Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: More files believed stolen Date: Sat, 21 Nov 92 17:35:41 EST Message-ID: \SE A \HD More files believed stolen \BY Paul M. Rodriguez \CR THE WASHINGTON TIMES The House credit union was flooded with phone calls yesterday from account holders worried about stolen confidential records as the number of known pilfered files doubled. Credit union officials now believe that the stolen records, including sensitive credit reports, affect at least 24 accounts caught up in the scam involving fraudulent loans, credit cards and other financial transactions in Baltimore, Howard and Anne Arundel counties, and the District. "At this time, we'll know more as internal auditors continue to review the [file] jackets and people call in" complaining of problems with their credit, said a senior manager for the Wright Patman Congressional Federal Credit Union. The senior manager, speaking on condition of anonymity, also said that scores of people - from lawmakers to members of the press who use the credit union - called yesterday asking for information about the thefts and whether their accounts were tampered with. Robert Hess, president of the 30,000-plus-member credit union, said yesterday that he spent most of the day on the telephone handling many of the calls and numerous inquiries from the media. The Washington Times reported yesterday that the credit union - which includes lawmakers, congressional staff, police and press - was tipped off to the thefts in late September by an employee at Norwest Financial Co. in Baltimore, where some of the stolen credit reports were used in an attempt to secure fraudulent loans. The stolen records were removed from secure files in locked rooms located at House Annex II, which is one of several office buildings patroled 24 hours a day by the U.S. Capitol Police. Mr. Hess said in an interview Sept. 19 that it was his understanding - after talking to agents at the U.S. Secret Service and the FBI - that the stolen credit reports were being used to secure "personal-type loans" in amounts of $1,000 to $2,000 and to obtain credit cards. He also said that, based on initial audits of the credit union's records, no lawmakers' or senior congressional staff files were rifled, and that no current employees of the credit union were involved in or knew of the thefts, which investigators believe happened during the summer. Congressional and federal law enforcement officials said yesterday, however, that without going through each individual account file, it is impossible to be certain whose confidential financial records were stolen. "Look, we thought it was just a few at first, then about a dozen, and now it's more," said one credit union employee familiar with the affair. "We think we know but we really don't." The employee's statement helps explain some questions being asked by congressional officials puzzled by a letter mailed last week to more than 60 credit union account holders alerting them to the thefts. The letter, a copy of which was obtained by The Times, said in part that the stolen credit reports compiled by Equifax Credit Information Services of Atlanta, "were removed from our offices without the authorization or knowledge of any credit union employees. . . . "The information in some of these credit reports was then used in attempts to obtain fraudulent loans and credit cards from various lenders," the letter said, noting that the credit union is "working with representatives from several law enforcement agencies to resolve this problem and determine who is responsible." Credit union officials said they sent out the letters assuming that the stolen documents were from a batch of loan applications processed about six months ago over a two- or three-day period. "To play it safe," said one senior credit union official, "we decided to send out warning notices to everybody who filed any loan application with us" over that time period. Credit union employees could not explain why it took more than a month to mail the letters and why the general membership of the credit union was not notified earlier. "They just should have sent out a letter to everybody and then let each person call the credit bureaus," said one credit union member who said he is one of the 60 or so account holders who got one of the letters this week. Federal law enforcement officials, who could not comment directly about the case, said the thieves could use the confidential credit reports to apply for not only loans and credit cards but also telephone services, auto rentals, and housing and appliance purchases, among other transactions. "What makes this case so intriguing is that physical documents were taken from secure files," one law-enforcement official said. "Normally what happens is that a computer hacker taps into the electronic files to steal these kinds of records. "In this case, you have someone or some group of people actually breaking into files that should be under lock and key and stealing the files," the law enforcement offical said. The credit union's most recent audit report showed it was operating in a sound manner. The only hint of scandal involving the credit union emerged earlier this year amid allegations that congressional officials may have gotten loans from the credit union to cover bad checks and cash shortages at the now-closed House bank and scandal-plagued House post office. Wright-Patman officials earlier this year denied allegations and rumors that the credit union may have been involved. Federal law enforcement sources said two ongoing investigations - one by a special prosecutor for the Justice Department and one by U.S. Attorney Jay B. Stephens - are probing whether any of the credit union loans were used to cover up improper activities at the former bank and post office. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM