Security: Counterfeit Indentification Raises Homeland Security	 
Concerns (01-OCT-03, GAO-04-133T).				 
                                                                 
GAO testified about how homeland security is vulnerable to	 
identity fraud. Today, counterfeit identification is easily	 
produced and used to create fraudulent identities. Tests GAO has 
performed over the past 3 years demonstrate that counterfeit	 
identification documents can be used to (1) enter the United	 
States; (2) purchase firearms; (3) gain access to government	 
buildings and other facilities; (4) obtain genuine identification
for both fictitious and stolen identities; and (5) obtain social 
security numbers for fictitious identities.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-133T					        
    ACCNO:   A08639						        
  TITLE:     Security: Counterfeit Indentification Raises Homeland    
Security Concerns						 
     DATE:   10/01/2003 
  SUBJECT:   Facility security					 
	     Federal facilities 				 
	     Firearms						 
	     Fraud						 
	     Identity verification				 
	     Inspection 					 
	     International travel				 
	     Social security number				 

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GAO-04-133T

United States General Accounting Office

GAO Testimony

Before the Committee on Homeland Security

For Release on Delivery Expected at 1:00 p.m. EDT

Wednesday, October 1, 2003 SECURITY

          Counterfeit Identification Raises Homeland Security Concerns

Statement of Ronald D. Malfi
Director, Office of Special Investigations

Accompanied by:

Robert J. Cramer
Managing Director, Office of Special Investigations

GAO-04-133T

Mr. Chairman and Members of the Committee:

Thank you for the opportunity to testify today about how homeland security
is vulnerable to identity fraud. Today, counterfeit identification is
easily produced and used to create fraudulent identities. Tests we have
performed over the past 3 years demonstrate that counterfeit
identification documents can be used to

o  enter the United States,

o  purchase firearms,

o  gain access to government buildings and other facilities,
o  obtain genuine identification for both fictitious and stolen
identities, and
o  obtain social security numbers for fictitious identities.

In conducting these tests, we created fictitious identities and
counterfeit identification documents, such as driver's licenses, birth
certificates, and social security cards. We did this using inexpensive
computer software and hardware that are readily available to any
purchaser.

Our work shows how security vulnerabilities can be exploited. From July,
2002, through May, 2003, we counterfeited state driver's licenses and
birth certificates, with fictitious names and used them to enter the
United States from Western Hemisphere countries, including Jamaica,
Barbados, Mexico, and Canada. Bureau of Immigration and Customs
Enforcement staff never questioned the authenticity of the counterfeit
documents, and our investigators encountered no difficulty entering the
country using them. 1

Second, counterfeit driver's licenses can be used to purchase firearms.
Between October, 2000, and February, 2001, used counterfeit driver's
licenses with fictitious identifiers to purchase firearms from license
dealers in five states-Virginia, West Virginia, Montana, New Mexico, and
Arizona. When we purchased the firearms, the majority of the firearms
dealers we dealt with complied with laws governing such purchases,
including instant background checks required by federal law.2 However, an
instant background check only discloses whether the prospective

1 U.S. General Accounting Office, Counterfeit Documents Used to Enter the
United States from Certain Western Hemisphere Countries Not Detected,
GAO-03-713T (Washington, D.C.: May 13, 2003).

2 18 U.S.C. S: 922(t).

Page 1 GAO-04-133T Security Threat

purchaser is a person whose possession of a firearm would be unlawful.
Consequently, if the prospective purchaser is using a fictitious identity,
as we did, an instant background check is not effective. 3

Third, counterfeit identification can be used to gain access to federal
buildings and other facilities. In March, 2002, we breached the security
of four federal office buildings in the Atlanta area using counterfeit law
enforcement credentials to obtain genuine building passes, which we then
counterfeited. We were also able to obtain building passes that authorized
us to carry firearms in the buildings. As a result, several investigators,
including one carrying a briefcase suitable for carrying firearms,
bypassed the magnetometers and x-ray machines using the counterfeited
building passes. They then were able to move freely throughout the
buildings during day and evening hours.4 In April and May, 2000, we
similarly gained access to numerous federal buildings in Washington, D.C.,
that contained the offices of cabinet secretaries or agency heads.5

Finally, we easily obtained Social Security Numbers (SSN) for fictitious
names. We used counterfeit identification documents to obtain valid SSNs
from the Social Security Administration (SSA) for two fictitious infants.
In addition, we visited two states and obtained authentic but fraudulent
driver's licenses using the names, SSNs, and dates of birth of individuals
listed on SSA's publicly available Master Death file. The Master Death
file contains the names, SSNs, and dates of birth of deceased individuals.
The motor vehicle departments in two of the states we visited are among
those that rely solely on visual verification of identification documents
and do not compare the information on license applications with SSA's
Master Death file.6

Our work leads us to three basic conclusions: (1) government officials and
others generally did not recognize that the documents we presented were
counterfeit; (2) many government officials were not alert to the
possibility

3 U.S. General Accounting Office, Firearms: Purchased from Federal Firearm
Licensees Using Bogus Identification, GAO-01-427T (Washington, D.C.: March
19, 2001).

4 U.S. General Accounting Office, Security Breaches at Federal Buildings
in Atlanta, Georgia, GAO-02-668T (Washington, D.C.: Apr. 30, 2002).

5 U.S. General Accounting Office, Security: Breaches at Federal Agencies
and Airports, GAO/T-OSI-00-10 (Washington, D.C.: May 25, 2000).

6 U.S. General Accounting Office, Social Security Numbers: Ensuring the
Integrity of the SSN, GAO-03-941T (Washington, D.C.: July 10, 2003).

                       Page 2 GAO-04-133T Security Threat

of identity fraud and some failed to follow security procedures and (3)
identity verification procedures are inadequate. While some of the
problems revealed in our tests have been addressed by the responsible
agencies, much remains to be done. A driver's license is the most commonly
accepted document used for identifications. The weaknesses we found during
this investigation clearly show that border inspectors, motor vehicle
departments, and firearms dealers need to have the means to verify the
identity and authenticity of the driver's licenses that are presented to
them. In addition, government officials who review identification need
additional training in recognizing counterfeit documents. Further, these
officials also need to be more vigilant when searching for identification
fraud.

Mr. Chairman, this completes my statement. I would be happy to respond to
any questions you or other members of the committee may have.

                  (601153) Page 3 GAO-04-133T Security Threat

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