Cut and paste snippets about scams. [Archive] - Page 2 - RealScam.com

ribshaw

08-19-2013, 08:31 PM

Former sheriff’s office employee accused of running scam at work

By Dan Morse, Published: August 17 E-mail the writer

There is a law enforcement office in the basement of the Montgomery County Circuit Courthouse that people involved in divorces and other legal proceedings often visit. For a $40 processing fee, they can get sheriff’s deputies to officially deliver — or “serve” — documents to another party in a case.

Seems like an odd place to run an alleged theft scheme. But for more than four years, according to court documents filed late last week, that is exactly what receptionist Joyce Saunders is accused of doing behind her glassed-in front counter.

“It was outrageous that someone could even consider doing this, and doing this at a law enforcement agency,” said Montgomery Sheriff Darren M. Popkin.

Authorities say Saunders diverted at least $4,280 into her own pocket.

Her scam, they say, worked like this: When she spotted possible targets making requests, she would tell them that there was a better way. Then she would come out from behind the counter and into the lobby. Saunders quietly explained that the sheriff’s office was so backed up with requests that the court papers wouldn’t be delivered on time but that she ran a company called “Eagle Eye J Process Servers,” which for a higher price — $80 to $100 — would get the documents delivered before any hearings. Eagle Eye then went ahead and served the papers, authorities say.

Saunders did this at least 107 times, dating back to at least Jan. 27, 2009, according to court papers. Authorities say she misled people by getting them to pay a higher price, diverted funds that should have gone to the sheriff’s office and ran a private business that was in conflict with her office duties. She has been charged with one count of running a theft scheme, according to Montgomery court records.

The records do not indicate whether she has retained an attorney. Saunders, 58, of Frederick, was issued a summons in the case Friday, according to court records. She could not be reached to comment through a telephone number or e-mail address previously connected with her. Saunders, a civilian employee at the sheriff’s office, was suspended without pay in May as the investigation unfolded, officials said. Popkin said she retired July 1.

Officials at the sheriff’s office first got wind of possible trouble in the spring, according to court records. They brought in a financial crimes detective from the Montgomery County Police Department to help them investigate.

The detective searched Maryland tax records for a business entity named Eagle Eye J Process Servers. “No such business was located,” the detective wrote in court papers.

He also reviewed sheriff’s office receipt books filled out by Saunders and noted that she had voided some of the receipts. Those were compared with the actual case files, and the detective learned that Eagle Eye had served papers in at least 14 cases, according to court records.

The detective and sheriff’s officials looked at security video from the lobby and spotted Saunders coming out from behind the counter and talking with people at least five times. Investigators started talking to people to whom Saunders had made her pitch, according to court records.

The detective and sheriff’s officials decided to do a sting. On May 3, an undercover female officer approached the counter and told Saunders that she wanted a writ of summons served in a divorce case, asking whether the sheriff’s office could deliver it that day, according to court papers.

“Saunders stated ‘No’ and left her work area and entered the lobby,” court records state, referring to the undercover officer as the “UC.” “In a low voice, she told the UC that she was a ‘processor’ and could get the summons served that day. Saunders requested $100 for payment. The UC stated that only $80 was available. She agreed to the amount and the UC provided 4 $20 bills.”

Investigators, armed with warrants, immediately looked at the reception desk and Saunders’s purse and car. They then drove to her home in Frederick. They pieced together her personal receipt book and other records and calculated that she had carried out the scheme at least 107 times and diverted at least $4,280 from the sheriff’s office, authorities said.

“It was unbelievable and brazen and bold,” Popkin said, “to think she could lie to so many people and divert the money right into her pocket.”

Magda Jean-Louis contributed to this report.

Former sheriff’s office employee accused of running scam at work - The Washington Post (http://www.washingtonpost.com/local/former-sheriffs-office-employee-accused-of-running-scam-at-work/2013/08/17/6b3749b8-075b-11e3-a07f-49ddc7417125_story.html)

ribshaw

08-19-2013, 08:38 PM

Phone scammer posing as officer

By RIC BOHY

rbohy@c-dh.net

There is no one named Sgt. Green or Lt. Green at the Maury County Sheriff’s Department.

But a man who identified himself by those names called at least two Columbia women Saturday offering to drop warrants for failing to appear for jury duty if they paid him a fine of $275.86, according to incident reports at the department.

Payment by credit card would clear things up, he told them, but he doesn’t accept American Express or Discover cards.

Sheriff’s Det. Jerry Williams wants the public to know about these calls.

“Number one, it’s a scam,” Williams said Monday. “Number two is, if there’s people out there that got these phones calls or paid this $275.86, we want to know about it.”

Whoever made these calls gave them the air of legitimacy by offering his “badge number” — 2586 — and in one case a “confirmation number” — 05689106 — that he said could be presented to the court for a reimbursement.

In one case, Williams said, the caller used a phone number for the Maury County Courthouse, but a review of weekend phone records showed no activity from that number.

“Whoever is doing this may be calling from out of state, even out of the country,” Williams explained. “We want to be contacted by anyone who paid the money so we can check their credit card records and see where this money is going.”

Neither of the two women who received the scam phone call during the weekend paid any money, but they reported the calls to have a complaint on file.

Anyone else who has been contacted with such a scheme, especially if they paid the phony “fine,” is asked to call Williams at (931) 375-8693.

Phone scammer posing as officer | Columbia Daily Herald (http://columbiadailyherald.com/sections/news/local-news/phone-scammer-posing-officer.html)

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ribshaw

08-19-2013, 08:42 PM

Passports scam a reminder for tourists to be vigilant
By Joanne Crothers

A tourism leader on Queensland's Gold Coast says a recent scam that targeted backpackers should not deter visitors.

A man is facing several charges, after police cracked a syndicate which allegedly tricked backpackers into handing over their passports.

It is alleged the information was used to launder money and sell counterfeit jewellery.

Gold Coast City Tourism CEO Martin Winter says it is not too worrying for the industry.

"Obviously there's a couple of these people that are always floating around in places like the Gold Coast or any tourist destination," he said.

"One only has to go to 'x' and we've all heard of the scams going on there.

"It's fair to say we've all got to be on our toes."

He says people must remain very aware there are people out there with all sorts of schemes.

"Places like the Gold Coast are always going to be lucrative for the unsavoury types of the world because they see people as being on holiday and having their guard down," he said.

Passports scam a reminder for tourists to be vigilant
By Joanne Crothers

Posted 3 hours 46 minutes ago
Related Story: Police crack Gold Coast crime syndicate
Map: Southport 4215

A tourism leader on Queensland's Gold Coast says a recent scam that targeted backpackers should not deter visitors.

A man is facing several charges, after police cracked a syndicate which allegedly tricked backpackers into handing over their passports.

It is alleged the information was used to launder money and sell counterfeit jewellery.

Gold Coast City Tourism CEO Martin Winter says it is not too worrying for the industry.

"Obviously there's a couple of these people that are always floating around in places like the Gold Coast or any tourist destination," he said.

"One only has to go to 'x' and we've all heard of the scams going on there.

"It's fair to say we've all got to be on our toes."

He says people must remain very aware there are people out there with all sorts of schemes.

"Places like the Gold Coast are always going to be lucrative for the unsavoury types of the world because they see people as being on holiday and having their guard down," he said.

"It reminds us we have to be very careful with our identity so people don't steal it from us."

Passports scam a reminder for tourists to be vigilant - ABC News (Australian Broadcasting Corporation) (http://www.abc.net.au/news/2013-08-20/passports-scam-a-reminder-for-tourists-to-be-vigilant/4898456)

ribshaw

08-19-2013, 08:51 PM

Prosecutors Are Contemplating More Arrests in $80 Million Art Fraud Case
By WILLIAM K. RASHBAUM
Published: August 19, 2013

More arrests are expected in the investigation into one of the most audacious art frauds in recent memory, a federal prosecutor handling the case against an obscure art dealer charged in the case told a judge on Monday. The prosecutor and the dealer’s lawyer also said they expected the case to be resolved soon.
Enlarge This Image

The disclosures came at the arraignment of the dealer, Glafira Rosales, in United States District Court in Manhattan.

Ms. Rosales was arrested in May on money laundering and tax charges in connection with the scheme, which spanned 15 years and included the sale for more than $80 million of dozens of works said to have been by Modernist masters. The case has fixated many in the art world because experts believed that the works were authentic, when, the authorities say, they were created by a single painter in Queens, working from his home.

On Monday, Ms. Rosales was arraigned before Judge Katherine P. Failla on new charges, contained in a superseding indictment handed up by a grand jury last week. She pleaded not guilty during the five-minute proceeding.

After Ms. Rosales entered her plea, Judge Failla asked the prosecutor, Jason P. Hernandez, an assistant United States attorney, if he was contemplating additional arrests in the case.

“Yes,” he said, without elaborating.

Ms. Rosales’s boyfriend, described in the indictment as her co-conspirator, has not been charged, and his whereabouts was unknown.

Mr. Hernandez also said he expected that the case against Ms. Rosales, which was the result of a lengthy F.B.I. investigation, will be resolved in the coming weeks, possibly as early as the end of the month. While the planned disposition of the case was not discussed, the implication was that Ms. Rosales was expected to plead guilty.

A quick resolution of the case, along with the expectation of additional arrests, suggests that Ms. Rosales may have begun cooperating with the Federal Bureau of Investigation and prosecutors sometime after her arrest in May.

Prosecutors argued then that she posed “a substantial flight risk” and that no bail conditions could assure her return to court, convincing a judge to detain her without bail. But last week, after the new indictment was handed up, the prosecutors did not oppose her release on a $2.5 million bond.

Julie Bolcer, a spokeswoman for the office of Preet Bharara, the United States attorney in Manhattan, and an F.B.I. spokesman, James M. Margolin, declined to comment. Ms. Rosales’s lawyer, Steven R. Kartagener, has refused to characterize his discussions with the prosecutors on the case, Mr. Hernandez and Daniel W. Levy.

The new indictment issued last week revealed for the first time that all of the 63 fake art works at the heart of what prosecutors have described as a sweeping fraud scheme were created by a single artist, though they were sold as the works of Willem de Kooning, Jackson Pollock, Mark Rothko, Robert Motherwell and others.

People briefed on the matter said the actual painter was Pei-Shen Qian, a struggling 73-year-old Chinese artist who came to the United States in 1981.

The F.B.I. searched his house in Woodside last week, according to neighbors, who said that Mr. Qian, who has not been charged with a crime, had left for China.

The indictment and other court papers said the painter was discovered selling his own art on the streets of Lower Manhattan in the early 1990s by Ms. Rosales’s boyfriend and business partner, an art dealer named Jose Carlos Bergantiños Diaz, who recruited him to make paintings in the style of celebrated Modernists. The indictment does not name Mr. Bergantiños Diaz, but his identity was confirmed by other court records.

http://www.nytimes.com/2013/08/20/nyregion/prosecutors-expect-more-arrests-in-art-fraud-scheme.html?_r=0

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scratchycat

08-20-2013, 08:25 AM

Related to scams, believe we have another started up yesterday over in MMG.

Web Cash Day - Webcashday.com (http://www.moneymakergroup.com/Web-Cash-Day-Webcashday-t453604.html)

Of course a person just typing the word "scam" has received a big red BANNED banner!!

Hi, I am admin of Webcashday.com and can assure you that it is a legitimate opportunity. Just because the compensation plan offers great rewards doesn't mean that it is too good to be true. The fact is that it is good and it is TRUE!!!

Please feel free to view compensation plan details or email/chat with me via the site if you have any details.

We have had 150 sign ups in the first 20 hours and are looking forward to bringing huge rewards to all our members.

Thanks.

How many times have we heard that one!!!???

Come back in 9 weeks and show us the million and maybe we'll believe you. Hype is just empty promises without proof to back it up. thumbdown.gif

Wonder how long hipcat will last!!

It is simply what is possible with the Web Cash Day system. If each level passes in a week (3 referrals each) it is absolutely possible (9 levels).

The final level payout is $1,000,000

We have designed our compensation plan to be achievable...and with our 12 week training course and promotional area it is. We will help you reach your goal!!!

Looking forward to posting great results and seeing some great results posted by our members.

Already over 200 pro members guys smile.gif

Full steam ahead!!!

Please contact me (pm or email) if you have any questions.

I will be happy to help.

Joined and Upgraded. First Jerk onboard!! :RpS_wink:

ribshaw

08-20-2013, 12:02 PM

When you buy "mystery pills" over the internet your name and information will likely end up with scammers, never mind who the hell knows what they are selling. I am not DR. OZ, so will stick with the scam part, the DEA will not call you on the phone to collect a fine.

DEA Warns of Extortion Scam
Scammers ask victims to pay fine to avoid arrest for purchase of prescriptions over the Internet, by phone

Source: DEA Warns of Extortion Scam | NBC Chicago (http://www.nbcchicago.com/investigations/dea-warning-drug-arrest-scam-220289521.html#ixzz2cWUJMLMI)

--------------------------------------
Part II from FDA

Buying drugs from a pharmacy with a prescription is legal here are tips from the FDA.

Quick Tips for Buying Online

Make sure the site requires a prescription and has a pharmacist available for questions.

Buy only from licensed pharmacies located in the United States. BeSafeRx: Know Your Online Pharmacy has more information about finding safe and legal online pharmacies.

Don't provide personal information such as credit card numbers unless you are sure the site will protect them.

Buying Medicines Over the Internet (http://www.fda.gov/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/buyingmedicinesovertheinternet/default.htm)

--------------------------------------

More joy in pillville. The Possible Dangers of Buying Medicines over the Internet (http://www.fda.gov/forconsumers/consumerupdates/ucm048396.htm)

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More fun thanks to Smiling Bob. American Greed: Sexual Performance Pill | Kirk Wright (http://www.cnbc.com/id/100000060)

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ribshaw

08-20-2013, 03:46 PM

It had to happen, and I will have more to say about it after I find something to eat and what were we talking about..

Just Say No… To Marijuana Stock Scams
By Chris Morran August 20, 2013

justsaynoLook, we know that all the cool kids in the neighborhood have tried it, and some swear that it’s just the bee’s knees, but before you get lured into a mistake that will leave you penniless and regretful, you should learn to just say no to investing in scammy marijuana stocks.

Legally produced and sold marijuana is a growing business in the U.S., especially now that Washington and Colorado have legalized the drug. This means that there is a lot of money to be made in a completely legitimate fashion. It also means there are a growing number of people out there trying to sell you the stock equivalent of a bag full of oregano.

FINRA, the private regulatory body overseeing investment firms, has issued a warning to consumers, not about the risks associated with marijuana, but on how to sniff out and avoid being taken in a pot-related stock scam.

The warning explains that even though the scams might be taking advantage of investors’ interest in a new market, the scammers are often using the classic pump-and-dump ploy:

“Specifically, fraudsters lure investors with aggressive, optimistic—and potentially false and misleading—statements or information designed to create unwarranted demand for shares of a small, thinly traded company with little or no history of financial success (the pump). Once share prices and volumes reach a peak, the cons behind the scam sell off their shares at a profit, leaving investors with worthless stock (the dump).”

FINRA gives the example of a company that went so far as to put out 30 press releases in just the first half of 2013, each touting how much money could and will be made by investors. One release claimed that the stock “could double its price SOON.” Meanwhile, the company has only posted losses and has yet to even formulate a business plan.

Like any investment scam, there are some tried-and-true ways to avoid being taken in:

Ask “Why me?” Most legitimate companies don’t just go seeking investors via cold calls, e-mails, and faxes. “Why would a total stranger tell you about a really great investment opportunity?” asks FINRA. “The answer is there likely is no true opportunity.”

Consider the source. If a corporate officer for a company is the one telling you about how great the company is going to be, take that info with a grain of salt the size of Montana. He or she benefits directly from your investment, whereas you just stand to possibly lose your money.

“Be skeptical about companies that issue a barrage of press releases and promotions in a short period of time,” adds FINRA. “The objective may be to pump up the stock price. Likewise, be wary of information that only focuses on a stock’s upside with no mention of risk.”

Do your research. Scammers are often repeat offenders, so exercise your Google muscle and research the names of key corporate officials and major stakeholders, as well as the company itself.

According to FINRA, one CEO of a possible pump-and-dump marijuana business spent nine years in prison for operating one of the largest drug smuggling operations in U.S. history. Another former CEO of a similar company was indicted for his role in a multi-million dollar Ponzi scheme. These are generally not people with whom you should entrust your money.

Be wary of frequent changes to a company’s name or business focus. Changing brand names is one thing, but repeatedly and/or frequently changing the actual name of a company can be an indicator that there is something to hide. FINRA says one suspicious marijuana company has changed its name four times in 10 years.

Check out the person selling the stock or investment. Anyone can hand you a sheet of paper saying you own shares in something, but a legitimate investment salesperson must be properly licensed and work for a firm registered with FINRA, the SEC and a state securities regulator.

If you’re unsure about that guy who cold-called you to sell you a stock, FINRA’s BrokerCheck allows you to search for free. You can also check with your state securities regulator, click here for a list of contact numbers for each state.

If the company still passes muster after those basic checks, then it’s time to start doing even more research, like finding out which market the stock trades on, and looking through the company’s filings with the Securities and Exchange Commission (assuming there are any). Even then, just because a company trades on the NYSE or has filed reports with the SEC doesn’t mean it’s not simply out to grab your money and run.

Feel like you’ve been taken in by a pump-and-dump scammer, whether related to the marijuana business or not? You should file a complaint via FINRA’s online portal. And if you have a lead on a possible investment scam, there is the FINRA tip line

Just Say No… To Marijuana Stock Scams (http://consumerist.com/2013/08/20/just-say-no-to-marijuana-stock-scams/)

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ribshaw

08-20-2013, 07:29 PM

Someone pissing away 50 years of contacts on a ruse like this leaves me shaking my head. The telltale Ponzi story was front and center.

Calgary man involved in multimillion-dollar investment scam gets four years

CALGARY - A Calgary man was sentenced to four years in prison Thursday for an investment scam in which he cheated clients, friends and family out of millions of dollars.

Robert Sellars, who is 76, pleaded guilty to fraud earlier this year for bilking 350 mostly Calgary-area investors of almost $27 million.

Court heard Sellars used his contacts from 50 years in the insurance business to attract clients to invest in his new company.

He said the money was being invested in gold mines, gravel quarries and overnight, interest-rate differentials on European banks. He promised annual returns of 15 to 18 per cent and as high as 36 per cent.

But it was all a Ponzi scheme. Money received from newer investors is used to pay interest payments guaranteed to older investors.

The company eventually went into bankruptcy.

"Reading the victim impact statements is heartbreaking," said Alberta provincial court Judge Catherine Skene.

She also ordered Sellars to repay close to $10 million dollars in restitution to some of his clients, but admitted she "saw little sign" he would be able to do so.

Sellars had already served a two-year jail term after previously pleading guilty to violations under the Alberta Securities Regulations for taking investments, keeping the principle and not paying returns.

Both the Crown and defence made a joint submission asking for the four-year term and pointed out Sellars had not been living a lavish lifestyle.

Crown prosecutor Shelley Smith said there were a number of aggravating factors.

"The offender took advantage of the high regard he was held in the community," she said. "His actions had a huge impact on his victims."

But Smith said Sellars does deserve some credit for the early plea.

"Mr. Sellars has accepted full responsibility for the investment scheme and has shown genuine remorse."

Lawyer Don Macleod said his client made a mistake and could have retired comfortably from the insurance industry if he had not got involved in the investment scam.

"He now finds himself living in subsidized housing," Macleod said. "He has not lived a handsome lifestyle."

Calgary man involved in multimillion-dollar investment scam gets four years | GlobalPost (http://www.globalpost.com/dispatch/news/the-canadian-press/130801/calgary-man-involved-multimillion-dollar-investment-scam-get)

littleroundman

08-20-2013, 07:30 PM

Five online scams to watch out for

According to the Australian Competition and Consumer Commission's latest targeting scams report (http://www.accc.gov.au/publications/targeting-scams-report-on-scam-activity/targeting-scams-report-of-the-accc-on-scam-activity-2012), $93 million was lost to fraud in 2012 — an increase of 9 per cent from 2011. Identity theft and cyber fraud cost the country $8.5 billion every year, with as many as one in five Australians being hit.

With consumers conducting more and more of their activities online, from banking to shopping, con artists' schemes are becoming more and more sophisticated. Emails appear to be from legitimate sources; websites and forms look just like the real thing. Forewarned is forearmed, so here's a list of five scams you should be on the lookout for.

1. Tax refund phishing scams

The Australian Taxation Office has warned consumers and small businesses to be aware of tax refund email scams, which attempt to take advantage of the busy end of financial year season.

According to SCAMwatch and the ATO, a new phishing email that may appear to be from the ATO claims that you are entitled to a tax refund — one that you can process by clicking on an embedded link and filling out a form.
However, as in other phishing scams, the form and link are fake and designed to steal your information or infect your computer with malware. The scammer can then use these details to steal your identity and money.

2. Auction and shopping scams
The popularity of internet retailers continues to grow, with the number of Australians who shop online tipping over the 50 per cent mark for the first time this year.
Auction sites are a hotbed for fraud: con artists can claim to be selling a product in order to obtain buyers' bank account or credit card details; often they will send a fraudulent or faulty item — or no item at all.

Last month, Victoria Police announced that they were searching for a man who was suspected to have used this modus operandi to victimise more than 300 people on the buying and selling website Gumtree. Earlier this month, a Queensland woman paid $1200 for two iPhones and received two pieces of fruit instead.

3. Nigerian scams

Also known as a 419 scam, the 'Nigerian Prince' is one of the internet's oldest and most infamous cons. It's now taken on many different forms, but at its most basic it's an email that appears to be a plea for help. The sender usually claims that a large sum needs to be deposited into an offshore account. Should you be willing to assist, you will be rewarded with a percentage — but to start the process, an initial "investment" must be made. The pleas can also be sent from hijacked email accounts, which makes them appear to be coming from someone you know.

The popularity — and success — of the Nigerian Prince may now seem both ludicrous and comical, but it continues to be the most commonly reported type of con. Some extreme instances have even resulted in kidnapping and murder.

4. Online dating scams

ACCC data (http://www.accc.gov.au/system/files/Targeting%20scams%202012.pdf) shows that almost half of people who responded to an approach by a dating and romance scammer last year reported a financial loss — a 46 per cent conversion rate, with the average loss ringing in at a staggering $21,000.

Luring potential victims with fake profiles, scam operators try to move contact off the dating website and onto email or telephone. Once an emotional connection has been established, con artists look to profit by posing as "someone based overseas, someone whose child has had an accident and urgently needs money for a medical procedure, someone who may be stuck on an offshore operation, or even as a military operator who needs money to get a visa, to get a ticket of leave back home," according to ACCC deputy chairman Dr Michael Schaper.

Many of the scam operators are based outside Australia, making it difficult to recover lost funds.

5. Computer hacking scams

In 2012, consumers lost $1,312,794 to computer hacking scams, which accounted for just over 13 per cent of reports to the ACCC.

Last October, pop-up alerts claiming to originate from the Australian Federal Police warned people that their computers had been frozen for visiting an illegal website or breaking other laws. Users were then prompted to pay a fee to have their machine unlocked.

Another commonly reported scam involved a cold call from a fake Microsoft employee, who would inform victims that their computer had been infected with a virus that would need to be fixed immediately for a $300-$400 fee.

ribshaw

08-20-2013, 07:34 PM

I found this an interesting story, scam perhaps not in the conventional sense. But signing a contract to let a company drill on your land is not like ignoring the user agreement for Microsoft Word. At the bottom there is a PDF from Penn State University, I sort of skimmed through it but may prove useful to someone with land they want drilled on.

Don Feusner ran dairy cattle on his 370-acre slice of northern Pennsylvania until he could no longer turn a profit by farming. Then, at age 60, he sold all but a few Angus and aimed for a comfortable retirement on money from drilling his land for natural gas instead.

It seemed promising. Two wells drilled on his lease hit as sweet a spot as the Marcellus shale could offer – tens of millions of cubic feet of natural gas gushed forth. Last December, he received a check for $8,506 for a month’s share of the gas.

Then one day in April, Feusner ripped open his royalty envelope to find that while his wells were still producing the same amount of gas, the gusher of cash had slowed. His eyes cascaded down the page to his monthly balance at the bottom: $1,690.

Chesapeake Energy, the company that drilled his wells, was withholding almost 90 percent of Feusner’s share of the income to cover unspecified “gathering” expenses and it wasn’t explaining why.

“They said you’re going to be a millionaire in a couple of years, but none of that has happened,” Feusner said. “I guess we’re expected to just take whatever they want to give us.”

Like every landowner who signs a lease agreement to allow a drilling company to take resources off his land, Feusner is owed a cut of what is produced, called a royalty.

In 1982, in a landmark effort to keep people from being fleeced by the oil industry, the federal government passed a law establishing that royalty payments to landowners would be no less than 12.5 percent of the oil and gas sales from their leases.

From Pennsylvania to North Dakota, a powerful argument for allowing extensive new drilling has been that royalty payments would enrich local landowners, lifting the economies of heartland and rural America. The boom was also supposed to fill the government’s coffers, since roughly 30 percent of the nation’s drilling takes place on federal land.

Over the last decade, an untold number of leases were signed, and hundreds of thousands of wells have been sunk into new energy deposits across the country.

But manipulation of costs and other data by oil companies is keeping billions of dollars in royalties out of the hands of private and government landholders, an investigation by ProPublica has found.

An analysis of lease agreements, government documents and thousands of pages of court records shows that such underpayments are widespread. Thousands of landowners like Feusner are receiving far less than they expected based on the sales value of gas or oil produced on their property. In some cases, they are being paid virtually nothing at all.

In many cases, lawyers and auditors who specialize in production accounting tell ProPublica energy companies are using complex accounting and business arrangements to skim profits off the sale of resources and increase the expenses charged to landowners.

Deducting expenses is itself controversial and debated as unfair among landowners, but it is allowable under many leases, some of which were signed without landowners fully understanding their implications.

But some companies deduct expenses for transporting and processing natural gas, even when leases contain clauses explicitly prohibiting such deductions. In other cases, according to court files and documents obtained by ProPublica, they withhold money without explanation for other, unauthorized expenses, and without telling landowners that the money is being withheld.

Significant amounts of fuel are never sold at all – companies use it themselves to power equipment that processes gas, sometimes at facilities far away from the land on which it was drilled. In Oklahoma, Chesapeake deducted marketing fees from payments to a landowner – a joint owner in the well – even though the fees went to its own subsidiary, a pipeline company called Chesapeake Energy Marketing. The landowner alleged the fees had been disguised in the form of lower sales prices. A court ruled that the company was entitled to charge the fees.

Costs such as these are normally only documented in private transactions between energy companies, and are almost never detailed to landowners.

“To find out how the calculation is done, you may well have to file a lawsuit and get it through discovery,” said Owen Anderson, the Eugene Kuntz Chair in Oil, Gas & Natural Resources at the University of Oklahoma College of Law, and an expert on royalty disputes. “I’m not aware of any state that requires that level of disclosure.”

To keep royalties low, companies sometimes set up subsidiaries or limited partnerships to which they sell oil and gas at reduced prices, only to recoup the full value of the resources when their subsidiaries resell it. Royalty payments are usually based on the initial transaction.

In other cases, companies have bartered for services off the books, hiding the full value of resources from landowners. In a 2003 case in Louisiana, for example, Kerr McGee, now owned by Anadarko Petroleum, sold its oil for a fraction of its value – and paid royalties to the government on the discounted amount – in a trade arrangement for marketing services that were never accounted for on its cash flow statements. The federal government sued, and won.

The government has an arsenal of tools to combat royalty underpayment. The Department of Interior has rules governing what deductions are allowable. It also employs an auditing agency that, while far from perfect, has uncovered more than a dozen instances in which drillers were “willful” in deceiving the government on royalty payments just since 2011. A spokesman for the Department of Interior’s Office of Natural Resources Revenue says that over the last three decades, the government has recouped more than $4 billion in unpaid fees from such cases.

There are few such protective mechanisms for private landowners, though, who enter into agreements without regulatory oversight and must pay to audit or challenge energy companies out of their own pockets.

ProPublica made several attempts to contact Chesapeake Energy for this article. The company declined, via email, to answer any questions regarding royalties, and then did not respond to detailed sets of questions submitted afterward. The leading industry trade group, the American Petroleum Institute, also declined to comment on landowners’ allegations of underpayments, saying that individual companies would need to respond to specific claims.

Anderson acknowledged that many landowners enter into contracts without understanding their implications and said it was up to them to do due diligence before signing agreements with oil and gas companies.

“The duty of the corporation is to make money for shareholders,” Anderson said. “Every penny that a corporation can save on royalties is a penny of profit for shareholders, so why shouldn’t they try to save every penny that they can on payments to royalty owners?”

* * *

Gas flows up through a well head on Feusner’s property, makes a couple of turns and passes a meter that measures its volume. Then it flows into larger pipes fed by multiple pipelines in a process the industry calls “gathering.” Together, the mixed gases might get compressed or processed to improve the gas quality for final sale, before feeding into a larger network of pipelines that extends for hundreds of miles to an end point, where the gas is sold and ultimately distributed to consumers.

Each section of pipeline is owned and managed by a different company. These companies buy the gas from Chesapeake, but have no accountability to Feusner. They operate under minimal regulatory oversight, and have sales contracts with the well operator, in this case Chesapeake, with terms that are private. Until Chesapeake sold its pipeline company last winter, the pipelines were owned by its own subsidiaries.

As in many royalty disputes, it is not clear exactly which point of sale is the one on which Feusner’s payments should be based – the last sale onto the open market or earlier changes in custody. It’s equally unclear whether the expenses being charged to Feusner are incurred before or after that point of sale, or what processes, exactly, fall under the term “gathering.” Definitions of that term vary, depending on who is asked. In an email, a spokesperson for Chesapeake declined to say how the company defines gathering.

Making matters more complicated, the rights to the gas itself are often split into shares, sometimes among as many as a half-dozen companies, and are frequently traded. Feusner originally signed a lease with a small drilling company, which sold the rights to the lease to Chesapeake. Chesapeake sold a share of its rights in the lease to a Norwegian company, Statoil, which now owns about a one-third interest in the gas produced from Feusner’s property.

Chesapeake and Statoil pay him royalties and account for expenses separately. Statoil does not deduct any expenses in calculating Feusner’s royalty payments, possibly because it has a different interpretation of what’s allowed.

“Statoil’s policy is to carefully look at each individual lease, and to take post-production deductions only where the lease and the law allow for it,” a company spokesman wrote in an email. “We take our production in kind from Chesapeake and we have no input into how they interpret the leases.”

Once the gas is produced, a host of opaque transactions influence how sales are accounted for and proceeds are allocated to everyone entitled to a slice. The chain of custody and division of shares is so complex that even the country’s best forensic accountants struggle to make sense of energy companies’ books.

Feusner’s lease does not give him the right to review Chesapeake’s contracts with its partners, or to verify the sales figures that the company reports to him. Pennsylvania – though it recently passed a law requiring that the total amount of deductions be listed on royalty statements – has no laws dictating at what point a sale price needs to be set, and what expenses are legitimate.

Concerns about royalties have begun to attract the attention of state legislators, who held a hearing on the issue in June. Some have acknowledged a need to clarify minimum royalty guarantees in the state, but so far, that hasn’t happened.

“If you have a system that is not transparent from wellhead to burner tip and you hide behind confidentiality, then you have something to hide,” Jerry Simmons, executive director of the National Association of Royalty Owners (NARO), the premier organization representing private landowners in the U.S., told ProPublica in a 2009 interview. Simmons said recently that his views had not changed, but declined to be interviewed again. “The idea that regulatory agencies don’t know the volume of gas being produced in this country is absurd.”

Because so many disputes come down to interpretations of contract language, companies often look to courts for clarification. Not many royalty cases have been argued in Pennsylvania so far, but in 2010, a landmark decision, Kilmer v. Elexco Land Services, set out that the state’s minimum royalty guarantee applied to revenues before expenses were calculated, and that, when allowed by leases, energy companies were free to charge back deductions against those royalties.

Since then, Pennsylvania landowners say, Chesapeake has been making larger deductions from their checks. (The company did not respond to questions about this.) In April, Feusner’s effective royalty rate on the gas sold by Chesapeake was less than 1 percent.

Paul Sidorek is an accountant representing some 60 northeastern Pennsylvania landowners who receive royalty income from drilling. He’s also a landowner himself – in 2009, he leased 145 acres, and that lease was eventually sold to Chesapeake. Well aware of the troubles encountered by others, Sidorek negotiated a 20 percent royalty and made sure his lease said explicitly that no expenses could be deducted from the sale of the gas produced on his property.

Yet now, Sidorek says, Chesapeake is deducting as much as 30 percent from his royalties, attributing it to “gathering” and “third party” expenses, an amount that adds up to some $40,000 a year.

“Now that the royalties are flowing, some people just count it as a blessing and say we don’t care what Chesapeake does, it’s money we wouldn’t have had before,” Sidorek said. But he’s filed a lawsuit. “I figure I could give my grandson a first-class education for what Chesapeake is deducting that they are not entitled to, so I’m taking it on.”

Landowners, lawyers, legislators and even some energy industry groups say Chesapeake stands out for its confusing accounting and tendency to deduct the most expenses from landowners’ royalty checks in Pennsylvania.

“They’ve had a culture of doing cutthroat business,” said Jackie Root, president of Pennsylvania’s chapter of the National Association of Royalty Owners.

Chesapeake did not respond to questions on whether its approach differs from that of other companies.

Root and others report good working relationships with other companies operating wells in Pennsylvania, and say that deductions – if they occur at all – are modest. Statoil, which has an interest in a number of Chesapeake wells, does not deduct any expenses on its share of many of the same leases. In an email from a spokesperson, the company said “We always seek to deal with our lease holders in a fair manner.”

Several landowners said that not only do deductions vary between companies using the same gas “gathering” network – sales prices do as well.

On Sidorek’s royalty statements, for example, Chesapeake and Statoil disclose substantially different sales prices for the same gas moved through the same system.

“If Statoil can consistently sell the gas for $.25 more, and Chesapeake claims it’s the premier producer in the country, then why the hell can’t they get the same price Statoil does for the same gas on the same day?” Sidorek wondered.

He thinks Chesapeake was giving a discount to a pipeline company it used to own. Chesapeake did not respond to questions about the price discrepancy.

Chesapeake may be the focus of landowner ire in Pennsylvania, but across the country thousands of landowners have filed similar complaints against many oil and gas producers.

In dozens of class actions reviewed by ProPublica, landowners have alleged they cannot make sense of the expenses deducted from their payments or that companies are hiding charges

Publicly traded oil and gas companies also have disclosed settlements and judgments related to royalty disputes that, collectively, add up to billions of dollars.

In 2003, a jury found that Exxon had defrauded the state of Alabama out of royalty payments and ordered the company to pay nearly $103 million in back royalties and interest, plus $11.8 billion in punitive damages. (The punitive damages were reduced to $3.5 billion on appeal, and then eliminated by the state supreme court in 2007.)

In 2007, a jury ordered a Chesapeake subsidiary to pay $404 million, including $270 million in punitive damages, for cheating a class of leaseholders in West Virginia. In 2010, Shell was hit with a $66 million judgment, including $52 million in punitive fines, after a jury decided the company had hidden a prolific well and then intentionally misled landowners when they sought royalties. The judgment was upheld on appeal.

Since the language of individual lease agreements vary widely, and some date back nearly 100 years, many of the disagreements about deductions boil down to differing interpretations of the language in the contract.

In Pennsylvania, however, courts have set few precedents for how leases should be read and substantial hurdles stand in the way of landowners interested in bringing cases.

Pennsylvania attorneys say many of their clients’ leases do not allow landowners to audit gas companies to verify their accounting. Even landowners allowed to conduct such audits could have to shell out tens of thousands of dollars to do so.

When audits turn up discrepancies, attorneys say, many Pennsylvania leases require landowners to submit to arbitration – another exhaustive process that can cost tens of thousands of dollars. Arbitration clauses can also make it more difficult for landowners to join class action suits in which individuals can pool their resources and gain enough leverage to take on the industry.

“They basically are daring you to sue them,” said Aaron Hovan, an attorney in Tunkhannock, Pa., representing landowners who have royalty concerns. “And you need to have a really good case to go through all of that, and then you could definitely lose.”

All of these hurdles have to be cleared within Pennsylvania’s four-year statute of limitations. Landowners who realize too late that they have been underpaid for years – or who inherit a lease from an ailing parent who never bothered to check their statements – are simply out of luck.

Even if a gas company were found liable for underpaying royalties in Pennsylvania, it would have little to fear. It would owe only the amount it should have paid in the first place; unlike Oklahoma and other states, Pennsylvania law does not allow for any additional interest on unpaid royalties and sets a very high bar for winning punitive penalties.

“They just wait to see who challenges them, they keep what they keep, they give up what they lose,” said Root, the NARO chapter president. “It may just be part of their business decision to do it this way.”

Unfair Share: How Oil and Gas Drillers Avoid Paying Royalties - ProPublica (http://www.propublica.org/article/unfair-share-how-oil-and-gas-drillers-avoid-paying-royalties)
http://pubs.cas.psu.edu/freepubs/pdfs/ui394.pdf

ribshaw

08-20-2013, 08:18 PM

There are a few current scams on realscam.com operating out of mail drops just like these folks were. No real office should be a huge red flag.

DA: 3 Florida Men Ran ‘Wall Street’ Silver Scam
They Allegedly Duped 150 People
August 20, 2013 4:54 PM

New York (CBSNewYork) — Three Florida men using a Wall Street address duped at least 150 people into spending $8 million on precious metals they did not own, Manhattan District Attorney Cy Vance said.

The men, all in their 30s, allegedly encouraged their victims to invest their retirement savings in silver bullion, WCBS 880′s Irene Cornell reported. The company, PMCO, told customers that it held many tons of metals, employed hundreds of people and counted several large insurance companies and the New York Mets among its clients — none of which was true, prosecutors said.

The accused mastermind, Sean Robert Stropp, allegedly claimed he had more than 30 years of experience. He is 31.
play

DA: 3 Florida Men Ran 'Wall Street' Silver Scam
WCBS 880's Irene Cornell reports.

The suspects set up a virtual office in Manhattan, but the address was only used to forward mail and money to themselves, Vance said.

Stropp, Karl Spicer, 37, and Ricardo Garcia, 32, were indicted on charges that include grand larceny, scheme to defraud and failure to register as commodities brokers.

“Because New York is the financial capital of the United States, some companies, like the one named in this indictment, seek to set up ‘virtual’ offices on Wall Street,” Vance said in a statement. “The Manhattan District Attorney’s Office will continue to vigilantly protect investors against those who seek to use New York’s reputation as a means to defraud others.”

DA: 3 Florida Men Ran ‘Wall Street’ Silver Scam « CBS New York (http://newyork.cbslocal.com/2013/08/20/da-3-florida-men-ran-wall-street-silver-scam/)

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Gold is good. Or is it just pitched to you as a way to make easy profits by television ads and telemarketers?

With the price of gold rising steadily, as recently as this week, the popular mindset of its safety and value has been around since before the Gold Standard backed the U.S. dollar . But before you get in on the gold rush, the Federal Trade Commission (FTC) wants you to beware of fraudsters looking to make a quick buck.

According to the FTC, complaints in the area of investment frauds, including precious metals, have increased sharply over the past three years. In 2011, the FTC fielded 7,657 complaints related to investment fraud, compared to 6,490 complaints in 2009.

"Consumers are vulnerable, because other investments are not panning out for them. They're looking for something different and precious metals are presented to them as a winning situation," FTC attorney Dama Brown said.

After the financial crisis in 2008, as gold prices continued to rise, con artists began capitalizing on the economic climate and taking advantage of people's fears, Brown said.

Fraudulent telemarketers sold precious metals as safe investments, but brokers have testified that they were in fact very high-risk transactions. (Read More: 10 Outrageous Products Made of Gold)

"Unfortunately, consumers are losing money. At a minimum it's several thousand dollars. And often we see that it's consumers entire retirement," Brown said. "Some are even encouraged to cash out their IRAs, and they end up losing it within months."

The Pitch: As Safe as Keeping Metal in Your Mattress?

As part of a Federal Security Investment Task Force, Brown has been involved in many precious metal scam investigations. She has uncovered deceptive sales scripts that bill precious metals as a safe-haven investment, even calling it "as safe as keeping metal in your mattress."

"They cold call consumers and give very strong sales pitches, saying precious metals will rise significantly, doubling or tripling in as little as 30 days, and that consumers must send in money immediately so they don't lose out on the opportunity," Brown said.

Studies have shown the number of companies offering consumers the chance to buy or invest in precious metals has increased, according to a fraud alert released by the U.S. Commodity Futures Trading Commission earlier this year.

"However, many of these companies do not actually purchase or store any metal for their customers," the report said.

How Precious Metal Scams Operate

One such fraudulent company was run by fugitive Luis Ferreira. A two-time telemarketing fraudster, Ferreira was fresh out of federal prison and barred from fundraising for three years. In 2008, he used his mother's name to incorporate Spyker Consulting, a precious metals telemarketing firm based in south Florida. (See: How Luis Ferreira Became a Fugitive.)

Without direct access to the precious metals market, Spyker supposedly contracted a London-based "clearing firm" to buy, sell, and store the precious metals.

But the company was a sham - the London-based clearing firm did not exist. The mail and phone calls that supposedly went to that office were simply redirected back to the Spyker's Florida office, according to the Federal Bureau of Investigation. (Read More: Criminal Complaint Against Luis Ferreira.)

Rather than investing his clients' money, Ferreira pocketed it, up to $27,000 a month by 2010, according to the FBI. When the feds confronted him, Ferreira confessed. He pled guilty to conspiracy and received a three-year prison sentence. Rather than serve his time, however, Ferreira disappeared.

Falling Prey to a Career Conman

The news devastated investor Steve Starr, who lost $25,000 in Ferreira's scam. Starr owned a Tampa Bay, Fla.-based RV dealership that in 2008 was seeing an all-time low in sales when a Spyker telemarketer called him. The sales pitch convinced him to invest $5,000 in silver. Over a few months, Starr received statements that showed his money growing.

"I thought it was the best thing I ever did 'cause I watched the silver go up and up and up. And I said, 'Wow, these guys were right. It was worth 15 percent commission,' " Starr told CNBC's "American Greed: The Fugitives."

Then another Spyker telemarketer called. Starr recalled, "[He] told me palladium is getting ready to take off and I should invest in some palladium. He says you need to get every dime you can scrape up and he says you're gonna make a ton of money." (See: Steve Starr Explains What Information Telemarketers Are After.)

So Starr doubled down and invested $20,000 more. But by late 2009, he sensed trouble. His statements stopped coming and when he tried to liquidate his account, he was told he had to wait.

Needing to pay property taxes, Starr took out a home equity loan on his previously paid for house. The next time he called Spyker, the phone was disconnected. Starr lost his entire investment and was now saddled with debt.

"I sleep very little. I'm lucky if I sleep two or three hours at night. I mean my health has gone downhill. It's been, it's been devastating," he said.

Not All Brokers Are Equal

Unfortunately, Starr's story was like many others Brown had heard before. Potential investors should know that people who sell "physical" precious metals, like gold or silver bullion, are not required to obtain licensing or training from the National Futures Association (NFA). Yet, some companies advertised their brokers as being licensed, Brown said.

"They are referring to a telemarketing license. If they were licensed in commodities, we'd call them brokers. But instead we consider them telemarketers," Brown said.

The FTC has found that many fraudulent companies were operated by brokers who had lost their license to sell stocks or futures because of deceptive sales practices.

The best advice Brown said she could give was to search the NFA database to check the regulatory history of your broker. It tells you if the person is licensed, sanctioned, or banned from the NFA. If you don't find your broker's name listed, you should think hard about to whom you're giving your money, Brown said.

"Why would you want to deal with someone if they're not licensed and they're in this unregulated trade, especially when there are precious metal companies that use licensed brokers? I would suggest finding someone who carries a license," Brown said.

More Tips to Avoid Precious Metal Scams

Brown also suggests the following tips before investing in precious metals:

Do a general Internet search of the company, making sure to check the Better Business Bureau. (Read More: See the Alert on Spyker.)
Register for the federal "Do Not Call List." Legitimate telemarketing companies won't call you if you're number is on this list because it's against the law.
Be cautious of opportunities to finance. Go beyond what the telemarketer tells you and read the fine print, including excessive service and storage fees, and high interest rates.
Find the physical address of the company's location and drive by it.
If you buy physical metals, such as gold or silver bullion, consider taking delivery of your purchase and storing it yourself, rather than entrusting a company to do so.
Watch out for overzealous sales pitches! If a telemarketer says an investment is risk-free, or guarantees high profits with very low risk, think twice - especially you're pressured to act quickly.

Gold Investment Scams: How to Avoid Them - Yahoo! Finance (http://finance.yahoo.com/news/gold-investment-scams-avoid-them-151310393.html)

Hire this guy to guard your gold!!
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ribshaw

08-21-2013, 05:30 PM

WAYNE COUNTY, N.C. (WTVD) -- Calls that threaten your children are being held hostage are surely a scary thought, but don't take any action.

The Wayne County Sheriff's Office said the call is just another attempt from scammers to take your money.

Investigators said it all starts with a phone call with someone pretending to be in accident.

SCAMMER: "Mr. Smith, your child has been involved in an accident and damaged my brother's car."

VICTIM: "Who, my daughter Ashley?"

SCAMMER: "Yes, Ashley ran into the back of my brother's car. He is a gang member and has a gun. He took Ashley hostage and is threatening to kill her unless she pays for the damage to his car. If you call anyone, if Ashley's cell phone even rings, he is going to kill her. You need to go to CVS and send a money order to John Doe in San Juan, Puerto Rico."

The con-artist gets more aggressive the more questions you ask and will attempt to keep you on the phone until the money is received.

This call would scare any parent and spur them to do whatever it takes to make sure their child is safe, but officials insist it is a scam.

Investigators told ABC11 people are receiving calls from area codes (202), (836), and (504) as well as a host of other area codes. The (202) area code is assigned to the Washington, DC area; however these calls are not originating in Washington, DC. Area code (836) is "unassigned" and area code (504) is a country code for Honduras. Due to technology, investigators say it's almost impossible to determine the real location of the calls.

The best advice is to hang up on the calls. While the scammer makes it sound urgent and an emergency, it's just an attempt to prey on your emotions.

Latest scam claims children held hostage | abc11.com (http://abclocal.go.com/wtvd/story?section=news/troubleshooter&id=9214324)

littleroundman

08-21-2013, 07:38 PM

How Steve lost $200,000 to an investment scam

Steve is a 65-year-old who lives alone in retirement.

Not long after his wife’s death, he received an unexpected call from fraud operators.

The cold-callers were very professional in their approach, with excellent knowledge of investment matters. They answered all of Steve’s questions and their initial contact was followed up with calls from ‘senior advisors’.

As Steve’s superannuation funds weren’t doing so well, he decided to give this new investment opportunity a try. He did not see the need to discuss the investment opportunities with anyone else.

Over the next 12 months, Steve made a number of transfers to the fraudsters, initially starting with $10,000. He was referred to a very professional looking website and set up a login account, which showed his money increasing in value as the market ‘went up’. Overall, Steve sent $200,000.

He only realised that the investments were fraudulent when the website went down and he could no longer access his account or contact the offshore group by phone.

He then did some research and discovered that the company was fake but he was too embarrassed to tell anyone or report it to police. He was contacted by police after they discovered his name on bank transfers made to known fraudsters.

Since learning of the fraud, Steve has been contacted again by criminals, with offers to help him get his money back from the original investment. This time Steve contacted police, who explained this was a ‘secondary fraud’ and warned him to expect more calls like this as his name was passed on to other criminals.

Unfortunately, there is little authorities can do to recover Steve’s $200,000.

Scamwatch.gov.au (http://www.scamwatch.gov.au/content/index.phtml/itemId/965038)

ribshaw

08-21-2013, 07:39 PM

If a lender says you can get an easy loan, but you need to pay them some cash upfront - walk away.

The Better Business Bureau Serving Metropolitan New York sent out a warning yesterday alerting consumers of a fast-rising scam where so-called lenders are making false promises to borrowers in exchange for an upfront fee.

The BBB has received a flurry of complaints since the middle of June from consumers alleging that lenders are demanding cash upfront, bagging the money, and walking away without providing any loan.

Charging an advanced fee for a loan is illegal.

Often borrowers who fall into these traps don't have many options because of their poor credit history or lack of collateral.

"The bottom line is any time someone is asking you pay in advance for a loan or credit card, it's bad news," Claire Rosenzweig, president of the Better Business Bureau Serving Metropolitan New York told the Daily News.

Here's how the alleged scam works: Consumers apply and get "approved" for loans online. They are then asked to "secure" the loan by paying fees under the guise of a variety of names such as interest fees, collateral or insurance costs on the loan, or a lender or broker's fee.

The fees range from $150 to $500.

Consumers are then told to transfer the cash via Western Union or re-loadable credit cards like Green Dot MoneyPak. In many cases, the lender comes back multiple times asking for fees, the BBB said.

The "lenders" never dole out the loan. They disappear, shutting down their website and disconnecting their phones, consumers allege in their complaints.

Because they wired the money, the victims have little hope of getting their money back.

How do you avoid these traps?

Always learn whether a lender is legit by checking to see if it is registered with with the New York State Department of Financial Services or the New York State Attorney General's office.

If you believe you have been a victim of an advanced fee loan scam, you can file a complaint with the BBB at newyork.bbb.org or bbb.org.

You may also file a complaint with the Federal Trade Commission and the attorney general's office.

pfurman@nydailynews.com

Six signs you're about to be scammed.

A lender who isn't interested in your credit history. Beware any lender who doesn't care about your credit record.

Fees that aren't disclosed clearly or prominently.Any upfront fee that the lender wants to collect before granting the loan is a cue to walk away.

A loan that is offered by phone. It is illegal for companies doing business by phone in the U.S. to promise you a loan or credit card and ask you to pay for it before they deliver.

A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business.

A lender who asks you to wire money or pay an individual. Don't make a payment for a loan or credit card directly to an individual; legitimate lenders don't ask anyone to do that. And don't use a wire transfer service or send money orders for a loan.

A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look professional.

Always get a company's phone number from the phone book or directory assistance, and call to check they are who they say they are.

Source: FTC.gov

Read more: Scam alert: BBB says advanced fee loan scams are on the rise - NY Daily News (http://www.nydailynews.com/new-york/scam-alert-bbb-advanced-fee-loan-scams-rise-article-1.1433130#ixzz2ceW6LdUN)

================================================== ==
Here is a scumbag running an advance fee loan scam. Another quick tip, lenders don't need to spam message boards to find people who need money.

SCAMMER johnholtfinances@manager.in.th
SCAMMER johnholtloanfirm988@gmail.com

https://www.facebook.com/johnm.holtloans

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ribshaw

08-21-2013, 07:52 PM

Window cleaner scam, pretty slick stuff.

http://www.youtube.com/watch?v=E0gkEN1_2e8

ribshaw

08-21-2013, 08:33 PM

CNN) -- A Utah woman lied about her 4-year-old daughter having cancer -- including to the girl and the girl's father -- to scam donations in her community, investigators said.

The mother, Abreail Denise "Abby" Winkler, 30, "told the girl she had cancer and that she would be treated. When she was around her dad, the little girl would talk about having cancer," said Keith Campbell, assistant chief of the Vernal Police Department.

Winkler was charged with one count of communications fraud, a third degree felony, according to court documents. She was booked into the Uintah County Jail and posted a $5,000 bond.

"In early July we started the investigation and quickly determined that Abreail Winkler had told people in the community that the 4-year-old had leukemia. During the investigation, it was determined that the child never had leukemia. No records for treatments were located," Cambpell said.

Investigators said donors who gave a total of more than $3,000 want their money back for "getting duped," said Campbell. "She wasn't actively going door to door, but our local high school drill team did a fund-raiser for her, and so did a private dance teacher and private donors," he said.

The child's father did not live in the same home as the mother, Campbell said. The father told investigators that "when he inquired about the cancer, he was told not to worry about it because the child was receiving treatment."

Utah mom lies about daughter's cancer to scam donations, police say - CNN.com (http://www.cnn.com/2013/08/21/us/utah-mom-cancer-scam/?hpt=hp_t2)

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ribshaw

08-21-2013, 08:39 PM

Scam Tips and Advice for College Students and Parents

Can students be scammed? How should they watch out for being cheated? Prospective college students and their parents should be vigilant for how they can be bamboozled. They need to protect themselves from the various ways in which they could be tricked out of their money. For example, Keith Blocker, the then-Maryland high school senior who was lauded for his 13 years of perfect attendance a few months ago. Blocker was exhilarated when he was accepted to the University of Maryland. There was just one problem: The family did not have the funds to pay for his college expenses and tuition. Imagine their surprise when they were contacted by a man who had seen their son's story on WRC-TV, NBC 4. Gregory McClees told the Blockers that he wanted to offer Keith a four-year scholarship to the college of his choice.

In return for the family paying a $200 administrative fee, McClees promised he would provide Keith with a monthly stipend of $1,000. When the first check arrived, the Blockers deposited it and proceeded to purchase their son's school supplies. They were shocked when the bank informed them that their benefactor's check had bounced! This led the Blockers to get behind on their bills while McClees continued to promise them that he would send $10,000, but he never delivered. Frustrated and outraged, the Blockers contacted WJLA 7 On Your Side, and reporter Kris Van Cleave confronted McClees. McClees claimed the checks had been stopped due to a bank error and that he was away from the area. The Blockers were forced to face the fact that they had been swindled. As of August 2013, the Blockers are struggling to pay their bills and wondering whether they will be able to send Keith to the University of Maryland.

Many young adults do not think this kind of incident could happen to them. They think they are too savvy to be caught in a situation like the one the Blockers found themselves in. Nevertheless, scams can happen to anyone. Scams are becoming more common in 21st century American society. Criminals and con artists are desperate for money and will do anything to get it. They will use threats on people's family and friends just to make a buck. If they are successful in getting vulnerable people's money that will end up in their pockets, which was the case with the Blocker family. Scammers should not be allowed to get away with their schemes. Their sole intent is to target their victims, execute their plan successfully, and then repeat the process. If there were a rewind function for this story, the Blockers most likely could have done a background check on McClees to see if he represented a legitimate institution, and if this so-called scholarship he was offering was real. Perhaps a neighbor, family member, or friend could have warned the Blockers that they may be the target of a scam had they had this information.

Here are some warning signs of a scam in progress: You are asked for money upfront, you receive an unsolicited offer from an individual or organization that you never heard of, or you are asked to provide financial information to someone that you do not know. In these cases, stop communicating with that person or company immediately. The offer is most likely a scam. A majority of scholarships and grants require an application, and organizations that offer grants rarely ask for money in advance before a student receives his or her award. These scammers just want your money. They want to make themselves successful, not you.

For instance, last summer I was interning at a local radio station in downtown Silver Spring, Md., when I received a series of calls from somebody claiming to be from the U.S. Department of Education. He said, "Hello, we are from the U.S. Department of Education and we have a grant for you." I knew right there that it was a scam because I had not applied for a grant with the U.S. Department of Education. These people had just procured my name and contact information from the Internet. I told them not to contact me again and that I was not interested in their offer. The voice on their end suddenly switched to another voice saying "Hello?" twice. I called the number they contacted me from and the automatic voice message said, "Please enter your card number." I immediately hung up the phone. Since then, I have not answered their calls. Do not follow the scammers' directions.

• Make sure you know the person or company you are communicating with.
When a person or company tells you about an offer or deal they have for you, do some background research to get information. Find out if their business is legitimate or fraudulent. Gather contact information to be informed about the business's mission and daily tasks. Look at reviews from other people to see what they can tell you about the person or company. Ask friends, neighbors, and other family members to see if they know anything about the person or company. They might be able to give you good information before you put yourself, someone else you know, or your family in the position to be scammed. Also, check with the Better Business Bureau. You may find more information there.

• Do not disclose financial or contact information on the Internet to third-party members.
Make sure that you are being careful regarding what you are buying online and what you are doing with your financial and contact information. Sometimes scammers can steal this information and use it to exploit you financially. This can lead to identity theft and other sorts of problems. Make sure to keep records on what you are doing with your information. If you have any expired or unused cards, statements, and/or old mail, carefully dispose of them properly, because scammers can use this information to steal your identity.

• When unknown people knock on your door, do not open the door for them.
When someone knocks on your door, do not open the door for them. Ask them who they are and why they are knocking on your door. If it is a salesperson, do not open your door for them. Some of them are con artists and you do not know what they could be doing. Use common sense, critical thinking, and decision-making skills.

• Be mindful when taking anonymous or private telephone calls.
Also, be careful with whom you are talking on the telephone. You never know who is on the other end. Many of these calls are from telemarketers that just want your information. They also will have offers to interest you, such as vacations or prizes. Do not answer their calls. Be sure to put your number on the National Do Not Call Registry. The Federal Trade Commission maintains this listing to make sure telemarketers do not call the numbers on the list. When people and their friends and family members follow all of these tips, they are far less likely to be scammed. If you have been scammed, be sure to contact your local bank to deactivate your account. Furthermore, make sure to contact the FTC and the National Federal Information Center for further assistance.

So, if you feel you may be targeted by a scam, make sure you utilize all resources to protect yourself. As for the Blocker family, they are left to wonder if they can pay for their son's education and would like to see McClees brought to justice for stealing their money and for putting them into such a predicament. If they had been more aware of the warning signs, their situation could have been averted. Take specific measures to protect yourself. Don't believe offers that sound too good to be true. Get to know who you are speaking with and the organization they claim to represent. Be wary of sharing personal information with others over the phone or Internet. Don't open your door to strangers. Don't take calls from telemarketers. Aim to make sure that you don't end up like the Blocker family, which is now trying to raise money online for their son's education. They say a fool and his money are soon parted, so don't be that fool.

Scam Tips and Advice for College Students and Parents | Helen Okobokekeimei (http://www.huffingtonpost.com/helen-okobokekeimei/scam-tips-and-advice_b_3788539.html)

ribshaw

08-21-2013, 08:52 PM

MEMPHIS, TN -

(WMC-TV) - A scam artist is in jail after devising an elaborate scheme, even appearing on TV as an investment "expert."

33-year-old Casey Charles of Baltimore, MD, pleaded guilty to mail fraud. According to the U.S. Department of Justice, Charles promised clients, primarily seniors, to help them make safe retirement investments.

Instead, he kept their money for his personal use.

"I felt guilty. I felt ashamed," said 'Barbara,' one of Charles's victims. Prosecutors said she lost more than $90,000 in Charles's scheme. It included Charles appearing in his own public-access TV investment advice show, and it netted a total of $900,000 from 22 victims.
"We received a mass mailing postcard in the mail from (Charles), who wanted to know if we were happy with our retirement plan," she said.

She said her sick husband met with Charles to discuss shifting his retirement money to the scam investment, promising higher rates of return.

"This was a time when stocks were down and most people were unhappy with what they had, so he just wanted to see what someone else might suggest," she said.

They invested with Charles, then her husband died.

It wasn't long before postal inspectors learned the truth about the investments.

"He never made any investments on behalf of the investors," said U.S. Postal Inspector Frank Schissler. "He just used their money for his own personal expenses."

Always research the credentials of any financial advisor with your state financial regulator and with the Better Business Bureau. The bureau partners with the Financial Industry Regulatory Authority to provide consumers an online resource for checking financial advisors: http://www.bbb.org/smart-investing/.

Andy's Got Your Back on financial advisor fraud - Action News 5 - Memphis, Tennessee (http://www.wmctv.com/story/22960483/andys-got-your-back-on-financial-adviser-fraud)

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Family Angry After Discovering Scam
He’s also angry after learning the life insurance policy she paid into for more than 15 years doesn’t seem to exist.

“I really believe at this point he is preying on a whole lot of older people,” said Boyland about the insurance agent, Jerry Gardner, that picked up payments from his mother’s home. Eric has receipts showing his mother paid Gardner $146 a month, and that her policy is worth at least $5,000, which they wanted to assist in paying for her funeral. But Eric said when he talked with Gardner, all he got was excuses and the run-around. “At that point he got up, stormed out the house, he said, ‘I’ll just be back Monday at the funeral home,’” said Eric.

On Wednesday News Channel 3 called Gardner, who hung up on us.

We were also there when he called a family member with a threat.

“So there is no sense in me trying to give them $5,000 if Channel 3 still going to talk about it,” said Gardner.

We checked and Gardner doesn’t have a license in Tennessee. We called the three companies on the paperwork. Two didn’t have a record of him.

Boyland’s family has yet to receive any money and they don’t think they will. They’ve called MPD to report the crime. And now Eric is warning others who might’ve trusted Gardner.

“I would say look into it today, don’t wait until tomorrow.”

If you think you’ve been scammed by Gardner, email Candace.mccowan@wreg.com.

Family Angry After Discovering Scam | WREG.com (http://wreg.com/2013/08/21/family-angry-after-discovering-scam/)

ribshaw

08-22-2013, 08:30 PM

Pretty good video attached to the link as well.

Ephren Taylor stepped up to the pulpit with the ease of preacher's son, taking the microphone at the New Birth Baptist Church in Atlanta, where the powerful pastor Eddie Long was introducing him to the Sunday morning crowd.

"Everything he says is based on the word of God," Long pledged to the members of his megachurch. But Taylor wasn't a visiting minister.

He was a financial adviser, one who claimed to have made his first million in his 20s. And he promised he could do the same for his fellow Christians.

"We're going to show you how to get wealth and use it for the building of his kingdom," Taylor shouted to the congregation one morning in 2009. It was all part of what he called his "Building Wealth Tour," which crisscrossed the country touting self-improvement, followed-up with private meetings with interested investors.

Some congregants from some of the most prominent mega-churches in the country, including New Birth Baptist Church and Joel Osteen's Lakewood Church in Texas, turned over their life savings to Taylor hoping to do good while doing well.

But the Securities and Exchange Commission said Taylor was actually peddling a Ponzi scheme that "swindled over $11 million, primarily from African-American churchgoers." Earlier this year, the agency entered a judgment against Taylor, ordering him to pay more than $14 million, which included money owed to investors and interest and fees.

Taylor, 31, first gained national attention with a rags-to-riches story of growing up dirt poor in Blackwater, Miss., before developing a video game that he said turned him into a teenage millionaire.

In a 2007 interview with ABC News, when asked how much he was worth, Taylor ventured what he said was a guess.

"Ballpark? Maybe $20 million on a bad day," he said.

His personal history, coupled with what he claimed was a philosophy of "socially conscious investing," made him popular with church congregations.

"He quoted scriptures," said Lillian Wells, who met privately with Taylor in 2009 after hearing him speak at New Birth.

Wells said Taylor convinced her to invest her entire life savings in a North Carolina-based real estate venture, which he claimed was turning around homes in inner cities. In exchange, she was promised a 20 percent return on her money.

But, Wells said, when she wanted to recoup her initial investment, Taylor disappeared.

"I couldn't get a hold of anybody," Wells said. "You just can't get them. That's it. You just couldn't get anybody."

Wells said she was forced to file for bankruptcy last September. She said she's not sure if she will ever get her money back, but she wants to see Taylor held accountable.

"We're suffering because of what he did. It needs to be stopped," she said.

Lisa Conway became suspicious of Taylor after she went to work for him in 2010. At first, she was excited to sell another type of investment City Capital was pitching, but soon she said she began to suspect the business was not on the up and up.

"I wanted to believe the answers were legit when we had the meetings," she said. But "I would see things that weren't appropriate."

Conway said she started to think that the money coming in was lining Taylor's pockets, and according to government officials, she was right. The SEC claimed Taylor spent his investors' money on his car payments, credit card bills and rent on a New York City apartment.

The SEC also alleged that he doled out cash to pay for studio time for the musical career of his wife, Meshelle, with the money that came pouring in. The couple even made a splashy music video starring Meshelle Taylor draped in white fur and diamonds. The name of the song? "Billionaire."

Conway said investors soon started suspecting trouble as well, and panicked families began banging down the doors of the North Carolina office where she and Taylor worked.

"They put locks on the doors," after one particularly angry client stormed in.

Taylor started to panic, Conway said, sensing that his house of cards was beginning to tumble.

"You could see him sweating," she said. "You could see him coming in and trying to save the day or the moment that we're in it, but it just looked shady."

As the SEC complaint alleges, "simply, City Capital could not pay its bills."

"Any investor who resisted was subjected to an endless cycle of unreturned phone calls and emails [and] empty promises of imminent action," reads the complaint. "To the extent investors survived this gauntlet to still insist on repayment, any funds they received invariably came from new investor money."

