FTC announces major collective effort against telemarketing scams
- Over 100 state and federal enforcement actions; including criminal cases; includes five new FTC cases
- One against Fluent filed by DOJ involves tricking people into consenting to receive calls, including robocalls; settles for $2.5 million
- Another FTC complaint alleges California company tricked job seekers into “agreeing” to get robocalls
- Third FTC settlement with Florida company that made illegal robocalls; 1.4 billion calls made
- Fourth with Arizona AG ; settlement over robocalls trying to sell solar panels
- Fifth FTC complaint against Florida company that helped overseas robocallers pretending to be Amazon
- Here is a list of all cases in this effort
Europol issues threat assessment finding that Cybercrime is big business; report itself here
Podcast by Int’l Ass’n of Financial Investigators on pet scams featuring Steve Baker
Does consumer consumer education about fraud work, and do we know if it is effective? By Anthony Pratkanis
Along with law enforcement and policy interventions, consumer education is one of the primary ways to prevent fraud crimes. Fraud fighters create a steady stream of warnings, fliers, handouts, videos, mailers, web pages, and seminars. If we are honest, we really don’t know if these interventions are working. More research in this area would be really helpful.
Considerable research finds that information campaigns are generally ineffective. As Elliot Aronson and I describe in Age of Propaganda, information campaigns fail because it is difficult to break through a message-dense environment and recipients often find information uninteresting and telling them something they may not want to hear. Education about fraud faces additional obstacles: the target may have an illusion of invulnerability, be in a rationalize trap, is experiencing warning fatigue, and may perceive the prevention measures as too difficult to implement. In addition, the con criminal is morphing and changing the scam, and, most importantly, con grifters’ mimicry is purposefully difficult to detect.
For the researcher, the challenge is developing research paradigms that provide efficient, timely evaluations of fraud prevention messages to accumulate knowledge of what works. This requires being able to “trap the dependent variable” of victimization, which can be difficult to measure in the wild especially using self-reports. I developed the sting methodology (discussed in response to Myth #8) to address this issue. Other potentially fruitful approaches include the development of proxy, intervening, and mediational measures.
Another valuable source for consumer education is the science of social influence (which I used to develop an investment seminar that reduced victimization by 50%) and fields such as social marketing, public health, drug and tobacco prevention, risk warnings, and public communication. The knowledge base of these fields can provide guidance on creating and testing effective social influence campaigns to prevent fraud.
Editors Note: My best judgment is that generalized advice such as “if it sounds too good to be true, it probably is” is worthless, and providing education with no context on how common a scam is little better. A piece that provides a few details on how a scam works, somewhat like the detail to explain a magic trick, is far more effective. But we could all benefit from more research on what works – and what does not.
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
Want to see Taylor Swift? BBB warns that it got 21,000 complaints about ticket fraud last year, a big increase. Be VERY careful about where you buy tickets
Fraud News Around the world
- Canada: Peel police arrest man for grandparent fraud
- Researches take a hard look at scams claiming to have video of you watching porn and demanding payment; conclude this is one gang of less than 100 scammers
- Florida: Man pleads guilty to stealing mail from mailboxes, taking checks and depositing them
- Singapore: 508 people under investigation for frauds; includes tech support, investments, money laundering, lending
- Colorado: Former Social Security employee gets six months prison for stealing identities to get benefits
- Can AI block spam telephone calls?
- Department of Transportation says it has undertaken 60 enforcement actions against crooked movers
- Seychelles bans holders of Nigerian passports from country due to drug trafficking and internet fraud
- Nigeria: EFCC arrests 55 for internet fraud
- Oklahoma: Nigerian man extradited from South Africa; used spooked email to order $400,000 of laptops to be delivered to another US company; then sent fake email to that company claiming an error and asking them to ship them to South Africa
- New Arizona law aimed at crooked movers; forbids raising price after goods loaded on the truck
- Virginia: Administrator of dark web site selling stolen data pleads guilty
- Canada: York police arrest Quebec man who was picking up money for grandparent fraud
- Louisville: US Customs seizes $1.7 million in counterfeit luxury items coming from Hong Kong
- FBI warns that tech support scammers are now asking victims to send cash through package delivery services or concealed in magazines
- Japanese police arrest woman for calling 2700 times because she was “lonely”
- Streaker arrested after dancing on poker table in Las Vegas
- FTC Chair testifies before House Oversight committee
- CFPB and State AG sue Prehired; provided loans for training for software sales and told they would be free unless clients got hired, but charged them anyway
- House Judiciary Committee questions FTC chair over ethics advice and that her law license is not active
- Court filing says FTC action against Twitter was biased; dramatically increased pressure after Musk bought it
- FTC resolves case against alcoholism supplement over deceptive claims and fake testimonials
- CFPB sues lease-to- own company Snap for deceptive finance terms
- Florida: Guard in federal prison charged with PPP fraud; got $100,000
- South Carolina: Man gets 1 year prison for EIDL fraud; got $84,000
- South Carolina: Man pleads guilty to PPP fraud; got $204,000
- Colorado: Man gets 51 months prison for PPP fraud; got over $1 million
- Florida: Couple indicted for PPP and EIDL fraud; got $3.4 million
- Long Island, NY: Man pleads guilty to PPP fraud; got $9.5 million
- Rhode Island: Man pleads guilty to ID theft to get Social security benefits and PPP loan
- Louisiana: Two charged with PPP fraud
- Louisiana: 24 people from street gang indicted for virus benefit theft
- Attack on City of Hayward, California
- Biggest attack yet on UK National Health Service
- IT employee gets three years prison for trying to steal ransomware payment from his employer
- Wisconsin County government says its systems suffered catastrophic failure after attack
- Naked patient photos released after attack on California plastic surgery center
- Chinese gov’t hackers have obtained access to US government email accounts
- Charles Schwab was hit by MOVEit attack
- Breach reveals information from 2.3 users of dating apps
- Interpol arrests Nigerian man who hacked into the blockchain of company he was working for and stole $87 million
- Why police may not be able to recover stolen cryptocurrency
- Pennsylvania: Jamaican man pleads guilty to lottery fraud
- Jamaica say Only the Family gang is involved in lottery scams and contract killings
- Canada: RCMP arrests two for lottery fraud; one as he was trying to fly to Jamaica
- UK: romance scams increase 41% this year; losses of £30 million
- Nigeria: Man gets a year in prison for romance fraud
- Thailand: Police arrest man for romance scam who pretended to be a doctor with NATO