Entries Tagged "fraud"

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Complex Impersonation Story

This is a story of one piece of what is probably a complex employment scam. Basically, real programmers are having their resumes copied and co-opted by scammers, who apply for jobs (or, I suppose, get recruited from various job sites), then hire other people with Western looks and language skills are to impersonate those first people on Zoom job interviews. Presumably, sometimes the scammers get hired and…I suppose…collect paychecks for a while until they get found out and fired. But that requires a bunch of banking fraud as well, so I don’t know.

EDITED TO ADD (10/11): Brian Krebs writes about fake LinkedIn profiles, which is probably another facet of this fraud system. Someone needs to unravel all of the threads.

Posted on October 10, 2022 at 6:09 AMView Comments

Credit Card Fraud That Bypasses 2FA

Someone in the UK is stealing smartphones and credit cards from people who have stored them in gym lockers, and is using the two items in combination to commit fraud:

Phones, of course, can be made inaccessible with the use of passwords and face or fingerprint unlocking. And bank cards can be stopped.

But the thief has a method which circumnavigates those basic safety protocols.

Once they have the phone and the card, they register the card on the relevant bank’s app on their own phone or computer. Since it is the first time that card will have been used on the new device, a one-off security passcode is demanded.

That verification passcode is sent by the bank to the stolen phone. The code flashes up on the locked screen of the stolen phone, leaving the thief to tap it into their own device. Once accepted, they have control of the bank account. They can transfer money or buy goods, or change access to the account.

Posted on September 20, 2022 at 6:29 AMView Comments

$23 Million YouTube Royalties Scam

Scammers were able to convince YouTube that other people’s music was their own. They successfully stole $23 million before they were caught.

No one knows how common this scam is, and how much money total is being stolen in this way. Presumably this is not an uncommon fraud.

While the size of the heist and the breadth of the scheme may be very unique, it’s certainly a situation that many YouTube content creators have faced before. YouTube’s Content ID system, meant to help creators, has been weaponized by bad faith actors in order to make money off content that isn’t theirs. While some false claims are just mistakes caused by automated systems, the MediaMuv case is a perfect example of how fraudsters are also purposefully taking advantage of digital copyright rules.

YouTube attempts to be cautious with who it provides CMS and Content ID tool access because of how powerful these systems are. As a result, independent creators and artists cannot check for these false copyright claims nor do they have the power to directly act on them. They need to go through a digital rights management company that does have access. And it seems like thieves are doing the same, falsifying documents to gain access to these YouTube tools through these third parties that are “trusted” with these tools by YouTube.

Posted on August 15, 2022 at 9:14 AMView Comments

Fraud on Zelle

Zelle is rife with fraud:

Zelle’s immediacy has also made it a favorite of fraudsters. Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds. There’s no way for customers—and in many cases, the banks themselves—to retrieve the money.

[…]

It’s not clear who is legally liable for such losses. Banks say that returning money to defrauded customers is not their responsibility, since the federal law covering electronic transfers—known in the industry as Regulation E ­—requires them to cover only “unauthorized” transactions, and the fairly common scam that Mr. Faunce fell prey to tricks people into making the transfers themselves. Victims say because they were duped into sending the money, the transaction is unauthorized. Regulatory guidance has so far been murky.

When swindled customers, already upset to find themselves on the hook, search for other means of redress, many are enraged to find out that Zelle is owned and operated by banks.

[…]

The Zelle network is operated by Early Warning Services, a company created and owned by seven banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. Early Warning, based in Scottsdale, Ariz., manages the system’s technical infrastructure. But the 1,425 banks and credit unions that use Zelle can customize the app and add their own security settings.

Posted on March 9, 2022 at 6:00 AMView Comments

An Elaborate Employment Con in the Internet Age

The story is an old one, but the tech gives it a bunch of new twists:

Gemma Brett, a 27-year-old designer from west London, had only been working at Madbird for two weeks when she spotted something strange. Curious about what her commute would be like when the pandemic was over, she searched for the company’s office address. The result looked nothing like the videos on Madbird’s website of a sleek workspace buzzing with creative-types. Instead, Google Street View showed an upmarket block of flats in London’s Kensington.

[…]

Using online reverse image searches they dug deeper. They found that almost all the work Madbird claimed as its own had been stolen from elsewhere on the internet—and that some of the colleagues they’d been messaging online didn’t exist.

[…]

At least six of the most senior employees profiled by Madbird were fake. Their identities stitched together using photos stolen from random corners of the internet and made-up names. They included Madbird’s co-founder, Dave Stanfield—despite him having a LinkedIn profile and Ali referring to him constantly. Some of the duped staff had even received emails from him.

