Financial Crimes Information

• Credit Card Theft is the taking or obtaining of credit card(s), or credit card number(s), with the intent to use them fraudulently.
• Credit Card Fraud occurs when the credit card, or credit card number(s), are used fraudulently without the consent of the cardholder.
  • IMPORTANT NOTE: If one or more of your credit card accounts has fraudulent transactions, and you still have the physical credit card in your possession, than you have likely become the victim of identity theft. 
  • If someone signed a credit card receipt or draft, paper or electronic, this constitutes a separate offense of credit card forgery. Please ensure you keep copies of any records you have showing fraudulent transactions. 
  • Important information to provide the investigator includes the full credit card number, time, date, and location of the fraud. 

Examples of credit card theft and fraud

• Your wallet is lost or stolen and purchases are made on your credit card without your consent.
• An unauthorized purchase appears on your credit card statement from an online retailer.

• If you give someone your credit card and they charge more than you authorized, this may not be a crime. Many credit card user agreements explain that when you authorize someone to use your card, they become an "authorized user." 
• An authorized user continues to use their card on an account after a couple has split. If you inadvertently enter into an agreement with a company and they charge your credit card monthly, you have a civil matter with that company. No crime has been committed if you failed to read the small print. 

• Credit Card theft and fraud has several jurisdictional issues that may cause your case to be redirected to another jurisdiction. As a rule of thumb, a report should be filed where your credit cards were lost or stolen, and where they were fraudulently used. This may mean multiple reports are filed with multiple jurisdictions.

If you are an Arlington County resident and your credit cards were used fraudulently, file an online report and we will provide you with more information. Often times, a police report is needed by your financial institution to prove a fraud has occurred.

• Cancel your accounts right away. Call your financial institutions and ask to speak with a fraud specialist. Make sure you document the details of your phone call and obtain their contact information. Follow up with them in writing by filing an affidavit of fraud (usually provided by them). 
  • Make sure you send all information in a certified letter to the financial institution. 
  • Make sure to request in your letter that the company notifies you in writing when they have resolved your needs. 
  • File a police report with the correct jurisdiction. 
  • Contact the three nationwide consumer credit reporting companies and place a Fraud Alert on your credit report.
  • Once you place a fraud alert, creditors are required to verify the identity of a person claiming to be you, before extending credit to them. 

• Sign your credit card with permanent marker. 
• Maintain possession of your credit cards at all times. 
• Check your credit card statements for fraudulent transactions. 
• Keep credit card numbers and records in a safe place. 
• When making purchases online, only use trusted, reputable sites. If it sounds "too good to be true" than it probably is. 
• Do not send photos of credit cards to anyone. 
• If you lose or misplace your credit card, cancel it immediately. 
• If you pay with a credit card attempt to keep it in sight if possible. 
• If using an ATM/debit card. If possible use the credit feature, this can generally be activated by pressing enter on a keypad when it asks for a pin number.  

Identity Theft occurs when someone uses your personal information for financial gain. 

• Personal information is defined as social security number, date of birth, account numbers, or unique identifiers specific to you. 

Examples of Identity Theft are: 

• A person uses your social security number for employment purposes. 
• Someone opens an unauthorized financial account using your name and date of birth. 
• Someone creates, buys or possesses a fake driver’s license with your name, address and date of birth to use in financial crimes. 

Someone using your address or phone number without your permission. 

• Your personal information as defined above MUST be used for financial gain in order to pursue identity theft charges.

• Typically, you will need to file reports with multiple law enforcement agencies when you are the victim of identity theft. 

• If you found charges or accounts that exist in other jurisdictions, you should file a report with them. 
  • If you are an Arlington County resident, you may file a report with our Department even if your personal information was not used in the county. 

• Cancel any compromised accounts right away. Call your financial institutions and ask to speak with a fraud specialist. Make sure you document the details of your phone call and obtain their contact information. Follow up with them in writing by filing an affidavit of fraud (usually provided by them).
• Make sure you send all information in a certified letter to the financial institution. 
• Make sure to request the company to notify you in writing when they have resolved your needs. 
• File a police report with the correct jurisdiction(s). 
• You can obtain a free credit report from the Federal Trade Commission to find any anomalies or unauthorized accounts using your identity. 
• Contact the three nationwide consumer credit reporting companies and place a Fraud Alert on your credit report. Once you place a fraud alert, creditors are required to verify the identity of a person claiming to be you, before extending credit to them. 
• Contact the Social Security Administration if your social security number has been compromised. 
• Visit the Federal Trade Commission’s website for Identity Theft. The Fair Credit Reporting Act (FCRA), section 609(e), spells out rights for victims of identity theft, as well as responsibilities for businesses. 

