On the hunt for ID thieves

We’ve infiltrated a high-tech den of thieves, an Internet underground at the heart of an epidemic of crime. It’s a place where people’s stolen identities are bought and sold every minute, every day.

We’ve even lured some of the thieves to our own online store, where they’re buying popular electronics items with stolen credit cards.

But what the thieves don’t know is something else is  coming along with the packages—something  they surely don’t expect: Dateline’s hidden cameras.

As we criss-cross the country making deliveries, the first thing we discover is that some of the people seem genuinely surprised to be getting our packages.

One Pennsylvania man doesn’t seem to know anything about the expensive video game he’s getting.

Hansen (on hidden camera): So why would stuff be coming here if you’re not ordering it?

Joseph: I don’t know.  I’m trying to figure that out myself.

So what’s going on here? Authorities say some crooks have packages delivered to other people’s addresses, especially when they think those people will be away. Then the thieves intercept the packages without the homeowners ever knowing.

Could that be the case with this package?   It’s a Sony Playstation from our online store - ordered with a stolen credit card and on its way to Savannah, Georgia and a woman named Angela Vater.

So, as “Chris” from “CH delivery,” I head to her door, where I find an unusual note.

“Absolutely no packages to be left at my door or signed for…”

We decide to knock, anyway  to find out what’s going on. Remember, she thinks I’m the delivery man.

Hansen (as delivery): Hey.  How are you?

Angela Cater: Hi.

Hansen: I saw your sign, but I just wanted to double check.  I have a package for you.  For Angela Cater?

Before we can even explain what’s in our package, the woman inside says she doesn’t want it.

And listen to the reason:

Cater: I ’m not gonna accept anything, ‘cause I don’t know for sure that it wasn’t purchased with a stolen card.

Hansen: A stolen card?

Cater: And I didn’t order these things.

Angela Cater, a single mom with four young kids is already suspicious about the packages that have been flooding her house.

Cater: Look at this crap....

Hansen: Wow.

There’s an entire side room filled with boxes. And, after I tell her I’m really from Dateline, she invites us to take a closer look—digital cameras, computer equipment, home theaters systems, marine radios, expensive shoes... and more from retailers all over the country.

Cater: Check this out.  When I open it up, is one heck of a nice watch.

Hansen: Wow.

Angela says she became suspicious after she got a phone call from an investigator who suggested that some of the stuff was bought with stolen credit cards.

But these packages weren’t delivered by mistake, because angela knows who ordered them: a man from London named “Paul.”

Cater: He said he had electronics business overseas.  And that these would be for his business. He wants me to send it, he said an address for a South African store.

Hansen: For a South African store.

Cater: Yes.

She says she agreed to accept his packages because Paul isn’t just any friend.

Hansen: Who is Paul Desmond?

Cater: Paul Desmond is my fiancé.

Hansen: Your fiancé.

Angela says she met Paul on the Internet. He’s even sent her this picture and asked to marry her.

Cater: And the next thing you know, he’s “Let’s get married.  You know, I really love you.  I miss you.”  And it’s mushy, mushy all the time.

Angela has picked out a wedding dress. And some of Paul’s merchandise has been shipped to her, addressed as if they were already husband and wife.

It looks to us as if Angela is a pawn in an international theft ring. But is she alone?

Clear across the country we make another undercover delivery to Porterville, California, to Vickie Beebout another single mom.

It’s a package of electronics ordered with a stolen credit card, from that online store we created.

And guess who the stuff’s addressed to?  A man named “Paul.”

Hansen: This one is an X-Box 360.  Now does Paul Williams live here?

Vicki Beebout: No, right now he lives in London.  But he’s coming over in January.

Turns out, Vicki Beebout also met her “Paul” over the Internet.

And, not surprisingly,  he’s been flooding her with packages too. And Vickie’s gone a step further than just receiving packages, she’s actually been re-shipping them overseas.

In fact, we saw DHL picking up one bound for Africa.

And when we ask Vickie to show us a picture of her Paul, we see a familiar face: Angela Carter’s "Paul Desmond."

And guess what? He wants to marry Vicki too. Turns out “Paul” is engaged to two different women on opposite sides of the country. And who knows how many others in between.

So why would international thieves want to trick women into accepting and reshipping so many packages?

Experts says it’s because many American retailers refuse to ship overseas, so, to collect their loot, the identity thieves need a middleman, a so-called “drop,” somebody in the United States who can accept a delivery, then forward the stolen merchandise.

