>> Steve: HELLO EVERYONE AND THANK YOU FOR JOINING US.

SOME CIRCLES, FRANK ABAGNALE WAS LEGEND WAY BEFORE THE FIRST YEARS OF HIS LIFE WERE PUT TO FILM.

IN THE WONDERFUL MOTION PICTURE CATCH ME IF YOU CAN WAS DEPICTED THOSE SIX FANTASTIC YEARS OF HIS LATE TEENAGE YEARS AND EARLY 20s WHEN A KEEN INTELLIGENCE AND A THEATRICAL FLAYER HELPED HIM POSE AS A DOCTOR AND AN AIRLINE PILOT AND EVEN AN FBI AGENT.

ALONG THE WAY, THOSE IMPERSONATIONS WERE OFTEN CENTRAL TO THE MULTIPLE FINANCIAL FRAUDS THAT PUT ON THOUSANDS OF DOLLARS IN HIS POCKET AND ALONG THE WAY THERE WERE SEVERAL ARRESTS.

TWO ESCAPES.

TWO IMPRISONMENTS ON TWO CONTINENTS AND THEN A CAREER AS A CONSULTANT HELPING FINANCIAL INSTITUTIONS AVOID FRAUD AND ASSISTING LAW ENFORCEMENT AND DETECTING AND PREVENTING FRAUD.

IN RECENT YEARS, FRANK HAS CONCENTRATED ON ADVISING INDIVIDUALS, ESPECIALLY SENIOR CITIZENS ON HOW TO AVOID BECOMING VICTIMS OF FINANCIAL FRAUD.

THAT IS WHAT BRINGS THEM TO ARKANSAS AT THE INVITATION OF THE ARKANSAS CHAPTER OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS.

THANK YOU, FRANK.

>> Mr.

Abagnale: THANK YOU FOR HAVING ME.

YOUR WORK HAS TRIED TO HIGHLIGHT THE VULNERABILITY OF ALL OF US AS CONSUMERS TO FINANCIAL FRAUD.

READ ABOUT FIREWALLS AND WE CAN READ ABOUT COUNTER SIGNING AND SECURITY CHECKS AND ALL THAT ARE WE MORE VULNERABLE THAN WE WERE FIVE YEARS AGO?

>> ABSOLUTELY.

I HAVE SPENT 41 YEARS TEACHING AT THE FBI ACADEMY SO I'VE ALWAYS DEALT WITH CRIMES AGAINST THE FEDERAL GOVERNMENT, CORPORATIONS, FINANCIAL INSTITUTIONS.

I'VE WRITTEN A LOT ABOUT CONSUMER CRIMES AND SOME OF MY BOOKS BUT THIS WAS THE FIRST OPPORTUNITY WHEN AARP APPROACHED ME THREE YEARS AGO TO ACTUALLY GO OUT AND EDUCATE PEOPLE ABOUT THE SCAMS PERPETRATED AGAINST THE ELDERLY AND YOUNG PEOPLE AS WELL.

TELEPHONE, EMAIL, THE INTERNET AND TO HELP EDUCATE THEM AS YOU DO IN BUSINESS.

YOU EDUCATE PEOPLE HOW NOT TO FALL VICTIM TO FRAUD IN THESAME WAY WITH INDIVIDUALS.

IF YOU SHOW THEM WHAT THE RISKS ARE AND EXPLAIN IT TO THEM AND TELL THEM HOW THE SCAM WORKS, THEY ARE SMART ENOUGH NEXT TIME TOGET THE CALL OR THE EMAIL TO DO SOMETHING ABOUT IT .

THE TRUTH IS, THE MAJORITY PEOPLE ARE HONEST AND THAT IS GREAT .

BECAUSE THEY ARE HONEST THEY DON'T THINK IN A DECEPTIVE WAYS OF THE PHONE RINGS AND IT SAYS ON THE CALLER ID THAT IT'S THE IRS OR THE LITTLE ROCK POLICE DEPARTMENT, THEY BELIEVE THAT SO THEY DON'T KNOW THAT YOU COULD EASILY MANIPULATE THE CALLER ID.

WHEN TO TEACH PEOPLE THAT THEY LEARN HOW TO PROTECT THEMSELVES BETTER.

>> IS THE UNIQUE OPPORTUNITY TO SWITCH GEARS AND CONCENTRATE ON CRIMES AGAINST CONSUMERS AND INDIVIDUALS.

>> Steve: RECOGNIZING THAT THE GROUND SHIFTS IN FINANCIAL FRAUD OFTEN.

WHAT IS NUMBER ONE THE NUMBER ONE THREAT AS YOU LOOK AT IT TODAY?

>> THE INTERNET IS THE BIGGEST THREAT.

THE INTERNET, AS WE ALL KNOW, IS DESIGNED AS AN ACADEMIC TOOL TO SEND PAPERS FROM ONE TO ANOTHER.