In April 2012, ABC News heard from an attorney representing Taylor, who said that Taylor is not in hiding, but has stayed out of the spotlight because of concerns for his safety. He continued that Taylor also unequivocally denies that he looted investor proceeds to fund an extravagant lifestyle.

In Texas, Gary and Anita Dorio first met Taylor in Joel Osteen's Lakewood Church, and gave Taylor $1.3 million, their life savings and her mother's retirement. And for about a year, they say it seemed like a good deal. At the beginning, Taylor was sending them monthly checks for $11,000.

"He asked us, you know, 'What do you need? Give me a figure,' and he made it happen," said Gary Dorio.

The Dorios said the paperwork Taylor provided was very convincing. They thought they were investing in an inner city laundromat, a juice bar and a gas station.

"We actually got pictures of the businesses that they were operating," said Gary Dorio. "We called, and they answered the phone and they said who they were."

But ultimately, they discovered that many of the businesses they thought they were investing in never even existed. Lawyer Cathy Lerman said hundreds of investors have told her the same story.

"I cannot tell you how many people have said to me, I thought I was the only one. And my family was so angry with me. I took our life savings and ruined it," she said.

In the end, the Dorios did walk away with a rental property in Cleveland, but it came with a catch: A $67,000 bill for back taxes on the property. The head office of the businesses Taylor listed in their documents was nothing more than a post office box inside a UPS store in Tennessee.

"Don't be overcome by evil -- by evil. But overcome evil with good," said Anita Dorio, quoting a Biblical passage.

While the Dorios said they are still devout Christians, they have left Lakewood Church, the house of famous televangelist Joel Osteen, who, like many other pastors who let Taylor speak at their churches, preaches what's known as the "prosperity" gospel.

Anita Dorio acknowledged that the church was careful not to explicitly endorse Taylor.

"Before the seminar began, a staff member did make the announcement, 'We're not endorsing this person. We're not telling you to invest with him. We're just here to listen to what he has to say.'"

Lakewood Church told ABC News they opened their doors to Taylor to speak on the subject of "Biblical financial principals," but "when he began to promote his services as a financial advisor," he "was stopped from doing so."

The Dorios said while they don't really want to blame church leadership and said they did warn them about Taylor after the alleged fraud was discovered. Anita Dorio said the response she received from the church was, "'Oh Anita, how could you?' Like I should have known better."

At New Birth Baptist Church in Atlanta, Lillian Wells said she didn't get much further when she spoke to her pastor, Bishop Eddie Long. He came in and said, 'The church ain't got no money," she said.

In 2011, Long released a video pleading with Taylor to return the money.

The church told ABC News, "They do continue to hope the responsible parties will restore the funds they took from congregants at New Birth and churches around the country."

Gary and Anita Dorio say they have forgiven Taylor and place their hopes for justice in God's hands.

"It's not the easiest thing to do, but we live by what the word of god says," said Gary Dorio. "And we have to forgive Ephren. We have come to a place where we've forgiven him. We pray for him, his family."

So where is Ephren Taylor exactly? ABC's "The Lookout" received a tip to head over to Lenexa, Kan., specifically a shop called, Panacea Massage, to talk with Ephren Taylor and his wife.

After what they say were a string of bizarre incidents, workers at Panacea Massage became suspicious of one of their workers, a woman who called herself "Liz Taylor." Salon workers said they noticed her husband would arrive with her at work almost daily. And they said the couple would talk about their lost fortune.

Once the salon installed security cameras for added protection, they said the husband became suspicious. Workers said he said, "Be careful what you say, 'cause there's audio and there's night vision."

After this incident, workers looked at "Liz" Taylor's license and noticed the name on her identification was Meshelle Taylor.

After about 30 minutes of Googling her name, salon owner Pam Dinges said, "a whole can of worms opened up," and "the whole multi-million dollar scam thing all surfaced on the Internet. That's how it all came together. ... It was like, 'Oh my God.'"

When the salon workers made the connection that Meshelle was Ephren Taylor's wife, they emailed one ABC's sources, who called "The Lookout."

"The Lookout" team traveled to Kansas and found Ephren and Meshelle Taylor at an apartment complex, but they would not answer the team's questions. Ephren Taylor told "The Lookout," at one point, on camera, "I have no idea."

When "The Lookout" requested a formal interview with Ephren Taylor, his attorney told the team, "I have no comment on the SEC charges pending against Mr. Taylor. In addition, neither Mr. Taylor nor any members of his family, including his wife, wish to comment on this matter at this juncture."

Ephren Taylor Accused of $11 Million Christian Ponzi Scheme by SEC - ABC News (http://abcnews.go.com/US/ephren-taylor-accused-11-million-christian-ponzi-scheme/story?id=20030745&singlePage=true)

ribshaw

08-22-2013, 08:51 PM

Los Angeles, Aug 22 (IANS) Actor Ashton Kutcher became the latest victim of cyber scam as he too fell in the prey of cyber scammers Luis Flores and Kyah Green.

Socialites Kris Jenner and Kim Kardashian were recently became the victim of cyber scam.

According to a document received May 30, American Express received two calls about Kutcher's account. In the first, the caller claimed to be the Hollywood star himself, with the impostor providing his personal information as well as answers to his security questions to gain access to the account, reports radaronline.com

The caller then requested that the primary account phone number be changed to Flores' number. They also requested that an emergency replacement card be sent to an address in Oak Park, Illinois.

In the second call, the caller requested to change Kutcher's social security number to Flores'.

This method was nearly identical to the method that the duo used to scam Kris out of more than $70,000.

The duo have yet to be arraigned on charges of wire fraud.

Ashton Kutcher victim of cyber scam (http://in.news.yahoo.com/ashton-kutcher-victim-cyber-scam-023003395.html)

5658
5659

ribshaw

08-23-2013, 10:10 PM

Jetblue scam hits Facebook, again.

5669

ribshaw

08-23-2013, 10:16 PM

Man targeted fellow Haitians in $30-million Ponzi scheme, prosecutors say
George Louis Theodule ran scam that claimed to double investors' money, indictment alleges

By Brett Clarkson, Sun Sentinel

6:38 p.m. EDT, August 23, 2013

To thousands of his fellow Haitians in South Florida and across the U.S., George Louis Theodule portrayed himself as a savvy financier who could double their investments.

In reality, federal prosecutors say, he was a scam artist who enriched himself and his inner circle from a Ponzi scheme that took in $30 million.

Now, almost five years after the U.S. Securities and Exchange Commission filed a civil lawsuit to stop Theodule's "ongoing fraud," he faces federal criminal charges.

The counts include 36 charges of wire fraud, one count of securities fraud and three counts of money laundering, according to a grand jury indictment unsealed in the West Palm Beach federal courthouse on Friday.

If convicted of all the charges, Theodule faces a maximum of 760 years behind bars, the court documents say.

The July 2 indictment tells of a man who concocted corporate entities and so-called investment clubs as a foundation for the lies he peddled to thousands of victims between July 2007 and December 2008, prosecutors allege.

According to the indictment, Theodule formed and "caused others to form" the investment clubs in South Florida and in other parts of the country to collect money from investors in the Haitian community. He would claim to be able to double their money every 30 to 90 days.

"In reality, the defendant was conducting a Ponzi scheme," the indictment alleges.

A Ponzi scheme refers to the fraudulent practice of soliciting investors' money, then paying returns to them with newer investors' money instead of actual earnings, as seen in the Bernie Madoff and Scott Rothstein cases.

Among other falsehoods, prosecutors said, Theodule claimed to have 17 years of successful stock trading experience. The truth was he made little money from investing and didn't report any income between 2000 and 2007, the indictment said.

He also never disclosed that millions of dollars put up by the investors ended up lining the pockets of him and those close to him, prosecutors allege.

Jonathan E. Perlman, the Miami-based court-appointed receiver from the federal civil suit, said the money taken in by Theodule is about $60 million. He said efforts to win compensation for investors are ongoing.

"Virtually 100 percent of the money, he spent," Perlman said. "He blew it out in every single way possible: lavish car collections, motorcycles, rings, Vegas trips...in every way imaginable."

Theodule, who moved from Wellington to Georgia in 2008, was ordered by a federal judge to pay $5.5 million in March 2010 in connection with the SEC lawsuit, according to court records.

Man targeted Haitians in $30-million Ponzi scheme, prosecutors say - South Florida Sun-Sentinel.com (http://www.sun-sentinel.com/news/palm-beach/fl-haitian-ponzi-schemer-charges-20130823,0,1571711.story)

ribshaw

08-23-2013, 10:22 PM

Two brothers employed a Ponzi scheme to cheat the widow of a longtime Santa Monica judge out of more than $1.2 million in real estate investments she made to help her and her late husband financially after his retirement, a lawyer for the plaintiff told a jury today.

In his opening statement to a Los Angeles Superior Court jury, Ruth Light's attorney said his 81-year-old client relied on Charles and Saleh Hasbun to make safe investments for the woman and her spouse, Superior Court Judge Leslie Light, beginning in about 2000.

The judge retired in 2002 after 33 years on the bench and died in March 2010.

“She accepted some of the risks inherent in investments,” plaintiff's attorney Malcolm McNeil said. “But she did not assume the risk they would be dishonest, charge exorbitant fees and engage in self-dealing.”

Greta Curtis, an attorney for the brothers, did not make an opening statement. However, their previous attorney, Henry Guzman, stated in a trial brief that the siblings disclosed the risks of her investments to Light; that only a handful of loans did not turn out as she anticipated; and that her income was affected by “the real estate market crash and the recession.”

According to McNeil, the Hasbuns used one company, Baypoint Mortgage Inc.,to sell and solicit loans. Another of their entities, Valley Trust Deed Services, serviced the loans, McNeil said.

Light made about 30 to 40 loan transactions with the Hasbuns over the course of about a decade, McNeil said. They involved first trust deeds and construction lending, he said.

“She was repeatedly assured not to worry and that all loan-to-value rations were adequate,” McNeil said.

In one transaction, the brothers said they would use a $55,000 investment by Light to help a borrower, Joe Bravo, perform improvements at a Bellflower home, according to McNeil.But the Hasbuns distributed the funds to Bravo without ensuring that any of the construction took place, McNeil alleges in court papers.

Although Charles Hasbun assured her that construction was nearly complete, the improvements were actually never made, according to McNeil.

The Hasbuns also granted subordinate deeds of trust to borrowers on loans in which Light and other clients had invested, McNeil said. When borrowers defaulted, the brothers foreclosed on the subordinate deeds rather than the first trust deeds, negatively affecting affecting the investments of clients such as Light, McNeil said.

The state Department of Real Estate conducted an audit and eventually stripped Baypoint and Valley Trust Deeds of their licenses, McNeil told jurors.

The Hasbuns' broker, Gregory Abeson, surrendered his license, McNeil said.

A month after Light sued the brothers and their companies in December 2011,the Hasbuns began using the services of another broker, McNeil said. In addition, some assets of the companies were transferred via checks to Charles Hasbun's two daughters, McNeil said.

Light, the trial's first witness, said she typically invested about $20,000 in each loan transaction with the Hasbuns.

“I couldn't afford to buy the whole trust deed,” she said, telling jurors that she had expected interest returns on her investments of 9 to 12 percent.

Light said she graduated from Dorsey High School in 1950 and did not attain any further education other than a real estate sales license. She said she has lived in Venice for 33 years and that her husband handled criminal cases while on the Santa Monica bench.

Attorney: Brothers Used Ponzi Scheme to Cheat Santa Monica Judge (http://culvercity.patch.com/groups/around-town/p/attorney-brothers-used-ponzi-scheme-to-cheat-santa-monica-judges-widow)

ribshaw

08-24-2013, 10:07 AM

Instagram PC app is an 'insta-SCAM', Symantec warns
August 23, 2013 9:05pm

Users of desktop and laptop computers should steer clear of a supposed app that can them run popular photo-sharing phone app Instagram on their machines, a security vendor said.

Symantec said this version of Instagram is nothing more than "Instascam" as it will only lead users to another survey scam.

"This application claims to run Instagram in an emulator, so that PC users can access the service without a phone," Symantec's Satnam Narang said in a blog post.

He said some cases showed the so-called "Instagram for PC" app was promoted via an in-stream advertisement on Facebook.

Narang noted the Facebook-acquired Instagram is so popular it is a frequent target for unscrupulous parties behind spams and scams.

When a user tries to download the app, he or she will get a large RAR archive with several dynamic link library (.dll) files.

Attempting to run the app for the first time will produce a fake error message that a .dll file is missing.

"When a user tries to download the missing .dll file, they’re asked to fill out a survey," Narang said.

A second variation of the scam involves downloading the app then "activating" Instagram.

"Clicking on 'Click here to activate' results in a new pop-up window that again asks the user to 'complete a quick offer or survey' in order to activate Instagram," Narang said.

In both cases, Narang said the apps were just another vehicle for scammers to convince users to fill out surveys, "so they earn money through shady affiliate programs."

He said Symantec products now detect these files as Downloader.MisleadApp.

Narang also said PC user can always access Instagram via the browser, at Instagram (http://www.instagram.com).

On the other hand, he said this should remind users to be wary of attempts by scammers to convince them to provide their login details, install apps or copy and paste code into Web pages.

"Do not click on suspicious links and report any suspicious links using the reporting functionality within Facebook and other social networks. These are all tactics that have been used time and time again because they work," he said. — TJD, GMA News

Instagram PC app is an 'insta-SCAM', Symantec warns | SciTech | GMA News Online (http://www.gmanetwork.com/news/story/323340/scitech/technology/instagram-pc-app-is-an-insta-scam-symantec-warns)

ribshaw

08-24-2013, 10:14 AM

Alleged scam artist also cheated NBA players, witness says

NBA basketball player Mike Miller lost money he had invested with Haider Zafar, a witness testified in a bond hearing in federal court. Zafar is charged with defrauding a Washington, D.C.-area businessman in an unrelated $10 million real-estate investment.

A former Dublin resident charged with swindling a businessman out of $10 million in a real-estate scheme also ripped off Miami Heat basketball players, a witness said yesterday in federal court in Columbus.

That testimony against Haider Zafar helped persuade U.S. District Judge Edmund A. Sargus to keep Zafar in jail as he awaits trial on the swindling scheme.

Sargus ruled that Zafar, 35, now of southern Florida, would not be released on bond because he is a flight risk and a danger to the community.

“The longer the potential sentence, the greater the risk of flight,” Sargus said.

Punishment for each of the 135 counts against Zafar ranges from one to 20 years in prison.

He has been in custody since his May 25 arrest by Internal Revenue Service agents at Port Columbus. When he was arrested, Zafar had a Louis Vuitton backpack with more than $10,000 in cash, a handgun and 40 bullets. He is originally from Pakistan and also had an expired Pakistani passport.

Assistant U.S. Attorney Dale Williams put international-investment attorney Andrew Fine on the stand during the detention hearing to detail an investment scheme Zafar operated in Florida.

Fine said some Miami Heat players, including former forward Mike Miller, and other Florida residents had invested $8 million with Zafar. When Fine, on behalf of some of those investors, questioned Zafar about where the money was, Zafar told him, “They can’t touch me in Pakistan.”

“He’s fantastically good at separating people from their money,” Fine said after the hearing.

The real-estate scheme being prosecuted in Columbus involves Washington, D.C.-area businessman Patwinder Sidhu, who invested $10 million with Zafar from 2008 to 2010.

The complaint says Zafar convinced Sidhu that he could make millions buying land in Pakistan. Zafar claimed that his uncle was Pakistan’s defense minister and that he knew the Pakistani government planned to buy up numerous land parcels.

Zafar told Sidhu he would buy the land first and then sell it to the government at a profit of $90 million.

Instead, the indictment says, Zafar spent Sidhu’s $10 million on jewels and on three Mercedes-Benz automobiles, an Aston-Martin convertible and a roadster, a Maserati Grand Turismo, a Lamborghini LP560 Spyder and a Rolls Royce Phantom convertible.

Zafar was indicted in June on 118 counts of wire fraud, 13 counts of money laundering, one count of filing a false income-tax return and three counts of failing to file income-tax returns.

Alleged scam artist also cheated NBA players, witness says | The Columbus Dispatch (http://www.dispatch.com/content/stories/public/2013/08/22/zafar_rehearing.html)

ribshaw

08-24-2013, 10:22 AM

Had I authorized those transactions, she asked.

Seriously?

When I asked the rep why a Southwest Visa card had triggered a fraud alert on a Southwest Airlines flight, she noted that the transaction posted from Dallas.

I'd just been in Albuquerque for 13 days. Dallas ain't that far away.

Granted, my surfing session wasn't interrupted by a declined card. But it seemed a new frontier in financial chicanery when a bank suspects fraud on one of its branded partners' own properties.

Turns out, it's more of a reflection of how far banks have to go to combat it, experts say.

Overall, all types of identity fraud increased by more than 5 percent last year, affecting one in 20 consumers, according to Javelin Strategy & Research, with $21 billion stolen.

With credit card fraud, banks are on the hook. Federal law limits consumer liability on any fraudulent credit-card transaction to $50, though most credit card issuers won't hold you liable for anything because they want you as a customer. That liability leaves them aggressively trying to combat crooks.

"If the card is used fraudulently -- and it's happened to me, so I can speak from experience -- it's gratifying to know there are processes to freeze the card," said U.S. Bank spokeswoman Teri Charest.

Maybe so. But security industry insiders consider my experience a false positive. Perhaps you encountered one on your summer vacation. It can lead to a call like mine or, more inconveniently, an account block or card decline. Those don't work out well 3,000 or more miles or more from home.

Firms who provide anti-fraud security software for banks say false positives are a big problem. They threaten to drive customers to other banks. The reduce card-swipe fees.

But data on its frequency is hard to come by because banks try to keep it secret. Mike Buhrmann, CEO of Bellevue, Wash.-based Finsphere, a security software provider, claims on his blog that in some cases, banks can generate 40 false positives for each instance of actual fraud it catches.

It's led banks to keep statistics on how many customers they've turned off, said Ellen Joyner, principal of global product marketing solutions for SAS Security Intelligence in North Carolina.

"Customers definitely have a right to be annoyed because it means they aren't doing all they're doing to avoid this," she said.

In the past, anti-fraud software used rules to catch card fraud, she said. Software would trigger alerts if your card logged more than two transactions in five minutes, for instance, or if a magnetic stripe transaction follow an internet transaction, experts say. When a bank discovered a new fraud scheme, programmers wrote a rule, or computer code, to flag similar transactions or situations.

It was relatively cheap and easy to put in place. Trouble is, fraudsters change tactics as banks catch on.

SAS uses computerized customer profiles and behavior models in real time to try to detect fraud. SAS also tries to replicate your behavior on other bank cards, even though its customer might lack access to competitors' databases.

"We have a dynamic profile of you as your customer and how you behave and how you act," Joyner said. "There's a lot of additional information about how you currently are behaving and how you're behaving in the past."

But the new methods are getting adopted only slowly by an industry still smarting financially from the deep economic crisis of 2008-09.

"There are a lot of Top 10, Top 20 banks that are just now in the process of re-evaluating their technologies for these very reasons," Joyner said.

It's not hard to believe, based on the errors big banks continue to commit while servicing mortgage loans.

For now, you'll just have to live with occasional inconveniences. Here's what you can do to minimize them, beyond traveling with multiple cards:

Set up text or e-mail alerts. Chase spokesman Steve O'Halloran said it offers two-way text message fraud alerts, that allow you to learn of and verify a potentially fraudulent charge "within moments." Too bad Chase's anti-fraud rep didn't suggest that option to me. Javelin says only 16 percent of financial institutions offer such alerts.

Carry a prepaid card. I don't usually recommended prepaid cards, but it is a fallback.

Warn your bank of faraway trips. It'll feel as if too-big-too-fail is also too-big-not-to-know-all. But a phone call might be especially helpful if your bank or credit union is smaller.

Credit card blocked? Get used to false positive fraud alerts for now | OregonLive.com (http://www.oregonlive.com/finance/index.ssf/2013/08/what_to_do_with_that_false_pos.html)

ribshaw

08-24-2013, 10:31 AM

Just a personal opinion, but to me it makes sense to have some money tucked away that is very hard for anyone to get their hands on. Especially as people get older the become more and more vulnerable to predators. And when the money is gone, it is usually gone.

Age-old question: Do I need a trust?

By Julie Landry Laviolette
Special to the Miami Herald

It’s not only heiresses and socialites who can benefit from a trust. Used in the right circumstances, a trust can be a helpful estate planning tool to pass assets to your children, take care of your affairs if you are incapacitated, or dole out your wealth — whatever its size — in a certain way.

“The first objection we always get is ‘I’m not rich, I don’t need that,’ ” said Debra Gauthier, a trust officer and certified financial planner at Wells Fargo Private Bank in Miami.

“Most people don’t understand estate planning, until their parents die and they see how complicated it can be,” she said. “It is necessary to do some planning before that happens.”

Trusts can be part of a simple estate plan that includes a will, power of attorney and living will.

But people don’t like to think about mortality, Gauthier said, and they don’t know the benefits of trusts, which can be complex.

“They really don’t understand that it makes the administration of your assets simpler — to transition wealth to your family, and to take care of you if you become incapacitated,” she said.

Deciding whether you need a trust or not can be confusing. What is a trust? It is a legal entity that allows you to put conditions on how your assets are distributed after you die. It can help minimize estate taxes and avoid probate. It can also be used to protect an heir’s assets from creditors.

But don’t let fear push you into a trust, said Bruce Stone, an estate attorney with Goldman, Felcoski & Stone in Coral Gables. “Trusts can do some things for you, but don’t get sold something that you don’t need.”

Stone said most don’t have to worry about estate taxes, which kick in at $5.25 million. Since that’s per individual, a married couple has more than a $10 million exemption.

“Essentially, the estate tax has been repealed,” for most, said Stone, also an adjunct professor at the University of Miami School of Law.

There are two main types of trusts: a living trust, created when you are living, and a testamentary trust, which goes into effect after your death.

The person who creates the trust is called a “grantor,” “donor” or “settlor.” The grantor chooses a “trustee” to manage the trust, and the “beneficiary” who will receive the assets. The grantor, trustee and beneficiary can be the same person. The trustee also can be a friend, relative, financial institution or financial advisor — anyone you trust with your money.

Living trusts can be revocable, which means you keep control of assets in the trust, and can change the terms of the trust at any time. This is the most common type of trust. In an irrevocable trust, you typically cannot make any changes to the trust, but the assets within it are not subject to estate taxes. There are also many specialized trusts.

Barry Nelson, an attorney with Nelson & Nelson in North Miami Beach, said he sets up a revocable living trust for all of his clients who want an estate plan. Then clients can transfer assets to them as needed. Assets in a trust avoid probate, a court process that can drag on as creditors are contacted and paid before beneficiaries get their money.

Trusts also are private, unlike wills, he said. “The probate avoidance, secrecy, reduced legal fees (by avoiding probate) and expedited process — those aspects really relate to everybody,” he said.

There are downsides to trusts, Stone said. The “trustee,” or person managing the trust, has to follow certain legal rules. A separate tax return has to be filed for certain types of trusts. And to create a trust, you have to look into the future and answer hard questions: What if the trustee is incompetent? What if the trustee dies?

Here are four groups that may benefit from a trust:

A couple with young children

“When a couple has their first child, they often stop and think, ‘What would happen if both of us die?’ ” Stone said.

Most people can look back at themselves at 18, and realize it’s not an age where you’re responsible enough to handle a chunk of money, he said.

“So you look in the crystal ball and decide, when are the kids mature enough to take these assets without further supervision?” Stone said.

If you don’t want your kids to get their hands on everything at 18, you can use a trust to divvy out assets over time. If you don’t have a trust, the assets would go into a guardianship, “which is the last place you want them to be, especially in South Florida, because of the incredible bureaucracy and expense,” Stone said.

A couple may decide to give half the assets at age 25, and half at age 30. Or give distributions at age 25, 30 and 35. You can decide on the ages and the rules, Stone said.

“The idea is protecting assets until the kids are old enough to handle them on their own,” he said.

Gauthier said the child also can be appointed as a co-trustee, perhaps around 20 or 21, to help take on the responsibility of managing the money, investing and saving.

“That can be empowering and help them become more financially responsible,” she said.

Nelson said he created trusts that would dole out half of his kids’ inheritance at ages 30, 35 and 40. The other half would stay put as a safety net, to be used only as needed. “It’s a trust fund to pass from generation to generation,” he said. “I call it my ‘Salvation Army avoidance fund,’ so nobody ends up penniless.”

The goal is “not too much, too soon,” which takes away the incentive for kids to succeed on their own, Nelson said.

A single person

If you want someone to handle your affairs if you are incapacitated and are unable to do so, a power of attorney is a simple way to accomplish that, Stone said. You don’t need a trust.

“A power of attorney gives someone the ability to sign your name to anything, so you have to trust that person,” he said. “But that power stops when you die.”

However, if you want someone to take over your affairs, plus a way to designate where your assets go when you die, a trust can do both, Stone said.

Appointing a successor trustee, someone to take over your duties as trustee if you become incapacitated, also avoids guardianship, where the courts step in to administer your affairs, Nelson said.

Think carefully about who you name as a trustee, and have a back-up, Gauthier said. One tactic is to name a financial institution and an individual as co-trustees, so you have the financial management expertise and the human touch. If a financial institution is already handling your investments and charging a 1 percent annual fee, becoming your trustee would likely raise that fee to 1.25 to 1.5 percent, Gauthier said.

A couple with grown children

Say you have older, responsible kids. Why would you need a trust? It may protect your kids’ inheritance in the future, Stone said. While a revocable living trust you set up for yourself is not protected from creditors, under Florida law, assets that you pass to heirs in a trust are protected.

For example, if your son is a doctor who gets sued for malpractice, an inheritance in a trust would be protected. If your daughter goes into business and defaults on loans, creditors would not be able to touch the assets in a trust.

“Most people don’t live in fear of creditors,” Stone said. “But a trust can protect any child from potential creditor concerns.”

Another issue is children in bad marriages. If a child divorces, a trust can protect assets from a greedy ex-spouse, he said.

Families with second marriages

If a husband and wife have children from previous marriages, a trust can direct who gets assets if one dies.

For example, if a couple doesn’t have a trust, and one dies, everything in the couple’s joint accounts goes to the surviving spouse. That’s the case even if the deceased person intended to leave money to children from a previous marriage.

“We see that all of the time,” Gauthier said. “The titling of accounts is one of the most important parts of planning.”

Other situations

A family with a special needs child “needs a trust to take care of that family member, and to protect their government assistance,” Gauthier said. A family member who is not good with money also can benefit from a trust, to have assets portioned out to them over time.

Can you DIY?

“In some cases it can work, but it’s easy to mess it up,” Stone said. He remembers the owner of a huge resort used a $99 will and trust kit he got in the mail to manage his $5 million estate. The estate racked up $500,000 in legal bills trying to fix the mistakes.

Look for an estate planning attorney, he said.

“If you’re scared of lawyers, go to a good financial planner or a trust planner at a bank,” he said, but be careful that the person you go to does not use the process to get their foot in the door to sell you other products that you don’t need.

“Sometimes it’s hard to distinguish whether someone is trying to sell a product or give you advice,” Gauthier said. “A product pusher sometimes sounds like a product planner.”

An estate plan that includes a will, trust, power of attorney and living will cost $1,500 to $3,000, the experts said. The price could rise to about $5,000 with the addition of specialized trusts.

If you open a trust, read it or have your attorney or financial planner summarize it to make sure it does what you think it does. Then, you have to retitle your assets to go into the trust. Revisit your plan every few years, because you’re financially active all of the time, Gauthier said.

“If you do get a trust, don’t go home and put it in a drawer or safety deposit box” and forget about it, she said.

Read more here: Age-old question: Do I need a trust? - Personal Finance - MiamiHerald.com (http://www.miamiherald.com/2013/08/23/v-fullstory/3582130/age-old-question-do-i-need-a-trust.html#storylink=cpy)

American College of Trust and Estate Council: American College of Trust and Estate Counsel | Home (http://www.actec.org), a nonprofit association with a free directory of trust and estate attorneys.

American Academy of Estate Planning Attorneys: American Academy of Estate Planning Attorneys - AAEPA (http://www.aaepa.com), free directory of attorneys.

National Association of Estate Planners & Councils: National Association Of Estate Planners & Councils - NAEPC (http://www.naepc.org), estate planning information and resources.

USA.gov: Trusts | USA.gov (http://www.usa.gov/topics/money/personal-finance/trusts.shtml), the government’s official site has easy-to-understand info about trusts and other estate planning tools.

ribshaw

08-25-2013, 12:44 PM

This may prove a useful link, but not scam related. I woke up from my nap to have the girlfriend tell me there had been a recall on Iams dog and cat food. So I checked and found out the recall was on the 15th, almost a full bag of food ago for my guys. Fortunately, the risks were minimal and the bags we had were not affected.

But after some poking I found this that seems to have updated information in a useful format for FDA recalls. There were a few other sites I will list, but not very user friendly.

Recalls, Market Withdrawals, & Safety Alerts (http://www.fda.gov/Safety/Recalls/default.htm)

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This site has email notifications which may be the way to go as the format sucks.

Recent Recalls (http://www.recalls.gov/recent.html)

ribshaw

08-25-2013, 01:12 PM

Credit Card Fraud, an Introduction

During the last few years there has been a massive increase in online fraud globally. Organizations specialize in spam and other illegal marketing techniques, like Phishing and Hacking, that take every opportunity to make a few pennies. Even though their net income per person is miniscule, it becomes significant when multiplied by hundreds of thousands or even millions. Added to this threat are amateur fraud artists around the world who troll the Internet for credit card and financial information to use for fraudulent purposes. Finally, identity thieves are reaping high rewards at the expense of both the target and the online retailer.

Credit card fraud on the Internet has reached gigantic proportions, and merchants providing goods and services over the net suffer tremendous losses through chargebacks from the financial institutions who serve the targeted credit card holders. Merchants who offer a product or service online have to take the risk of losing the cost of the product sold online, plus the added cost of chargeback fees, and they even face the possibility of having their merchant account terminated by the financial institutions serving them.

While this cost can ultimately be passed on to the consumer, the development of this environment hurts business as a whole, and particularly hurts the small business owner. The Cybersource® Online Fraud Report showed Internet fraud had cost merchants $2.6 billion, or 1.8% of total online revenues, in 2004.

This document was derived from a whitepaper by the Web Services Group, FraudLabs * who provide services to Merchants to help minimise fraud and chargebacks but the information here is generally applicable to all who do business (buying or selling) on the Internet.
10 Measures to Reduce Credit Card Fraud for Internet Merchants

Geolocation by IP address
In the world of e-commerce, knowing the online buyers geographic information can help to prevent fraud. Geolocation technology provides the absolute geographic location by IP address of the computer from which the order is made in real-time e-commerce transactions, which can identify locations where the probability of fraud is the highest.

Geolocation by IP address can identify the user's exact location or calculate the distance between billing address of online buyers and actual location of persons entering the orders. As a result, it allows the merchants to apply additional authentication measures or identification for those transactions which show a great difference of distance. As a result, Geolocation technology delivers data that helps merchants determine which transactions to review and which to allow. This creates a beneficial balance between the risk of fraud losses and that of blocking legitimate customers. Legitimate customers will actually welcome legitimate authentication measures, which will protect them from credit card fraud also and keep the costs of doing business on the Internet down, especially if the customer is properly informed and advised by the merchant of these protection measures.
Using a service such as that provided by FraudLabs. can keep the cost of authentication down as you can target the authentication toward the most probably geographic locations for fraud.

Comparison of the IP address country with the billing address country
An IP address is a unique network identifier issued by an Internet Service Provider to a user.s computer every time they are logged on to the Internet. Make sure the IP address country and the billing address country are the same. By using fraud detection web services like FraudLabs., you can detect the IP address country for the customers that are placing the orders. If the customers billing and shipping addresses are in the US, but the person placing the order is logged in from an IP in Russia, this will require closer scrutiny, and will often trigger anti-fraud precautions. Although this situation could be legitimate, but it's probably worth a phone call to the customer's US phone number or other measures to confirm the order and the identity of the credit card user.

Check whether the country is a high risk country
Always require closer inspection for orders that being shipped to an international address. Pay more attention if the card or the shipping address is in an area prone to credit card fraud. According to a ClearCommerce® survey, the top 12 international sources for online fraud are Ukraine, Indonesia, Yugoslavia, Lithuania, Egypt, Romania, Bulgaria, Turkey, Russia, Pakistan, Malaysia, and Israel. The same survey also showed that the 12 countries with the lowest fraud rates are Austria, New Zealand, Taiwan, Norway, Spain, Japan, Switzerland, South Africa, Hong Kong, the UK, France, and Australia. FraudLabs. IP Geolocation service can identify the country of origin for businesses who need this information. While the fact that an order originates or is being delivered to one of the high risk countries is not, in itself, an indication of fraud, nor is the indication that the order originates in a low risk country any guarantee of its legitimacy, the trends and statistics are there, and merchants must use information about the origin and delivery addresses as a guide to how much authentication they should require from customers.

Check whether a free or anonymous e-mail address was used
Be aware that online buyers using free and/or anonymous e-mail providers are virtually untraceable amd have a much higher incidence of fraud compared to 'real' email addresses.
While totally legitimate Individual customers also use free email addresses, almost all fraudsters use free email addresses in order to remain anonymous.
It should be noted that almost all businesses making online purchases will have their own domain names and will use them as the contact email address. The larger the company you are dealing with, the more likely it is that this will be true.

If your customer provides a free email address, it is useful to have the ability to locate them geographically when they place their order, so you will know which orders need further checking for authenticity. If your customer claims to be in Idaho, but the computer he is placing the order from apears to be in Western Africa you should be immediately suspicious. Also keep an eye out for newly registered domain names or domain names that "don't look right" (mis-spelling of the company name or odd domain suffixes) .It is easy and very cheap and anonymous to register a new domain. FraudLabs provides services to detect and warn about ' free email' addresses being used..
Examples of Free/Anonymous Email addresses include: hotmail.com, yahoo.com, gmail.com, zzn.com, msn.com,

Check whether an anonymous proxy server was used to place the order
Anonymous proxy servers allow Internet users to hide their actual IP address. The main purpose using a proxy server is to remain anonymous or to avoid being detected. While well known businesses use this to protect internal networks, fraudsters hide themselves behind anonymous proxy servers.
It is not easy to detect anonymous proxy servers because they appear and disappear from time to time.

Check whether the mailing address is a mailbox or ship-forward service
Fraudsters prefer to stay untraceable but still need to collect physical merchandise. One way is to use a public P.O.Box, a private mailbox, or a drop shipment forwarding address as a temporary point of receiving. Never send merchandise to a public rented mailbox, a P.O. Box (except for those you identify as legitimate major companies by phoning their listed number), or shipping forwarder, because the actual location and identity of the receiver is undetectable. Be wary of shipping to any destination outside your country as the chances of getting them back if the payment fails is immediately far less certain.

Check whether the phone number is valid and located within the correct ZIP code
Often, merchant will discover orders with invalid zip codes or a mismatch between the zip code and area code will produce fraud rates that are significantly higher than usual. They may wish to apply more rigorous fraud prevention standards by verifying the validity of zip code and the area code. In addition, if the phone is identified as a V.O.I.P phone, offered by many services these days, a delay in shipment until the payment clears may be in order, especially for non-times sensitive items.

Compare the credit card issuing bank’s country with the billing address country
Another key point to bear in mind is to check the issuing country and the billing address. Make sure the issuing country and billing address country are the same. This is especially important, because minor banks may not have rigorous identification procedures.

Call the credit card issuing bank to verify the validity of credit card
If online merchants have any suspicions about an order and need to confirm the details of the order, they can call the issuing bank and ask to confirm the general account details. This is to make sure that the card is not stolen. The issuing bank phone number is based on the first 6 digits of credit card number known as the Bank Identification Number (BIN).

Request more identification if in doubt
While consumers value their privacy and require quick web site ordering facilities, it is important to gather sufficient customer identity details during the ordering process. The customers’ name, credit card number and expiry date is not enough. Merchants should call them for verification through phone or request a photo ID to be faxed if they have any doubts.

Every merchant should aware of online credit card fraud, although it is something that can never be completely eliminated, but rather something that must be managed. One of the most important factors in controlling fraud is understanding the customer and implementing security measures that can adapt to the level of risk in each transaction. Applying fraud detection web services such as FraudLabs™ supplies in the order management can greatly reduce credit card fraud. This white paper focuses on preventative methods and procedures that merchants can perform in order to limit credit card fraud.
- See more at: Avoid Credit Card Fraud (http://www.scamdex.com/scam-article/fraud-labs#sthash.PlaqybqC.dpuf)

ribshaw

08-25-2013, 01:21 PM

New scam: Thieves steal pets so they can sell them online

By Jennifer Jarrell

WBNS-10TV Sunday August 25, 2013 9:58 AM

Justin Masterson has no doubt that he’s the victim of a crime that, until recently, he didn’t even know existed.

It’s called “pet flipping” — and area police say they’re keeping an eye out for it.Masterson, a 25-year-old Delaware County resident, said his introduction to the Internet-driven phenomenon came last month, when he returned from work to find that his two pit-bull puppies — Jules and Baby — were missing.

“We went all the way — neighbor to neighbor — throughout the whole road, looking for the dogs,” he said, pointing to a cornfield-lined stretch of N. Old State Road. “We couldn’t find them.”

A week later, Masterson spotted what he was sure was one of the puppies — walking with a man along Rt. 521.

“He put the dog down and let us call it, and the dog came right to us,” Masterson said.

“We put it in the truck and told him about the other dog, and that’s when he said he was watching the dog for his friend who was at work and that his friend did pick up two puppies about a week prior.”

Masterson turned to the Delaware County sheriff’s office, which tracked down the man who had supposedly found the puppies.

That man acknowledged putting the animals up for sale on Craigslist, according to an incident report prepared by the sheriff’s office. He sold one — for $50.

Similar stories are popping up across the country.

Time magazine spotlighted pet flipping in a recent story. Typically, the magazine noted, someone looking to make a quick buck will get a dog — either by stealing it or by posing as the owner of an animal featured in a “pet found” notice — and then sell it through Craigslist.

Earlier this year, a three-month investigation by police in Indianapolis resulted in one arrest and the seizure of four dogs. Police said the subject of the probe had been “flipping” purebred German shepherds, Rottweilers and pit pulls for years.

“It’s unclear how organized and strategic pet thieves and dog flippers are, but in some cases, it appears as if criminals target their prey very carefully,” Time reported. “Often, the dogs that disappear are very valuable and used for breeding."

Like Masterson, Delaware County Dog Warden John King had never heard of pet flipping until this summer.

“It’s definitely something we will have our ears and eyes open to now,” he said.

King said pet owners can discourage flipping by keeping their animals on a leash or in a fenced area whenever the animals are outside. All dogs should have up-to-date licenses, and most, if not all, would benefit from a microchip implant, which enables an animal to be identified even if its collar has been removed.

King said members of the public also need to remember that picking up wandering dogs is his agency’s job — not theirs. And it’s certainly not their place to profit from such animals.

“It would be like finding a wallet or purse and saying, ‘Well, if no one claims it, I’m just going to keep it,’ ” he said.

For Masterson, losing a wallet would have been preferable to losing a pet.

“It’s heartbreaking,” he said.

New scam: Thieves steal pets so they can sell them online | The Columbus Dispatch (http://www.dispatch.com/content/stories/business/2013/08/25/new-scam-thieves-steal-pets-so-they-can-sell-them-online.html)

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ribshaw

08-25-2013, 01:26 PM

Alleged Disney Vacation Scam Cheats Kids Out of More Than $60,000
By Beth Greenfield, Shine Staff | Parenting – Fri, Aug 23, 2013 3:55 PM EDT

Melanie Swoap of Blue Sky Journeys. Photo: FacebookA Disney World dream vacation turned into a financial nightmare for a group of 120 dance students from Tennessee.

More on Shine: Disney World Scheme: Entitled Families Hire Disabled Guide to Bypass Lines, Says Report

Blue Sky Journeys, a travel agency which claims to be Disney-authorized, has been accused of scamming the group out of more than $60,000 by accepting payments and then failing to make the agreed-upon travel arrangements, according to a Fox 17 WZTV report. Earlier this month, agency owner Melanie Swoap and her husband John Swoap were indicted on the charge—of stealing between $60,000 and $250,000, according to Nashville Scene—by a Williamson County grand jury. If convicted, they face eight to 12 years in prison.

More on Yahoo!: Disney World Patron Finds Gun on Ride

“I very rarely hear of an incident like this,” Ricky Brigante of Inside the Magic, a website reporting exclusively on Disney company and theme parks news, told Yahoo! Shine. “In fact, I don't remember ever hearing about such a large dollar amount being scammed like that.”

District Attorney Kim Helper told WZTV that John Swoap also faces charges related to trying to deposit a couple of the dancers' checks twice—first electronically and then in person. Reached by phone at the number for Blue Sky Journeys (whose website is currently disabled), Swoap would not talk about the incident, except to say, “My wife is the owner. But we have no comment.”

Another travel agency, Fantasy & Dreams, lists Melanie Swoap as a Disney expert on its website. Her profile reads, in part, "My job is to help families create memories that will last a lifetime. Not only that, but to make it easier for everyone to come together and just enjoy one another without the worry and stress of planning."

Calls and emails to the dance school, Ann Carroll Dance Studio in Franklin, were not returned.

The school, according to WZTV, arranged the Disney World trip as a way to expose the dancers to the realities of performing for major outlets like Broadway and Disney. The trip had been booked since August 2012 through Blue Sky, but when the families arrived in Orlando, they found that the shuttle-pass numbers provided by the Swoaps didn’t work. Then they got to the hotel only to find they had no rooms reserved—and no passes for the theme park. Several parents presented credit cards to book rooms and passes on the spot, and the trip went on as planned. The website published a glowing review.

“On our recent trip to Disney World, the Ann Carroll Dancers had the opportunity to take classes through the Disney Performing Arts program,” the site reports. “The dancers took ballet, tap, jazz, audition techniques and a special workshop called ‘Disney Magic.’ The girls learned what it takes to be a professional dancer at Disney World and on Broadway. The big finale was a performance with special guest: Goofy!”

There’s no indication of the whopping cost of it all. Cash and checks for the trip went directly to Blue Sky. That should have been a red flag to the dance school, according to a former employee of the agency, who spoke anonymously to WZTV. "I would say it is industry standard that cash does not change hands because you don't have a record of it,” she said.

It was a thought echoed by Sue Pisaturo, owner of the authorized Disney vacation planner Small World Vacations, based in New Jersey. “No, no, no, no, no,” she told Yahoo! Shine when informed of the case and of the cash involved. “I never accept any form of payment. I don’t process credit cards or accept checks,” she said, adding that, as travel agents, they will take clients’ credit card numbers over the phone and then call Disney to make arrangements. But ultimately, she said, “I don’t want to touch people’s money.”

While the official “authorized” or “earmarked” nod from Disney is something that Disney travel agents aim for, Pisaturo explained, those stamps of approval are based on sales and marketing, and not necessarily how you conduct business. “They don’t get into that,” she said. Disney was not able to immediately explain the process of authorizing travel agents to Yahoo! Shine.

So what can consumers do to protect themselves when booking trips to Disney theme parks through travel agencies? There are plenty of things to look out for, Len Testa, co-author of the “Unofficial Guide to Walt Disney World,” told Yahoo! Shine.

“The advantage of booking with smaller, specialized companies is that they know a lot about Disney,” he noted. “The downside is that they don’t have the reputation of a big name like American Express or AAA.”

For each agency, “look for the social network they’ve established,” he suggested. In his book he recommends agencies including Small World Vacations and Mouse Fan Travel in his book. In addition to researching customer reviews and other accolades, he said, try to find out the following: “How long have they been involved with what they do? Do they host meets? Are they active on discussion boards? Do they host conferences?" He added, "Look for established roots in the Disney community.” If they score marks in all of that, he said, “odds are they won’t throw it all away for $60,000.”

Yahoo! Shine - Women's Lifestyle | Healthy Living and Fashion Blogs (http://shine.yahoo.com/parenting/disney-vacation-scam-cheats-kids-out-of-more-than--60-000--how-to-avoid-a-fraud--195528574.html#)

ribshaw

08-25-2013, 01:44 PM

Craigslist contact leads to death threat, attempted scam for Missoula CPA

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What started as an exchange of text messages about a violin listed on Craigslist ended with a death threat last week in Missoula.

“I am interested in buying your VIOLIN – $249,” read a text to Missoula resident Terry Burke on July 28.

Later, the person identified himself as Frank Moss of Sylacauga, Ala., and offered to send a copy of his passport.

When Burke, a certified public accountant, didn’t cash a $1,650 certified check that Moss sent for to purchase the violin, the tone of the messages became much more sinister.

“Are you trying to play games with me? I only give you 24 hrs to get back to me with the rest of the fund or else I will assassinate you and your entire family. I have full name and address with me to look and search for you. Good day,” Moss wrote in a text Aug. 13.

Then, the final message, sent the next day: “Where is my money?”

Burke didn’t think anything was amiss initially – he had successfully sold several items before using Craigslist.

After giving the person his business address to mail a certified check, Burke received a confusing text: “The check of $1650 will be sent to you the excess funds will goes to the mover before coming for the pick up. Pick up will be done after the check has cleared from your bank. I am willing to offer some fund to cover your stress and strain toward getting it done.”

“That’s when the flag came up,” Burke said.

No one pays extra money for items, he said, so he asked that a certified check be made out to and mailed to his bank. The interested buyer did neither, sending it to Burke at his business address instead.

Burke contacted the Kentucky bank listed on the check he received, and his doubts about its authenticity were verified.

***

If Burke had cashed the check – which was made out from an Ohio dental company with a Michigan address – he would have been responsible for covering the funds when the check bounced. The “excess funds” given to the “mover” would have disappeared.

“My big concern is how many of these folks are out there taking advantage of individuals with this thing?” he said.

“If there’s a question, don’t do it,” Burke said, crediting following his gut in avoiding being out more than $1,600 and a violin.

While his most recent experience on Craigslist was negative, Burke was quick to say he finds the website to be a helpful tool for buying and selling locally, and will use it again.

Craigslist warns of scams and provides tips for avoiding them, but the site still is used as a medium for fraud.

Another common scam hits potential renters, said Scott Pastian, a detective sergeant with the Missoula Police Department.

Scammers post ads for rental properties that are valid properties, just not theirs, Pastian said.

Renters then send deposits to the scammer instead of the real owner, he said; sometimes a third party collects the money.

“So it’s very hard to track, and most of the time it involves multiple states, multiple jurisdictions and it’s very difficult for the victim to ever get compensated for their loss,” he said.

Don’t want to fall for either scam?

Conduct transactions face to face and only release personal information if you’re comfortable doing so, Pastian said.

“I would say that the person should only release information that they’re comfortable with, and generally if you’re conducting the face-to-face transaction, a lot of that can be avoided,” he said.

“And never accept a check for more money than what you’re selling it for,” he said.

Overall, the number of scams reported to Missoula police has decreased, Pastian said.

It’s unclear whether that trend is because people are better educated about avoiding scams or if people are reporting them to other agencies, he said.

If someone finds themselves in a situation where scammers become aggressive or confrontational, report it to police and ignore any further communications, he said.

A Missoula detective monitors fraud cases, Pastian said.

“But, generally, there’s not a whole lot that we’re going to be able to do to help someone who’s in that situation,” he said.

“Because it’s so difficult to track these people down,” he added.

For more information and to report scams online, visit ftc.gov. More information also is available at craigslist.org/about/scams.

Craigslist contact leads to death threat, attempted scam for Missoula CPA (http://missoulian.com/news/local/craigslist-contact-leads-to-death-threat-attempted-scam-for-missoula/article_c369ef78-0d0f-11e3-a78b-001a4bcf887a.html)

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ribshaw

08-26-2013, 07:36 PM

Burglars Use Snake Scam to Fool Victims in Fremont, Niles: Police
Thieves posing as city workers checking for snakes have robbed East Bay homes.
By Marianne Favro and Chris Roberts
| Monday, Aug 26, 2013 | Updated 5:02 PM PDT

Police: Burglars Use Snake Scam to Fool East Bay Victims

Josh Keppel

A team of East Bay burglars claimed there were rattlesnakes, like this one, roaming the neighborhood in order to scam residents.

Two Bay Area police departments are investigating reports of robbers posing as Animal Control workers, ringing door bells, warning of poisonous snakes and then taking cash and valuables.

Police say burglars posing as Animal Services workers prowled several neighborhoods in Fremont on Saturday. They say, at about 5 p.m., a woman and her supposed supervisor told a homeowner that they were looking for a rattlesnake that bit a young girl.

The suspect told the 70-year-old victim they needed to get in the home to measure her backyard in order to place some traps.

"While they were out in the backyard doing the measurements, an accomplice came in through the front door and stole jewelry and cash from the home,” Fremont police spokesperson Geneva Bosques said.

Officers are also investigating a similar scam attempt earlier the same day in Niles.

"They went door to door and said there was a snake, and they needed to go in the back and set traps,” Bosques said.

But in that case the neighbor got suspicious and didn’t let the woman in.

In both cases, the suspect, a woman wearing brown khakis, claimed to be with Fremont Animal Services. Her snake story was detailed and so was her disguise, right down to her black gloves, a lanyard with an ID and a fake patch on her shoulder.

The real Animal Services employees wear a police patch, carry photo IDs and drive vehicles marked with the city's emblem.

Police say the scams are an important reminder to ask questions. They are advising residents that city employees are required to carry a badge with a photo ID.

"Ask for a supervisor, ask for a phone number before letting someone in your door,” Bosques said. "And remember, city employees always tell you if they are coming there.”

The same snake scam was apparently attempted in Union City on Wednesday, according to police. There, another female suspect told a homeowner on Deborah Drive that she was there to check for snakes. During the snake check, the house was robbed.

Police are still looking for the suspects and believe they may be roaming the Bay Area.

Burglars Use Snake Scam to Fool Victims in Fremont, Niles: Police | NBC Bay Area (http://www.nbcbayarea.com/news/local/Burglars-Use-Snake-Scam-to-Fool-East-Bay-Victims-Police-221237241.html)

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ribshaw

08-27-2013, 07:52 AM

(Reuters) - The Securities and Exchange Commission charged an Indiana man with running a $6 million Ponzi scheme that defrauded investors out of their retirement savings and used the money to invest in a bridal store, a bounty hunter reality television show, and a soul food restaurant owned by the bounty hunters.

The SEC on Monday said it obtained an emergency court order to freeze the assets of defendants John Marcum and his firm Guaranty Reserves Trust LLC.

Marcum, 49, of Noblesville, Indiana, was accused of deceiving at least 37 people into investing in promissory notes issued by his firm by promising double-digit annual returns with no risk to principal by day-trading in stocks.

"Marcum tricked investors into putting their retirement nest eggs in his hands by portraying himself as a talented trader who could earn high returns while eliminating the risk of loss," said Timothy Warren, acting director of the SEC's Chicago regional office.

The SEC said Marcum regularly gave clients account statements showing annualized returns of more than 20 percent with no monthly losses.

Instead, the regulator said he lost more than $900,000 on what little trading he conducted, and used the remaining funds to invest in start-up ventures and finance a lifestyle including Mercedes-Benz car payments, airline tickets, nightclub outlays, and charges to his former wife's credit card.

The SEC said none of the start-ups appears profitable, and that Marcum "is nearly broke, and his accounts contain less than $2,000." It said the scheme began to unravel in mid-2013 when Marcum became unable to meet some investors' redemption demands.

According to the regulator, Marcum admitted misappropriating investor money during a June 18 conference call with three investors, which was recorded.

It said he also told investors during the call that his insurance policies had a two-year waiting period for a "suicide clause" to take effect, and that if he failed to return their money he would kill himself so they could be made whole.

A lawyer for Marcum did not immediately respond to a request for comment. Marcum could not immediately be located.

The lawsuit seeks a fine, the recovery of ill-gotten gains, and a permanent ban on further wrongdoing.

The case is SEC v. Marcum et al, U.S. District Court, Southern District of Indiana, No. 13-01361.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

SEC says Indiana man used Ponzi scheme to fund a reality TV show | Reuters (http://www.reuters.com/article/2013/08/26/us-sec-ponzi-realtitytv-idUSBRE97P0WV20130826)

ribshaw

08-27-2013, 07:59 AM

Consumer Tip: Gifting clubs cloak pyramid scheme

Marin Independent Journal
Posted: 08/26/2013 06:00:00 PM PDT

CONSUMER TIP

Gifting CLUBs present risks

You are given the "opportunity" to join a club. New club members give "gifts" to the highest ranking members. Bring in new members and you and other "friends" will be rewarded, receiving money far more than what you gave to join the club. Is this a good opportunity?

Not really. Gifting clubs, like most other pyramid schemes, must continually recruit an ever increasing number of members to survive. Eventually, the clubs do not attract enough new members and they collapse. Most members who paid to join the club never receive the gifts or the financial awards they expected or were promised, therefore they lose everything they paid to join.

If you are asked to join a gifting club, consider the following:

• A true gift is free and has no strings attached.

• Don't be swayed by testimonials of tremendous payoffs — very few members receive any money.

• Don't be misled to believe that a gifting club is legal because you are told payments are considered gifts. To join the club you must make a payment. To receive money it requires the recruitment of an "endless chain" of new members.

In reality, a gifting club is an illegal pyramid scheme that carries with it potential criminal and civil sanctions.

More information is available through the Marin County district attorney's consumer protection unit at 473-6495 or through its website at County of Marin (http://www.co.marin.ca.us/da).

— Marin County District Attorney

Consumer Tip: Gifting clubs cloak pyramid scheme - Marin Independent Journal (http://www.marinij.com/lifestyles/ci_23948384/consumer-tip-gifting-clubs-cloak-pyramid-scheme)

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ribshaw

08-27-2013, 08:07 AM

KANSAS CITY, Mo. - Someone is allegedly trying to capitalize on the death of a mother and her 3-year-old daughter.

There have been several reports of people claiming to have ties to the family going door-to-door asking for donations. But the family says these people are not connected to the family at all.

The family is asking people not to donate to these solicitors but instead to the “Baby Denim White Fund” at any Arvest Bank. The money raised from the fund will go toward the one-year-old found at the scene.

Kevin Turner is the uncle and grand uncle of the victims. He says the people collecting money are taking advantage of his family's loss and are as bad as the person responsible for the crime.

Kansas City Arvest Bank Locations::

8959 County Highway 8-S
Kansas City
(913) 261-2265
127 W 10 St #102
Kansas City
(913) 279-3300
5600 N Broadway Ave Gladstone
(931) 261-2265

Read more: Family of murder victims warns against possible donation scam (http://www.kshb.com/dpp/news/local_news/family-of-murder-victims-warns-against-possible-donation-scam#ixzz2dAsJmZJz)

scratchycat

08-27-2013, 08:34 AM

There is no limit to what people will do this day and time to steal from others.

ribshaw

08-27-2013, 08:20 PM

Three arrested in Nigerian Scam out of Seaford
Aug. 27, 2013 8:01 PM |

Thaddeus E. Bolden, 26, was charged Monday with racketeering, money laundering, receiving stolen property over $1,500 and conspiracy, said Master Cpl. Gary Fournier. / Delaware State Police
Written by
Terri Sanginiti
The News Journal

Terretta L. Lassiter, 22, was charged Monday with racketeering, money laundering, receiving stolen property over $1,500 and conspiracy, said Master Cpl. Gary Fournier. / Delaware State Police

A Seaford trio was arrested for operating a racketeering ring following a six-month joint investigation into a “Nigerian Scam” initiated by police in Iowa, state police said today.

Vinod Singh, 35, Terretta L. Lassiter, 22, and Thaddeus E. Bolden, 26, were each charged Monday with racketeering, money laundering, receiving stolen property over $1,500 and conspiracy, said Master Cpl. Gary Fournier.

Singh, who lives on Baker Mill Road, also was charged with theft greater than $50,000 in connection with a credit card scam.

The investigation began on Feb. 7 when investigators from Merion Police Department in Iowa contacted the state police Financial Crimes Unit about stolen property —consisting of iPods, iPhones, jewelry and $15,000 in cash —that had been shipped by FedEx to a Seaford address in Delaware.

State police detectives obtained a warrant to search a home in the 8000 block of Garden Lane but were unable to find the stolen property, Fournier said.

The homeowner at that address, described by police as an acquaintance of Singh’s, knew Singh was having packages sent to his home, but was unaware it involved anything crime-related.

The homeowner told investigators Singh had met the FedEx driver earlier that day and signed for the package they were looking for.

Detectives then went to Singh’s Baker Mill Road home and questioned him directly about the whereabouts of the package sent to the Garden Lane address, Fournier said.

“He knew when the packages were due to be delivered and intercepted them at the other address,” he said.

Singh told detectives he received a phone call about a job opportunity after posting his resume online. The job allegedly consisted of him picking up two packages that were to be delivered to his acquaintance’s home on Garden Lane.

He was then allegedly instructed to send the packages on to another address at which time he would receive cash for his services, Fournier said.

Singh then brought the packages to his niece Lassiter and her boyfriend Bolden, who were to wire $15,000 of the enclosed cash in the package to the alleged employer in Nigeria. Singh was allowed to keep some money, Fournier said.

Because money was being moved through the postal system, U.S. Postal Inspectors and the U.S Secret Service joined the investigation.

Fournier said the postal inspectors became involved in February because Bank of America credit cards were fraudulently being issued to Singh at the Garden Lane address of his acquaintance.

The suspect would impersonate the card holder and request a new card be sent to the Garden Lane address by using stolen information of the card holder.

“The credit cards were sent separately,” Fournier said. “They would call about a lost credit card, add Singh’s name to it and then he would receive all the credit cards and cash them at casinos and local banks, making cash advances totaling $50,000.”

Singh and the two others were released on unsecured bail after being charged.

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ribshaw

08-27-2013, 08:38 PM

Pa. woman guilty in $2M multi-state magazine scam, with Seattle operations in 2008

A western Pennsylvania woman pleaded guilty to fraud Tuesday in what federal prosecutors say was a $2 million scheme to sell phony magazine subscriptions door-to-door using sob stories claiming the sales benefited the military, children's hospitals, single mothers or ex-cons looking to turn over a new leaf.

By JOE MANDAK

A western Pennsylvania woman pleaded guilty to fraud Tuesday in what federal prosecutors say was a $2 million scheme to sell phony magazine subscriptions door-to-door using sob stories claiming the sales benefited the military, children's hospitals, single mothers or ex-cons looking to turn over a new leaf.

Lahron Buchanan, 32, of Pittsburgh, must return to U.S. District Court Dec. 3 when she faces up to 20 years in prison.

Assistant U.S. Attorney Nelson Cohen told the judge that Buchanan is responsible for up to $400,000 of more than $2 million stolen from thousands of customers in western Pennsylvania, Washington, Texas and Arizona between February 2007 and February 2011.

U.S. Postal Inspectors contend the scam was the brainchild of Samuel Cole, a Pittsburgh man and father of Buchanan's child, who began business as New Image Consultants Inc. then changed names and locations to remain a step ahead of law enforcement, also operating as Fresh Start Opportunities in Seattle in 2008 and Destiny Sales Inc. of Dallas and West Memphis, Ark., beginning in 2009.

Cohen told the judge Cole, 44, recruited "crews" of workers who were sometimes housed in local motels and given unspecified compensation to sell the magazines, ultimately swindling more than 21,000 customers. Buchanan started out selling the magazines, and later kept track of the companies' paperwork as part of the scheme, Cohen said.

"She's not responsible for the entire scheme and she's not the primary person in the scheme," Cohen told Senior U.S. District Judge Maurice Cohill Jr.

Buchanan has cooperated with investigators and told them she issued a handful of refunds to wary or unhappy customers, just to keep the scheme from unraveling. But Cohen said investigators found only one instance in which a refund was paid - and none in which customers actually received magazines.

"We couldn't find any money that was ever paid to a legitimate magazine company," Cohen told the judge.

Instead, the money - minus whatever overhead was spent to pay or house the "crews" - apparently went to Cole, investigators determined.

Workers were instructed to pose as single mothers who needed the money, ex-cons trying to get back on their feet, or to tell customers that the money or magazines were benefiting some other good cause.

"They generally indicated some sort of a heart-rending pitch," Cohen told the judge, telling customers the magazines would be sent "to help the troops" or be delivered "in the name of a local children's hospital."

Court records indicate Cole is continuing to contest the charges, though no trial date has been set. Cole's federal public defender did not immediately return a call and email requesting comment.

Pa. woman guilty in $2M multi-state magazine scam, with Seattle operations in 2008 | Local News | The Seattle Times (http://seattletimes.com/html/localnews/2021694272_appamagazinescam2ndldwritethru.html)

ribshaw

08-28-2013, 08:35 AM

27 common scams to avoid

As Scams Awareness Month begins, we run through some of the most widespread and believable cons attempting to part you and your money

Donna Ferguson
theguardian.com, Thursday 2 May 2013 06.04 EDT

Common scams
Common scams: from fishy salesmen to dodgy phone calls, be vigilant. Photograph: Alamy/David Oliver/Tony Stone/Marvin E Newman/Getty/Chris Rout/Luke MacGregor

You can lock your doors against burglars, but making sure you don't fall victim to a scam – even in the safety of your own home – is much less straightforward.

More than 22,000 people were scammed in 2012, according to Citizens Advice, and fraudsters are constantly inventing ways to swindle you out of your cash. The month of May has been designated Scams Awareness Month by Citizens Advice and Trading Standards, and forewarned is forearmed so here are 27 to look out for.

Door-to-door scams

1. Fake Green Deal sales You answer your door to be told you are entitled to £10,000 of funding for Green Deal home improvements, such as insulation or a new boiler. You are then asked to pay an administration fee.

2. Unnecessary damp proofing You are offered a free damp proofing survey. The surveyor always finds damp which needs urgent attention, quotes a high price and requests an immediate deposit.

3. Home maintenance services A trader offers you a cheap quote to pave your patio or driveway, carry out home maintenance or gardening services, or repair "unsafe" roof tiles. They demand an upfront cash payment to start or finish the job – then scarper with the money or make unreasonable charges for botched work.

4. Food sales Someone offers to sell you (inedible) fresh or frozen fish very cheaply, but only if you are prepared to pay £100s for several boxes, sight unseen.

5. Fake energy-saving gadgets You are offered a plug-in gadget at a "sale price" of £99, which the seller claims will cut your electricity use by 40%.

'Too good to be true' scams

6. Fake dates You join a dating website and are contacted by an extremely good looking potential date who lives abroad. After starting an online romance the scammer asks for money for emergency bills.

7. Council tax refunds You are told by a cold-caller that you are owed a rebate on your council tax bill or are overpaying because your property is in the wrong tax band. You are then asked to hand over your bank or credit card details so your money can be refunded.

8. Council tax discount You are told that if you start paying by direct debit you will get a discount – but first you need to pay an administration fee.

9. Dodgy job website You register your CV at a job site and quickly get a call or email from an employment agency guaranteeing you a job, but only if you first pay a fee.

10. Bogus pay cheque You are called or sent an email from someone who wants to give you a job, and offered a cheque in advance of your first payday. Cash the cheque and you'll be told you've been overpaid and must return the money via an online transfer – before the cheque bounces.

11. Training course claim You see an advert online for a high salaried job, but are asked to pay for a training course first.

12. Prize scam You are called, texted or emailed and congratulated for winning a prize or even a huge lottery pot (although you can't remember buying a ticket). In order to collect your winnings you are asked to pay a processing fee or to call a premium rate phone line.

13. Bad investments You are cold-called and offered a once-in-a-lifetime opportunity to invest your life savings, for example in carbon credits, plots of land, fine wine or exclusive stocks and shares, which are certain to make you rich. Needless to say they are not.

14. Loan arrangers You are called or texted by a fraudster and invited to apply for a "guaranteed loan". After you've given your personal information, including your bank details, you are told to pay an application fee.

15. Pension problems You receive an "urgent" phone call from "The Pensions Helpline" or your pension provider stating that you are entitled to a £1,000 pension bonus from the government, or that your pension has been underpaid. In order to receive your money you must pay a fee or give out your personal details on a premium rate line.

16. PPI refunds You are texted or called by someone claiming to be your bank, the Ministry of Justice, or a PPI company and told you are owed money in the form of mis-sold PPI payments – but you must pay an administration fee before the refund can be processed.

17. Tax back You receive an email from HMRC offering you a huge tax refund if you give your personal details online or by email.

18. Unhealthy sales You see an online advert for a free trial of slimming tablets or skin products. However, you unwittingly sign up for regular monthly payments which cannot be cancelled.

