Police powerless to pursue identity theft
Staff writer
Police say there is little they can do beyond documenting that a Hillsboro man was a victim of identity theft involving a fraudulent student loan .
Lewis Settle reported the case March 17, according to a Hillsboro Police Department offense report.
The loan was for $10,382, according to the report.
Settle is not expected to be held financially responsible, officer David Funk said. The loss would fall to the lending institution.
“The actual victim is going to be the lending institution,” Funk said.
He explained that the case fell outside local jurisdiction because the lender was not based in Hillsboro.
Settle contacted police after receiving a letter dated March 1 from Nelnet, a federal student aid servicer, stating a student loan issued in his name had gone into default and could result in consequences such as wage garnishment or seizure of tax refunds.
He told police he had not taken out any student loans after paying off previous loans more than a decade ago.
Cases like this often involve multiple jurisdictions and can be difficult to investigate, Funk said, particularly when suspects may be located outside the area or even overseas.
“The lending institution will often just write the loss off,” Funk said.
Fraud investigations can take months or longer and often require subpoenas and coordination with outside agencies, he said.
“Fraud is definitely a big business,” Funk said.
Police advise residents to monitor financial accounts closely and report suspicious activity immediately.