WE MADE IT INTO A SECURITY DEVICE AND NOW WE DO ALL OUR FINANCIAL BUSINESS AND PRIVATE BUSINESS BANKING ON SOMETHING THAT IS NOT SECURE AND NEVER HAS BEEN SECURED AND IS NOT SECURED TODAY.

CONSEQUENTLY, IT'S OPEN THE DOOR TO CRIMINALS ALL OVER THE WORLD TO DEFRAUD COMPANIES AND INDIVIDUALS AND CORPORATIONS AND DO IT FROM THOUSANDS OF MILES AWAY.

IN MOST CASES WE FIND THAT THESE BOILER ROOMS ARE NOT EVEN LOCATED IN THE UNITED STATES.

THEY ARE IN MALAYSIA, INDIA, HONG KONG, CHINA.

WE DON'T HAVE THE ABILITY TO GO PURSUE THEM, ARREST THEM AND TAKE THEM INTO CUSTODY SO THE ONLY OTHER ANSWER IS, USE EDUCATION TO PREVENT THEM FROM BEING VICTIMIZED BYTHOSE INDIVIDUALS .

IS SELF PROTECTION STEP ONE?

>> I LIVE BY RULE STOP AND VERIFY.

I GET A CALL IN PHONE RINGS AND IT SAYS IT'S THE LITTLE ROCK POLICE DEPARTMENT, I PICK IT UP AND IT SAYS THIS IS SERGEANT O'REILLY, WE ARRESTED YOUR GRANDSON.

THEY SAY THE GRANDSON'S NAME WHAT KIND OF CAR HE WAS DRIVING, LICENSE PLATE NUMBER OF THE CAR AND WHO WAS IN THE CAR WITH THEM A BILL FROM THAT YOU KNOW.

THEY BASICALLY SAY THEY'VE ARRESTED FOR DRUNK DRIVING AND HE DOESN'T POST BAIL BY THE NEXT FEW HOURS HE WILL HAVE TO SPEND THE WEEKEND IN JAIL.

THEY ASKED US NOT TO CALL THE PARENTS BUT CALL YOU, WILL YOU POST THE BAIL?

>> OF COURSE HOW DO I DO THAT?

>> GIVE ME A CREDIT CARD NUMBER AND WE WILL POST THE BAIL.

RED FLAGS ARE ALWAYS THERE.

EVERYTHING HAS TO BE IMMEDIATE AND INVOLVES MONEY ORPERSONAL INFORMATION.

THE MINUTE THEY COME INTO PLAY , THAT'S WHEN IT'S TIME TOSTOP .

WHEN THEY GET ALL THE INFORMATION TO GIVE HIM THE CREDIBILITY IS SOCIAL MEDIA.

THEY WANT TO THE CHILD'S FACEBOOKAND LEARN HIS GIRLFRIEND'S NAME AND WHEN A CAR DRIVES AND WHERE HE GOES TO SCHOOL IN HIS NAME PARENTS NAMES.

THEY USE THAT FOR CREDIBILITY ON THE PHONE .

YOU HAVE TO BELIEVE IT MUST BE REAL BECAUSE THEY KNOW EVERYTHING THEY ARE SAYING IS ACCURATE.

ABOUT GIVE ME THE MONEY IF YOU SAID TO THE BOOK, CAN I DRIVE DOWN THERE AND POST IT NO YOU CAN'T DO THAT.

HAVE TO DO WITH A CREDIT CARD.

THE MINUTE THEY TELL YOU ANYTHING IMMEDIATE, YOU HAVE TO GIVE THE MONEY OR GIVE THEM INFORMATION THAT'S WHEN I ASK PEOPLE TO STOP THERE.

HANG UP THE PHONE.

PICK UP THE PHONE AND GO TO THE PHONE BOOK AND LOOK UP THE LITTLE ROCK POLICE DEPARTMENT AND CALL THEM AND SAY THEY JUST GOT THIS PHONE CALL FROM A SERGEANT O'REILLY WHO SAID WE DON'T HAVE ANYONE BY THAT NAME.

IT'S CALLED THE GRANDPARENT SCAM.

DO NOT FALL FOR THAT.

THAT'S JUST A SCAM.

TAKES IS A COUPLE OF MINUTESTO VERIFY WHETHER TRUE OR NOT .

>> JUST TOUCHED ON SOMETHING.

WE GO TO THE PHONE BOOK AND A LOT OF PEOPLE DON'T HAVE PHONE BOOKS ANYMORE.

WE ARE DEPENDENT ON CYBERSPACE IN THE COMPUTERS.

>> IF YOU ARE DEPENDING ON THE INTERNET WE LIVE IN THE TOO MUCH INFORMATION WORLD.

NO QUESTION ABOUT IT.

IT CAN BE HELPFUL.

I GO TO THE COMPUTER AND LOOK UP THE LITTLE ROCK POLICE DEPARTMENT AND GET THEIR PHONE NUMBER FOR THE PHONE BOOK OR INFORMATION OR WHATEVER IT MIGHT BE.

