ID theft ring depleted teacher bank accounts

An employee of the Broward County School Board allegedly stole teacher personal data in order to add himself and others as authorized users of victim credit card and bank accounts.

MIAMI, FL (HealthcareInfoSecurity.com) April 8, 2011 -- Two of 12 people indicted April 5 in a Florida identity theft and bank fraud scheme were charged with criminal violations of the Health Insurance Portability and Accountability Act (HIPAA) privacy rule.

The two defendants worked as office assistants at two medical offices in Coral Springs and Fort Lauderdale, according to the U.S. Attorney for the Southern District of Florida. They allegedly stole patient identification information, including Social Security numbers, and sold it to three other defendants in the case.

If convicted of the HIPAA violations, the two defendants face a maximum term of 10 years in prison.

The Florida case also involves an employee of the Broward County School Board who allegedly stole teachers' personal data and sold it to other defendants. The defendant was the organizer of the identity theft ring and allegedly used all the stolen information to add himself and others as authorized users of victims' credit card and bank accounts, according to the indictment.

Defendants then depleted the bank accounts and incurred credit charges, committing a total of more than $1.2 million worth of fraud, authorities said.

All the defendants were charged with conspiracy to commit bank fraud and could face a maximum prison sentence of 30 years on that charge. They also were charged with conspiracy to commit access device and identity theft. Four defendants could receive additional prison sentences if convicted of substantive counts of access device fraud.

Link: http://www.healthcareinfosecurity.com/articles.php?art_id=3521

Source: DHS Daily Open Source Infrastructure Report