19. Noise rebatement You are called by someone claiming to be from the government and told you may be entitled to compensation because a place where you once worked has been condemned as too noisy on health grounds. You are asked to pay a fee to find out more.

Scams which prey on your fears

20. Missed payments You are sent a fake council tax bill or told you are in arrears, and asked to pay immediately over the phone.

21. Telephone debt You are called by "Her Majesty's Court" and told you have defaulted on a debt for an expensive telephone preference service. You are asked for immediate payment over the phone and warned you will be disconnected and face arrest or a court summons if you refuse to pay. If you hang up, the fraudster will stay on the line so you'll think your line has been disconnected.

22. Truant's fee The "Education Welfare Service" calls to tell you that your child failed to attend school that day and asks you for a £340 penalty over the phone.

23. Courier scams You are called on your landline by your bank and told that fraudsters have used your debit or credit card and it needs to be replaced. You call your bank, which confirms this. You are told to key in your pin number and hand over your card to a courier who will arrive soon. However, between receiving the call and dialling your bank you didn't hear a dial tone and are actually still speaking to the scammers, who never disconnected the line.

24. Holiday help You are sent an email from a friend or relative whose account has been hacked. You are told they are stranded abroad and need you to send them money urgently. They are not, and do not require any money.

25. Virus hoax You are called by "Microsoft Windows Support" and told your PC has a virus or is running slowly. The problem can be solved remotely if you give them your credit card details and/or remote access to your PC.

26. Medical emergency You are called and told your grandchild has been in a road accident abroad. Cries for help are screamed down the phone while the caller says you need to send money immediately to cover medical costs.

27. Rogue traders A police officer calls claiming criminals are trying to steal money from your bank account, and that a special "safe account" has been set up for you to transfer your savings into. You are told that clerks at your bank are under surveillance and that revealing why you are transferring the money will jeopardise covert police work.

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ribshaw

08-28-2013, 09:19 AM

Top 5 Signs of a Craigslist Scam
Red Flags that Warn You You're About to Be Ripped Off
Barbara Nefer

Craigslist is a great place to sell unwanted items and make some extra cash or pick up everything from furniture and household goods to cars at bargain prices. Unfortunately, it's also a hunting ground for foreign scammers who want to steal your money in a variety of ways. I love reading the 800notes.com website because has reports of new Craigslist scams every day.

You don't have to know the details of all the different scams on Craigslist and similar online classified websites. If you look for these signs, you'll stay safe from Craigslist rip-offs.

1) Never deal with a person who refuses to come out and look at the item you're selling. I'm always amazed at the variety of excuses scammers use. Sometimes they're away on business in another country. Sometimes they work on a ship or are in the military. Whatever their reason, they're willing to buy your merchandise sight unseen. Think about it logically. Who would do that, especially with a big ticket item like a car?

2) Never deal with a person who won't talk to you on the phone. Most scammers are based in other countries, and they don't want you to hear their accents so they insist on using text only. They often claim to be deaf or say they have restrictions on their phone use for other reasons. The real reason is that they're Craigslist scammers who don't want you to get suspicious when you realize they're foreign. I often see scammers posting as shills on 800notes, and even their writing smacks of English as a second language.

3) Never deal with a person who won't pay cash on pick-up for your item. Craigslist scammers always want to pay through Paypal or with a mailed check. This lets them scam you in a variety of ways. For example, they'll send spoofed emails that look like they came from Paypal telling you that you have money, but it won't be put into your account until you send proof that you shipped the merchandise. Of course, the money doesn't exist.

However, the most common rip-off I see online is the overpayment scam. You get a check for several hundred dollars more than your item costs. The scammer will give some bogus reason for the overpayment and ask you to wire the extra money to him or a cohort. The check is eventually returned because it's a fake, and you're liable for the entire amount.

4) Never deal with someone who wants you to pay in advance for something. You're dealing with strangers on Craigslist, so you have no reason to trust them. I'm shocked at the number of news stories I see about people who wired thousands of dollars to people they'd never met to rent houses or apartments they'd never seen. They went by photos in an ad, and of course their money is gone because the rental doesn't exist. I've see the same thing happen for items like concert tickets and airline miles, too. I can't even imagine sending money to an unseen stranger based on nothing but promises and hoping for the best.

5) Never pay for a credit check or background check in response to a Craigslist job ad. Why would a company want you to do this before you've even had an in-person interview? It's just a scam to trick you into paying for the credit report or background search through an affiliate link, and the scammer gets a cut of the money. Meanwhile, you never hear anything else about the supposed job.

Scammers adapt their tricks as Craigslist users get smarter, so you'll always have to be careful. If you follow these give guidelines, you'll keep yourself safe from most of the scams.

Top 5 Signs of a Craigslist Scam - Yahoo! Voices - voices.yahoo.com (http://voices.yahoo.com/top-5-signs-craigslist-scam-12275840.html?cat=46)

More help from wiki How to Avoid Scams on Craigslist: 5 Steps (with Pictures) (http://www.wikihow.com/Avoid-Scams-on-Craigslist)

Funny Bear Photo

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ribshaw

08-28-2013, 09:22 AM

5 Most Dangerous Email Scams

Scams are really nothing new. For as longs as people have been interacting with each other, there have been unscrupulous individuals attempting to dupe others out of what is rightfully theirs. However, with the advent and subsequent worldwide proliferation of the internet, the sheer volume of scams has increased a thousandfold.

Perhaps it has something to do with the relative safety and anonymity that internet scam artists enjoy, or their ability to reach millions of potential victims through the use of automated programs and malware. Whatever the case, if you communicate with people over the internet, you’re at risk of being scammed. And when it comes to the prefered method, many online con artists stick with the tried and true path of the email scam. So, for your protection, here are five of the most dangerous email scams that you may have seen pop up in your inbox at one time or another (or might even be sitting there right now).

1. The UPS Package Scam

Who wouldn’t want to get a nice, unexpected delivery? The UPS package scam plays on our love of gifts by sending an email claiming to be from the UPS Packet Service. The email states that UPS attempted to deliver a package to your home, but could not because of an address error. It then suggests that you open the attachment that came with the email so that you can get everything sorted out.

Most people don’t think twice about following these legitimate-looking instructions, but they really should. For one thing, how does UPS have your email address, but not you street address? If anything, UPS would probably be more likely to contact the sender, rather than the recipient of a failed delivery. Sure enough, if you click the attachment you’ll have a special virus downloaded into your computer which will then comb through your files and steal any personal information it can get to. Delete the email without opening it, and if you think that you might actually have a package waiting for you, call your local UPS store to verify.

2. 419 Scams

Also known as Nigerian Prince scams, are emails that seem to be a genuine plea for help from someone in need (usually a deposed monarch). The email usually explains that a large sum of money needs to be moved into an offshore account not associated with the original sender. It suggests that if you would be willing to help, you would be entitled to a large percentage of that money. However, in order to get the money moving, you’ll need to make a small, initial investment. You may also be asked to supply the email writer with personal information and bank account data.

Of course, if you fall for scam and send any of these things, you’ll just receive more emails informing you that the process has hit certain complications, and more money is needed for charges, fines, or bribes. You may also receive official looking documents regarding the transfer, but one thing that you will never get is money. The Nigerian scam is one of the oldest email scams around, but even today it is still going strong. It is also one of the few cyber security scams that has actually resulted in loss of life; from 1992-1995, 15 people were murdered after responding to Nigerian 419 scams that eventually led them to visit the country in question at the behest of the email writers. Others have been held for ransom. Never respond to any sort of email that promises huge monetary returns for small fees.

3. Phishing Scams

Phishing scams show up in your email as simple reminders to update your personal information with your bank or Paypal account. If you click the link they provide, they will take you to a very official looking web page in which you will be asked to provide some personal informations (such as a bank username and password) so that you can verify that everything is up to date. If you go ahead and provide that information, the scammers will be able to use it to access your real accounts and help themselves to whatever you have inside.

Ignore any emails that suggest you provide personal information. Legitimate companies almost never contact you asking for sensitive data, so be very wary when you get an email like this. Again, if you want to investigate further, contact the bank and ask them if they have recently sent you an emails regarding your personal data.

4. Threat Scams

This one is more likely to get your heart racing than a simple “please send money” scam. The email claims to be from a contract killer who has been hired to murder you. However, the killer would rather not kill you if he doesn’t have to, and will accept payment instead. The email may even include details about your life, thus giving it the appearance of credibility. However, the ‘details’ will be ones that are easily found online, and the ‘killer’ will just end up being another scam artists attempting to prey on your fear. If you receive one of these, you can simply ignore it, and you’ll be just fine; a real contract killer isn’t going to risk his reputation and his freedom by contacting his target and giving away his plans. However, if you’re really spooked, you can contact the FBI and have them look into the matter.

5. Charity Scams

While some other scams play upon your greed, fear, or simple gullibility, charity scams play upon some of humanity’s better qualities, namely our empathy and generosity. The emails make reference to some recent disaster, and ask that you donate a small amount to a charity to help those who were affected by the tragedy. Ironically, the email itself may warn you to beware of online fraud, and it will contain an attachment to a very official looking web page where you can make an online donation.

Of course, the email, the website, and certainly the poor people in need are all just part of the scam. Ignore any emails that come to you and ask you for donations. If you would like to donate to a worthy cause, visit the webpage of whichever charity you prefer, or call them on the telephone. There’s nothing wrong with wanting to help, but if you’re not careful when dealing with email scams, the only people you’ll end up helping are criminals.

A good piece of advice is this: Keep your computer’s virus protection up to date, and if you don’t know the person who is sending you the email, then don’t even open it. The evolution of cybercrime is constantly producing new scams and reinventing the old ones, but you can remain safe if you’re careful not to take anything you see in your inbox at face value.

5 Most Dangerous Email Scams - Yahoo! Small Business Advisor (http://smallbusiness.yahoo.com/advisor/5-most-dangerous-email-scams-030036865.html)

5722

Seattle

08-29-2013, 11:48 AM

Great thread. I enjoyed it thoroughly. Thanks.

scratchycat

08-29-2013, 04:50 PM

Welcome to the $2 buck team. :fishing_can: Come on little fishes, I need more money says the ones behind the promotion of this dollar maker.

$2 BUCK TEAM BUILD (http://2buckteambuild.webs.com/)

OUR GOAL IS TO DO THIS IN 12 WEEKS!
STEP 2
SIGN UP BELOW! FILL IN ALL INFORMATION COMPLETELY IN YOUR BACK OFFICE!
$2 LEVEL ONLY!
******** IMPORTANT*****
AFTER YOU SIGN UP MAKE SURE YOU PLACE YOUR INFORMATION IN THE BOX BELOW!!!!!!!

That is exactly what they want and in 12 weeks your money will be theirs!!! Any suckers out there??

TURN $2 INTO $16,000

That is enough of you 'suckers' send them your 2 bucks, the top loaders will skim off the bucks and close down.

ribshaw

09-04-2013, 08:03 AM

This was from the BBB on avoiding ticket scams.

5739

ribshaw

09-04-2013, 08:41 AM

There are several variations of this scam. From paying an advance fee to an overpriced seminar. Getting a grant is like a lot of things, you have to have a qualifying need and generally write a series of proposals to receive the money.

Facebook scam costs La Crosse woman $1,500

13 hours ago • By Tribune staff
A La Crosse woman is out $1,500 after she fell for an online scammer.

According a police report, the 58-year-old was contacted through Facebook by someone calling himself James Horton, who claimed he was with an agency for the “Deaf, Blind and Disabled” and could get her a grant for $150,000 if she would pay a $1,000 fee.

The woman told police she was unable to find the agency on the Internet and that her husband warned her it was a scam but said she thought it was legitimate because Horton had a mutual Facebook friend.

She wired $1,000 to someone in Houston only to be informed that Horton needed another $3,500. She couldn’t raise that much money, but sent $500 to someone in Phoenix.

When Horton requested another $1,500 for “insurance,” she called police, who traced the phone number she had to Port Huron, Mich.

Police have no other leads.

Facebook scam costs La Crosse woman $1,500 (http://lacrossetribune.com/news/local/facebook-scam-costs-la-crosse-woman/article_1837ad80-14e8-11e3-bcd3-0019bb2963f4.html)

===============================================

Government Grant Scams

“Because you pay your income taxes on time, you have been awarded a free $12,500 government grant! To get your grant, simply give us your checking account information, and we will direct-deposit the grant into your bank account!”

Sometimes, it’s an ad that claims you will qualify to receive a “free grant” to pay for education costs, home repairs, home business expenses, or unpaid bills. Other times, it’s a phone call supposedly from a “government” agency or some other organization with an official sounding name. In either case, the claim is the same: your application for a grant is guaranteed to be accepted, and you’ll never have to pay the money back.

But the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that “money for nothing” grant offers usually are scams, whether you see them in your local paper or a national magazine, or hear about them on the phone.

Some scam artists advertise “free grants” in the classifieds, inviting readers to call a toll-free number for more information. Others are more bold: they call you out of the blue. They lie about where they’re calling from, or they claim legitimacy using an official-sounding name like the “Federal Grants Administration.” They may ask you some basic questions to determine if you “qualify” to receive a grant. FTC attorneys say calls and come-ons for free money invariably are rip offs.

Grant scammers generally follow a script: they congratulate you on your eligibility, then ask for your checking account information so they can “deposit your grant directly into your account,” or cover a one-time “processing fee.” The caller may even reassure you that you can get a refund if you’re not satisfied. In fact, you’ll never see the grant they promise; they will disappear with your money.

The FTC says following a few basic rules can keep consumers from losing money to these “government grant” scams:

Don’t give out your bank account information to anyone you don’t know. Scammers pressure people to divulge their bank account information so that they can steal the money in the account. Always keep your bank account information confidential. Don’t share it unless you are familiar with the company and know why the information is necessary.
Don’t pay any money for a “free” government grant. If you have to pay money to claim a “free” government grant, it isn’t really free. A real government agency won’t ask you to pay a processing fee for a grant that you have already been awarded — or to pay for a list of grant-making institutions. The names of agencies and foundations that award grants are available for free at any public library or on the Internet. The only official access point for all federal grant-making agencies is Home | GRANTS.GOV (http://www.grants.gov).
Look-alikes aren’t the real thing. Just because the caller says he’s from the “Federal Grants Administration” doesn’t mean that he is. There is no such government agency. Take a moment to check the blue pages in your telephone directory to bear out your hunch — or not.
Phone numbers can deceive. Some con artists use Internet technology to disguise their area code in caller ID systems. Although it may look like they’re calling from Washington, DC, they could be calling from anywhere in the world.
Take control of the calls you receive. If you want to reduce the number of telemarketing calls you receive, place your telephone number on the National Do Not Call Registry. To register online, visit donotcall.gov. To register by phone, call 1-888-382-1222 (TTY: 1-866-290-4236) from the phone number you wish to register.
File a complaint with the FTC. If you think you may have been a victim of a government grant scam, file a complaint with the FTC online, or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Government Grant Scams | Consumer Information (http://www.consumer.ftc.gov/articles/0113-government-grant-scams)

ribshaw

09-04-2013, 08:56 AM

Need money for college? Doesn't everybody? With tuition bills skyrocketing, and room and board going through the roof, students and their families are looking for creative ways to finance a college education. Unfortunately, in their efforts to pay the bills, many of them are falling prey to scholarship and financial aid scams.

According to the Federal Trade Commission (FTC), the nation's consumer protection agency, unscrupulous companies guarantee or promise scholarships, grants or fantastic financial aid packages. Many use high pressure sales pitches at seminars where you're required to pay immediately or risk losing out on the "opportunity."

Some unscrupulous companies guarantee that they can get scholarships on behalf of students or award them "scholarships" in exchange for an advance fee. Most offer a "money back guarantee" – but attach conditions that make it impossible to get the refund. Others provide nothing for the student's advance fee – not even a list of potential sources; still others tell students they've been selected as "finalists" for awards that require an up-front fee. Sometimes, these companies ask for a student's checking account to "confirm eligibility," then debit the account without the student's consent. Other companies quote only a relatively small "monthly" or "weekly" fee and then ask for authorization to debit your checking account – for an undetermined length of time.

Other companies claim they have programs that could make you eligible to receive financial aid, including grants, loans, work-study and other types of aid. For a processing fee, they'll handle all the paperwork. But experts caution: The only application that will determine eligibility for all programs is the Free Application for Federal Student Aid (FAFSA) – a form you can complete and submit for free.

The FTC cautions students to look and listen for these tell-tale lines:

The scholarship is guaranteed or your money back."
"You can't get this information anywhere else."
"I just need your credit card or bank account number to hold this scholarship."
"We'll do all the work. You just pay a processing fee."
"The scholarship will cost some money."
"You've been selected" by a "national foundation" to receive a scholarship – or "You're a finalist" in a contest you never entered.

If you attend a seminar on financial aid or scholarships, follow these steps:

Take your time. Don't be rushed into paying at the seminar. Avoid high-pressure sales pitches that require you to buy now or risk losing out on the opportunity. Solid opportunities are not sold through nerve-racking tactics.
Investigate the organization you're considering paying for help. Talk to a guidance counselor or financial aid advisor before spending your money. You may be able to get the same help for free.
Be wary of "success stories" or testimonials of extraordinary success – the seminar operation may have paid "shills" to give glowing stories. Instead, ask for a list of at least three local families who've used the services in the last year. Ask each if they're satisfied with the products and services received.
Be cautious about purchasing from seminar representatives who are reluctant to answer questions or who give evasive answers to your questions. Legitimate business people are more than willing to give you information about their service.
Ask how much money is charged for the service, the services that will be performed and the company's refund policy. Get this information in writing. Keep in mind that you may never recoup the money you give to an unscrupulous operator, despite stated refund policies.

The FTC says many legitimate companies advertise that they can get students access to lists of scholarships in exchange for an advance fee. Other legitimate services charge an advance fee to compare a student's profile with a database of scholarship opportunities and provide a list of awards for which a student may qualify. And, there are online scholarship search engines. The difference: Legitimate companies never guarantee or promise scholarships or grants.

If you're contacted by companies or visit websites that say they'll process your FAFSA for a fee, do yourself a favor and save some money, too. Visit StudentAid.gov, the U.S. Department of Education's site for free information on preparing for and funding education beyond high school. You can complete the FAFSA at Home - FAFSA on the Web-Federal Student Aid (http://www.fafsa.gov), and learn about other FAFSA filing options at Other FAFSA Filing Options - FAFSA on the Web - Federal Student Aid (http://www.fafsa.ed.gov/options.htm). You also can call 1-800-4-FED-AID.

This publication was produced in cooperation with the College Parents of America. CPA is a resource, advisor and advocate working on behalf of the millions of parents of current and future college students throughout the United States. For more information about CPA, call toll free 1-888-256-4627 or visit CPA at College Parents of America | A national membership association serving current and future college parents (http://www.collegeparents.org).

This article was previously available as Ouch - Students Getting Stung Trying to Find $$$ for College.
Report Scams

If you believe you’ve responded to a scam, file a complaint with:

the FTC
your state Attorney General

Tagged with: college, scam, scholarship, school

Scholarship and Financial Aid Scams | Consumer Information (http://www.consumer.ftc.gov/articles/0082-scholarship-and-financial-aid-scams)

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ribshaw

09-04-2013, 08:57 AM

Don’t fall for these scams as you travel

From pickpockets to flirtatious new friends, there are many ways for unwary travelers to lose their money.

By Rick Steves

Smart travelers go worry-free by using a money belt for their valuables.
Enlarge this photo

The Louvre is Europe’s oldest, biggest, greatest and second-most-crowded museum (after the Vatican). It is home to Mona Lisa, Venus de Milo, Michelangelo statues and paintings by the greatest artists from the Renaissance to the Romantics. Lately it is also home to groups of pickpockets. It got so bad that last April the museum staff walked out in protest. The Louvre had to close for a day, and the management finally beefed up police patrols.

Europe is a surprisingly creative place when it comes to petty thievery and travel scams. Tourists, especially Americans, are an easy target. Be on guard — even at church. St. Mark’s Basilica in Venice attracts tourists and pickpockets alike. Loaded down with valuables, jet-lagged and bumbling around in a strange new environment, we stick out like jeweled thumbs. If I were a European thief, I’d specialize in Americans — my card would say “Yanks R Us.”

But scams can be avoided. Smart travelers are less likely to be victims, so be aware of these travel scams, which I’ve been tracking thanks to my readers and my European travel guides.

• Rotator Bluff: You’re going through a London subway turnstile and someone is pressing right behind you. You feel something in your pocket, but by the time you turn around, it’s already too late — the thief throws your wallet to his accomplice on the other side of the machines. You’re stuck on the wrong side of the turnstile, and both thieves have disappeared into the crowd.

• The Attractive Flirt or New “Friend”: You’re a single male traveler who is suddenly approached by a gorgeous woman on the street. After chatting for a while, she seductively invites you for a drink at a nearby nightclub. But when the bill arrives, it is several hundred dollars more than you expected. Only then do you notice the burly bouncers guarding the exits — so you have to pay up. There are several variations on this scam. Sometimes the scam artist is disguised as a lost tourist or a gregarious local who (seemingly) just wants to show you his city. Regardless, be suspicious when invited for a drink by someone you just met; if you want to go out together, suggest a bar (or cafe) of your choosing instead.

• Slow Count: Cashiers who deal with lots of tourists thrive on the “slow count.” Even in banks, they’ll count your change back with odd pauses in hopes that you’ll gather up the money early and say “Grazie.” Waiters seem to be arithmetically challenged. If you have to use a large bill to make a small payment, clearly state the value of the bill as you hand it over. Some waiters or cabbies will pretend to drop a large bill and pick up a hidden small one in order to shortchange a tourist. Get familiar with the currency and check the change you’re given.

• The Well-Dressed Thief: The sneakiest pickpockets look like well-dressed businesspeople, generally with something official-looking in their hand. Some pose as tourists with daypacks, cameras and even guidebooks. Don’t be fooled by looks, impressive uniforms, femme fatales or hard-luck stories. Don’t hand your wallet to anyone, especially not to fake police who want to “check it for counterfeit money.”

• The Shell Game: Avoid any gambling on the street. The classic shell game comes with a shill who wins money easily. Then it’s your turn. Believe it or not, there are enough idiots on the street to keep these con men in business.

• Good Luck and Good Love: In many countries, colorfully dressed women are notorious for aggressively approaching the unknowing tourist with friendship bracelets or sprigs of rosemary. They’ll tell you your fortune and promise you a wonderful love life. Then they’ll demand money and refuse coins (bad luck), so the confused tourist gives paper money. This can also lead to a commotion where their children will gather around and suddenly everyone’s gone and all your zippers are down. It’s best to just stay away from any seemingly spontaneous interaction like this on the streets.

• The Excuse Me Spill: A popular con is when someone squirts your shirt with gunk and then tells you it is bird poop. While she helps clean it up, an accomplice lifts your purse or backpack.

And the list goes on and on. Scams can be easy to avoid if you recognize them and stay aware. Assume any commotion is created by thief teams to create a cover for their work. Wear a money belt to protect yourself against pickpockets, and leave your fancy bling at home.

Above all, enjoy your trip. Don’t travel fearfully — travel smartly. Scam artists come in all shapes and sizes, but if you’re cautious and not overly trusting, you’ll marvel at how easy it is to have a fun and hassle-free vacation.

Don’t fall for these scams as you travel | Travel | The Seattle Times (http://seattletimes.com/html/travel/2021745156_rickstevessept3xml.html)

ribshaw

09-04-2013, 04:21 PM

I just posted this on my romance scam thread, but it is relevant here as well, I got this from a friend on Facebook.

Scammers are very clever with their words and the crises they encounter. These are just some of the scenarios. If any of these sound familiar you are dealing with a scammer.

Scam Scenarios:

Counterfeit money orders and checks sent in the mail from the scammer to be deposited in the victim bank account and send back the cash by Western Union or Money Gram.

Asked to open a checking account to deposit checks form scammer.

Scammer claims they've been mugged, shot, in a auto accident, arrested or their money, passport, and id was stolen.

Need money for hotel/motel bill and manager has their ID and passport.

Lost the company money and cannot pay his employees.

Needs money to cover payroll or cash payroll checks.

Blank checks sent in the mail for victim to fill out and send out to scammer "clients" which in reality are other victims.

Scammer arranges for you to come to their country to meet and marry, you risk theft, rape, identify theft, and murder.

Scammer confesses what they are doing, claims to have "truly" fallen in love with you, but they continue to ask for money.

Scammer plans to come to your country to marry, but has an accident or other tragedy on the way to the airport.

Need money for plane ticket BTA (Basic Travel Allowance) this does not exists.

Scammer is on the way to the states to visit you but is held up in Customs and need money for his/her release.

Shipping packages to victim home to have them mailed to scammer.

Scammer sending counterfeit money through the mail to the victim.

Sending money to Canada or New Mexico.

Scammer sending a package filled with envelopes to victim to have the envelopes mailed to other victims. Checks or Money Orders are in the envelopes.

Doctor contacts victim to inform the scammer was in an accident but survived and needs his medical bills paid as the victim is the only one who can help.

Scammer or relative sick in the hospital needs money for the operation medication, and Dr. fees (Even when they are in the hospital they can IM with you because the doctor has a laptop and is so very generous to let them use it).

Catalogs sent to victim's home with scammers name on them.

Shipping packages to victim home to have them mailed to scammer.

Scammer is located in the States or UK, and is traveling to Nigeria for business.

Scammer has a business, but needs to have merchandise shipped to victim's house, and then have victim ship the merchandise to scammer.

Scammer needs money because doesn't have enough of her/his own money to get her/his newly acquired "merchandise" out of the country.

Scammer needs money because they can not cash a check at a Nigerian bank or use credit cards.

Scammer asks for money to give to her/his family as a promise to the family. They claim this is a "tradition" or a "wedding custom".

Scammer has a vision that he/she and the victim has to obey where God wants them to donate ½ of their monthly income for a month. The scammer went on a fast for 3 days and during that time God revealed to him/her where they would donate this money (sending it by WU) to some needy community Nigeria.

Working as an missionary in Nigeria and is shot, needs money for surgery, and medication.

Need money for child in an orphanage for his/her life saving operation or adoption of a child.

Business opportunities for victim.

Investment opportunities for victim.

Inheritance opportunities for victim.

Plans for the real estate business after they (the victim and scammer) receive the money in the trunks in the securities company in Holland, including legal looking documents.

In order to obtain funds, you are told to pay fees for attorneys, certificates, storage, bank transfers, bank releases, money laundering clearance, anti-terrorist clearances, courier services, storage (demurrage), etc.

Scammer claim to be buying a business. The business belonged to a "friend" of his who wanted to retire. This business was currently netting 30-40K each month in revenue claimed by the scammer. The scammer needed funds to complete the purchase of the business. Papers (fake papers) were provided for the purchase agreement which had the victim name on them included as the scammer's wife.

Scammer has 200 bars of 24K Ghanaian gold, left behind from her/his deceased Grandmother, each bar with a value of $16,000 dollars in the U.S. but had no value in Ghana. He/she (scammer) was to fly to the states with the gold and then the Immigration Customs Department at the Ghana airport called the victim. The (scammer) was arrested for trying to get out the country with undocumented gold. The victim was told the (scammer) would go to prison for life if the police came and the victim contact information would be forwarded over to Interpol and be traced to the local authorities here in the U.S.

The victim was told they would lose their job and be arrested. The (scammer) could be released if ($3000) was sent for the gold consignment and immigration papers. Two days later the victim was told the gold was sold to the Ghana bank and was worth 3.3 million U.S. dollars. Then was asked to give personal bank account information so the funds would be transferred into the victim bank account immediately (it never happened).

Scammer has funds belonging to Saddam Hussein's family in a consignment registered as Government Diplomatic Package and insured by the International Guarantee bond (IGB). Amount is $21 Million us dollars. They want to move this money to "victim" because Iraq is a war zone, so that the victim may invest it for scammer.

You are asked to help an orphan, banker, sick widow or widower, official, Zimbabwe farmer, minister, etc. transfer money out of the country - any country - to your account.

A scammer with a terminal illness wants to make charitable contributions from a vast fortune.

TOP

Threats from the Scammer:

Emails the victim with the victims Obituary.
Scammer threatening to turn in victim to the FBI and/or Secret Service.
Blackmail with "nude" photos of the victim.
Harassing emails and phone calls.
Threats are being made to you or to members of your family.

TOP

Negative Actions from the Scammer:

Internet business opened in victim name.
Merchandise ordered in victim name.
Credit card opened in victim name.
Scammer using victim name, profile, picture.

RS Types of Scams (http://www.romancescams.org/TypesOfScams.html)

ribshaw

09-04-2013, 08:05 PM

By Michelle Ye Hee Lee The Republic | azcentral.com Wed Sep 4, 2013 10:25 AM

Beware of an e-mail claiming to be from the FBI and the U.S. Department of Homeland Security and asking for confidential information to avoid prosecution: It’s a scam.

“It did look convincing, and it sounded like you needed to respond immediately,” said Doreen Sexton, a Mesa resident who got the e-mail.

The e-mail claims to be sent by Mark A. Morgan, identified as “regional director” of the FBI’s Field Intelligence Unit. The e-mail demands the recipient respond within 72 hours, or risk criminal prosecution for money laundering.

Sexton laughed it off, but realized there may be others who could take it seriously: “My mom would certainly go, ‘Oh my goodness, I have to do this.’ ”

Manuel Johnson, spokesman for the FBI’s Phoenix division, said the public can report such scams to the Internet Crime Complaint Center at IC3.gov.

http://www.azcentral.com/community/phoenix/articles/20130903fake-fbi-homeland-security-e-mails-tied-scam.html

5755

Crime Watch: Clever scammers warn against another scam

By Carmen Gonzalez Caldwell
Special to The Miami Herald

This week many of you sent me the email, and I also received one. Needless to say, it’s a scam! It’s funny that the way they word it, telling you about the FBI email warning you against that scam, and yet this is a bigger scam.

Some readers actually fell for this and gave the information they requested. So if you get this email, delete it immediately. It’s not from Homeland Security or Treasury Department. Here’s the email:

SECRET SERVICE, DEPARTMENT OF HOMELAND SECURITY

U.S. DEPARTMENT OF HOMELAND SECURITY

WASHINGTON, DC 20528, USA.

Good day,

This is the Department of Homeland Security we have vital mission: to secure the nation from the many threats we face as well as internet Fraud. This requires the dedication of more than 230,000 employees in jobs that range from aviation and border security to emergency response, from cyber security analyst to chemical facility inspector. Our duties are wide-ranging, but our goal is clear — keeping America safe.

We are happy to inform you that your funds valued at US$10,700,000.00 (Ten million Seven Hundred Thousand United States Dollars) have been approved by the Treasury Department of the United States.

Kindly get back to us for further directives.

Note: Do not reply to any e-mail that comes from the FBI Director Robert S. Mueller III. The FBI director does not e-mail people; He will rather send an agent to your door step in person. Do not fall a victim of scam again, a word is enough for the wise.

Thank you and have a good day.

Signed: Julia Pierson

Director, United States Secret Service

U.S. Department of Homeland Security

Washington, DC 20528, USA

An interesting side note: While the email is totally phony, Pierson is very much the real head of the Secret Service. She also is an Orlando native and former Orlando police officer, and spent time in the Secret Service’s Miami office during the 1980s. She became the agency’s first female director earlier this year.

Read more here: Crime Watch: Clever scammers warn against another scam - Miami-Dade - MiamiHerald.com (http://www.miamiherald.com/2013/09/04/3605436/crime-watch-clever-scammers-warn.html#storylink=cpy)

==================================================

During a routine cleanout of his e-mail inbox, Barry Mawson stopped suddenly when he saw an alert on his computer:

"It says FBI Cyber Crime Division,” Mawson said. “You almost have a heart attack yourself!

The emblem on the message looks official. The alert is very serious, indicating Barry was somehow involved in a child porn investigation. Then, Barry called the FBI, and finished reading the entire message.

"To get rid of this you send in $300 to ‘money-pay,’" Mawson said.

The whole thing is a scam, put out by criminals to scare people into paying up.

"If you pay money, don't these people realize if you pay money this is only the start?” wondered Barry. “Then it's another $300 and another $300."

Barry now has an alert of his own: don't be fooled if this shows up in your e-mail inbox. The FBI reports it's been seeing these kinds of scams using its logo and acronym for years and points out it would never send threatening letters to people demanding payments for internet crimes.

Barry says he's taken in his computer to have it inspected and cleaned out by an expert and installing new security software.

If you get a message like the one Barry got you can file a complaint with the FBI. Clink the link below for more information about filing a complaint.

http://www.kktv.com/home/headlines/Criminals-Using-Fake-FBI-Alert-in-Attempted-Scam---222224391.html

ribshaw

09-04-2013, 08:36 PM

Color me skeptical, but I do hope this has some teeth. There is noting stopping these crooks from operating anywhere in the world.

All those deposed princes, shady barristers and dying Christians who want our help hiding or distributing their billions may finally get theirs.

The Federal Trade Commission and its counterparts in Nigeria signed an agreement last week that will allow them to work together to combat cross-border frauds known as Nigerian or 419 scams.

These scams are a cottage industry in Nigeria, and youâ€™ve no doubt encountered them in your email inbox or on your Facebook page.

The original scam, still a staple, involved a letter from some phony foreign general or deposed prince who, in the wake of some upheaval in a third-world nation, would ask you to temporarily house the old regimeâ€™s billions in your bank account in exchange for a cut of the money.

But over the years, scammers created American soldiers (usually in Afghanistan or Iraq) who need help hiding the cache of millions they stumbled upon during a tour of duty, the barrister who canâ€™t quite find his wealthy clientsâ€™ heirs but would like you to step in and pretend to be one, dying cancer-ridden mothers who need you - a complete stranger â€” to hold their millions for their children or dying Christians or Muslims who have chosen you to distribute their wealth to worthy causes.

More recently, scammers have branched out to scam people on dating sites (usually by posing as a do-gooder traveling abroad) or hijacked victimsâ€™ Facebook pages to try to convince their friends they were robbed while traveling abroad and need a quick, wired loan to get back home. Some have run pet adoption scams, posing as missionaries whose darling pups can't stand the heat in their new African location.

The memorandum of understanding between the FTC and the and Nigerian Consumer Protection Council and the Economic and Financial Crimes Commission calls for the agencies to share some information about complaints, to map out areas that call for collaboration and to assist each other in specific investigations.

FTC, Nigerians strike agreement on inbox scams: Plain Dealing | cleveland.com (http://www.cleveland.com/consumeraffairs/index.ssf/2013/09/ftc_nigerians_strike_agreement.html)

=============================

The author of the article also has some useful information here. Scamfinder! | cleveland.com (http://www.cleveland.com/scamfinder/index.ssf/2011/09/scamfinder_1.html)

5756

ribshaw

09-04-2013, 09:04 PM

So there is a bunch of this scam going on around the country right now. And am not without sympathy as people are truly victims in things like this, its not like they were trying to earn 2% per day with no risk, or help someone smuggle a million in gold from Iraq for a cut. However, I went to the Craigslist website on avoiding scams to see what their warnings were. I have underlined and bolded the ones I think apply.

DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON - follow this one rule and avoid 99% of scam attempts.
NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or other wire service - anyone who asks you to do so is likely a scammer.
FAKE CASHIER CHECKS & MONEY ORDERS ARE COMMON - BANKS WILL HOLD YOU RESPONSIBLE when the fake is discovered weeks later.
CRAIGSLIST IS NOT INVOLVED IN ANY TRANSACTION, and does not handle payments, provide escrow, "buyer protection" or "seller certification"
NEVER GIVE OUT FINANCIAL INFORMATION (bank account number, social security number, eBay/PayPal info, etc.)
AVOID DEALS INVOLVING SHIPPING OR ESCROW SERVICES and know that ONLY A SCAMMER WILL "GUARANTEE" YOUR TRANSACTION.
DO NOT RENT HOUSING OR PURCHASE GOODS SIGHT-UNSEEN - that amazing rental or cheap item may not exist.
DO NOT SUBMIT TO CREDIT OR BACKGROUND CHECKS until you have met the job interviewer or landlord/agent in person.

craigslist | about > scams (http://www.craigslist.org/about/scams)

A local family was without a home Tuesday after answering a Craigslist ad for a rental property in Riverside that turned out to be a scam.

craigslist-scamMark Ames, an above-the-knee amputee who walks with a prosthetic leg, and his wife Sharon, a disabled Navy veteran, rented a home on Aug. 20 through an ad they found on Craigslist.

“It was everything it was supposed to be, except it wasn’t,” Mark Ames said.

Ames told KTLA he dealt with the purported landlord entirely by email and was issued what he thought was a legitimate lease for a year.

“When someone gives you the lease you expect them to be the owner. Not someone make it up,” Ames said.

On Wednesday, a woman identifying herself as the real property manager showed up at the home with a police officer and told them they had to leave immediately because they were trespassing.

“We don’t know where to go or what to do at this point,” Ames said.

The couple went to a nearby Motel 6 where they are now staying with their three children.

“With our money gone it makes it very hard to get into someplace else,” Ames said.

Ames asked KTLA to share his personal contact information in case those who can help want to reach out. His email address is xmarkx71@gmail.com and his phone number is 310-406-7423.

Read more: Family of 5 Homeless After Craigslist Rental Scam | KTLA 5 (http://ktla.com/2013/09/03/family-of-5-homeless-after-craigslist-rental-scam/#ixzz2dyl4L7UR)

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SCUMBAG WHO GOT CAUGHT..

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McMINNVILLE, Ore. (KOIN) — A known con artist accused of defrauding 14 potential rental applicants using the same McMinnville apartment was charged in Yamhill County Friday afternoon.

He faces nine counts of first-degree theft by deception.

Jerry Rosenstiel was arrested at his home in Aurora on Thursday. Investigators claim he duped people into putting down deposits for rental properties he posted on Craigslist that are not his properties.

According to McMinnville police, the investigation began July 23, when a woman contacted investigators to report that she had signed a lease for an apartment at 242 SW Manzanita St. She said she had responded to a rental posting and met with a man who identified himself as ‘Jerry Carpenter’. She agreed to rent the apartment, then signed a lease and paid Carpenter more than $1,000 in cash deposits. The woman said that during the transaction, she observed certain indicators that made her suspicious that this was a possible scam.

Later that day, a second victim contacted McMinnville police with a similar story, saying the suspect had also used the same name, Jerry Carpenter. Over the next two weeks, eight more people came forward, some of whom had responded to a Craigslist ad. In each case, the victim signed a lease and paid a deposit with the understanding that they could move in at the beginning of August.

Investigators eventually identified the suspect as Rosenstiel, a con artist who has been involved in numerous scams over the past several years.

His attorney said Rosenstiel is very sick and needs to be let out of jail.

“It looks to me like he’s got cancer,” the attorney said. “I’m not saying it’s a definitie diagnosis, but it sure looks like it to me.”

The judge wanted proof before even considering whether to release Rosenstiel.

At the hearing Friday, the court was packed with his alleged victims and Rosenstiel’s family members.

His attorney admitted Rosenstiel collected between $1,000 and $2500 in rent and security deposits from several different families after they responded to a Craigslist ad to rent a house on SW Manzanita Street in McMinnville.

Rosenstiel’s attorney then asked the judge to let Rosenstiel out if he offered to repay all the victims within seven days — about $16,000.

No one from his family would talk with KOIN 6 News about the case.

KOIN 6 News asked him, “Why can’t his wife just give the money back?”

“You’d have to ask her,” the attorney replied.

“She said to ask you.”

“You’ve come full circle then.”

Rosenstiel’s criminal record dates back to the 1970s and includes more than 120 charges.

Con man charged in McMinnville rent ruse | KOIN.com (http://www.koin.com/2013/08/16/con-artist-arrested-in-mcminnville-rent-scam/)

ribshaw

09-06-2013, 07:48 AM

One in ten have fallen victim to rental fraud

A new study by people and business finder 192.com reveals that one in ten people have been scammed by a landlord or lodger [3 September 2013]

One in ten have fallen victim to rental fraudRental fraud happens when would-be tenants are tricked into paying advance fee to rent a property. Last year The National Fraud Intelligence Bureau warned students to watch out for potential scams when looking for university rental accommodation at this time of year.

Fraudulent landlords are making are making £755 million a year from the scam, and costs individuals £2,394 per victim. 192.com has recently launched Background Reports, a service offering protection against deception and fraud.

Protect yourself with advice from the National Landlords Association:

Tenants should always visit the property with the landlord or letting agent before handing over a deposit.
Where possible, tenants should pay a deposit using a credit card or via a direct debit to gain some protection from the banks - never hand over cash.
Tenants should look for professional landlords who are members of a professional body such as the NLA.
If using a letting agent, tenants should look for tenants who are members of a trade body such as The UK Association of Letting Agents (UKALA) or the Association of Residential Letting Agents (ARLA).
UKALA members are required to have Client Money Protection in place which means that all monies given to the agent are insured.
If the tenant is not sure about a letting agent, they should call trading standards before entering into any contracts.

Read more on the 192.com website.

Please note: Action Fraud is not responsible for the content on external websites.

To report a fraud and receive a police crime reference number, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.

One in ten have fallen victim to rental fraud | Action Fraud (http://www.actionfraud.police.uk/one-in-ten-have-fallen-victim-to-rental-fraud-sept13)

ribshaw

09-06-2013, 08:23 AM

I tried this and was not able to see any information about myself, probably due to the credit freeze as indicated by Clark in the article. There is also an option on the site to opt out of tracking. The credit freeze I really believe is one of the most important things a consumer can do to protect their identity, opting out is just a matter of how much crap you want in your mail box.

See what marketers know about you

By Clark Howard

ClarkHoward.com

Marketing organizations that have been super secretive are now facing scrutiny in the aftermath of continuing revelations about government spying.

One called Acxiom that I've talked about in the past reportedly has massive documentation on who you are, what activities you like, what cars you own, what your mortgage is, what kind of ailments you have, etc.

This data can be continually crunched and packaged for sale thanks to the miracle of parallel computing technology. But now for the first time, you can get a peek at what's in your Acxiom file.

Just go to AboutTheData.com and you can answer a series of questions to fully verify that you are who you say you are. Then you can see the info they have on you that they believe is fact -- but may actually be fiction.

Out of a sample group of 4 people on my show staff, two were able to see their records and two weren't. The two of us who couldn't probably couldn't because we've frozen our credit.

My executive producer Christa was able to see her file. It contained incorrect info including the wrong age of her kids, the wrong number of children, and the wrong income. My associate producer Joel's file was even more radically wrong. It listed him as a blue collar craftsman who completed high school, but had no college education. Joel is, in fact, a graduate of Kennesaw State University and not a craftsman -- unless you count drinking craft beer as a qualifier!

So these data brokers are out marketing what they claim is a precisely fine-tuned dossier they have on you. And it many cases it's kerflooey! "All the inaccurate data, all the time." How's that for an advertising slogan, Acxiom?!

Fortunately, you have the option to go to www.AboutTheData.com and opt out so they can stop compiling data on you!

One caveat, though: There's been a lot of widespread suspicion that the opt out form may be a backdoor kind of way for Acxiom to collect further data on you. The company denies it, but that hasn't quelled the skeptics. Use your own best discretion before taking the leap.

See what marketers know about you | www.clarkhoward.com (http://www.clarkhoward.com/news/clark-howard/consumer-issues-id-theft/see-what-marketers-know-about-you/nZmhJ/)

ribshaw

09-06-2013, 08:32 AM

So this is a hoax, but even if it wasn't who wants to spend 5 days vacation getting pulled by a tug boat?

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Carnival Cruise Free Vacation Packages Survey Scam (http://www.hoax-slayer.com/carnival-cruise-survey-scam.shtml#.UieoUUq_L2Q.facebook)

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kschang

09-06-2013, 08:42 PM

Here's a good one:

Ocala Police warn of man scamming money to build bridge in Malaysia - MajorGeeks (http://www.majorgeeks.com/news/story/florida_friday_ocala_police_warn_of_man_scamming_m oney_to_build_bridge_in_malaysia.html)

Guy's tease is "he's a contractor building bridges in malaysia, and he hits up his "dates" for money to finish the job. Hahaha!

ribshaw

09-06-2013, 09:07 PM

I hate to mother folks, but a credit freeze brings crap like this to a standstill. When they run the social, the phone store won't be able to get a report back and if they are smart they won't issue the phone. Let someone else spend their time fixing nonsense like this.

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By Brett Clarkson, Sun Sentinel

7:06 p.m. EDT, September 6, 2013

Call them the iPhony five.

A group arrested at a Boca Raton mall this week are the latest examples of an emerging iPhone scam targeting the U.S. east coast, say Boca Raton police.

The scheme plays out when swindlers obtain other peoples' personal data – for instance, Social Security numbers – and then use that information to buy iPhone 5s at discounted prices in malls in South Florida and along the eastern seaboard, police say.

The phones, paid for in cash at prices of $199 and $250, are then re-sold for a higher price.

In Boca, the five suspects, all of whom were from New York, were found Wednesday afternoon with 28 iPhones in the trunk of their Volkswagen Jetta, police said.

Five arrested at Boca Raton mall part of iPhone-buying scam, say police - South Florida Sun-Sentinel.com (http://www.sun-sentinel.com/news/palm-beach/boca-raton/fl-boca-iphone-buying-scam-20130906,0,1906183.story)

ribshaw

09-06-2013, 09:12 PM

Whether the scam's a supposed sweepstakes, a grandchild stranded in a foreign country or a deposit on a house rental that doesn't exist, there's often a MoneyGram involved.

This fall, however, the Texas-based company is giving some of that cash back as part of a $100 million federal settlement.

The Oregon Department of Justice has identified at least 47 Oregonians who lost money on scams that used MoneyGrams to transfer the funds. Those consumers lost a total of $190,585.

Consumers who feel they lost money in scams using MoneyGram between Jan. 1, 2004, and Aug. 31, 2009, may be eligible for a refund. Contact the Oregon Attorney General's Office at 877-877-9392. Those complaints must be filed with any available evidence by Nov. 15.

As part of a federal settlement that helped it avoid prosecution, representatives of the company based in Dallas, Texas have admitted it failed to maintain an effective anti-money laundering program and, in essence, helped con artists commit wire fraud, according to the U.S. Department of Justice. MoneyGram will pay $100 million into a compensation fund for victims nationwide of various scams that involved MoneyGram payments.

The Desk: Refunds available for scam victims who used MoneyGram | OregonLive.com (http://www.oregonlive.com/business/index.ssf/2013/09/the_desk_refunds_available_for.html)

ribshaw

09-06-2013, 09:28 PM

The Pulaski County sheriff's office says some of its employees may have been scammed by a company that said it would produce yearbooks for the agency but never delivered the finished product.

Lt. Carl Minden said APL Imaging took photographs of sheriff's office employees about a year ago and also took orders for a yearbook in which the images would ultimately be compiled.

But the yearbook was never delivered and the company hasn't been returning phone calls, Minden said. It appears to have declared bankruptcy, leaving anyone who paid for the yearbook in advance seemingly out of luck.

Minden is among an unspecified number of employees who lost the money, which he said was about $60 per book.

"The company’s owner has a history of scamming consumers by taking their money, producing some of the product, not returning call, and then filing bankruptcy," the sheriff's office wrote in an email to employees Thursday. "The owner has scammed many agencies across the Southeast including law enforcement and at least one military readiness group."

Minden said the sheriff's office didn't lose any money since the orders were actually placed by individual employees. Because of that, Pulaski County "has no recourse for action," though individuals who lost money can try to get it back, the email said.

Minden said employees were required to have their pictures taken for the book, but that no one was required to buy it.

He said it's possible the bankruptcy was legitimate and the company intended to fulfill the orders before declaring bankruptcy. But, he said, online posts from other agencies suggest other agencies have encountered similar problems.

"To use the word scammed is a strong word," Minden said. "I don't want to put myself in a liable situation. We have not received our product yet, and I don't know if we will. Because we can't contact them. Nothing's valid anymore."

Minden said the agency has been in contact with the Better Business Bureau.

The email to sheriff's office employees included a phone number for APL Imaging. A call there Friday morning returned a message saying its mailbox was full.

Sheriff's office: Yearbook for employees possibly a scam (http://www.arkansasonline.com/news/2013/sep/06/sheriffs-office-says-employees-may-have-been-scamm/)

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ribshaw

09-07-2013, 11:56 AM

Outsmarting investment fraud 1/3 Total of about 50 minutes in 3 videos.

http://www.youtube.com/watch?v=bxGv0sxQ1n0

ribshaw

09-07-2013, 11:57 AM

Part II, this gets in to the meat.

http://www.youtube.com/watch?v=gGiCm-U8az8

ribshaw

09-07-2013, 11:59 AM

Conclusion.

http://www.youtube.com/watch?v=5MpAxhDLPHo

ribshaw

09-07-2013, 12:42 PM

This USUALLY involves one of two situations, vacant property and people in financial trouble. For a buyer, always get title insurance and turn over bear minimum earnest money in a transaction, especially if a private seller. For someone in trouble paying your mortgage never sign your deed over to someone, or make payments to them in hopes they will work something out with the bank.

http://www.youtube.com/watch?v=lMUwADXRcbs&feature=youtu.be

================================================== ========

This goes very well with the video and adds in reverse mortgages, which is one of those things that can be legitimate, but is an industry fraught with scammers.

By Polyana da Costa, Bankrate.com
Sep. 7, 2013

Thousands of homeowners are duped in mortgage scams each year.
Getty Images

A slow economy is ripe for scams

The sluggish economy and slowly recovering housing market create the perfect environment for mortgage scams, with desperate homeowners as easy prey for scammers. The crooks say what you want to hear. They make the deal sound attractive and legit. You are suspicious at first, but somewhere along the way, you give them money or sign documents you were not supposed to sign. Soon, you realize you've been scammed.

Thousands of homeowners are duped in mortgage scams each year, and con artists don't have to look far for victims, says Yolanda McGill, senior counsel for the Fair Housing & Fair Lending Project, an initiative by the Lawyers' Committee for Civil Rights Under Law in Washington, D.C.

Most of the victims reach out to the scammers themselves through Internet searches, she says. She bases her conclusion on thousands of complaints that her organization has received from mortgage scam victims.

"The people showing up in our databases are people who are looking for help on the Internet," she says.

Instead of finding help, they find a scam.

You should be aware of the following common mortgage scams.

1. A theft in-'deed'

Lured by promises of a better interest rates and lower mortgage payments, some borrowers end up signing away their houses.

Thieves pose as mortgage professionals or attorneys who pledge to modify or refinance the homeowner's mortgage. The borrower is asked to sign the supposed modification papers. One of the pages in the stack of documents is a deed that once signed, transfers ownership of the property to the perpetrators or a company related to them.

While many homeowners would be able to spot such an ingenious trick, others don't bother to read or simply don't understand the documents they sign, says Brian Sullivan, a U.S. Department of Housing and Urban Development spokesman.

Often, borrowers are so focused on the numbers, including the new, low interest rate and the monthly mortgage payment, that they forget to read the rest of the documents and the fine print. They rely on what the con artist explains to them, Sullivan says.

"If somebody is smiling at you and promising you the world, alarm bells should be going off," he says. Also known as bait and switch, this mortgage scam is specially a threat for borrowers who can't read English well.

2. Phantom of the loan mod

Do not pay upfront fees for a loan modification. Homeowners have been warned about this repeatedly through numerous education campaigns. Despite the warnings, scam stories of borrowers who paid $1,000 to $5,000 for a loan mod but received nothing in exchange are widespread.

"People are starting to pick up on the fact that an upfront fee is illegal," McGill says. "But the scammer will say 'we are not charging you for the services but for doc preparation,' or they'll offer you a 30-day money-back guarantee."

How to cope with higher mortgage rates

Many borrowers fall for the promises, especially when they are dealing with what sounds like a government program. Mortgage scams will use abbreviations and program names like HAMP, HARP, Hope Now, EHLP -- you name it and a scammer will most likely try to use it. Borrowers also are fooled by professional appearances, McGill says. As with all other professions, you will sometimes find there are unscrupulous lawyers and mortgage professionals.

"They think because they saw it on a TV commercial or (because) it sounds like a law firm it's legitimate, but that's not the case," she says.

3. Your mortgage has been sold – NOT

Banks often buy and sell residential mortgages, and con artists take advantage of that. They create fake companies, pretend they are the new owners of your loan and take your payments until you figure out it's a scam. Most borrowers don't learn about the mortgage scam until their actual lender notifies them that their mortgage is in default. Receiving a letter notifying you that your mortgage was sold from lender A to lender B doesn't always mean a scam. Often, when a mortgage is sold, lender A continues to service the loan and nothing changes for the borrower. But in some instances, the loan buyer becomes the new servicer and borrowers are required to send their payments to lender B instead.

Under federal rules, whenever the servicer on a loan changes, the borrower should be notified with a "Goodbye" letter from the current servicer and a "Hello" letter from the new servicer, Sullivan says.

Avoid these 6 mortgage relief scams

If you ever get a letter stating your loan was sold, verify it before you mail the payment. "Illegitimate people use legitimate channels," McGill says. "Call your servicer to check. Don't buy into the appearance of legitimacy."

And don't rely on the phone numbers listed on the letters, as it may lead back to the scammer.

4. Steer clear of reverse mortgage scams

Elderly homeowners are easy targets for scammers. They are more vulnerable and more likely to have equity in their homes.

Fraudsters engineer several types of reverse mortgage scams. Reverse mortgages allow homeowners who are 62 or older to borrow against the equity in their homes without having to make monthly mortgage payments. Normally, the scammer wants to steal the equity in the home or use the senior citizens as straw buyers and borrowers.

"They use sleek marketing campaigns," says Chris Moessner, formerly president of Moessner & Associates, a research firm in Washington, D.C. "They'll say 'we'll allow you to keep your house and you'll be able to pay your bills, but this is the easiest way for you to get cash when you need it.'"

In some cases, the victim may get a lump-sum payment in the mortgage scam but is then evicted by the scammer after signing the documents. In one scam, con artists recruit an innocent senior to be the fall guy in the fraud. The scammers buy a distressed property, then manipulate the senior into signing the deed, taking ownership of the house. Once the house is in the senior's name, the scammers use an inflated appraisal to get a reverse mortgage. They steal the money, and the senior and the lender get stuck with the loss.

5. Avoid lease/buy-back agreements

Thanks to public records, con artists in many states know when a home is in foreclosure. Once they identify distressed borrowers, they persuade them to sign a quitclaim deed, which transfers the property ownership into a land trust.

In lease/buy-back mortgage scams, the perpetrator promises the deed transfer is temporary and you'll be able to rent the home from the new owners and eventually repurchase the home after you get back on your feet.

You are told it is necessary to sign the document so the company can make the mortgage payments and stop the foreclosure process. In addition, the scammer presents a lease/buy-back agreement, which specifies how much the borrower will pay in rent and explains that the borrower has the option to buy back the property after a certain period.

Depending on how much you owe on the home, the scammer may simply collect the rent from you and let the bank throw you out on the street or lock you out and sell the house themselves.

"If people are coming to you asking you sign away your home so they can make payments for you, run for the hills," Sullivan says.

ribshaw

09-07-2013, 01:02 PM

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MESQUITE (KSNV MyNews3.com) -- Mesquite police have arrested a 36-year-old woman for allegedly running a scam claiming her 7-year-old son had a rare liver cancer.

Detectives arrested Shawnanna Starr Flores on Friday evening.

Police said they believe Flores falsely represented her son as having a rare malignant liver cancer known as hepatoblastoma.

A benefit car wash held at a gas station on Aug. 24 raised $404.

A fund for the child was created at a Wells Fargo bank, and donation jars were placed in businesses around the city.

Flores was charged with felony fraud, obtaining money under false pretenses, felony child abuse and felony theft.

Child Protective Services is also investigating the case.I

If you have additional information on the case or donated to the Rodrigo Cancer Fund, you are asked to contact Mesquite Det. Ron Richmond at (702) 346-5262.

Mesquite mom arrested in alleged cancer fraud scam - Las Vegas MyNews3 - KSNV (http://www.mynews3.com/content/news/story/Mesquite-mom-arrested-in-alleged-cancer-fraud-scam/pm9IXJhg20Oz9ZwEJcWUhg.cspx)

ribshaw

09-11-2013, 07:41 AM

Nelson police are sounding the alarm bells on a pyramid scheme making its rounds in the Heritage City under the disguise of a “women’s circle”.

The scheme, or “circle” as NPD Sgt. Paul Bayes describes, requires women to provide a $5,000 gift to another woman in the circle.

Bayes said eventually the first woman will move to a different level in the Circle and where she is promised a gift herself.

“This gift is anticipated to be much larger than the gift originally given,” Bayes explains.

“Although those behind the women’s circle claim it is not a hierarchy or pyramid, it is.”

“The only way for individuals to receive gifts greater than what they are contributing is through the loss of others in “circle”,’ Bayes adds.

Police said because there is no new money created in the circle, the scheme is simply a fraud that allows the original recruiters to take money from the new members.

Eventually, when no new recruits come into the circle, the gifters will have lost their money.

Pyramid schemes are illegal under section 206 (1) (e) of the Criminal Code and Competition’s Act.

“Income received from the scheme must also be declared with Canada Revenue and could result in tax evasion charges if not declared,” Bayes said.

Police want any victims to this fraud to contact Nelson RCMP or the Canadian Anti-Fraud Centre at 1-888-495-8501.

Police warn public of pyramid scheme making rounds in Nelson | The Castlegar Source (http://castlegarsource.com/news/police-warn-public-pyramid-scheme-making-rounds-nelson-26336#.UjBkGz-nfK4)

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ribshaw

09-11-2013, 07:53 AM

For those who don't know who the Yahoo Boys are check out facebook they let them operate in the open.

https://www.facebook.com/pages/Nigerian-Association-of-Yahoo-Boys/232012743539533
https://www.facebook.com/groups/242458785871867/

Here is an excerpt

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https://www.facebook.com/groups/405581236161374/

And again, kitty photos are so yesterday.

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https://www.facebook.com/groups/477106165665718/

This is now a private group, but you can guess what they do.

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Spy Service Exposes Nigerian ‘Yahoo Boys’

A crude but effective online service that lets users deploy keystroke logging malware and then view the stolen data remotely was hacked recently. The information leaked from that service has revealed a network of several thousand Nigerian email scammers and offers a fascinating glimpse into an entire underground economy that is seldom explored.
The login page for the BestRecovery online keylog service.

The login page for the BestRecovery online keylog service.

At issue is a service named “BestRecovery” (recently renamed PrivateRecovery). When I first became aware of this business several months ago, I had a difficult time understanding why anyone would pay the $25 to $33 per month fee to use the service, which is visually quite amateurish and kludgy (see screenshot at right).

But that was before I shared a link to the site with a grey hat hacker friend, who replied in short order with the entire username and password database of more than 3,000 paying customers.

Initially, I assumed my source had unearthed the data via an SQL injection attack or some other database weakness. As it happens, the entire list of users is recoverable from the site using little more than a Web browser.

The first thing I noticed upon viewing the user list was that a majority of this service’s customers had signed up with yahoo.com emails, and appeared to have African-sounding usernames or email addresses. Also, running a simple online search for some of the user emails (dittoswiss@yahoo.com, for example) turned up complaints related to a variety of lottery, dating, reshipping and confidence scams.

The site was so poorly locked down that it also exposed the keylog records that customers kept on the service. Logs were indexed and archived each month, and most customers used the service to keep tabs on multiple computers in several countries. A closer look at the logs revealed that a huge number of the users appear to be Nigerian 419 scammers using computers with Internet addresses in Nigeria.
The seriously ghetto options page for BestRecovery web-based keylogger service.

Also known as “advance fee” and “Nigerian letter” scams, 419 schemes have been around for many years and are surprisingly effective at duping people. The schemes themselves violate Section 419 of the Nigerian criminal code, hence the name. Nigerian romance scammers often will troll online dating sites using stolen photos and posing as attractive U.S. or U.K. residents working in Nigeria or Ghana, asking for money to further their studies, care for sick relatives, or some such sob story.

More traditionally, these miscreants pretend to be an employee at a Nigerian bank or government institution and claim to need your help in spiriting away millions of dollars. Those who fall for the ruses are strung along and milked for increasingly large money transfers, supposedly to help cover taxes, bribes and legal fees. As the FBI notes, once the victim stops sending money, the perpetrators have been known to use the personal information and checks that they received to impersonate the victim, draining bank accounts and credit card balances. “While such an invitation impresses most law-abiding citizens as a laughable hoax, millions of dollars in losses are caused by these schemes annually,” the FBI warns. “Some victims have been lured to Nigeria, where they have been imprisoned against their will along with losing large sums of money. The Nigerian government is not sympathetic to victims of these schemes, since the victim actually conspires to remove funds from Nigeria in a manner that is contrary to Nigerian law.”

Oddly enough, a large percentage of the keylog data stored at BestRecovery indicates that many of those keylog victims are in fact Nigerian 419 scammers themselves. One explanation is that this is the result of scammer-on-scammer attacks. According to a study of 419ers published in the Dec. 2011 edition of Cyberpsychology, Behavior, and Social Networking (available from the Library of Congress here or via this site for a fee), much of the 419 activity takes place in cybercafes, where “bulk tickets are sold for sending spam emails and some systems are dedicated to fraudsters for hacking and spamming.”

Spy Service Exposes Nigerian ‘Yahoo Boys’ — Krebs on Security (http://krebsonsecurity.com/2013/09/spy-service-exposes-nigerian-yahoo-boys/)

ribshaw

09-11-2013, 08:09 AM

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UTAH COUNTY — Police from two Utah County agencies are looking for a trio of scam artists who used tricks by sleight of hand to swindle businesses out of money.

Orem Police Lt. Craig Martinez said Tuesday the two women and a man, dressed in ball caps and driving a minivan, hit Walmart stores in Orem as well as in Lindon on Sept. 4.

In the Orem case, detectives said the man distracted one worker at the customer service desk while the two women confused another employee. At one point, surveillance video showed one of the women reaching into the cash register and pulling out a stack of hundred dollar bills right under the confused worker's nose, siphoning away an undisclosed number of bills from the bottom of the stack.

"There's a lot of confusion going around," Martinez said. "You've got one or two cashiers against three people that know what they're doing. It's quite difficult."

At the center of the ruse was a simple scam police said they have seen many times in the past. Known as "short changing" or "change raising," the con first makes a legitimate purchase or money exchange. After that, however, the con will ask for more money exchanges until the issue of how much money is flowing from one party to another is confused enough that money can disappear without the victim immediately knowing.

The Orem Walmart surveillance video showed one woman passing a large bill in an apparent attempt to purchase a gift card. Martinez said the women were able to confuse the matter to the point that the worker seemed to simply watch as the women reached into the till and pulled out stacks of money two different times. Each time, the surveillance video showed one of the women spiriting money away.
Related Story
California women travel to Utah in fake check scam, police say
Cottonwood Heights police caught two women they said were using fake checks and stolen credit cards to steal from stores in the Salt Lake Valley Friday.

"This one is the first one I've seen where they actually reach over, grab the money from the cash drawer, and then steal some off the bottom," Martinez said. "It's almost like a card trick."

Martinez said the women told the worker they were a Swedish mother and daughter who didn't fully understand matters of currency.

"The cashiers and the employees at Walmart are always very customer oriented, so they try to be as friendly as possible," Martinez said. "These people prey on that as well."

Another man was caught on surveillance video at the customer service desk and then rendezvousing with the women in the parking lot is believed to be an accomplice, Martinez said. The three left in a minivan.

The trio similarly took advantage of workers at the Walmart in Lindon, Martinez said.

Lindon City Police Chief Cody Cullimore did not immediately return calls and emails Tuesday.

Orem investigators said it's possible the three suspects may be traveling across the country, perpetrating the same scam wherever they stop.

Regardless, police said the man and women could also be locals and they're urging retailers to watch for them.

Anybody with information about the individuals seen in the surveillance video or about what took place can call the Orem Department of Public Safety at (801) 229-7070.

Scam artists use sleight of hand, police say | ksl.com (http://www.ksl.com/?sid=26805124&nid=148)

ribshaw

09-11-2013, 08:24 AM

Be on the lookout for fake exchanges. These scams are targeting both individuals and businesses. Many scams are targeting seniors telling them they need something else. In short, starting in October people without insurance will be able to buy insurance on exchanges. People with Medicare and Medicaid will see almost no change. No Obamacare cards are going to be mailed out, unsolicited phone calls are very likely a scam.

Here is a link to the government website. https://www.healthcare.gov/ GO HERE IF YOU HAVE QUESTIONS!!

Using Obamacare as bait, scam artists target consumers and business owners

GASTON DE CARDENAS/REUTERS - Scammers in several states are trying to capi*tal*ize on confusion over the health care overhaul.

By J.D. Harrison, Published: September 10 E-mail the writer

A number of health insurance scams have emerged in recent months as crooks try to cash in on confusion over the health care reform law, and some officials say they are bracing for more in the months ahead.

Most of the schemes target uninsured individuals and employers, many of whom will soon be required to purchase a minimum level of health coverage or pay a tax penalty. In some cases, scammers have set up bogus Web sites intended to look like the law’s new health insurance exchanges, where individuals and small business owners will be allowed to shop for coverage starting on Oct. 1.

Sites using the domains washingtonhealthexchange.com and mdhealthexchange.com have already been reported and taken down.

“These exchanges are designed for both individual consumers and businesses, so by definition, these fake ones are trying to lure both consumers and business owners into a trap,” Jim Quiggle, a spokesman for the Coalition Against Insurance Fraud in Washington, D.C., said in an interview.

So far, “scams specifically targeting businesses are in the minority,” Quiggle said, but he says he expects the incidence may pick up once the real health care exchanges open for enrollment next month — particularly because there is still so much confusion and misinformation surrounding the law.

In the last few months, several polls have shown that a large number of people still do not know exactly what the health law’s requirements entail, to whom they apply, or whether the legislation is still in effect. One by the Kaiser Family Foundation showed that 42 percent of people did not know the law still stands, with many believing it had been repealed by Congress or overturned by the Supreme Court.

“When you go out into the neighborhoods, many people still have no idea what the law means for them,” Michael Flagg, director of communications for the District’s Department of Insurance, Securities and Banking, said in an interview. “It leaves a lot of vulnerability.”

In threatening e-mails and phone calls, sometimes masquerading as government officials, some scam artists have offered to help individuals avoid tax penalties by signing them up for plans that meet the federal requirements.

Of course, in order to register, consumers and employers must hand over private health records and financial information.

In Maryland, scam artists have started calling residents claiming they need to verify Medicare ID and Social Security numbers for purposes associated with the health law, according to reports published by the Coalition Against Insurance Fraud.

In New York and Florida, meanwhile, scammers have been traveling door-to-door, asking whether individuals currently have health insurance. If not, some individuals have reportedly been threatened with prison time if they do not sign up for coverage on the spot, according to the coalition.

“Home-based entrepreneurs especially need to be mindful of strangers knocking on their doors with these insurance schemes,” Quiggle said.

So far, similar schemes have been reported in more than 20 states.

“If somebody calls and offers to sign you up for $500, whether you’re a business owner or individual consumer, you just have to hang up,” Flagg said, noting that the actual health insurance exchanges are not open for business yet.

ribshaw

09-11-2013, 08:33 AM

Cellphone shops hit by fancy phone scam

September 11 2013 at 01:30pm
By LEE RONDGANGER

Private investigators Seelan Pillay and Beaver Shanmogum of Bhopa Investigations were hired by the owner of a Cell C franchise to probe alleged fraudulent activity.

Durban - Cellphone shops across Durban may have been swindled out of millions by a syndicate that pays unemployed people cash for high-end handsets they fraudulently obtain.

The scam, in which bogus customers take out cellphone contracts using fake IDs, payslips and bank statements, came to light when a local Cell C store investigated why hundreds of people, who were contacted for falling behind with payments, denied taking out the contracts.

“These were people who had numerous contracts taken out on their names,” Seelan Pillay, a private investigator hired by the franchisee, said on Tuesday.

In the past month alone the Cell C franchise owner, who has about 30 shops, allegedly lost more than R1.5 million to the syndicate whose tentacles are believed to stretch across the province.

At the weekend, two women recruited by the syndicate were arrested by police with the help of private investigators.

The women, aged 25 and 22, were in the process of taking multiple contracts on fancy cellphones when their actions raised the suspicion of the store manager.

Pillay and his Bhopa Investigations colleague, Beaver Shanmogum, interviewed the women at the shop and said they established that both were lying about the details they submitted.

They were not the people in the ID books they presented, and not employed by the KwaZulu-Natal Department of Education as their salary slips purported to show, Pillay said.

Chatsworth police were called and the women were arrested.

One of the women, arrested on Saturday, appeared in court on Tuesday and the other, arrested on Sunday, was expected to appear in court on Wednesday.

The investigators said they had uncovered the details of at least 200 people whose IDs had been cloned by the syndicate and used to take out cellphone contracts.

Pillay said expensive cellphones such as the Samsung S3 and S4, BlackBerry Q10 and Apple iPhones were the preferred choice of the alleged con artists.

The phones retail from R8 500 to R9 400.

“A pattern emerged and we realised we were dealing with serious fraudsters.

“We have established that they made off with more than R1.5 million at one franchise and we think it may be much more if we had to count the other places which have been hit,” he said.

Pillay believes the syndicate may have struck stores across the province.

One victim had 11 cellphone contracts taken out in his name.

A retired a couple were dumbfounded when they were told that they had fallen behind on the payments of their eight cellphone contracts.

Pillay said from preliminary investigations it appeared that the recruits were given R1 000 for every cellphone they brought to the syndicate.

One of the suspects arrested at the weekend had said that she and others were recruited by a woman in uMlazi, he said.

Shanmogum said that after a recruit was given a fake identity document, payslip and bank statements, he or she would be sent to up to six cellphone shops in a day to apply for contracts.

All of the identity documents had the right ID numbers and names on them but fake pictures. The payslips all purport to be from the KZN education department.

“Depending on how much their payslips said they earned they could qualify for three contracts at one store,” Shanmogum said.

“They will then take those same papers to other stores and apply for more contracts and in no time they could make off with at least R60 000 to R100 000 in cellphones.”

After taking possession of the phones, the recruits would meet the syndicate members in the CBD where they would exchange them for cash.

It is not yet known from where the syndicate generates the fake IDs or the fraudulent payslips.

Dhurmalingam Subramoney said he and his wife Mary of Kharwastan, Chatsworth, were stunned when told that they were not up to date on the payments of eight cellphone contracts in their name.

Over one day in July, fraudsters were able to get contracts for three iPhones and five BlackBerrys worth nearly R60 000, and racked up thousands of rand in calls.

“When that woman called me to say I had all these phones I told her she was crazy,” Subramoney said.

“I do not have any accounts with any firms. Everything I have I pay cash for - always have and always will,” he said.

“Our phones are all cash phones and when we want airtime we go and buy airtime. I don’t know where they think we will take so many phones on contract.”

Cell C’s executive head of communications, Karin Fourie, said identity theft was a problem for all service-related industries and not only the mobile industry.

“The South African public must be aware of how easily their identities can be assumed. Criminals in this area spend months taking over someone’s identity and use it to perform criminal activities,” she said.

Richard Boorman, spokesman for Vodacom, said: “We’re not aware of organised fraud (along) these lines taking place in our stores.

We’ve got an active fraud prevention team and work with the authorities to prosecute the isolated cases that sometimes take place.”

Police spokesman, Captain Thulani Zwane, said police were investigating two charges of fraud against the arrested women. He said that while investigations were continuing, police believed the incident was isolated.

“We are not aware of any syndicate,” Zwane said.

However, Pillay showed the Daily News their case file with the bogus ID documents of 200 people, used to get contracts.

“Unfortunately, we have not been able to track them down because the addresses provided by the syndicates were incorrect or did not exist,” he said. “We want people to come forward so we can build a case around these people.”

Cellphone shops hit by fancy phone scam - Crime & Courts | IOL News | IOL.co.za (http://www.iol.co.za/news/crime-courts/cellphone-shops-hit-by-fancy-phone-scam-1.1576169#.UjBwnD-nfK4)

ribshaw

09-11-2013, 08:38 AM

VEHICLE WRAPPING SCAM

5814

Scam Alert: Suspects offering to wrap vehicle with ads
Posted: Sep 10, 2013 10:03 PM EST Updated: Sep 10, 2013 10:08 PM EST
By Breann Bierman - email

(Source: CBS 5 News) (Source: CBS 5 News)
QUEEN CREEK, AZ (CBS5) -

Authorities are warning of a scam where victims get a bogus check and end up wiring money out of their own account.

The Maricopa County Sheriff's Office said it has received multiple reports of an email circulating with an offer to wrap a vehicle with advertising graphics for well-known companies.

In the email, the victim is told they will receive between $300 and $400 per week to drive around with advertising graphics wrapped around their cars.

The victim is asked to provide their contact information and then the scammer offers to send them a check for a larger amount of money, such as $1,800.

The email instructs the victim to deposit the check, take out the first week's pay and wire transfer the rest to a graphic company which will customize the advertising wrap for the victim's vehicles.

Once the bogus checks are deposited, the victims end up wiring money from their account to the scammer. When the check bounces, the victim has lost whatever money was wired.

If you have been a victim of this scam or would like more information, call the Maricopa County Sheriff's Office at 602-876-1011.

Scam Alert: Suspects offering to wrap vehicle with ads - CBS 5 - KPHO (http://www.kpho.com/story/23397788/scam-alert-suspects-offering-to-wrap-vehicle-with-ads)

==============================================

PHOENIX -- A Valley woman thought she had come across a great job opportunity . But then she found out that it was a scam.

Like many of us, Lea Rogers is looking for ways to make a little extra cash. So, she turned to the internet. "I had signed up for a bunch of survey offers. You know, like surveys at home," Rogers tells 3 On Your Side.

And that's when Lea receive an email offer from Monster Energy Drink, which is a huge company.

Monster asked Rogers, "Would you wrap your car with our ad for $300 weekly?" Of course, Rogers said absolutely, because it was easy money.

"If you're getting $1,200 a month, I mean, who wouldn't think that's a great idea especially since I have three jobs, and that would cut out one, maybe two, so I wouldn't have to work as hard. Very appealing,"she says.

Wrapping your car is fairly popular these days. It means putting a plastic coating with a company's business and logo around your entire vehicle. As you drive around on your daily errands, your vehicle automatically as a driving billboard.

Rogers accepted the offer and then, she received a Fed Ex package with a check for $2,330.

"Wow," Rogers thought. $2,330 in advance. She thought this gig was going to be better than she had first imagined.

However, she couldn't keep all the money. She was instructed to keep just $300 for her first week and then forward the rest to the graphic artist who would make the plastic coating to wrap her car.

"This is supposedly the first payment with the $300 I'm supposed to take out and the rest is supposed to cover the auto body wrap."

Rogers went on to say, "They were asking that I MoneyGram or wire this to their headquarters."

But, Rogers was suspicious, and wondered why a company would send her so much money and actually trust her with that much in advance.

So, she contacted 3 On Your Side. "I can't afford to do anything that's going to take away money. I need to be putting money in my account, not taking out," she says.

3 On Your Side has exposed this scam numerous times. Consumers like Rogers would deposit the check, wire money to the so-called graphic artist, and by the time her bank discovers the check is worthless 3 days later, the scammer has already received the money. The bank then holds Rogers accountable, meaning she is out the entire $2,330.

Monster sent 3 On Your Side an email when we told them about Rogers. The email confirmed: "This is in fact a scam."

Rogers says she's thankful she didn't fall for it, and hopes this story helps others who are looking to make a little extra money.

"That would make me feel really good that not only did I stop the stupid idiots from doing this to somebody else but I really want to humiliate the crap out of these people!" she says.

3 On Your Side always advises to never wire money to someone you don't know. Remember our motto: "If they ask you to wire, then they're a liar." That means if you're ever asked to wire or transfer money, you're being scammed.

http://www.azfamily.com/news/consumer/Valleyy-woman-wonders-if-wrapping-her-vehicle-is-a-scam-222996951.html

ribshaw

09-11-2013, 08:40 AM

Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other Investors
Guilty Pleas of Two Conspirators Also Unsealed Today
U.S. Attorney’s Office September 05, 2013

District of Maryland (410) 209-4800

BALTIMORE—A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013, and unsealed today upon the arrest of the defendants.

The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey, and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.

The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.

According to the 10-count indictment, Richard Shusterman was a shareholder and president of International Portfolio Inc. (IPI). Robert Feldman was part owner of IPI and was also the president of United Consulting Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.

According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber operated Account Receivable Services LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.

From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts that the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.

To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.

The indictment alleges that Shusterman, Rosenberg, Kuber, and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber, and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.

Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman, and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman, and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.

Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman, and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.

The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.

Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey, and is expected to have his initial appearance in U.S. District Court there today.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

Robert Feldman and Douglas Kuber each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit StopFraud.gov - Financial Fraud Enforcement Task Force (http://www.stopfraud.gov).

United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.

FBI — Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other Investors (http://www.fbi.gov/baltimore/press-releases/2013/two-indicted-in-275-million-investment-fraud-scheme-involving-the-sale-of-medical-accounts-receivable-to-hedge-funds-and-other-investors)

littleroundman

09-12-2013, 06:11 AM

Edmonton man charged with 15 child exploitation offences

The Internet Child Exploitation unit (ICE) of the Alberta Law Enforcement Response Team (ALERT) has laid 15 child exploitation charges against a 38-year-old Edmonton man.

Michael John Patterson has been charged with six counts of luring, five counts of criminal harassment, two counts of distributing child pornography, and two counts of extortion.

The charges come after a lengthy investigation following complaints about a man believed to be involved in inappropriate communication with five alleged victims, between the age of 13 to 17.

The suspect was arrested and charged Monday. ICE seized several electronic devices for forensic examination.

Patterson appeared in court Tuesday and was released on bail. Bail conditions included: not having contact with any of the victims or anyone under 16 and not possessing or using any electronic devices with access to the Internet.

Patterson is scheduled to appear again in court Friday, September 13.

Edmonton CTV news (http://edmonton.ctvnews.ca/edmonton-man-charged-with-15-child-exploitation-offences-1.1449782)

ribshaw

09-13-2013, 07:51 AM

There are some cool games out there, I am afraid if I started playing I would never leave the house. But this is a good read for parents with kids.

In-game app charges on kids' games have become a real problem for parents. It's not uncommon for parents to find their checking accounts or credit cards dinged for anywhere from $5 to $100 each time their children play "free" games.

In some really extreme examples, the CBC reports a Canadian mom was hit with $3,000 in charges after her twins played Clash of Clans, a freemium app for iOS!

Huffington Post reports a 5 year old racked up $2,500 in charges after playing the free game Zombies vs. Ninja on a parent's iPad. And a 6 year old ran up $3,200 on his grandfather's credit card playing Tiny Monsters, a free Android app.

To avoid this happening to you, see below for links that explain how you can turn off in-app purchases for Android, iOS, Nook, and Kindle. (Editor's note: Special thanks to reader Vincent Tapia for this suggestion.)

What's going on with all these massive charges for "free" games? Basically, in the course of game play, a child might click on something to advance in game play. That action would register a charge on a parent's iTunes or Google Play account.

My executive producer Christa and I handle this problem in different ways. My kids know they are to never buy any optional add-ons to any freemium app.

Christa, on the other hand, reasons through the problem like this: She says she could buy a board game for around $10 or a PlayStation game for much more money. So if her kid wants a $2 educational game like Stack the States, for example, she doesn't have a problem paying for it.

The Wall Street Journal reports that 1 million kids age 6 have purchased apps or made other in-game purchase in recent month. Meanwhile, 60% of kids aged 8-12 say they use apps regularly and face additional add-on charges.

One possible compromise between our two points of view is that kids can spend their allowance or money they earn from a job on apps if they wish.

How does it work in your house? Write in and let me kno - See more at: Free kids gaming apps can cost you big bucks | www.clarkhoward.com (http://www.clarkhoward.com/news/clark-howard/technology/-game-app-charges-plague-kids-and-parents/nPRmw/#sthash.6QwO3lFR.dpuf)

ribshaw

09-13-2013, 07:59 AM

Dunno, if I was traveling full time and needed internet access I would suck it up and buy a mobile connection and not risk this kind of thing. I just can't remember reading anything recently that started with Public WI-FI was being used by Good Samaritans to deposit money in people's accounts.

A new twist on the 'free Wi-Fi' scam

Summary: As Robert Heinlein said, TANSTAAFL
David Chernicoff

By David Chernicoff for Five Nines: The Next Gen Datacenter | September 11, 2013 -- 16:06 GMT (09:06 PDT)
Follow @DavidChernicoff

As technology professionals you are undoubtedly aware of the various “Free Wi-Fi” scams that turn up from time to time, from the issues with Windows XP and access points to actual honey traps and unscrupulous operations that weren’t exactly free. But I heard today about a new scam from a client who does trade show operations.

Keep in mind that the majority of trade shows are on a much smaller scale than those we traditionally associate with IT, and that for non-IT products, the attendees are usually not exceptionally technically astute. So when the trade show operators promote free Wi-Fi for attendees and vendors it is usually accepted as a given that there will be some form of free Wi-Fi available, though there may be no better performance than the level offered by budget motels.

And as we all know, the most effective malware attacks often come in the form of social engineering; give someone something they expect to see and they will likely click on it and move on. And that is what this scheme is based on. I discovered this when a friend called me this morning to tell me about their experience at a mid-sized, industrial equipment, trade show.

It seems that someone was using the trade shows promise of free Wi-Fi to get users to connect to an unsecured and presumably well-sniffed network so that these unknown actors could acquire passwords and other related internet connected information. A little technical knowledge and a tool like Wireshark makes this information fairly easy to acquire.

The social engineering part was this; attendees to the trade show would be presented with a wireless access point with a name like “Free TradeShowName Wifi” and expecting the free Wi-Fi related to the tradeshow, would use that connection.

The only problem was that it wasn’t the actual tradeshow network connection. And it is unlikely that someone went to the trouble of setting up this spoof network with anything other than nefarious purposes in mind.

Other than letting people know the name of the actual tradeshow network and putting up appropriate signage, there is little tradeshow management can do. Even providing a secured password protected wireless network for vendors and attendees won’t stop some percentage of people from attaching to the “Free”, seemingly official, network. And no matter how much you tell users to be very careful when using public Wi-Fi access, there will always be those who think those admonitions don’t apply to them or simply don’t understand the problem.

A new twist on the 'free Wi-Fi' scam | ZDNet (http://www.zdnet.com/a-new-twist-on-the-free-wi-fi-scam-7000020560/)

ribshaw

09-13-2013, 08:04 AM

Sounded so promising.

Cops: Deerfield woman nets over $100K in toilet fan scam

Sally Arlene Berry, 57, of Deerfield Beach, is accused of scamming four people out of a total of $107,000 after getting them to invest in a toilet air purifier.

A Deerfield Beach woman scammed four people out of more than $100,000, according to Delray Beach police.

Sally Arlene Berry, 57, arrested on Tuesday, convinced people to invest in "Pan Fan," a real device described as something that attaches to the rear of a toilet, sucks air inside, and purifies it.

But instead of using the $107,000 of investment money to buy fans, police say subpoenaed bank records show money went toward clothes, spa services, dinners and more, according to the arrest report. Berry spent about $4,900 on the fans, according to the report.

Berry's first $30,000 investment came on June 8, 2011, from a 53-year-old Delray Beach hairdresser. The agreement said the woman would get all her money back on June 30, plus a percentage of profits and $50 for every fan sold.

But June 30 rolled around and the victim met with Berry, thinking she was getting all her investment money, plus $10,000 interest. When Berry asked the victim not to deposit the checks because the Citibank account was closed, she grew suspicious.

Police subpoenaed Berry's account and found it only had about $242 the day Berry wrote $40,000 worth of checks to the Delray woman.

Three other people came forward to police saying they loaned Berry money for the "Pan Fan" but were never paid as well.

She faces a fraud charge and was booked into Palm Beach County Jail on Tuesday and released the same day on $4,500 bail.

Staff researcher Barbara Hijek contributed to this report.

asacasa@tribune.com, 561-243-6607 or Twitter and Instagram @adamsacasa

Toilet scam: Woman accused of scamming people out of $107K - Sun Sentinel (http://articles.sun-sentinel.com/2013-09-11/news/fl-delray-toilet-fan-scam-20130911_1_delray-woman-toilet-citibank-account#.UjHDHZuUG1Y.facebook)

ribshaw

09-13-2013, 08:17 AM

I can't say this enough, make sure you know what is going on with your parents and grandparents finances. Put some protections in place before they start to slow down mentally.

Anti-crime program aids seniors
September 12, 2013
North Fort Myers Neighbor

In its first year of operation, the Cape Coral office of a state-sponsored program committed to reducing the victimization of senior citizens recovered nearly $30,000 in cash and services for local residents.

The Florida Attorney General's Office initiated the Senior vs. Crime Project in 1989, with the aim of educating the elderly to prevent them from becoming intentional or unintentional victims of con artists or honest businesses and with the hope of recouping some of or all of the losses sustained by victims.

Today, the Senior vs. Crime Project operates out of offices throughout the state with the help of volunteers. An office was officially opened at the Cape Coral Police Department in October.

"We handle all of Lee County, all of Collier and half of Charlotte," office manager Pat Koelber said.

Before the grand opening, local volunteers were taking cases as early as August 2012. Currently, the Cape office staffs about a dozen volunteers. As of last month, it had handled a total of 92 cases.

"Some of them are unfounded. They (the alleged victims) really don't have a complaint," she said. "Some we have to turn over to law enforcement."

In the past year, about 14 cases have been turned over to another agency or an attorney.

"A lot times, we're just a shoulder - there to listen to their story," Koelber said.

Approximately one-third of the cases have resulted in a positive resolution.

As of August, the Cape office had recovered about $29,565 for some local victims. Of that total, an estimated $26,282 was monetary reimbursements, while the remainder was "actual work" or services.

"We got the contractor to come back in to finish the job he was hired for and paid for," she said, offering an example. "It would be something that would have been started but not had been finished."

Senior citizens are targeted because they are usually retired, a homeowner and have an income.

"They know most of us are alone and we take people for their word," Koelber said.

In one case, a man sold his residence and moved into a retirement home due to health issues. The company in charge of his former residence's security system claimed that he was still responsible for paying for the service and continued to bill him, despite the fact the man was no longer the owner.

Senior vs. Crime was able to put a stop to the situation and the harassment.

"We had a couple of instances with car dealers selling cars to people with Alzheimer's," she said.

In another case, a consignment shop sold merchandise for the victim. The shop stated that it sent the victim a check for the items, but the check never arrived and the shop had no proof it was sent. When the shop refused to reimburse the victim for the merchandise sold, the person called the Cape office.

Koelber explained that the program was able to get the victim their money.

"Our biggest complaints have been against air conditioner companies," she said.

For people planning to have work done on their home, the Cape office offered the following tips:

Get three written estimates first.

Never provide a cash deposit.

Do not pay upfront for any work.

"If you don't know anything about a company, we can look it up for you," Koelber said.

Citizens can also check the Better Business Bureau online at: United States and Canada BBB Consumer and Business Reviews, Reports, Ratings, Complaints and Accredited Business Listings (http://www.bbb.org).

Over the past year, the volunteers have spoken at various events and before different groups, such as TOPS, the St. Andrew's men's group and the National Association of Retired Federal Employees.

"We have done one or two of your manufactured home parks," Koelber said.

The material covered includes popular scams, like e-mail and sweepstakes schemes, along with unclaimed property scams, health care fraud and identification theft. The newest scheme is the use of online dating sites to court victims, before eventually asking them for a large amount of money.

In the "sweetheart" scam, the average person is taken for an estimated $10,000.

Red flags for residents should be if they are asked for their personal information or credit card information, or if they are asked to pay for something upfront that they did not request.

"Scams are even coming now in text messages on people's phones," she said.

Outside of the topic of scams, volunteers recommend other tips for seniors, to include signing up for the Do Not Call Registry, listening to callers on an answering machine, never opening their front door for strangers and never letting strangers in for a home inspection if the inspection was not asked for.

Answering the door with a phone in hand is also suggested.

"We try to alert them to all the different scams and the different things," Koelber said.

The services and assistance provided by the Senior vs. Crime Project are free. Residents can bring in documentation related to their reported scam or unfair business deal and have their case reviewed.

Citizens can also e-mail seniorsvscrime@gmail.com and provide a narrative of the incident.

The Cape office is open Tuesdays and Thursdays from 10 a.m. to 1 p.m.

The program is always looking for new volunteers.

Over the past year, the Cape office has recorded 2,089 volunteer hours.

"We have people that were in banking. We have people in real estate," Koelber said.

"We're always looking for somebody that's got a field that can help us," she said.

Volunteers talk to victims, conduct research and talk to all parties involved.

"We try to be a mediator," Koelber said. "Sometimes you have to listen to both sides of the story."

The Cape Coral Police Department is at 1100 Cultural Park Blvd.

For more information, call (239) 574-0643 or visit online at: Seniors Vs. Crime Project (http://www.seniorsvscrime.com).
- See more at: Anti-crime program aids seniors - NorthFortMyersNeighbor.com, news, sports, Florida info, North Fort Myers Neighbor (http://www.northfortmyersneighbor.com/page/content.detail/id/519664/Anti-crime-program-aids-seniors.html?nav=5174#sthash.VY0VLUUN.dpuf)

5832

ribshaw

09-13-2013, 09:21 AM

SCAMMER amtnlondon@gmail.com

Tricky scammers use the name of real people and/or links to real websites to perpetrate their scams. George Piskov is real, but I assure you neither he nor anyone else is going to be sending $1mil anything, and this is a scam.

From: AMTN LONDON
Sent: 2013/09/09 09:38
To: DELETED
Subject: ATTENTION MADAM
The International Association of Money Transfer Networks
IAMTN, 5 Beatty House,Admirals Way,
London E14 9UF, United Kingdom.

The International Association of Money Transfer Networks
IAMTN, 5 Beatty House,Admirals Way,
London E14 9UF, United Kingdom.

Dear DELETED,

We want to officially notify you of the 1,000,000.00 USD an equivalent of 643998.00 GBP Today Market Rate,transferred by one of our network Transfer Members at their West African Branch Office.

This Transfer was supposedly to be paid out to you Via Loaded Electronic Cards, called the IAMTN electronic network payment card, however this could not be actualized based on two facts.

That the Funds Originated from West Africa and does not carry all the relevant Transfer Routing Clearances, plus international diplomatic transfer laws were breached in regards to the funds originating country.

That the funds was moved by a High Ranking bank Staff in Africa through the Auspices of our Asian Remittance market by passing international Transfer codes. Based mostly on first hand network member knowledge .

Our Conclusion, you will clear this funds officially by obtaining the EuroTrans Card, which will facilitate the immediate release of the funds for loading to your IAMTN Payment Card and onward delivery of your IAMTN Electronic Payment Card. And also obtain from the funds origin of country the international diplomatic financial pass card.

Note that this card can be used by other registered Financial institutions to load funds from any part of the world, when issued with cards security numbers , plus the card entitles you to a daily withdrawal of thirty Thousand United States Dollars.

The Euro Trans card by the IAMTN office for free, however the diplomatic financial pass card will be obtained from the ministry of foreign affairs Ghana, which is your funds country of origin, and this will cost you, 677usd only as directed by the ministry of finance Ghana. please find below their mandatory receiver information for the payment.

Name: Solomon Ollennu,
Amount: 677usd
Country:Accra, Ghana
Mtcn: ?
Que: For
Ans:iamtn
As soon as my office receives your payment details you shall be notified within 24 hours, the member financial institution in your locality were you will pick up your loaded card, with a copy of our introduction/ approval letter , to that office to release your IAMTN card.
These Details are requested in your Return Mail.
Passport No:
Home/office Phone and Address,
Recent Passport Photograph,
Preferred name on Card,
Secret Four Digit Pin Numbers(This is subject to change by you on receipt of the card).

Best Regards,

George Piskov,
Director, IAMTN

ribshaw

09-13-2013, 09:46 PM

NETFLIX PHISHING SCAM.

5841

Don (http://www.bbb.org/blog/2013/08/dont-be-fooled-there-isnt-a-problem-with-your-netflix-membership/)

ribshaw

09-16-2013, 08:18 AM

This is a rather simple scam that targets business owners. The easy fix is to fully investigate ALL requests for changes in address or bank account details from vendors where you have accounts payable.

http://www.youtube.com/watch?v=3IXPMmy3xMY&feature=youtu.be

ribshaw

09-16-2013, 09:11 AM

Here are some of the key and surprising findings:

The financially literate are more likely to be victims.
That means fraud is not going to be reduced simply by educating people. Instead, strategies beyond financially literacy are needed.

A wide variety of tactics are used to persuade investors to put their money into frauds.
These tactics include fear, intimidation, and friendship. Investors should not believe an investment is safe simply because one particular tactic is not being used. They must be alert to the full range of scam tactics.

Investment fraud victims are more likely to be optimistic.
That makes them less skeptical about claims for an investment and less likely to believe that they are being scammed. Optimism also makes them more likely to engage in "wishful thinking."

Free seminars often are a key vehicle for pitching frauds by aggressive salespeople.
People who become fraud victims identify themselves as being willing to listen to sales pitches from those they do not know and are more willing to attend free seminars on investing. In other words, they expose themselves to potential frauds more often than others do.

Fraud perpetrators know the psychological needs of people and tailor their pitches to meet the needs of the individuals in front of them. Investors need to be aware of the different types of pitches and how they are tailored to be emotionally appealing to different people.

Frauds victims tend to experience more negative life events (illness, financial distress) than non-victims. The theory is that the stress from these events makes them vulnerable to sales pitches.

Victims also are more likely to rely on their own knowledge and experience.
They could be overconfident of their knowledge and judgment, and they are unwilling to seek the advice and opinions of others, thereby missing the benefit of a second opinion.

Investment victims also are unlikely to report the fraud. There is nothing new in this finding.

Scams: Who Falls for Frauds? A Surprising Answer (http://www.retirementwatch.com/ScamSample3.cfm)

This guy has an interesting U-Tube Channel.

http://www.youtube.com/watch?v=AuOiJBuOiZk&feature=youtu.be

ribshaw

09-16-2013, 10:31 AM

I think it is a great idea to keep an eye on parents/grandparents finances and or set some money aside in a manner that can not easily be gotten to. Not just in my own family, with people who I have know when the parents mind started to slip it happened very quickly and the bad decisions started. In one case a friend's father started sending some large checks to TV preachers and other questionable places. In another bills went unpaid, including long term care insurance that was allowed to lapse at the time it was needed the most.

By
KELLY KEARSLEY

Adviser Andy Mathieson always analyzes his retired clients' expenses in preparation for their quarterly meetings to ensure they are sticking to their budgets. So when one of his clients, a 75-year-old widow, had suddenly ramped up her spending he noticed right away.
Also in Wealth Adviser

"I went over her bank statements and noticed that she had started writing checks for $3,000 or $5,000 a couple times a month," says Mr. Mathieson, president of Greenbrae, Calif.-based Fairview Capital Investment Management LLC, which manages $1.2 billion for 140 clients.

The widow's budget called for her to spend about $35,000 to $45,000 a quarter. But her spending that quarter had jumped to $60,000--an amount that threatened to deplete her retirement savings. Most of the widow's net worth was tied up in her home, which she didn't want to sell. That meant she needed to live off her pension and Social Security and stick to a 5% withdrawal rate from her IRA and other investment accounts.

"She was now at an 8% withdrawal rate and that raised all kinds of red flags," Mr. Mathieson says. If the widow's spending continued at that pace, she would either need to tap the equity in her home to fund her expenses or, in what could be the worst case, sell her house.

The adviser asked his client about her increased spending a few days later during the quarterly meeting at the widow's home. She explained that she had hired a general contractor to do some ongoing maintenance, which she described as gutter cleaning and basic landscaping.

"It didn't sound like the kind of thing a general contractor would do and it was an unusual way for a contractor to bill," Mr. Mathieson says. "He was almost on retainer."

Mr. Mathieson relayed his suspicions to the widow, who simply narrowed her eyes, assured him she was fine and noted that she didn't appreciate the line of questioning. The adviser took the hint, but left the widow with a warning: Continuing to spend at that increased rate would adversely affect her retirement plans.

A few days later, the woman's friend called Mr. Mathieson to admonish him for upsetting the widow. The adviser apologized, but pressed his case that the charges from the contractor seemed odd and the spending was detrimental to the widow's goals.

The friend promised to look into the contractor and called back a few days later to confirm Mr. Mathieson's suspicions. When asked to describe his services, the contractor couldn't even provide a detailed list of the work he'd done for the widow. "He was just bilking her," Mr. Mathieson says.

The widow's friend put an end to the contractor's work. The widow, meanwhile, didn't thank her adviser; in fact she never raised the subject with him again. But her spending immediately dropped back to its previous level.

Mr. Mathieson wasn't bothered by her lack of gratitude. In fact, he says it's incumbent upon advisers to pay attention to their retired clients' expenses and spending habits, especially with retirees living longer. Helping clients develop--and maintain--a thoughtful approach to spending is an essential step in making sure they don't outlive their funds.

"I'm not in the business of telling people how to spend their money," he says. "But it is my business to let them know if they are spending too much."

Suspecting a Scam Behind a Client's Spending Spree - WSJ.com (http://online.wsj.com/article/SB10001424127887323981304579078922381294270.html)

ribshaw

09-16-2013, 10:57 AM

What the hell is wrong with people???????????????

5852
5853

Mom Allegedly Faked Her Son Was Dying of Cancer to Scam People Out of Cash
Sep. 14, 2013 11:44am Oliver Darcy

An Ohio mom is facing felony charges after she allegedly shaved her 4-year-old son’s head and forced him to wear a surgical mask as part of a scam to solicit donations from friends, family, and kind strangers.

Emily Creno-King, 31, was arrested Tuesday and charged with felony child endangerment, according to the New York Daily News.
Mom Allegedly Faked Her Son Was Dying of Cancer to Scam People Out of Cash

Emily Creno-King (Credit: Utica Police Department)

The woman reportedly began soliciting donations using a Facebook group in December of 2012. When some people in the group became suspicious and asked Creno-King questions about her son’s illness that she couldn’t answer, the individuals were deleted from the group.

One suspicious woman, whose child was really suffering from the cancer, contacted authorities. Detectives then received confirmation from doctors that Creno-King’s claims were fraudulent.

Doctors at Nationwide Children’s Hospital confirmed the boy wasn’t ill.
Creno-King’s estranged husband reportedly didn’t even know about the scam and said he gave medicine to the child when he visited on the weekends.

“There was always a doubt in my mind,” John Creno, however, told WCMH-TV.
Mom Allegedly Faked Her Son Was Dying of Cancer to Scam People Out of Cash

“But once all the medicines started coming with him on weekends, I thought, ‘Okay, he really does have it,’” he added.

Creno-King’s bond has been set at $50,000 and she has been banned from having unsupervised contact with her son.

It was not immediately clear how much money Creno-King ultimately solicited using the scam.

(H/T: New York Daily News)

Follow Oliver Darcy (@oliverdarcy) on Twitter

ribshaw

09-16-2013, 11:07 AM

For what it is worth, at the suggestion of another Realscam member I added a program called MalwareBytes. It was cheap, like $18 on Amazon, and some of the reviews indicate that it located malware that people's other programs had missed. MB was also mentioned in Consumer Reports and runs "On Top" of your existing Internet Security. In May 2013, (I think May) CR did a review of the Internet Security programs on the market.

Argentinian teen arrested over malware scam
Accused of prolific pilfering
By Dave Neal
Mon Sep 16 2013, 09:25
Hacker's hands on keyboard

ARGENTINIAN AUTHORITIES have arrested a teenager for allegedly running a malware scam that stole hundreds of thousands of pounds a year.

The unnamed 19 year old was arrested as part of Operation Zombie on suspicion of operating a cyber-crime operation that pilfered as much as £380,000 a year in an elaborate scheme.

The name Zombie comes from the suspected network of compromised computers that the teen is accused of operating.

Reportedly he gained access to other people's computers through gambling software download websites. Through this he was able to siphon off around £30,000 a month to his own bank account.

The Independent newspaper reported that he operated out of a room that was like a bunker and was only discovered when a hosting business noticed something suspicious with its servers and money transfers last year.

If he is convicted he could be sentenced to up to 10 years in prison. His arrest came after a swoop on five premises according to reports, and a federal investigation that was ordered by Argentina's chief prosecutor, Graciela Gils Carbo.

"Internet users were victims of a `malware' virus that the hacker hosted in a server for downloading online gaming applications," added Garbo.

Reportedly the teenager hit user accounts with denial of service attacks as he was transferring their money, leaving them none the wiser until after the event.

Argentinian teen arrested over malware scam- The Inquirer (http://www.theinquirer.net/inquirer/news/2294742/argentinian-teen-arrested-over-malware-scam)

ribshaw

09-16-2013, 11:16 AM

MILWAUKEE (WITI) — A promise of free money from the government may sound too good to be true, and FOX6′s Contact 6 says it probably is!

Chris Manion says she received a phone call that made her think twice about these so-called “free” offers.

“I haven’t heard this one before and I wanted to make sure it got publicized,” Manion said.

Manion says the caller made her an offer that didn’t quite make sense.

“I work for the government and the government is giving out grants for free! And I said ‘okay what did I do to deserve this?’” Manion said.

Manion did some checking on her computer for this kind of a call, and sure enough, she learned it was likely bogus. In fact, she found a script online — including what the caller says and how the caller should respond to likely responses.

“I said if ‘it was free I shouldn’t have to pay for anything.’ And he said ‘it’s your choice if you want to continue or not.’ I said ‘I don’t want to continue.’ I said ‘I think you’re a scam.’ And I hung up,” Manion said.

Manion made a good choice, but Liz Frederichs with the Better Business Bureau says many still fall for this scam.

“I just assume it continues because people do respond to it. The first thing a person should do is check on that agency, check the .gov, check the BBB, because the majority of them are just not real,” Frederichs said.

Scam calls promising free money are too good to be true | FOX6Now.com (http://fox6now.com/2013/09/15/scam-calls-promising-free-money-are-too-good-to-be-true/)

58545855

ribshaw

09-16-2013, 11:44 AM

Before you invest dollar 1, go here. Before You Invest - FINRA (http://www.finra.org/Investors/ProtectYourself/BeforeYouInvest/)

It is easy to throw lavish parties, donate to charity, and live the good life if you are simply taking people's money and spending it. ALL investments need to be registered with the SEC and ALL brokers registered with FINRA. (* There are a very very very few exceptions for accredited investors, but don't kid yourself stick with ALL and never deviate. In fact the better the excuse for a lack of registrations sounds, the more likely the fraud.) Even people who should know better like hedge funds get stuck with worthless crap, from people in positions who should be satisfied grinding out an honest living. Scott W. Rothstein - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Scott_W._Rothstein)

Hockey Star's Ex-Advisor Indicted In $20M Investment Fraud

September 10, 2013 • Karen DeMasters

A former South Florida phony investment advisor has been indicted for running a $20 million investment fraud, the U.S. Attorney for the Southern District of Florida announced.

Joseph Paul Zada, 55, who lives in Gross Pointe Shores, Mich., was indicted on 27 counts of mail fraud, wire fraud, interstate transportation of stolen property and money laundering, said Wilfredo A. Ferrer, U.S. Attorney for the Southern District of Florida.

Zada, formerly of Wellington, Fla., defrauded at least 20 clients out of more than $20 million. In order to attract investors, Zada falsely portrayed himself as a wealthy investment advisor with connections to Saudi Arabian oil ventures, according to the indictment.

He hosted extravagant parties, drove expensive luxury vehicles and maintained expensive homes in Florida and Michigan. The indictment alleges that Zada told investors that he would invest their money in oil-related ventures. Instead, investors’ money was used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors.

In a separate matter, Zada was sued previously by Detroit Red Wings hockey star Sergei Federov, who won a $43 million judgment against Zada, the South Florida Business Journal reported.

Fedorov said in the suit that Zada's fraud took place between 1998 and 2009 during which time Federov invested millions of dollars with Zada, reported USA Today.

Zada did not deny the money was owed but he said it was a loan not an investment. Zada acknowledged agreeing to pay Federov $60 million in 2009, which also included some loans to Zada, to resolve the matter. Federov's suit says the money was never paid.

Just before meeting Zada in 1998, Federov had signed one of the most lucrative contracts in hockey history — a $38-million, 6-year deal. Federov then invested money with Zada and received an initial substantial return, USA Today reported.

Federov said he never received any paperwork on the investments. When Fedorov inquired about the assets, Zada, acting in concert with others, intentionally lied to Fedorov, provided Fedorov with false information and engaged in other fraud and deceptions, USA Today says.

Zada is not now registered with Finra and the U.S. Attorney’s Office did not report the name of his South Florida firm.

Former Florida Advisor Indicted In $20 Million Investment Fraud (http://www.fa-mag.com/news/former-florida-advisor-indicted-in--20-million-investment-fraud-15405.html)

ribshaw

09-16-2013, 11:59 AM

The Securities and Exchange Commission (SEC) has ordered an emergency asset freeze against a Miami-based attorney and others involved in a “prime bank investment scheme” that promised exorbitant returns from a purported international trading program.

According to the SEC, prime bank schemes lure investors to participate in a phony international investing opportunity with bogus promises of exclusivity and massive profits.

Bernard H. Butts, Jr., acted as an escrow agent enabling Fotios Geivelis Jr. and his purported financial services firm Worldwide Funding III Limited, to allegedly defraud about 45 investors out of more than $3.5 million they invested in a trading program that didn’t actually exist.

Geivelis, who lives in Tampa and uses the alias “Frank Anastasio” with investors, claimed returns of approximately $8.7 million for investors within 15 to 45 business days on an initial investment of $60,000 to $90,000.

The SEC’s complaint, filed under seal on Aug. 29 in federal court in Miami, also charged three sales agents who Geivelis and Butts paid to sell interests in the scheme: Douglas J. Anisky of Delray Beach, Fla., James Baggs of Lake Forest, Calif., and Sidney Banner of Delray Beach, Fla., and his company Express Commercial Capital. The court granted the SEC’s request for an asset freeze on Aug.30, and the case was unsealed on Sept. 6.

“Geivelis attempted to add a twist of legitimacy to a classic prime bank scheme by using a long-time attorney as an escrow agent to give investors the false impression that their money was secure,” Julie K. Lutz, acting co-director of the SEC’s Denver Regional Office, said in a statement. “Meanwhile, Geivelis and Butts have misused investor funds and made lulling statements to investors that portray the sham trading program as successful and payments to investors as imminent.”

According to the SEC’s complaint, investors were lured through the Internet, telephone, and personal contact with promises of extraordinary profits. Investors were told their $60,000 to $90,000 investment would pay for bank charges to lease a standby letter of credit (SBLC) in the amount of 10 million Euros from a banking group in Europe. The SBLCs were to be used to acquire loans, and the funds from the loan were to be placed in a securities trading program. Investors were promised that after their initial profit of at least 6.6 million Euros within 15 to 45 business days, the securities trading program would generate a weekly return of approximately 14 percent for 40 to 42 weeks.

The SEC’s complaint charges all defendants with violations of the antifraud and securities registration provisions of the federal securities laws.

Although the SEC was expected to file significantly fewer civil fraud cases this year, the agency continues to make good on its promise to crack down on fraud in the financial sector. Earlier this month, the commission charged a money manager Ronald Feldstein with defrauding investors and brokerage firms.

SEC charges Miami attorney in alleged prime bank investment scheme (http://www.insidecounsel.com/2013/09/11/sec-charges-miami-attorney-in-alleged-prime-bank-i)

ribshaw

09-17-2013, 09:25 AM

Farmers, gardeners targeted by new scam
September 16, 2013|Edited News Release From The Missouri Department Of Agriculture

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(JEFFERSON CITY, Mo.) – Missourians planning to purchase chemicals, such as herbicides and insecticides, should be aware of a new scam. The Department of Agriculture has received several reports from farmers, gardeners and homeowners across the state of an over-the-phone chemical sales scam.

This recent scam features a telephone solicitor offering what they claim to be a high-quality herbicide, comparable to name-brand products, below store prices. The Department suggests consumers ask any person selling agricultural chemicals for a copy of the product label. Properly registered and labeled products will be marked with the following information:

· The product’s EPA registration number

· A list of the product’s active ingredients with their percentages

· The number of feet or acres the product will cover

· Requirements to dilute before use

· The company’s name, address and telephone number.

Consumers may call the Department’s Bureau of Pesticide Control at (573) 751-5504 to verify whether a product is registered for use in Missouri. The Department also has an online Pesticide Database where consumers may search for pesticides registered for use in Missouri. The online database allows consumers to search for products by company name, product name or EPA ID number. Consumers looking for a pesticide applicator can search the Department’s Pesticide Applicator database to find a custom applicator in their area.

Each day the Department’s Bureau of Pesticide Control conducts marketplace inspections and investigations all across the state to ensure that pesticides throughout Missouri are properly labeled, sold accordingly and used correctly.

For more information on the Missouri Department of Agriculture, its pesticide control and other consumer protection programs, visit the Department online at mda.mo.gov.

Farmers, gardeners targeted by new scam - KY3 (http://articles.ky3.com/2013-09-16/missouri-department_42123322)

ribshaw

09-17-2013, 09:26 AM

Scam of retail outlets bombs out

By Marcus K. Garner

The Atlanta Journal-Constitution

A phone call came in to the Kmart in Snellville on Thursday afternoon.

The caller said he wanted $8,000 loaded to disposable cash cards or he would blow up the store.

Similar calls were received last Thursday at 10 retail outlets in Savannah, law enforcement officials said Monday.

And at other retail outlets across the country in recent months, FBI spokesman Stephen Emmett said.

But all of the calls were bogus, authorities said. There were no bombs.

“It took us 40 minutes to sweep the building before we called off the search” for a bomb,” Snellville Police Lt. Ray Gunter told The Atlanta Journal-Constitution. “We also notified South Gwinnett High School across the street. You have to take (these calls) seriously, because you never know.”

FBI officials said the call to the Snellville store and the many others like it were part of an emerging and elaborate scam to get money through an untraceable source.

The way the scam went, an anonymous caller contacted a retail location that sells Green Dot MoneyPak cards, and threatened to use explosives, or harm employees or their families if the manager didn’t load multiple cash cards with a given amount of money.

Then the caller requested that the card numbers be read aloud over the phone.

“Green Dot MoneyPak cards are reloadable and available at most retail outlets throughout the country and, like money wire transfers, are just as untraceable,” Emmett said. “These cards are not associated with any bank, meaning that the money is in the card.”

None of the managers at any stores contacted with this scam gave in, however, authorities said.

Still, the incident in Snellville – a two-hour call with a sometimes angry man speaking in a foreign accent – was tense, Gunter said.

“We tried to keep this guy on the phone to see what we could get,” Gunter said, noting that local and federal cops had tapped into the call and were trying trace the source.

What they came back with was an internet phone number that originated overseas, authorities said.

“You could tell by the way he was talking, he had never been here,” Gunter said. “He didn’t know the names of streets or where things were.”

So police called his bluff.

“After this guy had been on the phone for a while, we could tell he was scamming them,” Gunter said.

Emmett said the Green Dot MoneyPak cards were the common denominator in all of the bomb hoaxes.

Authorities said these types of threats are common, although they don’t always involve bomb threats. At the end of the day, cash card users are reminded never to give out the information on the cards. They could give thieves and tricksters access to the money stored up on the card.

“This is the trend,” Emmett said. “These cards are vulnerable if the numbers are given out.”

Anyone with information regarding this scam or any of the threats is asked to file a complaint with the FBI at

Internet Crime Complaint Center (IC3) | Home (http://www.IC3.gov).
Scam of retail outlets bombs out | www.ajc.com (http://www.ajc.com/news/news/crime-law/fbi-snellville-store-received-bomb-threat-call/nZyLS/)

ribshaw

09-17-2013, 09:30 AM

I think if I was doing a transaction for this much money I would demand a certified check from a major bank and personally show up at the bank and clear the check.

Two fraudsters posing as consumers tricked people into selling luxury watches via online auction platforms using cheques that bounced, police said on Tuesday.

Police revealed the ploy after learning that five people had been cheated out of five watches worth a total of HK$250,000.

In a crackdown against internet shopping fraud, police arrested a 16-year-old schoolgirl and a 30-year-old man in connection with two of the five cases.
Once the sellers had checked the account balance using an ATM or e-banking service and saw the payment recorded, they handed over their watches
Senior Inspector Chiew Tsi-huen

On Tuesday morning, the man, wearing a black hood to conceal his face, was escorted back to his home in Sha Tin where officers seized bank cards, a computer and mobile phones.

None of the five watches was recovered in the operation.

Senior Inspector Chiew Tsi-huen of New Territories North regional crime unit said fraudsters pretending to be buyers targeted sellers of luxury watches on internet auction sites. After agreeing on a price online, a face-to-face transaction would be arranged, he said.

“At the face-to-face meeting, the sellers were told the money had been deposited into their bank accounts,” he said. “Once the sellers had checked the account balance using an ATM or e-banking service and saw the payment recorded, they handed over their watches.”

The sellers only discovered the fraud after the cheques deposited by the buyers bounced, said Chiew.

“Up to now, there is no evidence to suggest the two suspects work together or are controlled by the same syndicate,” he said.

Describing the ploy as rare, the senior inspector urged internet users to be on alert while making online purchases and selling items on the internet.

Police are looking for the schoolgirl’s accomplice.

The two suspects were among eight suspected internet fraudsters – four men and four women, aged 16 to 49 – arrested on Monday and Tuesday as part of a two-day operation against online crime that involved a total of 34 victims.

According to police, the victims included housewives and unemployed people with losses totalling HK$460,000.

Chiew said the other six suspects were accused of posing as sellers who tricked online consumers into buying concert tickets and electronic products through online shopping platforms and auction sites.

He said the buyers sought help from the police after the goods were not delivered to them and their attempts to contact the sellers failed.

Police said all suspects were likely to be released on bail as officers needed more time to collect evidence.

Online fraudsters arrested after luxury watch scam revealed | South China Morning Post (http://www.scmp.com/news/hong-kong/article/1311662/online-fraudsters-arrested-after-luxury-watch-scam-revealed)

ribshaw

09-17-2013, 09:43 AM

Personal Finance: Illegal online lenders plague payday loan industry
By CLAUDIA BUCK
cbuck@sacbee.com
Published: Sunday, Sep. 15, 2013 - 12:00 am

Payday lenders have been around for years, offering quick-but-pricey loans to distressed borrowers. From hundreds of walk-in storefront offices, they loan out small amounts – up to $300 in California – to be paid back from the borrower’s next paycheck.

Today, they’re getting elbowed aside by a growing cadre of online competitors who aren’t licensed and who increasingly are accused of ripping off consumers. Last month, the state Department of Business Oversight warned Californians to beware of rogue online lenders – often located offshore or overseas – who offer enticing come-ons from splashy websites but who may leave borrowers little recourse if something goes wrong.

“It’s like whack-a-mole,” said Mark Leyes, spokesman for the state Department of Business Oversight (formerly Department of Corporations). “We’re trying to compile a list of unlicensed companies, but they change their company name from one week to the next.”

Payday lending is no small-change industry. In 2011, the most recent year for state data, payday lenders in California doled out a total of $3.28 billion in loans to 1.7 million customers. The average amount of those individual loans: $263.

And while the number of walk-in payday loan locations has dwindled statewide in recent years, the number of online sites has “mushroomed,” along with a “slow but steady” increase in complaints about web-based lenders, Leyes said.

“It’s a problem. The risks are high,” he said. “If it’s a storefront payday lender, you walk in and look someone in the eye. But when you go online, you don’t know who you’re dealing with, where they’re located or what their intentions are.”

Since January 2013, the DBO says it has taken action against 11 illegal online lenders operating here and overseas, including in Belize, Costa Rica, Malta and the United Kingdom. The DBO’s website also posts consumer alerts against U.S.-based online payday lenders with names like EZ Cash, Cash Express Loan and Mobiloans, which are operating without state-required licensing.

In dealing with online lenders, “We can issue sanctions, but they’re very difficult to enforce,” Leyes said.

The California Financial Service Providers Association, which represents about 1,470 walk-in payday loan locations statewide, says the unscrupulous online guys are a problem.

“We are very concerned about unlicensed, unregulated Internet lending,” said CFSPA spokesperson Greg Larsen. “If you type in ‘payday lending’ (on a search engine), you instantly get hundreds of thousands of hits. But who knows how many of those are offshore … out of the reach of state licensing?”

Taking a loan from an unlicensed payday lender puts consumers at bigger risk of financial trouble, the DBO says. Among them: higher interest rates than allowed under California law; funds siphoned from your bank account without permission; personal financial data sold or pirated by the lender, even if a loan hasn’t been formalized; losing the ability to track down, prosecute and recover lost funds.

The FTC notes that filling out a payday loan form online – even if you don’t hit “submit” – can put you at risk for bank account fraud. In some cases, consumers who never officially took out a payday loan still had their funds stolen from their accounts.

Enforcement actions against illegal payday lenders have stepped up recently. A week ago, the Federal Trade Commission announced it shut down a Tampa, Fla.-based payday loan broker accused of pilfering $5 million from U.S. consumers. The company, operating under multiple names such as Loan Tree Advances and Your Loan Funding, said it represented a network of 120 payday lenders and promised to help consumers obtain loans in “as little as one hour.” Instead, according to the FTC’s complaint, it sucked funds from the bank accounts of tens of thousands of customers. The company’s two owners allegedly used the money to support a lavish lifestyle that included a 2012 Maserati, a 2011 Rolls Royce Ghost and a 2006 Ferrari 430.

On other fronts, state officials in New York have cracked down on payday lenders that elude state scrutiny by affiliating with U.S. Indian tribes, which operate outside the jurisdiction of state and local governments. And the Consumer Financial Protection Bureau recently warned against illegal payday lenders.

Given the number of cash-stressed borrowers, demand for payday loans is not going to go away, said industry spokesman Larsen.

A payday loan is “not always the right answer, but at times it may be the least expensive option for people to turn to,” he said. “For example, if you have two bills for $50 and $75 that are going to be late, those late fees are $35 each. That’s $70.” Instead, a consumer takes out a $125 payday loan to pay off those bills and the fee is only $21.25, or 15 percent of the loan amount. “They make an absolute, short-term, dollar-and-cents choice,” Larsen said. “That’s how people look at it.”

The problem, critics say, is that a payday loan’s short turnaround – typically two weeks – leaves many low-income borrowers unable to repay the full amount and still cover their other household expenses, such as rent, utilities, food, etc. That traps many on a so-called “debt treadmill” –where they continue to take out new payday loans to cover their bills.

According to new numbers released last week by the Center for Responsible Lending, a consumer group that opposes payday loans, American borrowers pay $3.4 billion in fees every year on payday loans. Of that, Californians’ share of payday loan fees is $578 million.

According to the Center for Responsible Lending, 82 percent of total annual California payday loan fees – $474 million – come from borrowers taking out a new loan within two weeks of paying off their last loan.

In April, a payday loan reform bill, SB 515, was defeated in the state Senate Banking and Financial Institutions Committee. Among its provisions, it would have capped the number of payday loans allowed per person to six in one year.

Consumer groups urge financially stressed individuals to consider alternatives to payday loans. And state officials are simply trying to get the word out: Before you take out a payday loan, check to be sure the company is licensed.

“If they’re licensed, it doesn’t mean it’s a good economic decision (to take out a payday loan). But at least there’s some recourse,” said DBO spokesman Leyes. When dealing with an unlicensed online lender, “you’re at their mercy. ... Be very cautious.”

Read more here: Personal Finance: Illegal online lenders plague payday loan industry - Claudia Buck - The Sacramento Bee (http://www.sacbee.com/2013/09/15/5731842/illegal-online-lenders-plague.html#storylink=cpy)

ribshaw

09-18-2013, 11:09 AM

This is a huge chunk of change.

Phone scams are HOT right now, whether the utility company, jury duty, traffic tickets, bomb scares, kidnapping, or your grandson just happened to get arrested in Peru scam. Make sure your friends and family are aware, this crap only works if people don't know.

Can't copy and paste due to warning at the bottom. What a great idea that is, warn people about scams but tell people not to share. SMART!!!

Missouri grandmother loses $250K in phone hoax - KCTV5 (http://www.kctv5.com/story/23456156/chesterfield-grandmother-loses-250k-in-phone-hoax)

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ribshaw

09-18-2013, 11:14 AM

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All You Need to Know About Personal Finance Fits on One Index Card - DailyFinance (http://www.dailyfinance.com/2013/09/18/personal-finance-skills-index-card/)

ribshaw

09-18-2013, 01:36 PM

SOME VERSION OF THIS CRAP

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ALABAMA -

Tina Wilkinson was trying to check her email when she got the message.

“Interpol and cyber security and all this, and it said that I had downloaded all kinds of pornography, any kind you can imagine, and bestiality and all this stuff and they were coming to get me,” says Wilkinson.

After a rather scary description of laws broken and what would happen to Wilkinson, the scammers helpfully offered a solution.

“I could go to Walgreens or Wal-Mart or Target or somewhere and buy a moneypak, a $300 moneypak and pay them!”

But when Wilkinson tried turning off the computer and turning it back on again, that’s when things got really scary.

“The minute she touched a button, it took a picture of her. Now I’m mad.”

“Yes, they can actually activate your webcam. They can activate your webcam, they can activate your microphone,” says Computer Crew Office Manager Kristina Barrett.

It’s an old scam that has many incarnations.

“They’ll come out and say that you have illegally downloaded MP3 music, movies, just a wide assortment,” says Barrett.

After failed attempts to unfreeze the computer by their 22-year-old daughter, Wilkinson’s husband, Raymond spent four hours on the phone with their internet provider.

"I had to go through two major techs to get it, to where we could get it back online,” says Raymond.

“It’s thoroughly an act of maliciousness,” adds Barrett.

If you’ve become a victim, you can do what the Wilkinson’s did and call your internet provider, chances are it will take several hours to fix. Or you can take it to a tech shop like the Computer Crew. They’ll run a diagnostic for $50 and let you know everything that’s wrong, including any other viruses. Another scary thing—this virus is not detected by any anti-virus software out there, so you never know you have it until it’s too late.

Scam Freezes Computer, Takes Pics, Asks For Money (http://www.wkrg.com/story/23458078/scam-freezes-computer-takes-pics-asks-for-money)

ribshaw

09-18-2013, 01:40 PM

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KINGSBURY -- They were skeptical, but hopeful.

The elderly Kingsbury couple received a check for $1.6 million in the mail last week along with a letter informing them they had won the annual Publishers Clearing House sweepstakes.

It had a phone number to call. They weren’t sure if it was legitimate, so they brought it to the Washington County Sheriff’s Office to check.

It turns out it wasn’t.

The $1.6 million check was fake, using a well-known national sweepstakes in an effort to sucker people into giving out personal information or bank account information.

“They were hopeful there would be some truth to it,” sheriff’s Capt. Bryn Reynolds said. “I felt bad for them.”

The massive check was the latest variation police have seen on a scam that continues to plague the region and nation — scam artists trying to convince people to give out personal information, such as bank account numbers or Social Security numbers.

Local police get calls every week from local people who are targeted and sometimes victimized by similar schemes.

People should keep two main points in mind when receiving checks they weren’t expecting or inquiries about potential prizes: If you didn’t enter, you didn’t win, and no legitimate contest requires winners to pay money up front.

State Police Senior Investigator Thomas Aiken said the criminals involved in these scams get more savvy all the time, using fake email addresses and phone numbers on caller ID systems to try to convince recipients they are legitimate.

“We get these calls all the time, and we hear from people who have lost money,” he said.

Reynolds said he called the phone number on the “Publishers Clearing House” letter that accompanied the check the Kingsbury couple received, and got a voice mail.

Police believe the thieves typically try to convince those who receive the checks to give them their bank account numbers, pretending they are needed to wire money to them.

Instead, they proceed to loot the bank account for which they now have an open door.

Reynolds said he spoke with a Publishers Clearing House representative, who indicated that they do not mail awards letters and instead go to the homes of those who win.

Publishers Clearing House has a section on its website with information about the various scams by those pretending to be from the company.

Police warn about Publishers Clearing House mail scam (http://poststar.com/news/local/police-warn-about-publishers-clearing-house-mail-scam/article_2937f5f8-1f11-11e3-b414-0019bb2963f4.html)

ribshaw

09-19-2013, 10:05 AM

Police warn of phishing scam with fake Verizon email

By Myles Snyder - email

YORK, Pa. (WHTM) -

Police are warning of a phishing scam involving an email that appears to have been sent from Verizon.

Northern York County Regional police said the email indicates that the company was unable to charge the recipient's credit card and requests that the recipient click on a link to update their credit card information.

Police said the email is not legitimate.

Those who have followed the link and provided credit card information should check their account for unauthorized usage and cancel the credit card, police said.

Police said anyone who is a victim of the scam, and has had unauthorized charges placed on their credit card, should call 911 to report the scam to their local police department.

Police warn of phishing scam with fake Verizon email - abc27 WHTM (http://www.abc27.com/story/23467622/police-warn-of-phishing-scam-with-fake-verizon-email)

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ribshaw

09-19-2013, 10:33 AM

Eagle who posts here has some read flags on his page, my guess more than a few were thrown up on this and every other deal that goes south.

https://www.eagleresearchassociates.org/special-reports/red-flags/

======================

Law360, Miami (September 17, 2013, 3:58 PM ET) -- The founder of investment company Commodities Online LLC on Tuesday pled guilty to running an investment fraud scheme that bilked more than 700 investors out of $21 million.

James C. Howard III, 53, of Parkland, Fla., pled guilty before U.S. District Judge Ursula Ungaro to one count of conspiracy to commit mail and wire fraud for the scheme that involved making false representations and omissions about COL ownership units to investors, according to the U.S. Attorney's Office for the Southern District of Florida.

Between January 2010 and April 2011, Howard and his co-conspirators sold COL ownership units, subscriptions to the company's website and investments in transactions to buy and sell commodities like seafood, iron ore, copper and sugar, according to prosecutors. They also offered “pre-sold” commodities contracts for sale through the COL website, prosecutors said.

Howard told investors that his company was profitable, when in reality the payments made to investors came from money collected from new investors, according to the U.S. attorney. Much of the money was misappropriated for personal use by Howard and his co-conspirators, according to the indictment.

Prosecutors said Howard worked with COL co-founder Patricia S. Saa, COL director of sales Louis N. Gallo III and the company's outside counsel Michael R. Casey.

After about mid-2010, Howard and the others told investors that Casey was now COL president and not Howard despite the fact that Howard remained in charge, according to prosecutors.

Howard also did not disclose to investors that both he and Gallo were convicted felons and that Gallo was still on probation, according to prosecutors. Howard had been convicted on cocaine possession and firearm charges in the Northern District of Florida, while Gallo had been convicted of cocaine possession and bank fraud charges in New Jersey, according to the indictment.

An attorney for Howard could not immediately be reached for comment Tuesday.

Howard's sentencing is set for Dec. 2.

Howard is represented by Miguel Caridad of the Federal Public Defender's Office.

The case is U.S. v. Howard et al., case number 1:12-cr-20630, in the U.S. District Court for the Southern District of Florida.

--Editing by Jeremy Barker.

Investment Co. Founder Cops To $21M Fraud Scheme - Law360 (http://www.law360.com/articles/473354/investment-co-founder-cops-to-21m-fraud-scheme)

ribshaw

09-19-2013, 10:44 AM

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MINEOLA, N.Y. (CBSNewYork) – Three employees of a Long Island-based modeling agency have been charged with scamming families out of hundreds of thousands of dollars, prosecutors said.

Hicksville-based Model Talent Development Corp, which also operated under the name New Faces Development Center, Inc., is charged with scamming at least 50 families out of $250,000 by promising children high-paying modeling jobs, 1010 WINS’ Mona Rivera reported.

“Hundreds of families were led to believe that their child was the next big thing, only to learn that they were just the next in line to be scammed,” stated Nassau County District Attorney Kathleen Rice. “The defendants built a lucrative business by crushing the dreams of hopeful children and conning parents out of their hard-earned money.”
play

Prosecutors: L.I. Modeling Agency Scammed Dozens Of Families Out Of $250,000
1010 WINS' Mona Rivera reports

00:00

“These suspects exploited something we can all relate to – the love and pride parents feel for their children,” state Attorney General Eric Schneiderman stated. “The crimes we allege today are a clear-cut scam, and we are bringing the scammers to justice.”

Talent scouts targeted teens and children at shopping malls, beaches and other public places and told them that they had “the look” for modeling or acting, prosecutors said.

Michelle Molene, of Brooklyn, said she was scammed out of $5,000 after agents approached her 14-year-old daughter at the Queens Center Mall.

“They told her ‘you could be good for modeling,’” Molene said. “She gave them her phone number.”

Molene said the agents then disappeared after taking deposits for photo shoots and contracts.

Delora Castro of Forest Hills said she was scammed out of $6,000 after agents approached her 18-year-old daughter at the same mall.

“They said, ‘You’re very beautiful,’ and they asked my daughter, ‘Would you be interested in a modeling career?’” Castro said.

Victims paid for photo shoots and put down money for contracts with major retailers that never even existed, prosecutors said.

“Not one person got a modeling contract, not one person got any benefits for their children,” Schneiderman said.

Jennifer Santiago, 26, of Jamaica, Queens, Jennifer Diaz-Domenech, 31, of Brooklyn, and Michelle Alperin-Smith, 42, of Nesconset, face grand larceny and fraud charges. They are set to be arraigned Wednesday.

An arrest warrant was issued for James Muniz, 44, of Roslyn, the CEO of the business.

The defendants face up to seven years in prison if convicted.

The investigation is ongoing, and anyone who may have been similarly victimized should contact District Attorney Rice’s Complaints Unit at (516) 571-3505 or the Attorney General’s Office at (516) 248-3301.

Prosecutors: L.I. Modeling Agency Scammed Dozens Of Families Out Of $250,000 « CBS New York (http://newyork.cbslocal.com/2013/09/18/prosecutors-l-i-modeling-agency-scammed-dozens-of-families-out-of-250000/)

ribshaw

09-20-2013, 03:32 PM

I see these boxes but have never used them, today I was digging in my car visor and found my Block Buster card and thought I don't even know if there is a BB around anymore.

Alex Martinez, who rents video games from Redbox at a Walgreens in Waukegan, has twice opened game cases that only had a piece of paper with a bar code inside.

“I thought I was going to be charged for the full price of the game, but Redbox was pretty cool about everything,” said Martinez, 39, who rents games for his 9-year-old son. “I just worry that if it happens two or three more times, that [Redbox] is going to think it’s me stealing the games.”
Ads by Google

Bill Orechia found himself in a similar situation after renting a video game from a Redbox kiosk in Chicago’s Old Town neighborhood. His copy of “Street Fighter” was empty.

“I got scared when I called [Redbox] because I thought I’d be charged the full $60 for the game,” said Orechia, 27.

As it turns out, Orechia said, “It was routine business for them. The whole call took 10 minutes, and they even gave me codes for two free rentals.”

That’s because Orechia and Martinez fell victim to a scam that’s been brewing since Redbox, based in Oakbrook Terrace, introduced game rentals in 2011.
Ads by Google

Each Redbox disc has a bar code sticker that tracks customer credit card information and date of rental, among other things. But when unscrupulous users photocopy the bar code — or simply peel off the sticker and place back it in the case — the kiosks are duped into thinking it is the actual game.

“If you’re renter No. 1, then it’s obvious,” said Joel Resnik, vice president and general manager of video games at Redbox. “The problem is [the thefts] are not clear-cut.”

Redbox declined to say what percentage of customers have been affected by the scam, and Resnik wouldn’t elaborate on steps the company might be taking to combat this kind of theft. “If the problem was widespread it wouldn’t be a profitable business for us — nothing is full profit — but we are constantly looking at new ways to address these challenges,” he added.

Scammers might get away with a $60 video game as long as they’re not greedy and stealing dozens of games at a time, but Resnik views the thefts as a cost of doing business. Redbox charges customers $2 a day for each video game rented.

“I draw this comparison to retail,” Resnik said. “All retailers deal with shrink. There is always a risk to doing business. ... It has grown and more people are aware of the scam.”

The awareness Resnik is referring to are various consumer complaints left on sites like Yelp!, Reddit and gaming forums such as Gamefaqs.

Redbox, which is operated by the publicly traded company Outerwall, closed Friday at $46.43 a share, up from roughly $45 a year ago. On Tuesday, the company hit a nine-month low after management lowered future revenue expectations. The company has rented more than 3 billion DVDs or video games since Redbox kiosks were introduced in 2002.

Meanwhile, the company recently increased the cost of renting DVDs by 20 cents, stating the “increase is a result of rising operational costs, including increased debit card fees.”

“We are constantly looking at new ways to address these challenges and make sure people don’t make a tremendous impact on our customer’s experience,” Resnik said. “That’s what’s really important to us — overall experience.”

Redbox scam hits Waukegan kiosk - Lake County News-Sun (http://newssun.suntimes.com/news/22622809-418/redbox-scam-hits-waukegan-kiosk.html)

ribshaw

09-20-2013, 03:38 PM

National Do Not Call Registry scam is back!
by Susan Salisbury

Be aware that an old scam is back.

Scammers are again making phone calls posing as representatives of the National Do Not Call Registry. The callers claim to provide an opportunity to register your phone number, but it’s a trick, says the Better Business Bureau.

How the scam works:

Someone calls you claiming to represent the Federal Trade Commission’s National Do Not Call Registry or Canada’s National Do Not Call List. The “representative” says he is offering you the chance to register your phone number in order to limit telemarketing calls. Several versions of this exist. In one, scammers ask for personal information, such as your name, address and Social Security number. In another, scammers try to charge a fee to join the registry.

Either way, just hang up the phone. The call is a scam. The registry is a free service, and sharing personal information with the caller will put you at risk for identity theft.

How to protect yourself from Do Not Call Registry scams:

• You never need to pay. National Do Not Call Registry is a free service of the federal government.
• Don’t share your personal information if someone calls you claiming to represent the National Do Not Call Registry.
• Private businesses cannot register phone numbers. Consumers may register directly, or through some state governments, but never through private companies. If someone claims otherwise, it’s a scam.
• Remember that your participation in the National Do Not Call Registry does not expire.
• To add your number to the Do Not Call Registry, go to Donotcall.gov or call 888-382-1222 from the phone you wish to register. If you want to verify your number, use this feature on the registry’s website.
• Canadians have their own National Do Not Call List.

Subscription to the Florida Do Not Call list is now being offered free of charge for residential and mobile telephone numbers. Your number will remain on the Florida Do Not Call list for five years.

To register to be on the Florida list, go to fldnc.com

For frequently asked questions about the Do Not Call Registry, check the FTC website at ftc.gov.
- See more at: Protecting Your Pocket » Blog Archive » National Do Not Call Registry scam is back! (http://blogs.palmbeachpost.com/protecting-your-pocket/2013/09/20/national-do-not-call-registry-scam-is-back/#sthash.igal9eSI.dpuf)

ribshaw

09-20-2013, 03:41 PM

THE Financial Services Board (FSB) on Friday asked the public to refrain from investing funds or conducting business with any of the Ledimar financial services entities, as there was a "strong indication" the companies were running a pyramid scheme.

The regulator has established that these entities offer investment products to members of the public and then falsely purport to be authorised financial services providers in terms of the Financial Advisory and Intermediary Services Act 37 of 2002.

The FSB says none of these entities are authorised in terms of the act to provide financial services and, specifically, to sell any investment products to the public or to receive or hold investment funds from the public.

The three companies are Ledimar Financial Services, Ledimar Stock Trading and Ledimar Investment Holdings.

While the main operations are in Rivonia and the Johannesburg central business district, the FSB said there were also branches in Welkom, Klerksdorp, Rustenburg and Mahikeng.

The FSB is conducting an inspection, which it said was "continuing".

http://www.bdlive.co.za/business/financial/2013/09/20/fsb-warns-public-against-possible-pyramid-scheme

NikSam

09-20-2013, 03:45 PM

what a nice name "FSB", just like new russian ex-KGB now called FSB :)

when someone will say FSB is onto you, russians are scared the most..

ribshaw

09-20-2013, 03:50 PM

Report: Pistons' Charlie Villanueva lost $250,000 in alleged Ponzi scheme

The Detroit News

Charlie Villanueva will earn $8.5 million in salary with the Pistons this season. (Carlos Osorio / Associated Press)

Pistons forward Charlie Villanueva testified Tuesday in federal court in Trenton, N.J., that he lost $250,000 in investments with former University of Connecticut basketball player Tate George, according to the Trentonian.

Villanueva also played for the Huskies.

George is on trial for wire fraud for his involvement in an alleged Ponzi scheme as CEO of The George Group.

Villanueva invested the $250,000 for a George project called Seaview Plaza in Bridgeport, Conn. The Trentonian said Villanueva was promised the return of his $250,000 with a $37,500 profit, and 2 percent earnings annually on his investment.

Villanueva told the Trentonian that it hurt him personally to be conned by a fellow UConn alum.

“And it’s $250,000! That could have gone to my son’s education,” Villanueva said.

From The Detroit News: Report: Pistons' Charlie Villanueva lost $250,000 in alleged Ponzi scheme | The Detroit News (http://www.detroitnews.com/article/20130918/SPORTS0102/309180080#ixzz2fT5ivFU8)

ribshaw

09-23-2013, 01:10 PM

Six arrested in City of London boiler room scam
Author: Laura Miller
IFAonline | 23 Sep 2013 | 10:41

Categories: Investment

Topics: fraud

City of London Police detectives have arrested six men as part of an investigation into a suspected ‘boiler room' operating from the Square Mile selling carbon credits.

It is believed that the boiler room has already accumulated approximately a million pounds from cold calling people across the UK. Using high pressurised sales tactics, carbons credits are sold for over inflated prices that are not capable of generating the returns promised, the police said.

The morning operation saw fraud squad detectives descend on a City office. Searches were later carried out in properties across the south east.

Detective Inspector Teresa Russell, who is leading the investigation, said: "In 2013 the City of London Police has targeted a number of City offices housing what we believe are criminal operations intent on defrauding elderly and vulnerable people out of large sums of money, some of whom have parted with their life savings.

"We will take action against criminals involved in this type of scam,close down their operations, holding those responsible to account."

The City of London Police advises people not to accept cold calls and always seek independent advice before committing to any financial investment.

ribshaw

09-23-2013, 01:25 PM

There are a ton of these scams going around, make sure your friends and family are aware.

If someone calls and claims to be from, let's say, a utility company or a government agency and wants you to send money using pre-paid cards, what should you do?

City police are investigating two recent incidents involving Green Dot Money Pack cards, one from a caller who claimed to be from the IRS and another from a man who said he worked for United Illuminating Co. and needed an outstanding balance paid immediately.

Legitimate businesses don't operate that way, said Officer Jeff Nielsen, the department spokesman. "Once the scammer gets the numbers from the back of the card, they can use it to reload the funds onto a prepaid Green Dot Visa or Mastercard, add money to a PayPal account without using a bank account or make same-day payments to major companies,'' Nielsen said.

A Milford woman was bilked out of $2,000 on Sept. 16 and on Friday a local business owner lost $800 in the scam when a caller claiming to be from UI said the company was switching meters and needed the customer's balance settled immediately.

Green Dot cards are sold in several local stores and police are asking merchants to monitor their sales of the cards and to report anything suspicious, Nielsen said.

Anyone receiving such calls should notify police, he said. Before sending money, always check with the agency the caller claims to be from, using a phone number or e-mail address from the agency's web site or a telephone directory.

The woman in the first case became suspicious after giving access to half the $4,000 demanded by a man who called himself "Marshall from the IRS.'' He told the woman that if she didn't pay the purported tax bill within 30 minutes she would be arrested, Nielsen said.

The business owner was called by a man who said he was "Mike Lopez'' from UI, who told the business owner that the utility was changing electrical meters and that the business needed to pay off its bill or the power would be cut off.

The scam works by having victims purchase the Green Dot Money Pack cards, load the money on them and call back with the transaction number on the rear of the card, Nielsen said. That number gives access to the funds on the card without the card itself, police said.

Green Dot has a fraud reporting number to contact, (800) GREEN DOT and the company web site, www.greendot.com has information on how to avoid common scams.

The site says that cardholders have access to more than 20,000 ATMs and that the reloadable card may be used as cash wherever Mastercard or Visa debit cards are accepted.

Police warn of scam using pre-paid cards - Connecticut Post (http://www.ctpost.com/policereports/article/Police-warn-of-scam-using-pre-paid-cards-4836034.php)

ribshaw

09-23-2013, 01:28 PM

Tips for Steering Clear of Health Insurance Scams

By Carole Moore
Published September 23, 2013

Medical and health insurance scams are rampant. Both government and private initiatives have renewed their focus on preventing health insurance fraud and abuse. Michael Williams, director of communications and membership of the National Health Care Anti-Fraud Association, says new and better technology, improved awareness, and more widely available information combine to combat fraud. Williams adds that while the majority of physicians run honest practices, consumers must also step up to the plate to prevent fraud.

"Pay attention, do your research, read your EOBs (explanations of benefits) and beware of free offers," he says.

Read on to discover some of the most common health insurance scams making the rounds and ways experts like Williams say you can guard against becoming another victim.

Fake insurance policies

Like counterfeit money, bogus health insurance is not only circulating, but it's becoming increasingly common. James Quiggle, communications director of the Coalition Against Insurance Fraud, says fake policies are particularly virulent.

"These crooks come out of the woodwork and promise affordable premiums, no medical exams and guaranteed acceptance," Quiggle says, adding that the criminals who offer worthless policies often operate through sophisticated networks with strong marketing arms and money-laundering components. Many times they can be tied to organized crime.

Often, these con artists target small businesses, unions and associations. It's only when a policyholder needs the insurance that the game's up.

How to spot the scam: Use common sense, says Quiggle. Check with your state's department of insurance to see if the company is properly licensed. And remember, if it seems too good to be true, it most likely is.

What to do: If your policy is through an organization, report fraud to someone within the organization. Also, report the fraud to the Federal Trade Commission at FTC.gov and your state's department of insurance.

Bogus Obamacare policies

With the phased-in implementation of the Patient Protection and Affordable Care Act, known more commonly as Obamacare, hucksters by the thousands have surfaced. Reports of program-related scams have flooded in from all over the country, according to Thomas M. Devlin, chief deputy attorney general for the Health Care section of the Pennsylvania Attorney General's office.One prominent health insurance scam involves the criminals calling victims and trying to con them out of personal information.

"They're trying to tell people they're going to be issued a national health card and they need their Social Security numbers and bank account numbers; essentially, it's an identity theft type of scam," Devlin says.

"Be aware that the government is not going to solicit information over the phone or through email," he warns.

How to spot the scam: Any effort to solicit information from you for national health care should be regarded as suspicious. Don't respond to emails, and hang up on the callers.

What to do: Report your complaint to the Federal Trade Commission.

Medicare and Medicaid fraud

The Coalition Against Insurance Fraud says that in 2007 alone, Medicare and Medicaid made an estimated $23.7 billion in improper payments. Medicare accounted for $10.8 billion of that amount. However, as baby boomers get older, the number of seniors joining the program is expected to grow, so those numbers are expected to rapidly expand.

Jeff Young, vice president of fraud control at Verisk Health, says Medicare and Medicaid fraud generally begin at a practitioner's office. The staff members may order tests the patient's condition doesn't warrant, "upcode" or falsify what procedure the patient receives, or bill for nonexistent hours -- "double bill" -- among other illegal practices.

Although these don't necessarily impact the patient out of pocket, it can come back to haunt patients who really do need a medical procedure at some future point, and who could be denied the service based on false evidence. And, of course, there is also the moral issue of ripping off taxpayers.

"Ask questions as a consumer: 'Why do I need this (procedure)?' Get the answers upfront," says Young.

How to spot the scam: While explanations of benefits, or EOBs, can be complicated, always read through them.

What to do: If you spot an error, contact your insurer, either Medicare or Medicaid.

Medical discount card scams

A few years ago, the state of California joined Massachusetts in taking on the sellers of unscrupulous medical discount cards. Presented as a substitute for health insurance or a way to obtain discounts for everything from eye exams to dental work, the cards target mostly poor communities and are often useless. Experts say they expect to see more of these offers in the future.

These cards provide fake lists of providers, phony discounts, and high fees that aren't readily apparent and often mimic health insurance but provide no actual benefits. Ads for them can be found all over the Internet and in print and televised media. Dr. Deborah C. Peel, a physician and founder of the nonprofit Patient Privacy Rights, says beware when those selling such cards try and get you to divulge personal information, like your Social Security number.

"Always question why someone needs that information," Peel warns.

How to spot the scam: If you find a discount card you like, research it. If you discover complaints, hidden fees, false or overblown promises, or exorbitant costs, run fast in the opposite direction.

What to do: If you've already signed on with a company that's sold you a bogus discount card, contact your local state department of insurance.

Employers without workers' comp

Most workers don't think about having workers' compensation insurance until they need it, but an on-the-job injury could leave them in a financial bind. And, some employers don't carry workers' compensation coverage even though they are mandated to do so by law. This year, North Carolina state auditor Beth Wood reported that more than 11,000 businesses in her state canceled coverage or let it lapse. That meant about 30,000 employers required to carry workers' compensation insurance were without it.

Quiggle says lack of workers' compensation coverage is particularly rampant in certain industries, such as construction.

"When a worker falls off the roof and wakes up in the hospital, he ends up finding he's not covered by workers' comp," Quiggle says. It's a rude awakening to a health insurance scam in which the employer is the culprit.

How to spot the scam: Your employer should be happy to provide copies of its policies and procedures for on-the-job injuries. If it hasn't or if another worker has an accident and finds he or she isn't covered, then you probably aren't covered, either.

What to do: Report this health insurance scam to your state department of insurance.

Tips for Steering Clear of Health Insurance Scams | Fox Business (http://www.foxbusiness.com/personal-finance/2013/09/20/steer-clear-health-insurance-scams/)

ribshaw

09-23-2013, 01:34 PM

This is one of those areas that can be rife with fraud. Know what you are getting when you prepay.

Prison term will be sought for ex-Mechanicsburg funeral director in massive fraud, prosecutor says

Matt Miller | mmiller@pennlive.com By Matt Miller | mmiller@pennlive.com
Email the author | Follow on Twitter
on September 13, 2013 at 12:59 PM, updated September 13, 2013 at 10:05 PM

The damage from a massive fraud by former Mechanicsburg funeral director Boyd L. Myers Jr. is still being tallied, even after Myers pleaded guilty to 558 criminal charges for diverting payments clients made for pre-arranged funeral services.

The only thing certain at this point is that prosecutors will ask for a jail sentence when a Cumberland County judge sentences Myers, 52, later this year.

"I don't know yet how much (prison) time I'll ask for," First Assistant District Attorney Jaime Keating said Friday. "There has got to be some. Otherwise, where's the incentive for anyone else not to do this?"

"This was worse than a Ponzi scheme," Keating added. "He gambled with peoples' peace of mind."

The idea of Myers going to prison was fine with Linda Sieber, whose late mother was one of the victims of the fraud, which is estimated to have involved about 100 victims and more than $600,000.

"I think he should have to serve jail time, and be responsible to pay back as much as they can get out of him," Sieber said. "He needs to realize what he did to people. I think he needs to feel some of that himself."

She said the only bright spot from the ordeal is that Bob Buhrig, who owns what is now the Myers-Buhrig Funeral Home and Crematory, has been "absolutely wonderful" in working to make victims whole.

Buhrig said he discovered financial inconsistencies in the funeral home's accounts while preparing to buying the assets of the long-standing business, then known as the Myers Funeral Home, in 2011. It was his discovery that triggered the criminal probe.
"This was worse than a Ponzi scheme. He gambled with peoples' peace of mind." - Prosecutor Jaime Keating

Keating said victims of the fraud, one of the largest in scope that he has encountered, include not only clients whose pre-planned funeral payments were diverted, but also insurers. Investigators claim Myers violated state law by not placing clients' pre-paid fees in insurance trusts and escrow accounts.

Myers' lawyer, Karl Rominger, has claimed that Myers diverted the payments to prop up his faltering business.

Buhrig, whose new corporation has no connection to the old Myers Funeral Home, said that even though he had no legal duty to do so, he set up a $600,000 "rescue package" to make the victims of the fraud financially whole.

The fund gave those families credits for the full principal amounts they had paid for their pre-planned funerals, plus 2 percent interest, good for services at his new operation, he said.

Buhrig estimated that 96 percent of the victims had been identified by the time Myers was charged in 2011, and a handful of others came forward after the arrest. "We feel comfortable that we have identified all of the families affected," he said, adding that the rescue package has proven adequate to its task.

His firm also organized one town hall meeting for prosecutors to meet with the victims and has been asked by the DA's office to set up another, he said.

"Legally, we are not asserting that we are victims in this case," Buhrig said. "We want the law to focus on the families of the victims who were affected."

Authorities are still sifting through the wreckage left by the fraud, trying to make sure all the losses have been identified, Keating said.

He said he plans to meet with victims before Myers is sentenced to ensure no element of the fraud remains undiscovered. "I want to talk to as many victims as I can to see how this affected them," Keating said.

The case is so complex and there is still so much to be done that he said he could not rule out the possibility that Myers' sentencing, which is scheduled for November before President Judge Kevin A. Hess, could be delayed.

"We will take whatever time is necessary to get it right," Keating said.

He said Myers had no plea agreement with prosecutors when he entered his guilty pleas on Thursday. That means it will be up to Hess to determine how much, if any, time that Myers should spend behind bars and/or on probation, and how much restitution he must pay.

Prison term will be sought for ex-Mechanicsburg funeral director in massive fraud, prosecutor says | PennLive.com (http://www.pennlive.com/midstate/index.ssf/2013/09/prison_term_will_be_sought_for.html)

ribshaw

09-24-2013, 08:28 AM

This is a good article for anyone with employees.

1 in 5 Employees Will Open Suspicious Email and Fail to Notify IT, Says Courion Research

Many also fail to understand basic password principles

WESTBOROUGH, Mass. — You receive a strange email. It looks shady. You’re probably being phished – a hacker is attempting to gain access to your enterprise. They must want to hijack your user name, password or credit card number. You … click on the email anyway?

That’s the case for the nearly 1 in 5 (19%) U.S. employees working in an office setting who admit they have opened an email at work they suspected to be fake or a phishing scam – without notifying the IT department – according to the results of a survey conducted online in May and June in the United States by Harris Interactive on behalf of Courion Corporation.

This ignorant and self-destructive behavior, which puts the entire enterprise in jeopardy, points to a critical need for organizations to better educate staffers who don’t understand the risks their actions can pose. Want more evidence employees need better education? Nearly 1 in 4 (23%) office workers don’t understand why their employer makes them change passwords so often.

“These are otherwise intelligent people who, if informed about the potential consequences of their actions, would do the right thing,” said Chris Sullivan, vice president, advanced intelligence solutions at Courion, a leading authority in intelligent identity and access management (IAM). “Any employee may succumb to natural curiosity. Before curiosity kills the cat, organizations need to get their arms around this behavior. They need to educate their employees and use systems that eliminate risky activities.”

Courion software verifies that only authorized users have appropriate access to computing resources based on their roles and company policies. While only better education may prevent employees from falling prey to a phishing attempt, real-time monitoring capabilities built into Courion’s provisioning and governance solutions may enable organizations to detect a hacker once they have infiltrated, should they escalate access rights or suddenly begin accessing company critical resources that don’t match the legitimate user’s role definition. In fact, with 17 years of experience, the company is helping more than 500 organizations safely protect their critical IT assets from unwanted access, complementing security tools like firewalls, antivirus software and intrusion detection systems.

Analyzing petabytes of data related to identities, access rights, information resources, access policies and computing activities, Courion’s software identifies risks, anomalies, and potential and actual breaches, often catching what slipped through a company’s perimeter defenses. The software also continuously monitors the IAM environment, making compliance audits quicker, easier and less painful than ever.

“It’s worrisome that despite years of software development and awareness-building, many organizations still lack control and insight into the growing access risk within their own walls,” said Sullivan. “It’s time for companies to get serious about real-time, intelligent identity and access management and address the risk before it evolves into an incident causing irreversible damage.”

Survey Methodology

The survey was conducted online within the United States by Harris Interactive on behalf of Courion between May 31 and June 4, 2013, among 2,084 adults ages 18 and older, among which 552 work in an office setting. This online survey is not based on a probability sample, and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Michelle Dillon at mdillon@brodeur.com.

About Courion

With deep experience and more than 10 million users at nearly 600 corporations, Courion is the market leader in Identity and Access Management (IAM), from provisioning to governance to Identity and Access Intelligence (IAI). Courion provides insight from analyzing the big data generated from an organization’s identity and access relationships so users can efficiently and accurately provision, identify and minimize risks, and maintain continuous compliance. As a result, IT costs are reduced and audits expedited. With Courion, you can confidently provide open and compliant access to all while also protecting critical company data and assets from unauthorized access.

For more information, please visit Identity Access Management Software Solutions | Courion (http://www.courion.com) or read www.blog.courion.com.

To read this release online, go to: 1 in 5 employees will open suspicious email and fail to notify IT, says Courion research (http://www.courion.com/company/press_room.html?id=1550)

Courion is a registered trademark of Courion Corporation. All rights reserved. All other company and product names may be trademarks of their respective owners.

Read more here: WESTBOROUGH, Mass.: 1 in 5 Employees Will Open Suspicious Email and Fail to Notify IT, Says Courion Research | Business Wire | Rock Hill Herald Online (http://www.heraldonline.com/2013/09/24/5239184/1-in-5-employees-will-open-suspicious.html#storylink=cpy)

ribshaw

09-24-2013, 08:38 AM

Apple is a tempting phishing target for scammers
24 September, 2013 by Jeremy Kirk, IDG News Service

Spam volumes took a usual seasonal drop in August, but phishing spiked, including a noticeable interest in hijacking Apple accounts.

Spam averaged 67.6 percent of all emails in August, down 3.6 percentage points compared to July, wrote Kaspersky Lab analysts Tatyana Shcherbakova and Maria Vergelis in a blog post. But 5.6 percent of those spam emails contained malicious attachments, an increase of 3.4 percentage points over a month prior.

The most prevalent malware program was ‘Trojan-Spy-html.Fraud.gen’, which was in 8.1 percent of the emails containing malicious attachments. It’s a very old piece of malware, first detected by Kaspersky Lab in 2004.

The malware is lodged inside a bogus HTML page that imitates a registration form for banks or payment services. It asks a victim for account information or personal information, which is then sent to a hacker.

The top 10 most common malicious attachments for August included four ‘ransomware’ programs, which aim to extract money by locking victims’ files or falsely warning they’ve been viewing illegal material.

The ransomware programs block “the work of the operating system and display a banner that gives instructions on how to unblock the computer. For example, the user is told to send a text message with a specific text to a premium-rate number,” the analysts wrote.

Two other very old email worms, Bagle and Mydoom, also made the top 10. After infecting a computer, Bagle infiltrates a person’s email contact list and sends itself out repeatedly. It was the third most common malware in August even though it was also discovered in 2004.

Two variations of Mydoom took the eighth and tenth places. Like Bagle, Mydoom also collects email addresses from infected computers and emails itself.

Phishing attacks rose tenfold, Kaspersky said, but still only amounted to a tiny fraction of overall spam, at .013 percent. Apple was one of the main phishing targets.

“We frequently came across emails that supposedly came from the official address of the company, but which in fact were phishing messages designed to deceive users and steal their logins and passwords,” Kaspersky wrote.

Some of the phishing emails, which purported to come from the ‘Apple Security Center’, warned users that their accounts had been frozen and that they have 48 hours to confirm their details.

Users are instructed to click on a link in the fraudulent email. “However, both the request to confirm the account information on third-party sites and the absence of a personal address should alert users to the risk of fraud,” according to the post.

by Jeremy Kirk, IDG News Service

http://www.macworld.com.au/news/apple-is-a-tempting-phishing-target-for-scammers-108540/#.UkGVEz-TXSk

ribshaw

09-24-2013, 08:56 AM

Rip-Off Alert: Gold coin investment fizzles in scam

Rip-Off Alert: Gold coin investment fizzles in scam

Reported by: Marie Mortera
Email: mmortera@mynews3.com

LAS VEGAS (KSNV MyNews3.com) -- Some investors were promised big returns when they decided to invest thousands of dollars in the gold coin business. In this Rip-Off Alert from Minneapolis, none of it was real.

Nearly 500 victims lost almost $3 million after sinking his money into the International Rarities Corporation, only to learn it was a scam.

It was “complete economic devastation,” said U.S. Postal Inspector Robert Strande. “It wiped out their retirement savings, their complete savings.”

In 2008, when the banking industry was on shaky ground and Wall Street was experiencing a meltdown, opportunistic con men began touting the safety of the precious metals market.

“These victims that are elderly, they come from a generation that believes in the validity and value of coins and precious metals,” Strande said.

Postal inspectors say con men focused on the victims’ fear of an uncertain economic future to get them to buy in, and they did.

“Most people lost a tremendous amount of money -- college savings for their children and grandchildren -- anywhere from $25,000 to $100,000 each transaction.”

Law enforcers say the gold industry had been growing quickly, but it is always important for investors to do their homework.

“Before you get started, you should have an idea yourself for what the coins are worth and then you consult a number of different dealers before you settle on who you are going to deal with,” said assistant U.S. Attorney Karen Schommer.

“Don't turn over your coins to anyone else without a deal in place and have it in writing. Don't just have a verbal agreement.”

David Laurence Marion, 52, the founder of the International Rarities Corporation, was indicted for defrauding clients and still awaits sentencing.

The indictment says Marion laundered his customers’ money to gamble, live large, support his ex-wife and prop up his coin firm.

Rip-Off Alert: Gold coin investment fizzles in scam - Las Vegas MyNews3 - KSNV (http://www.mynews3.com/content/news/story/rip-off-alert-gold-coins-minneapolis-las-vegas/o8hgTjNLQU6seVidfn5aXA.cspx)

6008

ribshaw

09-24-2013, 09:04 AM

Protect Your Parents From Scams
Here's how to talk to Mom and Dad about steering clear of fraudsters

by Sid Kirchheimer, AARP, August 20, 2013

Have you ever had your personal data compromised? Do you have tips other readers could use to avoid these risks? Speak out on our Scams & Fraud message board.

Consider setting up online access to your parents' bank and credit card accounts. This will let you watch over their finances from afar. Look for unusual monthly charges, big and small.

Know the risks. The most common scams against the elderly include phony lottery and sweepstakes seeking upfront fees to enter or collect; government impostors posing as reps from Social Security and Medicare; the grandparents scam, in which a grandchild is supposedly in deep trouble; offers for free or discount medications (including anti-aging drugs) or medical equipment; and credit card fraud and investment schemes.

Women are twice as likely as men to fall for elder financial abuse, especially when they're in their 80s and when living alone. Either gender with a Type A personality — used to making quick decisions — most frequently falls for "act now!" scams like fake lotteries. For any scam, an especially vulnerable time is the three years after some major stress, such as the loss of a spouse or a change in health or housing.
Other steps to consider

• Unlist your parents' phone number so scammers can't get it. Consider replacing the landline with a cellphone, where scam calls are less frequent.

• Put your parents' addresses on opt-out lists with the Direct Marketing Association. Once done, legitimate vendors won't send junk mail, and parents will know that what arrives is likely from scammers. That mail should be reported to the U.S. Postal Inspection Service.

• Check their credit reports at AnnualCreditReport.com to ensure that fraudulent new accounts haven't been opened in their names.

• If Mom and Dad won't heed your warnings, AARP can help. You or they can call the AARP Fraud Fighter Call Center at 800-646-2283 toll-free. Expect a voicemail greeting, but messages are usually returned within 48 hours. Says program director Jean Mathisen: "We get a lot of calls from children asking that we contact their parents" about possible scams, and even more from elders suspecting that they have been caught in a scam. "But I don't want to tell my children," they say.

Sid Kirchheimer writes about consumer issues for AARP Media.

Protecting Your Elderly Parents and Their Money From Scams and Fraud - AARP (http://www.aarp.org/money/scams-fraud/info-08-2013/protect-your-parents-from-scams.2.html)

ribshaw

09-24-2013, 09:30 AM

YICK!!!

6009

A conman called Errol Flynn carried a dead rodent with him as he posed as a rat catcher to fleece people out of thousands of pounds.

Together with his brother, Timothy, Flynn duped pensioners out of at least £50,000, a court heard.

During their nine-month crime spree, the brothers, who worked with an unnamed 16-year-old, would pose as pest control officers and inform residents of a rat infestation in their homes.

One of them would clamber into the loft and emerge with a dead rodent they carried with them.

They would charge up to £25,000 to rid the property of rats.

They were found guilty of two counts of fraud by false misrepresentation at Birmingham crown court.

Errol Flynn, 47, was jailed for four years and six months, while Timothy, 36, got five years and four months.

The teenager was detained for eight months.

It is not clear how many people across Birmingham had been duped.

Detective Constable Deborah Simmonds from West Midlands Police admitted none of the money stolen by the fraudsters had ever been recovered.

‘Unfortunately, we may never know the true extent of the trio’s offending and it is quite possible that there are other people out there who have been conned in a similar way and not realised it,’ she said.

‘I hope that the victims have some closure knowing that the Flynn brothers and the teenager have been put behind bars where they cannot harm other elderly people.’

Errol Flynn rat catcher scam: Con artist who carried dead rat jailed along with brother Timothy Flynn | Metro News (http://metro.co.uk/2013/09/24/50000-dead-rat-scam-brothers-jailed-4099542/)

ribshaw

09-24-2013, 09:38 AM

(KMOV) –A News 4 Investigation uncovered a felon with a long criminal past targeting financially-strapped residents in St. Louis and five other states.

Rhonda Jenkins of Centerville didn’t know about Chrisheena McGee’s checkered past when she got roped into a program called “Ride 2 Freedom.”

“They said they work with local car dealers to get vehicles,” said Jenkins.

She is not out an $85 application fee but she’s not alone, a woman in Florida also fell victim to McGee.

A male victim said he gave $800 up front as an application fee. The program targeted the poor people who desperately needed cars and they all had faith because of the way the program was sold.

“Ride 2 Freedom” is registered in Florida, with one of the listed directors being Rosia Duncan.

News 4’s Chris Nagus travelled to Hammond Louisiana to find her at a house of prayer and ministry.

She said it all got started on her computer and McGee was the brains behind the operation but she used Duncan’s name and ministry to rip off victims.

McGee used a fake name dealing with her customers calling herself Malachi

“I told her why you are using the name Chris Malachi, that’s not your real name,” Duncan said.

McGee is also accused of using the name Sondra Clark based on a character from the 80’s sitcom 227.

Duncan filed a police report claiming McGee stole her identity and racked up thousands in debt to the run the phony business. The Louisiana Attorney General is familiar with McGee’s antics.

Steve Martin prosecuted McGee in 2004 when she created a bogus online university targeted at stay-at-home mothers.

Martin said the victims paid for training but never received it. “We know one bank here lost right at $90,000 in charge backs, FBI agents who worked the case with our office estimate between one and two million dollars.”

Even after pleading guilty to theft, she did it again. Martin said she was busted for another internet fraud a few weeks after getting out of prison for the first crime.

Nagus went to McGee’s home but found her mother was the only one home. Nagus then went to the Louisiana Sheriff’s Office to inform them of what she was allegedly up to.

A couple weeks after Nagus returned to St. Louis, the sheriff called to say McGee was arrested and discovered evidence of more internet businesses tied to our computer guru.

Her probation was revoked and she is facing charges of identity theft and computer fraud.

Con artist charged with using religion to scam parishioners across 5 states | khou.com Houston (http://www.khou.com/news/national/Con-artist-charged-with-using-religion-to-scam-parishioners-across-5-states--225008772.html)

=================================

While the stories and characters change, the cons almost never do.

The miracle cars scam was an advance fee fraud that ran from 1997 to 2002. It was one of the largest advance fee frauds in world history, as well as the largest automobile fraud in American history. In its run of just over four years, over 4,000 people were tricked into paying an "advance fee"; in order to receive the “chartable bequest” of a motor vehicle, as required by a "Decedent’s", “Last Will and Testament”. Neither the deceased; his alleged will; or an estate of any kind, ever existed. While over 7,000 "cars", were to be "gifted" and transferred to new owners; no cars existed either. In the process the victims were taken for over $21 million.

Miracle cars scam - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Miracle_cars_scam)

ribshaw

09-25-2013, 03:09 PM

SCAMMER dornchyke@gmail.com
SCAMMER donaldmoore@worldonline.co.za

Emails about diamonds, gold, black money, Spanish Prisoners, trust funds, and sending cash Western Union, Green Dot, or Moneygram.

6016

Seriously.

Was sent to a friend of mine
Forwarded message ----------
From: "donaldmoore@worldonline.co.za" <donaldmoore@worldonline.co.za>
Date: Sep 12, 2013 9:57 AM
Subject: business partnership
To:

Dear Sir,Madam

I am Mr. Donald Dosi moore from ivory coast,I am here with my cash for investment purposes,
I am contacting you for your kind assistance for investment in south africa.

I really want to invest towards real estate properties, Hotel and construction as the case may be.
But if their is any other investment you think that will be profitable for me, please let me know.
i am in South Africa for now and i shall be waiting to hear from you soonest.

Do forward me with your direct contact number for further telephone conversations for better understanding.or you can contact me direct to my mobile number 0730218995 or email me on dornchyke@gmail.com

Awaiting for your urgent response.

Regards

Mr. Donald Moore

ribshaw

09-25-2013, 03:20 PM

This was sent to me from someone in South America asking about it. Previously I had written about this guy as part of another set of scammers.

BS RESPONDER / NOTIFICACIÓN.

SCAMMER stave.robson@consultant.com (stave.robson@consultant.com) Agregar a contactos 18/09/2013

BANCA Y FINANZAS.
SEDE /: No. 36 ST ANDREWS CUADRADO
Edimburgo EH2 2YB Escocia.
POSTE LIBRE: P O Box 1527
Tel.: +447 012 960 148
Fax: +447 031 889 559

Por su amable atención,

Sir,

En realidad antes han dicho sobre usted por la joven señorita Sylvia Moyor que es (los familiares) que desea que seas su administrador / representante para la reclamación del depósito de su difunto padre con este banco. Su difunto padre Mr.Wagane Moyor es uno de nuestros últimos clientes con suma importante cantidad de dinero que deposite con nosotros.
De ahí que haya sido realmente nombrado un fiduciario para representar a los familiares. Sin embargo antes de que nuestro banco transacciones comerciales relativas a la transferencia de los fondos a su banco, nos gustaría que usted envíe lo siguiente de inmediato a nuestro banco.

1.A poder notarial que permita a reclamar y transferir los fondos a su cuenta bancaria en su nombre.

Nota: un abogado senegalés residente debe apoyar este Poder ya que el dinero se origina de África.

2.El certificado de defunción de su padre fallecido confirmar su muerte.

3.A copia del estado de cuenta emitido a su padre fallecido por nuestro banco.

Declaración jurada 4.An de apoyo por parte de Senegal alto tribunal en África.

Nota: Los anteriores son obligatorias, y son necesarias para proteger nuestros intereses, el suyo y los familiares después de haber realizado la transferencia.

Para los documentos y la información arriba es parte de los protocolos de seguridad para evitar las reclamaciones fraudulentas o un tomar ventaja indebida de su absencecy. En los recibos de los documentos / información anterior, vamos a verificarlas y una vez que se hayan satisfecho, vamos a procesar su reclamo y efectuar la transferencia.

Le saluda atentamente,
Sir.Steve Robson.
Jefe del departamento de transferencia.

NOTA: Este mensaje está sujeto a la Royal Bank of Scotland renuncia

El Royal Bank of Scotland plc, Registrado en Escocia con N º 90312. Domicilio social: 36 St Andrew Square, Edimburgo EH2 2YB
Autorizada y regulada por la Financial Services Authority.
Este mensaje de correo electrónico es confidencial y para uso exclusivo de su destinatario. Si el mensaje es recibido por alguien que no sea el destinatario, por favor devolver el mensaje al remitente respondiendo al mismo y luego borre el mensaje de su computadora. Internet de los correos electrónicos no son necesariamente seguras. El Royal Bank of Scotland plc no acepta responsabilidad por los cambios realizados en este mensaje después de haber sido enviado.
Si bien todas las precauciones razonables se han tomado para evitar la transmisión del virus, es la responsabilidad del receptor para asegurar que la transmisión posterior, la apertura o utilización de este mensaje y cualquier archivo adjunto no afectarán negativamente a sus sistemas o datos. No se acepta responsabilidad por el Royal Bank of Scotland plc en este sentido y el destinatario debe llevar a cabo dicho virus y otras comprobaciones que estime oportunas.

NO SEND NOTHING.
ANYTHING YOU SEND WILL BE STOLEN. THESE ARE THEIVES.

==============

NO ENVIAR NADA.
NADA DE ENVIAR será robado. ESTAS SON ladrones.

+4470 numbers are a major red flag when it comes to scams!

Personal forwarding phone numbers (also called "UK global redirects") are easily recognized, and they are a major red flag when it comes to identifying scams or scammers. The number is often given in the format +447024013818. The country code, (the +44) seemingly indicates that the number is UK-based number. The 70 prefix, however, identifies it as a personal forwarding number

=========================

4470 números son una señal de advertencia importante cuando se trata de estafas!

Números de teléfono de reenvío de personal (también llamado "Reino Unido redirecciones globales") se reconocen fácilmente, y son una gran bandera roja cuando se trata de identificar las estafas o estafadores. El número se da a menudo en el formato 447024013818. El código de país, (el 44) al parecer indica que el número es el número del Reino Unido. El prefijo 70, sin embargo, lo identifica como un número de reenvío de personal.

============================

Nigerian scam - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Nigerian_scam)
Nigerian scam - Wikipedia, the free encyclopedia
en.wikipedia.org
There are many variations on this type of scam, including advance fee fraud, Nigerian Letter, Fifo's Fraud, Spanish Prisoner Scam, black money scam. The number "419" refers to the article of the Nigerian Criminal Code dealing with fraud.[1] The scam has been used with fax and traditional mail, and i...
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ribshaw

09-25-2013, 03:35 PM

E-mail phishing scam hides behind known company names
By Irma Widjojo/Times-Herald staff writer

Maureen "Barbi" McGlynn said she immediately knew it was too good to be true.

McGlynn said she received an email about a week ago from what appears to be the shipping company FedEx letting her know she had a package from India waiting for her, and asking for a response.

When she responded, it said that she had won $1.5 million in a British lottery, but to claim it she was told to send $221 for "taxes and shipping fees" and her personal information, including her Social Security number, for "verification."

"I knew it was a scam immediately," McGlynn said. The 72-year-old woman even called FedEx to verify, she said.

In essence, McGlynn's experience is similar to the now-familiar Nigerian letter fraud, which usually offers the recipient millions of dollars from a "Nigerian government official" but asks for personal identification and financial information.

Solano County Deputy District Attorney Mary Smith, of the consumer fraud unit, stressed how important it is to never give any sensitive personal information to anyone, or give money for something that "you never asked for."

"Do not, under any circumstance, respond (to such requests)," Smith said.

She added the best thing to do after receiving such email is to forward it to the email service providers, and report it to Federal Trade Commission (http://www.ftc.gov), under consumer protection.

Smith's unit will investigate a fraud if or when it has become a pattern in the area.

"If people contact us, we keep records of them," Smith said. "If we get several complaints about the same company, or see a pattern violation from a single company, then we get involved."

Though McGlynn said she was quick not to fall for the recent email, she's afraid that some people might be more willing to trust it because it was using the name of an established company.

"Let's face it, some people can barely make it," McGlynn said. "So I can see how some people might (believe the email). There are people, older people, who may fall for it. I don't want them to lose everything because of something like this."

Contact staff writer Irma Widjojo at (707) 553-6835 or iwidjojo@timesheraldonline.com. Follow her on Twitter @IrmaVTH.

https://news.google.com/news/section?pz=1&cf=all&q=Phising%20Scam&siidp=cb3aa15a03d3a8376aa508fc6d8cb376652a&ict=ln

ribshaw

09-25-2013, 03:47 PM

'iOS 7 makes your iPhone waterproof' ad a scam dunk

A fake ad circulating on the Web appears to have fooled some into believing that Apple's new operating system waterproofs their phones.
Chris Matyszczyk
by Chris Matyszczyk
September 24, 2013 7:19 AM PDT

Follow @ChrisMatyszczyk
Get email alerts

In the same category as these fine tips is "download iOS 7 and your iPhone will be waterproof."

There are people in the world who may have bought this breakthrough hook, line, and sunken iPhone.

As Sky News reports, the cause was an ad that wafted about the Web.

The hoax ad looks like an Apple ad. However, the promises it makes are more extreme than any Apple ad you've ever seen.

For it teased: "Upgrade to iOS 7 and become waterproof."

The mere syntax there might have caused some to stop and wonder. However, the ad goes on to claim: "In an emergency, a smart switch will shut off the phone's power supply and corresponding components to prevent any damage to your iPhone's delicate circuitry."

Some people tweeted as if they believed every word.
More Technically Incorrect

For example a tweeter called Joe shrieked: "Ok whoever said IOS7 is waterproof GO F*** YOURSELF."

Another tweeter with the handle wihe raged: "wtf #iOS7 isnt waterproof!!! now my phones at the bottom of the river #f***."

I suspect these people might not have been as fooled as they imply.

However, someone called Matthew Ecton offered a tweet: "Woah, iOS7 makes your phone waterproof."

Sometime later, he offered another tweet, which may have been related: "Wow, I'm a dumbass."

These things can swiftly become painful legends.

One can only hope that no one actually decided to experiment, in good faith, to see just what a wonderful feature iOS 7 offered.

This ad, you see, includes one further temptation: "Waterproofing covered by Apple's warranty policy."

'iOS 7 makes your iPhone waterproof' ad a scam dunk | Technically Incorrect - CNET News (http://news.cnet.com/8301-17852_3-57604306-71/ios-7-makes-your-iphone-waterproof-ad-a-scam-dunk/)

ribshaw

09-25-2013, 03:49 PM

A law student fears she could be attacked after hackers stole her identity and started using it to make money in an ‘e-whoring’ scam.

Jazmine Jones said cyber bullies had threatened to set up bank accounts in her name after emailing a picture of her driving licence which they had stolen from her personal email account.

The 23-year-old’s Facebook was also hacked and pictures and information used to set up fake accounts advertising her as a prostitute.

‘These accounts have been messaging guys on Facebook asking them to borrow money and saying I’m an escort to get money,’ she said. ‘It’s basically identity theft. It’s getting to the point that I feel I could get attacked.’

Ms Jones, of Beckenham, south-east London, said, one man called James had handed over £250 after an account in her name messaged him saying she was stranded and needed money.

Despite repeated calls to the police, Ms Jones said she was told that ‘unless it is a terrorism threat there is nothing they can do about it’.

A police spokesman said it was up to Facebook to sort Ms Jones’s issues out, while the site said it took such cases ‘very seriously’.

Jazmine Jones: Hackers steal student's identity in Facebook 'e-whoring' scam | Metro News (http://metro.co.uk/2013/09/25/email-hackers-steal-law-students-identity-in-e-whoring-scam-4111921/)

littleroundman

09-26-2013, 04:57 AM

Internet visa scam strands family

On her 35th birthday, Agne Jogisalu arrived in Perth with her three daughters filled with hope.

Promised a work visa, the kindergarten teacher believed she could build a new life in Australia free from the grinding poverty of her native Estonia.

But a month after arriving, the family found themselves stranded and homeless after being told they were the likely victims of a cruel and elaborate visa scam.

"After I realised it was a fraud, I started panicking," Ms Jogisalu said.

She was surfing the web in Estonia when an advertisement popped up spruiking the benefits of working in Australia.

She filled in details and half an hour later a woman calling herself Laura phoned saying she was with the migration firm Ausfis.

"Laura" told her it would cost 308 euro to arrange a visa for herself and three children - a month's salary," Ms Jogisalu said.

"At that point I never knew anyone who had done it, had applied for a visa, so I had no idea how long it could take," she said.

She paid for the work visa with a loan and got tourist visas for Australia, believing she would get the working visa soon after arriving.

The family flew to Australia via Singapore and stayed in hostels before running out of money and moving to Salvation Army crisis accommodation.

Visitors to Ausfis.com are greeted with a slick video of a woman claiming she can cut through red tape and increase the chances of working in Australia.

The site was registered in 2009 through an anonymous Canadian domain service. Its address is listed as a post box in London.

Travel and scam-related online message boards carry many stories of others who say they lost money to Ausfis after the company used hard-sell tactics to get their credit card details.

A man calling himself Eric Smith answered the 1800 contact number on the website.

"Mr Smith" claimed Ausfis offered pre-assessment services to tell people if they were eligible for an Australian visa.

Its "legal team" then handled visa applications if the "pre-assessment" was accepted, he said.

He claimed to be based at the London address but cut the call when told _The West Australian _knew it was just a post box.

Federal Migration Agents Registration Authority chief executive Stephen Wood said Ausfis did not have a registered migration agent in Australia.

He said an internet search would reveal many stories of people who had been scammed.

Immigration Department spokesman Sandi Logan did not respond to requests for comment.

ribshaw

09-26-2013, 03:58 PM

Several sources, speaking under condition of anonymity, have told Xpress that groups known as “Women's Wisdom Circle,” “Women's Gifting Circle,” and similar names are present in the Asheville area.

According to the sources, as well as reports from other states, the model asks women to give $5,000 to the group in expectation of receiving $40,000 as more people join the groups and donate their $5,000. The groups also meet to talk about their lives, concerns, etc. As the financial part of the model requires ever-increasing numbers of new members if it's going to pay back others, it meets the definition of a pyramid scheme under several states' laws, specifically resembling the so-called Eight Ball scheme.

One of the women, a local business owner who refused to join the group, wrote to Xpress that the issue is “causing division among women in the community and conflicts when those approached do not want to join.”

State departments of justice in Oregon, Wisconsin, Michigan, New Mexico, New York, Colorado, and California, among others, have all targeted the practice as an illegal pyramid scheme, resulting in prosecutions or lawsuits. As far back as 2003, a Reader's Digest article noted the spread of the practice nationwide. It's even cropped up overseas, where the United Kingdom banned it in 2001.

'Women's gifting circle' pyramid scheme reportedly in Asheville | Mountain Xpress | Asheville, NC (http://www.mountainx.com/article/53043/Womens-gifting-circle-pyramid-scheme-reportedly-in-Asheville)

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ribshaw

09-26-2013, 04:10 PM

There are some good tips in this article that go beyond just start ups. It never ceases to amaze me how many people pitching investments have very questionable pasts, and just a little checking can save a ton of cash.

How To Avoid Investment Scams In The Startup World
Martin Zwilling, Startup Professionals Musings Sep. 22, 2013, 9:30 AM 26

Martin Zwilling is a veteran startup mentor, executive, blogger, author, tech professional, and angel investor

After you have heard a few startup success stories, like Google, Facebook, and Microsoft, you may be tempted to invest some money yourself, maybe by pooling your funds with other investors who claim to have a great track record. My advice is to leave the investing in startups to the professionals (or friends and fools).

First of all, despite a few visible blowout successes, the odds of a payback from investing in startups is very low (thatâ€™s why VCs look for 10X returns to cover failures). Most investors agree the odds are better buying traditional public stocks, or even commodities. Even the hot new â€œcrowdsourcingâ€ companies springing up have yet to show any significant returns to investors.

Secondly, there are many scammers out there who look and act just like Bernie Madoff, even though he is safely tucked away in prison for the next 150 years. Most frauds are not on the scale set by Bernie, but even a few thousand dollars lost would hurt you and me as much as a few million did for some of his victims.

So what can you do, and what are the â€œred flagsâ€ to look for as you do your due diligence before pooling your money with other investors, or accepting money for your startup from investors? Here are some common sense tips:

Get financial statements and verify. Every reputable investment firm is registered with FINRA and files regular reports with the SEC. Look for these and investigate thoroughly to check the truth of every statement about the company. Ask for references, and call or visit previous â€œsuccessesâ€ of the company to verify experience and satisfaction.

Avoid â€œinsider deals.â€ The Internet has just made it easier and faster for vultures to feed on entrepreneurs tempted by the possibility of an â€œinside deal.â€ Someone you donâ€™t know promises you an â€œinsideâ€ deal. Why would a stranger pick you out to make rich? Does that make any sense?

Listen for â€œunnamed sources.â€ Run away if all current investments are with â€œsensitiveâ€ clients, who are unnamed or unable to be contacted. Remember the old newspaper publishing rule of â€œAll facts must be verified by two independent sources.â€ People claiming to be unbiased may actually be paid promoters or company insiders.

Any mention of â€œoffshore.â€ Watch out if someone has a complex plan involving offshore bank financing or gemstones or oil leases in Iran to make you rich. Why get involved in a complicated scheme you donâ€™t understand, when there are plenty of opportunities that are legal and you can understand?

Sounds too good to be true. The age-old wisdom here is that if it sounds too good to be true, itâ€™s probably not true. I continue to be amazed at the fact that the Secret Service still gets 100 calls per day from victims of the Nigerian unclaimed cash scam alone. What are these people thinking?

Here are a few questions you should ask that might allay any remaining qualms, or convince you to run immediately:

How much am I paying in commission or fees?
Has your source been involved in any arbitration cases or lawsuits?
How do they get paid? By commission? Amount of assets managed? Another method?
Has the firm ever been disciplined by the SEC or a state regulator?

Unfortunately, in the startup and investment business, we are trained to rely on networking, connections, and professional integrity for many decisions. Remember that people who run scams may be highly polished and sophisticated, and can wrap their con games in such an air of legitimacy it may be hard to see the truth.

Donâ€™t assume you are safe now that Bernie is out of the picture. If you have evidence of fraud, donâ€™t be too embarrassed to contact the Securities and Exchange Commission. If others had done this sooner, his clones wouldnâ€™t be out there today looking to help you out (of your money).

Marty Zwilling

Read more: Startup Professionals Musings: How To Avoid Investment Scams In The Startup World (http://blog.startupprofessionals.com/2013/09/how-to-avoid-investment-scams-in.html#ixzz2g2FXHHp2)

ribshaw

09-26-2013, 04:14 PM

Watch out for the 'wobbly wheel' scam targeting drivers for robberies
Thursday, September 26, 2013

HOUSTON (KTRK) -- The Houston Police Department wants to make citizens aware of a scam gaining popularity in the Houston area, dubbed the "wobbly wheel" scam.

Related Content
More: Turn in suspects for cash rewards

In this scam, conmen tell victims one of their vehicle's wheels is loose or damaged, and then force the victim to pay for an unneeded repair.

Police say the scam begins when the suspects approach the victim in a parking lot or attempt to motion the citizen over while driving. In most cases, the suspects then represent themselves as AAA employees or mechanics and offer to address the issue for the victim.

One suspect then pretends to fix the victim's tire while other suspects distract the victim(s). The suspect typically does not receive approval from the victim prior to "working" on the vehicle and the services are not discussed until after the "repair." When the victim protests payment, the suspects pressure the victim into payment by using a large number of suspects as a show of force. Additionally, victims report articles missing from their vehicle after the suspects leave the scene.

HPD officers caution anyone who is told there might be an issue with a vehicle to take it to a licensed mechanic to be examined or to contact AAA or another roadside service directly. Citizens are also cautioned not to pull over when motioned to by an unknown driver. If you feel there is a problem with your vehicle, police advise you to pull over in a well-lighted, populated area to examine the issue.

Recent reported cases include:

600 Southwest Freeway - August 28 at 3pm
1000 Studemont - August 21 at 1:20pm
2106 Swift - February 1 at 1pm
409 Tabor - May 20 at 10:30am

Anyone victimized in this scam is urged to report it to the HPD Major Offenders Division at 713-308-3100.

Watch out for the 'wobbly wheel' scam targeting drivers for robberies | abc13.com (http://abclocal.go.com/ktrk/story?section=news/crime_tracker&id=9262681)

ribshaw

09-26-2013, 04:22 PM

This is a pretty common ruse scammers use to gain social proof. Either use some of the money for pictures with politicians or donations to charity, when its not your money it is easy to be generous.

Why does a scam artist with multiple identities want to subpoena John Boehner in a fraud case in Ohio that involves a prominent charity for Army veterans and a suitcase full of cash?

Meet Bobby Thompson, a scam artist accused of defrauding people out of more than a $100 million that they thought was being donated to a fake charity, the United States Navy Veterans Association. Authorities have also Thompson identified as Harvard-trained lawyer and former military intelligence officer John Donald Cody. Investigations into the charity by the St. Petersburg Times in 2010 revealed that it was nothing more than an elaborate lie. Thompson was arrested in May 2012, finally, after this slight hiccup in the investigation:

[Thompson] disappeared for almost two years after his 2010 indictment on theft, money laundering and other charges tied to his Tampa, Fla.-based charity. He was tracked and arrested last year in Portland, Ore., where agents and deputy marshals found him with fake IDs and a suitcase containing $980,000 in cash.

Thompson's trial starts on Monday in Cleveland, and the defense has subpoenaed Boehner and two former Ohio attorney generals, Jim Petro and Betty Montgomery. Why, you ask? Because the defense wants to show that, despite his other faults, Thompson's multiple donations to prominent Republicans were all legal. Other Republican names you may recognize that received donations from this guy:

Former President George W. Bush
Former Republican presidential nominee Mitt Romney
Former Republican presidential nominee John McCain
Former Republican candidate Rudy Giuliani.

That's a whole lot of prominent Republicans. But Boehner doesn't have anything to fear as long as Ohio Attorney General Mike DeWine is here. DeWine, who led the investigation into Thompson's fraudulent activity, wants to make sure the subpoenas go away because they aren't instrumental to the case against Thompson. He described Thompson's political generosity as "kind of a sidebar to the scam" that's "not really an essential part of proving the elements of the crime of him taking this money." The donations are at least somewhat relevant, though, because DeWine said he believes Thompson used photos of himself standing next to all those important political big shots to solicit money for his fake charity.

Why a Scam Artist Wants to Subpoena John Boehner - Connor Simpson - The Atlantic Wire (http://www.theatlanticwire.com/politics/2013/09/why-scam-artist-wants-subpoena-john-boehner/69869/)

ribshaw

09-27-2013, 08:25 AM

Michelle Obama's ID details hacked from data brokers
Michelle Obama The social security numbers of Michelle Obama and many others were stolen from data brokers

Hackers stole millions of social security numbers by cracking open the networks of large US data brokers, reveals an investigation.

The ID details of US First Lady Michelle Obama and many other famous people were exposed by the hack attack.

Journalist Brian Krebs tracked the information back to hackers who ran an online market for confidential data.

He found they got their data by compromising computers sitting on the data brokers' corporate networks.
Deep access

In March, Krebs, as well as the FBI and US Secret Service, started looking into how the exposed.su website was getting hold of social security numbers and other details of many famous Americans.

The mysterious website, which has now been closed down, published confidential information about Bill Gates, Beyonce Knowles, Jay-Z, Ashton Kutcher and many others.

The investigation into exposed.su showed it had bought its information from another site, called SSNDOB, that advertised itself as a market for just such private data. SSNDOB sold data records on individuals for as little as 50 cents (30p). The records of about four million Americans seem to have been accessed via the data-selling site.

In early summer, wrote Krebs in a blogpost, SSNDOB had itself been attacked and its database stolen, copied and widely shared.

Analysis of the SSNDOB database by Krebs and forensic computer expert Alex Holden, of Hold Security, revealed the ID data being sold had come from machines sitting on the internal networks of several American information aggregation firms. Compromised computers or systems at LexisNexis, Dun & Bradstreet and Kroll were all named by Krebs as the sources of the data.

In the commercial world, the three firms are well known for providing businesses with data about potential commercial partners and customers. The open access the hackers enjoyed meant they could run their own queries about individuals via the databases of the three firms.

"All three victim companies said they are working with federal authorities and third-party forensics firms in the early stages of determining how far the breaches extend," wrote Krebs on his blog.

LexisNexis issued a statement denying that its information was exposed.

"To date [we] have found no evidence that customer or consumer data were reached or retrieved," said the statement.

A spokeswoman for the FBI told Reuters it was investigating the breaches identified by Krebs but would give no more details.

BBC News - Michelle Obama's ID details hacked from data brokers (http://www.bbc.co.uk/news/technology-24284277)

ribshaw

09-27-2013, 10:00 AM

SCAMMER rbtbales@yahoo.com

6035

List of Fake Job Scam Examples
Avoiding Fake Job Scams

By Alison Doyle, About.com Guide
Ads:

"List of Fake Job Scam Examples"

Watch Out for Fake Job Scams

There are many scams that involve fake job listings. With a fake job scam, a scammer lists a job, but the job doesn't really exist.

The scammer uses the job listing to get job seekers to provide personal information including their social security number, credit card information, and/or bank account information. The information is then used to access your bank account or your credit cards and/or to steal your identity.

In addition, fake job scams often attempt to get job seekers to wire money from their bank, send money via Western Union or otherwise send money to the scammer.

Some of these job scams were on Craigslist. However, Craigslist isn't the only job site where there are scam job postings or where your email address may be collected in order to attempt to scam you.

Fake Job Scam Examples

Credit Report Scam
Here's an email sent to a Craigslist applicant: Company would like to take this moment to thank you for your response to our Craigslist job posting, as well as inform you that, after reading through your resume, we are interested in discussing this job opportunity with you in person. In order to proceed to the next step of the hiring process you will need to get your credit score checked. The applicant is directed to a website where they will input personal information including name, address, social security number, etc.

Fake Job Application Scam
This email asks to complete a job application application online. The link takes you to a website where you are to fill out all info needed to steal your identity. The email says: We look forward to reviewing your application and bringing you in for an interview, but can not do so until you complete our company application.

Pay for Background Check Scam
With this scam, a job seeker is told a position has just opened up and an over the phone interview is conducted. The applicant is notified that they would be responsible for the cost of the background check. Then the applicant is told that they have to purchase pre-paid $75 Visa debit card and send it to the interviewer to pay for the background check.

Pay for Software/Programs Scam
The company ask applicants to set up a Yahoo Messenger account for the job briefing and interview. The company then explains that the applicant will need to buy programs in advance and say they will reimburse the candidate.

Bait and Switch Scam: PR/Marketing
This job description isn't what it seems: Start entry-level, develop transferable skills, work with the world's leading corporations, advance to new positions, make money, and along the way figure out what you really want to be when you grow up. The job is actually door to door sales.

Pay for Training Materials Scam
The company asks candidates to complete interview tasks such as testing on accounting questions. Then they will tell you that they are going to set you up with software so you can work at home. Instead of a package they send a cashier's check. They ask the applicant to deposit the check into their bank then withdraw funds, and then send those funds Western Union to get the "training" materials.

Pay for Online Training Scam
In this scam, the job seeker receives an email from a person about a job they applied for that was filled. They had another job that the person was qualified for, but they had to pay to do some online training. This scam used the name of a legitimate company and an email address similar to the real company name.

Direct Deposit Before Interview Scam
The applicant is offered the job via email and told that all employees are paid via Direct Deposit with the company's banking institution - no additional cost for you. The applicant is sent to a website to sign up and told: "After registering your Direct Deposit confirmation, please respond back to this email with your ideal interview date/time. Remember, you need your Direct Deposit account info prior to your interview, as we will be processing your payment information at that time."

Trial Employment Scam
The applicant is told that they were selected as one of two people to go through a three week trial period. The name of the company and the website seem legitimate, but they ask you to fill out a contract with personal information including your Social Security number.

How to Avoid Job Scams
As you can see, it can be hard to tell if a job is a scam or legitimate. Here's how to avoid scams, how to check out companies and jobs, and what scams to watch out for when you are job searching.

How to Report a Scam
If you've been taken advantage of, here's how to report a scam, along with the information you will need to file a report and here's how to add a scam to our list of job scams.

Disclaimer:
You may see advertisements for work at home jobs on this page, because that's the topic of the article. Just because you see an ad here, that doesn't make it a legitimate company. Carefully investigate companies that you are interested in.

List of Fake Job Scam Examples (http://jobsearch.about.com/od/jobsearchscams/a/fake-job-scams.htm)

ribshaw

09-28-2013, 10:51 AM

Obamacare scams start in full this week. This is the official US government website. www.HealthCare.gov,

I would consider any calls or emails to be scams, people also need to be aware of fake websites.

6047

http://www.bbb.org/scam-stopper/top-scams.php

6048

ribshaw

09-28-2013, 10:53 AM

Scammers are constantly changing their tactics. But understanding the science behind their techniques will help protect you against new scams.

The Financial Industry Regulatory Authority (FINRA) funded research to better understand these tactics. The study found that many of these techniques are similar to marketing approaches used by legitimate businesses.

The difference is that a "hard sell" from a legitimate business may simply mean you end up buying something you didn't really want or need. A scam takes your money and leaves you with nothing.
Establishing a Connection

The first step a scammer takes is gaining your trust.

The scammer wants to build a relationship with you so you will not question his motivations. He may use social media to learn more about you, including a potential "hot button" issue that may elicit a specific response. For example, he may learn that you're single, and he may use that information for his "sales pitch."

Con artists also use a tool called reciprocity. The scammer will extend a small favor to convince you he is a good person and to establish a positive relationship with you. For example, you may meet someone who gives you a tip about a "unique investment opportunity."
What You Can Do

Be cautious about all investment opportunities, business prospects or work-from-home offers. Every investment has risks, but a professional investment broker or advisor is properly licensed. Do your research. If the promised return on investment is too great, that's a red flag. For more information on broker-dealers and registered representatives, visit www.finra.org/brokercheck.

A con artist will attempt to use his friendship with you to overcome your concerns or to discourage you from researching his offer. A true friend would never want you to make a financial investment without allowing you to thoroughly research the opportunity.
Source Credibility

A scammer uses lots of techniques to make herself look credible. She might claim to be from a legitimate business, but uses a fake website, business cards or phone number. The scammer provides the information to potential victims to "prove" that her connection to the trusted business is real.

It's easy to set up a phony website or to get an unregistered cell phone. The scam artist may look and sound so convincing that the victim doesn't feel the need to check out her real qualifications.
What You Can Do

Check out every business by going directly to their website. Do not follow a link in an email. Often scammers will use a website that's similar but not exact- www.wesernunion.com, for example. Type in the URL yourself.

Talk to someone at the business to verify that the scammer is who she says she is. In addition, check out the company's BBB Business Review at our search page. BBB often puts an alert on the report of a business if a scammer has been using a company's good name for disreputable purposes.
Scams that Play on Emotion

Scam artists use emotions to get victims to make quick decisions before they have time to think.

Scam artists prey upon the desire we all have to get rich quickly and easily or to help a loved one in need. They use this impulse to overcome the victim's reasoning, telling the victim that he or she must act quickly.

For example, in the "emergency" scenario, the scam artist calls or emails to tell you that one of your loved ones is in desperate need of money and to send funds immediately. In some cases, the scam artist will pretend to be a grandchild or friend of a loved one. He may tell you he is stranded in another country or that he has been arrested or in an accident and that you need to act immediately. The scammer counts on the fact that emotional decision-making is often not rational.
What You Can Do

Never react quickly to a request for money. Call other family members to investigate if a loved one is truly in need.

If you are presented with a "once in a lifetime" chance at riches, verify the opportunity. If the deal sounds too good to be true, it probably is.

http://www.bbb.org/scam-stopper/the-science-of-scams.php

ribshaw

09-28-2013, 11:45 AM

Residents in the QCA, including KWQC employees have reported receiving strange automated phone calls on Thursday morning, September 26, 2013.

The Bettendorf Police Department has labeled this as another phishing phone scam.

Officials say various Quad City banks and credit unions have contacted local law enforcement agencies after receiving calls from customers.

The way it works is customers would receive a phone call, either on their landline or cell phone, from someone claiming to be from their bank or credit union.

They are then told that their bank card has been deactivated and they need to enter or say their 16 digit card number and pin number to reactivate the card.

Officials remind bank and credit union customers not to give out personal information, including bank and pin numbers over the phone.

They say if you received this type of call and gave your card and pin information, contact your bank immediately and then the police.

http://www.kwqc.com/story/23538748/phone-phishing-scam-hits-qca

ribshaw

09-28-2013, 11:50 AM

You can't even trust a wolf-boy these days.

He duped Berlin’s authorities into believing he was an abandoned and destitute 17-year-old waif who had roamed the woods of central Europe for five years. He spent the next nine months in a social services hostel costing taxpayers more than €30,000 (£25,000), only to be finally unmasked last year.

Robin van Helsum, a 21-year-old Dutch citizen, better known as Germany’s mystery “Forest Boy”, was ordered to do 150 hours’ community service for carrying out his elaborate hoax which kept police, social services and the media guessing for almost a year. He was also ordered to undergo counselling.

Addressing the public outcry over the cost of van Helsum’s care, Berlin court spokesman Tobias Kaehne said that van Helsum would have cost taxpayers a similar sum if he had not lied about his age to gain a place in a hostel for young people. “It would have cost the same if he had just registered as a homeless person,” he said. “He had personal problems and homelessness was an issue”. Van Helsum turned up at Berlin’s town hall in September 2011 sporting a pageboy haircut and T-shirt, equipped with a rucksack, sleeping bag and two-man tent. His first words to officials were: “I am all alone in the world.”

He said that he had lost his memory and knew only that he was 17 and his first name was Ray. He told officials he had roamed the forests of central Europe with his father, “Ryan”, who had subsequently died. He claimed that he had buried “Ryan” under a pile of stones. Police tried but failed to find the body.

Van Helsum’s real name was finally revealed when officials put his photograph online last year on what they assumed was his 18th birthday. A friend identified him almost instantly as 20-year-old van Helsum from the town of Hengelo in the Netherlands.

Van Helsum later revealed that he had amassed more than €8,000 in rent arrears in Hengelo and that his failure to pay up had landed him in a hostel for the homeless. At the same time, he said, he discovered that his ex-girlfriend had become pregnant. “I decided I had to go,” he said.

Buying a one-way train ticket with the last of his savings, van Helsum travelled to Berlin with a friend. After three days he appeared on the doorstep of Berlin’s town hall and told officials his concocted story.

“I knew that if I didn’t, they would send me back to Hengelo,” van Helsum said.

http://www.independent.co.uk/news/world/europe/dutchman-sentenced-for-forest-boy-hoax-on-german-authorities-8842338.html

ribshaw

09-28-2013, 12:06 PM

The asking price for the maple dining room set was $175 on Craigslist. But the Florida “resident” sent a check for $1,700 to cover shipping, handling and “trouble,” explaining that the balance could simply be mailed back.

Elizabeth Hill, an 82-year-old Grove City resident and seller of the dining-room set, initially was suspicious.

“I’m hard to scam. I’m very cautious,” said Hill. “I’m a spry old lady.”

But through a series of 32 emails this month, the buyer, who claimed to be hearing-impaired, wore her down, asking such questions as, “Are you a real person?”

“Like they’re checking on me,” Hill said. “Really, they’re clever. They sounded legitimate.”

At one point, Hill had decided to cancel the transaction.

“I thought something was kind of fishy,” she said.

But a follow-up email from the buyer persuaded her to go ahead with the deal, which included having someone picking up the set locally.

The check bounced on Wednesday, Hill learned. Her Western Union money transfer for more than $1,400 — the equivalent of cash — is gone.

The Ohio attorney general’s office has fielded at least 75 similar “overpayment” complaints related to Craigslist since December 2010.

“You’re sending good money in response to counterfeit money,” said spokeswoman Kate Hanson, who works with consumer fraud.

Hill said she was warned, too late, by another Craigslist user that crooks often go after people selling antiques because sellers often are older and can be more open to alternative-payment methods.

“I was devastated,” Hill said. “It shocked me that I had fallen for such a stupid thing.”

She thought she was done with the scam until Thursday, when a second check for $1,700 arrived.

This time she was ready, opening the FedEx package with a rubber glove, not wanting to spoil fingerprints.

“I’d like to get my hands on this person,” said Hill, who retired 20 years ago from a job at Disneyland in California.

Grove City Police Detective Jeff VanBuskirk will meet with Hill but isn’t optimistic. Scammers, he said, use untraceable emails, often operating from public libraries, Wi-Fi hot spots or foreign countries.

Hill’s grandson, Bill Hawk, 42, also feels duped.

“I guess we tried to rationalize what he was doing,” he said of the scammer. “That was our downfall.”

Hill said her own honesty might be to blame.

“I think if I had been dishonest I would have picked up on it being a scam quicker,” she said. “Honest old ladies are sympathetic.”

http://www.dispatch.com/content/stories/local/2013/09/28/grove-city-senior-hit-by-bouncing-check-scam.html

ribshaw

10-03-2013, 10:27 AM

SCAMMER davidhartner6@gmail.com

Was asked about this too good to be true deal on a Lexus. 100% SCAM, and not even a new one. Almost every SCAM on Craigslist has to have a plausible explanation why the seller is looking to move property fast and cheap. Someone I was reading last night pointed out that if you really want to sell a car fast you can go to just about any auto dealer and make a quick deal. Keeping in mind in this case, the car is priced well. Generally, people who are selling a car themselves are looking for more money than a dealership will give, not a fast deal.

I want to sell it because I'm working on an oil field in Arab Emirates, I have an contract for 2 years here. BS STATEMENT

Just a google search of this alone yields a lot of times this phrase has been used in the past by scammers.

I had a serious buyer before and I lost about 2 weeks waiting for him but I just find out that his loan wasn't approved.

6065

And this is may be the biggest tell, but Google Wallet appears to be used ONLY by merchants and not in person to person transactions.

I'm currently signed up for a protection program offered by Google Wallet and I would like to close the deal through them.

6066

Hello ,
Sorry for my late response, I just started to check my email and I wanted to let you know that the Lexus is still available for sale. I'm willing to sell it for $21,500. It's a 2007 Lexus LS460. It has only 55,665 miles. It is fully loaded with HDD Navigation,Keyless Go, Front Climate Seats, Dual power memory seats, Rear View Camera, Nav traffic, Satellite Radio, Bluetooth, Park distance control, Soft Close Doors, Rear power sunshade, Auto dim mirrors, Glass sun/moonroo, Xenon headlights, garage door opener, Lexus Premium sound, Steering wheel controls, power trunk lid,
Dual Zone climate ctrl, Rear Vanity mirrors and much-much more. It's a non smoker car, garage kept, the interior it's almost like new, very well maintained, the paint still shine. Please let me know if you are interested about my car and I'll be more than happy to provide you more details about it.
All the best !
Dave Hartner

================================================== =======

Hello Sir,
This Lexus is in excellent Condition! No scratches or dents. The engine runs like a top. Clean history. Never been wrecked or involved in any kind of accident. It runs and drives very good, needs nothing! Non-smoker car. All scheduled maintenance performed, all service records available. I am the only owner. It comes with a clear and clean title in hand, bill of sale signed by me and notarized and all the paper work. I want to sell it because I'm working on an oil field in Arab Emirates, I have an contract for 2 years here.
I had a serious buyer before and I lost about 2 weeks waiting for him but I just find out that his loan wasn't approved.
I'm currently signed up for a protection program offered by Google Wallet and I would like to close the deal through them. If you are not aware of this program you should know that it will allow you to test drive and inspect the car before paying me. In this way you're not buying something sight unseen. You will have a 5-day inspection period to decide whether you want to keep the car or not.
If we reach an agreement, I'm willing to take care of the shipping because the fee was already paid by me for the other buyer I told you about. The shipping company will not refund me in full but offered to ship the car anywhere within continental US, so it is at their warehouse and it's ready to be shipped anytime. It will be a big advantage for you if you decide to move the car to your location.
Please let me know if you have the funds available. Looking forward for your reply if you are interested in the car and I will send you more details about the deal or car as well. Also I attached you one pictures, if you want to see more just let me know and I'll be more than happy to provide you.
All the best !
Dave

================================================== =======

Google Wallet vehicle purchase scam

You find a cheap car online, and the seller claims that for your protection the purchase will be completed via Google Wallet. The car price is "too good to be true" and the seller claims a need to sell the car quickly because he or she is moving, moving out of the country, being called for military service, getting a divorce, etc. The reality is that there is no car, and you won’t be using Google Wallet. Instead, the seller will send you an invoice that appears to be from Google Wallet, but will instruct you to make the payment via Western Union, Moneygram or bank transfer.

A legitimate Google Wallet transaction will require that you sign in to your Google Account and execute the payment using the Google Wallet interface. Google Wallet does not accept wire transfers/bank transfers or payments via Western Union/Money Gram, nor does it use any escrow type of payment.
Google Wallet used to be called Google Checkout, and some scammers still use the Checkout logo and trademarks in their emails and other communications.

Avoid and report Google scams - Google Help (http://support.google.com/bin/answer.py?hl=en&answer=2952493)

ribshaw

10-03-2013, 11:15 AM

The IRS and government agencies do not conduct any official business via email.

6067

Latest Information - Internet Scams - Email Hoaxes - True Stories (http://www.hoax-slayer.com/latest-information.html)

ribshaw

10-04-2013, 08:32 AM

6069

As con men go this guy is somewhat of a peach, he did remodel the homes. One thing that occurs to me in just about every area you can look up the property records online which would show both ownership and tax records. Not a bad way to suss out the true owner of a property.

A New Jersey man scammed families out of thousands of dollars by advertising homes for rent that were actually foreclosed, prosecutors say.

Barton K. Hodge, 37, pretended to be the owner of two foreclosed homes in Roselle, and advertised them to potential tenants as renovated properties, according to Union County prosecutors.

One of the victims, Giselle Bond, told NBC 4 New York she found the listing on Craigslist, where the monthly rental was posted for $1,600 a month. She said Hodge had actually renovated the place, putting in new carpeting, paint and appliances.

Then he had her sign what appeared to be a valid, notarized lease and took a $2,500 deposit.

"He took all the money," she said. "I was paying him rent every month. He took everything."

Prosecutors say Hodge collected more than $15,000 in rent and security deposit from two families over the course of six months. The actual owners of the homes on East Second Avenue and West Fifth Avenue had no idea what was going on.

Bond suspected something was wrong when an overdue gas bill came to the house in the name of the previous owner, and Hodge was suddenly not available to explain it. So she did some homework.

"I went to the city and I pulled records on the house," she said. "I got who is the owner of the house, and the house is a foreclosure house."

After an investigation, Hodge was arrested Tuesday afternoon moments after collecting rent from one of his tenants. He's charged with two counts of third-degree theft by deception and is being held on $50,000 bail.

Attorney information for Hodge wasn't immediately available.

"He has me and my family homeless," said Bond. "I'm practically homeless. I have nowhere to go."

Looking back, Bond says there were some warning signs: Hodge never asked for a credit check or proof of employment. She considers it a lesson learned, but nevertheless feels betrayed.

"He portrayed himself as being a landlord, and he absolutely had nothing," she said. "He's a con artist."

The bank is giving Bond and her two daughters time to find a new home and police will try to get some of the money back to the victims.

NJ Man Poses as Owner of Foreclosed Homes, Bilks Tenants Out of $15,000: DA | NBC New York (http://www.nbcnewyork.com/news/local/New-Jersey-Foreclosed-Home-Scam-Bilks-Tenants-Thousands-226231731.html)

ribshaw

10-04-2013, 08:39 AM

I feel bad for these folks as they were not being greedy, but scumbags don't necessarily care they just want your money in their pocket.

Ex-lawyer gets prison for South African Ponzi scheme
Posted to: Business Crime News Suffolk

By Tim McGlone
The Virginian-Pilot
© October 3, 2013

NORFOLK

Brian Ray Dinning, a former tax attorney who admitted running a Ponzi scheme involving gold, diamonds and real estate ventures in South Africa, was sentenced Wednesday to 12½ years in federal prison.

“We are pleased to see justice done today,” said Dan Murrill, who with his wife, Debra, lost their life savings – more than $220,000 – to Dinning with the belief he was setting up a charity for them in Africa.

Dinning, 48, formerly of Suffolk, admitted taking more than $2 million from investors who believed they would be making money off South African real estate and gold and diamond mines while contributing to the protection of wildlife and building churches in poorer areas of that country.

Instead, from 2008 to 2012, he used most of the money for his own benefit, including private school tuition for his children, $10,000-a-month alimony payments and a mortgage on a large Suffolk home.

He also admitted to a separate loan fraud scheme involving $868,000 he borrowed from Village Bank of Midlothian for the Suffolk house and a car. He lied about his finances to get the mortgage and then defaulted on it and gave away the car after he stopped making payments on it. The bank lost more than $200,000 as a result.

U.S. District Judge Raymond A. Jackson sentenced Dinning to more than five years above recommended guidelines and more than what prosecutors had asked for.

The judge cited the fact that Dinning fled to Canada when he learned he was under investigation and then maligned some of his victims with Internet blog postings.

The judge said the “innocent, unsuspecting victims” have “no doubt lost their trust in mankind.”

Dinning apologized before the judge.

“Words cannot adequately express my apologies and my remorse,” he said. “I was wrong, and I take full responsibility.”

He added that in the year he has been in jail, he has lost 40 pounds, his hair and a tooth.

“Those physical things don’t mean nearly as much as the losses I caused all those people,” he said.

The judge was clearly moved by the testimony of Murrill and his wife, who are from western Pennsylvania, and two other victims of Dinning’s scheme.

Dan Murrill said they lost their entire retirement savings, but worse was losing their lifelong retirement dream of doing missionary work in Africa.

“This was our dream come true. This is what we waited our whole lives for,” he said, choking back tears. “This has devastated us spiritually and financially.”

The couple paid Dinning for legal guidance to set up what they intended to be a charity to help orphans in the African country of Malawi. The couple sued Dinning in Norfolk Circuit Court and won a $722,000 judgment for the loss and pain and suffering.

But the judge made it clear that Dinning will likely never be able to pay back much of the $2.3 million in restitution.

Chesapeake resident Mario Blanco, another victim, told the judge about the promises Dinning made to build a church in South Africa in the name of his 16-year-old daughter, who died unexpectedly. He also invested in Dinning’s real estate venture.

Blanco said he made five trips to South Africa looking at the investment property and the hill where the church would be built.

After he saw children kicking a plastic ball, he delivered 100 soccer balls on his next trip.

And when he saw one child kick a ball, “I saw my daughter’s eyes in him,” he told the judge.

“My heart was over there,” he said.

Dinning’s investment plan was legitimate at first.

He started raising money in 2005 for the project, called Hole in the Wall. He planned to build vacation homes fronting the Indian Ocean on lands owned by the government and local tribes and then offer long-term leases for the properties. He also offered investments in gold and diamond mines, in another location.

His brother, Stephen Dinning, testified at the hearing that $600,000 had been spent on infrastructure at the oceanside property. He was living there at the time, working with the South African government and contractors on the project.

But on questioning by Assistant U.S. Attorney Stephen Haynie, the brother admitted taking some of that money as salary. He just couldn’t say how much.

Brian Dinning’s lawyer argued that a 2½-year sentence with an additional six months of home confinement would be sufficient.

But the judge quickly shot that down.

“You were involved in a massive scheme to defraud,” Jackson said. “The court believes it was just pure greed that drove you to commit these offenses.”

For Blanco, it was a day he had waited years for.

“A dog got what it deserved,” he said afterward.

Ex-lawyer gets prison for South African Ponzi scheme | HamptonRoads.com | PilotOnline.com (http://hamptonroads.com/2013/10/exlawyer-gets-prison-south-african-ponzi-scheme)

ribshaw

10-04-2013, 09:06 AM

A man who thought he'd secured his dream job abroad was left shattered to discover it was all a scam – which cost him €4,000.

Damien Glynn (32), from Oranmore in Co Galway, is warning others to beware after he discovered he had been the victim of a sophisticated fraud.

He had forked out €4,000, given up his job in Ireland and travelled over to Scotland to start his new post on an oil rig when he realised it was a con.

The scam uses information from established companies to offer jobs before conning their victims out of thousands.

It involves fake certificates from the Metropolitan Police, the UK Border Agency, a reputable gas and oil company, and an insurance firm and has already hit dozens of unsuspecting workers.

Mr Glynn, an engineer, had recently retrained to work on offshore rigs for the oil and gas industry when he was targeted. He was offered a post following an in-depth online interview and made arrangements to move to Aberdeen.

In order to secure the post, Mr Glynn was told he had to deal with an "immigration lawyer" to obtain the necessary work documents and an insurance company to receive travel insurance cover.

"I had googled the company and all the details stacked up, right down to the managing director's details," he said.

"The interview questionnaire was very detailed and very much linked to the work I'd be doing. It took four hours to fill out. After they got back to me with an offer, there was a lot of back and forth – up to 50 emails sorting things out.

PERMIT

"I didn't understand why I needed the work permit but it was offshore work so I just went with it. I guess I just wanted to believe it too much."

After forking out £960 for insurance and £815 for a work permit, which came to €2,300, Damien made arrangements to travel to Scotland to take up the post. But he then had to fork out twice for flights after the scam artists cancelled the first meeting at the last minute.

"I left my job in Galway and was arranging to meet with the company director in Scotland. He put me off for a week saying he was away, but I know now the money hadn't gone through at that stage. I booked new flights but once they had the money I couldn't reach them.

Worker conned out of (http://www.independent.ie/irish-news/worker-conned-out-of-4000-in-oil-rig-job-scam-29630565.html)

ribshaw

10-04-2013, 09:19 AM

The Department of Justice has filed felony charges against an East Bay man and his son, in what could turn out to be the largest securities fraud case in California history. At stake is more than $700 million from about 2,800 investors, many of them in the Bay Area.

The ABC7 News I-Team's Dan Noyes first broke the story more than two years ago; he also reported then that the FBI and Securities and Exchange Commission were investigating Walter and Kelly Ng, and finally, the criminal case is moving forward. So many people have lost their life savings.

Walter Ng had no answer in September 2011 when Dan asked him, "Mr. Ng, what do you say to investors who've lost all that money?"

Over the past 35 years, Walter Ng and his son, Kelly, ran a series of limited partnerships -- among them, RE Loans, Bar-K, Inc., and B-4 partners -- that made loans to real estate developers.

The charging document, "the United States of America versus Walter Ng and Kelly Ng," says they, in effect, looted the funds by making repeated cash withdrawals. The Ng's are charged with "structuring transactions for the purpose of evading a reporting requirement;" 11 counts for Walter, 20 for Kelly. Each count carries a possible 10 years in prison and a $500,000 fine.

Investor Dr. Bernard Wittenberg tells the I-Team, "It's been a hell of a long delay."

The 81-year-old is typical of the Ng investors -- he met them through friends and eventually lost more than $400,000. He's had to delay his retirement. He's relieved the Ngs have finally been charged.

"I felt happy at last," Wittenberg said. "I'll be happier when they're sitting in jail and happier yet if they're able to extract anything, but I think we may have lost every penny."

The Ngs also face a civil case from the SEC, accusing them of lying to investors about the health of their funds and "secretly using the assets of a new real estate fund to rescue an older, rapidly collapsing fund."

And attorney Richard Brown is leading a class action lawsuit; he thinks the Ngs and others involved in the funds may face additional charges.

"I think there will be more criminal charges to come," Brown said. "I think during this period when the Ngs were skimming the money, the people who were supposed to be watching over them, their lawyers, accountants and bankers were not doing their jobs."

The Ngs are set for arraignment in one month; Dan Noyes will be there to cover it. Walter Ng's attorney declined to comment Thursday, and Kelly Ng's lawyer did not call back. Now that they are charged, an IRS rule from the Bernie Madoff case comes into play -- investors may be able to deduct up to 95 percent of their losses.

I-Team Exclusive: Charges in massive investment fraud case against Walter Ng | abc7news.com (http://abclocal.go.com/kgo/story?section=news/iteam&id=9273730)

ribshaw

10-04-2013, 09:25 AM

MILWAUKEE (WITI) — Think about the people you trust the most: your spouse, your doctor, your mother. Would you put your pastor or priest on that list? One man did, and ended up getting scammed.

“I entrusted an individual based on who he was, and I should never have done that,” an anonymous fraud victim says.

That individual was a minister, who led the man to believe he knew of an investment that was a sure thing.

“It was very disappointing and hurtful too. I pulled some of my family into this and some extended family members,” the fraud victim says.

Postal inspectors say the scheme started in 2008, when a group of individuals posing as an investment company claimed…

“They were mining gold, oil and other metals of that sort. The stock shares started at $100,” U.S. Postal Inspector Dennis Cunningham said.

The truth was, it was all a scam!

“They indicated that they had mines in Africa, that they were mining gold, silver, diamonds and they didn`t really have access to any of those mines,” Cunningham said.

The bogus investment group initially held seminars in libraries, and then started talking to church groups.

“They got a lot of ministers involved — openly recruiting. In fact, several ministers entered guilty pleas for conspiracy in the case,” Cunningham said.

In all, there were 2,000 victims and more than $7 million in losses.

One of those ministers helped rope the victim and family members into investing thousands.

“I know now even with men of God – you still have to be mindful and investigate whatever you`re investing in – do a thorough investigation,” the fraud victim says.

“Research that company. Check BBB in that state. Check to see if there are any complaints filed against them,” Cunningham said.

In fact, postal inspectors say a call to state officials could have been beneficial.

“The secretary of state had an open investigation in this case,” the fraud victim says.

All investments take a risk. FOX6′s Contact 6 advises taking the time to thoroughly research the company or people who want you to invest.

Man gets scammed after agreeing to minister’s investment scheme | FOX6Now.com (http://fox6now.com/2013/09/30/man-gets-scammed-after-agreeing-to-ministers-investment-scheme/)

ribshaw

10-04-2013, 09:38 AM

There are quite a few bank phishing scams going on right now.

Coast360 Federal Credit Union has recently received reports of a suspected phishing scam, according to a press release.

The credit union confirmed an email with the subject “Online Banking Security Alert” was a phishing scam and warns members and residents to receive the email to ignore and delete it.

Phishing is the attempt to defraud an online account holder of financial information by posing as a legitimate company.

The email purporting to be from Coast360 is from a fraudulent source and considered highly sophisticated, according to the press release.

“The message claims that a billing error has been detected and requests for the customer to log on using a provided link to update account information,” the release stated. “In the email, the perpetrators mask their fraudulent website link with the credit union’s website URL. The link opens a fraudulent site that looks very similar to Coast360’s online banking page.”

Coast360 advises that if a person has opened the link in the email or entered information into the fraudulent website, call the credit union immediately.

Coast 360 offers these tips for safeguarding your information:

--Coast360 will never call, email, or otherwise contact you and ask for your username, password or other online banking credentials.

--Coast360 will never contact you to ask for your credit or debit card number, PIN or 4-digit security code.

UPDATE: Coast360 warns members and residents about a recent phising scam | Pacific Daily News | guampdn.com (http://www.guampdn.com/article/20131004/NEWS01/131004006/UPDATE-Coast360-warns-members-residents-about-recent-phising-scam-)

ribshaw

10-07-2013, 03:41 PM

Business owners, watch out! Scammers are invoicing companies for online ads they never placed and using the Yellow Pages name to lend them credibility.

Sample scam invoice (From ripoffreport.com)
How the Scam Works:

You are at work. You receive a call from someone representing a website, which they claim is an online version of the Yellow Pages. The caller says he is updating the directory and asks you some basic information, such as your office's address, telephone number and email. After you answer, the representative repeats the information back to you, and you confirm the listing.

A few weeks later, your office receives an invoice for several hundred dollars for an ad from the Yellow Pages online directory. But you never agreed to that!

When you call to complain, the representative says that you verbally confirmed the placement. He or she even plays back a spliced version of your previous conversation. The altered recording makes it sound like you were agreeing to place an ad, when you were really saying "yes" to the listing information.

How to Protect Yourself Against This Scam:

Hang up. Don't confirm information from unknown callers. This just gives the scammers something to use against you.
Remember, the Yellow Pages name and logo is not trademarked. Scammers are able to use the name and "walking fingers" icon to lend credibility to their scam. They are not affiliated with the famous phone directory.
Don't trust Caller ID. Scammers have technology that lets them display any number or organization name on your screen.
File a complaint with the BBB. BBB has resolved hundreds of complaints against business have been accused of this scam. Go to bbb.org to file a complaint.

For More Information

For more information about this scam and an interview with the CEO of the BBB Serving Greater Washington D.C. check out this news story.

To find out more about scams, check out the BBB Scam Stopper.

ribshaw

10-07-2013, 03:55 PM

It's almost over.

It's ending with a whimper, not a bang. One by one, the last of the cold-calling retail brokerage firms are fading away. The game that Jordan Belfort invented twenty years ago had managed to adapt since Stratton Oakmont's shuttering, but even adaptation has it's limits. These firms are going away.

Starting a cold-calling brokerage firm used to be easy - all you needed was the Lehman telemarketing script, a b-d license and a room full of testosterone-poisoned young men from Long Island or the outer boroughs of New York City that you could manipulate into thinking that they had any ability to make "clients" money. The hard part was keeping the shop open once the arbitration awards and investigations began piling up.

Given the horrifically conflicted business model and abominable standard of care, I'm actually surprised any of these firms have lasted even this long. But there are still a few alive and kicking, and those brokers who are still playing continue to find each other in these last refuges. They all know each other from in and around "the business." They can trace their lineages back to the same "senior brokers" for whom they once cold-called or "popped new accounts."

The few brokers who haven't racked up too many regulatory disclosures are somehow able to keep finding midwesterners or southerners who still answer a landline telephone and are too polite to hang up. Somehow, these brokers are still persuading people to send them money to churn.

But it's getting harder. The Internet has made it so everything being said during a stock pitch can be verified in seconds. The cost of trading is now zero, which makes it difficult to justify 3% commissions and outrageous "handling" fees on trade confirmations. And besides, people just don't pick up the phone anymore. Hard to "pound" a prospect or "take him to the mat" over text or email. Telemarketing of stocks requires the kind of emotional give-and-take that requires a phone conversation - and who has time for that these days?"

The Wall Street Journal just did a massive analysis of all the broker-dealers that have been shutdown over the last seven years using publicly-available disciplinary records. The reporters were able to quantify this diaspora of brokers leaving and then finding each other again as the industry spread and then shrank back down. It's truly fascinating...

The Journal's analysis reveals some of the nationwide migratory patterns of brokers associated with firms having troubled regulatory records. These brokers often remain in the industry after working at firms expelled by regulators, in some cases after the brokers accrued numerous arbitration claims or declared multiple bankruptcies.

To identify firms Finra has expelled, the Journal reviewed 105 monthly disciplinary reports the regulator published since 2005. Through the end of 2012, it said it had expelled 173 firms for problems ranging from a firm's failure to pay regulatory fines to fraud involving individual brokers.

At least 5,054 brokers who worked at these defunct firms were still licensed to sell securities earlier this year, the Journal analysis shows. Of those, 610 had worked at more than one firm Finra had expelled.

"Migratory patterns" is a polite way of putting it. I'd phrase it differently. I'd call it the Last Stand. They're on the run now with very little reason for the business itself to even exist. The last bastions of brokering, even if they could hire whoever's left, will be under more scrutiny than ever before and will likely not be able to withstand it.

Susan Axelrod, Finra's executive vice president of regulatory operations, told the Wall Street Journal that "We are watching broker migration with a laser focus." When your business, at it's most basic, is harmful to your customers and practically guarantees their eventual dissatisfaction, a "laser focus" is the very last thing you need.

Source:

More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities (Wall Street Journal)

Read more: Boiler Room Diaspora | The Reformed Broker (http://www.thereformedbroker.com/2013/10/05/boiler-room-diaspora/#ixzz2h4Vzvrli)

ribshaw

10-07-2013, 05:28 PM

This presents an interesting legal discussion at the supreme court level. From a scam standpoint, unless you are super wealthy and I mean super, then hearing offshore investment means scam or the IRS going to hunt you down. While their are some exceptions to this, not too many and certainly none if you are hearing about it on the web or at the local hotel.

High court hears tale of Stanford's Ponzi scam
Richard Wolf, USA TODAY 4:13 p.m. EDT October 7, 2013
Issue: Can third parties be sued for Texas tycoon's $7 billion fraud?
STANFORD CHEATERS

Defrauded investors have sued insurers, law firms, others
Congressional law passed in 1998 precludes most class actions

WASHINGTON — Investors who lost their life savings in convicted Texas financier R. Allen Stanford's $7 billion Ponzi scheme got their day in court Monday on the first day of the Supreme Court's 2013 term, but it was unclear whether their plea will pay dividends.

Unable to recover their investments from Stanford or his fraudulent entities, including a bank based in Antigua, the plaintiffs filed class-action lawsuits in state and federal courts in Texas and Louisiana. But a law passed by Congress in 1998 was intended to preclude such lawsuits and assert federal jurisdiction.

Faced with conflicting lower court rulings, the Supreme Court must decide whether to side with the defrauded investors or the financial institutions, law firms and insurance companies accused of aiding Stanford's scheme. The federal government, seeking to protect the Securities and Exchange Commission's regulatory authority over security fraud claims, is siding with the defendants.

Ironically, the case may hinge on whether the fraud involved "covered securities," which Stanford claimed were standing behind his clients' bogus certificates of deposit. Although that puts the concept of covered securities at the center of the dispute, they were never purchased — a fact that concerned Associate Justice Antonin Scalia, among others.

"It can't be in connection with a purchase or sale that has never occurred," Scalia said.

The court's liberal wing appeared to be sympathetic to the hapless investors, while more conservative justices seemed inclined to side with the defendants and the federal government. That could leave Scalia's literal approach to the law holding the balance of power.

About 25,000 investors were fleeced by Stanford over 15 years before his arrest in 2009 and subsequent conviction in 2012. He is serving a 110-year federal prison sentence in Florida.

High court hears tale of Stanford's Ponzi scam (http://www.usatoday.com/story/news/politics/2013/10/07/supreme-court-stanford-ponzi-congress-investment/2937827/)

ribshaw

10-10-2013, 09:23 AM

This is a great read for investors of all stripes. Futures trading of all stripes has a checkered past, with very few doing it well. Of course it is often used by ponzi scammers in an effort to explain super returns, not a day goes by that I don't get several emails promising me the moon and stars. But there is another side of the investment community that is legitimate, but packed with excessive fees that will rob you of returns.

The pitch was enticing. At a time when the Standard & Poor’s 500 Index had suffered a decline of 41 percent in the previous three years, Morgan Stanley (MS) was offering its clients the possibility of some relief.
Ken Steben, a CTA who markets futures funds, says the industry can confuse financial advisers.

Keith Campbell started a fund with fees that consumed 93 percent of all gains in the past decade.

In a prospectus, the New York securities firm invited its customers to put their money into a little-known area of alternative investing called managed futures.

“If you’ve never diversified your portfolio beyond stocks and bonds, you should know about the powerful argument for managed futures,” the bank wrote. “Managed futures may potentially profit at times when traditional markets are experiencing losses.”

Morgan Stanley presented a chart telling investors that over 23 years, people who put 10 percent of their assets in managed futures outperformed those whose investments were limited to a combination of stocks and bonds, Bloomberg Markets magazine will report in its November issue.

Clients jumped in. During the decade ended in 2012, more than 30,000 investors entrusted Morgan Stanley with $797 million in a managed-futures fund called Morgan Stanley Smith Barney Spectrum Technical LP. The fund already had $341.6 million invested during the previous eight years.

Top fund managers speculated with that cash in a wide range of asset classes. In that period, the fund made $490.3 million in trading gains and money-market interest income.
No Gain

Investors who kept their money in Spectrum Technical for that decade, however, reaped none of those returns -- not one penny. Every bit of those profits -- and more -- was consumed by $498.7 million in commissions, expenses and fees paid to fund managers and Morgan Stanley.

After all of that was deducted, investors ended up losing $8.3 million over 10 years. Had those Morgan Stanley investors placed their money instead in a low-fee index mutual fund, such as Vanguard Group Inc.’s 500 Index Fund, they would have reaped a net cumulative return of 96 percent in the same period.

The “powerful argument” for managed futures turned out to be good for brokers and fund managers but not so good for investors.

In the $337 billion managed-futures market, return-robbing fees like those are common. According to data filed with the U.S. Securities and Exchange Commission and compiled by Bloomberg, 89 percent of the $11.51 billion of gains in 63 managed-futures funds went to fees, commissions and expenses during the decade from Jan. 1, 2003, to Dec. 31, 2012.

Fees: $1.5 Billion

The funds held $13.65 billion of investor money at the end of last year, according to SEC filings. Twenty-nine of those funds left investors with losses.

The $8.3 million loss in Morgan Stanley’s Spectrum Technical fund over a decade pales in comparison to an aggregate deficit of $1 billion in 29 Morgan Stanley and Citigroup Inc. (C) managed-futures funds in the four years ended on Dec. 31, the filings show. Those funds charged investors a total of $1.5 billion in fees.

Morgan Stanley and Citigroup merged their funds’ management in 2009; Morgan Stanley bought out Citi’s share in June.

“The big news here is, the fees are so outlandish, they can actually wipe out all the profits,” says Bart Chilton, one of five members of the Commodity Futures Trading Commission. Even though the CFTC oversees managed futures, Chilton says he hadn’t been aware of the effects of the high costs for investors.

“We absolutely need to do a better job of letting consumers know in plain English what’s going on,” he says. “Those numbers tell a story. It’s astounding.”
Little Noticed

The impact of high fees on investors has escaped the notice not only of regulators, but also some industry executives.

The Morgan Stanley Spectrum Technical fund was opened in 1994 under the leadership of then-Chief Executive Officer Philip Purcell.

He was succeeded in 2005 by John Mack, who had spent most of his career at Morgan Stanley. James Gorman, who replaced Mack in 2009, joined Morgan Stanley from Merrill Lynch & Co. in 2006.

The prospectus pitching the Spectrum fund, issued in March 2003, said the firm would accept investments as low as $2,000 for individual retirement accounts.

Morgan Stanley’s chief investment strategist, David Darst, who has written a book on managed futures, declined to comment on his firm’s fees. Bank spokeswoman Christine Jockle also declined to comment on the funds referred to in this story.
‘Historically High’

“Fees associated with managed-futures funds across the industry have been historically high,” Jockle says.

Brokers have an incentive to keep clients in managed-futures funds because they receive commissions annually of up to 4 percent of assets invested, prospectuses show. Investors pay as much as 9 percent in total fees each year, including charges by general partners and fund managers.

People put money into managed futures because their brokers recommend them, says Thomas Schneeweis, a finance professor at the University of Massachusetts Amherst who was a futures-fund manager from 2004 to 2010.

“Everything is marketing,” he says. “Getting out there and pushing it. These things are sold, not bought.”

Broker pitches that don’t clearly tell investors about the drastic effect of fees should be considered fraudulent, says James Cox, a securities law professor at Duke University in Durham, North Carolina.
‘License to Steal’

“Otherwise, the pitch is a half-truth,” he says. The government is to blame for allowing these products to be offered with inadequate disclosure, Cox says. “I would call it a license to steal,” he says.

Because the managed-futures market is opaque and poorly understood, otherwise sophisticated investors often don’t realize how pervasive the profit-eating fees are. The firms marketing the funds are at times also left in the dark. The industry refers to the computers programmed with trading algorithms as black boxes.

Some banks say they can’t see into the boxes of the traders they hired.

“Particularly given the black box character of many managed-futures strategies, it is virtually impossible for the manager to detect strategy changes,” Bank of America Corp. (BAC)’s Merrill Lynch says in an August 2010 SEC registration for its Systematic Momentum FuturesAccess LLC.

The 7,752 investors in that fund faced losses of $135.3 million, after fees, from 2009 to 2012, according to data from Merrill’s SEC filings. Merrill spokesman Bill Haldin declined to comment.
Side Bets

High fees and black boxes are just part of the story. Some funds also allow their managers to make undisclosed side bets by trading ahead of or opposite to the fund’s trades.

Chicago-based Grant Park Futures Fund LP, which is marketed by Zurich-based UBS AG (UBSN), says on page 90 of a 180-page, April 2013 prospectus that David Kavanagh, president of the $660.9 million fund’s general partner, may place such personal trades.

“Mr. Kavanagh may even be the other party to a trade entered into by Grant Park,” it says.

The Grant Park Futures Fund reported a net investor loss of $68.6 million during the decade ended on Dec. 31, after fees and commissions of $427.7 million. Kavanagh, president of Dearborn Capital Management LLC, which manages Grant Park, didn’t respond to requests for comment.
Misleading Numbers

When financial advisers promote managed-futures funds, they often rely on charts produced by a small company in Fairfield, Iowa, called BarclayHedge Ltd. The firm, which has no connection to London-based Barclays Plc (BARC), reports a 29-fold gain through 2012 for managed futures overall since 1980. Those numbers can mislead investors.

BarclayHedge doesn’t deduct billions of dollars of fees charged by funds. It uses only information volunteered by managed-futures traders. Traders can stop providing data if their system starts to lose money or collapses, says BarclayHedge President Sol Waksman.

The BarclayHedge data, even with its flaws, Waksman says, is the industry benchmark. Investors need to look at more than just his index, he says.

“They’ve got to accept some of the blame for going into something without any knowledge,” he says.

Managed-futures funds are a subset of hedge funds. They’re run by so-called commodity-trading advisers, or CTAs, who these days invest largely in financial futures. While hedge funds typically charge a 2 percent management fee and 20 percent of investor profits each year, a managed-futures fund often duns clients 7 to 9 percent of assets invested annually and 20 percent of any profits.
‘Ask Questions’

The National Futures Association, a self-regulatory group, doesn’t require managers to disclose the effects of fees on investor profits over time, says Mary McHenry, an associate director in the NFA’s compliance department.

“We can’t just give investors all the answers,” she says. “It’s important that they ask questions before they invest.”

While brokers commonly promote managed futures as protection against stock market declines, the language in prospectuses belies that notion. Managed futures are noncorrelated; that means their performance doesn’t track that of any other investments, either positively or negatively.

ribshaw

10-10-2013, 09:24 AM

“As a risk transfer activity, trading in commodity interests has no inherent correlation with any other investment,” Grant Park wrote in its February 2013 prospectus. In other words, managed futures behave like a knuckle ball in baseball.
‘Don’t Know’

Players know a knuckle ball isn’t a fastball or a curveball, but beyond that, they don’t know what it will do. A managed-futures fund isn’t a stock or a bond; it may sometimes behave like one -- and sometimes not.

McHenry says she knows that brokers pitch managed futures as protection from stock market declines -- and that fund risk disclosures say there’s no correlation. Asked how those contradictory statements add up, she says, “I don’t know how to answer that question.”

Like hedge funds, managed-futures funds haven’t been required to file with the SEC as a matter of course. However, an SEC rule has mandated that any partnership with more than 500 investors and $10 million in assets -- even a hedge fund -- must file quarterly and annual reports.

The SEC has no category listing managed-futures funds, as it does for mutual funds or corporate filings. Bloomberg Markets culled through thousands of filings in several categories, including one called “SIC 6221 Unknown,” to identify 63 managed-futures funds that reported to the SEC.
T-Bills

While each trading adviser has a different black box, there are similarities in how fund managers approach their jobs. Some of their investments are plain vanilla. They place money from investors into U.S. Treasury bills or other short-term debt. They then use about 15 percent of the funds to buy or sell futures contracts.

They can bet that prices will rise or fall on more than 150 different futures contracts, including those covering stock indexes, government bonds, currencies, interest rates, agricultural commodities, oil and metals.

Treasury bills turn out to be critical. Interest income from T-bills and other debt investments has effectively masked the high fees funds charge their investors. The 63 funds that reported to the SEC collected interest totaling $2.34 billion in the decade from 2003 to 2012.

Without those gains, the combined 10-year earnings of $1.3 billion after fees in the 63 funds would have been converted to a loss of more than $900 million. As interest rates have fallen to historic lows since 2008, managed-futures funds have suffered their largest declines ever.
More Risk

Fund managers amp up the risk in their investments by using leverage. They can buy futures contracts on margin, with down payments as low as 10 percent. A $100 investment in Morgan Stanley’s Spectrum Technical fund, for example, bought $1,000 worth of futures contracts, according to its 2003 prospectus.

By comparison, the New York Stock Exchange requires investors to maintain a minimum margin of 25 percent of the market value of a purchased security.

Even the managed-futures funds that file with the SEC don’t have any obligation to disclose how fees in recent years ate up all trading gains.

The Grant Park Futures Fund filed a prospectus in April to raise $927 million from investors. Although it included the boilerplate language saying substantial fees could offset trading profits, the document doesn’t say that the $25.6 million the fund had gained since 2009 was obliterated by fees. Investors suffered a $223.6 million loss over that period.
Advisers Confused

Ken Steben, who runs a fund, says managed futures can be confusing to both investors and advisers. His Futures Portfolio Fund, started in 1990, gathered $2 billion from more than 17,000 investors during the decade ended on Dec. 31. The fund has been marketed by 140 firms, including San Francisco-based Wells Fargo & Co. (WFC) and Minneapolis-based Ameriprise Financial Inc. (AMP)

It had gross returns of $619.5 million in that decade. Investors paid 86 percent of that amount in fees and commissions, leaving $84.3 million, for a 3.6 percent compounded annual growth rate.

“Most individual investors don’t understand what we’re doing,” says Steben, 58, sitting in the boardroom of his no-frills suburban Steben & Co. office in Rockville, Maryland, in April before the firm moved to Gaithersburg. “In many cases, the financial advisers don’t completely understand it.”
Individuals Pay

While pension funds, college endowments and other institutions invest in managed futures, individuals bear the brunt of the fees.

Institutions that invested at least $1 million with London-based Winton Capital Management Ltd., one of the world’s biggest CTA firms, received a net total of 11.9 percent from 2009 through 2012, the company reports. Winton charges those investors a 1 percent management fee and 20 percent of profits.

Individuals who invested in the Altegris Winton Futures Fund were less fortunate. Altegris Investments Inc., an alternative investment firm in La Jolla, California, allows clients to come in with as little as $10,000. Altegris collects additional annual fees totaling up to 4 percent, according to SEC filings.

Because of that, some of Altegris’s Winton investors lost 10.1 percent in the same period institutional investors had gains, SEC filings show.

Altegris Executive Vice President Richard Pfister asks, “Are any of these managed-futures funds worth it anymore at these fee levels? Do they make sense?”
1990s Success

One of the biggest and oldest futures managers, Baltimore-based Campbell & Co., did well for investors in the 1990s and early 2000s. Its flagship Strategic Allocation Fund provided a 10.5 percent compounded annual rate of return to investors in its first decade of trading through Dec. 31, 2003.

What followed wasn’t as good. From 2003 to 2012, more than 15,000 investors put a total of $4.5 billion into the fund. Clients were recruited by Merrill Lynch, UBS and other firms. The Strategic Allocation Fund earned $2.43 billion, according to SEC filings.

Those returns shrank to $158.8 million after investors paid fees and expenses of $2.27 billion, equaling 93 percent of the gains. The result was a 0.6 percent compounded annual rate of return for the decade. That compares with 7.1 percent, including dividends, for the S&P 500 during the same period. Campbell closed the fund to new investors in 2008.
‘Outdated, Inaccurate’

Like most managed-futures funds, Campbell develops algorithms for its black box. Those systems are flawed, Campbell tells investors in annual reports.

“A previously highly successful model often becomes outdated and inaccurate, sometimes without Campbell & Co. recognizing that fact before substantial losses are incurred,” the firm wrote. Keith Campbell, founder and chairman of the firm, declined to comment.

The knuckle ball nature of managed futures can flummox even the professionals. Gerald Corcoran, CEO of Chicago-based R.J. O’Brien & Associates LLC, the largest independent futures broker in the U.S., says he recently lost money investing in managed futures. Corcoran, 58, is a director of the Futures Industry Association.

His $25 million RJO Global Trust managed-futures partnership, pitched to retail investors with as little as $5,000 to invest, fell 35 percent during the four years ended on Dec. 31 after gaining 41 percent in 2008. It charges up to 7.25 percent in annual fees.
‘No Question’

“You’re going to lose money in managed futures over the course of a period of time. There’s no question,” Corcoran says. “I mean, I’ve just experienced it myself.”

“I actually would not even encourage most retail investors to be in managed futures,” Corcoran continues. “It’s on the riskier end of the investment spectrum.” He says managed futures serve wealthy investors. “They’re an important part of a diversification of a sophisticated portfolio,” he says.

Keith Stafford, an accountant who specializes in auditing hedge-fund and managed-futures data, says he and his colleagues are constantly amazed by the poor performance of managed futures for individual investors.

“We look at each other all the time and say, ‘Why would anyone invest in this?’” says Stafford, the member in charge of performance analysis at Arthur Bell, Certified Public Accountants, based in Hunt Valley, Maryland. “It’s a racket.”
The CFTC

While managed-futures funds are relatively new, official trading of futures in the U.S. dates back to 1848 at the Chicago Board of Trade -- which became regulated by the U.S. Department of Agriculture in 1922. The CFTC, formed by an act of Congress in 1974, took on oversight in 1975.

Morgan Stanley was the first firm to allow individual investors to buy into managed-futures partnerships, starting in 1979. Although commodity-trading advisers initially focused on futures tied to physical commodities, such as wheat, corn, oil and gold, most futures trades now cover stock indexes, interest rates or currencies.

Today, CTAs can be based anywhere. Their main assets are computers -- and the people who program them. Bill Dunn, a CTA pioneer, runs Dunn Capital Management LLC from the top floor of a three-story building in Stuart, Florida, alongside the St. Lucie River.

Dunn, 79, who earned a doctorate in theoretical physics from Northwestern University in Evanston, Illinois, in 1966, began trading managed futures for clients in 1974 after a brief career as a consultant to the federal government.
Mainframe Computer

He raised $137,000 from friends and family and used punch cards to build a program to detect profitable market trends and control risk. He purchased processing time on a mainframe computer to run the cards.

High on one wall of Dunn’s windowless trading-room floor, hundreds of red and green numbers blink with currency and commodity prices.

The three traders on duty one March afternoon watch the numbers but don’t make decisions based on them. They leave that to their black box, which makes trading choices on contracts for 53 investments, including the Australian dollar, U.S. Treasury bonds, interest rates, stock indexes, cocoa, copper, live cattle and crude oil.

The so-called box is actually lodged in six computer servers linked by blue and yellow cables. It automatically collects tick-by-tick trading data on all 53 possible trading choices and runs it through hundreds of different models, asking each whether to buy or sell. Then it makes a decision, which it relays to the human traders.
‘Your Orders’

“In minutes, you have your orders for the day,” Dunn says.

Dunn doesn’t cater to most retail investors; he requires a commitment of at least $100,000. He boasts a 13.2 percent compounded annual rate of return over the past 29 years, after a 25 percent fee taken from profits. He charges no management fee.

“I think investors are very comfortable knowing that if they’re having bad times, we’re having them as well,” says Dunn, who sports a shaved head and neatly trimmed salt-and-pepper goatee. “We’re in the same boat.”

In a practice more typical of the industry, Morgan Stanley’s profits aren’t dependent on investors’ making money.

The firm’s 220,000 clients that purchased the 13 funds started by Morgan Stanley and are included in SEC filings paid a total of $2 billion in fees, commissions and expenses during the decade ended on Dec. 31. (The bank opened four of those funds after 2003.)
13 Funds

Investors lost money in seven of the 13 funds, SEC filings show. Spectrum Technical performed well during its first eight years, starting in November 1994. Its investors received a compounded annual return of 7.9 percent in that period. In the decade ended on Dec. 31, 2012, the fund had no gain. Morgan Stanley closed the fund to new investors in 2008.

The worst of the 13 funds was the Managed Futures Premier BHM Fund, which was started in November 2010. It had a compounded annual return of negative 11.7 percent over two years and two months. Five of the six gainers had compounded annual returns below 1 percent.

The best performer, the Morgan Stanley Smith Barney Spectrum Strategic Fund, had a compounded annual return of 2.1 percent during the decade ended on Dec. 31. By comparison, the Fidelity Money Market Fund gained a compounded annual return of 2.9 percent in the same period.

Morgan Stanley runs its managed-futures funds through a subsidiary, Ceres Managed Futures LLC. That was previously a joint venture with New York-based Citigroup. The two top-performing Citi funds, now managed by Morgan Stanley, were energy-focused investments that returned 14.2 percent and 14.8 percent compounded annually in the decade ended on Dec. 31.
Cautions Investors

Citigroup spokeswoman Shannon Bell declined to comment.

Darst, Morgan Stanley’s chief investment strategist, cautions investors about the cost of managed futures in his 2013 book, “Portfolio Investment Opportunities in Managed Futures” (John Wiley & Sons).

Darst, interviewed in April, says investors shouldn’t pay more than 2 to 3 percent in annual fees for managed-futures funds. He says even that’s steep compared with other investments.

“It’s higher,” he says. “That’s something you’ve got to be upfront with people about. This is not a bargain-basement kind of thing.”

He says investors should ask questions about fees before buying managed futures.
Double, Triple

Most Morgan Stanley funds impose annual fees that are double -- some are triple -- Darst’s suggested level. Morgan Stanley funds generally charge 6 to 9 percent of assets in annual fees. Darst declined to answer follow-up questions about his firm’s fees.

Even if an investor understands the effect of fees on returns, it’s impossible to avoid a potential conflict of interest between investors and fund managers. Such risks are explained deep in prospectuses or SEC filings.

Morgan Stanley cautions that employees of the general partner and trading advisers may buy futures for their own accounts, in competition with investors. Clients will never know, the 2008 Morgan Stanley Spectrum Technical fund prospectus says. That’s because those trading records are kept secret from investors.

“As a result, you will not be able to compare the performance of their trading to the performance of the partnership,” the prospectus says.
Lowering Fees

Morgan Stanley spokeswomanJockle says the firm’s managed-futures funds performed well during the stock market plunges that began in 2000 and late 2007. The funds overall gained 22.5 percent after fees in 2008. The bank sells only to investors it deems qualified, and it clearly defines risks and fees, she says.

Morgan Stanley is lowering fees for its new funds, she says. She declined to comment about conflicts of interest.

So incomplete are the disclosures for managed-futures funds that investors, referred to as limited partners, sometimes can’t even find out the names of the people managing them. BlackRock Inc. (BLK), the world’s biggest money manager, refused to name the CTAs it hired for the BlackRock Global Horizons I partnership, even after the SEC requested that information in 2009.

“We do not believe that disclosure of the trading adviser identities would be material to limited partners,” New York-based BlackRock wrote to the agency on Oct. 27, 2009.

The SEC persisted.

“Because your trading advisers manage your assets, it appears that the identity of these persons is material,” the SEC wrote back.
Investor Losses

Five weeks later, BlackRock began making the disclosures. The fund lost $10.2 million for investors in the decade ended on Dec. 31, after paying fees, commissions and expenses of $170.3 million.

“We maintain an open disclosure with the fund’s accredited investors and regularly provide them with insight into who we are investing with,” says BlackRock spokeswoman Jessica Greaney.

The world’s largest futures exchange by trading volume entices individual investors to put money into managed futures by painting a glowing picture.

“Over the past few decades, managed futures have consistently outperformed asset classes such as stocks,” CME Group Inc., which owns the Chicago Mercantile Exchange, wrote in a brochure.

CME Group, which says the managed-futures market holds $337 billion in assets, points to 2008 as a banner year for managed futures, saying these funds do well during stock market declines.
‘Short Selling’

“They employ short-selling and options strategies that allow them to profit in such markets,” the CME brochure says.

When the S&P 500 plunged 37 percent in 2008 because of the global financial crisis, BarclayHedge reported a gain of 14 percent in managed futures.

CME, which also owns the Chicago Board of Trade and the New York Mercantile Exchange, omits two key facts from its promotional material. By using BarclayHedge data, CME masks vast extra fees paid by fund investors.

And CME says managed futures outperformed stocks. But from 2003 through 2012, the S&P 500 delivered more than twice the gains of the BarclayHedge CTA Index -- 98.6 percent compared with 47.9 percent.

In a written response to questions from Bloomberg Markets, CME says that although the S&P 500’s return was higher, managed futures performed better because they were less volatile. “Outperformance is more than raw returns,” it says.
CME Income

Since most such funds don’t file results publicly because they have less than 500 investors and CME cites the BarclayHedge index in its brochure, there’s no way to independently verify whether managed futures are more or less volatile than stocks.

CME Group makes money from managed-futures trades. CTAs are important to CME’s bottom line, says Kelly Brown, a managing director of the exchange operator, who declined to provide exact figures.

“CTAs are kind of the backbone of the exchange,” he says.

No matter how good a CTA’s track record is, even some of the best can fall from grace quickly. John Henry, 64, the principal owner of the Boston Red Sox and the Liverpool Football Club, opened John W. Henry & Co. in 1980. Henry’s Financial and Metals Portfolio earned 19.8 percent compounded annually for the 27 years ended in 2011, when it closed.

Citigroup hired Henry to manage at least four funds. Citi shut down three of those in 2007 after they each plunged more than 44 percent in three years. The fourth, Westport Futures Fund, gained $40.7 million in the decade ended on Dec. 31.

Those earnings were more than erased by $73.8 million of fees. Henry declined to comment.
Investor Misimpressions

In the secretive world of managed futures, managers often keep millions of dollars of investment gains even as their clients suffer losses. And hype by brokers routinely gives investors misimpressions.

One improvement for investors would be a mandate that managers clearly explain in writing how severely fees have consumed returns over time.

“We don’t have a requirement where they have to present that information,” says the National Futures Association’s McHenry. “That would be valuable.”

It would also create a quandary for the managed-futures industry. If fund managers and brokers told investors the whole truth, they might lose the very people who make their business so profitable.

Editors: Jonathan Neumann, Gail Roche

To contact the editor responsible for this story: Jonathan Neumann at jneumann2@bloomberg.net.

How Investors Lose 89 Percent of Gains from Futures Funds - Bloomberg (http://www.bloomberg.com/news/2013-10-07/how-investors-lose-89-percent-of-gains-from-futures-funds.html)

ribshaw

10-10-2013, 09:38 AM

This is a good show for people who like to learn about scams, American Greed and American Greet the Fugitives. Current season on CNBC and some older episodes on line. CNBC's American Greed: Scams, Schemes, and Broken Dreams (http://www.cnbc.com/id/18057119)

John Mark Moore's in-laws didn't suspect a thing. Not even when Moore repeatedly forged their signatures. According to the U.S. Attorney's Office, the couple, two well-respected California farmers, had no clue their son-in-law was increasing their business lines of credit so he could draw down millions in loans—for himself.

At the same time, Moore persuaded his in-law's friend and business associate—known in court documents only as GLM—to invest more than $12 million in a series of ranching and farm ventures that never materialized.

Moore, convicted of fraud, will begin a hefty prison sentence this November. But the story is cautionary: When a scam slams you, you'll never even see it coming. And a new report suggests that Americans may be more vulnerable to fraud than they think. A 2013 report from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation shows just how susceptible we really are.

"Even with all the attention paid to recent frauds like the Madoff scheme," said Gerri Walsh, president of the FINRA Investor Education Foundation, "we're still seeing investors solicited in high measure—and they are not able to recognize the classic red flags!"

What qualifies as a red flag? Interest rates that are too good to be true—like 2 percent a day. (According to FINRA, 2 percent a day would turn $10,000 into about $1.4 million in just one year!) "Guaranteed" investments. And the most appealing red flag tested: Outperforming the Dow Jones!

FINRA's fraud susceptibility research reveals some surprising facts. For example, the more educated and wealthier you are, the more likely you are to invest in a potentially fraudulent scheme. And men, because they are generally less risk averse, are more vulnerable than women.

Other findings are sad but not so surprising: Americans over 65 years of age are 34 percent more likely to lose money to fraud than their under-50 counterparts.

Of course, it's especially hard to spot fraud when it comes from someone you trust. A family member or a friend, or perhaps someone from your church or Facebook tells you about a great investment. Everybody's getting in on it! Or maybe it's a loved one just asking for help: a loan. It all seems upfront and good … until you find out you've been scammed.

One in 6 respondents to the FINRA study said they had suffered a significant financial loss by being taken advantage of by a family member. Fraud and loss courtesy of friends runs at about the same rate. And 34 percent of respondents who had lost money in a fraud were introduced to the seller through a friend; 8 percent were introduced to the seller in a social situation.

Victims of fraud perpetrated by a family member are more likely to have modest incomes. Such were the relatives of master fraudster John Ruffo. As reported by CNBC's "American Greed: The Fugitives," even after Ruffo got caught defrauding seven banks out of $350 million, he wasn't finished breaking hearts. Next, he turned to his relatives.

"He was really good at keeping secrets," Ruffo's ex-wife, Linda Lausten, told "American Greed." When bail was set at $10 million, Lausten, his elderly mother and five of his aging aunts and uncles put up their homes as collateral. "There are all these little people, elderly people, so innocent and naïve," said Lausten. "And we just signed away everything."

Two years later, Ruffo, convicted and sentenced to 17 years in federal prison for the biggest bank fraud of the decade, failed to surrender to serve his sentence. He ran—knowing his wife, mother and relatives would all forfeit their homes. His mother died in a nursing home; she never saw him again.

Even Ruffo's attorney couldn't believe the extent of Ruffo's treachery. "To this day," Judd Burstein told "American Greed," "it astounds me that somebody would do something like that and that to me is really pure evil."

"It was a very selfish act," Deputy U.S. Marshal John Noel told CNBC. Ruffo is still a fugitive, and Noel, the case agent, is still searching for him. "I wish I could give it 110 percent of my time."

For anybody who cares about investing, protecting yourself from skillful hucksters can be tough. "Fraudsters who are 'good' at their game will put you into a heightened emotional state," said Walsh. They talk excitedly and create a feeling of pressure. "They aim to move you from the rational side of your brain to the emotional side."

Slow down, advises Walsh. "Don't make snap decisions. Ask questions to take charge of the conversation." And above all, said Walsh, stay rational.

—By Celia Watson Seupel, Special to CNBC

Fraud: How susceptible are you? (http://www.cnbc.com/id/101092317)

ribshaw

10-10-2013, 09:56 AM

MICHEL MARTIN, HOST:

Now to matters of personal finance. But actually, today, we want to talk more about a common scheme or scam, depending on your point of view, that ensnares thousands of college students every year. Now you figure, if you've made it to college you'll probably be pretty smart, and you figure a college student could smell a pyramid scheme a mile away, but you might be amazed at how often the, quote, amazing business opportunity that their peers want to get them into turns out to be a scam or at best a scheme that costs more in time and money than it earns. That's the situation Darrin Moret found himself in as a freshman in college, and he decided to write about it for Zocalo Public Square so others can learn from his experience. And he is with us now. Darrin, thank so much for joining us.

DARRIN MORET: Thanks for having me.

MARTIN: Also joining us is Sheryl Harris. She's a consumer columnist for The Plain Dealer in Cleveland. She's reported on financial scams over the years. Welcome to you, thank you so much for joining us.

SHERYL HARRIS: Thank you for having me on.

MARTIN: So, Darrin, tell us what happened. It started with a pretty girl, as I understand it.

MORET: Yeah, well, yeah, that's a moniker I would use to describe her. But, basically, a classmate of mine approached me - this was freshman year of college - and approached me with what she called a business opportunity, or a project that she would like me to check out with her and some other people that she brought along as potential recruits. After going to a meeting, which was held at a hotel near LAX airport, we were given a sales pitch for a company selling legal insurance.

The premise was that if you pay a certain amount per month, then you have legal insurance on call whenever you like. And you also get to recruit people in your social network - your friends, family - and then you get a percentage of whatever they bring in. And so starts your business. Your own business.

MARTIN: And so what was attractive about it to you?

MORET: Well, the way they market it was something that you basically - an opportunity to earn passive income. Meaning that you don't have to work a certain amount of hours to get a certain amount of pay. This is the kind of pay that once you start recruiting these people, the checks just kind of more or less roll into your bank account.

MARTIN: Yeah, you're earning money while you sleep. So when did you figure out or when did you start to believe that this wasn't exactly the great deal that you had hoped it would be?

MORET: I would say very shortly after I joined. In fact, my total involvement with this company didn't last more than about a week. However, it was a bunch of small red flags here and there. The first red flag, which I should have picked up initially, was the buy and entry cost for this company was - I want to say it was $125 and then they said that the price would be raised if you didn't sign up the very same evening of the event.

The second thing is once they actually got me as a member, there was very little mention of the actual sale of this supposed legal service. It is an actual legal service, don't get me wrong, but at the same time, it was very apparent that the focus was not on selling memberships to consumers but just recruiting more and more people underneath me to build up my business, for better lack of terms.

MARTIN: OK, you decided after a certain point this was not for you. Did they let you go willingly or did they try to argue with you when you decided that you'd had enough?

MORET: They let me go easily. Basically, he was trying to give me a fatherly pep talk about how, you know, if I quit everything before - just after I start I'll never get anywhere. Something to that effect.

MARTIN: Oh, wow. Guilt trip. Oh, my goodness.

MORET: I'm probably making it sound a little worse than it was. But something to the effect that, you know, you need to kind of stick with things in order to get ahead.

MARTIN: Let's bring Sheryl into the conversation. You're sitting here with me and I see you nodding at just about everything that Darrin is saying. Heard it before?

HARRIS: It's so classic, because, you know, this one-on-one pitch - hey, I know you, I'm like you. I'm making money, come join me. You can make money, too. You know, going through some network. Student to student. Coworker to coworker. Through a church.

This is - it's all very one-on-one sales. Dragging people to these meetings, and the meetings are usually a frenzy of people standing up and doing testimonials. I made a thousand dollars in just two minutes. I mean, it's high pressure sales. And that's really evident in, you know, buy now. Buy your package now and you can get a discount because later these are going to cost people a lot more money. And, the other classic marker here, is there really aren't sales to the public at large. Your income stream really comes from sucking all these other people that you know in. As many people as you can.

MARTIN: And the obvious question, Sheryl, is, is this legal?

HARRIS: No.

MARTIN: It's not?

HARRIS: Well, there are two things that people get confused. They confuse multilevel marketing and pyramid schemes 'cause they're built a lot the same way.

MARTIN: Yeah, what's the difference? Yeah, what is the difference? Because you notice I was struggling over what term to use. Is it a scam or is it a scheme?

HARRIS: And a lot of times pyramids will call themselves multilevel marketing. But here's the basic difference. In multilevel marketing, yes, you are recruiting other people to work under you and you're getting a cut of their sales. But, the bulk of the money that's coming into the company is from people who have nothing to do with the company. It is to the public at large. I have a product, isn't it great? Would you like to buy it? And the public is buying it. In a pyramid...

MARTIN: I'm thinking of a food storage material that I'm particularly fond of. I think that it's traditionally sold by stay-at-home moms, right?

HARRIS: Right.

MARTIN: It's something that was traditionally sold in that way. That's multilevel marketing.

HARRIS: Exactly.

MARTIN: But it is a real product. And I love it.

HARRIS: And it goes on for years because the products, people swear by them. They don't want to sell them necessarily, but they like to buy them. So, that's multilevel marketing. In a pyramid scheme, you're recruiting all the time. You're getting more people to bring more money in and that's - you have a product because it's usually just a sham product. No one outside really wants it, or you can't really prove the value of it. You don't really know.

But, the people who are buying it tend to be people who are already signed up because the more products they can buy or sell, they even sell to themselves or sell to each other, because the more they can sell, the higher up the pyramid they can move. And the bigger cut of what they're bringing in, they can allegedly receive down the line, so...

MARTIN: So it's based on inflated inventory or inflated value.

HARRIS: Exactly.

MARTIN: Why college students? Are college students the main people who seem to be attracted to this?

HARRIS: No, frankly, I'm appalled to hear that it's on campuses. Although, I know of students who've lost money to these things before. In these schemes.

MARTIN: But you're saying it's not mainly college students or you're saying college students are a ripe target?

HARRIS: They're a ripe target. But you'll also find it among professionals. I wrote about a scam once that happened in - a pyramid in Akron, Ohio and a lot of the people who were going to those meetings and selling the products were cops. I mean, anyone can do it. Professionals, blue-collar workers, just...

MARTIN: Is the idea basically to tap into people's social networks...

HARRIS: Yes.

MARTIN: ...so you can figure out why a student like Darrin or college students like him. So, Darrin, what do you draw from this? What would you like other people to learn from your experience? And you were brave enough to write about it. It's not easy to, sort of, admit one's own failings or mistakes.

MORET: Definitely.

MARTIN: So applause to you for doing that. But what do you want the take away to be about this?

MORET: The take away is, often times, when things seem too good to be true, they almost always are.

MARTIN: Sheryl?

HARRIS: I think that Darrin's experience is rare in that he got his money back. And, what I would like people to know, is once people make that initial investment and they make money, they invariably go look for other funds to sink in because the return looks so great at the beginning. So there are people who've wiped out their college savings accounts, who've wiped out their pensions, who've taken out loans against credit cards and even home equity loans to be part of these pyramids. And, when the pyramid collapses, the losses are huge. So, most people don't get their money back.

MARTIN: Darrin, did you get your money back?

MORET: I did. I canceled my membership within the week and I think there was a weeklong or three-week cancellation period in which you'd actually get reimbursed for whatever the initial startup cost was. I was lucky enough. I turned in the papers and they did send me my $125 check or whatever it was. So I was lucky. Yeah. It was a cheap lesson.

MARTIN: Well, that's great. Darrin Moret is an English teacher. He joined us from Hsinchu City, Taiwan, where he is working now and presumably keeping his money in his bank account where it belongs. Darrin, thank you so much for joining us.

MORET: You're welcome.

MARTIN: Sheryl Harris is a consumer columnist for The Plain Dealer in Cleveland, Ohio. And she was kind enough to join us in our Washington, D.C. studio. Sheryl, thanks so much for joining us.

HARRIS: Thank you.

Pyramid Schemes: If It Looks Too Good To Be True, It Probably Is : NPR (http://www.npr.org/templates/story/story.php?storyId=230124252)

ribshaw

10-12-2013, 10:36 AM

SCAMMER tacywilliams@gmail.com

Seriously, ever been in the hospital on someone's last days with a pile of money to give away? This email is a bit like saying I have a place a the beach and can't possibly find anyone but some stranger via email to share it with.

I know that this letter may be a very big surprise to you, I came across your email contact from my personal search and I instructed the doctor here in this hospital to help me email you and i believe that you will be honest to fulfill my final wish before i will die.

I am Mrs. Tracy Williams, I am 66 years old, From Mongolia, and I am suffering from a long time cancer of the breast. From all indication my condition is really deteriorating, and my doctors have courageously advised me that I may not live beyond 3 month;This is because the cancer has reached a critical stage.

I was married to late Dr Williams Altangerel, gold & diamond exportation) in Burkina Faso , West Africa , where we live all our Lives for Thirty-two years before he died in the year2004. But is quite unfortunately, He died after a Cardiac Arteries Operation that lasted only for four days.

Since his death I decided not to re-marry, I deposited all the sum of $7.8million dollars with a Bank in Ouagadougou-Burkina Faso, where we spend our life together in Burkina Faso .

Presently, this money is still in their custody, and the management just wrote me as the Legitimate beneficiary to come forward to receive the money after keeping it for so long or rather issue a letter of authorization to somebody to receive it on my behalf since I cannot come over as a result of my illness, or they get it confiscated.

Presently, I’m with my laptop in a hospital where I have been undergoing treatment. I have since lost my ability to do anything myself and my doctors have told me that I have only 3 month to live.

Now that i am about to end the race like this, without any family members and no child. It is my last wish to see that this money is invested, but you will assure me that you will take 50% of the money and give 50% to the orphanages home in your country for my heart to rest.

I want your good humanitarian, to also use this money to fund churches, orphanages and widows around. I must let you know that this was a very hard decision, but I had to take a bold step towards this issue because I have no further option. I hope you will help see my last wishes come true.

As soon as I receive your reply I shall give you the contact of the Bank. I will also issue you a letter of authority which will prove that you are the new beneficiary of my funds, and the documents concerning the deposit. Please assure me that you will act accordingly as I stated herein. Hope to hear from you soonest. I am waiting your response.

Yours Sick Sister in Christ,

Mrs Tacy Williams.

6136

ribshaw

10-12-2013, 10:42 AM

Phishing scam warns against phishing scams

By Bruce SterlingEmail Author
October 10, 2013 |
4:14 pm |
Categories: Uncategorized

Follow @bruces

*This fraud is diabolical in its cunning parody of the way that financial service outfits actually speak — in the most tedious and officious way possible.

*If it hadn’t taken the trouble to warn me about phishing scams, I might have clicked it just to see what was going on.

We received your payroll on October 9, 2013 at 4:54 PM.

Attached is a copy of your Remittance. Please click on the attachment in order to view it.

Please note the deadlines and status instructions below:
If your payroll is received BEFORE 5 p.m., your Direct Deposit employees will be paid two (2) banking days from the date received or on your paycheck date, whichever is later.
If your payroll is received AFTER 5 p.m., your employees will be paid three (3) banking days from the date received or on your paycheck date, whichever is later.

YOUR BANK ACCOUNT WILL BE DEBITED THE DAY BEFORE YOUR CHECKDATE.
Funds are typically withdrawn before normal banking hours so please make sure you have sufficient funds available by 12 a.m. on the date funds are to be withdrawn.
Intuit must receive your payroll by 5 p.m., two banking days before your paycheck date or your employees will not be paid on time.
Intuit does not process payrolls on weekends or federal banking holidays. A list of federal banking holidays can be viewed at the Federal Reserve website.
Thank you for your business.

Sincerely,

Intuit Payroll Services

IMPORTANT NOTICE: This notification is being sent to inform you of a critical matter concerning your current service, software, or billing. Please note that if you previously opted out of receiving marketing materials from Intuit, you may continue to receive notifications similar to this communication that affect your service or software.
If you have any questions or comments about this email, please DO NOT REPLY to this email. If you need additional information please contact us.

If you receive an email message that appears to come from Intuit but that you suspect is a phishing email, please forward it to immediately to spoof@intuit.com.
) 2013 Intuit Inc. All rights reserved. Intuit and the Intuit Logo are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries. All other marks are the property of their respective owners, should be treated as such, and may be registered in various jurisdictions.

Intuit Inc. Customer Communications
2800 E. Commerce Center Place, Tucson, AZ 85706

ribshaw

10-12-2013, 11:25 AM

I was sort of late to the whole online ad scam thing, but in the short time I have been here it seems an area where everyone has their hands in your pocket. If you are looking for a second income or a business owner looking to advertise you need to be careful. The http://www.realscam.com/f8/banners-broker-hyip-ponzi-scam-897/ is epic scam reading, but there are a few other ad type scams highlighted here as well.

One of the worst kept secrets of online advertising is that it is riddled with fraud. Talk privately to execs in the world of web and mobile adtech, and they'll agree that fraud is routine stuff.

But it's unusual to hear them say it out loud, on the record. That just happened at a panel in New York hosted by Magnetic, an adtech company.

Generally, in the web ad business, people agree that adtech fraud looks like this: Publishers buy traffic from dubious sources so their numbers look better. Ad networks offer inventory from publishers that no one has ever heard of. Botnets click on everything, juicing the numbers. And ads are served in places where even legit consumers can't see them — "below the fold" of the screen they're looking at, or in "pop-unders" that appear behind their screens. Ad agency trading desks fail to report to their clients how much bogus inventory they're buying. And clients don't seem to care that their money is being wasted because the campaigns appear to be performing well — look at all those clicks! Estimates vary, but perhaps $7 million a month is wasted on adtech fraud.

Speaking on the Magnetic panel were James Green, CEO of Magnetic; Anne Hunter, SVP of global marketing strategy at comScore; Brian Gleason, managing director, North America, Xaxis; David Hahn, SVP of product management, Integral Ad Science; and Walter Knapp, COO of Federated Media Publishing.

Industry blog AdExchanger attended, and produced a terrific transcript. We've excerpted the transcript to highlight only on the bits where they mentioned fraud ... and it's eye-popping.

Xaxis' Gleason: Where there’s money, there’s fraud. Until we do bring standards, the reality is that there will be fraud. ... If I’m not paying attention to what I’m buying programmatically, it can be wrought with fraud. It’s up to me to be able to put the mechanisms in place to prevent it.

Federated's Knapp: There’s a degree of fraudulent traffic on [premium publisher] sites (ESPN and The New York Times were two examples the moderator chose for reference purposes). But it’s not like someone goes out intentionally at ESPN to buy fraudulent traffic. There’s a legitimate strategy to buy search engine marketing and there’s a legitimate strategy to go ask for somebody to generate traffic from our site. Almost every large site does that and some of those people work with other brokers that help drive traffic and one of those guys is incented on driving traffic to a site and therefore buys traffic from some dude in Kazakhstan.

Integral's Hahn: I think what we see from our data, in millions of impressions every month, is typically sites like ESPN or The New York Times have much lower degrees of fraud. They don’t need to buy as much traffic or do these audience extension networks. ... I don’t want to say The New York Times or ESPN are riddled with fraud. It’s a fraction of traffic and it happens rarely. Less than 3% [of those who] typically sell their media have instances of fraud, whereas in the exchange world, sometimes see as high as 30%.

comScore's Hunter: We have data working with premium publishers and data working with networks and exchanges. Fraud happens to premium publishers, usually not by them. They want to be in the comScore 100 and they come to us and say, ‘We have all this real traffic,’ and we work with them to understand how they’re being frauded and getting traffic they don’t want or intend to get. It’s often a surprise, but very quickly resolved.

Read more: Adtech Execs Say Online Advertising Is Riddled With Fraud - Business Insider (http://www.businessinsider.com/adtech-execs-say-online-advertising-is-riddled-with-fraud-2013-10#ixzz2hWdN5ynL)

ribshaw

10-12-2013, 11:34 AM

SACRAMENTO, CA - An alleged mortgage scam has left dozens of Northern California homeowners wondering if they even own their own homes.

A federal seach warrant for the home of Arlina Alexander-Zaplutus of Elk Grove alleges she was involved in a "foreclosure rescue scheme" - where unscrupulous people promise homeowners they can stop the foreclosure process.

The FBI agent investigating the scheme said in the documents that it is done by filing for bankruptcy over and over, using incomplete filings that keep restarting the process.

When a friend told Javier Jiminez there was a lady who could keep him from losing his house of 20 years, he decided to give it a try.

"My dad lost his job. We had no money, the next thing you know, all we know is she's gonna take care of the house for us," said Javier's son Jose Jiminez.

Jiminez said Alexander-Zaplutus told his father she would help him stay in his home.

"Yes, she was actually gonna reduce payments and everything like that. She was gonna take care of everything that was going on with the house," the younger Jiminez said she told his father.

In return, Jiminez paid her $500.00 dollars a month and $1500.00 every six months, in addition to $274.00 filing fees the search warrant alleges Alexander-Zaplutus generally did not pay.

"He said that she was saying everything would be ok because she works for the government," Jiminez said.

Information in the search warrant confirms that Alexander-Zaplutus took payments from her mostly Hispanic clients. In return, she continued to file bankruptcy papers, sometimes under other's names, to allow her to keep filing.

Jiminez finally decided to hire a real estate agent to try to do a short-sale of his home - and that's when the realtor gave him some bad news.

"She ended up putting in a bunch of different owners into the house itself," the younger Jiminez said, apparently indicating Alexander-Zaplutus tried to show the home had changed hands to allow her to further delay foreclosure proceedings.

Through his son, the elder Jiminez said he'd wondered how the process worked, but accepted it as a way to stay in his home.

"It was suspicious, but because we were still here, we were like, ok, we're being helped. And it was worth it, I guess," said Jose Jiminez.

The search warrant shows the FBI was looking for documents, computers and hard drives.

No one answered the door at Alexander-Zapulutus' comfortable home in Elk Grove.

No one at the U.S. Attorney's office in Sacramento answered phone calls. A recording said no one was available because of the government shutdown.

Alleged mortgage scam leaves dozens in limbo | news10.net (http://www.news10.net/news/article/260317/2/Alleged-mortgage-scam-leaves-dozens-in-limbo)

ribshaw

10-12-2013, 11:37 AM

Phone scam targets seniors concerned about government default
By Deirdre Fernandes / Globe Staff / October 11, 2013

The Massachusetts Bankers Association is warning seniors that phone scammers may be taking advantage of the political stalemate in Washington and the threat of default to glean sensitive financial information from them.

Some seniors are getting phone calls and being told that their Medicare direct deposits will be stopped unless they supply their bank information for verification, according to Bruce Spitzer, a spokesman for the Massachusetts Bankers Association.

The calls are false, but may be effective because some seniors are concerned that if the government defaults and can’t pay its bills, their Medicare payments would also stop.

Phone scam targets seniors concerned about government default - Business - Boston.com (http://www.boston.com/business/2013/10/11/phone-scam-targets-seniors-concerned-about-government-default/ktzqjZyY6puppjQDbAT0iP/story.html)

6137

littleroundman

10-14-2013, 06:09 AM

Huge rise in phishing spam on text messages

Mobile messaging has become so ingrained in our lives that few of us think twice about opening a text message. But criminals are increasingly using that sense of trust to distribute scams and malicious software, and mobile spam in Australia has risen dramatically.

Figures from the Australian Communications and Media Authority show complaints rose from 992 in 2008-09 to 15,835 in 2012-13 – equivalent to about 4 per cent of spam across all media.

According to the chief technology officer for anti-spam technology maker Cloudmark, Neil Cook, the relatively porous security of global SMS networks has combined with our trust of mobile devices to usher in a new wave of spam.

He said that while upwards of 90 per cent of regular email was now spam, most of this was filtered out by security software. But such protection was less common with mobile messaging.

"Users are opening it, trusting it, and much more likely to be fooled by it," Mr Cook said. "It is very difficult for people to tell the difference between a message that is pretending to be their bank, and their actual bank."

He attributed the growth in mobile spam to the increased availability of unlimited call plans. "It used to be uneconomic to send an SMS spam message," Mr Cook said.

"Now bundled rate plans and even unlimited plans have made it economic to send spam, especially when combined with pre-paid SIM cards. You can stick 100 SIMs in a SIM box to send out any number of spam messages you want."

He said many spammers were using networks in countries such as Malta and Nigeria to send messages because they offered much cheaper rates than networks in target countries.

ACMA's manager for e-security operations, Bruce Matthews, said while text messages could be a mechanism to enable malware, the harmful content in SMS was more related to scams such as fake Lotto wins and fee fraud scams and phishing SMS to obtain personal identity information.

Mr Cook said phishing scams were becoming more sophisticated. He cited a message that encouraged users to call a number and give personal details. The message used the same voice and script as the bank it purported to be, right down to asking respondents to call back if its systems were overloaded.

Security professionals agree that mobile malware is rising. The senior technology consultant for Sophos ANZ, Sean Richmond, said Android in particular was susceptible because of its open nature. His company had identified more than 350,000 variants of Android malware, and another 230,000 variants of potentially unwanted applications which degraded the user's experience or privacy.

"Android's permission system isn't finely grained enough for good security – yet it's too complex for users to make good decisions about what to allow or block," Mr Richmond said.

The senior global product marketing manager at Trend Micro Greg Boyle said by the end of 2012 his company had discovered over 4,000 mobile phishing URLs, and while this represented less than 1 per cent of all phishing URL detections, it represented a clear trend.

"Just last week we reported on a fake Facebook mobile page that attempts to steal users credit card information," Mr Boyle said.

McAfee's latest quarterly threat report listed nearly 18,000 new Android malware samples, including banking malware that intercepted the text message containing the token required to log into one's bank account.

ribshaw

10-14-2013, 08:40 AM

PERSONAL FINANCE: Beware of the pitfalls of public Wi-Fi

By Jason Alderman on October 13, 2013 in Columns, Lead News · 0 Comments

Ever notice how many people walk down the street completely engrossed in their smartphones and tablets? I fully expect to see one of them to walk into a light post one day.
Shelton-Finance-JAlderman

Jason Alderman

Although it’s great having access to email, social networking and online shopping anywhere and anytime, such convenience comes with a certain amount of risk, according to Jennifer Fischer, head of Americas Payment System Security at Visa Inc.

“Unless you’re hyper-vigilant about using secure networks and hack-proof passwords, someone sitting at the next table — or halfway around the world — could be watching your every move online and stealing valuable personal and financial information right off your device,” Fischer said.

Unsecured networks and phony networks

“There are two primary potential dangers with Wi-Fi,” Fischer noted. “The first is using an unsecured network — as many public hot spots are. With a little know-how and the right tools, cyber-criminals could easily eavesdrop on your online activity.

“The second hazard,” she continued, “is phony wireless networks that impersonate legitimate Wi-Fi hot spots. You think you’re logged onto a trusted network, but instead a cyber-criminals has hijacked your session and can see all the private information you access or input.”

Manually select a Wi-Fi network

When using public Wi-Fi networks, always follow these safety precautions:

— Change default settings on your laptop, smartphone or tablet to require that you must manually select a particular Wi-Fi network, rather than automatically accepting the strongest available signal.

— Avoid any network connections your device lists as “unsecured” (look for the “lock” icon). But if you must log on to a public network, avoid websites that require log-ins and passwords — such as bank accounts or email.

— Ask for the exact name of the establishment’s hot spot address; don’t be fooled by lookalikes.

— Only send personal data via Wi-Fi to encrypted websites (those whose addresses begin with “https” and display a lock icon). To be safe, you may want to avoid conducting financial transactions on public Wi-Fi altogether; instead, use your secure home network.

— Consider using a third-party virtual private network (VPN) product to encrypt your Internet traffic.

Regularly update anti-virus software

— Regularly update virus and spyware protection software, make sure firewalls are on, and load operating system updates as soon as they become available, whether for your computer or smartphone.

— Turn off Wi-Fi on your device when it’s not in use.

— Never leave a computer unattended while signed in, and always sign out completely at the end of a session.

— Keep an eye out for “shoulder surfers” who watch as you type in your password.

— Finally, change passwords regularly and use different ones for each website you visit. Use a mixture of letters, numbers and symbols and avoid common words and phrases. Security experts recommend using at least 12 characters instead of the minimum eight characters commonly required.

Cyber-crime is big business

Cyber-crime is a booming business. According to the 2012 Norton Cyber-crime Report, its global price tag topped $388 billion last year, more than the global black market in marijuana, cocaine and heroin combined. It impacts individuals, small and large businesses and governments alike.

Being able to access the Internet anywhere and anytime can be a great convenience and time-saver. Just make sure you know what precautions to take when using public Wi-Fi networks.

Jason Alderman directs Visa’s financial education programs. Follow Jason Alderman on Twitter at www.twitter.com/PracticalMoney.

PERSONAL FINANCE: Beware of the pitfalls of public Wi-Fi | Shelton Herald (http://sheltonherald.com/27187/personal-finance-beware-of-the-pitfalls-of-public-wi-fi/)

ribshaw

10-14-2013, 08:52 AM

Wire Fraud Is on the Rise
Fraud in the brokerage industry is up tenfold over the past decade. Here's how to protect yourself.

By
MATTHIAS RIEKER

When Chapin Davis Investments, a brokerage firm in Baltimore, recently received an email from a client to wire her daughter money, there wasn't anything unusual about the request—at least at first.

The email said the client was visiting her daughter. But with a phone call, the adviser discovered that the client was at home alone watching television.

Such routine due diligence saved the client and the firm from falling for a bogus-email scam and thus becoming another wire-fraud statistic.

Cases of wire fraud—fraudulent money transfers by phone or electronically—in the securities industry have risen more than tenfold over the past decade, to 3,923 cases last year, according to data from the Treasury Department's Financial Crimes Enforcement Network. That is a faster increase than cases of identity theft, which rose almost sevenfold over that period, according to FinCen data.

Since 2011 alone, wire-fraud cases have jumped 63%, FinCen data show.

Clients aren't on the hook for fraud-related losses. Instead, many firms hold brokers and advisers personally liable if a transfer turns out to be fraud and they didn't follow procedure in calling up the client to verify the transaction.

Stephanie Elliott, Chapin Davis's chief compliance officer, says making advisers liable for fraud losses should be the industry standard. "There is no insurance that covers cyberattacks," she says. "If your firm wires out $1 million, guess what, you are out $1 million."

Experts say the problem is likely to get worse. More and more people communicate and transfer money electronically, more people disclose personal information online and more potential criminals around the world have access to technology.

"It's epidemic at this point, it's huge," says Mark Tibergien, chief executive of Pershing Advisor Solutions, Bank of New York Mellon's BK -0.55% custody and clearing unit. "You are constantly playing defense against very clever people." The amount of money criminals have been trying to transfer "is really disconcerting," he adds.

Though there still are the fake emails with spelling and syntax mistakes that make fraud easier to spot, many criminals now "have cutting-edge technology, they have cutting-edge thoughts and they don't have a bureaucracy" to slow their innovation, says Jimmie Lenz, chief risk officer at Wells Fargo's WFC -0.07% retail-brokerage business. "These people understand psychology very well."

Criminals might hack into clients' emails and continue an existing email chain between a broker and a client, often asking for small amounts of money to avoid suspicion—and become more bold if things work out, he says.

The fraud that advisers confront goes beyond hacking and fake emails. Criminals are faking romantic intentions through online-dating services, tricking clients into wiring money.

Perpetrators know to take advantage of three-day weekends, when a client's usual financial pattern might change. Imposters also fake phone calls from places such as Paris, complete with street or airport background noise, and make angry demands about why the money ordered wasn't sent yet.

The more advisers are being made aware of fraud, the harder criminals try: Some are using sites such as Ancestry.com to replicate family ties.

"You don't have to go through great lengths to get data," Mr. Lenz says. What clients put on Facebook provides plenty of information that can help a crook pen an authentic-looking email.

Financial advisers are required to obtain a client's signature for a transfer, through a letter of authorization. But criminals keep monitoring a victim's email account until they intercept an email that already has the required documents—say, the release form, authorization and signature.

Often, clients are annoyed by brokerage firms' laborious and seemingly duplicate verification requirements. Also, it isn't uncommon for brokers to fail to call a client, or at least demur at doing so; the pressure to comply quickly without complications to please an important client can be considerable.

Write to Matthias Rieker at matthias.rieker@dowjones.com

Wire Fraud Is on the Rise - WSJ.com (http://online.wsj.com/article/SB10001424052702304500404579125681915713744.html)

ribshaw

10-14-2013, 08:57 AM

Hiring a shirtless man banging on your door never ends well.

614461456146

Richmond police say several more victims have come forward with complaints against a Richmond father and son who were arrested last week on theft charges stemming from a home improvement fraud investigation.

Willie E. Jones Jr., 49, and his son, Willie E. Jones III, 30, both of 1337 S. Third St. in Richmond, were arrested Wednesday on preliminary counts of theft (a Class D felony).

Authorities say they were targeting elderly individuals when they would go to homes and offer to do work for high prices. Police said the work was done shoddily and sometimes not even completed.

In some instances, police said one of the men would return to the home the following day and claim the other had been in an accident and they needed money to go see them. They would allegedly promise to do work in exchange for the money and then never show up to do the job.

Police recently said during the ongoing fraud investigation, authorities discovered the men also allegedly stole items from some of the homes where they were doing work, leading to the theft charges.

Police said since the men’s photos appeared online, in the newspaper and on social media sites, they have received more calls from victims claiming they were taken advantage of, or had personal property taken, by the two men.

Both men remained Friday in the Wayne County Jail on $10,000 surety bond. Both also were being held for a warrant out of Randolph County, jail officials said. Upon conviction, the range for a Class D felony is six months to three years and a $10,000 fine.

Anyone who was involved with the two men, were taken advantage of or believes the suspects stole items from them can contact RPD Detective Pam Mertz at (765) 983-7356.

Staff writer Robert Sullivan: (765) 973-4471 or rsullivan7@pal-item.com

http://www.pal-item.com/article/20131013/NEWS01/310130009/Police-seek-home-improvement-fraud-victims

ribshaw

10-14-2013, 09:00 AM

United States: EB-5 Investor Alert – Investment Scams Exploit Immigrant Investor Program
Last Updated: October 11 2013
Article by Alka Bahal
Fox Rothschild LLP

The U.S. Securities and Exchange Commission's ("SEC") Office of Investor Education and Advocacy and U.S. Citizenship and Immigration Services ("USCIS") have jointly issued an Investor Alert to warn potential investors about fraudulent investment scams that exploit the Immigrant Investor Program, also known as "EB-5." The SEC and USCIS have issued this alert in response to their awareness of investment scams targeting foreign nationals who seek to become permanent lawful U.S. residents through the EB-5 program.

In close coordination with USCIS, which administers the EB-5 program, the SEC has taken emergency enforcement action to stop allegedly fraudulent securities offerings made through EB-5. The EB-5 program provides certain foreign investors who can demonstrate that their investments are creating jobs in this country, with a potential avenue to lawful permanent residency in the United States. Business owners apply to USCIS to be designated as "regional centers" for the EB-5 program. These regional centers offer investment opportunities in "new commercial enterprises" that may involve securities offerings. Through EB-5, a foreign investor who invests a certain amount of money that is placed at risk, and creates or preserves a minimum number of jobs in the United States, is eligible to apply for conditional lawful permanent residency. Toward the end of the two-year period of conditional residency, the foreign investor is eligible to apply to have the conditions on their lawful permanent residency removed, if he or she can establish that the job creation requirements have been met. Foreign investors who invest through EB-5, however, are not guaranteed a visa or to become lawful permanent residents of the United States. For more details, read USCIS's EB-5 Immigrant Investor section.

The fact that a business is designated as a regional center by USCIS does not mean that USCIS, the SEC, or any other government agency has approved the investments offered by the business, or has otherwise expressed a view on the quality of the investment. The SEC and USCIS are aware of attempts to misuse the EB-5 program as a means to carry out fraudulent securities offerings. In a recent case, SEC v. Marco A. Ramirez, et al., the SEC and USCIS worked together to stop an alleged investment scam in which the SEC claims that the defendants, including the USA Now regional center, falsely promised investors a 5% return on their investment and an opportunity to obtain an EB-5 visa. The promoters allegedly started soliciting investors before USCIS had designated the business as a regional center. The SEC alleged that while the defendants told investors their money would be held in escrow until USCIS approved the business as eligible for EB-5, the defendants misused investor funds for personal use such as buying luxury cars. According to the SEC's complaint, the investors did not obtain even conditional visas as a result of their investments through the USA Now regional center.

In another case, SEC v. A Chicago Convention Center, et al., the SEC and USCIS coordinated to halt an alleged $156 million investment fraud. The SEC alleged that an individual and his companies used false and misleading information to solicit investors in the "World's First Zero Carbon Emission Platinum LEED certified" hotel and conference center in Chicago, including falsely claiming that the business had acquired all necessary building permits and that the project was backed by several major hotel chains. According to the SEC's complaint, the defendants promised investors that they would get back any administrative fees they paid for their investments if their EB-5 visa applications were denied. The defendants allegedly spent more than 90 percent of the administrative fees, including some for personal use, before USCIS adjudicated the visa applications.

As with any investment, it is important to research thoroughly any offering that purports to be affiliated with EB-5. The SEC and USCIS advise that you take these steps:

Confirm that the regional center has been designated by USCIS. If you intend to invest through a regional center, check USCIS's list of current regional centers. If the regional center is not on the list, exercise extreme caution. Even if it is on the list, understand that USCIS has not endorsed the regional center or any of the investments it offers.
Obtain copies of documents provided to USCIS. Regional centers must file an initial application (Form I-924) to obtain USCIS approval and designation, and must submit an information collection supplement (Form I-924A) at the end of every calendar year. Ask the regional center for copies of these forms and supporting documentation provided to USCIS.
Request investment information in writing. Ask for a copy of the investment offering memorandum or private placement memorandum from the issuer. Examine it carefully and research similar projects in evaluating the proposal. Follow up with any questions you may have. If you do not understand the information in the document or the issuer is unwilling or unable to answer your questions to your satisfaction, do not invest.
Ask if promoters are being paid. If there are supposedly unaffiliated consultants, lawyers, or agencies recommending or endorsing the investment, ask how much money or what type of benefits they expect to receive in connection with recommending the investment. Be skeptical of information from promoters that is inconsistent with the investment offering memorandum or private placement memorandum from the issuer.
Seek independent verification. Confirm whether claims made about the investment are true. For example, if the investment involves construction of commercial real estate, check county records to see if the issuer has obtained the proper permits and whether state and local property tax assessments correspond with the values the regional center attributes to the property. If other companies have purportedly signed onto the project, go directly to those companies for confirmation.
Examine structural risk. Understand that you may be investing in a new commercial enterprise that has no assets and has been established to loan funds to a company that will use the funds to develop projects. Carefully examine loan documents and offering statements to determine if the loan is secured by any collateral pledged to investors.
Consider the developer's incentives. EB-5 regional center principals and developers often make capital investments in the projects they manage. Recognize that if principals and developers do not make an equity investment in the project, their financial incentives may not be linked to the success of the project.
Look for warning signs of fraud. Beware if you spot any of these hallmarks of fraud:
Promises of a visa or becoming a lawful permanent resident. Investing through EB-5 makes you eligible to apply for a conditional visa, but there is no guarantee that USCIS will grant you a conditional visa or subsequently remove the conditions on your lawful permanent residency. USCIS carefully reviews each case and denies cases where eligibility rules are not met. Guarantees of the receipt or timing of a visa or green card are warning signs of fraud.
Guaranteed investment returns or no investment risk. Money invested through EB-5 must be at risk for the purpose of generating a return. If you are guaranteed investment returns or told you will get back a portion of the money you invested, be suspicious.
Overly consistent high investment returns. Investments tend to go up and down over time, particularly those that offer high returns. Be suspicious of an investment that claims to provide, or continues to generate, high rates of return regardless of overall market conditions.
Unregistered investments. Even though a regional center may be designated as a regional center by USCIS, most new commercial enterprise investment opportunities offered through regional centers are not registered with the SEC or any state regulator. When an offering is unregistered, the issuer may not provide investors with access to key information about the company's management, products, services, and finances that registration requires. In such circumstances, investors should obtain additional information about the company to help ensure that the investment opportunity is bona fide.
Unlicensed sellers. Federal and state securities laws require investment professionals and their firms who offer and sell investments to be licensed or registered. Designation as a regional center does not satisfy this requirement. Many fraudulent investment schemes involve unlicensed individuals or unregistered firms.
Layers of companies run by the same individuals. Some EB-5 regional center investments are structured through layers of different companies that are managed by the same individuals. In such circumstances, confirm that conflicts of interest have been fully disclosed and are minimized.

If your investment through EB-5 turns out to be in a fraudulent securities offering, you may lose both your money and your path to lawful permanent residency in the United States. Carefully vet any EB-5 offering before investing your money and your hope of becoming a lawful permanent resident of the United States.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

EB-5 Investor Alert – Investment Scams Exploit Immigrant Investor Program - Immigration - United States (http://www.mondaq.com/unitedstates/x/268648/work+visas/EB5+Investor+Alert+Investment+Scams+Exploit+Immigr ant+Investor+Program)

littleroundman

10-15-2013, 09:35 AM

Victorian man loses $30k to scammers

A VICTORIAN man has been duped out of nearly $30,000 after falling for a phone scam involving a non-existent government office.
The Bendigo man received several phone calls from someone claiming to work for Westpac, informing him that he owed the bank a large sum of money.

Another caller pretending to work for the Office of Fair Trading - an office which does not exist in Victoria - then gave the man a Western Union account number to pay the fictional debt.

He made 14 instalments totalling almost $30,000 after receiving an average of five calls a day requesting further payments.

Consumer Affairs Minister Heidi Victoria said the scammers went to great lengths to make the calls seem credible.

"Scams are designed to seem legitimate and can be very difficult to differentiate from the real thing, so consumers need to be aware of tactics scammers use to deceive people," Ms Victoria said.

ribshaw

10-16-2013, 02:35 PM

SCAMMER ritaa07@zipmail.com.br

The old I'm rich and dying and could not find anyone to take my money except some stranger on the internet scam.

6149

N[38 Rue Des Martyrs Cocody
Abidjan, Cote d'Ivoire

ATTN:
DEAREST ONE OF GOD
I am the above named person from Kuwait . I am married to Mr David Williams, who worked with Kuwait embassy in Ivory Coast for nine years before he died in the year 2004. We were married for eleven years without a child. He died after a brief illness that lasted for only four days.

Before his death we were both born again Christian. Since his death I decided not to remarry or get a child outside my matrimonial home which the Bible is against. When my late husband was alive he deposited the sum of $2. 5 Million (Two Million Five Hundred U.S. Dollars) in the bank here in Abidjan in suspense account.

Presently, the fund is still with the bank. Recently, my Doctor told me that i h ave serious sickness which is cancer problem. The one that disturbs me most is my stroke sickness. Having known my condition I decided to donate this fund to a church or individual that will utilize this money the way I am going to instruct herein. I want a church that will use this fund for orphanages, widows, propagating the word of God and to endeavour that the house of God is maintained.

The Bible made us to understand that blessed is the hand that giveth. I took this decision because I dont have any child that will inherit this money and my husband relatives are not Christians and I dont want my husband efforts to be used by unbelievers. I dont want a situation where this money will be used in an ungodly way. This is why I am taking this decision. I am not afraid of death hence i know where I am going. I know that I am going to be in the bosom of the Lord. Exodus 14 VS 14 says that the Lord will fight my case and I shall hold my peace.
I dont need any telephone communication in this regard because of my health hence the presence of my husband relatives is around me always I don't want them to know about this development. With God all things are possible. As soon as I receive your reply I shall give you the contact of the bank here in Abidjan .I await your soonest response with your full information, example.
(1}Your full name ------------------

(2}Address ------------------------

I will use the above information to obtain an authorization letter that will legally and officially approve you as the new beneficiary of this fund from the Federal Ministry of Justice Cote D ivoire . I want you and the church to always pray for me because the lord is my shepherd. Please assure me that you will act accordingly as I Stated herein.

Remain blessed in the Lord
Take care, Yours Sister in Christ

Mrs Rita Williams

ribshaw

10-16-2013, 02:59 PM

SCAM payment@plimus.org

Give me a break. If you google something like this and the first page is filled with people telling you it is not a scam, it is a scam. How many people can win the lottery? ONE. OK you got me a few people will win a free ticket or whatever. Seriously you stand a better chance of being crushed by a vending machine or rescued by a dolphin than winning the lottery. How many copies of this "system" can they sell before winning the lottery becomes something everyone can do? Then it would cease to be cool, save your cash.

6150

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Step #1
* Get yourself a notebook only for the lottery.
Establish the lotto game that you want to play
and track down the winning numbers exactly
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this simple FORMULA (find it in my book) that
gives you the 48. 7% chance of winning every
time we play.

Step #3
* Wait for the results and see how it worked.
If you win, go and take your prize. I repeat,
there’s a big chance to win the very first time…
but it can happen that you may not win. Don’t
despair … I told you that the efficiency of my
FORMULA can be seen within just a few weeks.

Step #4
* If you win, repeat the process over and over
again. If you don’t win … be patient and play
again. It’s more of a “ When” situation instead
of an “ IF”.

Step #5
* Don’t share your information with anyone else.
Think what would happen if all the players have
the secret key…

Extra steps (recommended by me):

Step #6
* After you WIN, be careful to keep a low profile.
There are a lot of desperate people, especially
with this crisis, who will do anything for your money.

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peace of mind. It feels good … Don’t be greedy!

CLICK HERE TO GET INSTANT ACCESS!
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Best Regards,
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littleroundman

10-17-2013, 02:16 AM

"Cash wash" scam costs Boyanup man $2 million

A West Australian man has lost more than $2 million to online scammers, after being caught up in an international 'cash washing' con.
WA Police said the man, who wants only to be known as Bryan from Boyanup in the state's South West, was conned over four years by claims he could make up to STG32 million ($A53.77 million) in the scheme.

It involved meeting the fraudsters in Kuala Lumpur and Dubai where they demonstrated a method involving expired bank notes coated in a white substance which would be turned into useable currency after being washed in chemicals.

He was initially asked to invest $US80,000 to buy the special chemicals needed to complete the process - and the con then continued to fleece Bryan of everything he owned.

Bryan, who was preparing to retire, said he may lose his home as a result of the loss.

"I can only blame myself for being so blind and the more I got into it, the blinder I got. I decided I needed to get out of it and wake up. I hope that by telling my story people will become aware and not get caught like I have,'' Bryan said.

Project Sunbird, a joint operation between Consumer Protection and WA Police, flagged the fraud and alerted the 56-year-old mine worker.

"This particular fraud was supported by sophisticated fake websites replicating legitimate investment banking companies and a bogus account gave the victim the impression he had control of his funds when he did not,'' said

Detective Senior Sergeant Dom Blackshaw of the WA's Major Fraud Squad said the fraudsters had covered their electronic tracks, making them very hard to catch.

laidback

10-17-2013, 09:16 AM

Can this guy dress himself? The key term seems to be "usable currency," which does not equate to "legal" currency. AFAIK someone other than a government producing currency is counterfeiting...!

littleroundman

10-17-2013, 09:27 AM

Maybe Wikipedia can make it clearer as to how the "cash wash" scam works

Black money scam

From Wikipedia, the free encyclopedia
Jump to: navigation (http://en.wikipedia.org/wiki/Black_money_scam#mw-navigation), search (http://en.wikipedia.org/wiki/Black_money_scam#p-search)

http://upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png

The black money scam, sometimes also known as the "wash wash scam", is a scam (http://en.wikipedia.org/wiki/Scam) where con artists (http://en.wikipedia.org/wiki/Con_artist) attempt to fraudulently obtain money from a victim by persuading him or her that piles of banknote-sized paper in a trunk or a safe is really money which has been dyed black or another color (e.g. to avoid detection by customs). The victim is persuaded to pay for chemicals to wash the "money" with a promise that he will share in the proceeds.

The black money scam is a variation of what is known as advance fee fraud (http://en.wikipedia.org/wiki/Advance_fee_fraud).

Black money scam on Wikepedia (http://en.wikipedia.org/wiki/Black_money_scam)

ribshaw

10-17-2013, 10:58 AM

Can this guy dress himself? The key term seems to be "usable currency," which does not equate to "legal" currency. AFAIK someone other than a government producing currency is counterfeiting...!

I wonder this myself when someone loses such a large amount of money. Is there something wrong that they are making such poor choices? Did they inherit the money and really think something like this was plausible? I would also think that someone who had earned a few million dollars would have some experience with people trying to cheat them. Are they greedy or desperate? There have even been a few cases where guys running a ponzi schemes have been caught by other guys running similar scams.

Surely the skill of conman you are dealing with at this level is higher than a street thief, still this type of loss is jaw dropping.

ribshaw

10-18-2013, 10:23 AM

CELL PHONE DELIVERY SCAM

The scam works like this. A phone or, increasingly of late, phones, are mysteriously delivered to the victim’s home. They haven’t placed the order and so are not surprised when they receive a call saying there has been a mistake and the goods will be collected at a given time. However, rather than an innocent courier coming for them, it is the fraudster or a sidekick. Meanwhile the bill is in the victim’s name.

Despite being 79 years old, GC foiled the crooks by calling the company the phone had come from and arranging to have the phone sent back to it. The fraudster, or his representative, was sent packing with nothing to show for his trickery. It is a pity though that the police were not there to apprehend him when he came.

The fact that someone comes to the door makes this scam particularly personal and unpleasant. The resulting upset can border on feelings of paranoia.

One reader, whose signature is illegible, possibly because she was embarrassed, wrote “I could only assume that a rather unpleasant young man that I had a contretemps with (car to car) at the local tip had set it up for spite.” This infers that this reader may have been taking personal information to the skip which could have been retrieved and then used for nefarious purposes. It is of course important to safeguard such information and shred or burn it rather than dump it. Or had she given details following the car incident? These sort of speculations can keep people awake at night.

Perhaps it also needs to be said that sometimes information may be gleaned from death notices in local papers. Keep precise details to a minimum as much as possible.

Apart from letting the telephone company concerned know as well as the local police, see that Action Fraud - the central crime reporting channel on actionfraud.police.uk - is also informed. Action Fraud didn’t have a precise breakdown of the figures immediately to hand about this type of telephone fraud. However it does say that anyone having an unexpected delivery like this should ask for identification from the courier. It adds that people should not sign for things that they have not ordered.

Consider also speaking to Citizens Advice on 08454 040506 or via their website adviceguide.org.uk.

Mobile phone delivery scam on the rise - Telegraph (http://www.telegraph.co.uk/finance/personalfinance/consumertips/jessicainvestigates/10385330/Mobile-phone-delivery-scam-on-the-rise.html)

ribshaw

10-18-2013, 10:32 AM

There is a lot of scam bullshit that has been pushed for years using Nevada corporations and other offshore gimmicks. Usually it ends with something like this.

Nine-year prison term for tax-avoidance scam
Kevin McCoy, USA TODAY 8:45 p.m. EDT October 16, 2013
The scheme took advantage of loopholes and relaxed oversight of some state's incorporation requirements.
William Reed, president of Asset Protection Group

Six years ago, William Reed was a Nevada businessman listed as the corporate officer for more than 1,000 companies purportedly headquartered in a lone Las Vegas office suite.

Now he has a new title: federal prison inmate, sentenced to nine years behind bars.

Nevada Senior U.S. District Judge Philip Pro imposed the sentence Tuesday after Reed pleaded guilty to tax conspiracy, attempted tax evasion and aggravated identity theft in a case involving his part in a thriving mini-industry that helps an untold number of clients attempt to hide financial assets from the IRS and other government agencies, creditors and courts.

Pro also ordered Reed, 63, to pay nearly $4.2 million in restitution as part of the sentence.

A Feb. 2007 USA TODAY report showed that Reed and his company, Asset Protection Group, took advantage of gaps in domestic incorporation laws and virtually non-existent government oversight to promote some U.S. states as secrecy rivals of traditional offshore tax havens.

Asset Protection Group attracted clients in part with a promotional video in which actor Robert Wagner warned that without asset protection, "You could lose everything you've worked so hard for, in a flash." Clients paid as much as $9,800 for the firm's asset protection program and became company consultants.

Reed and the firm typically formed new Nevada corporations for the clients that listed him, not them, as the sole officer. The procedure took advantage of laws in Nevada and other states that often do not require the actual owners of corporations to be disclosed.

"Our consultants purchased the corporations, resold them, and I never knew who actually used them," Reed wrote in a statement filed with the court last week. "Some of our customers used the corporations to hide their assets or income from the IRS."

Reed personally owes more than $34.4 million in taxes, and Asset Protection Group transactions add an additional $14 million in tax liabilities, federal court records show.

Reed's sentence was more lenient than the 12-year term recommended in a presentencing report. But it was harsher than the six-year term defense attorney attorney Paola Armeni urged in a Oct. 8 sentencing memorandum.

While acknowledging that Reed had "failed to pay his own taxes" and continued to engage in activities that "deprived the IRS from collecting money from many others," Armeni argued in the memo that he deserved a lighter sentence based on his help recovering nearly $3 million for the IRS.

Armeni also cited Reed's help providing evidence against alleged co-conspirators, his age and need to assist with care of his 88-year-old mother.

"As someone with no prior criminal activity, I am humbled and humiliated. I'm truly ashamed," Reed wrote in his court statement.

However, Assistant U.S. Attorney J. Gregory Damm argued in a court filing last week that Reed should get no leniency for satisfying a fraction of his overdue tax bill. "The government has made a good faith evaluation of the defendant's assistance to date and has concluded that he has not yet provided "substantial assistance to authorities," Damm wrote.

Nine-year prison term for tax-avoidance scam (http://www.usatoday.com/story/money/business/2013/10/16/william-reed-sentenced/2958595/)

ribshaw

10-18-2013, 10:49 AM

Such a popular scam because it works, until the money runs out.

Former Wading River attorney arrested in $4M Ponzi scheme, says DA

A former attorney from Wading River stole about $4 million from real estate investors in a Ponzi scheme and deceived them with forged property sales and bank records, the Manhattan district attorney's office said Thursday.

Alice Belmonte, 47, was arraigned Thursday on a 49-count indictment that includes grand larceny and identity theft charges stemming from a scam against 10 investors between August 2011 and January 2013, said District Attorney Cyrus R. Vance Jr.

She had promised "quick, high" profits through investments in foreclosures, but as soon as investors transferred funds to an escrow account to pay for purchases, Belmonte placed the money into her own accounts or paid prior investors, according to case documents.

Belmonte pleaded not guilty and bail was set at $3 million cash or bond. Her attorney, Kenneth C. Murphy of Manhattan, declined to answer questions but said she has not attempted to avoid prosecution despite knowing about the investigation.

Belmonte's surrender of her attorney's license was accepted by judicial officials in February.

Investigators, armed with a search warrant for Belmonte's home, Thursday found documents indicating she had offshore bank accounts, prosecutors said during the arraignment. Also, they said, Belmonte spent $77,000 on California hotels for herself and friends and bought two cars in California for $100,000.

Several of her defrauded investors were in Florida, but she also convinced a close friend and an acquaintance to chip in $250,000 together, court documents said.

Belmonte told investors she would find buyers willing to pay big for foreclosures, then do back-to-back closings on the purchase and resale, papers said.

When investors wanted their profits or money back, she sometimes held them off by writing fraudulent checks -- $6 million during the period covered by the indictment -- or she forged bank records about wire transfer problems, prosecutors said.

Former Wading River attorney arrested in $4M Ponzi scheme, says DA (http://www.newsday.com/news/new-york/former-wading-river-attorney-arrested-in-4m-ponzi-scheme-says-da-1.6274229)

=============================================

Lauderhill Woman Accused Of Running $4 Million Ponzi Scheme

FT LAUDERDALE (CBSMiami) – A Lauderhill woman who ran a company which allegedly dealt with federal bail and immigrations bonds is accused of running a multi-million dollar Ponzi scheme.

On Thursday 54-year old Jenny Coplan was indicted on three counts of wire fraud.

As president of Immigration General Services LLC (IGS), Copland reportedly sought out investors for phony bonds and promised interest rates exceeding 60 percent a year on their investments.

Coplan allegedly promised that the investments were insured by the Federal Deposit Insurance Company and had little risk, and she had the experience and licenses to invest in these bonds.

According to the indictment, Coplan also gave investors fictitious financial statements and fraudulent e-mails from the bond corporation in which investors were purportedly investing.

She allegedly received $4 million from these investors. Rather than investing the money in the bonds as promised, Coplan reportedly used the money from new investors to pay old investors and for her personal use.

If convicted, she faces up to 20 years in prison for each count.

=============================================

ribshaw

10-18-2013, 10:56 AM

By Bonnie Patten, Truth In Advertising

Forget the celebrity endorsement, the uber smart scientist, the terrific product, and that kick-ass rags-to-riches speech you just heard. If a pyramid scheme is pitching to you, odds are most of what you’re hearing isn’t all that accurate or relevant anyway.

Pyramid scheme companies prey on recent grads fresh out of high school and college. When you are trying to figure out whether a company really is a legitimate multi-level marketing organization or an illegal pyramid scheme, you need only do one thing: follow the money.

To ensure that you are not about to enter the tainted netherworld of a pyramid scheme, which could land you in legal hot water, make sure that you have answers to these six money-related questions before you accept a job offer:
1. Do you have to pay for the right to sell the product?

If YES, that’s bad because one part of the legal definition of a pyramid scheme has just been met.

If the answer is I DON’T KNOW, that’s bad too. Pyramid companies are masters of disguise. One way they hide the true nature of their business is to bury the details of the business.

If NO, continue reading.
2. How will you make money with the company’s compensation plan?

The terms and conditions of an organization’s compensation plan tell you a lot about a company. So if you’re seriously considering the opportunity, read the plan and, consider these issues:

Is the company’s compensation plan easy to understand?  If the compensation plan is a lengthy, confusing document, that’s not good. Pyramid companies are masters of making their plans so difficult to understand that no one can figure them out. The complexities of the system help obscure the true nature of the business.  If you can’t understand the plan, don’t join.

When reading the compensation plan, determine how much money you must spend to make money.  Pyramid schemes typically require you to pay them money either by charging you for the right to sell the product (point 1 above), or conditioning your compensation on continual mandatory purchases. This later charge is known as “inventory loading.” Avoid companies whose compensation plan is based on mandatory purchases.

Does the plan compensate for recruiting others into the organization?  One of the hallmarks of a pyramid scheme is its “recruitment focus” – that is basing most of your compensation on getting others to join rather than the retail sale of the product to the public.

Savvy pyramid schemes mess with the concept of who the “public” is and what a “retail sale” is. But here’s the thing, no matter what the plan says, sales to recruits, self-consumption, or sales to your downline do not count as retail sales to the public. If the MLM’s compensation plan is not tied to selling stuff to strangers, that’s bad.

One further point, many MLM compensation plans have some CYA provisions to defend against pyramid allegations. Three common CYA provisions are:

70% Rule: requires you to sell at least 70% of your purchased inventory each month.
Customer Rule: requires you to make at least one retail sale to each of 10 different customers each month.
Inventory Buy Back: requires the company to buy back any unused and marketable products you can’t sell.

3. How does the business actually function?

More important than the existence of CYA rules on paper is finding out whether there is evidence that the company enforces the rules and that they serve to deter inventory loading and encourage true retail sales.

When it comes to instituting effective methods for verifying sales to the public or accepting unsold merchandise, pyramid schemes fall short.  If the company simply requires that you “promise” to be good and follow the rules either orally or in writing, that’s a weak enforcement mechanism and should be viewed warily.

Similarly, while plans may say they buy back inventory, pyramid schemes have ways to deter returns. One common trick of the pyramid trade is to demand that you compensate the company for commissions the company paid you for sales you were supposed to have made from the inventory you are trying to return.
4. Will you make more money recruiting or selling products to strangers?

Warning: your idea of what the “public” means and the MLM’s definition of “public” may differ. Another way to ask may be, “excluding the business’s own sales force, and a distributor’s personal consumption, how much product is sold to the public?”

If it’s an illegal pyramid scheme, odds are you won’t get a straight answer to this question.

With pyramid schemes, retail sales are not forthcoming because the compensation system rewards recruitment more than retail sales. Meaning, the company doesn’t care about retail sales so it doesn’t track them.  In order to stay on the legal side of the equation, an MLM’s economic profit center must be on true retail sales.
5. Can you make money selling the product to the public?

Calculator required. What is the suggested retail price (SRP) of the product you’re going to sell, and is that SRP competitive compared to similar products? If the product is not truly unique you may have difficulty selling it at the SRP. Also, check websites like eBay for the company’s products – too many sellers means excess inventory, low prices and no profit.

Further, pyramid companies are masters of nickel and diming you. Make sure you know what your business expenses will be for things like shipping and handling, sales tax, and marketing.

Inquire about what kind of training will be provided to teach you how to sell the product. If a company isn’t forthcoming this information, that’s a bad sign.
6. How many people that join the company succeed?

At least 85% of people that join a pyramid scheme will fail. This is a guaranteed fact. And no, it’s not because most people just don’t understand the system, aren’t smart enough, or true believers, or just didn’t invest enough money, time and effort. The vast majority fails because that is the way pyramid schemes are structured to work. Less than 3% of those that join a pyramid scheme will make any meaningful money. Odds clearly indicate that it will not be you.

If the answers to the above questions give you pause, then stay away from the company. It’s likely a losing proposition.

Bonnie Patten is an attorney and Executive Director of Truthinadvertising.org

Read more: 6 Ways To Tell If The Company Interviewing You Is A Pyramid Scheme » RYOT News (http://www.ryot.org/pyramid-scheme/410129#ixzz2i5cAmfr2)
Follow us: @RYOTnews on Twitter | RYOTnews on Facebook

6 Ways To Tell If The Company Interviewing You Is A Pyramid Scheme » RYOT News (http://www.ryot.org/pyramid-scheme/410129)

6197

ribshaw

10-22-2013, 10:52 AM

SCAMMER mercy_j98@yahoo.com
SCAMMER rev.patrickelvis@yahoo.com

Reverend Elvis, of course. I have no idea who this is, although I am sure I have written about them in the past. A few times these 419 scammers will contact me with something similar telling me that they will give me some token amount of money for "help" that I have provided them. It they only knew I would be getting a bill as my sole goal is to ruin their scams.

Hello dear,
How are you and work? I hope my email finds you well. Really, it's been some long time since we last communicated but i have been praying and asking the almighty God to keep my life so that one day,I will be able to meet with you because you have shown me care and concern during when i was in need of your assistance.
Although i was unable to realize the transaction with you based on the developments then, but I thank the mighty God that all is well now.I am very happy to let you know that the bank has release my money to me through the assistance of Mr.Paul Wayne from UK, he is a kind-heated man who is now my co-investor and Husband.I wish to let you know that i am in London with my husband and i send to you draft cheque of $350,000 to you and some other families who assisted me very much when i was in terrible situation in Senegal.
I have instructed Rev.Patrick Elvis a pastor in charge of Mission Baptist Church in the Refugee Center in Dakar Senegal to send you the cheque, contact him with his address below.I feel this is the only way I could say thank you.
Yours mercy.
Rev.Patrick Elvis
Email:rev.patrickelvis@yahoo.com
Missionary-Baptist-Kirsch
P. O.Box: 1225.421 RUE FELIX
DAKAR SENEGAL

littleroundman

10-23-2013, 06:39 AM

AAP October 23, 2013 9:53AM

AN Adelaide Hills woman has had thousands of dollars stolen from her bank account after she was duped by a man offering to upgrade her computer.
Police say the woman took a phone call earlier this month from a man who claimed to be a Microsoft representative.

He told her he was calling in relation to updates required on her computer and when the woman clicked on a link he was given remote access.

It wasn't until a few days later that the victim was contacted by her bank to tell her that several thousand dollars had been withdrawn from her account.

A police spokesman says investigations are continuing but the case is a reminder for people to be cautious about allowing remote access to their computers.

ribshaw

10-23-2013, 09:22 AM

The trick to avoiding many scams of this nature is to VERIFY the number you are calling. In similar scams, phone numbers are given that ring directly to people working with the scammers.

http://www.youtube.com/watch?v=tJd6hJp2mDA&feature=em-subs_digest

ribshaw

10-23-2013, 09:51 AM

Warning: The OS X Mavericks phishing scams have already begun
Evan Dashevsky @haldash

Oct 23, 2013 6:59 AM
print

Mac users, are you excited to jump on your free Mavericks upgrade? Be aware that the scammers, spammers, and phishers out there are aware of the mass migration and geared to take advantage. The malicious emails have already begun.

Late last night, I downloaded Mavericks, but didn't get to installing it until this morning. By the time I got to work, I had received an email on my personal account from Apple notifying me that my Apple ID had been used to sign-in on my MacBook Air. The email text was addressed to me and correctly named my computer. All good.

But I also received an email on my work email purportedly from Apple with the subject "Your Apple ID has been frozen temporarily". The text stated in mostly grammatically correct language that I "tired to to access your account more than once from several places and have exceeded the allowable limit for access times for this reason that your account has been frozen ."
phishing MavericksThis email looked mostly legit (especially before I had my morning coffee).

Instead of being addressed to my name, the email was addressed to "Dear Customer". This generic salutation is the hallmark of a phishing scam. My work email is not associated with my personal Apple ID, which should have been my first clue. But in my pre-caffeine haze (and reliance on Gmail's typically reliable filtering system), I almost clicked through.

Thankfully, before jumping in, I noticed that the email, which was indeed sent from no-reply@apple.com, came via an Indonesian domain. The link that asked me to restart my information pointed to a Thai website.

Anyways, that was a phishing scam, and one that almost hooked me. According to an Apple Discussion Board post, you can forward any phishing emails to reportphishing@apple.com and Apple will send back an automated response.

So, keep an eye out. Drop a line in the comments if you've run into any similar scams.

Warning: The OS X Mavericks phishing scams have already begun | Macworld (http://www.macworld.com/article/2056712/warning-the-os-x-mavericks-phishing-scams-have-already-begun.html)

6217

ribshaw

10-23-2013, 09:57 AM

Michigan State University police detectives are investigating an attempted theft of MSU employee direct-deposit payroll earnings related to a sophisticated online “phishing” attempt, a spokeswoman said Monday.

The scamming incidents were reported Friday by two employees, but it was unclear Monday whether either of them suffered any financial loss or if other employees were targeted, according to MSU police Sgt. Florene McGlothian-Taylor.

The employees reported receiving e-mail confirmation of changes in their direct-deposit accounts, according to a police department statement. Valid credentials, including user name and password, were used by an unknown person to modify the employees’ banking information in the university payroll system.

As a precaution, electronic banking systems were taken offline late Friday, the statement said.

MSU police said anyone who suspects their banking information has been comprised can call (517) 355-2222 to report the information.

“It’s important for people to be vigilant and be certain not to click on any suspect links” when they are on the Internet or using e-mail, McGlothian-Taylor said.

http://www.lansingstatejournal.com/article/20131021/NEWS01/310210027/

ribshaw

10-23-2013, 10:06 AM

Once it hits the news, beware of the scams to follow.

700% return on investment? Venezuelan currency scam pays off

CARACAS, Venezuela — Manuela Diaz has been waiting months to visit her daughter who is studying in the United States.

Diaz has her passport, a valid U.S. visa, and money for the trip. But she can't get an airline ticket.

''All flights are booked through early February,'' says Diaz, 53, whose daughter is attending school in Pennsylvania. "My travel agent even tried routing me through Colombia or Costa Rica or Panama. And there still wasn't anything."

The reason flights are booked is because enterprising Venezuelans are taking up the seats to exploit a loophole in foreign exchange controls that allows them to reap huge profits by exchanging their bolivars for U.S. dollars abroad.

International flights from the South American country have been full for months as thousands of Venezuelans called "currency tourists" book all available seats to take advantage of a mushrooming black market trade in their own currency.

With the value of the Venezuelan currency, the bolivar, dropping in value, demand for stable currencies like the U.S. dollar is high. But Venezuela does not allow people to change their money for dollars except under strict circumstances, one of which is to obtain money to spend overseas.

Venezuelans who possess an international airline ticket can exchange their bolivars for dollars through the Venezuela foreign exchange agency at the state-set rate of 6.3 bolivars per dollar. One can get up to $3,000 in U.S. dollars this way.

The dollars are credited to travelers' credit cards and when abroad, the travelers withdraw the money via a cash advance. With the cash in hand, travelers return to Venezuela where they sell the dollars on the black market for 45 bolivars to the dollar, a much higher rate they what they paid for the dollars before they left.

So, a Venezuelan who gets $3,000 for his 18,900 bolivars can sell the U.S. currency then for 135,000 bolivars, a 700% return on investment. It's still a good deal even if the airline charges a typical 25,000 bolivars for flights to the USA or Europe when one is coming from a country where the monthly minimum wage is 2,700 bolivars.

"It's easy money, and a profitable way to supplement your income,'' says Luis Molino, a 35-year-old dentist, who went to Peru to do the el raspao, or scrape, as it is called.

Many Venezuelans don't even leave the country to take advantage of the scam. They give their credit cards to family members or friends who travel and do the el raspao for them.

"A lot of travelers don't even bother to fly once they have their cards credited with the dollars,'' says Mildred Amaro, who runs Barquero Tours in the central industrial city of La Victoria.

Popular destinations for the swipe are Peru, Ecuador, Panama, the U.S. and Spain, she said.

Venezuela's black market rate has soared in the last year amid political and economic woes brought on in part by socialists policies of deceased president Hugo Chávez. Today's black market rate of 45 compares with a rate of 12 just one year ago before Venezuelan President Nicolas Maduro took over in April.

A weak bolivar and a loss of international reserves has reduced imports and boosted inflation in country that imports 70% of its own food. People are dealing with chronic shortages of milk, toilet paper and cooking oil.

To combat el raspao, the government has been checking travelers at the country's airports against flight manifests before clearing the credit cards for overseas use. The government also plans to install fingerprint machines to crack down on currency travelers.

Few Venezuelans appear chastened by the government crackdown.

"The government created this mess by their mismanagement of the economy," says Molino. "I'm just taking advantage of their ineptitude.''

700% return on investment? Venezuelan currency scam pays off (http://www.usatoday.com/story/news/world/2013/10/21/venezuela-flights/3012803/)

ribshaw

10-23-2013, 10:09 AM

Scammers targeting your retirement funds
Self-directed IRAs are becoming a risky business

By Robert Powell, MarketWatch

At a time when it’s almost impossible to earn much interest on bonds, and equities seem too risky, some retirement savers are investing their individual retirement account in nontraditional investments. But beware of schemes that threaten your retirement, particularly self-directed IRAs.

The North American Securities Administrators Association (NASAA) reports that scam artists pitching self-directed IRAs is now among the top 10 threats facing investors today.

To be sure, self-directed IRAs can be a safe way to invest retirement funds, NASAA said in release. But investors should be mindful of potential fraudulent schemes when considering a self-directed IRA.

By way of background, a self-directed IRA is “an IRA held by a trustee or custodian that permits investment in a broader set of assets than is permitted by most IRA custodians,” according to the SEC. “Most IRA custodians are banks and broker-dealers that limit holdings in IRA accounts to firm-approved stocks, bonds, mutual funds, and CDs. Custodians and trustees for self-directed IRAs, however, may allow investors to invest retirement funds in other types of assets such as real estate, promissory notes, tax lien certificates, and private placement securities.” Read Investor Alert: Self-Directed

These sorts of investments are not inherently bad, but NASAA, SEC and others warn that such investments have unique risks, such as lack of disclosure and liquidity, that must be considered.

What’s more, NASAA is warning investors “fraud promoters pushing a Ponzi scheme or other investment fraud can misrepresent the responsibilities of self-directed IRA custodians in order to deceive investors into believing that their investments are legitimate or protected against losses.”

For the record, custodians and trustees of self-directed IRAs may have limited duties to investors, and generally will not evaluate the quality, value or legitimacy of an investment or its promoters, NASAA said in its release.

“While a scam artist may suggest that self-directed IRA custodians analyze and validate investments, those custodians only hold the assets in a self-directed IRA and generally do not evaluate the quality, value or legitimacy of any investment,” NASAA said.

In some cases, NASAA said fraud promoters convince investors to move assets from an existing self-directed or traditional IRA into a fake self-directed IRA held by a supposed custodian created and owned by the scam artist.

And, fraudsters also exploit the tax-deferred characteristics of self-directed IRAs, and know that the financial penalty for early withdrawal may cause investors to be more passive or to keep funds in a fraudulent scheme longer than those who invest through other means, NASAA said.

