Today’s digital age has allowed people to be more interconnected, share more information, and stretched our capabilities for innovation in ways dystopian literature couldn’t even have imagined. You think Aldous Huxley could have predicted the advent of Yelping the best tasting empanadas within a ten mile radius? (Okay fine he probably did). Well, as increasingly dependent we’ve been when it comes to our relationship with various technologies, devices, clouds, and screens, a couple cyber hacker stories this week have caused many to second guess the information that’s exchanged over the once thought even playing field of internet and data storage.
This past Sunday, Hollywood and celebrity culture was rocked with a photo scandal that is now considered the biggest celebrity hacking incident of all-time. Over 100 actresses, including Jennifer Lawrence and Kirsten Dunst have been reported having personal photos and information made public on sites such as 4Chan, known to some as the “the darkest corner of the web“. One such actress, Mary Elizabeth Winstead was quoted as saying the private pictures she took with her husband were “deleted from her account years ago”. She also brought up the question of whether anything can truly be scrubbed from the cloud or internet.
Even if your the biggest star on the planet, it doesn’t mean you are any less venerable when it comes to cyber crimes. (Source: Wikipedia Commons)
For those of us who aren’t featured on the covers of glossy magazines or have people dressing like them for Halloween, it doesn’t seem to impact us. We may just chalk this up to celebrity culture and the continued lack of privacy this digital age and news cycle has allowed them to have. However, another recent cyber crime can be much more concerning for “normal” folks.
Home Depot may be the latest large-cap company to “pull a Target” or become victim of credit card breach. In the last week, thousands of credit cards have cropped up on “carding sites”. This is thought to be the work of eastern European hackers, the same group that infiltrated Target’s security system last year.
Cyber hackers may have had credit card access for months. Source: AP Photo/Sue Ogrocki
Both stories directly impact different target markets, but offer a glimpse into how easy it is in this age to bring down any person or corporation with just a few clicks.
These hackers could be called anti-investigators for their deductive approach in getting the information they desire, though for obvious nefarious and highly illegal purposes.
(Source: Experience Project)
Getting access to such information is much more simplistic then one may presume. In the case of card breaches, it usually consists of a basic malware programs that store and forward information, according to private investigation experts.
In terms of how such programs were attached to the systems in the first place, the celebrity scandal can provide one such example of how this occurs. Investigators believe hackers access to information was based on methodically deducing the actresses passcode information, and not a complete infiltration of ICloud.
Private investigators offer solutions in both scenarios, including two-step passwords, making unique, “back-up” answers, and using chip cards without the magnetic strip.
Fraud investigators are attempting to catch individuals by gathering facts and working backwards. Though not easy to find these virtual criminals, whether your a corporation, an A-list celebrity or someone with a stolen identity, private investigators will use continuously evolving and innovative methods in catching these criminals.
The court has made a decision, but the most difficult part of a small claims case is far from over. Even if the court rules in a client’s favor, there is no guaranteeing that the judgment will be paid. Typically the court’s participation is done once the case is over and the creditor is on their own to retrieve their money. Attorneys have the option to hire a licensed private investigator to perform an asset search if their client is at risk of not receiving their full judgment.
Why is an Asset Search Necessary?
Although it’s beneficial to conduct pre-litigation investigation, this does not always happen. Post-litigation investigations can determine if the debtor will be able to pay up. There are several reasons as to why a creditor will not receive payment. In some cases the debtor might not have the funds available at the time or are filing for bankruptcy. However, some people will go great lengths to avoid paying in full. They may hide an asset in its entirety or be dishonest about the value of their property. Court-ordered examinations on assets often do not go deep enough. Typically, an exam will try to uncover information about things such as:
Vehicles
Employment Wages
Property
Bank Accounts
While not everyone will have all of these items, most people will have one or two. A bank account and employment wages are the most common. Since most people have some form of employment, wage garnishment is a popular method of collection. However, there are restrictions on how much one can take out based on income and state laws. Some states also have laws protecting certain property owned by debtors. Vehicles, private property, and personal items such as jewelry are most often protected. If a debtor is able to get an exemption for these types of assets, it can be even harder to obtain a judgment. As a result, it is essential that every possible asset is investigated.
Why Hire a Private Investigator?
