Letter to Mr. Ersek, Ms. Patsley, and Mr. Thompson

Letter

Increasingly Popular Phony IDs Easily Obtained Via the Internet With Cash Wire Transfers; IDs Are Indistinguishable From Real Drivers' Licenses and Include Security Features Like Holograms and Magnetic Strips

Schumer Presses Wire Services to Work with Homeland Security to Identify Sellers and Block Payments

Schumer: Underage Drinking -- and Drinking and Driving -- Is Already A Scourge In Erie County, We Don't Need Chinese-Made Forgeries, Purchased Via the Internet, Contributing to the Epidemic

Today, United States Senator Charles E. Schumer called on wire transfer services to work with the U.S. Department of Homeland Security (DHS) to identify and block cash payment transfers to operators in China that peddle fake drivers' licenses that are indistinguishable from the real thing. The Chinese-made fake IDs include features like holograms, watermarks, and magnetic strips, making them almost identical to driver's licenses issued by state Department of Motor Vehicles. These IDs, manufactured in China, are shipped across the country, often hidden in shoeboxes, and are becoming increasingly available throughout the United States. The increased access to high-quality fake IDs could exacerbate Erie County's severe underage drinking problem, as well as add to the rate of Erie County's incidents of drunk driving accidents, which were already Upstate New York's highest in 2009.

"Underage drinking in Buffalo and throughout Western New York is already a huge problem, and the last thing we need is for Chinese scam artists to add fuel to the fire by providing fake IDs to underage kids," said Schumer. "The Department of Homeland Security needs to identify the source of these outrageous fakes and work with wire service companies to strangle the source of their funding and shut them down."

Fake IDs from China are sold for anywhere between $100 and $300, depending on the quantity of IDs ordered. Just recently, more than 1,700 fake drivers' licenses for states like Ohio, Florida, New Jersey, and Pennsylvania were confiscated at O'Hare International Airport and were headed for Chicago's suburbs. Twenty IDs, purportedly from China, were also confiscated from patrons at a Washington, DC nightclub and six additional Chinese-sourced IDs were confiscated from a 19-year-old man in Fargo just this week. And this past March, 42 fake IDs were confiscated from a package delivered to a student at Columbia University that was shipped from a Chinese-based manufacturer. The student admitted to purchasing the IDs online.

In his letter to the major wire services, Schumer pointed out that while at one time fake IDs were primarily created and manufactured with primitive means in college dorm rooms, this onetime cottage industry has become highly sophisticated and has created a significant customer base throughout the United States. Schumer noted that he would be reaching out to the Department of Homeland Security to coordinate efforts with these wire services to help crackdown on the sale of these fake IDs, both to stem the tide of underage drinking and to stop other potentially illegal and dangerous activities that phony identification could be used for.

According to the National Highway Transportation Safety Administration (NHTSA), in 2009, 33 percent of young drivers (15 to 20 years old) who were killed in crashes had a blood alcohol concentration (BAC) of .01 or higher and 28 percent had a BAC of .08 or higher -- the legal limit for alcohol content for individuals over 21 years of age. According to the Century Council, a not-for-profit funded by distillers that works to combat underage drinking, there were 45 alcohol-related fatalities in New York in 2009 involving underage drinkers; 279 teens under 18 were arrested for drunk driving, and 895 teens under the age of 18 were arrested for violating liquor laws.

Schumer notes that just recently, on August 4th, five people were arrested in the Buffalo region for allegedly serving alcohol to minors following a sweep of 27 bars and restaurants overnight. These five individuals worked at pubs and bars in the area, and were all charged with first-degree unlawfully dealing with a child and prohibited sales. A major contributor to such incidence of underage drinking and arrests are the use of fake identification for these young people. Schumer points out that with underage drinking already a major problem in the Buffalo area, Chinese scam artists cannot be permitted to make the situation worse by providing fake IDs to underage kids

According to the Institute for Traffic Safety Management and Research there were 609 police-reported alcohol-related accidents in Erie County in 2009, of which 18 were fatal. In total there were 19 deaths and 466 injuries. There were 161 police-reported alcohol-related accidents in Niagara County in 2009, of which 4 were fatal. In total there were 4 deaths and 107 injuries. In Cattaraugus County there were 86 police-reported alcohol-related accidents, with 52 total injuries, and in Chautauqua County there were 127 police-reported alcohol-related accidents in 2009, of which 6 were fatal and there were 79 total injuries.

"These phony IDs are nothing more than all-access passes that allow underage kids to illegally gain entry into bars and liquor stores that they otherwise wouldn't be able to get into," said Schumer. "The consequences of underage drinking are too severe and too heart breaking to allow this to go on unchecked. By identifying the source of these IDs and cutting off funding, we can help ensure that Western New York families aren't forced to deal with the tragedies that often result from underage drinking."

A copy of Schumer's letter can be found below

Hikmet Ersek
President and Chief Executive Officer
The Western Union Company
12500 Belford Avenue
Englewood, CO 80112

Scott Thompson
President
PayPal
eBay Park North 2211 North First Street
San Jose, CA 95131

Pamela H. Patsley
Chairman and Chief Executive Officer
MoneyGram International
2828 N. Harwood, Floor 15
Dallas, TX 75201

Dear Mr. Ersek, Ms. Patsley, and Mr. Thompson,

I write to you today to enlist your help in combating a troubling development regarding online sales of fraudulent and illegal identification cards (IDs) including passports and state-issued drivers' licenses. It has been reported that dozens of overseas retailers are offering these IDs for users to purchase online without proof of authenticity. As a result, these retailers act as a pipeline for dangerous and illegal activities, such as underage drinking and driving that pose a threat to New York and the rest of the country.

I therefore ask that you work together with the Department of Homeland Security, who I am asking separately to provide you with the names and identities of companies and persons selling these IDs in violation of the law, to crack down on the online sale of fake IDs by blocking payments to these identified online retailers.

I have long fought the illegal distribution of fake IDs and underage drinking in New York and nationwide. However, this industry has transformed into a far more sophisticated and international market that is designed to evade law enforcement. Fake driver's licenses are now being produced by Chinese companies that have mailed thousands of these IDs across the United States and can produce exact replicas of driver's licenses from various states. These licenses endanger our children, and can potentially lead to serious consequences such as drunk driving and alcohol poisoning. In some cases, these false identifications have computer chips that can be read locally and can fool scanners that do not have access to databases to determine the authenticity of these identifications.

Today, the fight against the illegal distribution of fake IDs continues -- and I believe, must intensify -- in order to stop these retailers from compromising our security simply to make a profit by selling these products online. I highly encourage you to work together with me to stop this dangerous trend by refusing to process payments to the online retailers engaged in selling these high-tech fake IDs.

I strongly believe you can play a crucial role in the effort to halt the internet sales of fraudulent and illegal IDs. I strongly urge that we all work together to address this growing problem by blocking payments to these retailers and preventing the sale of these IDs. Thank you for consideration of this request.

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