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State Representative Joe Atkins
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4192
For more information contact: Michael Howard 651-296-8873
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REP. JOE ATKINS TAKES ON ELECTRONIC FRAUD
Bill would crack down on online scams, give law enforcement tools to take on criminals
ST. PAUL, MN – When Jody Buell of Burnsville signed up for a reputable online dating site, she never thought she would get duped out of $10,000. But the man she loved turned out to be a scam artist, using the Internet to perpetrate a fraud and take advantage of people like Jody. International, federal, and state laws offer little or no legal recourse for Buell to recover her losses, or bring the scammer to justice.
State Rep. Joe Atkins (DFL – Inver Grove Heights) wants to change that. “Jody Buell’s situation was not an isolated incident," Atkins said. “Literally thousands of cases just like this happen in the Minnesotans every year, scamming innocent people out of millions of dollars – mostly senior citizens. It’s time to do something about it, and offer Minnesotans the protection they deserve from online fraud.”
Reports of electronic fraud in Minnesota are widespread – fraud often carried out by individuals in other countries who use the Internet, email, and other electronic means to effectuate their online scams. According to Jim Arlt, interim director of the Minnesota Department of Public Safety’s Alcohol and Gambling Division, more than 90,000 cases of electronic fraud have been documented in Minnesota since 2007, totaling more than $1 million in losses. But Arlt suspects that is just the “tip of the iceberg.”
“Every day we are talking to people who have been scammed out of thousands of dollars – people who are losing their homes or don’t have money for food,” said Arlt. “The scary thing is this could literally happen to any one of us, or to someone we know.”
Arlt warns that electronic fraud is no amateur sport anymore. Traditionally law enforcement thought of electronic fraud being perpetrated by petty thieves in Internet cafes half-way around the world. While most electronic fraud schemes are carried out overseas, Arlt says that according to international law enforcement officials, organized crime is largely behind the growing wave of electronic fraud.
“It’s like giving the mob access to your bank account with the click of a mouse,” said Rep. Atkins. “This is a serious problem that warrants new and aggressive law enforcement efforts.”
That’s why Atkins has authored legislation this year to crack down on electronic fraud by stepping up enforcement within Arlt’s division. The bill, which has bipartisan support, would expand the jurisdiction of the Division of Alcohol and Gambling to include electronic fraud, helping protect vulnerable Minnesotans from this 21st Century version of the “Flim Flam Man.” The bill is authored in the senate by State Sen. Linda Scheid (DFL – Brooklyn Park).
“Law enforcement officials at the Department of Public Safety are keenly aware of loopholes and lack of coordination that allows this fraud to happen,” Rep. Atkins said. “They want to do something about it – and this bill will give them the tools to do so.”
Atkins’ bill would expand the enforcement powers of DPS, giving the Alcohol, Gambling, and Electronic Fraud Division the authority to issue administrative subpoenas. These subpoenas could be issued to telecommunication providers (or the PUC) to obtain account information for someone the Division has found to be engaging in identity theft or some other form of electronic fraud. The suspect would have to turn over email activity logs, email content, and other information.
“A law is meaningless if you can’t enforce it,” said Atkins. “This bill would give existing laws some teeth, provide law enforcement the tools they need to go after online criminals, and offer some protection for Minnesotans.”
The legislation also addresses money transmitters. While money transmitters are not usually parties to electronic fraud, they are often used by the criminals behind the fraud. Atkins’ bill creates several new requirements for money transmitters that operate in Minnesota, including:
• Money transmitters must designate a specific individual as the recipient of a money transfer for all transactions exceeding $100
• To collect funds, the recipient must provide identification and be at the location specified by the sender
• Transmitters must ask a customer who wishes to transfer money if the transfer is related to fraudulent activity
• If a transmitter becomes aware that a money transfer is related to fraudulent activity, they must report it to the Division of Alcohol, Gambling, and Electronic Fraud
• A transmitter must allow individuals to disqualify themselves from sending or receiving money transfers
Atkins expects the bill to achieve broad, bipartisan support this session.
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Rep. Joe Atkins can be reached by phone at (651) 296-4192 or by email at rep.joe.atkins@house.mn
To reach Jim Arlt, contact Dennis Smith @ (651) 201-7569 or dennis.smith@state.mn.us.
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