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Jill Dando – The Murder of the BBCs Sunshine Girl

By Rachael Bell
Sparks of Hope

On December 10, 1999, The Sun newspaper interviewed a man working on the film “102 Dalmatians” who had found a strange object on the shore of the Thames during an afternoon stroll. Wrapped in newspaper, the man discovered a black 9mm automatic Beretta, believed to have been similar to the gun used in the Dando shooting. The gun was discovered on the same day police revealed that Dando was most likely not murdered by a professional killer, although it had not been totally ruled out. Police further revealed that during the weeks leading up to her murder, two men at different occasions showed a fixation with Dando. On one occasion a man attempted to place his name on Dando’s electricity bill, and on another, a man attempted to have her telephone changed to his name. Weeks later, detectives revealed that there was a third incident in which a man attempted to access Dando’s private documents. It was unclear whether the men were one and the same or were two or three different people. This new evidence led police to speculate that Dando’s murder was most probably carried out by a stalker.

The Psychopathology of a Stalker

Katherine Ramsland in her article, “Stalkers: The Psychological Terrorists,” presents the definition of a stalker, which is according to U.S. legislation, a person who “willfully, maliciously and repeatedly follows or harasses” another person and who threatens the safety of that person or their immediate family. Recently stalking has gained a great deal of media attention due to several high profile cases in which celebrities have been murdered or assaulted by obsessed stalkers. The problem has often been believed to have been one suffered exclusively by females, especially those who are continuously in the public eye. According to Dr. Phillip Resnick of Case Western Reserve University, one in 12 women is stalked by either sex at one time throughout her life. However, stalking is not a phenomenon to which only celebrities or females alone fall victim. Both stalkers and their victims are represented by both genders. Dr. Ramsland points out the U.S. Department of Justice estimates that one in 45 men are stalked at sometime in his life and that “90 percent of women killed by their husbands or boyfriends had first been stalked.” However, on average women are more likely than men to be the victims of a stalker.

Dr. Reid Meloy, author of several books on stalking and a leading expert on stalking behavior, stated that stalkers are mostly middle-aged men who develop pathological attachments and usually follow a predictable pattern of behavior. He describes the progression of a stalker in his book The Psychology of Stalking, as one which begins with infatuation-like feelings, eventually followed by contact with the person of interest. Contact with the person often ends in rejection, which Meloy states, “triggers the delusion through which the stalker projects his own feelings onto the object: She loves me, too.” He further explains that the stalker hides his shame with anger, leading to the desire to control or injure the person being stalked. Often, the stalker will attempt to fulfill his fantasy by devaluing the person and controlling the individual through violence.

Dr. Ramsland describes the F.B.I.’s four distinct types of stalkers:

1. Non-domestic stalker, who has no personal relationship with the victim
2. Organized
3. Delusional
4. Domestic stalker, who has had a prior relationship with the victim and feels motivated to continue the relationship

Ramsland says stalkers tend to be, “unemployed or underemployed,” and more intelligent than other criminals.

Therefore, stalkers are more likely to be middle-aged, unemployed, obsessed, psychopathic men. However, one can not and should not myopically view all stalkers as such. Stalkers and their victims are not limited to any particular gender, age, sex, race or culture. Thus, anyone at anytime or anywhere can be stalked. Ramsland does state that although many stalkers do threaten their victims, only a “small percentage carry out their threat.” Unfortunately, there is no way to differentiate between those who make idle threats and those who actually follow through.

Suspect of Many Identitites

Police photo of the suspect (BBC News)
Police photo of the
suspect (BBC News)
After one year and many appeals made by police for information into Dando’s murder, a 40-year-old suspect was arrested in connection with the crime on May 25, 2000. The suspect, whose name was initially withheld from the public, was held in police custody at the London police station for 84 hours. He eventually appeared at the West London Magistrates Court on May 29, 2000. Police had asked the judge for an extension to hold the suspect in custody three times in order to question him more extensively before he was formally charged for the crime.

Police had begun to focus on the suspect following an interview with him concerning Dando’s murder. He was one of more than 2,000 people listed as potential suspects in the investigation. Before his arrest, police set up surveillance cameras outside of the suspect’s residence. Investigators claimed that they had discovered new circumstantial evidence taken from his home that linked him to the murder of Dando. Interestingly, police had already obtained several tips from anonymous callers about the suspect just days following the murder. However, the information was overlooked by investigators in the flurry of activity surrounding the case. Following his arrest, the suspect denied ever knowing Dando or having ever caused her physical harm.

The world was told that the name of the suspect was Barry Bulsara, several days following the arrest. However, police discovered that Barry Bulsara was not his real name. Neither were the names Steve Majors or Thomas Palmer, which he also frequently used. Eventually the police learned the real identity of their suspect, Barry Michael George. Neighbors and acquaintances told police that Mr. George often assumed false identities and claimed to be employed by the government to work high security positions. Mr. George also claimed to be related to the classic rock group Queen’s lead singer Freddy Mercury, whose original surname was Bulsara. However, ABC News reported that Mercury’s family denied that Mr. George ever had any affiliation with the singer’s family.