NOTE: If someone received a traffic summons using your identity, contact the law enforcement agency and/or the officer that issued the summons for assistance. 

• Monitor your credit reports. 
• Avoid phishing emails/text messages (fraudulent emails/texts from a company you may trust who ask you to click on a link for further information).  All of which ask for your password, username, bank account, address, date of birth, social security number, to "confirm" your identity. Familiarize yourself with the ways to recognize and avoid phishing scams.
•  Shred paperwork with your personal information on it. 
• Be suspicious of irregular communications from your financial institutions, Internal Revenue Service and utility companies. Legitimate businesses will provide you with a safe method of transferring information and often request it in writing via a letter in the mail. 
• For additional resources on Identity Theft, consult the Federal Trade Commission website 

Recovering from Identity Theft | Recuperándose del robo de identidad

Check Fraud covers three broad categories.

Bad Checks 

• A bad check is a check that is given for payment for goods, cash, or services and is returned by the bank due to insufficient funds, or because the account was closed
  • Example: A person wrote you a check for $3,500.00 to pay for lawn services and supplies. Your bank returned the check to you saying the party had insufficient funds to cover the check or that the account was closed.

Forged Checks

 A forged check is one that someone has forged the signature of an authorized party, or altered the check. 

• Example: Someone steals one of your personal checks and utters it for cash by signing your name on the bottom without your permission. 
• Example: you write a check for $25.00 and it is later cashed as an altered check which reads $2,500.00. 

Counterfeit Checks

• A counterfeit check is a check that a bank or financial institute has determined is not real. 
  • Example: A person wrote you a check for $3,000.00 to pay for an online purchase of furniture. Your bank later contacts you and relays that the check was fake.

NOTE: For prosecution purposes a counterfeit check is considered a forged check. 

• A check in payment of accounts due for a past debt. 
• A check given in payment for a previously given bad check. 
• Postdated checks. 
• A check received through the mail. 
• A check given in payment for rent. 
• A check that you "hold" at the request of the maker. 
• Two party check. (Unless it can be established that the endorser is a party to a scheme to defraud.) 
• A check that the holder accepts after a disclosure by the maker, at the time of delivery of the check, that there are insufficient funds in the account to cover the check. 
• Stop payment checks. 
• Partial payment checks.

If you received a bad check, follow these steps:

• Send a letter to the check writer informing them of the bad check, and demand payment. This letter must be sent to the address on the check, via certified mail return receipt requested, before charges can be sought for the individual. The Code of Virginia requires the 5 day demand letter to be sent and authorizes charges even if the person refuses to accept the letter. 

Demand Letter Template

• Make a copy of the demand letter and save your postal receipt. Pictures of the addressed envelope, with the return receipt attached are helpful.

• The U.S. Postal Service will deliver your return receipt with signature confirmation or return the letter unclaimed. Keep this receipt as it will be needed for prosecution. 

• File an online police report, and provide pictures/copies of the demand letter and receipt. 

• Contact your financial institution and let them know you have been the victim of check fraud. 
• Place a stop payment on any additional checks that may have been compromised or stolen. 
• Close all accounts that you feel could be compromised. Follow-up every phone call in writing. 
• Ask for verification that the disputed account has been closed and the fraudulent debts discharged. 
• Keep copies of documents and records of your conversations. 
• Have your bank notify the check verification service in which they do business. 
• Contact the three nationwide consumer credit reporting companies and place a Fraud Alert on your credit report. Once you place a fraud alert, creditors are required to verify the identity of a person claiming to be you, before extending credit to them. 

• A person commits embezzlement when they wrongfully take, steal, or use property belonging to another by virtue of one’s office, trust, or employment.
  • Examples: 
    • A corporate admin adds company funds to their own bank account that were supposed to be sent to a not-for-profit organization. 
    • A grocery cashier takes small amounts of money out of his/her cash drawer for personal use. 
    • A supervisor is given a company credit card to purchase supplies for a company event. The supervisor uses the card for personal use instead of its intended purpose. 

The Arlington County Police Department can investigate crimes that occur within the jurisdiction of Arlington. If the crime occurred outside of Arlington County, you should contact that jurisdiction for prosecution.

• File an online report with the Arlington County Police Department.
• Save all documentation that leads you to believe a crime has occurred. This could include bank statements, emails, credit card use agreements, contracts, text messages, and/or receipts. 

• Accountability and oversight are key to identifying theft. Have checks and balances in place. 
• Have more than one person who has access to, and reviews financial statements. 
• More than one person is needed for purchase authorization. 
• Require receipts with each purchase.
• Make sure there is a clear understanding of company policy and what is and is not acceptable. 

