in Mexico. For years, a substantial amount of them hail from Central America and now there is evidence that Islamic drug traffickers are using the route, also.

Although many of the people making this crossing are looking for jobs, which will enable them to make a better life for themselves, the entire process is controlled by organized criminals.

While many of us have sympathy (empathy) for people trying to make a better life for themselves, it is often hard to distinguish between innocent workers and hardened criminals, or worse.

Sara Carter of the Washington Times is reporting some of our leaders, who are alarmed by this are calling for an investigation to study how bad the problem could be.

In Sara's own words:

Rep. Ed Royce, ranking Republican on the House Foreign Affairs terrorism and nonproliferation subcommittee, said the Drug Enforcement Administration (DEA) document — first reported yesterday by The Washington Times — highlights how vulnerable the nation is when fighting the war on terrorism.

"I'll be asking the terrorism subcommittee to hold a hearing on the DEA report's disturbing findings," said Mr. Royce of California. "A flood of name changes from Arabic to Hispanic and the reported linking of drug cartels on the Texas border with Middle East terrorism needs to be thoroughly investigated."

According to the DEA report, the people of interest in the report are versatile in their linguistic abilities:

These "persons of interest" speak Arabic, Spanish and Hebrew fluently, according to the document.

The report includes photographs of known Middle Easterners who "appear to be Hispanic; they are in fact, all Spanish-speaking Arabic drug traffickers supporting Middle East terrorism from their base of operations" in the southwestern United States, according to the DEA.

Birds of a feather tend to flock together and it is no secret that a lot of terrorist activity has been funded by a booming poppy trade in Afghanistan for over twenty years now.

Another Congressional leader, Congressman John Culberson (R) supports taking a deeper look at this, also.

According to the Department of Justice's National Drug Threat Assessment (2006), heroin production has declined in most source countries, with the exception of Afghanistan.

The report stipulates that no large increase of heroin has been noted in the United States, but it did speculate:

Any significant substitution of Southwest Asian heroin for South American heroin most likely would take several years to occur because Colombian and Dominican criminal groups control most white heroin drug markets, and as such, there are relatively few established Southwest Asian heroin transportation and distribution networks in the United States. Moreover, Colombian and Dominican criminal groups quite likely would strive to maintain control over domestic heroin distribution by purchasing Southwest Asian heroin from sources in Asia or Europe and distributing it in eastern drug markets.

Perhaps, the new report cited in the Times means that this process is already occurring and the groups involved in this deadly trade are creating an unholy alliance.

Terrorists need money to fund their causes, and one of the ways they make it is through illegal means, including drug trafficking.

Sara Carter also has written about Suad Leija, who is helping the federal authorities deal what will probably prove to be a major blow to a major counterfeit document cartel operating throughout the United States. Suad is the stepdaughter of one of the major players in the organization.

I first became interested in Suad's story after reading Sara's article.

Suad has been featured by Lou Dobbs, Fox News, Paula Zahn and several other news organizations.

One of the reasons, Saud decided to assist the authorities in going after her family was a chilling remark her grandfather made when she asked him if the "family" would sell documents to terrorists. His reply was "terrorism is an American problem not Mexican."

Suad is now writing a book about her experiences and is offering a personally autographed copy to anyone, who drops her an e-mail before the release date and then purchases the book directly from her Paper Weapons site.

The e-mail address can be had by clicking on the contact link on the left side of the main page. The book will help support the sacrifices, she has made assisting the authorities in identifying a threat to the citizens of the United States.

Washington Times story, here.

Department of Justice's 2006 National Drug Threat Assessment, here.

If you would like to write Congressman Ed Royce to show support, or make a comment on his call for an investigation, his website is here.

Another person supporting this investigation, Congressman John Culberson's site can be reached by linking, here.

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Will stricter enforcement cause more illegal immigrants to assume real people's social security numbers?

Will a crackdown on illegal immigration mean that 13 - 20 million people will need to use legitimate social security numbers to work? In response to increasing concerns about illegal immigration, the Department of Homeland Security provides what is known as the Basic Pilot Program (web based), which verifies the validity of a social security number.

The problem is that it only verifies, whether or not the number is good (matches). It doesn't show if the number is stolen, or even if the name matches the number.

