ReportWire

Tag: scams

  • Woman Misuses Fire Fundraiser Donations in ‘Appalling’ Scam | Entrepreneur

    Woman Misuses Fire Fundraiser Donations in ‘Appalling’ Scam | Entrepreneur

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    A woman set up an equestrian-themed fundraiser, ostensibly to aid wildlife and victims affected by the Australian bushfires in 2020. However, the funds that actually made it to the cause were slim — to say the least.

    Kerry Palin, 27, who was living in Peterborough, England at the time, collected over £34,000 (about $43,000) from online donors and received contributions from more than 300 people who bid on auctioned items and or sent money directly via bank transfers or PayPal. However, Palin only made meager donations of $3.20 each to four charities, amounting to a mere $12.80 in total, the Cambridgeshire Constabulary in the UK said in a press release on Wednesday.

    Palin’s “fundraising” page had over 7,000 members.

    Related: Former Amazon Manager Sentenced to 16 Years in Prison for $9.4 Million Fraud Scheme

    To legitimize her scheme, Palin doctored screenshots of the donations to make it seem as though she donated more than she actually did. When donors questioned her, Palin blocked them. As pressure mounted, she admitted spending the money on “luxury items,” including a “treadmill, hair extensions, and a new rug.”

    “This was an appalling case of fraud where Palin not only deceived generous, kind-natured individuals but deprived the wildlife victims of the wildfires of thousands of pounds in donations, which would have made a huge difference to their lives,” Sam Dane, a police officer who investigated the incident, said in a statement.

    Palin pled guilty to fraud-related charges including fraud by false representation, concealing criminal property, and acquiring criminal property, and was sentenced to 16 months in prison on Friday.

    “I would urge anyone wanting to donate money to good causes to be vigilant and, if in doubt, consider giving directly to the charity itself,” Dane added.

    Related: An 81-Year-Old Florida CEO Just Indicted for a $250 Million Ponzi Scheme Ran a Sprawling Senior Citizen Crime Ring

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    Madeline Garfinkle

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  • AI Fraud is Coming. Here’s What to Look Out For. | Entrepreneur

    AI Fraud is Coming. Here’s What to Look Out For. | Entrepreneur

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    A new wave of fraudulent investment schemes is coming — and it’s powered by AI.

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    Alan Rosca

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  • 3 Common Lies of a Get Rich Quick Scheme (and How to Avoid Them) | Entrepreneur

    3 Common Lies of a Get Rich Quick Scheme (and How to Avoid Them) | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’ve recently received an email from a Nigerian Prince asking for a small sum of money now to help him out of a financial bind, don’t bother. I have already paid it and should be receiving an expeditious reward in the form of gold bricks. It’s a great feeling.

    Thank goodness I didn’t fall for any scams. You’re probably familiar with them; The Ponzi scheme, for example, whereby current investors are paid only by new investors until the jig is up and the new investors dry up. Without naming names, one very famous financial advisor used this ruse and Madoff with millions.

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    Matt Fore

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  • From ’30 Under 30′ to Fraud: The Dark Side of Early Success | Entrepreneur

    From ’30 Under 30′ to Fraud: The Dark Side of Early Success | Entrepreneur

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    In June, Nate Paul, an investor once regarded as a “real estate prodigy,” was indicted on eight felony charges for allegedly making false statements on loan applications, which ultimately led to banks loaning the investor over $170 million. According to the indictment, in one application, Paul claimed to have an account with $31.6 million in cash, when in reality the account in question had less than $500,000. Paul’s alleged violations took place between March 2017 and April 2018.

    In 2017, Paul was named in Forbes Magazine’s much sought-after list of “30 Under 30,” a compilation that pays homage to those who have made remarkable strides in the business world before the age of 31. However, his recent indictment isn’t just a one-off situation wherein a businessman turned out to be a possible con.

    Paul, who pleaded not guilty to the charges and awaits trial, has joined the infamous group of “30 Under 30” honorees who were praised by the public for their early success — before authorities discovered the illicit shortcuts that got them there.

    Since 2011, the magazine has used the annual list to celebrate and honor entrepreneurs who have excelled in their fields early in their careers. The company thoroughly vets each of the nearly 100,000 nominees annually. As the Guardian’s Betsy Reed notes, “The problem here isn’t Forbes, the problem is the vision of success that we’ve been sold and the fetishizing of youth. 30 Under 30 isn’t just a list, it’s a mentality: a pressure to achieve great things before youth slips away from you.”

    So, next time you’re feeling discouraged about not reaching your goals by a certain age, remember these entrepreneurs-turned-felons who were once honored for their accomplishments in their youth. And those accomplishments? They wouldn’t have been possible without cutting corners and crossing legal lines.

    Sam Bankman-Fried

    Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, was named to the list in 2021 for Finance.

    Bankman-Fried started Alameda Research in 2017, and later founded FTX in 2019, which was valued at $32 billion in 2022. But in November of that year, FTX filed for bankruptcy after struggling to raise funds and facing a liquidity crisis, and U.S. prosecutors accused him of fraud. He was arrested in the Bahamas in December 2022 and charged with defrauding investors in a scheme that led to the bankruptcy of his company.

    In February, four additional charges were added to his docket for conspiring to make over 300 illegal political donations. Currently, Bankman-Fried is out on bail, living at his parents’ house, and awaiting trial (which is scheduled for October).

    Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

    Elizabeth Holmes

    Elizabeth Holmes founded Theranos in 2003, a company that promised a revolutionary blood testing technology, and was once hailed as the world’s “youngest self-made female billionaire.” The company caught the attention of high-profile investors and companies (many of which never even saw the technology before investing) and raked up partnerships with big-name brands like Safeway and Walgreens.

    Holmes was never officially on the “30 Under 30” list, however, she did headline the “Under 30 Summit” in 2015, where she also accepted the “Under 30 Doers Award” for her work in the healthcare industry and the potential impact of her company’s technology.

    However, just weeks after accepting her Doers Award, Holmes became the subject of an investigation by The Wall Street Journal, raising questions about the legitimacy of her technology. What ensued was nothing short of one mishap after another: failed lab inspections, a slew of lawsuits, and the not-to-be-forgotten net worth dip of $4.5 billion to $0 in 2016.

    Finally, in 2018, it was revealed that the technology simply didn’t work, the company collapsed, and Holmes was charged by the SEC with “massive fraud,” alleging Holmes knowingly misled investors and the public.

    Elizabeth Holmes speaking during the 2015 Fortune Global Forum in San Francisco, California, in 2015. David Paul Morris | Getty Images.

    After nearly a year of delays due to the pandemic, Holmes’ trial began in 2021, and she was ultimately convicted on four counts of fraud in 2022 and sentenced to 11 years in prison. After a request for a new trial was denied in November 2022, Holmes began her sentence in May 2023. Through it all, Holmes has maintained her innocence. She is currently serving time in prison in Bryan, Texas.

    Holmes’ story of deceit has been the subject of widespread media coverage, including a 2019 HBO documentary, The Inventor, and 2022 Hulu miniseries, The Dropout (for which Amanda Seyfried won an Emmy for her portrayal of the disgraced founder).

    Related: I Worked Side By Side With Elizabeth Holmes. She Seemed Like a Visionary, but We Were All Duped — and It’s a Comfort to See Justice Served.

    Charlie Javice

    Charlie Javice, known for her college financial planning startup Frank, was indicted in May 2023 for wire fraud, bank fraud, and conspiracy charges. Javice’s alleged crimes center on exaggerating the value of her startup during its acquisition by JPMorgan Chase in 2021.

    Javice was named to the list in 2019 in the category of Finance after founding her company Frank, which aimed to help students apply for loans more efficiently.

    Prosecutors claim that she misled the bank by fabricating data and inflating the number of Frank customers. Javice allegedly asked her director of engineering to create fake data, but when he refused, she hired a data scientist to generate a spreadsheet with millions of false user accounts for the $175 million acquisition, and JPMorgan ultimately acquired the app.

    However, in November 2022, an internal investigation led to her termination, followed by her arrest in April. In January 2023, JP Morgan sued Javice for defrauding the company. Javice now faces charges of securities fraud, wire fraud, bank fraud, and conspiracy. She is currently out on bail and has maintained her plea of not guilty.

    Martin Skrekli

    Martin Shkreli was named to the list in 2012 for Finance. At the time, he was recognized for his work as a hedge fund manager and entrepreneur. Shkreli had gained attention for his success in the biotech industry, particularly his involvement with Retrophin, a pharmaceutical company he founded.

    Shkreli went on to co-founded several hedge funds and pharmaceutical companies, including Turing Pharmaceuticals, which notoriously acquired the life-saving antiparasitic and antimalarial drug, Daraprim and then raised its price by 5,455% in 2015. The move earned Shkreli, then called “Pharma Bro,” another title: “the most hated man in America.”