>> THE EASE WITH WHICH IT CAN BE DONE I STARTED TO SAY WHEN YOU'RE TALKING ABOUT THE INFORMATION THAT A SCAMMER WOULD CALL A GRANDPARENT ON OR THESE GUYS OR WHATEVER THEY ARE GOOD.

THEY HAVE A LOT OF DATA.

>> THE FACT IS, AS YOU JUST GOT IT, THEY CAN GET ON ANY SOCIAL MEDIA PLATFORM AND IN 10 MINUTES, GET EVERYTHING EXCEPT HER BLOOD TYPE AND I'M NOT SURE ABOUT THAT.

>> ABSOLUTELY.

IF YOU TALK TO A TRUE SCAM ARTIST OR HACKER THEY WILL TELL YOU, I ONLY NEED THEIR LAST NAME IN THEIR ZIP CODE AND I CAN FIND OUT ANYTHING ABOUT THEM.

THAT'S BECAUSE WE LIVE IN A WAY OF TOO MUCH INFORMATION.

I AM NOT ON SOCIAL MEDIA AND THE FATHER OF THREE'S ON THE GRANDFATHER OF FIVE.

THEY LIKE SOCIAL MEDIA.

AS A GRANDPARENT AND A FATHER ALWAYS TAUGHT THEM TO USE IT WISELY AND HOW TO USE IT PROPERLY.

UNFORTUNATELY, A LOT OF YOUNG PEOPLE DON'T AND THEY GIVE AWAY TOO MUCH INFORMATION AS DO TOO MANY ADULTS.

I SAW AN EMAIL THAT SAID, HI KAREN, GREAT HAVING LUNCH WITH YOU TODAY.

I HOPE YOU AND YOUR HUSBAND ROBERT HAVE A GREAT TIME AT DISNEY WORLD WITH THE KIDS.

WHEN YOU GET BACK, LET'S GET TOGETHER FOR LUNCH AND BY THE WAY I MEANT TO TELL YOU ABOUT THE YOUTUBE THING I HAVE SEEN.

CLICK ON THIS LINK AND WATCH IT .

I THINK YOU'LL ENJOY IT BARBARA.

WITH HER.

SHE THINKS WELL, IT MUST BE HER BUT THAT'S HOW MUCH THEY GO TO RESEARCH TO GIVE THEM THE INSTANT CREDIBILITY SO YOU CAN'T RELY ON THE FACT THAT IT'S REALLY YOUR FRIEND SENDING YOU THE EMAIL.

CHECK THE EMAIL ADDRESS AND SEE IF IT CAME FROM THE INDIVIDUAL.

>> THE FINANCIAL INDUSTRY.

COMMERCIAL BANKS WITH RETAIL CUSTOMERS LIKE MYSELF .

IT WOULD SEEM TO ME TO BE DOING EVERYTHING THEY CAN TO GET EVERYONE TO GO ELECTRONIC.

DON'T HANDLE CHECKS OR PAPER.

>> THAT CREATES A RUG FOR THE CONSUMER.

HAVE THE INSTITUTION THE BANK THE DOESN'T WANT TO HANDLE PAPER AND A CONSUMER THAT DOESN'T WANT TO HANDLE PAPER.

$0.48 ON A STAMP AND THE PRICE OF A CHECK.

THE CLICK OF A MOUSE.

>> YOU ARE ABSOLUTELY RIGHT.

I AM OLD SCHOOL.

WE HAVE ALL THE PROBLEMS WITH THE IRS $5.7 BILLION IN TAX REFUNDS GIVEN TO INDIVIDUALS THAT WERE NOT EVEN LIVING IN THIS COUNTRY WHO FILED FOR RETURNS USING ELECTRONIC SOMEONE ELSE'S SOCIAL SECURITY NUMBER.

THEY SURE THE IRS IS DONE BETTER IN 2016.

THE ONLY PAID OUT 3 BILLION OF THE TAXPAYERS MONEY IN FRAUDULENT CLAIMS BUT THEY STOP $32 BILLION ATTEMPTS FROM GOING THROUGH.

WE FILE BY PAPER, THEY GOT THE PHYSICAL RETURN AND THEYWAITED FOR THE W-2 TO COME FROM THE EMPLOYER TO MATCH THE W-2 .

THEN, THEY LOOK AT THE RETURN AND YOU WAITED EIGHT WEEKS OR SO.

THEN THEY DECIDED THEY WILL DO IT ELECTRONICALLY AND CONGRESS SAID, NOT ONLY DO YOU HAVE TO BUT YOU HAVE TO MAKE SURE PEOPLE GET THEIR MONEY WITHIN FOUR WEEKS.

THE IRS IS SAYING LOOK I CAN'T MATCH ALL OF THIS INFORMATION.

I DON'T EVEN GET THE W-2 FROM THE EMPLOYER.