Please note that this program is a great tool, but it isn't the only tool that should be used when verifying a person's identity. Even DHS is quick to point this out in the article I cite further down in this post.

You would think it would be in an employer's best interests to do a thorough background check. Employee fraud and abuse can cost them a lot of their hard-earned profits!

If certain employers use this tool and this tool alone will 13-20 million immigrants use 13-20 million legal citizens' social security numbers to obtain employment?

The LA Times did a story about a LA County financial crimes detective, who had his own identity stolen by illegal immigrant(s). The investigation of financial crimes normally involves investigating a lot of identity theft.

The victim in this case, Detective Flores eventually confirmed that at least one of the people using his identity had been picked up in the Swift raids, which occurred late last year.

Anna Gorman (LA Times) wrote:

Under pressure from federal authorities to verify their workers' legal status, more employers are checking the validity of Social Security numbers, and that has caused many illegal immigrants to use stolen rather than made-up numbers to get jobs, immigration officials said.

"It used to be that we would only see people come in with purely bogus documents," said Julie L. Myers, assistant secretary for U.S. Immigration and Customs Enforcement. "More and more we are seeing real people, real victims."

Although the agency does not break out identity theft statistics, Myers said, "we are definitely seeing a trend."

To better protect their businesses, more employers are using the Department of Homeland Security's Basic Pilot program, which enables them to check the validity of Social Security numbers online. But Basic Pilot doesn't detect identity theft. As long as the name and Social Security number are legitimate, the online system will indicate the person using them is authorized to work.

Word of this weakness in the system has spread quickly among illegal immigrants and the document theft rings that cater to them. Thieves will dig through trash cans or scan the Internet looking for Social Security numbers. Sometimes, criminals or homeless people are willing to sell their identity documents, Myers said.

There also have been cases in which employers provide their workers with stolen numbers, Homeland Security authorities said.

Detective Flores didn't lose any money, but was threatened by collection agencies and the IRS. Like the many other victims of identity theft, he probably went through a lot of pain and suffering and spent countless hours clearing his name.

Trying to do the right thing, Detective Flores tried to have his social security number changed, but his request was refused.

If employers aren't checking very carefully and only using the Department of Homeland Security's Basic Pilot System, the background checks aren't likely to be very effective.

The trick would be to run Social Security Numbers verifying some minor details, which might include:

• Multiple names coming back to the same SSN (common).
• Geographical areas that don't match the stated history on the employment application.
• Discrepancies in ages, or where the social security number was issued.

This can be accomplished pretty easily by any employer. Even if an employer doesn't run a credit check, where discrepancies would normally surface, social security number traces are available from any of the major credit bureaus.

A social trace shows the name and address information, without the financial track record of the person.

There are privacy laws to protect this information -- but just about any legitimate employer can access this information, if they really want to -- and do so, legally. In most cases, a release form signed by the applicant is all that is needed. It isn't very hard to get someone to sign a release form, if they want a job.

Data brokers sell services to businesses, where social security numbers are easily run, also. If someone knows how to read these reports (they aren't difficult), it normally isn't very hard to find the real person (identity theft victim), when questionable activity is present. They are normally listed right on the report.

Besides performing background checks, social security traces are used to find people by law enforcement, collectors and private investigators. Financial crimes investigators (like Detective Flores) use them to find the people being impersonated by identity thieves, frequently.

A simple Google search on social security traces reveals how many vendors offer this service, here.

If illegal immigrants were using totally bogus social security numbers before, it isn't going to be hard for them to get real ones. This information is sold all over the place, including the Internet.

Organized criminal groups market both the information and documents on an economy of scale, which assures that their services are available to just about anyone for a nominal charge.

The bottom line is that it isn't hard for an employer to do an effective background, especially given the tools provided in the information age. In fact, a lot (most) of them already do this. As I stated earlier, employee fraud and abuse can be pretty detrimental to a company's bottom line.

As long as the jobs are available, illegal immigration will continue to be a big problem. If labor is needed and people want to realize the American dream, the people seeking the dream and those providing the jobs, need to accomplish their goals in a legal manner.

It isn't fair for them to accomplish their needs and goals at the expense (pain and suffering) of other people, who are following the law.

LA Times article, here.

Lou Dobbs discusses a holistic (common sense) approach to this problem on his television show and website. He also provides links to where all of us can let our politicians know how we feel about this problem.

