Entries Tagged "crime"

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LLM-Based Social Engineering Scams

OpenAI disrupted a social engineering group from Cambodia that used ChatGPT. Its scope is impressive:

The network simultaneously conducted multiple types of scams, often blending elements from different schemes. For instance, operators used dating personas to build trust before introducing fraudulent investment opportunities involving cryptocurrencies and spot gold trading. Other users engaged in lengthy romantic conversations with targets using fictitious identities, posed as representatives of online gambling platforms offering fake bonuses and winnings, or impersonated law enforcement agencies to tell targets they needed to pay fines for committing serious criminal offenses.

Although the narratives varied, users across the network consistently displayed the same underlying pattern of deceptive behavior. For example, they created and operated fake dating profiles, fictitious investment experts, and fraudulent law enforcement personas. They also generated images of forged documents, including passports, legal notices, stock-purchase confirmations, and gambling platform interfaces.

Posted on August 27, 2026 at 5:56 AMView Comments

Criminal Deception in Silicon Valley

Interesting paper:

Abstract: With entrepreneurial fraud cases on the rise, we investigate how entrepreneurs carry out criminal deception, employing deceptive means to defraud audiences. Analyzing court data from Silicon Valley ventures and their founders prosecuted for fraud between 2000 and 2023, our findings reveal that entrepreneurs carry out criminal deception through a process of façading: Entrepreneurs construct, perform, and protect illusory appearances (façades) that externally project high-growth performance to audiences while masking ventures’ actual underperformance. We identify three forms of façading—­surface, reinforced, and deep façading­—that are contingent on the severity of the gap that entrepreneurs face between audiences’ performance expectations and ventures’ performance reality. Our theoretical framework captures how entrepreneurs facing minor, wide, and extreme expectation-reality gaps engage in evermore sophisticated efforts to detach the venture’s externally projected appearance from its actual operational reality. Practically, we propose several approaches to deter and detect criminal deception, including the extension of U.S. Securities and Exchange Commission surveillance and whistleblower program, investor due diligence reform, and dedicated entrepreneurship education interventions that clearly demarcate when entrepreneurs transgress into criminal deception. We make contributions to literatures on cultural entrepreneurship, organizational wrongdoing, and the social effects of entrepreneurship.

Posted on August 24, 2026 at 6:38 AMView Comments

First Sentencing in Scheme to Help North Koreans Infiltrate US Companies

An Arizona woman was sentenced to eight-and-a-half years in prison for her role helping North Korean workers infiltrate US companies by pretending to be US workers.

From an article:

According to court documents, Chapman hosted the North Korean IT workers’ computers in her own home between October 2020 and October 2023, creating a so-called “laptop farm” which was used to make it appear as though the devices were located in the United States.

The North Koreans were hired as remote software and application developers with multiple Fortune 500 companies, including an aerospace and defense company, a major television network, a Silicon Valley technology company, and a high-profile company.

As a result of this scheme, they collected over $17 million in illicit revenue paid for their work, which was shared with Chapman, who processed their paychecks through her financial accounts.

“Chapman operated a ‘laptop farm’ where she received and hosted computers from the U.S. companies her home, so that the companies would believe the workers were in the United States,” the Justice Department said on Thursday.

“Chapman also shipped 49 laptops and other devices supplied by U.S. companies to locations overseas, including multiple shipments to a city in China on the border with North Korea. More than 90 laptops were seized from Chapman’s home following the execution of a search warrant in October 2023.”

Posted on August 4, 2025 at 7:01 AMView Comments

Gift Card Fraud

It’s becoming an organized crime tactic:

Card draining is when criminals remove gift cards from a store display, open them in a separate location, and either record the card numbers and PINs or replace them with a new barcode. The crooks then repair the packaging, return to a store and place the cards back on a rack. When a customer unwittingly selects and loads money onto a tampered card, the criminal is able to access the card online and steal the balance.

[…]

In card draining, the runners assist with removing, tampering and restocking of gift cards, according to court documents and investigators.

A single runner driving from store to store can swipe or return thousands of tampered cards to racks in a short time. “What they do is they just fly into the city and they get a rental car and they just hit every big-box location that they can find along a corridor off an interstate,” said Parks.

