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
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 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, fake check fraudand crypto scams
Fraud News Around the world
- Ireland warns that criminal gangs are moving away from robbery to “less risky” online scams
- Indiana: Man gets 54 months prison for identity theft; stole records from medical facility and used them to open credit cards
- Durham police arrest Toronto man for rental fraud where he advertised on Facebook Marketplace
- Florida: Two men from India arrested for combination tech support and law enforcement impersonation fraud
- India: Three Nigerians arrested for SIM swap scam used to steal money from bank accounts
- Hong Kong: Customs seized counterfeits worth HK$ 44 million, arrest three
- Thailand: Police arrest 13, including man from China, for operating scam call center reaching out to people on Facebook and asking for contributions to nonexistent charity
- New Jersey: Man from Turkey who was CEO of dozens of companies pleads guilty over selling counterfeit Cisco Networking equipment from China and Hong Kong; hundreds of millions involved
- Nigeria: EFCC arrests twenty for cybercrime
- Police in Halton, Canada arrest woman for grandparent scam
- Thailand cuts power to large complex in Myanmar operated by Chinese to run illegal gambling and fraud call centers
- Number of websites linked to phishing campaigns drops dramatically after Meta sues company that issued the domain names
- Man robs convenience store with Nintendo video game gun
- Mom leaves kids in car while she was shoplifting; car catches fire; charged with neglect
- Credit repair company Lexington Law Firm files for bankruptcy after loss to CFPB
- House oversight committee opens investigation of FTC Chair Lina Khan
- House Judiciary alleges FTC deleted documents they had requested about the noncompete rulemaking
- CFPB resolves case with installment lender OneMain; alleges company did not allow people to get refunds after they canceled free trials; to pay $20 million
- FTC gets court order banning PPE seller from making sales of PPE; took orders during the pandemic though he had no goods; get judgment for $989,000
- FTC/DOJ settle with Xbox over violations of children’s privacy law; to pay $20 million
- CFPB enforcement actions plummet under Chopra; morale declines in agency
- CFPB issues document looking at Chatbot used in customer service
- FTC returned $392 million to victims last year through its cases
- Maryland: Former social media influencer pleads guilty to PPP fraud; got $1.2 million
- Colorado: Doctor gets 2.5 years prison for PPP fraud; got $250,000
- Des Moines: Man gets 18 months prison for PPP and tax fraud
- Detroit: Three charged with PPP fraud; got $3 million
- Baltimore: Man pleads guilty to PPP fraud; got $550,000; bought Mercedes, luxury goods
- Rochester: Man pleads guilty to tax fraud and EIDL fraud
- Nigerian court orders man extradited to the US over unemployment benefit fraud; got $340,000
- Texas: Dentist pleads guilty to PPP fraud; got $1.4 million
- New York: Six charged with PPP fraud; got $4.6 million
- Hits legal services company that works for the Pentagon and SEC
- Attack on the email system of the University of Waterloo in Canada
- Hits Government of Martinique
- Attack on Spanish bank Globalcaja
- Hits Japanese pharmaceutical giant Eisai
- Attack on Akron, Ohio public library system
- Fake cancer patient raises $117,000 from stolen NFT; endorsed by Andrew Wang
- South Korea arrests two; shut down crypto Ponzi scheme; victims out $350 million
- SEC sues Coinbase as unregistered security
- New York: Former co-owner of the Minnesota Vikings gets 75 months prison for processing hundreds of millions for crypto exchanges as a shadow bank
- Law enforcement group in India has traced skimming gang and has arrested 81 in the last ten months
- San Diego: five arrested for skimming EBT cards used for welfare benefits