Recently, the voice of the nation let them know exactly how we feel about this matter.

In the end, illegal immigrants might be the least of our worries. Activity like this shows how easily terrorists and criminals can operate inside our borders, also. This is probably the best argument (I know of) for why we can no longer afford to let criminals control our borders.

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ID Theft Victim puts her Evil Twin back on probation in San Francisco

San Francisco's Hall of Justice

Identity theft victims often get pretty frustrated after being accused of being deadbeats by collection agencies, or even being charged with a crime they didn't commit.

Trying to seek justice seems to do little good, either. Law enforcement rarely has the resources to investigate individual cases, unless an identity thief is caught "red handed."

Mike Weiss (San Francisco Chronicle) did an interesting article about a victim (Karen Lodrick), who caught her evil twin, Maria Nelson.From the Chronicle story:

The only other time Lodrick, a 41-year-old creative consultant, had seen that particular coat was on a security camera photo that her bank, Wells Fargo, showed her of the woman who had stolen her identity. The photo was taken as the thief was looting Lodrick's checking account.

Now, here was the coat again. This woman -- a big woman, about 5 feet 10, maybe 150 pounds -- had to be the person who had put her through six months of hell and cost her $30,000 in lost business as she tried to untangle the never-ending mess with banks and credit agencies.

During the pursuit -- Karen confronted Nelson, who had noticed she was being followed -- asking her to wait until the Police arrived. Nelson informed her she couldn't wait for the Police because she was on probation.This might be one of the more honest statements Nelson has made in the recent past.

In fact, Nelson has eight previous convictions for fraud, and is on probation for one of them! She also had a warrant for her arrest in Yolo County, which is about 2 hours North of San Francisco.

Shortly after this confrontation, Nelson dumped a wallet in a trash can. Here is what it had inside:

In front of West Coast Growers, she dropped a wallet into an abandoned shopping cart. Lodrick, still after her, picked up the wallet -- also Prada -- and found an entire set of identification, including credit cards, a Social Security card and a debit card all in the name of Karen Lodrick.

Later, when she returned to the bank that had been her original destination that morning and took possession of the lost driver's license, it was a perfect forgery -- with a hologram and a California seal -- and it had Lodrick's name but Nelson's photo and physical characteristics.

Because of Karen's individual efforts, the San Francisco Police responded, and Nelson was apprehended.

Eventually, she was convicted, but this probably did little to give Karen satisfaction for everything she went through.

At her sentencing, Nelson showed little remorse, smirking and waving at Karen. And why not, despite her long criminal record, Nelson received 44 days (time already served) and yet (another) three-year probation.

Karen was able to make a statement at Nelson's sentencing, where she said:

I can't believe it. I went through six months of hell, and she's going to get probation? She was on probation when she victimized me. Obviously, probation's not helping.

Chronicle story with more detail, here.

It's pretty obvious why Nelson was smirking, committing identity theft is relatively easy, the consequences are pretty lacking, and it pay's well.

So far as the ease common criminals can obtain all sort of counterfeit identification documents, I have a lot of information how bad a problem this is, here.

The abuse and lack of controls on certain technologies have made counterfeiting pretty easy to accomplish. Likewise, the ease in with credit is issued, makes committing identity theft a pretty lucrative venture.

I did a post about how easy it is for criminals to use someone else's credit, here.

Where do you think the millions of illegal immigrants get the necessary documentation to obtain employment?

Of course, illegal immigrants aren't the only people using these documents.

Counterfeit documents are distributed by organized crime gangs, who sell them to ANYONE with the money to buy them.

As long as the consequences for identity theft remain minimal, we are going to see a lot of good people like Karen, go through hell.

When are laws going to start protecting the people, paying all the taxes to enforce them?

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Medicare Fraud arrests might expose ties to medical identity theft and organized crime

Ever wonder why our social services are going bankrupt? Here is a story, from a FBI press release, showing how $101 million was paid out in fraudulent health care claims.

Reading the release also made me wonder, where all the names to claim services, came from?