As mentioned earlier, the court does not get too involved once a judgment has been made. Even though the creditor is legally entitled to their money, many will never see it. According to one judgment recovery provider, around 80% of judgments go unclaimed. Another important factor is time. As time passes, the likelihood of a creditor receiving their judgment decreases. In most states, the process of receiving a judgment can last up to ten years.
A private investigator will perform an in-depth search of assets that a court will not. Some may think that information on employment and bank accounts can simply be discovered online, but this is not true. In these situations, it’s important that a thorough due diligence investigation takes place by legal means.
Types of Services that Can Assist Attorneys in Due Diligence Asset Searches
Licensed private investigators can provide valuable assistance to attorneys and their clients. These services include locating the following:
Current addresses, telephone numbers, relatives, and associates of subject for service.
Residential and business property, deed and mortgage information, vehicles, boats, bank accounts, mobile homes, and aircraft.
Employers, type of positions held, and information on location and dates of employment.
Federal and state tax liens or judgments, bankruptcy, and UCC filings.
The recovery of these items does not always occur, and even if it does, it can take several years. In these situations, a qualified private investigator has the means and experience to legally conduct a thorough asset search and assist a client in receiving their judgment.
Currently, the corporations that have the most information about their rival companies and organizations are the ones that have a financial and competitive edge over their competition. When this data is collected legally, it is known as competitive intelligence. However, many big businesses are opting for more unethical and unlawful ways of gathering information, which is when competitive intelligence turns into corporate espionage. According to a recent report written by Gary Ruskin of Essential Information, the amount of corporate spying that occurs today has escalated in the past decade. This can be attributed several factors, including the growing numbers of nonprofit organizations that threaten corporations. Ruskin’s report includes narratives of big businesses such as Walmart, Kraft, Dow Chemical, Bank of America, McDonald’s, and several more adopting illegal techniques to gather intelligence about nonprofit organizations.
How is Corporate Espionage Executed?
In the past, companies would hire private detectives to collect competitive intelligence. Many of these investigators would adhere to a strict moral and ethical code that was quickly tossed out as corporations continued to grow. Now, businesses are creating their own personal team of investigators. The past employers of these staff members include government intelligence agencies such as the Central Intelligence Agency (CIA), the National Security Agency (NSA), the FBI, and many other law enforcement agencies. In order to gather information, the techniques employed by these ex-agents include:
Physical Surveillance
Creating False Identities
Theft of Confidential Information
Exposing False Documents
Wiretaps and Hacking
D-lines (digging through trash)
Breaking and Entering
Ruskin’s report contained witness accounts of these unethical practices taking place, as well as several emails sent between the agents themselves. One witness reported having to dress in all black as her boyfriend, an investigator, stole documents during a D-line against Greenpeace. Corporations also hired ex-police officers and had them use their badges as a way to infiltrate these institutions. Some investigators even created a false identity and became a member of a nonprofit organization, giving them access to company records. Financial statements, social security numbers, and physical items like laptops were all stolen from organizations by these corporate spies.
Why Target Nonprofits?
According to Ruskin, “many different types of nonprofits have been targeted with espionage, including environmental, anti-war, public interest, consumer, food safety, pesticide reform, nursing-home reform, gun control, social justice, animal rights and arms control groups.” As these organizations gain more power, big businesses begin to feel threatened. Nonprofit organizations seek to protect consumers from corporations. A company that is conducting unethical practices can risk losing billions of dollars as well as their reputation if consumers find out. When a nonprofit attempts to expose such practices, hiring a team of investigators can cost less than a potential leak. Ruskin’s report included several examples of these corporations acting out against threats. During the 1990s, Greenpeace rain a campaign concerning the addition of chlorine in plastic and paper production. Greenpeace criticized Dow Chemical for their use of chlorine, who in turn hired investigators to infiltrate Greenpeace’s headquarters by any means necessary. According to Ruskin, companies not only searched for information, but made it up as well. WikiLeaks editor-in-chief Julian Assange sought to expose a scandal within Bank of America. In order to combat this attack, Bank of America hired investigators who attempted to end WikiLeaks. Their proposed tactics included creating fake documents that would be submitted to WikiLeaks, then exposing these documents for being false one they were published. By doing so, WikiLeaks would lose its credibility with the public.
What is Being Done to Stop Corporate Espionage?