That’s apparently how people like Vicki and Angela are being used.

And if a thief doesn’t already have a drop site, Dan Clements says it’s easy to buy one in one of those criminal chat rooms.

Dan Clements, Card Cops: So here I’m saying, “You want a valid credit card?”  Give me a drop...

In the thieves’ market, we negotiate to buy a drop address where the criminals tell us we can send stolen merchandise.

Clements: Oh!  We have just got a U.S. drop here.

Hansen: Wow. It’s South Avenue—

Clements: Penn Yan,  New York?  Is that really a city?

Hansen: Penn Yan? What’s Penn Yan?

Turns out, Penn Yan is very real—a small town in upstate New York, a place we’re about to become very familiar with, because back at our online electronics store, we’re getting more and more orders with stolen credit cards—a lot of them telling us to ship the goods to that same address in Penn Yan, New York.

In fact, dozens of orders, electronics worth more than $10,000 dollars. The name on the orders were for Wendy Kenson.

So we head for upstate New York using that shipping company we set up: CH delivery.

But when we get to the address, there’s no “Wendy Kenson” listed.

The house, proudly flying an American flag, actually belongs to a couple named Jeff and Therese Ball.

And as we make our delivery, we wonder: Are the Balls victims of a scam or are they scammers themselves?

Hansen: Hi! How are you? We have a delivery for Wendy Kenson.

Therese Ball: Ok. I’m not her. But her stuff is coming here.

Hansen: But this is an address where she can get it right?

Therese Ball: Oh, yeah.

The woman at the door knows the name Wendy Kenson.

Hansen: Does she live here?

Therese Ball: No. She’ll be coming by.

Hansen: She comes by. Is she a relative?

Therese Ball: (inaudible, doesn’t really answer)

Hansen: Thanks very much.

Therese Ball: Ok.

We make more deliveries to this house—Playstations, cellphones, mp3 players...  but “Wendy” remains just as mysterious.

Mrs. Ball seems tight-lipped about “Wendy”.

So who is this mysterious Wendy?

We’re hoping that these people are middlemen who can help us answer that question and lead us to the mastermind of the identity theft operation.

Finally, on our fourth visit, a new face, and some new information.

Hansen: Hey how are you today? I’ve got some deliveries for Wendy Kenson.

Jeff Ball:  Yah.

This time, Jeff Ball answers the door. Unlike his wife, he starts to open up about what’s happening with all these packages.

Jeff Ball: They’re going to Africa.

Hansen: What’s that?

Jeff Ball:  They’re gonna be shipped to Africa.

Hansen:  Oh they are going to Africa?

Remember all this stuff has been ordered with stolen American credit cards, and now we’re finding out they’re being shipped to Africa?

Hansen: What do you do with them in Africa?

Jeff Ball: We have a store there. 

Hansen:  Oh you have store in Africa? Oh Really? Well, that’s cool. What, you get ‘em over here and then you ship ‘em over there.

Jeff Ball:  Yeah.

Hansen:  How’s that business going?

Jeff Ball: Pretty good.

So there’s a store in Africa, but that still doesn’t tell us much about Wendy.

Hansen: Does Wendy live here?

Jeff Ball:  She’s in Australia right now.

Hansen: She’s in Australia?

It turns out, Jeff says Wendy is actually his business partner. That store in Africa is doing so well, Jeff says, Wendy wants to open more stores.

Jeff Ball: That’s why she’s in Australia. She’s opening a store in Australia.

Hansen: In Australia, too.

And as he tells us about the expansion plans, he drops a bombshell. 

Jeff Ball: She’s gonna be, she’s gonna be my wife.

Hansen: Oh, oh - so Wendy is going to be your wife.

Jeff Ball:  Gonna be. Gonna be.

Hansen: Well, congratulations then.  Have you set a date?

Jeff Ball: Not yet.

So we’ve managed to track thousands of dollars in electronics ordered with stolen credit cards right to Jeff Ball’s doorstep. But we don’t know yet if he’s in on the fraud or another pawn. Either way, we’re hoping he can lead us to the kingpin behind the identity theft ring.

MORE FROM 'TO CATCH AN ID THIEF'

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Part I: On the hunt for ID thieves Around the world in search of ID thieves Behind the year-long investigation What we learned from the online store HansenDiscountElectronics.com Do you know 'Paul Desmond'? More on Card Cops Tips on protecting your identity 'To Catch an ID Thief' Section Front   Add 'To Catch an ID Thief' headlines to your news reader: