Passport Card Fraud

With the advancements in technology through the recent years, scammers are increasingly discovering new ways to wreak havoc on unsuspecting consumers.  Identity theft has taken on new forms, with Passport Card Fraud emerging as a serious and mostly overlooked threat.  Everyone knows what a Passport is, but many people are like I was and until recently, had never heard of a passport card.  Unlike a traditional passport book, the cards are wallet-sized documents issued by the United States Department of State.  Just as with driver’s licenses, passport cards can be counterfeited and exploited by fraudsters for a range of illegal activities.  Let’s take a few minutes to learn about passport cards; what they are, how they are being used in fraud, and things you can do to keep yours safe.

The U.S. passport card is a REAL ID compliant identity and travel document issued by the U.S. Department of State for use by American citizens.  The cards can be used for proof of identity, citizenship, domestic (not international) air travel, and for border crossings into such countries as Canada, Mexico, the Caribbean, and Bermuda.  These cards began being issued in July 2008 as a convenient alternative to the passport book for people who travel frequently by land or sea to those destinations listed above.  The cards contain a photograph, some biographic information, and a chip embedded with a unique identification number that links to the U.S. government’s secure database.  Criminals are counterfeiting U.S. passport cards because they are a less familiar form of ID which decreases the likelihood of detection by a financial institution.  Also, according to FINCEN, the cards are cheaper to counterfeit when compared to a regular passport book.  The U.S. Department of State’s Diplomatic Security Service (DSS) has stated that fraudsters are making, selling, and using counterfeit passport cards to impersonate and defraud consumer bank accounts at various financial institutions.

Now that we know what a passport card is, let’s take a look at how they are being used for fraudulent purposes:

• Criminals steal a potential victim’s personal identifiable information from various sources including the mail and dark web to create a fake passport card.
• They will enlist someone known as a “money mule” to use the fraudulent ID to try and impersonate the victim at a branch of their bank.  If they know the certain branch a consumer uses, the fraudsters will try to avoid that one and go to another where the employees may not be so quick to recognize the victim.
• If the money mule’s identity is questioned, they will present another form of ID to make themselves seem more believable.  They may have a credit card with the victim’s name on it as proof of identity.  Most of the time, the credit cards are fraudulent as well.  Some may not even be tied to an account anywhere, just a bogus card with a fake number.  We know that criminals like this usually do not work alone.  So, while the money mule is inside the financial institution trying to gain access, the co-conspirator is in a vehicle outside waiting for the mule to return.  There have even been instances where the person outside is feeding information to the mule through an earpiece.
• If the fraudster is successful at convincing the bank employee they are the victim, they have access to all the victim’s money.  They may make a withdrawal, cash a check, or initiate a wire usually just under CTR reporting amounts.  In some cases, fraudsters have been able to open accounts using the victim’s information and then transfer from the existing account to the fake one.  Other times they will withdraw all the funds and/or close the account.

How can you keep your passport card safe from fraud?

• Store the card in a secure, RFID (Radio Frequency Identification) blocking holder or wallet.
• Never post images of your card on any social media.
• Monitor your credit regularly.
• If your card is lost or stolen, report it immediately.
• Always be cautious when providing personal information, especially online.
• Be aware of websites or individuals offering passport services for a fee, these may be scams.
• Learn about the security features on your passport card so you can identify possible counterfeits.

Passport cards may offer a more convenient option for travel and quick identification, however, their growing popularity has made them a target for fraud.  By staying aware, doing your part to keep the card secure, and taking quick action in case of theft, you can help to protect your identity and maintain the integrity of official U.S. documents.  Remember, as technology grows, we must continue to increase our defenses against potential fraudsters in order to help keep ourselves and our loved ones safe.