    In December 2015, he was arrested on charges of securities fraud and conspiracy. The charges stemmed from his involvement with two hedge funds, MSMB Capital Management and MSMB Healthcare, as well as Retrophin.

    Shkreli was accused of mismanaging funds, using assets from one of his companies to pay off debts from another, and defrauding investors. The allegations included a scheme in which he illegally used Retrophin’s assets to repay investors who had lost money in his hedge funds.

    Peter Foley | Getty Images

    In 2017, he was convicted of securities fraud and conspiracy, resulting in a seven-year prison sentence and significant fines.

    In 2022, Shkreli was released from prison (about four months early) and is now consulting for a law firm and living with his sister in Queens, New York, according to the U.S. Probation Office.

    Related: ‘The Most Hated Man in America’ Where Is Pharma Bro Martin Shkreli Now?

    Shkreli also gained notoriety in 2015 when he purchased the sole copy of the Wu-Tang Clan album, “Once Upon a Time in Shaolin,” for $2 million at an auction. Fans and the music industry vets criticized the lack of accessibility to such a culturally significant work, exacerbated by Shkreli’s decision to keep it as a rare collectible without plans for a public release.

    Following his conviction, the album was seized by the government (along with his other assets) and ultimately sold in 2021 as part of the forfeiture process. The sale of the album completes Shkreli’s payment of the forfeiture, and the buyer and price remain confidential.

    Obinwanne Okeke

    Obinwanne Okeke, a Nigerian-born entrepreneur, was revered for his achievements in construction, agriculture, and real estate. But in 2021, he was sentenced to 10 years in prison for his role in a computer-based fraud scheme that caused approximately $11 million in losses to his victims.

    Okeke operated a group of companies — including the Invictus Group, which was the center of Okeke’s 2016 “30 Under 30” title — but ultimately conducted various computer-based frauds from 2015 to 2019.

    Okeke’s scheme involved obtaining credentials from hundreds of victims and engaging in “email compromise.” Through fraudulent wire transfer requests and fake invoices, Okeke and his conspirators transferred nearly $11 million overseas. Okeke also carried out other forms of cyber fraud, including phishing emails and creating fraudulent web pages. Okeke is serving his sentence and will be released in 2028.

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    Entrepreneur Staff

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  • Man Charged in $4.5 Million Elderly Timeshare Scheme | Entrepreneur

    Man Charged in $4.5 Million Elderly Timeshare Scheme | Entrepreneur

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    On Tuesday, a federal grand jury indicted a man from West Los Angeles for running a telemarketing scam that targeted elderly victims over the course of a decade, resulting in fraudulent gains of more than $4.5 million.

    Michael Alexai Dragunov, 44, along with Christopher Michael Lang, 42, an accomplice from Kansas, each face 10 charges in total for conspiracy to commit wire fraud and wire fraud related to telemarketing and email marketing campaigns aimed at the elderly.

    From August 2013 to June 2023, Dragunov and Lang allegedly posed as representatives of companies offering advertising and related services to current or former timeshare owners, according to the indictment. The defendants used aliases, Skype phone numbers, and fictitious transactions to hide their identities and make their telemarketing companies appear legitimate.

    The victims were tricked into signing agreements with Dragunov and Lang’s fraudulent telemarketing companies, which claimed to help sell or rent their timeshare properties for a single advertising fee. In reality, the victims never received the promised services or money, even after paying recurring fees totaling hundreds of thousands of dollars over multiple years.

    The men allegedly went to great lengths to keep up the facade of their fraudulent telemarketing agencies, including making “hundreds of phony small transactions” on the companies’ payment processing accounts.

    Related: California Woman Arrested For $60 Million Postal Service Scam

    To extract more money from victims, Dragunov and Lang allegedly employed various deceptive tactics, including falsely assuring victims that the fees would be refunded or reimbursed, asserting that victims still owed taxes on their timeshare properties, and warning that any attempts to dispute payments would result in the loss of all funds and proceeds from potential timeshare sales or rentals.

    If convicted, the men could face a maximum sentence of 30 years in federal prison.

    Related: Instagram Influencer Allegedly Scammed ‘Older’ And ‘Vulnerable’ Americans Out of $2 Million in Romance Scheme

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    Madeline Garfinkle

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  • Why In-Office Work Is The Real Threat to Cybersecurity | Entrepreneur

    Why In-Office Work Is The Real Threat to Cybersecurity | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Imagine a home filled with sophisticated locks, CCTV cameras, and a state-of-the-art security system. Yet, the owner leaves the back door wide open. This is precisely what’s happening in the world of corporate cybersecurity. As organizations fret over the potential risks of remote work, new research suggests the real dangers lurk within the office itself. That finding from a groundbreaking study from the Farmer School of Business at Miami University is definitely a surprise to me and my clients who I help transition to hybrid and remote work, and it will inform some valuable conversations going forward.

    The unexpected benefits of remote work on cybersecurity

    The Farmer School of Business researchers discovered that remote workers exhibit a higher level of cybersecurity awareness and take more security-related precautions than their in-office counterparts (forthcoming in the July issue of Computers & Security). That’s right — working from home might actually make employees more vigilant when it comes to cybersecurity. In my emailed interview with the author Joseph K. Nwankpa, he told me “When we surveyed remote workers, we expected the results to reveal cybersecurity complacency, but surprisingly, the survey revealed remote cyber vigilance.”

    This surprising outcome can be attributed to the so-called “Peltzman Effect” and the complacency framework, which the study draws upon to explore how remote working may trigger a moral hazard regarding employee cybersecurity awareness and security-based precaution-taking. Remote employees tend to feel a heightened sense of responsibility for their own cybersecurity, while office workers often become complacent, trusting their companies to handle cyber threats on their behalf.

    Related: Employers: Hybrid Work is Not The Problem — Your Guidelines Are. Here’s Why and How to Fix Them.

    Complacency: The Achilles’ heel of office workers

    Imagine being on a cruise ship with an impeccable safety record. You might feel so secure that you skip the safety drill and neglect to learn the location of the lifeboats. This is the complacency effect in action. Office workers, surrounded by the perceived safety of their company’s cybersecurity measures, may be less likely to follow best practices and take necessary precautions.

    The study cites prior research that reveals how employees working within the corporate office and boundaries trust their firms to develop, maintain and update security countermeasures to mitigate cybersecurity threats and risks. As a result, these employees are not apt or mindful of security threats and concerns, leading to constrained cybersecurity awareness.

    On the other hand, remote workers, like sailors navigating stormy seas, understand that they must be constantly vigilant. This heightened awareness leads them to take more security-based precautions, ultimately keeping their company’s digital assets safer.

    Indeed, the human element of security is enhanced through a switch to remote work. Thus, Nwankpa stated “Our study found that working from the office within corporate firewalls and security boundaries induced employees to exhibit risky cybersecurity behavior, such as diminished cybersecurity awareness and precaution-taking. However, switching to remote work made employees feel insecure, leading to heightened cybersecurity awareness and cybersecurity precautionary measures.”

    The pivotal role of information security policy compliance

    The study also found that information security policy compliance played a significant role in remote workers’ heightened cybersecurity awareness. This suggests that companies must prioritize and enforce their security policies to ensure that all employees, whether in the office or at home, are adequately prepared to handle cyber threats.

    The research model used in the study examined the impact of remote working on security-based precaution-taking and the role of cybersecurity awareness in the relationship between remote working and security-based precaution-taking. The data collected from 203 remote workers across the U.S. provided strong support for the research model, indicating that remote working is positively associated with cybersecurity awareness and security-based precaution-taking.

    Furthermore, the study reveals that as remote workers gain cybersecurity awareness, they are more likely to apply security-based precaution measures. This reinforces the idea that fostering cybersecurity awareness among remote workers can lead to better protection of organizational information assets against threats.

    Related: Why Cybersecurity Needs to be Prioritised as Small Businesses Face the Cost-of-Living Crisis

    Remote Work: A potential solution to cybersecurity woes

    Contrary to popular belief, the findings of this study demonstrate that remote work can actually improve cybersecurity. Companies can leverage this knowledge to their advantage, promoting remote work arrangements and fostering a culture of vigilance and cybersecurity responsibility among their employees.

    One way to achieve this is by understanding the relationship between cybersecurity awareness and security-based precaution-taking. By focusing on this relationship, organizations can clarify how and when remote working can create positive cybersecurity behavior among end-users, as suggested by the study.

    Organizations should not shy away from embracing remote work arrangements, as the study reveals that these can lead to better cybersecurity outcomes. By fostering a culture of trust, personal responsibility, and cybersecurity awareness among remote employees, companies can empower their workforce to take the necessary precautions and maintain a high level of vigilance, ultimately leading to a more secure digital environment.

