Internal staff survey at the FTC finds huge plunge in trust of senior managers
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WSJ: State of Arizona has database of money transfers over Western Union, MoneyGram and RIA for 20 countries, and law enforcers can consult it without a warrant
Review and recommendation/Courtroom Drama of the week: The last one I will recommend is To Kill A Mockingbird. Released in 1962, it stars Gregory Peck, which won him Best Actor, and was nominated for best picture. It is a powerful movie, involving a trial of a black man, and if by chance you’ve not seen it do so right away. Do you have a favorite? Send it in to steve@bakerfraudreport.com
Basic Fraud: Con Man is short for Confidence Man, someone who gains your trust in order to fleece you. Guest post by Anthony Pratkanis. This blog post by Jeff Smith provides an overview of how con criminals of the 1880s found their victims and began to establish the trust needed to enact their crimes. Jeff is the great grandson of Soapy Smith and has gathered extensive information about Soapy's life. As such, we have more information about Soapy Smith than any other con criminal -- a gold mine for those who research the modus operandi of confidence-grifters. https://soapysmiths.blogspot.com/2023/01/how-soapy-smiths-gang-obtained-their.html
From a social-psychological point of view, the methods are remarkably similar to those used by today’s confidence-grifter: (a) secretly profiling and obtaining information about the target (hotel registry and information books whereas today’s cons use a list broker, maintain and trade lists, and gather information via social media and other media) and (b) using that information in an initial contact and thus creating an instant relationship via ostensibly shared similarities and a false familiarity.
New links!
Fraud Studies: Here are links to the studies I’ve written for the Better Business Bureau: puppy fraud, romance fraud; BEC fraud, sweepstakes/lottery fraud, tech support fraud, romance fraud money mules, crooked movers, government imposters, online vehicle sale scams, rental fraud, gift cards, free trial offer frauds, job scams, online shopping fraud, and crypto scams
Fraud News Around the world
- Israel to extradite six to the US for binary option fraud
- Missouri attorney general settles case against timeshare exit company and its owner
- Alaska sues Missouri company over deceptive mailings about extended car warranties
- Florida sues VoIP company there that transmitted foreign robocalls into the US phone system; including calls claiming to be from Social Security
- Canada: Two more from Quebec arrested for grandparent scam in Saskatoon
- Top three scams in Viet Nam: Counterfeiting, account takeovers, and romance frauds
- Pennsylvania: Hawaii couple charged with fraud; sold fake woodblock art around the world; claimed it was from 15th century
Humor
- Portland lawyer accused of stealing client money used it at nudist resort and for an African safari
- Police in Maine nab man for DUI on riding lawnmower
- Man tries to rob grocery store with loaded stapler
FTC and CFPB
- Internal staff survey at the FTC finds huge plunge in trust of senior managers
- FTC case against Wealth Express investment company gets $1.7 million penalty
- FTC resolves case with Pyrex over Made in the USA claims for measuring cups made in China
Virus Benefit Theft
- Virginia: Man pleads guilty to PPP fraud; got $1.1 million
- Florida: Man sentenced to over eight years prison for PPP fraud; was extradited from Croatia, had been living in Switzerland; got $7.4 million; bought luxury cars, Florida mansion
- Virginia: Six indicted for unemployment benefit theft
- Boston: Man gets two years prison for identity theft to steal unemployment benefits; got $65,000
- Florida: Four get prison for PPP fraud scheme; got $28 million
- Texas: Two plead guilty to PPP fraud; got $1 million
Ransomware
- Pennsylvania Maternal and Family Health Services loses data on nearly 500,000 people in attack
- Chaos as ransomware hits UK Royal Mail
- Attack on fleet management software affects 1000 ships
Data Breaches
- Hackers get into systems at Liquor Control Board of Canada; country’s biggest alcohol retailer; install code to steal credit card and other information
- Personal information from 1.3 Japanese million holders of Aflac cancer policies and 700,000 Zurich auto insurance leaked
Bitcoin and cryptocurrency
- San Diego: DOJ to return $17 million to BitConnect investment fraud victims
- Nigeria arrests two for crypto investment scam
- US indicts Russian man who lived in China and who was founder and CEO of crypto operation Bitzlato, which laundered $700 million from Dark Web marketplace
ATM Skimming
Romance Fraud and Sextortion
- Boston: Man gets two years prison for romance fraud; laundered over $1 million from victims
- Nigeria: Police arrest man who lured American romance fraud victim to Nigeria; she is rescued by cops
- Rhode Island: Man (Nigerian?) pleads guilty to laundering $1.6 million from romance fraud victims