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By Richard Harer
Never in our history has there been greater and quicker access to public record information data. As one major public information database company put it in their brochure, “Business has always been competitive. And the winners are almost always those in command of the right information.” A multitude of database providers have made access to this information simple, quick and as accurate as possible. Not only that, the proliferation of database services has also made information more competitive and affordable.
What does this have to do with investigating fraud? Plenty. Never before has such a cornucopia of public record information been available to the fraud investigator. More importantly, the investigator can access this information without leaving his/her desk, significantly reducing the amount of leg work previously needed to develop the same information. This frees the investigator up to concentrate on the more important tasks of fighting fraud.
“Time is money” is always applicable in both the private and public fraud fighting sectors. Most investigators who develop ways to manage their time more effectively become more effective.
All of us know that fraud is on the rise. The “good news” is that the fraud investigator has the advances of technology as a “weapon” to fight fraud. The “bad news” is that the fraud artists do too. You can bet they are going to hone their skills in using technology to their benefit.
Who should use computer databases for fighting fraud? The answer is simple: Any investigator who intends on becoming more effective and proficient at fraud fighting needs to know something about computers and computer databases. Not everyone has to use them to do their job effectively. I am sure many investigators have gotten by without them during the past five years and done so successfully.
However, it is very evident that “times are changing.” The investigators who do not learn something about computer databases and what is available may find themselves hitchhiking on the information superhighway.
The fraud investigator must be able to interpret the meaning of the information in a particular investigation. Misunderstanding or misinterpretation may cause serious consequences in certain instances. Certainly there have been documented cases of “bad faith” resulting from the misinterpretation or misapplication of the computer-generated database information. The fraud investigator needs to know where the information is derived, what it means and how to use it.
Should every fraud investigator become a proficient on-line user? Not necessarily. Others may be more proficient at data retrieval. There may be someone in the office who has an aptitude for it as well as a certain amount of computer dexterity. But even the non-users need to know what information is available on-line so they can properly communicate their needs to the on-line user. They need to know or learn as much as possible about the application, implication and interpretation of the data. They should also be able to direct the on-line user as much as possible to minimize the time and cost of frivolous, or inapplicable, searches.
What should the fraud investigator do to get started? How can the fraud investigator find out if he should use on-line or other database information providers? Ask someone who has “been there, done that.” Try to find someone who has nothing to gain by your asking. If you do, ask the information broker or vendor the benefits of using his company versus a private investigator. Ask the on-line vendor the advantages of using his service versus the information broker or private investigator; and so forth. It is also important to read about it. Do your homework!
I got started by reading a book entitled, “How to Investigate by Computer,” by Ralph D. Thomas (512/928-8190). I also began using a fax-in/fax-back information broker service on a short-term basis, until I became familiar with my particular needs and the best available services.
Many on-line services also provide free demonstrations and allow you some free usage/time. All the major database providers have extensive reading material that they will happily mail to you (whether you want it or not).
Attend seminars or workshops. Many companies and organizations provide them. BRB Publications also publishes “The Source Book of Public Record Providers,” which profiles over 122 proprietary databases, 35 CD-ROM products and much more. Call BRB at 1-800/929-3764.
What equipment do you need to get started if you decide to go on-line? You will need a computer and modem. Nearly any size or type of computer can be used. Most of the major companies require Hayes-compatible modems. You will also need a telephone line, which should be “dedicated” to the computer. You can use your existing telephone line, but I would strongly discourage it. You will also need a printer for the computer. This is a matter of taste or preference, but most of them are acceptable and compatible. You will also need software and a hard drive. Most of the major providers will either sell or give you the necessary communications software. If not, they will recommend a typical communications software package, such as “Procom.”
The major providers have very experienced technical support staff members who can answer most questions regardless of your limited knowledge of computers. There may also be someone in your office who has an aptitude for computers and who may be able to assist you in getting set up.
Who has the best database service? A “seasoned” database user will use his/her knowledge to get the best possible prices and the best possible on-line information. The information superhighway is an information supermarket, where prices and products must be carefully compared.
A Statewide Real Property Search varies in cost among providers by as much as 1000 percent. Much of the disparity is attributable to sellers of information versus the compilers of information, much like buying wholesale or retail.
However, there are other important factors to keep in mind when selecting the databases which best suit your needs. For example, most major vendors require an initial set up fee ranging as high as $500, and as low as $150.