    The importance of training and employee engagement

    To further enhance cybersecurity in a remote work setting, organizations should invest in comprehensive training programs that cover both technical and behavioral aspects of cybersecurity. By making employees aware of the potential threats and risks, as well as providing them with the tools and knowledge needed to protect themselves and the company, businesses can significantly reduce their vulnerability to cyberattacks.

    In addition, organizations should actively engage their remote employees and encourage open communication about cybersecurity issues. By involving employees in the decision-making process and addressing their concerns, companies can create a sense of ownership and shared responsibility for the organization’s cybersecurity.

    Reevaluating Cybersecurity Strategies for a Hybrid Workforce

    As the business world moves towards a more hybrid workforce, with a mix of office-based and remote employees, it is crucial for organizations to reevaluate their cybersecurity strategies. Companies must consider the unique challenges and opportunities presented by remote work and adapt their policies and practices accordingly.

    This may involve updating security protocols, implementing new technologies, and rethinking the traditional office-centric approach to cybersecurity. By embracing the unexpected benefits of remote work and adapting to the evolving digital landscape, organizations can create a more secure and resilient future.

    The groundbreaking study from the Farmer School of Business at Miami University opens the door for further research into the distinctions between remote and office work and their implications on cybersecurity. Future research could explore how different remote work arrangements, such as hybrid models or fully remote workforces, may impact cybersecurity awareness and precaution-taking behavior among employees.

    Moreover, researchers could investigate the role of various factors, such as organizational culture, leadership, and technology, in shaping employees’ cybersecurity behavior in both remote and office environments. This would provide valuable insights to help organizations develop more effective strategies for managing cybersecurity in an increasingly connected and remote world.

    Related: Cybersecurity Practices That Protect Your Small Business

    Cognitive Biases and their Impact on Cybersecurity

    Cognitive biases can significantly influence how employees perceive and respond to cybersecurity threats, both in remote and office settings. By understanding the impact of these biases, organizations can tailor their cybersecurity strategies to address these psychological factors and promote more effective security behaviors among their workforce. Let’s explore two specific cognitive biases that may impact cybersecurity in the context of remote work and office environments: the status quo bias and the optimism bias.

    The status quo bias refers to the tendency for people to prefer maintaining their current state or situation, even when change could potentially bring about benefits or improvements. In the context of cybersecurity, employees working in a corporate office environment may be more prone to the status quo bias, as they might assume that their organization’s existing security measures are sufficient to protect them from cyberthreats.

    This complacency can lead to a lack of personal responsibility and a decreased likelihood of adopting new security behaviors or updating existing practices. The Farmer School of Business study highlights this issue, revealing that employees working in corporate offices often trust their organizations to handle cybersecurity threats and, as a result, may neglect their own role in safeguarding company data and assets.

    To counteract the status quo bias, organizations should continuously emphasize the evolving nature of cyber threats and the importance of individual responsibility in maintaining security. Encouraging employees to stay updated on the latest security best practices and providing regular training on new threats can help keep cybersecurity at the forefront of their minds and reduce the impact of the status quo bias.

    The optimism bias refers to the inclination of individuals to underestimate the likelihood of negative events occurring, while overestimating the probability of positive outcomes. In the context of remote work and cybersecurity, the optimism bias may manifest as office-based employees believing that they are less likely to fall victim to cyberattacks than their remote counterparts.

    This overconfidence may lead office-based workers to overlook potential security risks and neglect precautionary measures, such as adhering to company security policies. The Farmer School of Business study supports this assumption by showing that remote workers are more likely to have a higher level of cybersecurity awareness and take more security-related precautions than those working in an office.

    To mitigate the effects of optimism bias, organizations should provide remote employees with clear and realistic information about the cybersecurity risks associated with remote work. Sharing real-life examples of cyberattacks targeting office-based as well as remote workers and emphasizing the importance of personal responsibility can help raise awareness and encourage employees to be more vigilant.

    Conclusion

    The study from the Farmer School of Business at Miami University serves as a wake-up call for organizations to rethink their approach to cybersecurity in the age of remote work. By embracing the benefits of remote work, fostering a culture of cybersecurity awareness, and adapting their strategies to the evolving digital landscape, companies can ensure the protection of their valuable digital assets and navigate the treacherous waters of the cyber world with confidence.

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    Gleb Tsipursky

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  • ‘Ghost Students’ Are Stealing Thousands in Federal Aid | Entrepreneur

    ‘Ghost Students’ Are Stealing Thousands in Federal Aid | Entrepreneur

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    Richard Valicenti, 64, received an out-of-the-ordinary check in the mail last summer. It was $1,400 for a Pell Grant to attend Saddleback College in Orange County, CA. Valicenti, a radiation oncologist at UC Davis, was well-beyond his college years and also had “never heard” of the college he was allegedly attending and getting federal aid for, the San Francisco Chronicle reported.

    While Valicenti was perplexed, college admissions directors and administrators are all too familiar with the situation. Valicenti’s identity had been stolen by criminals attempting to receive financial aid by creating bogus college applications — a practice that has resulted in an unprecedented influx of “ghost students.”

    Ghost students are essentially bots created by fraudsters that take advantage of the application system in hopes of receiving government aid.

    About 20% of California community college applications are fictitious, according to the state Chancellor’s Office, per The Chronicle, and may be an easy target for criminals as community colleges in the state do not require a social security number to apply and are required to accept any applicant with a high school diploma.

    The rise in ghost students has surged since the pandemic, due to online classes which made it easier for ghost students to go under the radar, as well as the U.S. Department of Education’s decision to stop verifying household income in the wake of a national crisis — an initiative that is expected to remain in place until the next award cycle.

    Related: California Woman Arrested For $60 Million Postal Service Scam

    City College of San Francisco reported 59 fraudulent students to the chancellor’s office this spring alone, and has identified 29 ghost students who have received $22,418 in Pell Grants to date, officials told the outlet.

    “It is a 100% disservice to every single taxpayer,” Kim Rich, a criminal justice instructor at L.A. Pierce College told the outlet. “These criminals wouldn’t still be doing this if they weren’t getting the money.”

    Rich said that after instructors cleared out ghost students, spring enrollment at Pierce dropped from 7,658 to 4,937.

    In March, the U.S. Justice Department arrested three women in Los Angeles for allegedly stealing inmates’ identities to falsely enroll in California colleges and steal federal aid. From January 2012 to August 2017, the women allegedly stole about $1 million in student loans.

    “As a result of their alleged scheme, the defendants fraudulently caused the United States Treasury to disburse approximately $980,000 in FSA funds on behalf of straw students,” the U.S. Attorney’s Office said in the press release.

    Related: 3 Arrested on Felony Charges for Allegedly Perpetrating a $4 Million ‘Substantial Food Stamp Fraud Ring’ With Stolen Data

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    Madeline Garfinkle

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  • How to Use New Technology to Combat Phone Scammers | Entrepreneur

    How to Use New Technology to Combat Phone Scammers | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In 2019, Congress passed the TRACED Act to give the Federal Communications Committee (FCC) additional tools to combat robocalls. It’s a problem plaguing public sector call centers and constituents; people still receive millions of robocalls (automated or pre-recorded messages) and scam calls (made by criminals) every year in the U.S.

    It is incumbent that government agencies utilize the technological tools available today to combat fraudulent, phone-related activity, boosting public trust and the constituent experience.

    The not-so-smartphone problem

    The household landline is steadily declining; roughly one-third (37%) of homes still have one. In an incredible technological revolution, smartphones have become the preferred telephone device for most homes and individuals. Smartphones are powerful, but their ability to root out scam calls is still decidedly inefficient. Today’s smartphones don’t pull caller ID data from a centralized registry of phone numbers. Instead, they rely on information from your contact list to identify incoming calls. Essentially, you tell your phone who’s calling — not the other way around.

    Most people don’t realize cell phones lack a caller ID, causing problems for public agencies trying to reach beneficiaries or constituents. To deal with the over 3 billion spam calls received per month, most people simply ignore numbers they don’t recognize.

    Due to this breakdown in public trust, many government agencies won’t initiate contact via phone. Rather, they’ll return calls from consumers who request help. However, if a recipient misses a call, they’re faced with the daunting prospect of returning it — only to navigate endless menus and jump through hoops to reach a live person on the other end. The result is a further breakdown in trust and loss of confidence in the efficacy of public sector call centers.

    Phone service providers have developed technical ways to alleviate the problem of eroded trust. Many major providers employ a certification system for phone numbers registered to customers. This development resulted from the STIR/SHAKEN caller identification framework set forth by Neustar Management and mandated by the FCC as part of the TRACED Act.

    With caller ID authentication standards like STIR/SHAKEN, phone service providers verify a caller’s actual number matches the caller ID information, enabling higher trust for the receiver of the call. It’s a small step, but it indicates how the public sector can better leverage technological tools to solve these problems. Unfortunately, the scammers have a vote in this process too, and they’re not going away without a fight.

    Related: Rising AI Threat Sounds Like Your Loved One on the Phone — But It’s Not Really Them

    Robocalling isn’t going anywhere

    Robocalls and scam calls aren’t subsiding anytime soon — they’re too lucrative for the fraudsters who perpetrate them. In 2021, fraudulent calls cost Americans over $29 billion. Without positive identification in the form of verified caller ID, the public is never sure they’re talking to a legitimate service. The result is a concerning loss of trust in government call centers.

    Fraud doesn’t stop at government call centers. Law enforcement agencies have seen an alarming jump in a spoofing technique known as swatting. The basic concept is the same, but the agency is the initial victim of the scam — with potentially deadly consequences for those whom agencies are charged with protecting.

    Many government call centers have tried to combat spoofing practices by eliminating initial contact with customers via telephone, but millions of people fall for these scams every year. Some agencies send public reminders that they won’t call about an issue, but scammers make their calls convincing enough to succeed.

    Related: How To Avoid Spam Calls And Focus On Important Ones

    How technology can help

    All is not lost. Scam calls are a technical problem that requires a technical solution. There are many tools public agencies and private organizations can implement to rebuild trust with consumers. One example is emerging technology in providing better caller ID by applying a token to verified phone numbers or displaying a branded logo on the receiver’s phone. Services like this allow organizations to ensure outbound calls aren’t mislabeled as spam calls or blocked by the telephony system and that they actually originate from the correct entity.

    It’s similar to your fingerprint: difficult to fake and uniquely tied to your identity. Calls can be certified as they’re routed by verifying the phone number belongs to the person (or call center) placing the call.

    Major cell phone providers often use each other’s databases as trusted sources, too, so this tool isn’t limited to a single provider. It can also stop spoofed outbound calls at the source and identify likely fraudulent calls so people can screen them appropriately.

    Another emerging caller ID technology has worked remarkably well for the Virginia Department of Health (VDH). During the height of COVID-19, the VDH reached out to patients and close contacts daily. When only an unidentified phone number was displayed, many calls went unanswered, wasting the department’s time and resources.

    When the VDH branded the calls as they displayed on recipients’ phone screens, presenting the department’s logo and name on the recipient’s smartphone, its first-time answer rate jumped 105% almost immediately.

    Related: This Saas-Based Startup Is Disrupting Call Centre Market With AI-Based Voice Bots

    Tools to repair trust

    Scammers are constantly innovating, but the technology sector innovates alongside them. Call carriers, third-party service providers and the federal government continue to develop new anti-spoofing tools, processes and policies to protect consumers — and public sector agencies must be sure to use them. Through constant vigilance, they can combat fraudulent phone calls, bolster public trust and improve the customer service experience.

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    Scott Straub

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  • Caroline Calloway Survived Cancellation. Now She’s Doubling Down

    Caroline Calloway Survived Cancellation. Now She’s Doubling Down

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    She continued to make plans after 2017, yet, one by one, they’ve sputtered, conked out. There’s a Reddit thread created by SMOLBEANSNARK dedicated to tracking and annotating her Instagram posts about Scammer. She’s blamed holdups variously on the return of her mother’s cancer, excessive partying, solidarity with Black Lives Matter. Shipping dates have come and gone many times. On November 8, 2020, she vowed that Scammer would be “AT LEAST 400 pages, more likely 450.” (Flash forward: One month after my Sarasota visit, I receive a text. “Scammer update: It’s taking shape before my eyes into more a book of 65 prose poems than a ‘memoir.’ ” Second flash forward: As of the printing of this issue, Scammer has not yet shipped. Neither has I Am Caroline Calloway, nor Cambridge Captions.)

    Calloway is still talking, and as I watch her mouth move, the realization dawns: Natalie Beach, c’est moi.

    Beach isn’t who I want to be. That, though, is who Calloway has turned me into. First of all, she makes disinterested journalism impossible. You can’t stay detached. She simply won’t allow it.

    For example, a few weeks ago, over Zoom, I was listening to her read out loud a paragraph she’d written: “For months, I let a pool boy who is also a plumber fuck me without a condom. I haven’t used a condom in years.”

    Unable to help myself, I interrupt. “You should stop having sex without a condom.”

    She looks up at me, looks down, then gives a small shake of her head. “Oh,” she says. “No.”

    I sigh.

    For another example, over a different Zoom, I notice that she keeps pausing to suck on a lemon wedge. I ask her what she’s doing. She’s just taken mushrooms, she explains, and the lemon enhances the mushroom’s potency. I express irritation because I’d blocked out two hours for this interview, and now she was going to be too high to answer questions. No, no, she assures me, she won’t be too high to answer questions. Five minutes later she whispers, “I’m too high to answer questions.” I sigh.

    She can be sweet and funny and charming, yet she has no respect for boundaries, personal or professional. In the middle of a conversation, she’ll fasten her eyes on mine, say breathily, “I’ve always thought I’d meet a journalist that I’d be friends with. I really hope it’s you.” Last March, she randomly sent me a video of herself getting ready to go out for the night. She was wearing a minidress and kept flipping it up, flashing her Red Scare thong, and doing this obscene darting thing with her tongue. My sons, then nine and seven, were constantly stealing my phone to watch.

    If I continue talking to her, researching her, writing this piece on her, I’ll end up scrubbing the period blood out of her comforter, same as Beach. (Well, Beach didn’t scrub the blood-stained comforter, but she did stash it.) 

    Really, though, Natalie Beach, c’est moi because Calloway makes me her collaborator. She needs one more than anybody I’ve ever met. There’s an air of purgatory about her. She’s been locked in a moment for six years, the moment she broke the contract with Flatiron. She’s doomed to try to write the book and fail to write the book over and over. She gives the book different titles—And We Were Like, Scammer, I Am Caroline Calloway—but it’s all, I’m convinced, the same book because it’s all the same story, the only story she has to tell: hers. And yet, for some mysterious reason, she can’t tell it. Not by herself, anyway.

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    Lili Anolik

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  • Father-Son Duo to Serve Time for $20 Million Lottery Scheme | Entrepreneur

    Father-Son Duo to Serve Time for $20 Million Lottery Scheme | Entrepreneur

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    A father and son had their day in court after a decade of lying and scheming to defraud the Massachusetts State Lottery – illegally claiming more than $20 million in lottery winnings to avoid federal taxes.

    Ali Jaafar, 63, was sentenced to five years in prison, and his son, Yousef, 29, will serve 50 months for “unlawfully” claiming more than 14,000 winning lottery tickets in a “ten-percenting” scheme involving multiple convenience stores across the state from 2011 to June 2020, the U.S. Attorney’s Office for the District of Massachusetts said in a press release. The scam resulted in $6 million in federal tax losses.

    The Jaafars purchase winning lottery tickets at a discount from people who wanted to avoid having to identify themselves — lottery winners in the state are legally required to identify themselves to collect their winnings. This allowed the winners to dodge any outstanding tax or child support payments, which are deducted from the prize money if owed, according to the U.S. Attorney’s Office for the District of Massachusetts.

    RELATED: A Florida Woman Was Scammed Out $11,000 By People Claiming to be Arizona Lottery Winners. Now She Wants Justice.

    The scammers would pay convenience stores for leads on winners and then lie to the Massachusetts State Lottery Commission to claim winnings on their behalf. The Commission is set to revoke or suspend more than 40 licensed lottery agents as a “direct result of this case,” said Acting United States Attorney Joshua S. Levy in a press release. “This case is, at its core, an elaborate tax fraud.”

    “Instead of using business savvy and skill to build a legitimate multi-generational family business, the Jaafars carried out a complex decade-long tax and lottery scam, building a vast network of coconspirators to further their illegal activities. Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to manipulate our nation’s tax system,” said Joleen Simpson, special agent in charge of the Internal Revenue Service’s criminal investigations in Boston, in the release.

    Ali, his other son Mohamed (who’s awaiting sentencing after pleading guilty to conspiracy to defraud the Internal Revenue Service in November), and Yousef have been some of the highest individual ticket cashers in the state for years.

    “This case should serve as a warning to those who think they can cheat the system for their own financial gain: you will be identified, prosecuted and held accountable,” Levy said.

    RELATED: This Retired Mathematician Won $26 Million From State Lotteries … Legally

    In addition to defrauding the Commission, the Jaafars would then report their winnings on their income tax returns as fake gambling losses, which allowed the family members to avoid federal income taxes and pocket fraudulent tax refunds totaling $1.2 million.

    Ali and Yousef were convicted by a federal jury in December for one count of conspiracy to defraud the Internal Revenue Service and one count of conspiracy to commit money laundering. Both were also hit with one count each of filing a false tax return. They were ordered to forfeit their profits from the scheme and pay $6,082,578 in restitution.

    “The outcome of this case sends a clear message that anyone complicit in the avoidance of financial obligations through fraudulent Lottery prize claims faces real and severe consequences,” said Mark William Bracken, interim executive director of the Massachusetts State Lottery, in a statement.