Barry George (BBC News)
Barry George
(BBC News)
Mr. George’s home, located a half mile from Dando’s residence, was searched by police. Investigators lacked important evidence needed to build a solid case, including a lack of motive, eyewitnesses to the crime and a murder weapon. It was hoped that such evidence could be found at the suspect’s apartment. Many items were eventually removed from Mr. George’s residence and used as evidence in one of Britain’s most publicized trials of the century.

The Trial

Almost eight months following Mr. George’s arrest, the Dando trial began at the Old Bailey with a bumpy start. Four days after arguments began with prosecutor Orlando Pownall QC and defense attorney Michael Mansfield QC, the proceedings were adjourned by Mr. Justice Gage for unknown reasons. Legal arguments resumed during the last week of April 2001 but were once again delayed until the first week of May. Finally on May 4, 2001, the trial began again with the prosecution building up its case against Mr. George before a jury of seven women and five men. It was the beginning of a trial that would span five weeks and captivate news audiences worldwide.

Police evidence of magazines found in George’s apartment (BBC News)
Police evidence of magazines
found in George’s apartment
(BBC News)
During the first week in May, the jury learned of the details surrounding the death of Dando and the murder scene. Then they heard about Miss’ Dando’s history, including her engagement, successful career and accomplishments. Subsequently, the prosecution described the evidence concerning Mr. George, creating a picture of a man obsessed by fame. Mr. George had an intense interest in firearms and the military, gauged by the large quantity of magazines and books found at his house on those subjects. George had also a habit of using false identities throughout his life.

Police evidence of photos found at Barry Georges residence (BBC News)
Police evidence of photos found at
Barry Georges residence
(BBC News)
Mr. Pownall told jurors how in 1982 George had joined a pistol club using the name Steve Majors. George’s use of the name was in honor of the character Steve Austin, played by Lee Majors in the popular Bionic Man television series, according to BBC News. Pownall also told jurors that George had assumed other famous identities, including that of a heroic SAS soldier who helped end the siege on the Iranian Embassy in London in 1980.

Gun holster found at George’s apartment (BBC News)
Gun holster found at
George’s apartment
(BBC News)
Mr. Pownall spoke of Mr. George’s obsession with the BBC, where the defendant worked for a stint as a messenger in 1976. Pownall stated that the defendant had an “unusual interest in the BBC” and would often collect copies of the staff newspaper containing articles and photos of employees. The collection of the articles continued on a weekly basis over a seven-year period. One of the employees often featured in the BBC’s staff newspaper was Jill Dando. During a police search of Mr. George’s apartment, two cut out {Metro} newspaper articles referring to Jill Dando’s death had been found.

Jurors also learned that although Mr. George had claimed not to have known of Jill Dando, he had displayed enormous sympathy for her following her death. Mr. Pownall said that a member of the local council had remembered Mr. George saying that a memorial should be built for the murdered television presenter and that the defendant had actively sought letters of condolence following her death. During an interview with a journalist on the Dando case, Mr. George claimed to have watched Jill Dando on the {Crimewatch} television series and was quoted as saying that he thought her to be, “a lovely lady.” Prosecutor Pownall told the jury that the journalist’s account contradicted a statement Mr. George had given the police. An even more compelling account linking Mr. George to the Dando murder case came from a witness named Sally Mason. Mason had been an acquaintance of Mr. George for 15 years. During a conversation with Mason about the murder of Dando, the defendant had remarked to her that he had indeed been there, although he had claimed on other occasions to police to not have been.

Critical Evidence

Clothes at George’s flat, police evidence (BBC News)
Clothes at George’s flat, police
evidence (BBC News)
During the second week of the trial, jurors were told of a police search of Mr. George’s apartment. One of the critical pieces of evidence was a coat which contained discharge residue particles in one of the pockets. The coat was similar to the one worn by the suspect witnesses claimed to have seen on the morning of Dando’s murder. The prosecution told jurors that particles found in the coat originated from the fired gun that contained the cartridge case recovered from the murder scene of Dando. Forensic scientists had found a similar match between the particles found in Mr. George’s coat pocket and particles found on the coat and in the hair of Jill Dando at the murder scene. Moreover, at the scene of the crime investigators found a single fibrous strand that matched the material of a pair of pants owned by the defendant.

Another particularly damaging witness account was relayed to the jury before the end of the prosecution’s opening speech. A witness named Susan Mayes said that she saw the defendant standing across the street in front of Dando’s house on the morning of the brutal murder. The witness also claimed that the defendant had been wearing a black suit with a white shirt. Mr. Pownall ended his speech by telling jurors that, “although he might have not had a rational motive, this defendant shot Jill Dando.”