From the FBI release:

On May 22, 2007, a Miami federal grand jury returned a 46-count indictment against eight defendants in United States v. Mabel Diaz, et al., No. 07-20398-Cr-Ungaro. The indictment charges Mabel and Banner Diaz, wife and husband, with operating All-Med Billing Corp. (All-Med), a Miami medical billing company, and executing a scheme to submit tens of millions of dollars in fraudulent claims to Medicare from 1998 to 2004 for reimbursement for durable medical equipment (DME) and related services. The indictment alleges that All-Med submitted approximately $80 million in false claims on behalf of 29 DME companies. The claims were allegedly fraudulent in that the equipment had not been ordered by a physician and/or had never been delivered to a Medicare patient. As a result of the submission of the fraudulent claims, Medicare paid the DME companies approximately $56 million. The indictment also seeks forfeiture of the fraud proceeds and here substitute assets, including real estate of the Diazes. The Diazes were additionally charged with conspiracy to launder the proceeds of the alleged All-Med billing fraud scheme. Also charged in the All-Med billing fraud scheme was All-Med employee Suleidy Cano.

If you read down further on the release, the names of all the people being charged are Hispanic.

While I suppose, not all criminals with Hispanic names, cater to illegal aliens, a large number of them seem to. Despite this, there seems to be no information, whether or not; this activity had any ties to illegal immigrant activity, or if people’s identities were stolen to facilitate these crimes.

There is also very little information as to exactly how these crimes were committed. It would make sense that they would have to use names and other personal information to claim the “services,” paid for with taxpayer money.

Digging a little deeper, I found another press release dated the day before from the FBI describing a similar health care fraud scheme – where the employees involved were described as illegal aliens.

This case occurred on the other side of the country (Southern California). Please note that all the names listed on this press release were of Hispanic origin, also.

In the Los Angeles case, the taxpayers were only ripped off for a little more than $9 million. Small potatoes compared the amount in the Miami case. Of course, I wonder how much more of this is going on, where no one has been caught?

Some of these illegal aliens were posing as nurses, which could be pretty scary, if they were dispensing any real medical services. Even scarier, is the very real harm bogus information in a medical record can cause. If you think about it, bogus information in a medical history could be life-threatening.

The World Privacy Forum has studied this subject (in detail) and stated in a 56 page report:

This report discusses the issue of medical identity theft and outlines how it can cause great harm to its victims. The report finds that one of the significant harms a victim may experience is a false entry made to his or her medical history due to the activities of an imposter. Erroneous information in health files can lead and has led to a number of negative consequences for victims. Victims do not have the same recourse and help for recovery from medical identity theft as do victims of financial identity theft. This report analyzes statistics in health care and identity theft, and estimates that approximately a quarter million to a half million individuals have been victims of this crime.

The report also states:

Medical identity theft is deeply entrenched in the health cares system. Identity theft may be done by criminals, doctors, nurses, hospital employees, and increasingly, by highly sophisticated crime rings.

If the FBI is issuing two press releases about this activity, one could deduct that they might have been investigating some of these “highly sophisticated crime rings.”

Not sure if the impending immigration bill is the reason some of the surrounding issues aren't being talked about, but a lot of criminal activity is tied to the trade in human flesh.

On a personal note, I want to see honest immigrants find a better life, and continue the American tradition of adding value to the most diverse society in the world. The problem is that a lot of organized criminal groups have profited in the illegal immigrant trade for years, and no one has come up with a way to weed out this hidden activity, very effectively (my opinion).

Of note, the honest and hard working illegal immigrants are often victimized in this process, which is largely controlled by organized crime.

With millions of identities compromised, it isn’t going to be easy. Assuming someone else's identity has become too easy, especially for those with criminal connections.

FBI press release on Florida arrests, here.

FBI press release on Southern California arrests, here.

World Privacy Forum report on medical identity theft, here.

QuackWatch has a good site, which covers this type of fraud in great detail, here.

In case you wanted to learn more, the U.S. District Court of Southern Florida is happy to sell you the information, here.

The Virginia WatchDog goes after government sites that post too much personal information. A lot of great information about this subject, and examples of effective action taken by the Watchdog herself, BJ Ostergren can be found, here.

BJ and I had about an hour long conversation recently, where she demonstrated how easy personal information can be data-mined from these sites. I found BJ to be a fascinating person, but more of that, later.

This site and their important work will be the subject of some future posts.

My previous rants about organized crime controlling the traffic in human flesh can be read, here.