Because corporate espionage has only recently become an issue, most corporations aren’t prosecuted. Most businesses are very careful to cover their tracks, making instances of undercover operations hard to pinpoint. Companies will hire outside investigators, who in turn will hire separate contractors. When an organization attempts to prosecute a corporation for espionage, the case will often get dropped because they cannot take the full blame. The report also mentioned that corporations hired ex-employees from intelligence agencies because other law enforcement officials would be less likely to prosecute them. Sometimes, these agencies are the ones that are ones conducting unethical investigations. According to Ruskin, Congress must enact policies that will protect these organizations. He believes that until official measures are taken, corporate espionage will continue to occur without repercussions.
In 2009, Adriano Sotomayor was on the hunt for money and an unsuspecting individual. Sotomayor was a con artist, and found his mark in the nuns of the Sisters of the Rosary of Fatima convent in New Jersey. He called one of the nuns and told her that he was a New Jersey priest and that a member of his parish had just named her the beneficiary of $2.1 million. All she had to do was wire a payment of cash over to a New Jersey business called Flex Account to cover the charges of legal proceedings and taxes.
The nun didn’t have the money up-front, so Sotomayor told her to bring in her friends and family to lend her the money she needed before she received her lucrative payment from the will. Unsuspecting, she convinced many who were close to her to give her the money she needed. As you could imagine, none of these people got their money back, and Sotomayor never gave the nun the money he promised.
This is just one of many possible con artist scams that are pulled on a regular basis in America, and just one of many scams that could have been avoided with the help of a professional background search from a private investigator. Background searches can help in situations like these as well as to find out personal and business histories of subjects.
Strangers getting involved with your relatives
As in the case of Sotomayor and the unnamed nun, strangers who enter the lives of the vulnerable often do not have their best interest at heart. If you know someone new has entered the life of a relative of yours such as your mother or father, investigating their history can ensure the truth of their claims and interests.
Many con artists will attempt to get close to elderly individuals with malicious interests such as defrauding them or getting them to place them in their wills. Investigators such as Lauth Investigations Inc. can conduct background searches that can find out if the subject is using an alias, has a criminal record or has defrauded others in recent history.
Pre-business transactions
Background investigations can also be extremely useful when searching into the history of potential business partners. Before engaging in a merger or business transaction, a thorough and professional background search can look into the financial history of potential partners to ensure that they are worth trusting.
Professional investigations can dig up if other companies have had trouble with civil or criminal lawsuits in the past or are concealing damning information such as bankruptcies.
Pre-Marital background searches
Sometimes even those who we trust the most are worth investigating as well. Before entering an agreement as major as a marriage, a background search can be extremely useful. Professional investigators can find out if the bride or groom to be is concealing any serious information that a spouse would want to know.
This involves criminal records, past relationships that have been concealed and financial information. Using a background search from a professional investigation firm may be the only way to make sure a potential spouse is completely truthful and can ensure that key information is revealed before the wedding and not after the fact.
As companies continue to compete in a highly competitive global market, many choose to expand their businesses overseas in order to increase production and cut costs. These opportunities are major commitments and can end poorly if the right type of information isn’t collected. Before any contract is signed, companies need to know everything they can about a potential business opportunity. Factors such as a corporation’s past performance, suppliers, finances, and clients can all have a hand in the outcome of a business transaction. Lauth Investigations specializes in conducting corporate due diligence investigations that will detect these liabilities and ensure a beneficial investment for your company.
When Should a Company Conduct a Due Diligence Investigation?
A company should begin collecting data after a possible transaction with another institution has been established. However, an investigation should occur prior to the signing of binding contracts. The types of deals that require a due diligence investigation may include:
Mergers and Acquisitions
Oversea Expansions
Business Partnerships
Large Investment Opportunities
Corporate investigations are especially valuable to industrial and manufacturing corporations who are looking to expand their operations internationally. A 2013 CFO Research Survey found that 83% of companies consider overseas expansion a top priority. By conducting an inspection of potential clients and partners, these companies can prevent future lawsuits and unexpected costs. During negotiations, a thorough business investigation can also lower the price by disproving unfounded claims made by a corporation.
What Does a Due Diligence Investigation Look For?