Read the whole sad story. What’s amazing is how shallow all the fakery was, and how quickly it all unraveled once people started digging. But until there’s suspicion enough to dig, we take all of these things at face value. And in COVID times, there’s no face-to-face anything.

Posted on February 24, 2022 at 6:13 AMView Comments

Are Fake COVID Testing Sites Harvesting Data?

Over the past few weeks, I’ve seen a bunch of writing about what seems to be fake COVID-19 testing sites. They take your name and info, and do a nose swab, but you never get test results. Speculation centered around data harvesting, but that didn’t make sense because it was far too labor intensive for that and—sorry to break it to you—your data isn’t worth all that much.

It seems to be multilevel marketing fraud instead:

The Center for COVID Control is a management company to Doctors Clinical Laboratory. It provides tests and testing supplies, software, personal protective equipment and marketing services—online and printed—to testing sites, said a person who was formerly associated with the Center for COVID Control. Some of the sites are owned independently but operate in partnership with the chain under its name and with its guidance.

[…]

Doctors Clinical Lab, the lab Center for COVID Control uses to process tests, makes money by billing patients’ insurance companies or seeking reimbursement from the federal government for testing. Insurance statements reviewed by Block Club show the lab has, in multiple instances, billed insurance companies $325 for a PCR test, $50 for a rapid test, $50 for collecting a person’s sample and $80 for a “supplemental fee.”

In turn, the testing sites are paid for providing samples to the lab to be processed, said a person formerly associated with the Center for COVID Control.

In a January video talking to testing site operators, Syed said the Center for COVID Control will no longer provide them with PCR tests, but it will continue supplying them with rapid tests at a cost of $5 per test. The companies will keep making money for the rapid tests they collect, he said.

“You guys will continue making the $28.50 you’re making for the rapid test,” Syed said in the video.

Read the article for the messy details. Or take a job and see for yourself.

EDITED TO ADD (2/13): More coverage about the fake testing sites.

Posted on January 19, 2022 at 6:10 AMView Comments

Wire Fraud Scam Upgraded with Bitcoin

The FBI has issued a bulletin describing a bitcoin variant of a wire fraud scam:

As the agency describes it, the scammer will contact their victim and somehow convince them that they need to send money, either with promises of love, further riches, or by impersonating an actual institution like a bank or utility company. After the mark is convinced, the scammer will have them get cash (sometimes out of investment or retirement accounts), and head to an ATM that sells cryptocurrencies and supports reading QR codes. Once the victim’s there, they’ll scan a QR code that the scammer sent them, which will tell the machine to send any crypto purchased to the scammer’s address. Just like that, the victim loses their money, and the scammer has successfully exploited them.

[…]

The “upgrade” (as it were) for scammers with the crypto ATM method is two-fold: it can be less friction than sending a wire transfer, and at the end the scammer has cryptocurrency instead of fiat. With wire transfers, you have to fill out a form, and you may give that form to an actual person (who could potentially vibe check you). Using the ATM method, there’s less time to reflect on the fact that you’re about to send money to a stranger. And, if you’re a criminal trying to get your hands on Bitcoin, you won’t have to teach your targets how to buy coins on the internet and transfer them to another wallet—they probably already know how to use an ATM and scan a QR code.

Posted on November 16, 2021 at 6:18 AMView Comments

Friday Squid Blogging: Squid Game Cryptocurrency Was a Scam

The Squid Game cryptocurrency was a complete scam:

The SQUID cryptocurrency peaked at a price of $2,861 before plummeting to $0 around 5:40 a.m. ET., according to the website CoinMarketCap. This kind of theft, commonly called a “rug pull” by crypto investors, happens when the creators of the crypto quickly cash out their coins for real money, draining the liquidity pool from the exchange.

I don’t know why anyone would trust an investment—any investment—that you could buy but not sell.

Wired story.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Read my blog posting guidelines here.

Posted on November 5, 2021 at 4:11 PMView Comments

Using Fake Student Accounts to Shill Brands

It turns out that it’s surprisingly easy to create a fake Harvard student and get a harvard.edu email account. Scammers are using that prestigious domain name to shill brands:

Basically, it appears that anyone with $300 to spare can ­—or could, depending on whether Harvard successfully shuts down the practice—advertise nearly anything they wanted on Harvard.edu, in posts that borrow the university’s domain and prestige while making no mention of the fact that it in reality they constitute paid advertising….

A Harvard spokesperson said that the university is working to crack down on the fake students and other scammers that have gained access to its site. They also said that the scammers were creating the fake accounts by signing up for online classes and then using the email address that process provided to infiltrate the university’s various blogging platforms.

Posted on November 3, 2021 at 6:10 AMView Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.