Baker Fraud Report

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Please send us press releases!  The Fraud Report wants to keep everyone up to date on fraud issues. The media attention now is all about virus issues, so they may not report arrests or prosecutions. Send them along and we’ll include them here.

FTC releases data on international scams reported to econsumer.gov, fraud reporting site that shares complaints with 35 countries

• Can take complaints in many languages
• 2019 received 40,432 complaints
• Losses of $151.3 million
• Top complaints about products sold online, goods paid for but never received goods

Germany has to end small business loans because criminal gangs set up dozens of fake web sites to apply and get government money

Coronavirus

• Italy gives contract for masks and protective gear to two men previously accused of fraud for not delivering goods
• UK warns scammers are sending emails asking for donations in bitcoin to National Health Service
• Reno, Nevada:  Man arrested for stealing masks from veteran’s hospital
• Facebook sues cloaking software maker that lets those running virus scams evade the social media company’s filters
• BBC piece about online mask scams from Cameroon
• Chinese companies selling defective tests and protective equipment
• Georgia: man arrested for trying to sell Veterans’s Affairs hospitals  $750 million worth of masks and other gear he did not have
• Malaysia reports several organizations lost money to undelivered face masks advertised on Facebook
• 291 cases of counterfeit masks seized at border to Kenya
• Europol busts elaborate scam selling nonexistent face masks to governments; €15 million involved; fake web sites; some money recovered, rest went to Nigeria / Irish radio on this case
• Fraudsupport.org has tips if videoconferences are hacked
• State governments and hospitals being scammed for counterfeit or nonexistent masks and protective equipment
• FTC reports on the virus scams it is seeing; good news is that robocalls are down
• London: Pharmacist arrested for false claims while selling “virus test kits”

Tip of the week:  Counterfeit goods. With so many people shopping online right now there is an increasing danger of buying goods that are counterfeit, including of course things like masks and cleansers.  Be extra careful with third party sellers on Amazon. Check out 1 star reviews, where people often report that goods are not what they claim to be. And call to get a full refund on your credit card if you’re ripped off.  Here is the BBB study on counterfeits.

Full report here

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Volunteer group identifies scam sites for masks and protective gear sold online but never delivered

• Perhaps the largest category of virus complaints we’re seeing now are scammers taking money for masks and protective gear and not delivering them
• Scam.directory has located over 300 such sites operating around the world
• This is by a volunteer group that also operates petscams.com
• Most scams are operated by the same gangs in Cameroon that run puppy frauds; here is BBB study on pets
• Many of the sites are registered in the U.S.
• They don’t just rip off individuals.Here is an article on a Greek pharmacy losing their money
• [email protected]

Scam email by a BEC scammer
A contact just got an email he thought came from a friend. It reads:
Thank you XXX. I should have called you to explain further but still can’t access my mobile phone. I  need you to kindly purchase 5pcs x $100 of either eBay or Target or Amazon gift cards which totals $500 as donation for the purchase of preventive items from Corona Disease (COVID 19) due to the vulnerability of Veterans at Hospice & Palliative Care .I will be liable for reimbursement.
 You can purchase them online as (e-gift card) or at any Kohl’s, CVS, Kwik, Macy’s, Walmart, or Walgreen’s Store. Due to the time frame of the pledge, I will be glad if you get them early enough today.
E-mail me immediately you buy them for instructions how to get them across. Let me know if a check will be fine for reimbursement. Thank you.
 Coronavirus 

• Canadian foreign minister warns of foreign (Russian) disinformation to panic the public
• BBB breakdown of virus complaints to date; 39% mask scams
• Czech police seize hundreds of thousands of masks and respirators meant for Italy and donated by China; apparently stolen
• Federal state virus task forces popping up
• Federal and State officials launch virus task force in West Virginia
• DOJ, HHS distributing vast amount of masks and medical supplies seized from price gougers
• Europol issues updated risk assessment for cybercrime during virus
• FTC warns grandparent scams are now claiming the kids are sick with virus
• FBI IC3 had 1200 virus complaints at end of March; warn of BEC and other scams
• FBI arrests Georgia man for submitting false claims of virus tests to get money from Medicare
• Europol has man arrested in Singapore; impersonated a real company and collected €6.6. million for sales of masks and hand sanitizer he never delivered
• Australia warns scammers are calling to get information about retired people’s superannuation (retirement funds)
• How supplement makers are turning to immunity boosting products – and everyone knows what they are implying these can help with
• US authorities break up scam where Australian claimed to have 39 million N95 masks in a Georgia warehouse and available to sell to Kaiser Permanente for $7 million; no charges to date
• UK man faces criminal charges in Los Angeles for selling unapproved virus treatment kits
• FBI says BEC scams increase and take advantage of virus
• Here’s another powerpoint on virus scams; focus on BEC