A person has committed the crime of Construction Fraud when they have received an advance (money, merchandise, or other thing of value) to perform construction or improvements on a property and then failed to perform the work. Additionally, that person must have failed to return the advance after given sufficient notice.

• Sufficient notice is defined in §18.2-200.1 of the Code of Virginia. Contractors must be given the opportunity to return the advance before criminal proceedings can be initiated. A certified “15-day demand letter” must be sent to the contractor with return receipt requested.

Before you can report the crime of construction fraud, you must send the 15-day letter!

An example of the 15-day demand letter.(PDF, 3MB)

• Often times, issues with your contractor must be worked out in Civil Court, and not in the Criminal Justice System. These cases are complex and often difficult to prosecute. Generally, the following information will have to be proven in this type of case: 
  • Proof that you paid to have the work done (cancelled check, signed credit card receipt or a cash receipt). 
  • Proof that there was an agreed upon start and completion date for your work. 
  • Proof that a written contract exists. 
  • Finally, you must be able to prove that there was fraudulent intent on the part of the contractor. 
• If you are a subcontractor who was hired to complete a job, and you were not paid, you could be the victim of a crime. The Code of Virginia § 43-13 requires contractors to pay their subcontractors with monies they have received from the property owner. If you believe you are a victim of this crime, file a report. 
  • If a contractor performed some of the work, but did not complete your job, your complaint may be civil in nature; however, it may also constitute a crime. You need to file a report and allow an investigator to review the details to make this determination.

An example of construction fraud is: 

• You give a contractor an advance to make roof repairs. He or she does not perform the work and has failed to return the deposit after the 15-day letter. 

If a contractor completes all of the work, but you are unhappy with the result, a crime has not been committed and it will not be investigated. Your complaint is civil in nature. If you have a civil dispute with your contractor, consider taking the following steps. 

• Talk with the contractor about your dispute, many issues can be resolved at this level. Consider sending your contractor a certified letter explaining the problems you have with the work that was done and explaining what you expect to be done about it. 
• Contact the Better Business Bureau. 
• Consult the Consult the Federal Trade Commission Bureau of Consumer Protection. 
• File a claim with the Virginia Contractor Transaction Recovery Fund. 
• Contact the Virginia Department of Professional and Occupational Regulation (DPOR) who can investigate licensing and building code violations. 

• Homeowners should be cautious of door to door solicitors offering home improvement services. These situations can be scams! If the deal sounds “too good to be true” then it probably is!
• Always ask to see their contractor’s license. Do you really want to do business with someone who is not properly licensed or insured? 
• Always request a contract defining the work you want done, the start and end date of your job, and how much you are willing to pay for it. 
• A reputable contractor will always provide references and get their own building permits. If your contractor is asking you to “cut corners” than that should tell you something about their business ethic. Use caution! 
• Avoid using cash as a down payment. Use alternative funds (personal check, cashier’s check, credit card, money order) which aids in documenting the down payment (via a receipt). 

Conduct a license inquiry on a contractor.

The location of the property where the work is supposed to occur is the jurisdiction where the crime has been committed. Example: If you sign a contract in the City of Alexandria to have work done on a property in Arlington County, the Arlington County Police Department would investigate the allegations of construction fraud. 

Department of Professional and Occupational Regulation

Code of Virginia - Applicable Laws related to Construction Fraud

• False pretense is defined as taking or obtaining property, money, or signature of another by the use of tricks, lies, or deception. 
  • Example:You are approached in a parking lot by a person who tells you that they have a winning lottery ticket but can’t cash it. They offer to sell you the ticket, and after the fact you learn the ticket is not real. 

Most scams and cons all involve false pretense.

Being overcharged for work is not false pretense.

• Under Virginia criminal code §18.2-178, the following elements must be established. 
  • There must be an intent to defraud. 
  • There must be an actual fraud. 
  • Some form of false pretense, false representation, trick, or deception must be used to facilitate the fraud; and,
  • The false pretense, false representation, trick, or deception must be in part the reason that the fraud was successful. 

The Arlington County Police Department can investigate the crime if it occurs within the jurisdictional boundaries of Arlington County. If the crime occurred outside of Arlington County, you should contact that jurisdiction.

• File a police report with the correct jurisdiction. 
• You can obtain a free credit report from the Federal Trade Commission to find any anomalies or unauthorized accounts using your identity. 
  • Contact the three nationwide consumer credit reporting companies and place a Fraud Alert on your credit report. Once you place a fraud alert, creditors are required to verify the identity of a person claiming to be you, before extending credit to them. 
• Close any accounts that you know have been compromised. 
• Call your financial institutions and speak with a fraud specialist. Make sure you document the details of your phone call and obtain their contact information. 
• Follow up with your financial institutions in writing. Make sure you send all correspondence by certified mail.