Forgery, Phone Tap = Bad Day

[Polishrifleman]

Wow, how resourceful.  I am waiting to learn more on the phone tap.  That really takes things to a new level.  I wonder if it was a VOIP thing, with the guy being older I have to think it was traditional lines.  I've seen it in the movies, but how hard is it to tap a phone line?

SEATTLE POST-INTELLIGENCER
http://seattlepi.nwsource.com/local/346966_wirefraud11.html

Identity thief takes $665,000 from home credit line
Couple's phone is tapped to intercept credit union's call to verify transfer

Last updated January 10, 2008 10:24 p.m. PT

By LEVI PULKKINEN
P-I REPORTER

An identity thief appears to have stolen $665,000 from a Madrona couple's bank account through a complicated scheme involving forgery and a phone tap.

According to Seattle police reports, the couple first learned that the money had disappeared from their account Friday, when a representative from Woodstone Credit Union phoned to say $450,000 had been transferred from their home equity credit line. Another credit union called shortly afterward to say the amount was actually $215,000 higher.

The credit union launched an investigation after the theft was discovered, as did the Secret Service.

One of the victims, a 66-year-old man, told Seattle officers that the money had been transferred to a New York bank, then out of the country.

Investigators told him the thief had mimicked his signature, then tapped his phone line to intercept the credit union's call when representatives phoned to verify that the transfer was authorized.

A Seattle police spokesman said the agency is reviewing the case, but had not yet assigned a detective to it.



--------------------------------------------------------------------------------

P-I reporter Levi Pulkkinen can be reached at 206-448-8348 or levipulkkinen@seattlepi.com.

? 1998-2008 Seattle Post-Intelligencer

[RevDisk]

Wow, how resourceful.  I am waiting to learn more on the phone tap.  That really takes things to a new level.  I wonder if it was a VOIP thing, with the guy being older I have to think it was traditional lines.  I've seen it in the movies, but how hard is it to tap a phone line

Remotely, not easy unless you have a guy on the inside.  Either someone working for the telco or a LEO agency.

Locally, quite easy.  If you live in a normal house, somewhere (often outside), you have a biscuit box (beige) that houses the wire going out to the world.  You unplug the land line, plug in a gizmo not unlike a cordless telephone that normally allows calls through but allows you to cut off the home owner's phones remotely, plug the landline back in.  When the call you wish comes in, you answer the phone.  Then go unplug your gizmo and take it with you.  Smarter criminals wear telco branded clothing while doing this.

[Paddy]

Apparently not all criminals are idiots.

[Antibubba]

So does the bank eat it as one of the hazards of doing business, or is the old couple SOL?

[RevDisk]

So does the bank eat it as one of the hazards of doing business, or is the old couple SOL?

I think it'll be probably (but not definitely) covered by the bank's private insurance company.  FDIC generally does not cover theft or fraud at the institution.  On other non-fraud circumstances, they'd be covered by FDIC up to $100k or $200k depending on the joint account.