Posted on December 31, 2024 at 7:02 AMView Comments

Criminal Gang Physically Assaulting People for Their Cryptocurrency

This is pretty horrific:

…a group of men behind a violent crime spree designed to compel victims to hand over access to their cryptocurrency savings. That announcement and the criminal complaint laying out charges against St. Felix focused largely on a single theft of cryptocurrency from an elderly North Carolina couple, whose home St. Felix and one of his accomplices broke into before physically assaulting the two victims—­both in their seventies—­and forcing them to transfer more than $150,000 in Bitcoin and Ether to the thieves’ crypto wallets.

I think cryptocurrencies are more susceptible to this kind of real-world attack because they are largely outside the conventional banking system. Yet another reason to stay away from them.

Posted on July 18, 2024 at 11:33 AMView Comments

The Justice Department Took Down the 911 S5 Botnet

The US Justice Department has dismantled an enormous botnet:

According to an indictment unsealed on May 24, from 2014 through July 2022, Wang and others are alleged to have created and disseminated malware to compromise and amass a network of millions of residential Windows computers worldwide. These devices were associated with more than 19 million unique IP addresses, including 613,841 IP addresses located in the United States. Wang then generated millions of dollars by offering cybercriminals access to these infected IP addresses for a fee.

[…]

This operation was a coordinated multiagency effort led by law enforcement in the United States, Singapore, Thailand, and Germany. Agents and officers searched residences, seized assets valued at approximately $30 million, and identified additional forfeitable property valued at approximately $30 million. The operation also seized 23 domains and over 70 servers constituting the backbone of Wang’s prior residential proxy service and the recent incarnation of the service. By seizing multiple domains tied to the historical 911 S5, as well as several new domains and services directly linked to an effort to reconstitute the service, the government has successfully terminated Wang’s efforts to further victimize individuals through his newly formed service Clourouter.io and closed the existing malicious backdoors.

The creator and operator of the botnet, YunHe Wang, was arrested in Singapore.

Three news articles.

Posted on June 7, 2024 at 7:04 AMView Comments

Smuggling Gold by Disguising it as Machine Parts

Someone got caught trying to smuggle 322 pounds of gold (that’s about a quarter of a cubic foot) out of Hong Kong. It was disguised as machine parts:

On March 27, customs officials x-rayed two air compressors and discovered that they contained gold that had been “concealed in the integral parts” of the compressors. Those gold parts had also been painted silver to match the other components in an attempt to throw customs off the trail.

Posted on April 12, 2024 at 7:01 AMView Comments

Tracking Down a Suspect through Cell Phone Records

Interesting forensics in connection with a serial killer arrest:

Investigators went through phone records collected from both midtown Manhattan and the Massapequa Park area of Long Island—two areas connected to a “burner phone” they had tied to the killings. (In court, prosecutors later said the burner phone was identified via an email account used to “solicit and arrange for sexual activity.” The victims had all been Craigslist escorts, according to officials.)

They then narrowed records collected by cell towers to thousands, then to hundreds, and finally down to a handful of people who could match a suspect in the killings.

From there, authorities focused on people who lived in the area of the cell tower and also matched a physical description given by a witness who had seen the suspected killer.

In that narrowed pool, they searched for a connection to a green pickup truck that a witness had seen the suspect driving, the sources said.

Investigators eventually landed on Heuermann, who they say matched a witness’ physical description, lived close to the Long Island cell site and worked near the New York City cell sites that captured the other calls.

They also learned he had often driven a green pickup truck, registered to his brother, officials said. But they needed more than just circumstantial evidence.

Investigators were able to obtain DNA from an immediate family member and send it to a specialized lab, sources said. According to the lab report, Heuermann’s family member was shown to be related to a person who left DNA on a burlap sack containing one of the buried victims.

There’s nothing groundbreaking here; it’s casting a wide net with cell phone geolocation data and then winnowing it down using other evidence and investigative techniques. And right now, those are expensive and time consuming, so only used in major crimes like murder (or, in this case, murders).

What’s interesting to think about is what happens when this kind of thing becomes cheap and easy: when it can all be done through easily accessible databases, or even when an AI can do the sorting and make the inferences automatically. Cheaper digital forensics means more digital forensics, and we’ll start seeing this kind of thing for even routine crimes. That’s going to change things.

Posted on July 17, 2023 at 7:13 AMView Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.