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    Sam Silverman

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  • How Not To Get Scammed Buying Concert Tickets On Social Media

    How Not To Get Scammed Buying Concert Tickets On Social Media

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    In late 2022, Taylor Swift broke the internet by announcing the Eras Tour, a nationwide jaunt that celebrates her nine-album career. “Swifties,” as Swift’s fans call themselves, were ecstatic — that is, until Ticketmaster, the sole platform selling tickets for the tour, was unable to keep up with massive demand and crashed, resulting in a federal investigation, a Swifties-backed lawsuit, and a huge scramble among fans to get their hands on tickets in any way possible.

    Thousands of Swifties were unable to purchase tickets from Ticketmaster and, as a result, began looking to third-party vendors and ticket sellers on social media to snag a seat on the resale market.

    A similar thing then happened with Beyoncé’s Renaissance Tour, with “utter chaos” unfolding on Ticketmaster and fans taking to every corner of the internet in a hunt for resale tickets.

    The major issue? Buying concert tickets from people on Twitter and Instagram is incredibly risky. Those platforms don’t have the same type of built-in safety precautions as ticket-specific marketplaces like Stubhub and SeatGeek to ensure that tickets are legitimate and to protect fans from getting scammed.

    With Twitter in particular becoming a hot spot for ticket resales and scams, Swifties have been spreading the word about how to buy legitimate tickets on non-ticketing platforms online. (Twitter does prohibit the promotion of unauthorized tickets, though there seems to be no consequence for doing it, or a way for scammed buyers to be made whole.)

    While buying resale tickets on social media is a gamble, it can be cheaper than purchasing on secondary ticketing sites that charge fees. Multiple Twitter accounts have popped up with the aim of helping people find legitimate tickets. They and others have been sharing tips for how to make sure you’re purchasing real tickets on social media.

    1. Make your purchase using PayPal Goods and Services.

    If you find someone on social media who appears to be selling legitimate tickets, you should only send them money using PayPal’s Goods and Services feature. This ensures you are covered by PayPal’s Purchase Protection.

    This payment method also keeps your financial information secure, monitors the transaction, and offers dispute resolution and fraud prevention. You’ll be eligible for a full refund if you don’t receive the tickets or if they’re illegitimate.

    One popular Swifties-run Twitter account, @erastourresell, connects people selling Eras Tour tickets to fans who want to buy them. The three Swift fans behind the account also offer helpful advice about how to make sure the purchase is real.

    “As soon as a scammer sees the words ‘paypal goods and services’ they run,” they tweeted.

    2. Ask the seller to forward their original purchase confirmation.

    If the person you’re talking to actually purchased a real ticket from Ticketmaster, they received a confirmation email. This email doesn’t include the actual tickets, but states the initial order information. According to Ticketmaster, this confirmation email “is sent to the email you supplied during your booking, up to 72 hours after purchasing your tickets.”

    A confirmation email from Ticketmaster will look like this:

    A real confirmation email from Ticketmaster.

    Someone who legitimately purchased tickets on Ticketmaster or a valid third-party vendor site like SeatGeek or Stubhub will be able to forward you this email.

    However, it’s also important to note that images can easily be doctored, so make sure they send the confirmation message over email. The original sender of the confirmation email should also be a real email address, like customer_support@email.ticketmaster.com or transactions@seatgeek.com. If the email address looks funky, you can Google it to see if anything related to the real website comes up. Otherwise, it may be fake.

    3. Do some digging on their social media profile.

    Should you end up chatting with someone selling a ticket on Twitter, you should snoop around their account. An actual Swiftie will probably have tweeted about the Eras Tour or Swift herself, for example. If they only recently started posting things about the artist you’re trying to see, it may be a scam, said one apparent veteran of the Twitter ticket wars.

    Additionally, some accounts have been accused of using profile photos that are pictures of random fans with Swift, suggesting they may be scammers posing as a real-life fan who needs to sell their tickets. A reverse image Google search can help make sure the person in the photo is the account holder, or you can look through other media they’ve posted to confirm.

    It’s also important to make sure they haven’t recently changed their username. Some accounts will get caught trying to sell fake tickets and then change their handle so you can’t search them to see what other people are saying about their activities.

    Other fishy things to look out for include substantial grammatical or spelling errors, inconsistencies in the tour dates or cities they’re offering, or pushy conversations. If they genuinely want to sell tickets to another fan, they’ll probably be more than happy to show any proof you request so you can feel comfortable.

    4. Search the person’s account name on Twitter.

    Along with digging through their social media history, you can also search their account name on Twitter to see if people are talking about or complaining about them. You can use the Twitter search feature and look up “@username + dm” or ”@username + tickets.” Other people may have posted screenshots of scammy DMs, or other fans may be warning others about buying from them.

    As previously noted, it’s possible for someone to change their username after getting caught or being accused of selling fake tickets, so be cautious about this. Just because you don’t find any complaints doesn’t mean that they’re legitimate.

    5. If they seek you out, they’re probably not legit.

    If it seems too good to be true, then it most likely is. That means if someone randomly messages you asking if you want to buy tickets, it’s probably a scam.

    A person selling legit tickets may post a tweet listing the date and concert venue. More likely, though, they may get in touch with a larger resale hub page, like this one for BTS, or this one for Harry Styles, or @ErasTourResell for Swift. Run almost exclusively by fans, these accounts will have information about buying and selling via their hubs, and their listing processes.

    For example, this Twitter account for Styles’ Love on Tour directs sellers to provide a screenshot of their ticket with their username watermarked, proof of payment, a screen recording from Ticketmaster, and a message stating they’ll use PayPal Goods & Services. While this doesn’t 100% ensure the tickets are legitimate, it helps to have all of those factors checked off.

    6. Ask for a screen recording, but continue to be cautious.

    Asking for a screen recording of the seller’s Ticketmaster app is a good step toward ensuring the tickets are real. Once someone purchases a ticket through Ticketmaster, they’ll be able to access the record of that sale at any time on the app. The account has unique details exclusive to the buyer that they can share with you as a step in the verification process.

    Screen recordings are also easy to manipulate, and @ErasTourResell pointed out it helps to be familiar with what a screen recording of the Ticketmaster app would look like and the signs footage has been faked. If the person sends you a video of their Ticketmaster app, make sure there aren’t any glitches throughout it. All of the information should be correct (like the concert date, seats, row, time, and venue) and the video should be completely smooth and clear, starting from the buyer’s home screen to the ticket.

    7. Don’t send any money until you’ve verified that they’re real tickets.

    It can be tempting to immediately jump on the opportunity to purchase tickets from someone you think is legitimate, but don’t let them push you into sending payment too soon. You should make sure that they’re 100% real prior to sending anything, even if they ask for some sort of down payment (a seller asking for a down payment is usually a sign of a scam, anyway).

    Many fans selling real concert tickets online want them to go to another fan who is just as excited about the show. They almost certainly won’t demand that you send them half the money on Venmo first, and they won’t complain if you ask for various ways to prove the tickets are real. Listen to your gut instincts, be safe, and don’t be too eager about sending money before you verify as much as possible.

    8. If you’re able, opt for a secondary ticketing site instead.

    Third-party ticket vendors like SeatGeek and StubHub are generally safer options. StubHub, for instance, says that buyers and sellers can use the site with 100% confidence via their FanProtect Guarantee, which promises valid tickets or your money back.

    SeatGeek offers a similar promise. Self-proclaimed as a “trusted consumer marketplace,” the service claims that all buyers will receive valid tickets in time for their concert date. If for any reason they don’t, SeatGeek has a Buyer Guarantee that works on a case-by-case basis and offers comparable or better tickets, a full refund or credit.

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  • Overlooking These 4 Critical Measures Expose Your Company to Cyber Attacks | Entrepreneur

    Overlooking These 4 Critical Measures Expose Your Company to Cyber Attacks | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Here’s a sobering truth: 95% of cyberattacks can be traced to human errors. The more employees you have, the greater your risk of being a cybercrime victim. We all imagine legions of hackers trying to tear through our firewalls, and yes, occasionally, some will make it through. But the much-more-common truth is that unsuspecting employees inadvertently grant those cybercriminals access to corporate systems and data, or they are influenced by these hackers to perform questionable (or even illegal) actions.

    Even worse are the willful fraudulent actions of the humans sitting between the keyboard and the chair. Some employees themselves try to cheat the system by changing amounts, bank account details, or other data to benefit their personal financial situation. Then, there are other outside humans up to no good, such as when a supplier or partner sends fake or altered documents to the company, such as vendor invoices with fake bank account details or wrong amounts.

    None of these occurrences are an indictment of company leaders, security practices or judgment. They just highlight that technology alone can’t stop every cyberattack. The key to maximizing protection and minimizing exposure to these attacks is to combine technology with the human touch.