I AM TAKING THE WORD OF THE PERSON THAT'S SENDING IN THAT THEY DID MAKE THIS MUCH MONEY AND THEY DID WORK AT THIS COMPANY AND PAYING A RETURN THAT I'VE HAD NO TIME TO INVESTIGATE.

IT'S A FAULT OF THE GOVERNMENT.

AGAIN, WE LEFT PAPER WHICH WAS VERY SECURE.

THIS IS WHERE YOU START TO SEE CHECKS COME BACK.

CHECKS ARE MAKING A RETURN NOW BECAUSE PEOPLE FEEL LITTLE MORE COMFORTABLE WRITING A CHECK.

THEY COULD TRACK A CHECK AND STOP PAYMENT ON CHECK AND THEY HAVE TO MAIL THE CHECK TO A PHYSICAL ADDRESS.

SOMEONE HAS TO DEPOSIT INTO A LEGITIMATE ACCOUNT.

THE STATE I LIVE IN SOUTH CAROLINA, TWO YEARS AGO, BECAUSE HE HAD 3.7 MILLION PEOPLE IN SOUTH CAROLINA WITH IDENTITY STOLEN BY A HACK INTO THE TAX REVENUE OFFICE, NOW THEY HAVE STARTED MAKING REFUNDS BACK BY CHECKING IN SO THEY DON'T DO THEM ELECTRONICALLY.

I THINK WE ARE STARTING TO SEE IT SLOWLY TURNED BACK BECAUSE OF THAT BECAUSE IT'S SO EASY TO DO ANYTHING THAT YOU DO MOBILE, WIRELESS OR ELECTRONICALLY THAT ANYONE COULD INTERCEPT THAT.

>> Steve: I HAVE BEEN A PERSONAL TARGET FROM RIDICULE OF FRIENDS BECAUSE I DON'T DO IT.

I WRITE CHECKS.

>> I WRITE CHECKS.

I DON'T DO ONLINE BANKING.

I DON'T TRUST ONLINE BANKING.

I CERTAINLY WOULDN'T DO MOBILE BANKING ON A MOBILE PHONE.

SO, I AM A LITTLE BIT OLD-FASHIONED LIKE THAT.

I WRITE CHECKS.

NOW, I WILL TELL YOU THIS I'M CAREFUL I WRITE THEM TOO.

I WRITE A CHECK TO PAY MY MORTGAGE OR MY CAR NOTE OR THE INSURANCE COMPANY.

THE PROBLEM ALSO AS IF I WERE TO GO INTO CVS TOMORROW OR A DRUGSTORE AND WRITE A CHECK FOR NINE DOLLARS, HAVE TO HAND THE CLERK THE CHECK.

ON THE CHECK IS MY NAME AND ADDRESS AND PHONE NUMBER IN MY BANK'S NAME AND ADDRESS IN MY ACCOUNT NUMBER AT THE BANK.

MY ROUTING NUMBER INTO THE ACCOUNT.

MY SIGNATURE ON THE SIGNATURE CARD AT THAT BANK.

THEN THE CLERK IS WRITTEN DOWN BY STATE DRIVERS LICENSE AND MY DATE OF BIRTH.

WELL, I DON'T GET THAT CHECK BACK.

I GET AN IMAGE OF THE CHECK.

THE PHYSICAL CHECK GOES TO THE WAREHOUSE AND 65 DAYS LATER THEY DESTROY IT BUT ANYONE WHO WOULD SEE THE FACE OF THAT CHECK COULD DRAFT ON MY BANK ACCOUNT.

THEY COULD WIRE MONEY OUT OF MY ACCOUNT WERE LITERALLY COULD TURN AROUND AND BASICALLY GO TO CHECKS IN THE MAIL.com AND LOOK FOR CHECKS THAT LOOK LIKE MY CHECK IN THE SAME DESIGN OR ORDER THOSE WITH THEIR NAME ON IT BUT MY ACCOUNT NUMBER.

>> EVERY CHECK THEY WRITE DEBITS AGAINST MY ACCOUNT.

CAREFUL OF WHO YOU ARE RIGHT THEM TO BUT I STILL WRITE THEM.

>> Steve: YOU ARE SCARING THE DAYLIGHTS OUT OF ME AND EVERYONE THAT WATCHES THIS PROGRAM.

WHAT IS THE LEVEL OF RISK?

IN THIS COMMERCIAL CULTURE AND THE CYBER CLIMATE THERE IS A GREAT DEAL OF RISK.

WE MAKE A BIG THING ABOUT AQUA FACTS AND IT CERTAINLY IS BUT I REMIND PEOPLE THAT IN 2016, WE HAD 1206 BREACHES THAT TOOK 1.7 BILLION IDENTITIES DURING THAT 12 MONTHS.

WE HAD TO ADD TWO MORE RECENTLY THREE WEEKS AGO BECAUSE THE SEC , SECURITY EXCHANGE COMMISSION ADMITTED THAT THEY HAD A BREACH IN 2016.