Corporate intelligence plays a heavy role in due diligence investigations. It not only involves the gathering of information about a corporation, but the analysis of that data as well. Lauth Investigations will uncover intelligence about:
Business Reputations
Financial History
Litigation and Disputes
Past Investments
Bank Accounts
Public Records
Hidden Assets
Past and Current Employees
A variety of techniques are employed when detecting the liabilities that may exist within a corporation. These techniques may involve surveillance, financial investigations, interviews, and background checks. Lauth Investigations is dedicated to acquiring every piece of information necessary for conducting a thorough background check on a business.
Why Choose Lauth Investigations?
Lauth Investigations has private investigators established in three prime locations: Indianapolis, IN, Denver, CO, and Tampa, FL. According to a report done by the National Association of Manufacturers, these states have a total of 32,361 manufacturing establishments. Out of these three states, Indiana came in first, with its manufacturing accounting for 98.5% of its exports. Many of the companies with establishments in these states, like Bausch & Lomb or Adidas Group, rely on international ties. Others are considering the possibility of mergers and acquisitions with corporations worldwide.
Recognizing the need for a due diligence investigation is the first step in carrying out a successful business transaction. The second step is choosing an investigator that can detect and analyze the risks that others may overlook. With 20 years of experience, Lauth Investigations can work with your company to determine what services and investigations will best suit your needs.
For many years, stories about personal identity theft have permeated the daily news. We are warned our personal computers and smart phones can easily become the target of phishing and encouraged to maintain the most up-to-date security software on our devices.
According to a 2011 report released by the United States Department of Justice, Bureau of Justice Statistics (BJS), an estimated 8.6 million households had at least one person age 12 or older, who became a victim of identity theft during 2010. The BJS reports approximately $13.3 billion in direct financial losses. Understandably, this number increases annually. Experts estimate the current number of U.S. victims to be 15 million individuals annually, and upwards to $50 billion in financial losses.
On December 4, 2012, the Identity Theft Assistance Center (ITAC), issued the Child Identity Fraud Survey Report reporting theft of children’s social security numbers are the most commonly used piece of information of identity thieves targeting children. The report also identifies some victimization occurring within the children’s own home by their own family members. ITAC have been reporting increasing incidents of minor identity theft where identity thieves combine a child’s social security number with a fictitious date of birth, creating a new “synthetic” identification that authorities claim is very difficult to detect.
While some criminals steal wallets, mail, and rummage through garbage bins, the 21st Century criminal has advanced using technology to infiltrate our homes, corporations, and government offices for personal information. We are now hearing more and more instances of government and corporate databases that have been lost, stolen, breached, and even sold.
From AOL, Taco Bell, Aetna, Google, Twitter, Walgreens, FEMA, and even New York City Police Department, personal information continues to wind up in the hands of criminals. Stories abound about government or corporate entity’s database systems hacked, customer files found in trash bins, employee theft, and even stolen or lost laptops containing personal information of customers and employees. Considering the damage that can quickly follows any incident of identity theft, experts recommend being proactive to protect personal identification.
According to Thomas Lauth, owner of Lauth Investigations International and a respected private investigator with twenty-year’s experience, “one can never be too careful when protecting their personal information”. Lauth warns personal information is used to not only create new identities, but corporations are targeted by thieves to steal trade secrets, sell client data to competitors, to personal stalking, and even murder. He states, “In this day and age, we must not take our privacy for granted and as citizens we need corporate and government agencies to take precautions to handle our personal information responsibly by implementing additional security precautions.”
Some tips to help keep your information safe
Keep all personal documents, social security cards, and birth certificates locked in a safe place.
Shred anything with your name and address on it instead of tossing the items into the trash. A crosscut shredder is recommended.
Never provide a social security number online or over the phone.
Password-protect or encrypt all personal information on your computer. Maintain up-to-date protection on your computer.
Do not click on any link sent in an email unless you know the sender. Merely clicking on a link can install phishing and spyware on the computer. Instead, call or personally visit the financial institution or provider to provide information if required.
Make sure there has not been a Change of Address request placed with USPS. Thieves will commonly attempt to divert mail so they can obtain billing statements and credit card offers.
When asked to provide personal information by a medical provider, educational institution, utility company, or governmental agency, ask how they will protect your personal information.
Corporations, educational, medical, and governmental entities are encouraged to contact Lauth Investigations International to find out how they can better protect their client’s information.