Some major vendors have a monthly minimum usage fee that you will be billed for regardless if it was used at all. Investigator on-line time is also an important factor, varying significantly and depending upon unexpected delays, glitches or numbers of searches performed. In addition, the information then needs to be supplied to the requester via report, mail, fax and/or phone.
Another important factor is the “user friendliness” of the on-line database service. Some are less friendly than others, causing the user frustration, lost time and useless charges.
Most problems can be avoided by requesting free on-line demonstrations and some free training time before subscribing. Most major vendors will provide this.
In my opinion, and that of others I have spoken with, the following on-line database companies can be recommended:
CDB Infotek – CA (800) 708-2000
– Nationwide (800) 992-7889
Prentice Hall On-Line – (800) 333-8356
REAL PROPERTY DATABASES
TRW Redi Property Data On-line (800) 345-7334
Dataquick On-line (310) 306-4295
OTHER DATABASES: As mentioned, there is a large assortment of databases to choose from. Many of them have their own particular benefits; lower prices on specific searches or search combinations, searches not available on other on-line databases and other unique features.
For example, DNIS (1-800-299-3647) in Texas has recently begun marketing this database as offering 160 million records nationwide or over 85 percent of the over 16 population. It has some unique search abilities and interested parties should request a free on-line demonstration.
Another growing area of public record database information is available on CD-ROM. By purchasing discs, you can go fishing for public record information and have no on-line or per search charges. A recommended carrier is Merlin Information Services (1-800-494-9901).
There are many, many other on-line information sources, but not all of them can be considered public record databases. For example, the National Insurance Crime Bureau (NICB), the Property Insurance Loss Register (PILR) and the Central Index Bureau (CIB) are on-line databases available to most insurance carriers.
There are many proprietary databases available to federal, state, local government and law enforcement agencies. These databases are not available to the private sector or insurance company fraud investigator. When in doubt as to the source of data, ask for the computer printout and ask the supplier if it was obtained legally. If necessary, get their response in writing.
When should the fraud investigator use computer databases? Whenever possible. Computer databases are a powerful tool (or weapon) in fighting fraud. Use them whenever they can save you time and money. Use them effectively and efficiently.
However, remember that computer databases are only a tool. Like all tools, they have their limitations. For example, the databases will generally provide you with index information only. The fraud investigator still must go to the appropriate records center and review the files or documents. The investigator must still determine whether the indexed records can be identifiable with the subject of his/her investigation. The investigator must still analyze the records and evaluate their significance. In other words, the fraud investigator has not been eliminated and never will be.
Opportunities for error can also exist when using computer databases. For example, exact name spellings (first and last) are generally required when conducting searches. A misspelled name may result in a “no hit,” when records may actually exist under a slightly different name variation.
For example, when I entered the name of a company called “National Medical Enterprises” while conducting a civil index search, it came up with a “no hit.” I discovered that the database will abbreviate various company names so I resubmitted the request under “National Med” using a summary/detail search and came up with many possibilities.
I found out it may also be beneficial to perform a search with an uncommon last name of an individual without including the first name. Once again, this may depend upon the particular search and database company.
How can databases be used to fight fraud? The possibilities of using computer databases to fight fraud are endless. You are limited only by the fraud investigator’s database resources and his/her knowledge of how to use them. This article cannot possibly cover the enormous amount of database searches, resources and training necessary to become proficient. This will require time, patience, curiosity and an appetite for learning. Most fraud investigators I know have these characteristics.
Do as much homework as you can. Learn about public record availability. Keep handouts, printouts, brochures, manuals, documents and handwritten notes of information available. Get as much on-line training as possible. Read as much as possible about the various databases and their applications. Ask questions. Most importantly, go on-line and start searching. Just remember, there will be no red lights or sirens going off that will warn you of fraud. No odors will emanate from your computer. Some fraud artists may have been successful in eluding the public record “paper trail” available on-line
Do not rely solely upon the accuracy and reliability of the on-line information. Do not stake your professional reputation as a fraud investigator on the on-line information. I would never stand before a judge with computer printout in hand and try to convince him of its contents. “Trust, but verify” should be the fraud investigator’s motto.
As Winn Schwartau, author of “Information Warfare” put it, “To the future generation of cybernauts who will be born, live, breathe and die in cyberspace. If we do our job right, it will be a most pleasant place to spend one’s time.”
Richard Harer is the Manager of Specialized Investigations in Van Nuys, CA.
© Copyright 1995 Alikim Media