WE ADDED THEM AND ONE WEEK LATER DELOITTE SAID THEY HAD A BREACH THAT THEY DID NOT TELL US ABOUT SO WE ADDED THEM.

WE ARE NOW INTO NOVEMBER 2017 WE'VE ALREADY HAD 1103 BREACHES AND WE HAVEN'T FINISHED THE YEAR OUT.

THE BIG THING ABOUT AQUA FACTS IS THE FACT THAT THEY STOLE YOUR NAME, SOCIAL SECURITY NUMBER AND YOUR DATE OF BIRTH.

YOU CAN'T CHANGE HER NAME.

YOU CAN'T CHANGE YOUR SOCIAL AND YOU CAN'T CHANGE YOUR DATE OF BIRTH.

THEY WILL TYPICALLY HOLD THAT TYPE OF DATA OR WHAT WE REFERRED TO AS WAREHOUSE FOR THE NEXT TWO OR THREE YEARS BEFORE THAT EVER BRING IT OUT INTO THE MARKETPLACE.

IT'S NOT GOING TO COME OUT IN THE NEXT YEAR OR TWO.

THEY HOLD THAT TYPE OF DATA FOR TWO THREE YEARS BEFORE THEY RELEASE IT .

YOU BREACH A HOME DEPOT OR A TARGET AND STEAL CREDIT CARD NUMBERS AND DEBIT CARD NUMBERS, YOU HAVE TO GET RID OF THAT RIGHT AWAY.

EXTREMELY SHORT SHELF LIFE.

IF I STEAL YOUR PERSONAL INFORMATION , I CAN HOLD ONTO THE INFORMATION.

WE HAD THE BREACH IN SOUTH CAROLINA THREE WEEKS AGO AND WE ARE JUST NOW STARTING TO SEE SOME OF THOSE IDENTITIES BEING USED ON THE DARK WEB AND BEING SOLD.

SOMETIMES CRIMINALS WILL TAKE THAT INFORMATION A LITTLE BIT EARLIER AND USE IT FOR GOVERNMENT BENEFITS BECAUSE GOVERNMENTS DO NOT USE CREDIT BUREAUS OR CREDIT REPORTS.

IF I APPLY TO THE IRS FOR TAX REFUND OR MEDICARE OR MEDICAID, THEY DON'T USE CREDIT BUREAUS SO THEY COULD USE THAT TO GET BENEFITS IN MY NAME.

MOST OF THE TIME THEY WILL WAREHOUSE THE INFORMATION FOR TWO OR THREE YEARS SO, OFFERING ME ONE YEAR OF CREDIT MONITORING IS NOTHING.

NOTHING WILL HAPPEN IN A YEAR.

EVEN THE DUMBEST CRIMINAL REALIZE YOU JUST GAVE EVERYONE A FREE YEAR OF CREDIT MONITORING SO THEY WILL NOT DO ANYTHING.

KEEP IN MIND THAT WHATEVER NUMBER THEY INITIALLY GIVE YOU, HUNDRED 45 MILLION, IT'S THE INITIAL NUMBER AND I'M SURE IT WILL TURN OUT TO BE 250 IDENTITIES THAT WERE STOLEN DURINGTHE AQUA FACTS.

THEY ORIGINALLY SAID 1.3 MILLION DRIVERS LICENSE AND SO FAR THEY WERE UP TO 10.6 MILLION .

IT WILL BE A LOT HIGHER THAN THEY ARE INITIALLY TOLD US.

>> AT THE CORE OF SO MUCH OF THIS, YOU WRITE IS THE RELATIVE EASE OF WHICH A HOSTILE PART ANYONE CAN OBTAIN YOUR SOCIAL SECURITY NUMBER.

>> ABSOLUTELY.

WE ARE LOOSE WITH IT.

>> WE ARE NOT ONLY LOOSE BUT I HAVE LEARNED ONE THING I'VE DEALT WITH BREACHES BACK TO T.J.

MAXX 15 YEARS AGO AND ONE THING I LEARNED FOR SURE IS THAT EVERY BREACH EVERY SINGLE BREACH OCCURS BECAUSE SOMEONE IN THE COMPANY DID SOMETHING THEY WEREN'T SUPPOSED TO DO OR SOMEONE IN THAT COMPANY FAILED TO DO SOMETHING THEY WERE SUPPOSED TO DO.

HACKERS DO NOT CAUSE BREACHES.

SO, WHAT HAPPENS IN THE CASE OF SOUTH CAROLINA, THE EMPLOYEE TOOK ON MY LAPTOP THEY WERE SUPPOSED TO TAKE HOME.

THEY WERE IN AN UNSECURED ENVIRONMENT AND THE HACKER GOT IN.

IN THE CASE OF AQUA FACTS, THEY DID NOT UPDATE THE INFRASTRUCTURE SECURITY AND DID NOT FIX THE PATCHES THAT THEY WERE SUPPOSED TO FIX SO THEY OPEN THE DOOR FOR THE CRIMINAL TO GET IN.

