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Avoid Becoming A Victim Of The Credit Con

Identity Thieves Now Moving Toward Loan Fraud

CHICAGO (CBS) ― The numbers are staggering. More than 10 million people each year are victims of identity theft, and the losses are estimated at more than $50 billion nationwide.

Now, the CBS 2 Investigators found identity thieves are moving from credit card fraud to even more lucrative loan frauds.

To pull off the big credit con, they need phony IDs of people with good credit. As Pam Zekman reports, they're easy to get.

Within seconds of driving into a West Side shopping center, you'll see the hand signal. That signal means fake IDs. Our undercover researchers were able to buy them in broad daylight.

"Go in as one person come out as someone else," said our amazed undercover agent.

You come out as someone else who can use the IDs to commit loan fraud.

"It's bank robbery without a gun," said Kurt Pfotenheur with the Mortgage Bankers Association.

The Mortgage Bankers Association is not surprised.

"You'll find fraudsters stealing an identity and along with that identity stealing a credit rating," Pfotenheur said.

That's what happened to Eufemio Cordoba, who's worked 15 years as a welder and was proud of his good credit rating.

"I think he destroyed my credit," Cordoba said.

And then there's Ernest Ochoa, a warehouse supervisor, who is also a victim of the same identity theft.

"An illegal alien is using my credit to live the American dream," Ochoa said.

He's talking about Tomas Tlatenchi, a man of many identities.

In 2003, Tlatenchi got probation after he tried to get a $15,000 loan using a fake drivers license and Social Security card in the name of Luis Pena.

Now, he's apparently succeeded, using fake IDs in the names of Cordoba and Ochoa. He got more than $1 million in loans.

"At least three home mortgages and ten vehicle loans in other people's names," said Philip Cappitelli with the Chicago Police Department.

"I got ticked off because how could somebody give somebody a loan using someone else's identity," Ochoa said.

In a bizarre twist, Tlatenchi actually called Ochoa and told him how he started the process of getting the loans.

"He had told me that he had bought my identity at 26th Street in Chicago for $1500," Ochoa said.

That's how the 2 Investigators ended up at the shopping center off 26th Street. Police know all about it. They've been making arrests there for years, but that hasn't stopped the fake ID peddlers.

"It is a very profitable enterprise," Cappitelli said. "Somebody will take the place of people we arrest."

Within seconds of our undercover cameraman and researcher entering the lot, one of the men offered them whatever IDs they needed.

He instructed her to write down a name, birth date and nationality she wanted to use. He also said they had Social Security numbers available.

Just hours later, CBS 2 researchers picked up their IDs, paying $220 for a fake Social Security card and a permanent residency card.

2 Investigator Pam Zekman confronted workers, who denied selling phony IDs.

"We've watched you all day long. You've been signaling people to come over and talk to them and selling them phony identification," Zekman said.

Combine phony identification using the identity of someone who has good credit with made up financial records and you have what Pfotenheur calls "all of the ingredients to mix up a real fraud stew."

CBS 2 couldn't reach Tlatenchi for comment because he's now in custody on one forgery charge. Additional charges are expected soon as city, county and state agencies figure out how many identities he stole, how many loans he got and who else was involved.

If you think your identity has been stolen, contact the Federal Trade Commission for a copy of their identity theft pamphlet.

You can contact the FTC at 1-877-438-4338 or Consumer.gov

The pamphlet contains detailed information on what to do starting with filing a fraud alert with the following consumer credit reporting agencies:

Equifax: 1-800-525-6285
Experian, 1-888-397-3742
Trans Union, 1-800-397-3742

If you file a fraud alert, you're eligible for a free copy of your credit report which you should check for fraudulent entries. If fraudulent entries exist you should also file a police report with the appropriate agencies listed in the pamphlet.

(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)