    Related: Cybercrime Will Cost The World $8 Trillion This Year — Your Money is in Danger. Here’s Why Prioritizing Cybersecurity is Crucial to Mitigate Risk.

    1. Secure data starts and ends with humans

    Many cyberattacks succeed due to simple but preventable human error or improper reaction to a scam. For example, an employee might reveal usernames and passwords after clicking on a link in a phishing email. They might open an email attachment that unknowingly installs ransomware or other equally destructive malware on the corporate network. Or they might simply choose easily guessed passwords. These are just a few examples that can allow cyber thieves to attack.

    To minimize human error-related risks, consider implementing the following measures to ensure your business stays well-protected.

    • Strengthen employee awareness and training: Arrange periodic training on cybersecurity best practices, recognizing phishing emails, avoiding social engineering attacks, and understanding the importance of secure data handling. In 2022, around 10% of cyberattack attempts were thwarted because employees reported them, but they can only report such attempts if they recognize them.
    • Build a culture of security: Make sure everyone in their role is actively protecting company assets by promoting open communication about security issues, recognizing employees who demonstrate sound security practices, and incorporating security into performance evaluations.
    • Employ stricter access controls: Access controls limit who can view or change sensitive company data and systems. Applying the “principle of least privilege” access controls and educating employees on the risks of account sharing can limit unauthorized accesses and data leaks.
    • Use password managers: Strong passwords are difficult to crack but challenging to remember. Password manager software can create and store difficult-to-guess passwords without users having to “write them down.”
    • Enable multifactor authentication (MFA): MFA adds an extra layer of security by requiring an additional verification method — such as a fingerprint or a one-time code — just in case a bad actor does snitch an employee’s password.
    • Implement fraud detection processes for incoming documents: These processes attempt to identify fraudulent documents (like fake invoices) on receipt before they can be processed.

    2. Reduce exposure to cyberattacks and fraud with technology and automation

    While lack of awareness, training, recognition and processes account for the success of most cyberattacks, you still need technology barriers to try and keep determined hackers out of your systems. Finance and accounting offices are top targets for cyberattacks and fraudsters, so the accounts payable (AP) systems are a prime target if they do get in.

    In fact, 74% of companies experience attempted or actual payment fraud. Accounts payable fraud exploits AP systems and the associated data and documents with mischief like:

    • Creating fake vendor accounts and fake invoices for them.
    • Altering payment amounts, banking details or dates on valid invoices.
    • Tampering with checks.
    • Making fraudulent expense reimbursement.

    Related: What Is Phishing? Here’s How to Protect Against Attacks.

    3. Keeping the bad guys out

    Of course, you’ll want your IT department to use technology to thwart unauthorized attempts to access the network and systems in the first place. Besides the venerable firewall, some trusty systems include:

    • Intrusion Detection and Prevention System (IDPS) monitors network traffic for malicious activities or policy violations and can automatically take action to block or report these activities.
    • Artificial Intelligence (AI) plays a significant role in cybersecurity by using machine learning algorithms to analyze volumes of data, identify patterns, and make predictions about potential threats. It can identify attack vectors and respond to cyber threats quickly and efficiently that humans can’t match.
    • Data Encryption ensures that only authorized parties with the correct decryption key can access a file’s content, protecting sensitive data at rest (stored on devices) and in transit (across networks).

    4. Protecting against fraud from the inside

    Whether a cybercriminal slips through all those barriers or an unscrupulous employee is bent on committing AP fraud, various types of automation can detect and prevent the cyber attack from succeeding.

    • Automated monitoring of employee activities: This can help identify suspicious behavior and potential security risks. The software tracks user activity, analyzes logs for signs of unauthorized access, and regularly audits user access rights. Of course, employees should know they are being monitored and to what extent.
    • Automating the payment process end-to-end on a single platform: It takes human error (and human scruples) out of the equation, except when there’s an exception. Encrypted receipt/intake of electronic invoices from suppliers, automated matching of invoices to orders, and electronic payments —all without human intervention — are examples of how automation removes the opportunity (and temptation) to commit AP fraud.
    • Document-level change detection takes this protection one step further: This automated technology can detect when a sneaky cyberthief with access to the underlying systems makes unauthorized access attempts, modifications, or deletions to sensitive documents, including orders, invoices, and payment authorizations. These tools alert administrators and provide detailed audit trails of document activity, helping detect and prevent AP fraud, whether it comes from outside or inside.
    • Detection of unusual data patterns: Alert AP staff to take a further look before allowing the invoice to be processed and paid. Using machine learning and AI, automated systems can compare data with historical data, flagging suspicious changes in bank details, vendor’s legal name, and address as well as unusual payment amounts.

    Related: How AI and Machine Learning Are Improving Fraud Detection in Fintech

    It’s almost impossible to protect yourself entirely against cyber theft and AP fraud, especially when most of the vulnerabilities and culpabilities are human. You must focus your security efforts on the perfect balance between state-of-the-art technology and the humans between the keyboard and the chair. Proper and continuous training can reduce the human errors that allow cyberattacks to succeed. And technology and automation can help prevent attacks from reaching people in the first place. But the right combination of the two, though, is the key to defeating would-be fraudsters.

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    Francois Lacas

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  • What Is Card Skimming? Here’s How To Prevent the Rising Crime | Entrepreneur

    What Is Card Skimming? Here’s How To Prevent the Rising Crime | Entrepreneur

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    Card skimming is the practice where devices are installed on ATMs, point-of-sale (POS) terminals, or fuel pumps to capture data or record cardholders’ PINs to open fake accounts and steal victims’ funds.

    According to the FBI, skimming costs victims and banks nearly $1 billion annually – and the practice is on the rise.

    A new report from data analytics company FICO (the company’s “FICO score” product is used in consumer lending) found that, in 2022, there was an alarming 368% increase in debit card skimming compared to 2021.

    “These statistics point to an issue that isn’t going away,” Debbie Cobb, senior director of product management at FICO, wrote in the report. “Unfortunately, we expect to see high volumes of skimming points of compromise (POCs) and compromised cards this year as well.”

    The data also found that, of all the points of compromise, 75% were newly installed in 2022, indicating that skimming has expanded over the past year and that trend is likely to continue.

    A former “skimmer,” Michael Perez, told CBS that in just three days of skimming he could steal up to $30,000.

    Related: 5 Biggest Credit Card Scams and What You Can Do to Protect Yourself

    Moneka Williams, a victim of skimming in South Florida, told the outlet that her SNAP card — a federal program that offers individuals in need a monthly amount to purchase necessities — had been compromised.

    “I told the clerk to scan it again, and it was a zero balance,” she told CBS. Skimmers had drained her $800 balance.

    While card skimming continues to sweep the nation, there are several ways to try to prevent it:

    • The FBI suggests using a gas pump that is in direct view of a store attendant, as those sites are less likely to be targeted for fraudsters to install a skimmer.
    • When using ATMs or POS terminals, look for anything suspicious on the machine and don’t use if anything is loose, crooked, damaged, or scratched.
    • Run your debit card as a credit card, as skimmers won’t be able to collect your PIN. If not possible, cover the keypad when entering your pin to prevent hidden cameras from recording the digits.

    Related: 10 Credit Card Scams Happening Right Now

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    Madeline Garfinkle

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  • Doctor With Revoked License Gets Prison For Insurance Scam | Entrepreneur

    Doctor With Revoked License Gets Prison For Insurance Scam | Entrepreneur

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    In 2009, Julian Omidi, a former dermatologist, had his medical license revoked for engaging in dishonest and unprofessional behavior. Just a few months later, in February of 2010, Omidi would go on to launch a controversial weight loss program and begin a multi-million dollar scheme of fraudulent insurance claims.

    On Monday, Omidi, 54, was sentenced to seven years in federal prison for submitting nearly $120 million in fraudulent insurance claims in relation to his business, 1-800-GET-THIN. The business promoted and sold weight loss through Lap-Band surgeries in partnership with clinics and weight loss centers.

    “Omidi deliberately and repeatedly acted with an eye towards business and profits, rather than in the interest of GET THIN’s medical patients, by inducing patients to undergo medical treatment premised on fraud rather than medical necessity, including surgeries that carry significant risks and life-long health impacts,” said United States Attorney Martin Estrada, in a statement.

    As part of the insurance scheme, Omidi had prospective patients undergo at least one sleep study — and then instructed employees to falsify results to get the client’s insurance company to pre-approve the procedure, according to court documents. If insurance companies did not approve the surgery, Omidi still submitted bills for the sleep studies, which cost about $15,000 a pop. Prosecutors estimate that insurers paid an estimated $41 million to Omidi’s 1-800-GET-THIN business throughout his scheme.