A BANK LIKE CHASE IN NEW YORK SPENDS ABOUT HALF $1 BILLION PER YEAR ON TECHNOLOGY TO KEEP PEOPLE AND CRIMINALS OUT OF THE BANK.

HOWEVER, THEY EMPLOY 200,000 PEOPLE SO THEY ARE JUST WAITING FOR ONE PERSON TO MAKE A MISTAKE AND OPEN THE DOOR AND ONCE THEY GET IN, THEY ARE ABLE TO DO IT.

WE HAVE THE TECHNOLOGY TO KEEP THEM OUT THE TECHNOLOGY IS ONLY GOOD IF YOU USE IT AND THE PEOPLE THAT ARE IN CONTROL OF IT ARE HANDLING OUT IT PROPERLY.

>> ONLY A COUPLE OF DAYS AGO, THE "NEW YORK TIMES", IT WAS REPORTED THAT THE NATIONAL SECURITY AGENCY NSA HAD BEEN HACKED, PROFOUNDLY HACKED AND SOME OF THE TOOLS STOLEN IN WHICH IS USED FOR HOSPITAL COST ALL GOVERNMENTS AGAINST US.

>> AGAIN, FOUR YEARS AGO THE OFFICE OF PERSONNEL MANAGEMENT HAD A BREACH.

THEY DID NOT MAKE IT PUBLIC SO A TEAM OF PEOPLE WENT IN AND SAID YOU HAVE A LOT OF LOOPHOLES YOU NEED TO FIX AND HERE'S THE LIST OF THINGS YOU NEED TO REPAIR, ALMOST TO THE DAY, THEY HAD ANOTHER.

THE SAME TEAM WENT BACK AND SAID, WE WERE HERE ONE YEAR AGO DID YOU FIX THESE THINGS WERE ANY OF THESE THINGS ON THE LIST NO.

THEY WON THEM, YOU WILL HAVE A MAJOR BREACH THAN THEY HAD IT.

21 MILLION FEDERAL GOVERNMENT EMPLOYEES GOVERNMENT CONTRACTORS HAVE HAD THEIR IDENTITYSTOLEN BY THE CHINESE GOVERNMENT , INCLUDING MORE THAN 10 MILLION FINGERPRINTS OF THOSE GOVERNMENT EMPLOYEES.

IT DID NOT HAVE TO HAPPEN IF PEOPLE HAD DONE THE RIGHT THING.

THAT WAS A CASE WHERE THEY FAILED TO DO WHAT THEY'RE SUPPOSED TO DO.

DURING THE MONTH OF OCTOBER, CYBER AWARENESS MONTH AND THIS WEEK IS FRAUD AWARENESS WEEK.

I SPENT MOST OF MY TIME AT COMPANIES YESTERDAY WAS AIG IN NEW YORK AT THE CORPORATE HEADQUARTERS.

STREAMING OUT TO ALL THE EMPLOYEES AROUND THE WORLD, TALKING ABOUT THE IMPORTANCE OF THEIR JOB IN THE MOST IMPORTANT PART IS TO KEEP THE INFORMATION THAT'S BEEN ENTRUSTED WITH THEM SAFE.

THAT IS THEIR NUMBER ONE JOB.

WHETHER IT'S A JANITOR OR THE CEO.

>> Steve: SENIORS, IT WOULD APPEAR, OR ESPECIALLY VULNERABLE?

>> IN MANY CASES.

AT AARP THEY DID A SURVEY A COUPLE OF YEARS AGO WITH MICROSOFT AND 6000 PEOPLE AND THEY FOUND THAT MILLENNIAL'S WERE MORE APT TO FALL FOR THE SCAM OF, I NEED TO FIX YOUR COMPUTER THERE SOMETHINGWRONG AND LET ME IN .

>> THEY KIND OF FELL FOR IT.

I THINK THEY DO TAKE THE BOILER ROOMS AROUND THE WORLD, THEY TEND TO PICK AN ELDERLY FOLKS AND TEND TO AGAIN, USE ALL THESE DIFFERENT SCAMS.

ALL THE SCAMS THAT YOU SEE TODAY THAT I WROTE ABOUT 20 YEARS AGO AND 30 YEARS AGO ARE THE SAME SCAMS TODAY.

IT'S JUST A DIFFERENT METHOD OF DELIVERING IT WITH 30 YEARS AGO YOU HAD TO BE A CON MAN AND YOU HAD TO BE THE WELL DRESSED WELL SOPHISTICATEDWELL SPOKEN GUY .

YOU HAD TO SIT DOWN WITH THE INDIVIDUAL AND SCAM THEM OUT OF THEIR MONEY.

TODAY, THERE IS NO SUCH PERSON BECAUSE THESE PEOPLE ARE SITTING IN THE KITCHEN WITH A CUP OF COFFEE ON THEIR LAPTOP IN MOSCOW SCAMMING YOU.

THEY DON'T SEE THE VICTIM AND THE VICTIM DOESN'T SEE THEM.