Tip of the week: Scams continue and will go after big money from the government There is no reason at all to think that scams are down right now; in fact I suspect they are up with so many people at home.  The courts have limited their schedules, so there may be fewer prosecutions, and the news media is currently covering very little that is not virus related.  But if anything scammers are surely redoubling their efforts. 
After previous disasters I’ve seen price gouging, bogus charities, and other scams during and immediately after they happen, but the really big losses come later with crooked/incompetent contractors or people inappropriately getting insurance or government benefits.  For example, we saw Nigerian scammers defrauding FEMA in the wake of Hurricane Harvey in Houston.  So get ready to deal with scammers looking for money from stimulus checks, business loans, and other assistance.  There lie the big bucks.

Full report here

March 26, 2020
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Thanks to everyone who keep things going while many us work from home.  Grocery stores, gas stations, power companies, truck drivers, police and everyone else, many of who don’t make that much money

Coronavirus 

• DOJ sues and shuts down website claiming to be selling a virus vaccine; just take people’s money
• FTC issues new tips on virus scams
• FTC provides tips for online safety when working from home
• Australia warns of virus scams
• FBI’s IC3 alert on virus scams
• UK warns of scams they are seeing
• Missouri AG sues evangelist over claims for virus treatment product
• Scammers sending email threatening to expose your family to virus unless you pay them $4000 with bitcoin
• EU documents say Russians have launched campaign to try and create panic in Europe over virus
• Canada seeing fake letter to apartment building tenants asking for fees for cleaning
• UK arrests man who was mailing fake virus testing kits
• Singapore shuts down over 1000 web sites for products claiming they can help with the virus
• Interpol makes major effort to tackle counterfeit masks and drugs for virus

Read the full issue here

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Coronavirus 

With corona virus, it seems to me that the scams fall into several categories; 1) selling products that don’t exist or don’t work, such as a coronavirus vaccine; 2) overcharging for goods in high demand, such as face masks or hand sanitizer; 3) phishing scams sending email supposedly from WHO or CDC; 4) just rolling in the virus scare to help further an existing scam.  For example, puppy scams are now using the virus to explain why the dog hasn’t arrived yet. And of course 5) bogus charities taking money supposedly to help.

• Business email compromise gang in Nigeria now sending emails supposedly from vendors saying bank accounts changed because of virus
• Spammers and hackers are taking advantage of those working remotely
• US seizes fake virus test kits at Los Angles airport
• Political opinion web site ordered by New York AG to stop advertising bogus corona products
• Psychologists try to figure out why people buy so much toilet paper
• BBB tips on virus scams
• Malicious web site copies John Hopkins tracking site; may install malware
• Phone scams calling seniors, telling them their virus vaccine is ready, taking payment
• FTC warns of scam potential if US government sends people checks
• Malicious emails pretending to be health advisories contain viruses: Pakistan behind these?

FTC provides tips for online safety when working from home

Full Report here

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$153 million in refund checks going to 109,000 people from FTC/Justice Department settlement with Western Union

• First distribution — $586 million judgment
• Full payments to victims in US and abroad
• More to follow
• Details on the process here
• NO ONE should pay money to get a refund here

India takes down tech support room running tech support scams against UK citizens after BBC story

BBC interview with tech support scammers in India

Swedish journalist works with insider to expose telemarketing sales room in Kiev, Ukraine

• Target elderly with bitcoin investments
• Sales in English, Russian, Italian and Spanish
• Get remote access to victim computers and bank accounts
• Thousands of victims in 50 countries