During the third week of the trial, jurors were given a tour of several of the key places involved in the investigation. Following a visit to the houses where Dando and Mr. George lived and surrounding areas, jurors were once again escorted to the courtroom to hear the testimony of other key witnesses. One witness, who was a friend of Dando’s, described how she had found her friend’s body on the front step. In fact, several people came across the body of Dando immediately after her death. However, no one had seen anyone suspicious near the crime scene, except for Miss’ Dando’s neighbor Mr. Hughes. Jurors were also shown videotaped interviews, in which Mr. George had been questioned extensively by investigators. Once again, Mr. George was heard saying he had never before seen Jill Dando in the flesh, yet he was shocked upon learning about the circumstances of her death. Investigators also asked Mr. George if he had killed Dando, which he denied doing.

The Defense

On the fourth week of the trial, the defense attorney Michael Mansfield QC told jurors that there was evidence that Dando had been assassinated by a professional Yugoslavian hit man. He suggested that her death was caused in retaliation for NATO bombings in Belgrade. His claim was further supported by a National Intelligence Crime Service report, which ordered the death of the famous television presenter. “Miss Dando’s murder was a hit ordered by Arkan, the leader of the Tigers,” Mansfield said. The arguments made by the defense, focusing on the hit man theory, extended into the fifth week. Mansfield also told jurors that there were threatening phone calls received by Television Centre in London and BBC Belfast in the days following Dando’s death. The caller had been said to have had a foreign accent and had referred to Dando’s murder ws personalities with being future targets. In a rebuttal against the prosecution’s earlier statements, Michael Mansfield told the jury that evidence linking Mr. George to the crime was “non-existent” and that the prosecutors failed to produce a motive, weapon or witnesses who saw him commit the murder.

Mansfield presented a witness who claimed to have seen a man in a Range Rover car parked near Dando’s house on the morning of the murder. The witness, a traffic warden, told the court she had noticed the man waving at her while talking on a mobile. She told the court that when she had first approached the car, she did not see the man and was startled when she eventually noticed him. She believed the man on the phone in the car had been attempting to attract her attention. There was no evidence presented by either side that connected Mr. George with a Range Rover vehicle.

Following closing statements by the defense and prosecution, Mr. George’s fate lay in the hands of the jury. On July 2, 2001, the jury returned after five days of deliberation. Barry Michael George had been found guilty of the murder of Jill Dando and sentenced to life in prison.

Newspaper articles (BBC News: July 3, 2001)
Newspaper articles
(BBC News: July 3, 2001)
According to British law, previous convictions of the defendant could not be told to the jury to prevent prejudicing the case. The BBC News reported what the jury had never learned — that Barry George had been previously arrested for crimes, some of which were assaults against women. In 1980, George had been fined for the impersonation of a police officer. That same year, he was arrested for the molestation of two women. One of the women had been attacked by Mr. George in an elevator, a crime for which he was later acquitted. The same year, Mr. George had been arrested for indecent assault of a second woman. She had told the judge at the hearing that he had followed her for several weeks prior to the attack. Mr. George was convicted for indecent assault in 1982 and of attempted rape in 1983.

What jurors had also not learned throughout the trial proceedings was that Barry George had been arrested in 1983 for trespassing on the property of Diana, Princess of Wales. Mr. George had been found armed with two knives, rope, combat paraphernalia and a gas mask. George had been seen loitering near the grounds around Diana’s home a total of four times during the same year before he was turned away from the area. Therefore, Mr. George was a more threatening and disturbed character than what his defense team had initially portrayed. Based on Mr. George’s prior criminal records from before the Dando charge, it was evident that stalking and other violent acts were not unknown to him. According to The Mirror newspaper who had interviewed the former wife of Mr. George, the marriage was described by the Japanese national as “violent and terrifying.” The marriage lasted from 1989 until the couple’s divorce in 1994.

Aftermath

UPDATE: Appeals & Conviction Overturned

On July 31st, 2009, a London jury cleared Barry George of all charges relating to the murder of Jill Dando. Jailed since 2001, George was finally retried after lengthy appeals based on questions raised by his defense team about evidence presented by prosecutors at the original trial.

In November 2008 three Appellate Court judges called into question the veracity of forensic evidence leading to George’s conviction.

The Old Bailey Court retrial jury, like the first jury, never heard of George’s prior sex offense conviction, record of an attempted rape and three arrests for indecent assault. This second jury never heard about the Kensington Palace break-in either.

Barry George celebrated the not guilty verdict by having a cocktail and a cup of tea with supporters following the jury’s exoneration. According to newspaper of record Telegraph.co.uk, George will receive £1 million compensation for his time incarcerated, another £100,000 likely from tabloids for his story. Additionally, George will likely sue for wrongful imprisonment. According to newspapers, George will likely retire in Ireland or rural England.

It is difficult to imagine that something positive could arise out of a life that had been unnecessarily and violently destroyed. However, as a lasting legacy to Jill Dando, Mr. Farthing, friends and family of the TV station banded together with numerous supporters to create one of the world’s first criminal science institutes. Mr. Farthing said that those who knew and loved Jill were, “trying to turn the tragedy into something positive.” The Jill Dando Institute of Crime Science was developed to assist in the prevention of crime. The institute provides degree courses on crime prevention, in the hopes that other unnecessary acts of violence could be prevented in the future.