    Related: Nursing School Operators in Florida Face 20 Years in Prison For Selling Thousands of Fake Diplomas To Students

    “Omidi was well educated; he had every opportunity to be successful and make ethical decisions. However, driven by greed, he committed some of the most unconscionable and atrocious acts,” Tyler Hatcher, special agent in charge of IRS Criminal Investigation’s Los Angeles Field Office, said in a statement.

    The “safe, one-hour” procedure promised patients a quick, easy route to weight loss using a Lap-Band. However, from 2010 to 2014 Michael Hiltzik of The Los Angeles Times reported on five cases of patients dying after receiving Lap-Band surgeries at clinics affiliated with 1-800-GET-THIN.

    In addition to the prison sentence, Omidi’s Beverly Hills-based company, Surgery Center Management LLC, was put on five years of probation.

    Related: A Scammer Posing as Elon Musk Tricked a Florida Principal into Sending $100K in School Funds: ‘I Fell for a Scam’

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    Madeline Garfinkle

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  • Online Dating Scammer Steals $1.8 Million from His Victims | Entrepreneur

    Online Dating Scammer Steals $1.8 Million from His Victims | Entrepreneur

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    Look out for people on dating apps who offer investment opportunities too good to be true.

    That’s the message from the District Attorney’s Office in New York City, which recently brought charges against a lying Lothario they allege swindled his lovers out of millions.

    Nelson Counne, who also goes by “Nelson Roth” or “Justin Roth,” was indicted in a Manhattan court for bilking more than $1.8 million from five women through a series of romance and investment scams.

    “He allegedly fed lie after lie to women he falsely claimed to have a romantic interest in, enticing them with investment opportunities that never existed while using their funds to repay past victims, lure in new ones, and fund his lifestyle,” said District Attorney Alvin L. Bragg, Jr.

    Related: The Scam Artist Who Robbed Backstreet Boys and NSYNC Blind. ‘Some of the Guys Couldn’t Pay Their Car Payment.’

    Dating for dollars

    Counne, 69, met most of his victims via online dating sites, where he posed as a wealthy retired art dealer and investor with homes in London, Manhattan, and the South of France, according to the indictment.

    In reality, Counne doesn’t own any homes and never travels internationally—he doesn’t even have a passport. His sole source of income was the money he stole from his lovers between 2012 and 2021.

    The scam worked like this: After winning his victims’ affection and trust, Counne convinced many of them to invest with him. He never shared any details of his business dealing, claiming the investments were in a “gray area between legal and illegal” and that he had access to inside information.

    Some of his phony investments included Alibaba and a start-up purportedly run by a former Google executive, which would provide an online lottery that potential college students could pay to enter for a chance to win tuition coverage.

    “Most of the victims were initially hesitant, but Counne persisted until each agreed to invest,” according to a press release by the Manhattan District Attorney’s Office.

    A Ponzi scheme

    The DA alleges that Counne ran a classic Ponzi scheme, using the money from one of his marks to pay another. This enabled him to appear wealthy to new victims and repay previous victims suspicious of his fraud.

    Counne now faces charges of scheme to defraud in the first degree, grand larceny in the second degree, and grand larceny in the third degree.

    Romance scams like this are not uncommon. In 2021, some 24,000 victims reported losing approximately $1 billion to romance scams, according to the FBI.

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    Jonathan Small

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  • Miami Influencer Uses COVID Funds to Fund Her Lavish Lifestyle

    Miami Influencer Uses COVID Funds to Fund Her Lavish Lifestyle

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    The U.S. Department of Justice has indicted a Miami-based luxury real estate influencer for committing a Covid-19 scam to pay for her jet-set lifestyle.

    The Feds allege that glamorous real estate agent and Instagram influencer Daniela Rendon, 31, fraudulently obtained $381,000 of COVID-19 relief loans and grants under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Relief Program.

    Image via Daniela Rendon/Instagram

    Rendon, who has over 33,000 followers on Instagram, allegedly falsified her revenue and payroll and submitted fraudulent IRS tax forms to get a huge paycheck from the government. She wrote fake checks to herself, family members, and friends to disburse the funds.

    The U.S. Attorney’s office has accused her of using the stolen money to lease a 2021 Bentley Bentayga, rent a luxury Biscayne Bay apartment, pay for cosmetic skin treatments, and refinish her designer shoes.

    Related: The Scam Artist Who Robbed Backstreet Boys and NSYNC Blind. ‘Some of the Guys Couldn’t Pay Their Car Payment.’

    Image via Daniela Rendon/Instagram

    Related: Pastor and His Son Busted for a $8 Million Covid Scam. ‘The Worst Scuzz on the Face of the Earth.’

    According to Rendon’s LinkedIn profile (now taken down), she is an “Ultra-Luxury Real Estate Agent with a demonstrated history of working in the ultra-luxury high-end real estate industry.”

    Rendon has been charged with seven counts of wire fraud, two counts of money laundering, and one count of aggravated identity theft.

    If convicted, she faces up to 20 years in not-so-luxurious prison.

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    Jonathan Small

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  • Ayleen Charlotte (Tinder Swindler Victim) and AA419 Honored as Scam Fighters of the Year 2023

    Ayleen Charlotte (Tinder Swindler Victim) and AA419 Honored as Scam Fighters of the Year 2023

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    The Global Anti-Scam Alliance has awarded the Scam Fighter awards of 2023.

    Press Release
    –

    Feb 2, 2023 14:30 CET


    AMSTERDAM, February 2, 2023 (Newswire.com)
    –
    Ayleen Charlotte, scam victim of the Tinder Swindler, was honored as ‘Scam Fighter Person of the Year’ 2023. AA419, which has been fighting online scams since 2003, received the Scam Fighter Award for ‘Best Scam Fighting Organization of the Year’ 2023.

    The Scam Fighter Awards is organized annually by the Global Anti-Scam Alliance (GASA) together with ScamAdviser, to bring more attention to the importance of fighting online fraud worldwide. According to GASA, last year, more than $55 billion was lost by nearly 300 million consumers worldwide in online scams. As only an estimated 7% of victims report online scams to law enforcement, these numbers are only the tip of the iceberg. 

    Ayleen, Scamming the Scammer

    The independent Jury, consisting of Donna Gregory (Unit Chief of the FBI Internet Crime Complaint Center), Mitchel Chang (Trend Micro), and Jayde Richmond (Executive Director, Scamwatch, Australian Competition and Consumer Commission), selected Ayleen based on several dozens of nominations from the law enforcement and scam fighting community as ‘Scam Fighter Person of the Year’ 2023.

    Ayleen was a romance scam victim of Shimon Hayut, who scammed millions of dollars out of women he met through dating apps. Donna Gregory elaborates, “What makes Ayleen unique is that she not only came forward and reported the crime but also participated in the Netflix documentary Tinder Swindler to gain more attention to this horrendous kind of crime. She is a role model for other scam victims. Of course, the fact that she as a victim also scammed the scammer and was able to recover some of the money she lost utters respect, but this is something I would not recommend other scam victims to do.”

    AA419, Fighting Scams for 20 Years

    Artists Against 419 started listing fake banks in 2003 in a public database. Over the years, the database expanded to include other forms fraud. The core AA419 team has always been small but with a large fan base. The AA419 membership also includes members from other anti-abuse groups, working with AA419 to expose advance fee fraudsters in a central database.

    The database allows scam victims to check a website. This list now contains ~157,000 entries will full data and is one of the world’s largest manually collected databases of fraudulent websites, making AA419 recognized for its expertise to identify scams by several law enforcement agencies across the globe.

    Jury member Jayde Richmond commented, “AA419 is a research community that provides a valuable service to help tackle online fraud and scams. Its international group of members emphasizes that online fraud is best combated by cross-border cooperation.” Mitchel Chang added, “Trend Micro recognized AA419 as an excellent source for manually vetted scams. Their work is one of the many pillars many security companies rely on to keep consumers worldwide safe.”

    Source: Global Anti-Scam Alliance

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  • Who Is Ruja Ignatova? The FBI’s Most Wanted ‘Crypto Queen’

    Who Is Ruja Ignatova? The FBI’s Most Wanted ‘Crypto Queen’

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    Disgraced “Crypto Queen” Ruja Ignatova’s time on the run may be coming to an end.


    Cryptoqueen via Facebook

    Ignatova, 42, a German citizen born in Bulgaria, is a former crypto pioneer who vanished in October 2017 after over-promising high returns on her OneCoin crypto token in a $4 billion Ponzi Scheme. She’s now facing several charges of fraud and has been on the run from the FBI for five years.

    Although she hasn’t been seen since her disappearance, a new London apartment listing suggests she’s alive and evading arrest.

    Ignatova, the only woman on the FBI’s most wanted list, was recently found to be connected to an £11 million [$13.6 million] penthouse apartment for sale in Kensington, England, thanks to a new rule change by the UK’s Companies House, which acts similarly to the U.S’s Public Company Accounting Oversight Board.

