Thursday, June 15, 2023

Eight who tried to quit their job in Mexican call center offering to “buy” timeshares are murdered


Two Nigerian men extradited to the US from the UK plead guilty to inheritance fraud scheme; sent letters to older victims in the US that claimed to be from a bank in Spain; got at least $6 million from over 400

20 percent of all applications to California community colleges are fakes; scammers use ID theft to get financial aid; get federal Pell grants which no longer verify income; Dept of Education says it has 48 investigations of scam gangs doing this  
 


FBI warns scammers are taking photos and videos from the Interent, using technology to make them sexually explicit, and then demanding money unless victims send either money or more explicit videos
 
Spain and Greece lead European effort against counterfeit clothes, shoes, and accessories
  • 378 people arrested
  • Nearly 2 million items seized
  • 278 brands infringed
  • €87 million seized
SEC sues Binance and its founder for selling unregistered securities, other violationsseparately moves for injunction and to freeze company assets
 
Eight who tried to quit their job in Mexican call center offering to “buy” timeshares are murdered; body parts found buried in plastic bags
 
FCC taking additional steps to require phone companies to identify and  cut off illegal robocalls

Myth #8:  Consumer education can do little to prevent fraud. By Anthony Pratkanis

At the beginning of this century, I devised a methodology for testing the effectiveness of fraud prevention interventions.  In this “sting” approach, the potential target of a fraud is randomly assigned to either an intervention or a control and then, a few days later, receives a fraudulent pitch.  

Doug Shadel and I used this sting methodology to test various interventions (the results published by AARP).  We found the following:  Reverse boiler room call centers (which warn victims) are an effective intervention tool.  A forewarning message (your phone number is on a list used by fraudulent telemarketers plus information about how to respond to fraud) reduced investment fraud victimization by 50%.  A forewarning message with the addition of questions to ask and think about, in this case asking for a charity’s registration number and how much goes to charity, reduced charity fraud victimization by over two-thirds.  In contrast, a message that increased fear and defensiveness (imagine the con as a stranger with a ski mask coming to your door; would you let them in?) actually increased victimization.  

In addition, Shadel and I developed an investment seminar which taught about the nature of investment fraud, at-risk behaviors, how con criminals persuade, and best practices for preventing victimization.  This was also shown to reduce victimization by 50%.

This research provides a guide to developing effective interventions:  (a) do not raise fear and defensiveness, (b) warn about the crime, (c) provide information about fraud schemes and tools to respond to fraud, and (d) encourage a critical and questioning approach to potential fraud pitches.  Please let the Fraud Report know if you are aware of any additional research on the value of consumer education.

All myths collected here
 

Fraud Studies: Here are links to the studies I’ve written for the Better Business Bureau: puppy fraudromance fraud; BEC fraudsweepstakes/lottery fraud,  tech support fraudromance fraud money mulescrooked movers, government impostersonline vehicle sale scamsrental fraud, gift cards,  free trial offer frauds,  job scams,  online shopping fraud,  fake check fraudand crypto scams
 
Fraud News Around the world
Humor                                                                               FTC and CFPB   Virus Benefit Theft RansomwareData Breaches Bitcoin and cryptocurrencyATM SkimmingJamaica and Lottery FraudRomance Fraud and Sextortion