List of the 400 elder fraud cases recently announced by DOJ

Coronavirus 

• Facebook and eBay ban ads selling face masks 
• Amazon deletes 1 million ads
• UK reports £800,000 lost in coronavirus scams so far, many emails claim to be related to WHO or CDC
• FTC and FDA send warning letters to seven companies over claims that products can prevent or treat coronavirus
• UK seeing emails supposedly from tax authorities offering refunds because of coronavirus
• Puppy scams now using virus as excuse for why the pet is not delivered
• Scammers now “selling” mask online; just take the money and have no masks

Los Angeles:  41 months in prison for Canadian man who ran grandparent scam on older people; extradited to the US; three others in group already sentenced

Read the full Report

March 5, 2020

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BBC: UK man hacks into surveillance cameras at call center in India; footage of scammers hitting UK tech support victims

Washington State Attorney General sues Timeshare Exit Team

• Alleges that of 38,000 customers, it has 17,000 still not out
• That “100% money back guarantee” is deceptive
• Does not have the expertise it claims
• Multiple law violations alleged
• Court complaint details how it really operated

Half of Canadian families have been victims of scams

March is Fraud Prevention Month in Canada

DOJ announces 400 elder fraud cases in the last year; launches elder fraud hotline to give individualized help; complaints to then go to IC3 or FTC

BBB releases 2020 Risk Report; big jump in cryptocurrency scams

National Consumers League list top 10 scams of 2019; internet merchandise sales #1

Read the full report

February 27, 2020
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Next week is National Consumer Protection Week in the US
 
Nigerian TV: Extensive story on how Yahoo Boys operate; explains how they train one another; how they operate dating scams and fake checks scams; how they launder money; interviews with crooks
 
AARP releases new survey on imposter scams

• Gov’t imposters, grandparent scams, romance scams, census
• 47% have encountered one
• 18% who lost money have had health or emotional distress problems; more of these by people under 50
• 70% of the public is not familiar with census scams

 BBC: Interview with the volunteer who has helped thousands of romance fraud victims in Finland
 
Agari releases in depth study of BEC group Exaggerated Lion

• Spread over Kenya, Nigeria and Ghana
• Has BEC victims send physical checks instead of wire transfers
• Uses romance fraud victims as mules to launder money

Canada’s Competition Bureau settles with ticket reseller StubHub over mandatory additional fees not disclosed until end of the process: collects $1.3 million fine


FBI says crooks took in $144 million from ransomware scams over the last seven years; most in bitcoin; this does not include recovery costs

Question of the Week:  Why is debt collection fraud way down? FTC complaints fell from 626,000 in 2017 to 135,000 in 2019.  The FTC has brought several cases against frauds collecting from people that really did not owe the debt – or at least not to the scammers.  Has that had a huge effect here? Or has something else happened that the Fraud Report has missed?  Curious minds want to know.

Full Report here

February 20, 2020
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Canadian Antifraud Centre releases complaint data for 2019

• 46,500 reports to them by Canadians
• Losses nearly $100 million
• Lists top ten frauds and top ten by loss

Agari finds BEC fraud way down at the end of 2019; more losses to gift cards than wire transfers; this in wake of international enforcement efforts

Full report here

February 13, 2020
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The FTC saw a big spike in romance fraud complaints in 2019

• 2017  16,940
• 2018  22,284
• 2019  38,851

Romance scam losses of $201 million reported to the FTC in 2019; up 40% from 2018
 
FBI releases 2019 report for Internet Crime Complaint Center

• Losses of $3.5 billion reported
• Largest losses by those over 60 years old
• Many more complaints received from the UK than anywhere else outside the US
• Romance scam losses of $475 million

 
A few trends from the FTC’s 2019 complaint data

• Debt collection complaints fell: From 626K in 2017 to 135K in 2019
• Identity theft complaints way up: 371K in 2017; 650K in 2019
• Imposter scams are way up, but you knew that
• Sweepstakes complaints down; 143K in 2017; 125K 2019 (is enforcement working here?)
• Tech support complaints down: 154K in 2017; 108K 2019
• Travel/vacations up; 17K 2019: 25K 2019

US indicts four members of Chinese military over hacking Equifax credit report information

New scam exploding in the UK: Those selling on eBay are getting emails supposedly from eBay saying that a payment has been made; sellers then ship; 3000 complaints in the last three months; over £1 million lost so far

Texas:  Nigerian gets more than eleven years prison for laundering BEC money; four others also sentenced

Southern District of Illinois:  Two executives at Florida tech support scam get eleven years and nine years prison

Read the full report here