Transcript Slide 1

Oregon DMV Fraud Prevention Program
Tom McClellan, DMV Administrator
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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
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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
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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
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Policy Statement
◦ Comply with state and department policies and procedures
◦ Take appropriate administrative action against employees
◦ Involve law enforcement when appropriate
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Purpose
◦ Provide guidance to managers in responding to internal fraud
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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
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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
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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
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New Employee Orientation
◦ Fraud Prevention Program Brochure
◦ Data Breach Policy
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Fraud Prevention Newsletter
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FEWS Alerts
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Management Team Meetings & Briefings
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Small Field Offices
◦ Scope:
 Observe work processes
 Review policies and procedures
◦ Risks/Recommendations:
 Identified 39 risks and made 27 recommendations
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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
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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
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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)
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Investigatory Tools
◦ FastData Skip Tracing Tool
◦ Oregon Judicial Information Network (OJIN)
◦ Facebook & Internet
◦ Law Enforcement Data System (LEDS)
◦ ACL Data Mining Software
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Prevention & Detection Methods
◦ Establish a “perception of detection”
◦ Conduct unannounced field office audits
◦ Require separation of duties whenever practical
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Manager reports suspected breach
◦ Intranet-based form is available
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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
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Skimming Schemes
◦ Late Title Presentation Fees
◦ Replacement License Fees
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Driver License Fraud Scheme
◦ Collusion with external parties to provide driver licenses
to undocumented immigrants
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FRS Investigations
◦ Case files delivered to DOJ investigators weekly
 Federal investigations – SSA & U.S. Department of State
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Internal/external fraud investigations
◦ Good response to requests for assistance
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DMV/LE Coordinating Committee
◦ Quarterly meetings to discuss topics of mutual interest
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Evaluate DMV Fraud Prevention Program
◦ Assess progress toward program objectives
◦ Address issues identified
◦ Consider recommendations to improve