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CNN Live At Daybreak

Three Men Charged in Largest Identity Theft Case Ever

Aired November 26, 2002 - 05:06   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CATHERINE CALLAWAY, CNN ANCHOR: From choking terror funding to stopping big time credit thieves, three men have been charged in what prosecutors call the largest identity theft case ever.
Here's CNN's Jason Carroll explaining the alleged plot.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Federal prosecutors say this man, Philip Cummings, used his computer keyboard to pick the pockets of thousands of consumers.

JAMES COMEY, U.S. ATTORNEY: We have stumbled upon something that is bigger than any of us imagined in terms of the tens of thousands of people who were ripped off here.

CARROLL: According to the U.S. attorney's office, Cummings and two other men stole the identities of 30,000 people across the country and sold the identities on the street for $60 apiece. Prosecutors said the scheme started in March of 2000, after Cummings left his job here, at Teledata Communications Inc., TCI. TCI's software allows companies to access consumer credit files from the big three reporting agencies -- Experion, Equifax and Trans Union.

Cummings kept the passwords and access codes when he left TCI and simply used his laptop to get whatever information he needed, prosecutors said. The financial fallout? Victims' losses expected to top more than $2.5 million.

COMEY: Bank accounts of victims were depleted. Addresses were changed on accounts. New checks were ordered, new ATM credits were ordered, new credit cards were ordered, new lines of credit were opened and quickly drained.

CARROLL: Financial institutions in several states that use TCI were defrauded out of millions. The one hit hardest, Ford Motor Credit in Michigan. The company tipped off investigators eight months ago after discovering someone fraudulently used a code to obtain 15,000 credit reports.

KEVIN DONOVAN, FBI: This case is a perfect example of how technology is a double edged sword for law enforcement. The defendants took advantage of an insider's access to sensitive information in much the same way that a game of thieves might get the combination to the bank vault from an insider.

CARROLL (on camera): Cummings is cooperating with authorities. He was arraigned late Monday and he is currently out on bail. There are still many questions about this case, namely why one of TCI's former employees still had access to sensitive information. TCI released a statement late Monday saying that they are cooperating with authorities and it would be inappropriate to comment any further.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

CALLAWAY: And we have some tips to protect yourself online. You can check your credit report at least once a year. Very good idea to do that. You've got to stay on top of your credit card bills. And if you think you've been victimized, call the FTC hotline, 1-888-ID- THEFT.

More consumer protection ideas coming up for you in the next hour of DAYBREAK. We have an expert that will be along to talk about safety for you, online safety, that is.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 26, 2002 - 05:06   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: From choking terror funding to stopping big time credit thieves, three men have been charged in what prosecutors call the largest identity theft case ever.
Here's CNN's Jason Carroll explaining the alleged plot.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Federal prosecutors say this man, Philip Cummings, used his computer keyboard to pick the pockets of thousands of consumers.

JAMES COMEY, U.S. ATTORNEY: We have stumbled upon something that is bigger than any of us imagined in terms of the tens of thousands of people who were ripped off here.

CARROLL: According to the U.S. attorney's office, Cummings and two other men stole the identities of 30,000 people across the country and sold the identities on the street for $60 apiece. Prosecutors said the scheme started in March of 2000, after Cummings left his job here, at Teledata Communications Inc., TCI. TCI's software allows companies to access consumer credit files from the big three reporting agencies -- Experion, Equifax and Trans Union.

Cummings kept the passwords and access codes when he left TCI and simply used his laptop to get whatever information he needed, prosecutors said. The financial fallout? Victims' losses expected to top more than $2.5 million.

COMEY: Bank accounts of victims were depleted. Addresses were changed on accounts. New checks were ordered, new ATM credits were ordered, new credit cards were ordered, new lines of credit were opened and quickly drained.

CARROLL: Financial institutions in several states that use TCI were defrauded out of millions. The one hit hardest, Ford Motor Credit in Michigan. The company tipped off investigators eight months ago after discovering someone fraudulently used a code to obtain 15,000 credit reports.

KEVIN DONOVAN, FBI: This case is a perfect example of how technology is a double edged sword for law enforcement. The defendants took advantage of an insider's access to sensitive information in much the same way that a game of thieves might get the combination to the bank vault from an insider.

CARROLL (on camera): Cummings is cooperating with authorities. He was arraigned late Monday and he is currently out on bail. There are still many questions about this case, namely why one of TCI's former employees still had access to sensitive information. TCI released a statement late Monday saying that they are cooperating with authorities and it would be inappropriate to comment any further.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

CALLAWAY: And we have some tips to protect yourself online. You can check your credit report at least once a year. Very good idea to do that. You've got to stay on top of your credit card bills. And if you think you've been victimized, call the FTC hotline, 1-888-ID- THEFT.

More consumer protection ideas coming up for you in the next hour of DAYBREAK. We have an expert that will be along to talk about safety for you, online safety, that is.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com