Baker Fraud Report

Top Stories

Massive data breach:  hackers get all data on almost all AT&T customers

Chainalysis releases in depth study of money laundering through crypto for fraud and other crimes

FTC, 26 other countries, release report on “dark patterns” of online subscription; find 81% do not have ability for consumers to turn off auto renewals

Interpol announces worldwide effort against Nigerian Black Axe organized crime group; 300 arrested; 720 bank accounts blocked

New trend?:  UK: Scammers try to blackmail Liverpool restaurant by threatening to post thousands of negative reviews unless they paid

Full Report here

Text message scams are exploding; 60 billion in June alone; that’s 60 per person in the US

US Treasury releases money laundering risk assessment

• Fraud is now top reason for laundering
• Crypto romance fraud most common
• Now tops BEC fraud

US arrests Chinese man who was administrator of world’s largest botnet; 19 million computers used to send spam, support PPP fraud etc

Full report here

Did you know that there is a 1906 federal law that exempts interstate movers from state consumer protection laws?  This should be fixed.  As I detailed in my study for the BBB there are criminal gangs that advertise cheaper prices for moving services online, but after they load the goods on a truck they demand a lot more money.  And if they arrive when they say that will, they often demand still more, and drive off if people refuse to pay.  This is a major problem.  The 1906 Carmack Amendment may have made sense at one time, but has clearly long outlived its usefulness.  For more on the history of this see here.

Interpol announces global fraud crackdown “First Light”

• Seize $257 million
• 61 countries involved
• 3950 arrested
• Scams included tech support, BEC, law enforcement impersonation

Spain and Portugal take joint action against phone fraud gang which called, pretending to be bank, and then appeared at homes demanding credit and ATM cards; sometimes threatened violence and robbed homes as well;  54 arrested

Bob Sullivan: Crooks are now appearing IN PERSON to pick up money from scam victims

India: Police raid call center claiming to be US Marshalls and telling people that their Social Security Number had been compromised; 77 arrested FTC brings new case against $200 million free trial offer fraud

Canada: Toronto man shoots and kills two who he believed were scammers that took him for $1 million

NYT: IRS suspends payments from Covid employment retention tax credits; 90% of claims may be fraudulent

Clerk at Chevron station saves 84 year old woman who was feeding money into a bitcoin ATM; victim thought she was talking to bank security person; had been close to sending $40,000

Brooklyn: Four Nigerians charged for BEC and romance fraud money laundering; handled $50 million; one to be extradited from France

Full report here

Chicago: US busts darkweb marketplace selling illegal drugs, credit card information, and counterfeits; two arrested; handled $430 million in sales

Full report here

Homeland Security explains how frauds from India, not limited to tech support, get victims to buy gift cards, and then Chinese gangs launder them into buying real goods

Troubling new opinion from the 9^th circuit court of appeals on fraud.  In US v. Milheiser the Court recently reversed the criminal conviction of several toner scammers. For years these companies called offices, told the receptionists that they were their regular supplier of toner for their copier,  that the price was going up, but that they would send “more” at the old, cheaper, price. The victim companies had never in fact dealt with these scammers before.  A jury convicted them of mail fraud.

          The Court reversed the convictions, concluding that victims in fact did receive toner at the price disclosed in the call, thus concluding that the defendant’s lies were not “material” to victims.  Needless to say, this decision is bound to cause trouble in future consumer protection cases, and I believe it is wrongly decided. But it reminds us that no matter what the legal standard is, it is important to have a solid theory of consumer injury – to explain why the lies matter to consumers.

Full report here

EU heads worldwide effort against botnets; worlds largest effort; four arrested, searches done in Armenia, Netherlands, Portugal and Ukraine; over 100 servers closed down; used for ransomware and other fraud

North Dakota woman poisoned her boyfriend thinking he was to inherit $30 million; but the inheritance was simply a scam

WSJ: How a crypto romance scam cleaned out a senior citizen

Worth Remembering:  Eighty years ago the allies returned to Europe in the landings at Normandy, with the largest Armada the world had ever seen.  Thousands of brave men lost their lives in the desperate struggle on the beaches.  I was fortunate to have known one man who was there on Omaha and lived to tell about it.  I’m not at all sure that I would have been brave enough to have done this.  So take a moment to think about them today.

Full report here

Top Stories

New FTC report looks at which companies scammers are impersonating

• Most common are Geek Squad, Amazon, and Paypal
• But most money is lost to Microsoft for tech support fraud
• And to Publisher’s Clearinghouse for lottery frauds
• Biggest losses where victims send money by crypto or bank to bank wire transfer
• But gift cards most common way to pay in romance rauds, tech support fraud, and government impersonation frauds

Nigerian man claims responsibility for attempt to foreclose on Graceland; send phone documents claiming estate owed money

Social Security wants that scammers are impersonating agents of its Office of Inspector General and picking up cash from victims in person; says agents will NEVER ask for money

Full report here

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Police in India raid two call centers, arrest 155, kingpins flee; were running three scams, all demanding gift cards

• Calls offering payday loans but had to pay upfront
• Tech support calls resulting from Microsoft popups
• Calls claiming Amazon shipments had illegal contents and victim needed to pay to cancel or they would report to law enforcement

Los Angeles: Two Chinese men arrested for laundering $73 million from crypto romance frauds

North Dakota: Jury convicts Nigerian man in fraud on law firm; had sent counterfeit check to firm for legal work and then had them wire money back after work cancelled

Tech companies form coalition to fight crypto romance and other frauds; includes Meta, Coinbase, Match

Need an expert witness for consumer protection or fraud issues?  Let me know.

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 fraud and crypto scams

Full report here

Top Stories

Can I get rid of spam email?  Under federal law those who send email have to have a working unsubscribe feature.   The FTC enforces this. But I got some emails recently, and when I hit unsubscribe and found that I needed to reenter my email address.  As you’ve probably guess I’ve since started getting a flood of spam.  I’ve not seen any enforcement from the FTC for years against spam emails. This industry clearly has some organization, and some of my spam is on behalf of at least of some legitimate organizations like the AARP.

FTC warns that if someone claims your social security number has been used IT IS A FRAUD

Spain and Italy arrest 106; bust Italian mafia group that was doing BEC and other frauds; laundered money for scams; operated from the Canary Islands

Full report here