Challenges in Business ID Theft

1. CHALLENGES IN
BUSINESS ID THEFT IN
THE UNITED STATES
Cheri L. Myers, Corporations Director
NC Department of the Secretary of State

2. Who uses our data?

3. NC Secretary of State
Elaine F. Marshall

4. Brief History
 2010 – Growing number of business
identity theft cases discovered across
the country, especially in Georgia and
Colorado
 April 2011 – NASS Business Identity
Theft Taskforce formed
19 Secretaries of State
 Every region represented

5. 2011 NASS Business Identity Theft
Forum
Develop proactive
strategies for
combating this
relatively new
form of crime
Purpose Key Emphasis: Balance
between convenience and
unauthorized access

6. 2012 NASS BUSINESS IDENTITY
THEFT WHITE PAPER:
www.NASS.org
 Role of Secretaries of State in reviewing
business filings – limited authority
 Challenges to tracking the issue
 Lack of clear data
 Lack of penalties and laws that allow
prosecution
 Multi-jurisdictional investigations

7. Recommendation #1
Establish a
statewide taskforce
on business
identity theft of key
stakeholders

8. Recommendation #2
Develop a
state action
plan

9. Recommendation #3
Establish a
notification process
for businesses in
your state

10. Recommendation #4
Establish clear
steps for victim
assistance and
education

11. Recommendation #5
Conduct outreach
to raise awareness
and urge
preventive action

12. Resources Developed
 April 2012 website launched
 www.BusinessIDTheft.org
Developed by NASS in
partnership with Identity
Protection Association
Provide state-by-state resources
for victims

13. 2016: Business Identity Theft Task Force
Reconvened
 March 10, 2016
 Elaine F. Marshall (NC) and Paul Pate (IA)
Co-Chair
 Public Outreach
 Education
 Cyber Security
 Data Protection

14. North Carolina
 Has the authority to reject documents
 Provides free E-mail notification
subscriptions
 Allows filers to submit affidavits to
correct fraudulent changes
 Works closely with law enforcement to
identify and prosecute

15. Tales from North Carolina
 Fall 2011: Surge of Complaints about
Unauthorized Revocation of Voluntary
Dissolutions
 November 2011: Modified Procedures
around Reviewing Revocations of
Dissolutions
 Result? Within 6 months, All Unauthorized
Activity STOPPED!

16. Most Recent Major Case
 NCSOS staff investigated a business identity theft
case that resulted in over 1 million dollars in
losses collectively to 3 major cell phone
companies
 Scheme hijacked legitimate business identities
and creation of entities created solely for
fraudulent purposes
 January 2016, 2 defendants charged with serious
felonies; mandatory prison time if convicted

17. Why is this case relevant?
These schemers
were active in TEN
other states!

18. Conversations Needed
Internet
Issues
Services to
Citizens
Criminal
Activity
International

19. Cheri L. Myers
cmyers@sosnc.gov
PO Box 29622
Raleigh, NC 27626-0622
919-807-2050
Questions