Organized groups with Hispanic names aren't the only immigrant groups ripping off the taxpayers. Here is a recent post, I did about another immigrant group that seems to focus on stealing public funds:

Eurasian organized crime loots public coffers

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Is Julie Amero (in reality) another victim of Internet crime?

Internet crime is a growing problem. Every week, we seem to read of large scale data breaches, and spam is filling up our inboxes, despite the spam filters designed to stop it.

The spam getting past these filters is often riddled with deceptive lures (links) to all sorts of porn sites. In turn, these sites often infect machines that aren't properly protected with adware, spyware, malware and even crimeware.

So far as properly protecting our machines, this can be a chore, also. It requires frequent updates, and new exploits are discovered all the time.

Sometimes even legitimate sites are hacked and people get infected just by surfing, or visiting (what they think) is a trusted site.

Criminals of all sorts, including those of an organized nature are getting involved in Internet crime. In fact, many believe the problem is growing because very few get caught, and even if they do, very little happens to them.

I was amazed when I got an e-mail from Alex Eckelberry (CEO Sunbelt Software) that a substitute teacher (Julie Amero) had been convicted for some porn that had shown up on a classroom computer.

A jury has already found her guilty and she could face up to 40 years in prison. Even worse, it appears the stress of the trial may have caused her to have a miscarriage.

Is her conviction a miscarriage of justice? Many computer experts (including Alex) seem to think so.

Alex writes a very convincing argument, where he states:

When I first read of the case, my reaction was how illogical it all sounded: A middle-aged, substitute female teacher accessing porn on a classroom computer, in front of her students on one particular day? It made no sense.

He's right, it doesn't make sense.

An article from the Norwich Bulletin stated that:

Computer expert W. Herbert Horner, testifying in Amero's defense, said he found spyware on the computer and an innocent hair styling Web site "that led to this pornographic loop that was out of control."

"If you try to get out of it, you're trapped, according to Horner."

Anyone, who has surfed the Internet knows there are a lot of malicious sites designed to lure people to click on them, using seemingly innocent lures.

She was also convicted on testimony that she must have had to physically click on the sites in question. According to Alex and other computer security experts, the pop-ups from these sites leave the same imprint as if they had been physically clicked on.

Alex wrote in the Norwich Bulletin:

The computer was also found to be riddled with spyware -- programs that generate popups and degrade system stability.

Spyware may or may not have played a direct part in this incident, but the fact it was on the system creates additional damning evidence of the state of this computer system. What is extraordinary is the prosecution admitted there was no search made for spyware -- an incredible blunder akin to not checking for fingerprints at a crime scene.

Alex also states that this was an old system, without adequate protection, despite the fact that federal law mandates that it should have been in place.

Julie, herself claims the website in question was accessed by students when she went to the restroom. When she noticed it, no matter what she did, more pop-ups would surface.

More on Herb Horner's analysis (courtesy of the Sunbelt blog), here.

In a criminal case, the standard is that a person should be found innocent if there is reasonable doubt. After reading about this case, it makes sense to me, that we have a lot of reasonable doubt that Julie is guilty.

At best, the investigation used to convict her seems to have been poorly researched, and therefore, flawed.

Porn is a big component of Internet crime, which according to a WebMD survey reaches a lot of children. This research was conducted by interviewing children, themselves.

Some of the children interviewed were the same age as the ones in Julie's class that day.

Survey, here.

So far as a connection to real (organized) crime, porn was allegedly one of the Gambino crime families biggest earners ($350 million).

Besides being unjust, going after Julie Amero, is a big waste of resources (taxpayer dollars) that could be put to better use.

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Paper weapons (counterfeit documents) enable more serious crimes than illegal immigration and identity theft

Suad Leija

Counterfeit (forged) documents are used by illegal immigrants, financial crime artists (fraudsters) and even terrorists. 9/11 proved this a few years back - when it was discovered that several of the hijackers (terrorists) used forged documents to obtain legitimate state-issued driver's licenses.

And this can't be the only time terrorists have used counterfeit documents - jihadist training materials teach their disciples to use these documents to blend into our society, as well as to pay for their expenses. Al Qaeda's training manual (courtesy of Frontline) illustrates this, here.

Several months ago, I saw one of the first stories about Suad Leija and wrote about her. Since then I've mentioned her in a couple of posts. This led to her husband making contact with me, and eventually speaking to Suad, herself.