NO EMOTION INVOLVED.

THESE BOILER ROOMS ARE JUST TALKING TO SOMEONE ON THE PHONE OR EMAILING AND THE WHOLE THING IS CHANGED A LOT.

IT MAKES IT EASIER FOR THE CRIMINAL TO COMMIT SO IT'S A LOT SAFER FOR THE CRIMINAL AND UNFORTUNATELY FOR THE VICTIM, THEY FALL FOR THESE THINGS WHETHER IT'S A PHONE OR A ROBO CALL OR WHATEVER IT MIGHT BE.

>> DECADES AGO WHEN YOU WERE MAKING THE BONES, YOU TOLD THEM , THE WALL STREET JOURNAL NOT LONG AGO, IT IS 4000 TIMES EASIER TO PULL OFF A SCAM TODAY THAN IT WAS.

>> ABSOLUTELY.

I DID NOT HAVE THE TECHNOLOGY THAT THEY HAVE TODAY.

A SIMPLE EXAMPLE WAS FOR ME TO PRINT CHECKS I NEEDED TO PRINT THEM.

I HAD TO HAVE A PRINTING PRESS AND LEARN EIGHT MONTHS HOW TO OPERATE IT.

THERE WERE COLOR SEPARATIONS AND NEGATIVES IN PLATES AND TYPESETTING.

TODAY JUST SIT DOWN AT THE COMPUTER AND BRING A CHECK ON THE DIAGRAM ON THESCREEN AND YOU PICK A COMPANY AND YOU GRAB THEIR CORPORATE LOGO .

YOU PUT IT ON THE CHECK AND YOU PUT THE CORPORATE ADDRESS AND A NICE BACKGROUND ON THEIR AND YOU BASICALLY ALL YOU HAVE TO DO IS MAKE A COUPLE OF CALLS BECAUSE WE LIVE IN A TOO MUCH INFORMATION WORLD.

IF I CALL THE COMPANY AND ASKED FOR SOMEONE IN ACCOUNTS RECEIVABLE I SAY, HEY, I AM GETTING READY TO PAY THIS INVOICE AND WE PREFER TO WIRE THE MONEY.

THEY IMMEDIATELY TELL YOU WE BANK HERE WITH WHAT STREET, CITY AND ROUTING NUMBER.

EVERYTHING YOU NEED TO PUT ON THE CHECK.

IF YOU HANG UP AND CALL BACK AND ASK FOR THE CORPORATE COMMUNICATIONS AND SAY HEY, SEND ME A COPY OF THE ANNUAL REPORT SURE, WE WILL MAIL IT OUT TOMORROW.

>> ON PAGE 3 IS ASIGNATURE .

YOU SCAN IT WIPED THE PAPER WITH BLACK INK AND PUT IT ON THE CHECK.

THE TECHNOLOGY HAS MADE IT A LOT EASIER IN THE WAY YOU CAN REACH MILLIONS OF PEOPLE NOW ALL OVER THE WORLD WITH JUST AN EMAIL OR A PHONE CALL HAS MADE IT MUCH EASIER THAN WHEN I DID IT.

>> YOU PUT IT A FELONIOUS GEEK IN BEIJING.

>> Steve: ABSOLUTELY.

>> REAL ESTATE SCAMS IN TERMS OF WIRE TRANSFERS.

YOU HAVE ESCROW MONEY.

>> Mr.

Abagnale: SO, LAST WEEK IN CHICAGO SPEAKING FOR THE NATIONAL REALTORS ASSOCIATION AND THEY WERE UP IN ARMS ABOUT THIS SCAM BEING PERPETRATED EVERYWHERE AND JUST TAKEN OFF LIKE WILDFIRE AND THAT IS SIMPLY WHERE YOU MIGHT BE HAVE JUST SOLD YOUR HOUSE AND MADE $200,000 AND YOU ARE A YOUNG COUPLE SO YOU GO TO BUY A NEW ONE AND YOU PUT THE $200,000 DOWN SO YOU DID ALL OF THE PAPERWORK AND WHETHER YOU USE A LAW FIRM OR THE BANK, ALL OF A SUDDEN YOU GET AN EMAIL SAY YOU NEED THE ESCROW MONEY.

ROUTE IT TO THIS AND HERE'S THE ROUTING INFORMATION AND THEY DO SEND THE MONEY AND IT'S NOT FROM THE BANK OR THE ATTORNEY.

THAT COUPLE IS OUT $200,000.

THE DOWN PAYMENT IS GONE.

WHO HAS LIABILITY?

THE BANK?

THE INDIVIDUAL?

THAT COMES INTO QUESTION.

IT'S NOW BECOMING A VERY POPULAR SCAM.

I TOLD THE REALTORS, AS I WOULD TELL THE BANKERS AND ANY ATTORNEY OR LAW FIRM, YOU HAVE TO EDUCATE YOUR CUSTOMER.

