May 4, 2017
Brand new google docs phishing fraud just appeared in the last few days (I got one yesterday myself)
DC Circuit Court Upholds FTC position that “soundboard” calls are robocalls
The FTC took the position that this new technology is covered by the law regulating robocalls. The difference is that in a traditional robocall those answering the phone hear a recorded message and are then invited to “press 1” to reach a real persons. With this technology the listener may think they are talking to a real person, but it is actually a computerized message set to play different responses depending on what the consumer says. See this article on how these work. Here is how the Court explained these tactics:
“Soundboard” technology—the subject of this case—is different. It involves two-way communication between sales agent and consumer, in which the sales agent plays pre-recorded audio clips in response to the consumer’s statements. Soundboard technology also allows the sales agent to break into the call and speak directly to the consumer, if needed. Say, for instance, a consumer asks for additional information about how to buy a product. A sales agent using soundboard technology first attempts to answer that inquiry by playing a pre-recorded audio file. If the pre-recorded response is unsatisfactory, then the sales agent can intervene and give the consumer a direct response. So, like a traditional robocall, soundboard technology uses automated, pre-recorded messages to convey information. But, it differs markedly from the traditional robocall in that a human being is on the other end of the line, who is sometimes revealed to the consumer and sometimes not.”
Jamaica Sweepstakes Fraud
- DOJ release: 8 extradited from Jamaica to North Dakota
- US Embassy in Jamaica says extradition requests are being prepared for 2-3 lawyers who have been working with frauds
- US Embassy in Jamaica says there are many more extraditions coming
- “Right now we have dozens of extradition cases that are already at the extradition level, and another 300 to 500 cases that are at the pre-extradition stage, so between the Jamaican investigation and the investigation in the United States we are looking at as much as 3,000 to 5,000 active investigations.” Says Embassy Spokesman
- Jamaican TV on the extraditions
New and Useful Manual for prosecutors dealing with elder abuse
Apple issues warning and provides advice on frauds that collect money through ITunes gift cards
If you act fast in contacting Apple you may be able to stop funds
They even provide a working phone number for calls to Apple
Australia seeing large increase in scam text messages
National Consumers League warns of rental frauds
UK Police with new warning. Crooks are learning about victims and then calling cell phone companies impersonating people. They then get a new phone and sim card and start getting all the phones and texts intended for the victim. They can use this information to get into the victim’s online bank account and steal their money.
Woman in Brampton, Ontario, arrested and charged for operating a mystery shopping fraud
Man extradited from Italy to face charges in Quebec: ran a grandparent fraud
- Last of 23 in fraud ring to be charged
- Victims were mainly in Quebec
- 500 seniors lost $890,000
New Report on Cybercrime in West Africa by Interpol and Trend Micro
- This report focuses on the next generation cybercriminals.
- The “Yahoo Boys” typically operate romance frauds, stranded traveler emails, and frauds that require money in advance of providing some sort of services.
- But more senior members have moved into Business Email Compromise fraud
- Complaints about West Africa cybercrime are increasing
- Criminals often use people who have migrated to the target company as “mules” to collect the stolen money
Europol case study on Operation Avalanche: Cybercrime as an organized business enterprise (See January 19 blog at bakerfraudreport.com for more information on Operation Avalanche)
IRS and Tax Scams
- Indian national pleads guilty in Austin, Texas, for aiding IRS fraud schemes in India; helped collect money from victims, kept some for himself and sent the rest along to fraudsters
- Eight Cubans living in Florida arrested for involvement in fraud impersonating IRS agents
- Woman in Louisiana sentenced: had used her job at the sherriff’s department to steal identities and file bogus tax returns
FTC and CFPB Updates
FTC settles with Nutrimost Weight Loss system
- Says company used fake before and after pictures
- Company also had illegal “gag clause” prohibiting bad reviews
- Order also binds franchisees
CFPB sues four Indian tribes for payday lending practices
FTC stops company selling herbal products to address opiate withdrawal
ATM Skimming
Man arrested at Pike Place Market in Seattle for ATM skimming
Romance Scam Fraud
Nigerian Police arrest and charge two men for romance fraud
FBI-produced news story on Romance Scams
Ransomware and Data Security
- Georgia Health IT company hit with ransomware
- New Study says small businesses that pay ransomware only get their files restored half the time
- Providence, Rhode Island law firm shut down by ransomware: Sue their insurer
- Verizon issues 2017 Data Breach Investigations Report
- The BBB has issued an excellent booklet on Cybersecurity for Small Businesses
People
Long time Postal Inspection Service Team Leader Nick Alicea in Harrisburg, Pennsylvania retires.
Played major role in Toronto Partnership, headed criminal investigations of both MoneyGram and Western Union
Just for fun….
Flashmob in Belgian Train Station; worth a watch: https://www.youtube.com/watch?v=7EYAUazLI9k
Add to the News! Have you seen a recent prosecution or other fraud information that others should know about? Send it into the Baker Fraud Report at steve@bakerfraudreport.com