Suad Leija is trying to educate the public that counterfeit documents pose a serious problem to our safety and national security. And who would know better than Suad, who was raised around one of the biggest organized crime groups providing counterfeit documents to anyone willing to pay for them.

Suad is the step-daughter of Manuel Leija Sanchez, described as the "boss" of the Chicago cell of the Castorena Leija-Sanchez crime family. The ICE press release about his recent arrest can be seen, here.

Mr. Leija-Sanchez has been arrested in the past for selling counterfeit documents (several times), narcotics and assault. He is currently serving a one-year sentence in Illinois for this latest arrest. More details about how he ended up only getting one-year sentence are on Suad's YouTube videos, which can be seen on her Paper Weapons site (highly recommended and linked to further down in this post).

I asked Suad about her bodyguards - mentioned in other articles about her - reported as being Polish. She told me that they were represented to her as Polish, but didn't really know. Interestingly enough, they taught Suad to speak a little Russian.

This made me reflect on speculation that Eastern European organized crime is involved in all the major data-breaches involving the theft of personal and financial data. They would need resources to turn their information into counterfeit devices.

Eastern European organized crime is (also) known to be involved in human smuggling and there are illegal immigrants of Eastern European origin all over the world. Sometimes, we need to remember that illegal immigrants aren't only from Mexico.

Law enforcement officials from Canada and Great Britain have voiced their concerns in public about connections between organized crime and terrorism in the recent past.

Of course, the FBI has been saying the same thing for awhile (since 2002), here.

I asked Suad how many people she thought used counterfeit identification to obtain legitimate documents and she told me that was why items, such as utility bills are popular. Suad describes these items as "feeder documents," which are then used to obtain more legitimate identification.

As long as feeder documents are acceptable to prove legal status, putting security features on legitimate documents will do little to stop the problem. This is especially true, when some of the documents used as feeder documents might come from anywhere in the world.

Hazardous material licenses are even forged - allowing hazardous materials to be illegally transported. Besides the possibility of a freak accident occurring (if used in an intentional manner) a lot of innocent people could be hurt, or killed because of a forged hazmat license.

Counterfeit documents can be used to cross borders, board airplanes and it seems (more recently) obtain access to sensitive government facilities.

ICE recently arrested quite a few illegal aliens working at some of these secure government facilities.

Suad is currently in hiding (under the protection of her husband) - there are reports that her step-father has threatened her life after he is released. Manuel Leija-Sanchez and Pedro Castorena are both in custody - but there is no telling for how long - and their organizations still appear to in business.

ICE press release on Pedro Castorena's arrest, here.

According to Suad's website Paper Weapons:

The Castorena Leija-Sanchez crime organization is the major supplier of counterfeit documents/paper weapons in the United States. They are based in Mexico and have been operating in the United States for 17 years. They are in every major US city and earn approximately 300 million dollars per year.

Paper Weapons site, here.

The site has a chilling flash presentation showing pictures of 9-11 terrorists and members of the Castorena Leija-Sanchez family on fake counterfeit identification.

Suad's story has been covered by the mainstream media (Lou Dobbs, Paula Zahn, CBS, Univision), here.

Her personal story (in her own words) can also be seen in a series of YouTube presentations, along with the stories from the mainstream media.

Some other items were pointed out to me as a result of this conversation. There are 15 million illegal immigrants in the country today, and the reason they are here is to make money. If the jobs weren't readily available (and they seem to be), the problem wouldn't be anywhere as big as it is now.

The motivation of most of these people is to escape poverty - and believe it or not - people on public assistance in the United States live like "kings" in comparison to how they live in their own countries.

Then there is the matter of how any program could be administered. Embassies across the world are already overwhelmed with visa requests and how would these people be effectively screened?

It was also pointed out to me that if a guest worker program were implemented, it probably wouldn't be long before the required identification to be a guest worker was being counterfeited, also.

Documents being counterfeited is nothing new (counterfeiting has been around for centuries). But with recent advances in technology, it's becoming pretty easy to do. The quality of the documents is getting better and security features are being compromised quicker than ever before.

The problem of counterfeit documents goes far beyond poor people doing menial labor (jobs that no one seems to really want). In fact, they are enabling much more serious activity, and this is where we need to direct our focus.

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