    The rule now requires properties purchased by companies to also list a beneficiary, and while it is believed Ignatova originally purchased the home under a shell company, a new court filing to the UK’s financial regulators lists Ignatova as the “beneficial owner” of the property – inadvertently exposing her whereabouts.

    Ignatova’s connection to the home was first spotted by the host of “The Missing Cryptoqueen” podcast, Jamie Bartlett.

    “[The document] suggests she is still alive, and there are documents out there somewhere which contain vital clues as to her recent whereabouts,” Bartlett told iNews.

    Since Ignatova’s link to the home, which was listed on Knight Frank real estate website, was confirmed, the listing has been removed.

    Here’s what to know about the disgraced “Crypto Queen.”

    RELATED: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

    Who is Ruja Ignatova?

    Before Ruja Ignatova become one of 11 women to be on the FBI’s most wanted list in its 72-year history, she was regarded as a rising star in the crypto industry.

    Ignatova was known for liking glitz and glamour, per CNN, and was revered for growing from her humble beginnings in Germany to success as a consultant and then a crypto entrepreneur.

    Together with her business partner Sebastian Greenwood, the pair convinced investors to back their OneCoin crypto token which they said would be more valuable than Bitcoin. However, authorities found that OneCoin defrauded investors out of $4 billion in one of the largest international fraud schemes of all time.

    “OneCoins were entirely worthless … (Their) lies were designed with one goal, to get everyday people all over the world to part with their hard-earned money,” U.S. prosecutors said, according to court documents.

    Furthermore, the court documents reveal that Ignatova and Greenwood intended to deceive their clients from the get-go, calling their own token a “trashy coin” and discussing an exit strategy in private emails.

    Their scheme imploded in 2016 when investors struggled to sell their OneCoins to recoup their investments, alerting the media and investigators to look into the business.

    Then in October 2017, the U.S. Department of Justice charged Ignatova with one count of wire fraud, conspiracy to commit wire fraud, securities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering, with a federal judge issuing a warrant for her arrest, court documents state.

    But Ignatova fled on a flight from Sofia, Bulgaria, to Athens, Greece, just two weeks after the warrant was issued and she hasn’t been seen since.

    The FBI has offered a $100,000 reward for information leading to her arrest. Additionally, they said: “Ignatova is believed to travel with armed guards and/or associates. Ignatova may have had plastic surgery or otherwise altered her appearance.”

    What Happened to OneCoin?

    Ruja Ignatova and her cofounder lured people to their OneCoin scheme beginning in 2014 by promising investors around the world a fivefold or tenfold return on their investments.

    Taking advantage of the crypto frenzy at the time, investors gave them $4 billion between 2014 and 2016. However, OneCoin’s value was manipulated by the company and it was never mined like other cryptocurrencies, despite telling investors otherwise, according to CNN.

    Once regulators uncovered the scheme and Ignatova vanished, she left her partners to deal with the fallout.

    Cofounder Sebastian Greenwood was arrested in July 2018. He’s currently in jail after pleading guilty to wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money. He is set to be sentenced in April.

    Ignatova’s brother, Konstantin Ignatov, who was also a part of the business scheme, was arrested in March 2019 and is set to be sentenced in February after pleading guilty to wire fraud conspiracy, money laundering, and fraud charges.

    Since the scandal unraveled, OneCoin has been shut down and its website is no longer active.

    RELATED: What Did Bernie Madoff Do? Everything to Know About the Disgraced Financier Ahead of Netflix’s ‘Madoff: The Monster of Wall’

    What Is Ruja Ignatova’s Net Worth?

    A lawsuit filed by the victims against OneCoin revealed that Ignatova had $500 million in Dubai bank accounts as of 2021, per a report by Financial Finds. It’s unknown how much crypto she holds, but the outlet found that she was paid 230,000 Bitcoins by a member of the Emirati royal family in 2015.

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    Sam Silverman

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  • Florida Pastor and Son Arrested for $8 Million Covid Scam

    Florida Pastor and Son Arrested for $8 Million Covid Scam

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    A Florida pastor and his son are accused of doing some very unholy things.

    Earlier this morning, Pastor Evan Edwards and his son Josh, 30, were arrested for bilking taxpayers of $8 million in a COVID-19 relief scam. Police made the arrest at the Edwards’s home in New Smyrna Beach. The elder Evans was seen being pushed in a wheelchair.

    The Edwards are Christian missionaries from Canada who moved to Florida in 2019. They ran an organization called ASLAN International Ministry.

    According to an indictment unsealed today, Josh Edwards “submitted a fraudulent PPP loan application” on behalf of ASLAN International Ministry for $6 million, claiming their ministry had “average monthly payroll expenses” of over $2.7 million and over 480 employees. In truth, according to prosecutors, those numbers were “significantly lower, or entirely nonexistent.”

    Still, back in 2020, the government ultimately approved ASLAN International for an $8.4 million loan.

    Related: I Went to Prison for SBA Loan Fraud: 7 Things to Know When Taking COVID-19 Relief Money

    A long investigation

    The Edwards case dates back to April 2020, when investigators began to see some red flags around the loan.

    For instance, the accountant the ministry allegedly used suffered from dementia and hadn’t done any work for the organization since 2017, according to an investigation by NBC News.

    Later, when Florida Highway Patrol pulled over the Edwards family speeding down I-75 north, they discovered garbage bags full of shredded documents and electronic devices packed in a so-called Faraday bag, which blocks radio frequencies.

    Cops also found a 49-page research manual published by the Bureau of Justice called ‘Tracing Money Flows Through Financial Institutions.’

    Despite the evidence and the damning report by NBC, it took 18 months to file charges in the case.

    But today, Evan Edwards and his son Josh were taken to the federal courthouse in Orlando, where they appeared before a judge. Josh Edwards appeared disoriented and refused to answer the judge’s questions, according to WESH-2 News. The judge ordered a psychiatric evaluation.

    Meanwhile, the reaction in the community has been a mix of shock and indignation.

    “We’re interested to hear the full story. It’s just totally out of character for a man of God, supposedly,” a cousin told NBC News.

    Some neighbors were less forgiving.

    “He stole money during a pandemic,” a neighbor told NBC. “He stole it in the name of God. That makes you the worst scuzz on the face of the Earth.”

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    Jonathan Small

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  • Consumer and Expert Survey Reveals: No Country is Good at Fighting Online Scams

    Consumer and Expert Survey Reveals: No Country is Good at Fighting Online Scams

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    Press Release
    –

    Dec 8, 2022 14:00 CET


    AMSTERDAM, December 8, 2022 (Newswire.com)
    –
    The Global Anti Scam Alliance and ScamAdviser.com interviewed both 200 cybercrime experts as well as 4,430 consumers to determine which country is the best at fighting online scams. In short: it seems no country really deserves to be called “Best Scam Fighting Country of the World”. 

    The 200 experts, in general, believe their country is doing nothing (35%) or only a bit (48%). Only 7% consider their nation the best at fighting scams.  

    The 4,430 consumers likewise rated the performance of their country poorly. Remarkably, the top three best-performing countries are all developing nations: Indonesia, Bangladesh, and the Philippines. Consumers from Indonesia were the only ones who gave their country a “sufficient” 6.1 out of 10. The United Kingdom is listed in fifth place, followed by Canada and the USA falls in eleventh place. 

    Consumers could also rate their country on different aspects of scam fighting, including: 

    • Awareness building
    • Offering tools to identify scams
    • Ease of scam reporting
    • Enforcement of scammers

    The scoring differs little per category. Indonesia, Bangladesh, and the Philippines are listed each time in the top three. Australia was given a 5.9 for ‘Ease of scam reporting’, owning second place in this category with Indonesia rated as #1 and Bangladesh and the Philippines sharing third place. 

    The survey participants listed several reasons for the general poor scoring of their countries. When asked how their country can improve, five main areas for improvement were named.

    The first focuses on building more scam awareness, especially via mass media such as TV and radio. Consumers especially want to see more concrete examples of the latest kinds of scams. 

    A second improvement often named is offering consumers more tools to identify or block scams, be it via phone (especially robocalls), email or websites. While in some countries commercial tools are being offered, not all participants stated having the financial resources to buy these or they believe that these should be offered by the government to protect all citizens. 

    Easier and more centralized reporting of scams is likewise often named. Several respondents stated that reporting of scams cannot be done online in their country. They feel that the police focus on protecting businesses and rich citizens. Some report being laughed at by the police or being told that it is their own fault.  

    The fourth action named is more strict, international legislation. Many participants call for a global dedicated police force combating online scams, especially regarding cryptocurrency schemes.  

    Finally, consumers state that social media should be held more accountable for advertisements of scammers. The same applies to banks. Finally, hosting companies and registrars should be named and shamed more publicly for supporting and even protecting scam sites, or be forced to apply to Know Your Customer (KYC) processes. 

    The full report can be found on GASA and ScamAdviser.

    Source: Global Anti Scam Alliance

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