Bibliography

This story is based entirely on newspaper articles and online news stories from British and American newspapers and web sites. The most faithful coverage was provided by the BBC News (www.bbc.co.uk) out of respect for the savage murder of one of its own stars. Other major sources were ABC News (www.abcnews.com), The Telegraph (www.telegraph.co.uk), The Manchester Guardian Internet Edition (www.guardian.co.uk/guardian), The London Times Online (www.timesonline.co.uk)

$1 Million Reward Offered in Connection with Major Art Theft Stolen Artwork Includes Original Warhol Pieces

Los Angeles: Between Sept. 2 and 3, 2009, a multi-million-dollar collection of original artwork by renowned artist Andy Warhol was stolen from the West Los Angeles home of businessman Richard L. Weisman on Angelo Drive. The stolen property included a collection of ten 40-inch by 40-inch pieces produced from 1977 to 1979 depicting famous athletes. A portrait of Weisman was also taken.

A domestic employee entered Weisman’s home on Sept. 3 and immediately discovered the artwork missing from the dining room walls. She then left the residence and went to a neighbor’s home where she called the police.

Accompanying this press release is a crime alert with details of the incident and images of the stolen artwork.

Photos of the paintings can also be found at the following link:
http://www.smugmug.com/gallery/9584873_FnPj8#645233892_VxSHt

Further descriptions are available at the crime alert link below:
Crime Alert Flyer

A reward of $1 million is being offered for information leading to the recovery of the artwork. Anyone with information about this crime is urged to call the Los Angeles Police Department’s Art Theft Detail at 213-485-2524. After-hours and on weekends, calls may be directed to a 24-hour, toll-free number at 1-877-LAPD-24-7 (527-3247). Callers may also text “Crimes” with a cell phone or log on to www.lapdonline.org and click on Web tips. When using a cell phone, all messages should begin with “LAPD.” Tipsters may remain anonymous.

Hell hath no fury like a man scorned, revenge tests reveal

The Germans call it schadenfreude – gaining pleasure from someone else’s pain – and according to neuroscientists men enjoy it much more than women.

Using brain imaging, scientists at University College London uncovered what they believe was the first neurological evidence of schadenfreude. They were surprised to find that the feeling differed starkly for each sex.

“Hell hath no fury like a man scorned,” the team concluded after doing behavioural tests on 16 men and 16 women.

Each of the volunteers took part in a financial game with four others whom they did not know were actors. During the game, some actors played fair, giving equal amounts of money to each volunteer, while others blatantly cheated.

Then the volunteers were put inside a brain scanner known as a functional magnetic resonance imager (fMRI), which can take a series of rapid snapshots of brain activity. While being scanned, they saw footage showing the fair and cheating actors getting a small electric shock similar to a bee sting. The team measured the volunteers’ reactions, in areas of the brain linked to pain and empathy and reward.

If the sufferer was someone who had played fair, areas of the brain linked to empathy and pain were activated in both male and female volunteers. But if the actor being shocked had cheated, the response from men and women differed.

Women’s brains “lit up” in a way suggesting they still felt empathy for the person, though the response was weaker than for fair players. When men saw cheats being shocked they showed little or no activity in the empathy parts of the brain but a surge of activity in the reward areas of the brain.

“When the unfair player received a painful shock there was, at most, very little sign of anything registering in the empathy related region of the men, as opposed to the reward related area … they expressed more desire for revenge and seemed to feel satisfaction when unfair people were given what they perceived as deserved physical punishment,” said Tania Singer, who led the study.

The scientists, who reported their findings in the journal Nature, said the research showed that empathic responses in men were shaped by the perceived fairness of others. They were not automatic. They depended “on the emotional link to the person who is observed suffering”, said Klass Stephan, the report’s co-author.

The volunteers also filled in questionnaires; men said they had a much higher desire for revenge than women, and got satisfaction from seeing the unfair punished. “They consistently rated the fair player as being more agreeable, more likable and even more attractive than the unfair actor,” said Dr Singer. But she added that other studies would need to be done as the tests may have been slanted towards men for presenting a physical rather than, say, psychological, punishment.

Serial Bank Robbers “The Buckshot Bandits” Sought, Reward Offered

http://lapdblog.typepad.com/lapd_blog/2009/07/serial-bank-robbers-the-buckshot-bandits-sought-reward-offered.html

Los Angeles: The Los Angeles Police Department (LAPD) is asking for the public’s help in identifying and capturing the robbery crew that allegedly robbed five banks throughout the Valley area since May 2009. The suspects have been dubbed “The Buckshot Bandits.” The Federal Bureau of Investigation is offering a $5,000 reward for information leading to the identification and arrest of the robbery crew.

On May 1, 2009, the LAPD Robbery-Homicide Division, Robbery Special Section, assumed the investigative responsibility of a bank robbery series that has occurred in the Valley area. During these robberies, the suspects enter the bank armed with a shotgun or blue-steel semi-automatic weapons. After robbing multiple tellers, the suspects exit the location, leaving a suspicious package inside the bank. Detectives suspect there are four to six crew members that work in concert to commit these robberies; however, only two suspects enter the bank at one time.

