Sunday March 26, 2000

Criminals bank on computers

Advance technology, high-quality paper make it easy to produce bogus checks

BY DEBORAH LAVERTY Times Staff Writer

Criminals are cashing in on the latest computer technology to steal money from banks and retails businesses throughout Northwest Indiana. The Lake County Prosecutor's office even calls it the "crime of the Year 2000." Bogus, computer-generated checks are being passed at an alarming rate at banks throughout the area. Merrillville, with its sizable commercial zone, has been particularly hard hit. From the cases reported so far, the focus seems to be the U.S. 30 corridor.

"Technology has made it easier," said Mary Phillips, a security officer for Centier Bank in Crown Point.

Advanced computer programs and high-quality paper on shelves of countless stores are the stuff of the professional-looking checks being circulated.

"The possibility for it is great," Phillips said.

Phillips, who keeps abreast of the issue by meeting monthly with law enforcement officials and reading local newspapers and national journals, said the problem is on the rise across the country.

"More money is being stolen by criminals with the pen than with a gun, And that will rise," Phillips said, paraphrasing a recent article she had read.

Merrillville Det. Cpl. Nicholas Bravos said his department has filed charges in 16 forgery and fraud on a financial institution cases since Feb. 22.

In roughly half of the cases, those charged were attempting to pass checks made on computers.

"One of the most frequent cases is computer-generated checks made on a home computer and presented to a bank," Bravos said.

Bravos, who like Phillips, networks with other police departments and bank officials on a monthly basis, said Merrillville isn't alone with the problem.

"All communities are being hit, but because Merrillville is a large metropolitan area and has a large commercial area, it's been hit harder," Bravos said.

Police have been successful in catching and prosecuting those passing the checks, he added.

"They may think they are getting away with the crime but, in the end they will be caught," he said.

Criminals prosecuted and found guilty of fraud or forgery, both Class C felonies, can expect to do jail time of between two to eight years and pay a fine of not more than $10,000, Bravos said.

Although Hobart has a strong retail and banking base, that city has had only one reported case so far, Hobart Lt. Leo Finnerty said. It happened last week, when a woman tried to cash a check at a drugstore. In a move not unlike what those passing counterfeit money do, the woman first purchased a few small items before asking that the bogus check be cashed, Finnerty said.

He doesn't discount the fact that Hobart will see more of the cases in the future.

"It's in the beginning stage, but is something we'll be seeing. They (the computer-generated checks) are starting to pop up," Finnerty said.

Schererville Det. Richard Massey said the computer-generated checks are among the frauds his department has seen in recent months.

"It (computer-generated is all over the area but one that comes and goes. Right now we have one," he said.

He spends increasingly more time dealing with fraud and forgery-related cases, he added.

"It's mostly what I do, spend a lot of time chasing bad paper," Massey said.

Jean Costello, a supervisor in the check division of the Lake County Prosecutor's office, agrees that her department is seeing an increase in the number of computer-generated checks.

"It is the crime of the year 2000," Costello said.

So what can a consumer do to protect himself?

Watch for the red flags, Costello and Merrillville Police Cmdr. Timothy Wardrip said.

The checks the Merrillville police have seen come in a variety of colors including pink, blue and green.

Most of the checks have a distinct dark border at the top, he said.

Phillips said professionals trained to know what they are looking at can spot the bogus checks easily.

"If you aren't used to looking at them on a regular basis, they do look a lot like regular checks, but if you do look at a lot of checks, they will stand out," Costello said.

Phillips said bank tellers at Centier must go through security training to help them spot bogus checks and keep aware of what is being circulated.

And, on an growing basis, banks are now taking fingerprints of people cashing checks. Wardrip said the prints can help police track those passing the bogus checks.

"The key is being timely and proactive and communicating right away with police," Phillips said. http://www.thetimesonline.com/asp/pg_fullstory.asp?newsID=46179&PageNo=2&wImg=1&Desk=News

-- Martin Thompson (mthom1927@aol.com), March 26, 2000