Transcript Slide 1
Oregon DMV Fraud Prevention Program
Tom McClellan, DMV Administrator
Background
◦ Program created in 2004
◦ Collective efforts to prevent, detect and
investigate incidents of DMV-related fraud
◦ Everyone at Oregon DMV plays a role
Goal:
◦ Prevent incidents of DMV-related fraud
Objectives:
◦ Develop fraud related policies and procedures
◦ Increase understanding of how DMV processes
may unintentionally contribute to fraud
◦ Improve fraud prevention, detection and
investigation through manager and employee
training
◦ Partner with law enforcement to investigate
incidents of DMV-related fraud
Proactive prevention and detection will guide
planning, policy formation and service delivery
Impacts to customer service and operational
efficiency will be considered when responding to
fraud related risks
Policies and procedures will be comprehensive and
comply with applicable state and federal laws/rules
Program will continue to change and adapt to new
requirements as the nature of fraud activity evolves
Fraud Prevention Section will support and not
replace DMV managers’ responsibilities
Purpose: FPS facilitates and supports the agency’s
Fraud Prevention Program
Staff: Manager, Program Coordinator, Office
Assistant, Fraud Examiner, Investigators (non-sworn)
Staff Responsibilities:
Evaluate Fraud Prevention Program effectiveness
Conduct risk assessments - DMV work processes and systems
Investigate incidents of DMV-related fraud
Develop fraud-related policies for DMV Management Team
approval
◦ Serve on implementation teams to identify fraud related
impacts to new systems and work processes
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Fraud Investigation Types
Number of Investigations
Facial Recognition System (FRS)
319 *
It’s Not Me
100
Vehicle Title and Registration
104
DL/ID Fraud
59
Internal Fraud
3
Multiple Categories
10
“Other”
3
Bribery
1
CDL Fraud
1
TOTAL:
600
* FRS Cases: 1,087 since September ‘08
Policy Statement
◦ Comply with state and department policies and procedures
◦ Take appropriate administrative action against employees
◦ Involve law enforcement when appropriate
Purpose
◦ Provide guidance to managers in responding to internal fraud
Guidelines/Philosophy
◦ Share information with only those who have a need to know –
discretion is a key principle
◦ Management decides what information is shared with
employees at the conclusion of the investigation
Early Stages of an Investigation
◦ Don’t talk to employees involved
◦ Keep the investigation quiet to avoid alerting suspected
employees and to prevent damage to innocent employees
◦ Oregon Department of Justice and law enforcement may be
contacted to conduct a criminal investigation, if appropriate
First Stage in Responding
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Notify supervisor (Section or Region Manager)
Gather needed information and evaluate the situation
Determine worse-case scenario
Consult with DMV Human Resources Manager & Fraud
Prevention Manager, if appropriate
New Employee Orientation
◦ Fraud Prevention Program Brochure
◦ Data Breach Policy
Fraud Prevention Newsletter
FEWS Alerts
Management Team Meetings & Briefings
Small Field Offices
◦ Scope:
Observe work processes
Review policies and procedures
◦ Risks/Recommendations:
Identified 39 risks and made 27 recommendations
Automate posting of knowledge test scores
Regularly rotate employees between field offices
Conduct unannounced audits by region managers
Install video cameras
Replace bank deposit bags
Social Security Numbers
◦ Scope:
Employee use of SSN to complete customer transactions
Observe work processes
Review policies and procedures
◦ Risks/Recommendations:
Identified 17 risks and made 37 recommendations
Remove SSN field from forms when not required
Secure access to Microfilm Unit
Remove SSN from reports when not required
Display truncated version on computer screens (last four digits)
Investigatory Tools
◦ FastData Skip Tracing Tool
◦ Oregon Judicial Information Network (OJIN)
◦ Facebook & Internet
◦ Law Enforcement Data System (LEDS)
◦ ACL Data Mining Software
Prevention & Detection Methods
◦ Establish a “perception of detection”
◦ Conduct unannounced field office audits
◦ Require separation of duties whenever practical
Manager reports suspected breach
◦ Intranet-based form is available
After verifying an actual breach, DMV Record
Services notifies all affected customers in writing
◦ Recommend customers monitor financial accounts and
obtain copy of credit report
◦ Customer may place freeze on credit files
◦ Special DMV phone number is provided to customers
impacted by data breach
Skimming Schemes
◦ Late Title Presentation Fees
◦ Replacement License Fees
Driver License Fraud Scheme
◦ Collusion with external parties to provide driver licenses
to undocumented immigrants
FRS Investigations
◦ Case files delivered to DOJ investigators weekly
Federal investigations – SSA & U.S. Department of State
Internal/external fraud investigations
◦ Good response to requests for assistance
DMV/LE Coordinating Committee
◦ Quarterly meetings to discuss topics of mutual interest
Evaluate DMV Fraud Prevention Program
◦ Assess progress toward program objectives
◦ Address issues identified
◦ Consider recommendations to improve