These suspects are considered armed and dangerous.

The following locations have been robbed:

* May 1, 2009 10:20 a.m. First Bank 17000 Ventura Blvd.
* May 29, 2009 1:50 p.m. US Bank 13701 Riverside Dr.
* June 12, 2009 9:40 a.m. First Federal Bank 18585 Ventura Blvd.
* July 10, 2009 12:10 p.m. CitiBank 22000 Ventura Blvd.
* July 10, 2009 12:44 p.m. US Bank 17250 Ventural Blvd.

Anyone with information about this case is asked to contact LAPD Detective Bret Richards of the Robbery Homicide Division, Robbery Special Section at 213-485-2511. After hours or on weekends, calls may be directed to a 24-hour, toll-free number at 1-877-LAPD-24-7 or by texting CRIMES (274637) and beginning the message with the letters LAPD. Tipsters may also submit information on the LAPD website: www.lapdonline.org. All tips may remain anonymous.

http://www.youtube.com/watch?v=3zPyEVeGb80

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The well-armed man is king: Borderlands preview

On a planet past its prime, a few settlers on the wrong side of a failed gold rush are desperately clinging to survival. There is hope, but not much, in the form of a recently discovered alien vault. Of course, with wild mutants and bandits roaming the land, crossing the street can kill you. Questing for what may be an ephemeral reward? Uh, no. This is the world of Borderlands, and we’ve had the pleasure of exploring it for the past few weeks. The verdict? Load up on guns, bring a friend.

2K Games sent over a preview disc with a few hours of gameplay, and the cell-shading-meets-Mad-Max graphic style is a nice change from the hyper-realistic gray and black style we’ve become used to in games like Gears of War. The game also has a sick, winking sense of humor: a robot who explains the lay of the land at the game’s beginning spends his time absent-mindedly humping the air, and runs screaming at the first sign of danger.

You can play as one of four characters, each of which is a familiar archetype. Mordecai, the sniper. Roland, the soldier. Lilith, the magic user. Brick, the tank. You pick one to play, and the other three can be used by other players with the game’s drop-in, drop-out multiplayer. Co-op is a go, and seems to be the way to play the game, but arenas pepper the landscape and allow players the ability to test their skills and weaponry against one other. And make no mistake, this is a game about weaponry.
We need guns. Millions of guns

The game promises to deliver literally millions of procedurally generated guns. I can’t speak to that, since our demo was limited to the first 15 character levels or so. Basic types of guns mixed with buffs and scopes and effects mean that you never really know what you’re going to get as you fight your way across the barren countryside. My favorite? The Ladyfinger, a handgun with a scope stronger than many sniper rifles that’s fully automatic. Plus, it’s red. I’ll also cop to falling in love with a handgun that carries a chance to set enemies on fire.
Borderlands2.jpg

When you hit an enemy, you see how many points of damage you inflict, perfect for the RPG fan who lives by the numbers. You can also upgrade your favorites at automated ammo and gun vending machines you find around the landscape. The game features an elegant way to increase proficiency with your weapons; simply use shotguns primarily to upgrade your shottie skills. Want to be the perfect sniper? Stick to your sniper rifle while out in the field. With so many guns, ammunition could be a problem, but the game deftly sidesteps that issue by making the weapons class-based. There may be hundreds of thousands of variations on handguns, but the handgun rounds will work in all of them.

Constantly checking the weapons you gain for special effects and power is one of the chief joys of the game. One shotgun I found fired a long line of energy-based projectiles that moved in a wave-like motion. Looks like I have a way to clear rooms.

If you loved the loot-collecting aspect of Diablo—and make no mistake, this is a First-Person love letter to Diablo—you’re going to be in heaven here.
Roll with a friend and liven up the quests

The quests we played tended to fall into the “go here, kill X of Y, and return the trophy to me” variety, although the game hinted at a wider story in a way I won’t discuss here. Death also carried a very light penalty; you lose some money, you get sent back to a spawning station, and you’re back in the fight. In fact, despite my gamer-like lust for the science-fiction weaponry and Gunslinger-light setting, the game started to drag on relatively quickly.

That is, until I grabbed another gaming writer who happened to have the same preview code. The netcode was tight, with very little lag in the game we played, and playing the game in co-op was much more enjoyable. Ambushed by a pack of Skags, four-pawed animals that attack like coyote lizards, my companion dropped into an invisible mode to confuse them, I dropped my turret to do damage while I gained some space, and switched to my flaming rounds to set a few of the lower-level skags on fire. As they burned, I threw a few grenades at the “Badass Skag,” seemingly the pack’s leader.
Borderlands3.jpg

Once they were all taken care of, we divided up the loot and went about our way. Playing with other people added quite the tactical punch to the game, and allowed you to explore your special abilities and take on missions together. Again, this is very much like a first-person Diablo; if you have a tight group of gaming friends, you may have found your next addiction. Just for fun, the other writer and I jumped into an arena to see who had the best guns and to play his teleportation ability against my turret. Good stuff.
One to watch

The guns pack a punch, and everyone will find something to like. Knowing how hard you’re hitting your targets means you can easily see how powerful each gun is in practice and allows you to perfect your arsenal, and the game earns its M-rating with some delightful ultra-violence.