IT'S YOUR POSITION IN YOUR PLACE TO SAY TO THE CUSTOMER, LOOK AS WE GO THROUGH THIS CLOSING, THERE WILL BE A TIME YOU HAVE TO PAY ESCROW.

PAY ESCROW TO ANY EMAIL THAT DOES NOT GET A PHONE CALL DIRECTLY FROM ME OR I DIRECTLY SEND YOU THE EMAIL AND YOU CALL ME TO VERIFY BEFORE YOU SEND THE MONEY BECAUSE THERE IS A SCAM GOING ON.

THIS IS HOW IT WORKS.

ONCE PEOPLE KNOW THAT THEY WILL SAY THEY GOT THE EMAIL BUT I HEARD THERE IS A SCAM SO I WILL MAKE SURE I VERIFY THIS IS THE RIGHT THING TO DO.

IF YOU NEVER HAVE HEARD OF IT, YOU WOULD NATURALLY SAY OKAY THEY WANT ME TO WIRE THE MONEY TO THIS ACCOUNT.

>> Steve: IT WOULD FALL TO THE LEGAL COMMUNITY.

THE REAL ESTATE COMMUNITY AND FINANCIAL COMMUNITY TO BE PROACTIVE WITH THEIR CLIENTELE.

>> I BELIEVE IT'S VERY IMPORTANT.

EDUCATION IS THE MOST POWERFUL TOOL TO FIGHTING CRIME.

I'VE ALWAYS SAID THAT .

WHAT'S GREAT ABOUT THIS AND WHAT'S GREAT WITH WORKING WITH AARP AND I'VE BEEN TO 10 STATES FOR EVERY YEAR WITH THOUSANDS OF PEOPLE COMING TO THESE PRESENTATIONS.

WHAT I LIKE IS THAT THERE IS NO FEE.

YOU DON'T HAVE TO BE AARP MEMBER.

THEY DON'T ALLOW ANYTHING TO BE SOLD.

STRICTLY AN EDUCATIONAL PROGRAM FOR PEOPLE TO COME AND LEARN ABOUT THESE SCAMS AND HOW THEY WORK AND WHAT TO DO, BEING PROACTIVE.

>> GOES A LONG WAY TO KEEPING PEOPLE SAFE.

>> Steve: FOR THE VERY YOUNGEST AND THOSE WHO ARE STARTING OUT WITH IPHONES THAT THEY CAN'T SEEM TO GET OUT OF THEIR HAND OR WHAT PUT DOWN THEY PUT MORE DATA IN THERE THAT THEY KNOW.

>> THREE THINGS TO REMEMBER ON SOCIAL MEDIA.

YOU NEVER WANT A STRAIGHT PHOTOGRAPH OF YOURSELF.

BY THAT I MEAN A DRIVERS LICENSE PHOTO, PASSPORT PHOTO THEY ARE EASILY TAKEN AND USED FOR IDENTITY TO SAY THAT THEY ARE YOU.

YOU DON'T WANT A STRAIGHT PHOTOGRAPH OF YOURSELF AND FACIAL RECOGNITION TOOLS LIKE PIT PAD AND FIND A FACE OR SIMPLE TOOLS ARE AVAILABLE ONLINE THAT COULD BRING ME TO YOUR FACEBOOK PAGE JUST BY TAKING A PICTURE AND SEARCHING THE FACEBOOK PAGES AND BRING ME TO YOUR FACEBOOK PAGE.

IF YOU HAPPEN TO TELL ME ON YOUR FACEBOOK PAGE WHERE YOU WERE BORN AND YOUR DATE OF BIRTH THEN IT'S 98 PERCENT OF ME STEALING IDENTITY.

I ALWAYS TELL YOUNG PEOPLE YOU WILL HAVE A PHOTO OF YOU AND YOUR DOG.

YOU HAVE A PHOTO OF YOU AND YOUR FRIENDS.

PLAYING A SPORT OR BASEBALL.

NEVER, EVER TELL ANYONE WHERE YOU WERE BORN AND YOUR DATE OF BIRTH OR YOU MIGHT AS WELL SAY, COME AND STEAL MY IDENTITY.

>> WE CREATED SOMETHING, HAVEN'T WE.

KIND OF A MONSTER.

>> I SAID FACEBOOK WILL TURN OUT TO BE LIKE PIT COINS.

IT WILL BE A BAD THING.

IN THE END, THERE WILL BE A BIG BUST.

PEOPLE AND YOU CHANGE THE PSYCHOLOGY OF THE WAY PEOPLE THINK AND THEY ARE SO TIRED AND NOW TO FACEBOOK THAT I THINK IN THE END, FACEBOOK ISNOT GOING TO BE A GOOD THING.

IT WILL END UP BEING A BAD THING .

>> THANK YOU FOR BEING WITH US.

THANK YOU FOR YOUR TIME.

>> Mr.

Abagnale: THANK YOU.

>> Steve: THANK YOU FOR WATCHING.

SEE YOU NEXT TIME.