The world of Borderlands may be a lonely place to tackle by yourself, but once the main story gets going that problem may be alleviated somewhat. Our recommendation for when the game comes out on October 20 on the 360, PS3, and PC? Find some friends and bust some skulls.

Cyber Security Girl Strikes Again!

At some point you’ve got to take your head out of the sand and take responsibility for the safety of your family’s and your customers personal data. Its not only a moral obligation, come November 1, 2009 the Red Flags Rule becomes federal law, if you are not compliant by then it can co$t you big time!

http://cybersecuritygirlstrikesagain.blogspot.com/2009/09/update-on-federal-trade-commission-red.html

Identity Theft
Red Flags Rule
and Address Discrepancy Rule–Frequently Asked Questions

by Andrew M. Smith, Nathan D. Taylor

Identity Theft Red Flags Rule

The federal banking agencies, the National Credit Union Administration (NCUA) and the Federal Trade Commission (FTC) recently have issued a new requirement — called the “Red Flags Rule” — for “creditors” and “financial institutions” to assess whether they offer or maintain “covered accounts,” and if they do, to develop and implement an “Identity Theft Prevention Program” (Program) to detect, prevent and mitigate identity theft with respect to those accounts.

When does the Rule take effect?

The Rule took effect on Jan. 1, 2008. Compliance with the Rule, however, is not required until Nov. 1, 2008.

new red flag rules deadline
november 1, 2009

What is a “creditor” under the Rule?

The term “creditor” has the same meaning as under the Equal Credit Opportunity Act (ECOA) and includes a person who regularly participates in credit decisions, including, for example, a mortgage broker, a person who arranges credit or a servicer of loans who participates in “workout” decisions. The term “credit” is defined, as in the ECOA, as the right granted by a creditor to defer payment for goods or services. It is important to note that commercial, as well as consumer, credit accounts may be covered by the Rule. (See “what is a covered account” below.)

What is a “financial institution” under the Rule?

The term “financial institution” is defined as a person that holds a “transaction account” belonging to a consumer. A “transaction account” is an account on which the account holder is permitted to make withdrawals by a negotiable instrument, such as a check. Thus, the term “financial institution” includes a bank, savings association or other depository institution.

We are a “financial institution” for the purposes of the Gramm-Leach-Bliley Act (GLBA). Are we also a “financial institution” under the Red Flags Rule?

Not necessarily. GLBA defines “financial institution” much more broadly than does the Red Flags Rule.

Under GLBA, a “financial institution” is “any institution the business of which is engaging in financial activities as described in [the Bank Holding Company Act],” including banks, securities firms, money transmitters and insurers. To be classified as a “financial institution” under the Red Flags Rule, however, you must maintain transaction accounts belonging to consumers.

We are an insurance company that uses credit reports to underwrite insurance.

Does the Red Flags Rule apply to us?

The Red Flags Rule should not apply to an insurer when engaged in activities related to insurance underwriting. To the extent that you extend credit, however, you may be covered. For example, you may wish to examine whether you permit consumers to finance their premiums; whether you extend credit to vendors, independent agents or other business partners; or whether you extend credit in connection with your investment activities, including real-estate investments.

I am an auto dealer. Does the Rule apply to me?

If you extend auto credit to consumers or arrange auto credit for consumers, the Rule may apply.

Does the Rule apply to us even if we do not obtain credit reports?

Yes, if you are a “creditor” or “financial institution,” as defined above. The Rule applies to creditors and financial institutions without regard to whether they obtain or use credit reports.

Step 1 — Assessing Whether You Offer Covered Accounts

What is a “covered account”?

A “covered account” is a consumer account offered or maintained by a creditor or financial institution that involves multiple payments or transactions, such as a credit card account, mortgage loan, or checking account. Commercial accounts also can be “covered accounts” where there is a “reasonably foreseeable risk” from identity theft to customers or to safety and soundness.

How do I determine if there is a “reasonably foreseeable risk” from identity theft in a business or commercial account?

Risk is defined to include financial, operational, compliance, reputation or litigation risk. In making your risk determination, you should consider the risk of identity theft presented by the methods that you provide to open business accounts and the methods that you provide to access business accounts, as well as your previous experiences with identity theft, if any, with such business accounts.

Is a commercial real-estate loan a covered account?

Commercial credit accounts can be “covered accounts” if there is a “reasonably foreseeable risk” from identity theft to customers or to safety and soundness.

I service residential mortgage loans. Do I offer or maintain covered accounts?

Residential mortgage loans are covered accounts, and as a servicer you may be considered to be “maintaining” such accounts. Unless, however, you are considered to be a creditor, such as by regularly participating in credit decisions, you are not subject to the Rule. However, you may have contractual duties imposed upon you by the lenders for which you provide services that are related to their Programs.

I am an indirect lender — I do not open accounts directly with a consumer but purchase loans in the secondary market. Am I required to have a Program?

If the loans that you purchase would be considered “covered accounts,” you may be required to have a Program. As a secondary market purchaser of loans, however, you may not be considered to “regularly participate” in credit decisions and therefore may not be a “creditor” under the ECOA. In addition, the Rule requires you to address the risks of identity theft in connection with account opening and access. Because you do not originate or “open” accounts but rather purchase them on the secondary market, even if the loans you purchase are “covered” accounts, you should only be required to address the risk of identity theft in connection with account access.

Step 2 — Developing and Implementing a Program

If you are a creditor or a financial institution that offers covered accounts, you must develop a Program to detect possible identity theft in those covered accounts and respond appropriately. The federal banking agencies, the NCUA and the FTC have issued guidelines to help covered entities identify, detect and respond to indicators of possible identity theft, as well as to administer the Program.

Where can I find a copy of the guidelines?

* Federal Reserve Board — 12 C.F.R. pt. 222, App. J
* Federal Deposit Insurance Corporation — 12 C.F.R. pt. 334, App. J
* FTC — 16 C.F.R. pt. 681, App. A
* NCUA — 12 C.F.R. pt. 717, App. J
* Office of the Comptroller of the Currency — 12 C.F.R. pt. 41, App. J
* Office of Thrift Supervision — 12 C.F.R. pt. 571, App. J

Identifying “Red Flags”

What is a “Red Flag”?

A Red Flag is an indicator of the possible existence of identity theft. For example, a Red Flag might be an incorrect or invalid Social Security number (SSN) provided by a consumer applying for a loan. Or, in the case of an existing account, a Red Flag may be an unusual pattern of account usage, such as a credit card being used to purchase an unusually large amount of jewelry, electronics and other easily resold goods.

Does the Rule list the Red Flags?

The Red Flags Rule provides several examples of Red Flags in four separate categories: (1) alerts and notifications received from credit reporting agencies and third-party service providers, (2) the presentation of suspicious documents or suspicious identifying information, (3) unusual or suspicious account usage patterns and (4) notice from a customer, identity theft victim or law enforcement.

How do I know which Red Flags apply to me?

The Red Flags that apply to you depend on a number of factors, including: (1) the types of covered accounts you offer, (2) how those accounts may be opened and accessed and (3) your previous experiences with identity theft. You must consider these factors, as well as various sources and categories of Red Flags identified in the guidelines.

Detecting Red Flags

At which stage of the application process does the Rule apply?

The Rule would apply whenever you detect a Red Flag in connection with an application. This could occur as soon as you receive an application, for example, if the application appears to have been altered or forged or the consumer’s identification appears to be forged or is inconsistent with the information on the application.

Is an SSN check a requirement?

No, but an invalid SSN may be a Red Flag — i.e., an indicator of possible identity theft — and obtaining and verifying an SSN may be a reasonable means of addressing this Red Flag when opening an account. You also may be able to utilize your existing procedures under your Customer Identification Program (CIP) under the USA PATRIOT Act.

How are the Red Flags presented on the actual credit report?

The credit reporting agencies will not identify Red Flags as such on a credit report. However, there may be certain information on a credit report that you determine to be an indicator of possible identity theft and you incorporate into your Program, such as a consumer fraud alert or a notice of address discrepancy. In addition, the Guidelines specify that a credit report indicating a pattern of inconsistent or unusual recent activity might be a Red Flag.

We have stopped taking phone applications and are using the out-of-wallet questions for Internet credit applications. Are we going overboard?

The Rule does not preclude phone applications or otherwise limit the manner in which you may accept applications for covered accounts. However, different methods to open covered accounts present different identity theft risks, and you should consider those differing risks in identifying the relevant Red Flags for each type of covered account that you provide.

Responding To Red Flags

What am I supposed to do when I see a Red Flag?

Your Program should include appropriate responses when you detect a Red Flag. You must assess whether the Red Flag evidences a risk of identity theft, and your response must be commensurate with the degree of risk posed. Depending on the level of risk, an appropriate response may include, for example, contacting your applicant or not opening a new account. You also may determine that no response is necessary.

I have detected a Red Flag in connection with a credit application. Am I prohibited from opening the account?

You must assess whether the Red Flag evidences a risk of identity theft, and your response must be commensurate with the degree of risk posed. You are not prohibited from opening the account, unless the only appropriate response in light of the degree of risk posed by the Red Flag would be not to open the account. In some instances, for example, you may be able to contact the applicant to verify that the application is legitimate.

Would the regulators expect to see a log of detected activity and resulting mitigation?

The Rule does not require you to maintain a log, nor do the Guidelines suggest that a log should be maintained. You are, however, required to prepare regular reports on the effectiveness of your Program, and you also are required to incorporate your own experiences with identity theft when you review and update your Program.

Administering and Updating the Program

A Program must be written, must be approved and implemented by the board of directors, a board committee or senior management, and must include staff training and oversight of service providers. The board of directors or senior management should assign specific responsibility for implementation of the Program, should review reports by staff, and should approve material changes to the Program. Staff should report to the board of directors or senior management at least annually on (1) the effectiveness of the Program’s policies, (2) service provider arrangements, (3) significant security incidents and (4) any recommendations for material changes.

Does the Program have to be approved by the board annually?

No, but the board (or a committee of the board) or senior management must annually review reports prepared by staff regarding your Program and must approve any material changes to that Program.

Can I tie this in with the bank’s Customer Identification Program (CIP) so as not to overburden our staff with more rules to follow?

You may incorporate your CIP procedures into your Program to the extent that it is appropriate. For example, your CIP procedures likely would assist you in detecting relevant Red Flags in connection with new covered accounts but not with respect to existing accounts.

Address Discrepancy Rule

The nationwide credit reporting agencies — Experian, TransUnion and Equifax — are required to notify you when an address in their credit file for a consumer “substantially differs” from the address that you provide for the consumer when you request the credit report. New rules from the federal bank agencies and the FTC require you to confirm the identity of the consumer when you receive an address discrepancy notice from a credit reporting agency. These rules also may require you to reconcile the address provided by the consumer with the address in the credit reporting agency’s file, but only if you regularly furnish information to that credit reporting agency. Fair Credit Reporting Act § 605(h) — 15 U.S.C. § 1681c(h); Federal Reserve Board — 12 C.F.R. § 222.82; Federal Deposit Insurance Corporation — 12 C.F.R. § 334.82; FTC — 16 C.F.R. § 681.1; NCUA — 12 C.F.R. § 717.82; Office of the Comptroller of the Currency — 12 C.F.R. § 41.82; Office of Thrift Supervision — 12 C.F.R. § 571.82.

How do the credit reporting agencies display an address discrepancy?

Each credit reporting agency displays an “address discrepancy indicator,” which typically is simply a code in a specified field. Each credit reporting agency uses a different indicator.

How do we “form a reasonable belief” that a credit report relates to the consumer for whom it was requested?

Following procedures that you have implemented as a part of your Customer Identification Program under the USA PATRIOT Act would satisfy this requirement. You also can compare the credit report with information in your own records or information from a third-party source, or you may verify information in the credit report with the consumer directly.

If a credit report is pulled on a loan applicant who is not our customer, and there is an address discrepancy on the credit report, are we obligated to resolve the discrepancy if the loan is denied?

You are only required to reconcile the address with the credit reporting agency if you “establish a continuing relationship with” the consumer.

We do not regularly furnish data to any credit reporting agency. Are we required to furnish the consumer’s correct address?

If you do not regularly furnish data to a credit reporting agency in the ordinary course of your business, there is no obligation to report correct addresses.

When do we communicate the corrected address to the credit reporting agency?

You must furnish the verified address to the credit reporting agency with the other account data that you furnish to that credit reporting agency for the reporting period in which you establish the relationship with the consumer.

ABA Wants Quick Ruling Against FTC

The American Bar Association is hoping for a speedy — and successful — end to its lawsuit against the Federal Trade Commission, which is getting ready to impose identity theft rules on law firms and other businesses that extend credit.

Lawyers for the ABA filed for partial summary judgment today in the U.S. District Court for the District of Columbia. The motion comes about a month after the ABA filed suit, arguing that the FTC has no authority to regulate the legal profession and that law firms do not qualify as “creditors” under the Fair and Accurate Credit Transactions Act of 2003 and the Equal Credit Opportunity Act of 1974.

“Contrary to the position advocated by the FTC, lawyers and law firms are not ‘creditor[s]’ within the meaning of the [law] simply because they provide legal services prior to receiving payment or because they may permit clients additional time to pay outstanding bills for legal services already rendered,” the motion argues.

Proskauer Rose, led by New York-based partner Steven Krane, is representing the ABA. The bar association wants oral argument on its motion on or before Oct. 23 because the FTC is set to begin enforcement of the new rules on Nov. 1.

The FTC has not filed a response to the ABA’s complaint, and a lawyer for the commission did not immediately return a message requesting comment. The commission has previously said that it does not have legal authority to carve out exceptions to the so-called “Red Flags Rule.”

UPDATE: An FTC spokeswoman responds: “The ABA’s issue is with the law that was passed by Congress, not with the agency that enforces that law.” A response to the ABA complaint will be filed soon, she adds.

The American Bar Association filed a motion for summary judgment in its action seeking an injunction blocking the Federal Trade Commission from enforcing the so-called Red Flags Rule against lawyers.

The motion asks the United States District Court for the District of Columbia to schedule oral arguments before Oct. 23 on its motion, which asks the to rule that the FTC exceeded its authority in seeking to require lawyers to implement identity theft protection programs under legislation applying to financial institutions and lenders such as banks, finance companies and automobile dealers.

The ABA filed suit Aug. 29 to block the FTC’s plan to begin applying the rule to lawyers Nov. 1.