Meanwhile, IRA experts say there is plenty that investors who want to use self-directed IRAs can do to avoid dealing with scam artists.

What are your goals?

The first item on your punch list when thinking about self-directed IRA is this: Does the investment fit in with your overall plan? “Be sure your IRA investment is consistent with your investment goals, risk tolerances and experiences,” said James Jones, founder and CEO of the Self-Directed IRA Investment Institute and vice president of business development for Kingdom Trust Co.

Jeremy Rettick, an investment adviser representative of BCM and the chief marketing officer of Covenant Reliance Producers, says it’s essential that the investment fits in with your risk profile. “As the old saying goes, ‘Don’t put all your eggs in one basket,’” said Rettick. “If you decide that a self-directed IRA is the right option for you consider only placing a portion of you total retirement dollars within the plan. As always consider how much risk you are taking on and if it is in line with your overall risk tolerance.”

Invest your time before investing your money

Next, you have to invest your time vetting everything and anything having to do with your self-directed IRA—the investment, the adviser and the custodian—before you invest your money.

Consider first what Rettick calls the “Warren Rule.”

“As Warren Buffett said, ‘Never invest in a business you can’t understand,’” said Rettick. “This philosophy has worked well for Mr. Buffet and could pay dividends to the investor. There are many nontypical investments available within self-directed IRAs. Bottom line he investor needs to understand what they are investing in.”

Jones holds that same point of view. “The most important advice I give daily for investors of self-directed IRAs is: You should know your alternative asset class and more specifically the actual investment better than your financial planner knows stocks, bonds and mutual funds.”

Whether it is real estate, private equity or debt, crowdfunding, precious metals and the like, Jones said “you should already be investing in these categories with good knowledge, experience, networks and advisers.”

And Rob Spalding, the founder and senior adviser with Alternative Solutions Group, noted the following: “Investors should always be vigilant about any investment they make, whether with mutual fund fees or due diligence on a private investment offer involving a self-directed IRA. Ultimately, investors need to be mindful of the investments they make inside or outside of self-directed IRAs.”

Rettick said investors also need to be mindful of the following:

Liquidity: Find out how liquid the investments are. Do you have to keep money invested for a certain period to avoid any early withdraw penalty?

Investment values: Ask how the value of your investments will be calculated on your statements. Custodians may list the value as reported to them by the promoter but the price may not accurately reflect the price at which the investment could be sold.

“Guaranteed” returns: Is the investment FDIC-insured? If not, what is guaranteed and how is it guaranteed?

Fees/commissions: They must share commissions, fees and loads that may apply. Make sure you know what you are paying and if the amount is competitive.

Tax consequences: Talk to an accountant to understand fully the limitations within the plan. The IRS has numerous prohibited transactions that could disqualify the IRA’s tax deferred status forcing you to pay income taxes on the full value of the IRA.

Jones also recommends asking a trusted professional, such as your accountant, lawyer or ﬁnancial adviser, for a second opinion about the proposed self-directed IRA investment by having them review of the investment offering or subscription agreement.

Know your custodian

Besides knowing your investment, it’s imperative that you get to know your custodian and the people behind the investment. “Remember, you are now the investor and adviser,” said Jones. “Due your own extensive due diligence to start, not only the investment offering, but the company and its officers even though you likely know them. You should only invest in asset classes you know, with people that you know. You should never invest with strangers.”

Rettick also recommends you make sure your funds will be held by a credible independent trustee/custodian. “Typically you can talk to your bank, credit union or a well-known custodian,” he said. “If the promoter holds the funds directly that is a huge red flag.”

The trustee/custodian isn't required to conduct due diligence with respect to the quality or suitability of the investment, but they should have in place fraud detection measures. “Ask your IRA custodian what fraud detection measures they have in place, such as checking the company’s good standing with regulators and authorities in the state they do business,” said Jones.

What’s more, Jones noted that neither your IRA custodian nor any governmental agency endorses or guarantees non-FDIC insured investments. “While an IRA custodian can educate investors on alternative asset classes, they can never advise, direct or steer them to an investment,” said Jones. “If an investment sponsor is promoting self-directed IRAs, check with that IRA custodian to see if they in fact have a relationship.”

Additional resources for investors who want to vet their custodians for self-directed IRAs can be found at the Retirement Industry Trust Association (RITA). RITA, according to Spalding, is a trade association for custodians that aims to enhance industry best practices and fight investor fraud.

Work with experienced professionals

The self-directed IRA business has been around for a while, but it’s growing rapidly and there are plenty of newcomers to the business. That’s why Spalding recommends that you work only licensed and regulated advisers.

“Beyond healthy skepticism, self-investigation and asking the investment sponsor for substantial due diligence items, investors should consider working with a licensed financial advisers, especially registered investment advisers or RIAs, who have experience with financial due diligence and alternative investments,” Spalding said. RIAs are generally regulated by the SEC or their state securities division.

Few would argue with the need to vet advisers pitching self-directed IRAs. “They should be properly licensed to sell securities in their state,” said Rettick.

At a minimum, the SEC suggests that you make sure your brokers, investment advisers, and investment adviser representatives have not had disciplinary problems or been in trouble with regulators or other investors before you invest or pay for any investment advice. Read Protect Your Money: Check Out Brokers and Investment Advisers. Other resources include the SEC, NASAA, and the Financial Industry Regulatory Authority.

Watch for red flags

Jones also suggests looking out for fraud red ﬂags including but not limited to an unknown solicitation coming to you, guaranteed investment returns, high pressure sales techniques, short investment decision time lines requiring immediate action to complete the transaction, and too-good-to-be-true statements. “Scam artists know investors decide too often on emotional decisions and not careful analysis,” said Jones. “Be prepared to walk away from every deal, and trust your gut.”

Additionally, with the pending Federal JOBS Act legislation and the formalization of real equity-based crowdfunding, Spalding said the need for investors to be watchful of their investments is only going to intensify.

After you invest

After you’ve opened a self-directed IRA, Jones recommends that you carefully review each account statement and follow up with questions to the investment sponsor if you do not understand it or something doesn't make sense or seems suspicious. “Review these statements with your advisers and never alone,” he said.

Remember too that the IRA custodian maintains your account and forwards account information to you but it is not responsible for any proﬁts or losses on your investments, said Jones.

And, if ever you suspect some suspicious activity related to the investments in your self-directed IRA, Jones says you should report it to your IRA custodian as well as state and federal authorities.

Robert Powell is editor of Retirement Weekly, published by MarketWatch. Follow his tweets at RJPIII. Got questions about retirement? Get answers. Email RetirementWeekly@gmail.com.

Robert Powell is a MarketWatch Retirement columnist. He has been a journalist covering personal finance issues for more than 20 years. Follow him on Twitter @RJPIII.

Scammers targeting your retirement funds - Robert Powell - MarketWatch (http://www.marketwatch.com/story/scammers-targeting-your-retirement-funds-2013-10-23?pagenumber=2)

ribshaw

10-24-2013, 09:30 AM

Police investigate local 'pigeon drop' scam
Posted: October 23, 2013 - 5:03pm
By Mollie Bryant
mollie.bryant@amarillo.com

The Amarillo Police Department said it is investigating a “pigeon drop” scam, where a victim turns over money to a scammer, that started Wednesday near the Walgreen’s at Hillside Road and Bell Street.

About 1:45 p.m. in the parking lot, two men told another they were returning to their home in South Africa and had $50,000 they couldn’t take back with them, police said.

The suspects told him that they were “giving money to the poor,” and if he withdrew money from his bank to prove they could trust him, they would give him the money, police said. The victim drew an undisclosed sum of money from a bank near Civic Circle and Georgia Street, police said, and gave it to the men. The suspects left without giving him $50,000.

The suspects were wearing white shirts and one wore a tie, police said. They may have been driving a white minivan, police said.

Police also received an unconfirmed report of two men matching the same description attempting this scam later in the day at the Walmart at Interstate 27 and Georgia Street.

Pigeon drop scams tend to target older people, and may use a second or third person who appears not to know the individual with the money to better convince the victim, police said. After the victim delivers the money, police said, the suspect typically exchanges it for a package that doesn’t contain money that they may have shown earlier in their interaction.

No arrests have been made. Police ask anyone with information on this incident to call APD or Amarillo Crime Stoppers at 806-374-4400.

Police investigate local 'pigeon drop' scam | Amarillo Globe-News (http://amarillo.com/news/local-news/2013-10-23/police-investigate-local-pigeon-drop-scam)

========================================

Variations
The variations of this scam usually illustrate the psychology used to get the victim to take part. These can include:-

The con artist "finds" money with the victim. The money is lodge with a lawyer who says he will keep it for six weeks. If no one claims it, the money is theirs. The victim pays part of the lawyers fee or a 'good will bond.' The con artist and lawyer are in cahoots and keep the money
The con artist offers to give the money to the victim to use for charitable works. The victim must show they have their own money and will steal the money. The con artist wraps the victim's money AND the large sum of money in a hankie for safekeeping. He then switches the hankies.
In the film The Sting, the con artist is 'mugged' and asks the victim to deliver a large sum of cash in a wallet. To avoid the victim also being mugged, he suggests that the victim wraps both his wallet and the victim’s wallet in a handkerchief. Whilst demonstrating how to do this, he swaps the handkerchief of cash for an identical one filled with paper.
The con artist offers to perform a currency exchange at a good rate. The transaction is broken up by police or officials who give the victim back his money, folded up. Since American currency looks the same when folded up, the con artists can swap a $1 note for $100. Often referred to as Origami switch.

http://scams.wikispaces.com/The+Pigeon+Drop

ribshaw

10-25-2013, 09:21 AM

Dept. of Transportation emails and ‘free’ samples not what they seem, BBB warns
Latest News

Thursday, October 24, 2013 - 6:35 am

This is a consumer advice column written by the Better Business Bureau of Northern Indiana. It appears Thursdays in Business.

The BBB issued the following alerts:

•If your business is receiving notices from the Department of Transportation by email, be forewarned that the DOT does not send emails. The below two notices were brought to our attention by a local business owner who had recently renewed her registration by mail. She does this on a semi-annual basis. These emails were particularly alarming to her because of the mention of an $1,100 and a deactivation of her USDOT number and applicable fees. She had checked with the DOT, and it does not send these emails or charge any kind of fee for renewal or tardiness.

•Accepting a free sample does not seem like a cause for concern. However, when a company randomly calls you out of the blue and wants to “confirm your address” to send free samples, think twice!

What if they really don't want to send you samples but instead an invoice? No big deal, you just refuse the invoice, right?

Well, what if new office personnel sign the invoice, not knowing that the merchandise wasn't ordered?

This could be a problem, which is why it is very important to not readily accept free merchandise from vendors.

BBB received a call from someone wanting to confirm our information so that they could send us free samples. Don't fall for it!

Before providing an address, check out a company's reputation with BBB and see if it has had complaints, especially ones pertaining to billing or high-pressure sales.

Does the company have a good rating?

Does it respond to complaints?

Be very scrupulous about training your employees on how to handle gifts and/or solicitations.

Inform them of worst-case scenarios and what the outcome could be of making a bad, uninformed decision.

•Real estate offices and agents are being warned of a phishing scam that targets them.

The messages are fake Better Business Bureau emails that claim the company is being investigated and threaten legal action if the receiver does not respond with more information.

However, links in the emails lead to websites that ask for detailed financial information. Some of the emails contain attachments that may include viruses or other malware.

“Better Business Bureau is frequently spoofed by scammers and other criminals, because we are a trusted source and the recipients are more likely to open the emails if they have the familiar BBB name and logo,” said Carrie A. Hurt, president and CEO of the Council of Better Business Bureaus, in a news release.

“We have a vigorous program to detect these phishing campaigns as soon as they start, and we have been successful in shutting down more than 175 fraudulent websites in the past 18 months.”

“We are taking an extra step this time to warn real estate agents and offices, because we haven't previously seen one specific industry targeted like this,” Hurt said in the release.

The fraudulent emails have been sent to real estate offices across the United States.

CBBB is working with a professional deactivation service to have the fraudulent websites taken out of service, an action that normally takes less than a day and sometimes is as quick as one or two hours.

BBB has taken numerous steps to assure the security of its official email. All 113 BBBs across the U.S. and Canada, as well as the headquarters offices in Arlington, Va., and New York City, use multiple authentication protocols (SPF, DKIM and DMARC).

This allows BBB to alert Internet service providers immediately to reject emails that don't carry the proper authentication. About half of all ISPs honor BBB's reject requests.

Dept. of Transportation emails and ‘free’ samples not what they seem, BBB warns - News-Sentinel.com (http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20131024/BUSINESS/310249992/1010/ARTSMUSIC)

ribshaw

10-25-2013, 09:40 AM

A New Jersey woman was charged with defrauding investors in the U.S. and China of $10 million by falsely claiming she ran a textile wholesale distributor that had been awarded a $156.6 million contract by New York City.

Sara Rong Liu, 52, was charged with wire fraud and arrested today at her home in Mahwah, according to a statement by U.S. Attorney Paul Fishman. Liu, a naturalized U.S. citizen, is scheduled to appear today in federal court in Newark, New Jersey. She faces as many as 20 years in prison.

Liu is president of Westone Inc., a company in Hackensack, New Jersey, “purportedly involved in the wholesale distribution of textiles as well as interior design,” according to Fishman’s statement. For three years until October 2013, she falsely told investors that Westone had a contract with the New York City Department of Design and Construction, Fishman said.

Liu created phony documents purportedly from the DDC and other government agencies to solicit “short-term loans” from investors, according to a Federal Bureau Investigation arrest complaint. She said they “would be repaid immediately upon the release of the first contract payment of $52.2 million from the NYC DDC,” the FBI said. “All of those statements were false.”

In a separate scheme, Liu said she sought $17 million from a dead uncle’s estate in China, according to the FBI. She said she first needed to raise money to pay estate taxes, and she would then share the inheritance, the FBI said.

The case is U.S. v. Liu, 13-mj-04185, U.S. District Court, District of New Jersey (Newark).

To contact the reporter on this story: David Voreacos in federal court in Newark, New Jersey, at dvoreacos@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

New Jersey Woman Charged in $10 Million Investment Scam - Bloomberg (http://www.bloomberg.com/news/2013-10-24/new-jersey-woman-charged-by-u-s-in-10-million-investment-scam.html)

ribshaw

10-25-2013, 09:42 AM

Lexington man charged in precious metals investment scam

Posted: Thursday, October 24, 2013 11:24 am

Michael Hewlett/Winston-Salem Journal

A Lexington man has been charged with 27 felony counts related to an alleged precious metals scam in which authorities say he deceived multiple people from around the country into sending him money.

Investigators with the N.C. Secretary of State allege that Rondell Scott Hendrick, 48, fraudulently claimed that he would use money that people sent him to buy gold overseas and then re-sell that gold for large profits within a matter of days.

Authorities say that Hendrick used Craigslist, saying that people would be repaid up to triple their investment, according to a news release.

Hendrick was not registered to sell financial securities during the alleged incidents and his company was shown not to be in good standing on the Secretary of State website, the news release said.

The charges against Hendrick include 10 counts of securities fraud, five counts of obtaining property by false pretense, five counts of securities dealer registration violation, five counts of security registration violation and two counts of a violation of a cease and desist order.

The Lexington Police Department assisted in the investigation. Hendrick is in the Davidson County Jail on a $150,000 secured bond.

mhewlett@wsjournal.com

Lexington man charged in precious metals investment scam - Winston-Salem Journal: Local News (http://www.journalnow.com/news/local/article_55235a1e-3cc0-11e3-8419-001a4bcf6878.html)

ribshaw

10-30-2013, 10:18 AM

Cybercriminals launder money using in-game currencies
Technology
21 October 13 by Olivia Solon

Cybercriminals are increasingly using online gaming and micro-payments to launder money, according to a report by security researcher Jean-Loup Richet.

Richet -- who is Information Systems Service Manager at Orange and Research Associate at ESSEC Business School -- analysed forums to identify how people were moving their money around online through anonymous transactions.

"Millions of transactions take place over the internet each day, and criminal organisations are taking advantage of this fact to launder illegally acquired funds through covert, anonymous online transactions," Richet explains in his paper. "The more robust and complex the various online marketplaces become the more untraceable methods criminals are finding to pass 'dirty' money into online accounts and pull 'clean' money out of others."

Richet said that we "all know" the oldest physical placement methods of money launderers, including cash smuggling, casinos and other gambling venues, insurance policies and shell corporations, but that a number of new web-based systems are emerging.

Richet observed large online hacker forums and communities looking for keywords related to payment solutions and black markets.

He found that online role playing games provide "an easy way for criminals to launder money". This tends to involve opening numerous different accounts on various online games -- such as Second Life and World of Warcraft -- to move money. These games use credits that players can exchange for real money. By using the virtual currency systems, criminals can send virtual money to associates in another country, which can then be transferred into real money.

A second growth area is "micro-laundering" via sites like PayPal or using job advertising sites. Micro-launching involves moving a large amount of money in small amounts through thousands of electronic transactions. One way of doing this is using mobile banking systems such as MPesa, Kenya's mobile wallet, which allows you to send money from prepaid mobile cards to criminal partners that will convert the credit into cash anonymously.

Similarly online job marketplaces with escrow services (money is paid to the platform before being paid out to the person who completes the freelance job) such as Freelancer.com and Fiverr can be used to conceal money via a money mule system. Users can create an account and post a job request asking for a service that would cost the amount of money they need to clean up. They can then sign up on the same freelancing site using a different IP address and bid on their own job offer. The first account can then select the second account to carry out the invented job, and can inform the job marketplace to release the funds to the second account.

Richet also flagged up some more "traditional" ways of laundering money online. These include using Costa-Rica-based digital currency service Liberty Reserve to transfer money anonymously. Liberty Reserve was seized by the US authorities in May for laundering $6 billion.

The research also makes reference to money mule scams, a slight variation on the rich Nigerian benefactor scam. It involves someone asking you to help them transfer money to your country. For your help you will receive a percentage of the transfer. Instead of trying to steal your money, they might try and transfer large sums of money stolen from other accounts to you. You'll then have to send the money to an alias account of theirs in exchange for a cut. You will then be held responsible for the laundering.

More than $7 billion (£4.3 billion) is laundered every year through Colombian corporations from Mexican and Colombian drug cartels through the Black Market Peso Exchange or BMPE. This is a covert system of banking that lets drug dealers exchange American dollars for pesos. These dollars are then bought by Colombian businessmen and used to buy American goods which are then sold back in Colombia. This traditional crime is enhanced with web technologies, through online black marketplaces and cryptocurrencies.

"As we spend more time and money online, opportunities for criminals to involve us in their money laundering scams will only continue to grow. This will create an increasingly difficult situation for the various law enforcement agencies that are already being put to the test by the cunning of such criminals and the myriad untraceable means they have discovered to launder illegally obtained money," concludes Richet.

Cybercriminals launder money using in-game currencies (Wired UK) (http://www.wired.co.uk/news/archive/2013-10/21/money-laundering-online)

ribshaw

10-31-2013, 09:11 AM

PORTLAND, Ore. – Barbara Bachmeier already has two roommates at her new house in Southwest Portland.

Her two parrots, Andy and Zoe. But they have one major drawback.

“They don’t pay,” said Bachmeier.

So she put an ad on Craigslist offering up her two extra bedrooms. She hoped to find a student going to Lewis and Clark College, which is only a mile from her house.

“A very lovely-sounding young woman from Scotland responded. Her name is Debbie,” said Bachmeier.

Debbie is a graduate student moving to Portland. Her father sent Bachmeier a check for more than $3,000 to help pay for Debbie’s car, which was being shipped to the U.S.

“I would cash the check immediately, then immediately also withdraw something like $2,700 and send that to a car broker in Prescott, Arizona,” Bachmeier said.

But Bachmeier spent 20 years in the Army, in military intelligence. She checks, double-checks, investigates and verifies.

“And there was no person by the name she sent me doing car business in Prescott, Arizona.”

The envelope came, not from Scotland, but from a school in Texas. The check came from a university in Miami.

Bachmeier labeled this one a scam. Plus, the one that came right after Debbie.

“It was pretty much the same language, but this time it was Stephanie from South Africa,” she said.

For now, Andy and Zoe still rule the roost at Bachmeier’s house, until she can find real renters. She wants everyone to understand that checking the facts is not just a job for military intelligence, but for anyone putting their ad on Craigslist.

Bachmeier suggests making people fill out an application that includes former landlord contact information and references. She also recommends checking social media for clues about your potential renters.

“People shouldn’t think they’re being honest or untrusting. It’s the right thing to do.”

Local woman warns of rental scam after online ad | Local & Regional | KATU.com - Portland News, Sports, Traffic Weather and Breaking News - Portland, Oregon (http://www.katu.com/news/local/Online-Craigslist-rental-scam-229452991.html)

littleroundman

10-31-2013, 09:16 AM

Punters being horsed around by scammers

PUNTERS are being duped by a scammers' trick this Melbourne Cup racing carnival, signing up for bogus betting schemes and watching their money disappear.
Warnings are being issued to unwary Australians receiving out-of-the-blue invitations to join fake betting syndicates and buy betting software.

The Australian Competition and Consumer Commission (ACCC) says scammers are luring punters into "legitimate investments" using falsified graphs and forecasts on brochures or websites.

ACCC deputy chair Delia Rickard said if consumers signed up for betting schemes, the odds are they would never see their money again.

"Almost $3 million has been reported lost to sports betting scams this year, with the ACCC receiving over 800 complaints," Ms Rickard said.

"Unfortunately, these figures are likely to rise as the spring racing carnival approaches and punters are more willing to try their luck."

Scammers are also peddling betting software - costing between $1000 and $15,000 - which they say can accurately predict race results.

"Before handing over your money, ask yourself, if someone can accurately predict gambling results, why would they need to sell it you to make money?"

ribshaw

10-31-2013, 09:16 AM

HOUSTON (FOX 26) -

66 year old Jeannie Baker Lee never thought she'd be sitting telling her story.

Lee says, "I've seen these things on TV before where old people get snookered by some con man or some woman gets married to some jerk who sucks all of her money out of her accounts."

But Lee didn't marry some jerk who drained her dry. The former mortgage underwriter in the real estate industry fell for an investment scheme.

According to court records Ron Lawrence Hamilton claimed he was putting Lee's $110,000 in a new trade platform...A platform that guaranteed she would never lose her money.

"I started to say how is the trade going where is the money what's going on and I got all these stalls and these reasons why not," says Lee.

Finally, after waiting months Lee called in the Harris County Financial crimes unit and they arrested Hamilton.

However, investigators told her Hamilton began spending her money the moment he received it on personal expenses.

Lee says, "Detective Lindsey Williams found a Facebook with Ron Hamilton and the parties looked like Jay Z parties."

In the end Hamilton is facing some serious time behind bars if he's convicted. Meanwhile, Lee says she's lost everything she worked so hard to get including her home.

"I really would like to punish them a little bit but what do you do you would like to get your money back so you can get back to where you were before," says Lee.

Read more: Woman lost 100K after investment scam - Houston weather, traffic, news | FOX 26 | MyFoxHouston (http://www.myfoxhouston.com/story/23834946/2013/10/30/woman-lost-100k-after-investmnet-scam#ixzz2jJDwQfOF)

ribshaw

10-31-2013, 09:21 AM

According to the BBC, Thames Valley Police said that 200 people had lost £3m after investing in wine that didn’t exist through the Milton Keynes-based company.

A 47-year-old man, a 22-year-old man and a 23-year-old woman were arrested in Essex this week on suspicion of fraud and money laundering.

“The company set up a scheme whereby the wine was being imported from France en primeur, which meant people invested in it before it had been bottled,” detective sergeant Duncan Wynn told the BBC.

“It meant people would have had a long wait before they realised their investment.

“In that time the money was shipped out of the country and the suspects left the premises, which meant we were always playing catch-up with the suspects,” he added.

Set up in March 2007, the company rented space in an office block in Milton Keynes and took out adverts in The Telegraph to give the appearance of propriety.

Recruiting customers from across the UK, many victims of the scam were retired and had been persuaded to invest up to £100,000 from their pension funds, the BBC reports.

Officers are currently trying to trace the money Worldwide Wine Investments made in profits.

“We’re looking to recover any assets or money under the Proceeds of Crime, because we’d like to restore that back to the victims,” Wynn said.

Three arrested in wine investment scam (http://www.thedrinksbusiness.com/2013/10/three-arrested-in-wine-investment-scam/)

ribshaw

10-31-2013, 09:33 AM

MoneyWatch) Credit card fraud, particularly "card-not-present" fraud where the crook uses stolen data to buy things over the phone or via the web, is soaring, according to FICO, the credit-scoring giant that also runs fraud prevention programs for banks.

Overall credit card fraud incidents jumped 17 percent between January 2011 and September 2012, according to FICO. But card-not-present fraud rose 25 percent in that nine-month stretch.

Consumers are generally held liable for no more than $50 in fraudulent transactions, and most banks won't hold you liable for a fraudulent charge if it's reported promptly. But if a fraudulent transaction gets past your bank, you've got to spot it to get it reversed. Consumers would be wise to employ a few simple measures to protect themselves to prevent getting ripped off.

Check your statements. It takes just a few minutes to look over your credit card charges each month. If there's a charge you don't recognize, call your credit card company and ask what it is. It may be a corporate name for a company you regularly do business with. If so, you're likely to remember that and not waste your time calling again. But if the representative identifies the company and you still don't recognize the charge, the same person can tell you how to dispute the charge and potentially have it reversed.

Password-protect your phone. Consumers do a lot of things to save time, including saving passwords and authorizing automatic sign-ins at third-party sites like Facebook, email, and often bank and brokerage accounts. If you're among the growing number of people who bank by phone, this time-saving device can make you vulnerable to having your bank account cleaned out by an enterprising crook. Since phones are commonly forgotten in cabs, left unwatched on counters and desks while charging, and, of course, frequently stolen, make sure your phone (and iPad and office computer) is password- or fingerprint-protected so your accounts can't be easily purloined by a crook.

Vary passwords. Think you are safe from bank fraud because you don't bank by phone? If you use the same passwords for your email, Facebook, Twitter and other accounts as you do for your bank accounts -- or if you provide hints to your passwords by posting too much information on social media sites -- you make yourself almost as vulnerable as the person who leaves an unprotected phone lying around. Make sure that your financial accounts don't use the same passwords as your social media accounts. And watch what you share publicly.

Install security software. If you don't have security software on your computer, a visit to a malicious site could allow criminals to watch every move you make, including logging your every keystroke when you enter passwords for your bank and credit card accounts. If you use your phone to go to financial sites, the phone needs security software, too.

Beware "spear phishing." The latest criminal trend is to take personal information that you share on Facebook, Instagram or Twitter and use it to "spear-phish." This refers to crooks who send a personalized contact via email or social media that urges you to sign-in or click on a link to a malicious site. Naturally, if you bite you've just given the crook keys to your financial life. Because spear-phishers use your name and other personal data to make the contact appear more credible, it's easy to be fooled.

The simple advice is to never click on a link that you don't recognize, and certainly never "sign in" to any account from a link sent to you via email or social media. If you think the contact might be legitimate, go to the relevant site and sign in.

Meanwhile, if the link is attempting to take you to a malicious site, your security software should warn you before you get there. Don't be fooled into overriding that warning. If you think a friend sent a link to a funny site, message that friend independently and ask.

5 ways to deter credit card fraud - CBS News (http://www.cbsnews.com/8301-505144_162-57607449/5-ways-to-deter-credit-card-fraud/)

ribshaw

11-02-2013, 02:00 PM

Will believe when I see it.

European Union agrees tougher jail sentences for cybercriminals
Technology
05 July 13 by Katie Collins

Perpetrators of cybercrime are to face tougher sentences under new rules agreed by European politicians.

Cybercriminals who harm critical national infrastructure by targeting power plants, public transportation and government servers will suffer particularly harshly under the new rules. Those found guilty will face minimum sentences of five years, which is higher than the tariffs currently imposed by most member states.

Hackers who take over computers to obtain sensitive information will face sentences of at least two years and those found guilty of running botnets will face three years. Botnets are often made up of millions of hacked PCs and are a popular way for cybercriminals to send spam, attack websites or steal data to then sell on.

In July 2012, security researchers shut down the world's third biggest botnet, which was responsible for 18 billion emails every day and 17.4 percent of global spam traffic. In February 2013 Microsoft and Symantec shut down another massive botnet, estimated to be netting its operators $1 million (£640,000) a year by redirecting unsuspecting computer users to websites they didn't intend to go.

The stricter sentences extend to those who produce and sell tools to illegally intercept communications, and companies who benefit from botnets or employ hackers to commit offences on their behalf. In addition, the terms of directive require member states to offer aid to any other state that has suffered a significant cyberattack within eight hours.

Cybercrime penalties have until now varied wildly throughout the 28 EU member states, but the new rules will standardise sentences. Only Denmark has chosen to opt out, and as soon as the directive is formally adopted, all other member states will have two years to translate the decision into national law. The European Parliament adopted the draft directive on 4 July, voting 541 to 91 with nine abstentions on the proposal by the European Commission.

European Union agrees tougher jail sentences for cybercriminals (Wired UK) (http://www.wired.co.uk/news/archive/2013-07/05/eu-cybercrime-penalties)

ribshaw

11-05-2013, 10:22 AM

As with anything else there are numerous variations of scams surrounding pets. My suggestion visit a rescue or shelter in person to select a pet. Don't pay shipping, vet fees, adoption fees, etc until you have the pet in your possession.

Additionally, it is not uncommon for pure bred pets to be stolen or "claimed" from the lost and found and then listed for sale on Craigs List or similar. One way to combat this is to ask to see pictures of the pet from the person who claims to be the owner.

Pet rescue fraud: More common than you may think
Eric Barton

"Rescue" dogs sold online may be coming from puppy mills. (BSIP/UIG via Getty Images)

A company called Paws, Claws and More once sold countless numbers of dogs online.

Operating out of the site of a former animal shelter in Wingo, Kentucky, owner Shannon Lacewell claimed to have rescued the animals. She said many came from puppy mills, the factory-style breeders that raise dogs in tiny cages and often sell sick and malnourished animals to pet shops for sale to the public.

Puppy farm adoptions

Dogs damaged by the conditions in their puppy farm are being put up for adoption.

But when the Graves County Sheriff’s Department raided the property on 14 February 2012, they found about one hundred dogs sharing small cages. Underfed and thirsty, many were sick. Others were dead and some corpses shared cages with live dogs. Lacewell, who couldn’t be reached for comment, faced 94 counts of animal cruelty.
Catching fake rescues
The difficult task of spotting puppy mills in disguise

Authorities rarely catch puppy mills posing as rescue organisations, but it does happen.

In 2009, the New York Attorney General investigated allegations that two upstate breeders were selling puppy mill dogs under the guise of a rescue organisation. One breeder, Maria LaRocca, admitted to buying dogs from one of the US’s most notorious large breeders.

LaRocca said her intention was to get dogs out of a bad place. “What’s the difference if I buy from puppy mills instead of them selling dogs at a pet store?” she said by phone. “I’m just... putting the dogs straight up for adoption.”

LaRocca and another breeder agreed to shutter their rescue organisations and the investigation was closed without charges.

In Seattle, Wendy Laymon, who ran a website for a company that claimed to be a non-profit pet rescue, was repeatedly fined for conditions in her own dog breeding facilities. This year she was charged and sentenced to 180 days in jail for operating a kennel without a license.

“It was a nasty mess,” recalled Detective Steve Halsell.

From Ireland to Oregon, large breeding operations are using online pet adoption sites — once almost purely the realm of dutiful charities saving animals from abusive homes — to peddle dogs. Many pretend to be rescue organisations, while others have actually formed legal charities to sell animals raised in factory-like facilities.

“Since the advent of the internet, people have been taking advantage of this,” said Tracy Coppola, campaigns officer at the International Fund for Animal Welfare’s (IFAW) office in Washington, DC. The problem has grown in recent years, however, as dog buyers stay away from factory-bred animals at puppy shops and turn to pet adoption sites, which they deem to be more legitimate and humane.

Animal welfare experts believe that nearly two-thirds of the dogs sold online come from puppy mills. No single organisation keeps track of just how much money is spent on animals found through adoption sites. But consumers, who regularly spend hundreds or thousands of dollars on specialty breeds of dogs, are unwittingly funding the fake rescues.

The problem is especially prevalent in the US and Ireland, home to many of the world’s puppy mills. It’s less prevalent, animal welfare experts say, in much of Europe and Australia, even though both of those continents are home to large-scale dog breeding facilities.

Just how profitable fake rescue organisations have become is unclear. In the US alone, people spent an estimated $53 billion on their pets last year — that includes everything from purchasing a dog to toys and food. Sites like adoptapet.com and petfinder.com list animals with adoption fees that that range into the thousands.

Last year, the IFAW set out to determine just how many dogs sold online come from puppy mills. The organisation spent months combing about 10,000 ads from nine websites. Of them, 62% of the dogs came from puppy mills. Many of those were being sold by breeders claiming to be rescues.

In Ireland, animal welfare workers hoped legislation passed in 2012 banning puppy mills would end the problem of factory dog farms. But government cutbacks lessened enforcement, and the mills are still breeding 90,000 dogs a year, half of them exported primarily to the UK and Europe.

Passing laws isn’t always enough to stop the problem, said Cori Menkin, senior director with the ASPCA’s puppy mills campaign in New York City. In Ohio, for instance, more factory dog farms are claiming to be rescue organisations in order to skirt an anti-puppy mill law that took effect in February.

Fake rescue groups like the one run by Lacewell in Kentucky have gone so far as to create nonprofits and collect donations — so it’s not always enough to see if a group is registered as a charity. One notorious puppy mill sought nonprofit status from the Irish government earlier this year but was rebuffed when animal activists stepped in, according to Kathrina Bentley, head of marketing for Dogs Trust in Dublin. Other puppy mills simply claim to be rescue groups on online sites without actually setting up a nonprofit.

“Unfortunately public awareness of conditions within puppy farms is low, and many pups are sold online to unsuspecting members of the public,” Bentley wrote in an email.

Before you get a puppy from an online rescue, here’s what you need to know to sort the real charitable groups from the puppy mills in disguise.

Site seen

For consumers, there’s no easy way to determine from an advertisement if a dog they’re buying from a rescue group is coming straight from a factory farm. The only solution is for buyers to insist on seeing the place where the dog was kept, said Melanie Kahn, senior director at the Humane Society’s Stop Puppy Mills Campaign in Washington, DC. Fake rescues often insist on shipping the dog to the buyer or meeting in a neutral location.

“Seeing where the dog lives is really the only way to assure you’re using a reputable organisation,” Kahn said.

Read the fine print

The ads from fake rescues employ careful language to avoid fraud. It’s accurate to claim the dogs have been taken out of puppy mills or even that they’ve been “saved” from deplorable conditions. The photos often show happy animals that may be seeing the outside of a cage for the first time.

“Anybody can put up pictures of puppies frolicking in grass, but it doesn’t mean that’s where they are being kept,” Menkin warned.

The bottom line: don’t be fooled by fancy advertisements or slick marketing.

Check the news

It pays to do an online search on the kennel, rescue group or breeder to make sure they haven’t been on the wrong side of a raid. Animal welfare groups have begun keeping databases of notorious breeders, and a quick search on Google could turn up photos of some deplorable conditions at your local “rescue.”

Also do an online search for the name of the person running the site from which you plan to adopt. You can also check with local law enforcement websites to search for criminal convictions in some jurisdictions.

Two months after the Kentucky kennel was raided, Lacewell agreed to plead guilty to 50 charges of animal cruelty. Under the deal, she agreed to own no more than one dog for the next two years. Lacewell served no jail time. And in April 2014, she can legally begin selling dogs again.

BBC - Capital - Pet rescue fraud: More common than you may think (http://www.bbc.com/capital/story/20131030-buyer-beware-pet-rescue-fraud)

6292

ribshaw

11-05-2013, 10:27 AM

I got this and the last story from my friend Anne who does lots of anti scam stuff, unlike a cut n paste hack like myself.

Nearly five years removed from the multi-billion dollar financial frauds perpetrated by Bernie Madoff and Allen Stanford, multi-million dollar “small-time” frauds are routinely exposed by enforcement agencies and regulators around the world. In fact, in response to Madoff, Stanford and many other frauds exposed during the financial crisis, enforcement activity was dialled up a notch.
But that hasn’t stopped us from getting rooked.
For example, a recent allegation by the US Securities and Exchange Commission claims that a financial adviser in Indiana bilked his clients out of millions, using their money to invest in “a bridal store, a bounty hunter reality television show and a soul food restaurant owned and operated by the bounty hunters.”
The allegation further claims that the adviser raided client accounts to spend on luxury cars, hotel stays and sporting events.

Investment fraud... is decidedly low-tech and often has very little to do with the regulations in place. — Dan Karson

And it’s not just small-time investors who still find themselves defrauded. Last year, AIJ Investment Advisors in Japan was exposed for misreporting balances to several pension funds. Similarly, an Iowa-based futures broker, primarily working with farmers looking to hedge production and sales, was exposed for siphoning millions from client accounts. The US legal system and SEC is more forthcoming with fraud details than other countries, like Australia and Canada, generally are.
Yes, financial fraud is still alive and well. No organization appears to track or even estimate global financial fraud perpetrated by financial advisers, but a lot of it looks, well, the same as it always has.
“Investment fraud perpetrated against individuals is decidedly low-tech and often has very little to do with the regulations in place,” said Daniel Karson, Chairman, Kroll, a global investigations firm. “Their tactics: charm and a convincing argument.”
While the biggest scams often hit high-net-worth individuals — that’s where the money is — the records show that fraudster target all races, nationalities, education levels and affinity groups. Save for somber documentaries and rare personal accounts, these other narratives — the true lessons in financial fraud — hardly bubble to the surface.
“In the majority of cases, a level of trust in the person who is selling or managing the investments has already been established, usually through a personal referral or a series of meetings,” said Jack Duval, chief executive officer of Accelerant, a securities litigation consulting firm, which has provided expert testimony in many cases alleging financial fraud. “Another common pattern is when the victims are those who only recently came into money through an inheritance, insurance proceeds, or settlement.”
Warning signs
Duval warns that pitches based on “exclusive opportunities” and “guaranteed returns” should be immediate warning signs. Other recent schemes have involved promissory notes — basically IOUs held in place of assets — and offshore investments, often held or managed outside of the client’s jurisdiction for tax purposes.
Of course, not every financial fraud is a Ponzi scheme — the tactic whereby a pitchman uses money from the next investor to pay off the previous investors. Frauds can also be based on errors of omission or significant misrepresentations of risk. These often arise in the purchase of derivative securities (futures, options, swaps and the like), non-listed real estate opportunities, oil and gas partnerships, even the receivables owed to medical offices and other businesses.
But an adviser or broker with discretion over trading in your investment account could also surprise you with over-active trading or using debt to buy on margin or borrowing stock to sell short to goose returns.
Buying on margin, for example, involves putting up cash and some amount of non-cash collateral (say, listed stocks or high-quality bonds) in order to buy more shares than you might otherwise afford. It’s not uncommon among professional securities traders, but it’s hardly appropriate for a conservative long-term investor.
“Most investors don’t understand a margin call until they are hit with one,” said Karson. In this scenario other securities are sold in order to post more collateral against a margined stock that has fallen in value. While the activity itself is not fraudulent, brokers and advisers have been hit with fraud cases (or arbitration) for representing to clients that their strategies were far less risky than they actually were.
In some cases of investors buying unlisted or private securities, obtuse legalese explaining worst-case scenarios and loss of principle is buried deep in the offering documents. An adviser who sells these securities to you without fully explaining the risks or his take in the offering could have different motivations than yours.
“Be sure to verify the manner in which your adviser is compensated: fees or commissions?” said Duval. “And ask, is he operating under a fiduciary standard, which binds him professionally to act in your best interest?"
Of course, even those who invest your assets with the best of intentions can make mistakes. Therefore, it is wise to be smart when you hire an adviser.
“If you are going to invest, do so with a branded or large firm,” said Karson. “You have a greater chance of being made whole in the case of a rogue trader or an unsuitable investment. If you opt to invest with an individual or small firm, the need for verification is much higher.”
Karson also said investors should always independently verify the account, the custodian, the valuation firm, the lawyer and anyone else providing services related to their investments.
Most of all: always be skeptical.
“If it sounds too good to be true, it probably is,” Karson said.

BBC - Capital - Financial fraud: The swindles that just won?t die (http://www.bbc.com/capital/story/20130903-investor-fraud-alive-and-well)

Anne Jackson's blog (http://annejackson4.blogspot.jp/)

ribshaw

11-06-2013, 10:47 AM

This takes you to a slide show of popular Instagram scams. I don't even know what Instagram is, so I suppose I am safe. Don't Fall for These 9 Instagram Scams (http://mashable.com/2013/11/06/instagram-scams/)

Some other useful tips.

1. Disembodied Links

Here are the types of emailed links that should make you especially wary:

links that are the only content in the body of an email

bit.ly or otherwise shortened links that don't display the actual address

hyperlinked text (for the same reason as shortened links — there's no indication of what you would be clicking)

When in doubt, don't click. But to help you out, browsers like Google Chrome can reveal a link's full address when you hover over it with your mouse cursor. For shortened links, you can use nifty link expanders like LongURL to view the real content before clicking.

2. Inordinate Number of Recipients

If you get an email with hundreds of email addresses in the recipient field, yet the message seems directed toward one person, your scam sense should be on high alert.

3. Vague, Generic or Nonexistent Subject Lines

Sure, you send emails without subjects to your friends all the time, but if an email pops up from an unrecognizable address with "(no subject)," be careful. The same goes for vague or generic subject lines, including "Fwd: private" or "Free to look!" If you have no idea what you're opening, it's probably best to leave it alone.

4. Intense Enthusiasm

Enthusiasm

WHEN IT COMES TO EMAIL SECURITY, CAPS LOCK CAN BE MORE THAN JUST ANNOYING — it can indicate spam. Overly enthusiastic emails with emphasis and exclamations (e.g. "I JUST LOST 45lbs W/ THE X-Fit fitness program!!1!!") are surefire signs that the information isn't what it seems.

5. Grammar and Spelling

You don't have to be a grammar nut to notice odd mistakes in scam emails. Look out for questionable syntax and major typos, especially if the email supposedly comes from a reputable company or bank.

Also watch out for scammers that purposely misspell things to avoid your spam filter, such as "V1agr@" instead of "Viagra." (Tip: You probably shouldn't be buying Viagra via email, anyway.)

6. Strange Requests

This one's easy: If someone is emailing you for medical assistance or writes, "Help me cheat on my husband," it's just not legit. That's what emergency contacts are for. And Snapchat.

7. Urgency

People don't typically use email to send urgent messages of an emergency nature. If you get an email that claims a situation is a matter of life or death (or a desperate person who needs money wired now), it's safe to assume the sender wouldn't be targeting you, a stranger, in the first place.

8. Sensitive Information Requests

Credit Card Online

Unfortunately, people accidentally send secure information to scammers more often than you would expect. This is how scammers (that is, smart scammers) operate — many ask for personal information (credit card numbers, passwords) and disguise emails to look official. Companies, schools, banks and other institutions won't ask you to transmit sensitive information in an email.

9. Name-Sender Disagreement

Scam email addresses often have different names to dupe the recipient. Check the address before assuming something is true — an email from Match.com wouldn't have the email address "contact@lightsaberduel.com" (true story).

10. Surefire Guarantees

You should know by now that nothing on the Internet is guaranteed. Promises to boost your sex life or quick money via working from home shouldn't be taken seriously. "Watch this video and women will adore you?" More like, "Click this link and regret it."

10 Red Flags You're About to Get Scammed (http://mashable.com/2013/03/20/email-scam-red-flags/)

ribshaw

11-09-2013, 12:27 PM

I am sure I have been hit by this. I love getting the paper stuff, but sure do get a lot of renewal notices.

Better Business Bureau Warning: New Magazine Scam Hits Northern Illinois

10/10/2013

CHICAGO, IL – October 10, 2013 – If you have recently renewed a magazine subscription, you might want to take a second look at your statement. Scammers are disguising themselves as magazine companies and sending subscribers fake renewal forms, requesting them to renew their subscription at odd prices. In some cases, renewals are offered at suspiciously low prices and in others, extremely inflated prices. As a result, consumers are receiving multiple renewal forms and paying scammers for magazines that they will never receive.

Mary Ann Bretzlauf of Grayslake was recently a victim of a magazine renewal scam, receiving a subscription renewal for $179.99. When she received the bill she said, “I noticed that the address that I sent the payment to looked different but I did not worry about it. I did not get the magazine and when I called the actual magazine office they said that this company is not authorized and that this happens all the time.” After having no luck with several customer service representatives from the company, Mary finally got her refund when she threatened to report them and complained to the Better Business Bureau.

“Once consumers sign up for a magazine subscription, it’s easy for them to pay their renewal fees without taking a closer look at the form” said Steve J. Bernas, president & CEO serving the Better Business Bureau serving Chicago and Northern Illinois. “However, they need to take a closer look at both their initial subscription form and their renewal form because if the address and/or companies don’t match, then it’s most likely a scam.”

The BBB urges people to beware of illegitimate magazine subscriptions by following these tips:

· Check for a renewal notice. Many magazine companies will include a renewal notice in the final issue of your magazine. If you see this notice in your final issue, then you will know it is authentic.

· Compare addresses on your subscription forms. You can find the legitimate address in the first few pages of your magazine. Don’t pay a renewal form with an address that doesn’t match the one inside your magazine.

· Check the mailing label on your magazine. If you don’t know when your renewal date is for your magazine subscription, check the date on the mailing label of your magazine. If you receive a renewal form that is not near the renewal date on your magazine then be extremely cautious.

· Contact your magazine publisher. If you are uncertain about your renewal date or the validity of your renewal form, contact the magazine publisher directly with any questions or concerns. They will have accurate information on your magazine subscriptions.

For more tips and information about scams, visit United States and Canada BBB Consumer and Business Reviews, Reports, Ratings, Complaints and Accredited Business Listings (http://www.bbb.org)

###

As a private, non-profit organization, the purpose of the Better Business Bureau is to promote an ethical marketplace. BBBs help resolve buyer/seller complaints by means of conciliation, mediation and arbitration. BBBs also review advertising claims, online business practices and charitable organizations. BBBs develop and issue reports on businesses and nonprofit organizations and encourage people to check out a company or charity before making a purchase or donation.

Better Business Bureau Warning: New Magazine Scam Hits Northern Illinois - BBB News Center (http://chicago.bbb.org/article/better-business-bureau-warning-new-magazine-scam-hits-northern-illinois-44104)

ribshaw

11-10-2013, 12:08 PM

Risk of investment fraud rises when news breaks

By Claudia Buck

THE SACRAMENTO BEE Sunday November 10, 2013 9:19 AM

The New York Stock Exchange requires a company to meet standards of financial soundness.

It might have been one of the biggest stock-market bloopers this year.

In October, when Twitter Inc. said it planned an IPO, thousands of eager stock buyers raced to be the first to invest.

Unfortunately for them, they swooped too quickly. Instead of buying Twitter shares, those investors wound up buying thousands of shares of a bankrupt electronics company, Tweeter Home Entertainment Inc. Twitter’s stock did not debut until last week on the New York Stock Exchange, using the ticker symbol TWTR.

The Tweeter mix-up is not the only example of investor folly tied to recent news, say securities regulators.

“Twitter was the biggest reason we’re alerting investors, but we’ve seen other circumstances where investors buy large quantities of bankrupt companies,” said Gerri Walsh, vice president for investor education at the Financial Industry Regulatory Authority, which oversees the securities industry. “It doesn’t happen every day, but it does happen when there’s big news about a company or an IPO.”

News events can spur investors, both those who make mistakes and those who fall victim to scam artists.

One current buzz is tied to another source of potential stock scams: legal marijuana. Twenty states allow medical marijuana, and two — Colorado and Washington — have legalized recreational use, so the regulators are warning consumers about scams involving cannabis-related stocks.

“When the next big thing is in the news,” said Walsh, “fraudsters start swimming like sharks."

Given that more than 20,000 companies are listed on U.S. stock exchanges, investors have plenty of opportunities to either fumble or be defrauded. How to avoid that:
Check the symbols

Most U.S. stocks have three- or four-letter ticker symbols, some of which can sound confusingly similar. Check the symbols carefully, especially if one ends in the letter “Q.”

When a company enters bankruptcy, a “Q” is often added to its ticker symbol. That’s your tip-off that the stock is risky. (It’s also how Tweeter’s symbol TWTR became TWTRQ.) Typically, those stocks no longer qualify to be listed on the NYSE or Nasdaq but instead are traded on over-the-counter markets, such as the OTC Bulletin Board or the Pink Sheets.
Ask ‘Why me?’

Before a company goes public and actually issues shares, scam artists might try to entice unsuspecting investors into “exclusive,” pre-IPO offers that supposedly no one else can obtain. These come-ons can arrive by phone, email and tweets, or online via social-media sites or investing blogs.

“When somebody comes to you with a deal, you need to ask some hard-hitting questions: Why me? Why would they give me this opportunity?” Walsh said, especially when the offers are unsolicited.
Check the licensing

“So often, the frauds we see are unregistered professionals selling unregistered securities,” Walsh said. Use the regulator agency’s Broker Check, at FINRA BrokerCheck Search (http://brokercheck.finra.org), to be sure the investment broker is registered and doesn’t have a serious complaint history.

If it’s an IPO, check that it’s registered with the Securities and Exchange Commission.
Know where it trades

A company must meet certain standards of financial soundness to be listed on the NYSE or Nasdaq.

In contrast, over-the-counter stocks aren’t required to meet stringent standards. Also, they often trade infrequently and can have highly volatile prices.
Do your research

Check the SEC’s EDGAR database to get details on a company’s revenue, growth projections and history. Read the company’s prospectus.

Remember that just because a company has registered with the SEC does not mean it’s necessarily a good investment. On its website, the SEC notes that it reviews a company’s filing for compliance with reporting requirements, but that “is not a guarantee that a company’s disclosure is complete or accurate.”

Also, look beyond a company’s promotions. One upstart medical-marijuana company issued more than 30 news releases in the first half of this year, FINRA said, touting its “rosy financial prospects” and growth potential. The company’s name popped up frequently online via sponsored links, investment profiles and spam email, including one promotional piece claiming the stock was “poised to light up the charts!” But the company’s balance sheet showed only previous losses, and it had no current business plan.
Be cautious

When looking at an initial public offering, investors should not leap in blindly, as IPOs can be risky. For tips on IPOs, go to SEC.gov and search for “Investing in an IPO.”

When it comes to investing, the advice is consistently classic.

“Just check before you invest,” said Mark Leyes, spokesman for California’s Department of Business Oversight

Risk of investment fraud rises when news breaks | The Columbus Dispatch (http://www.dispatch.com/content/stories/business/2013/11/10/risk-of-investment-fraud-rises-when-news-breaks.html)

ribshaw

11-10-2013, 12:16 PM

Invest in gold, oil or land? Don't let scammers take you for a sucker
Beware the dodgy dealers who phone to sell you investments. No legitimate investment company cold calls potential clients

I am not a sucker. I don't fall for dodgy deals – I write about them. But I'm on a "sucker list": a directory of contact details of potential losers that dodgy investment firms trade among themselves and use to target potential victims.

I receive two to three calls a week from these scam companies. They all aim to part me from a minimum £10,000. Over the past year I've had wine (many times), carbon credits (starting to reappear), rare earth elements, and overseas land. Recently, they have become more inventive with offers of "unmined gold", Bank of America shares, and stakes in an oil well prospect. But whatever the deal, they all use similar sales techniques, starting with a phone call.

According to watchdog the Financial Conduct Authority (FCS), UK investors lose about £200m a year to high-pressure investment boiler rooms. It reckons some 10,000 victims are ripped off for an average £20,000.

Some are straight-forward frauds, while others are real shares but near worthless or highly risky.

This is the tip of the iceberg. Many victims do not report losses, perhaps because they are too ashamed, or they know that the perpetrators, usually based overseas, get clean away or their chances of compensation are remote.

The FCA has a wide variety of resources on its website, but they depend on potential victims knowing where to look. With the number of scam firms increasing and becoming more aggressive, it's not working.

The simplest advice is just to slam down the phone on anyone who calls you to sell an investment. That's it. Simple and to the point. After all, no legitimate investment company ever cold calls for potential customers.

The FCA website has the register of authorised firms, a list of unauthorised firms known to be operating in the UK, and a number of warnings. But these all have weaknesses. The register does not apply to wine, land, carbon credits, rare earth minerals and physical gold, so scammers can correctly claim they don't need authorisation. The unauthorised firm list is also historical – yet dodgy dealers rarely last long and change names frequently. The warnings are hedged with words such as "usually", "might be" and "probably".

Typical calls I have received are:

• Gold in the ground. A firm (Gold Assets Associates), operating from a London maildrop, offered me gold at $1,000 an ounce – $380 less than the current price. All I would get is a certificate entitling me to unmined gold from a Canadian mine in two years.

Invest in gold, oil or land? Don't let scammers take you for a sucker | Money | The Guardian (http://www.theguardian.com/money/2013/nov/02/gold-oil-land-scam-investments)

• A Zurich maildrop firm (Capital Resources Development Group) called to try to get me to buy into Bank of America. But what it was selling was highly geared Contracts for Difference (betting on a stock) and not shares. It is easy to lose an entire stake in a very short period. The salesman claimed he also advised "seven out of the nine biggest hedge funds".

• A Dubai-based firm (Quantum Commercial, but which has no connection with Quantum Group in Bournemouth) offered me shares in an oil prospect in Illinois. Salesman Ben Sharpe promised I could make an annual (and conservative) £17,682 for a £12,750 investment. He reassured me my money would go to a UK Barclays account.

The firm sent a purchase order form, oil well commercial licence agreement, well check private account opening form and an oil well prospectus. Sharpe later harangued me as a "coward", "loser" and "failure" when I refused to go ahead.
The scammers who didn't get away

Investment scams are sometimes stopped and directors named, shamed and even jailed. But victims are unlikely to see their money back. Here are some instances.

• In July Britain's Got Talent semi-finalist Liam James Collins and his business partner and fellow street-dancer David Bone were each given 14-year bankruptcy restrictions, and banned from holding directorships, for misleading people into investing in a property scheme that never materialised. This followed earlier bankruptcy orders. They each owed more than £4.5m to creditors.

• In August Pantheon Realty and four connected companies were ordered into provisional liquidation in the public interest.

Pantheon, which featured in Guardian Money in March, sold property in Brazil – on the basis of artists' impressions – in a resort that does not seem to exist. The company said this was the "number one holiday destination in a country with 4,500 miles of coastline".

The Pantheon firms claimed Brazil property would soar in value owing to the 2014 World Cup and 2016 Olympics. Despite their youth, the directors claimed substantial expertise.

• In August 2011 Tomas Wilmot was sentenced to nine years in prison for masterminding a £27.5m boiler room scam operating out of a hidden barn in Surrey and from Spain. A confiscation order was made but progress in finding the cash was limited.

Last year he had an extra 18 months added to his jail sentence for contempt of court in selling a flat and boat in Gran Canaria. His wife, Christine Wilmot, admitted contempt and was sentenced to 12 months jail, suspended for two years. Husband and wife have blamed each other for hiding the crime proceeds.

ribshaw

11-10-2013, 12:59 PM

Several variations of this are hitting the news, where a person is called with a story of an accident, arrest or kidnapping. Of course all can be fixed by going to K-Mart for a Green Dot Card.

Virtual kidnappings scam targets immigrants; 4 arrested for wire fraud

SAN DIEGO (KABC) -- Four people are facing wire fraud and other charges in connection with a virtual kidnapping scheme.

Investigators say telemarketing tactics were used to collect random money from immigrants claiming their relatives had been kidnapped.

In reality, no one had been snatched and the callers didn't even know who they were dialing.

According to federal documents, callers in Tijuana, Mexico used about 30 different San Diego phone numbers to make the calls, up to 5,000 a day.

"They would just randomly run through a sequence of number, like 1 to 100," said Daniel Page, assistant special agent in charge of U.S. Immigration and Customs and Enforcement's Homeland Security Investigations unit in San Diego."

The callers demanded that money be wired, saying they were holding a relative who had been heading to the U.S. illegally.

"They're just like your professional telemarketer. They have a script. 'You need to pay this money. If you don't, something's going to happen," said Page.

While the success rate was small, those who took the bait usually paid between $1,000 and $3,000.

Authorities said the suspects targeted the Washington, D.C. area, because it is home to large numbers of Central American immigrants whose migrant relatives are often out of contact during the long journey north.

The four charged are Ruth Graciela Reygoza, 63, of Chula Vista; Maria del Carmen Pulido, 24, of East Los Angeles; and brothers Adrian Rocha, 25, and Juan Rocha, 23, Americans who live in Tijuana. They are accused of picking up random payments in the San Diego area and bringing the money to Tijuana.

A detention hearing for the four suspects is scheduled for Thursday.

Virtual kidnappings scam targets immigrants; 4 arrested for wire fraud | abc7.com (http://abclocal.go.com/kabc/story?section=news/state&id=9319852)

ribshaw

11-10-2013, 01:01 PM

Beware the realistic IRS phone scam

(MoneyWatch) Consumers normally might be skeptical if somebody called out of the blue saying they owed back taxes and needed to pay them with a prepaid debit card or wire transfer. But, when the caller knows the last four digits of their Social Security number and the caller ID shows that the number originates from the Internal Revenue Service, some consumers think it's the real thing.

It isn't. The real Internal Revenue Service just put out a warning about this sophisticated phone scam, which is targeting consumers all across the nation. The scammers tell victims that if they don't pay a bogus tax bill immediately, they can be arrested, deported, lose their business or lose their driver's license.

Using fake names and IRS badge numbers, as well as caller identification spoofing technology, the scammers may also send victims a bogus email that mimics the IRS format and logo to support their claims. Victims who appear reluctant to pay may also get a follow-up call from the police or Department of Motor Vehicles. These calls are also "spoofed" to look real.

In reality, the IRS only initiates taxpayer contact by mail. The agency never asks for payment by anything other than check or bank transfer. All checks are made out to the US Treasury. Scammers, on the other hand, want you to pay by debit card or wire transfer because these transactions are virtually untraceable.

The IRS also does not work hand-in-hand with the police or immigration officials. If you're getting a two-agency punch, it is certain to be bogus. Pretending that a second agency is hot on your tail is aimed at getting you into a big enough panic that you'll dash out to send the money before having a chance to contact the real authorities.

What should you do?

If you get a call from someone claiming to be with the IRS asking for a payment, hang up. Again, the IRS does not call taxpayers. To report the scam, you can call the Treasury Inspector General for Tax Administration at 800-366-4484 or file a complaint with the Federal Trade Commission at FTC.gov.

If you get an email purporting to be from the IRS, forward it to phishing@irs.gov. Do not open any attachments in this email. They could contain malware that can infect your computer and cause it to provide scammers with your personal information.

And if you do think you might owe federal taxes, call the IRS directly at 800-829-1040.

Beware the realistic IRS phone scam - CBS News (http://www.cbsnews.com/8301-505144_162-57611348/beware-the-realistic-irs-phone-scam/)

ribshaw

11-10-2013, 01:06 PM

Truckers warned of possible letter scam
World-Herald News Service

NORFOLK — The hazard lights are on for truck drivers in northeast and north-central Nebraska.

A Pilger-based truck driver recently received a letter from what at first glance looks like the U.S. Department of Transportation warning that he could be in violation of Section 49 of the Federal Motor Carrier Safety Administration.

“Federal records indicate that Federal DOT (redacted) is newly assigned. Therefore all supervisors associated with this DOT must complete the mandatory Drug and Alcohol Awareness Training immediately or face the possibility of being in violation of Section 49 of the FMCSA regulations,” the letter says.

The letter then goes into detail on the possible penalties that each driver could face and then offers an online class to immediately rectify the situation. The classes cost $99, but the letter states that the price could increase to $149 if registration is not promptly completed.

The letter, however, was sent by a company called Supervisor Compliance, a Wilmington, Del.-based company that has an “F” rating from the Better Business Bureau.

In the past few years, the business has received 19 complaints — many dealing with advertising and sales. Many of those complaints have not been resolved by the company because the representatives could not be reached.

The Better Business Bureau encourages consumers who receive such letters to check with appropriate agencies to be certain any requirements are being met.

Truckers warned of possible letter scam - Omaha.com (http://www.omaha.com/article/20131110/NEWS/131108583/1707)

littleroundman

11-12-2013, 06:15 AM

Love scams sending $7m a month to west Africa

One in five internet users aged over 50 have been victims of online fraud, in part because older Australians are more likely than teenagers to chat to strangers online, post personal contact information or get caught up in love scams.

Senior women using online dating sites or chat rooms were most susceptible to romance scams and Australians were collectively sending up to $7 million every month to fraudsters in west Africa, according to Detective Superintendent Brian Hay from the Queensland Police.

Christian chat rooms were often used to find trusting women, with the fraudsters spending months building a relationship before suddenly requiring large amounts of money for an emergency, Mr Hay said.

Other seniors reported being caught up in credit card fraud, paying for things that did not exist, or revealing their bank account details to an official looking email, according to the survey by security company McAfee.

The survey spoke to 500 people aged between 50 and 75 years and was released ahead of this week's Australian Seniors Computer Clubs Association conference.

And while parents often worry about their children's online safety the survey found that more people over 50 had spoken to a stranger on line, 20 per cent, compared to the number of teenagers who had done so, eight per cent.

The majority of people over 50 had also received an email from someone they did not know asking for personal information.

Mr Hay recommends seniors never send money, avoid chatting to people overseas, and do some back ground research on potential suitors such as Googling their name or doing a reverse search on photos to see if they were stolen from another site.

Meanwhile, PwC's annual global security survey has found that employees and contractors were a bigger source of cyber attacks on companies than hackers, organised crime or competitors. Asia-based companies reported more security breaches by staff than hackers, while South American and African organisations were most likely to be attacked by former staff or hackers.

The survey was conducted through CIO magazine and 9600 people responded.

The most common impact of security breaches was that employee records were compromised, followed by customer records, internal documents and identity theft.

And the size of attacks has increased with the number of security incidents leading to losses of more than $10 million doubling since 2011.

Pharmaceutical companies were the biggest representatives of companies that had lost $10 million, followed by finance and technology companies.

ribshaw

11-13-2013, 11:45 AM

At the bottom of the article it mentions, consider everything they say a lie. Better advice has never been spoken. Hang up if someone calls your is pretty damn good too. One trick boiler rooms will use is to pick a well known investment first, and then when they have your money call back with the bullshit stuff. And here is my feeling, I was talking to a sort of "end of the world person" about buying metal as a hedge. I like to do it through well known brokerage firms using exchange traded products, I have all the comfort that comes with it, plus SIPC insurance against fraud on the part of the broker.

If the end of the world comes, I can think of a lot of things I would rather have to bargain with, like shotgun shells, bars of SOAP, cans of food, cigarettes, booze, water...etc.

6353

Boiler room fraudsters turn to gold
One investor loses £41,000 as high-pressure cold callers switch from shares
Gold bars
Some boiler rooms are switching from shares to gold Photo: ALAMY
Richard Evans

By Richard Evans

Investors have been warned of high-pressure cold callers promising high returns on gold investments after a journalist was targeted by fraudsters.

In recent years investors have lost billions of pounds to "boiler rooms" – gangs that repeatedly call investors to persuade them to buy worthless or overvalued investments – but the fraudsters have usually been selling shares. Now some have changed tactics and started pushing other assets such as "carbon credits" – tradable permits that allow companies to pollute the environment – and gold.

One person targeted by fraudsters selling gold investments was Shari Vahl, a BBC reporter, who taped the calls and secretly recorded a meeting.

One of the fraudsters, who purported to work for a company called Demmore Ltd, told Mr Vahl: "It is really a thriving market. It outperforms most bank-based investments and underperforming stocks and shares.

"I can guarantee you 15pc returns in 60 days."
Related Articles

Demmore Ltd has no connection with legitimate companies of similar name. It claimed to operate from an office in Canary Wharf, the BBC said, but the actual occupants of the building said this was untrue.

The fraudsters are thought to have contacted thousands of people. One, named only as David from Greater Manchester, handed over £41,000 to the gang, who continued to call him in an attempt to persuade him to part with more money – a favourite tactic of boiler rooms.

"Because I'd like to leave something for my grandchildren, I was very tempted. It all looked OK," he told the BBC.
Comment: just hang up on 'investment' cold callers

When we read about scams such as these, the instinctive reaction of many of us is: "Of course, I would never get caught by a trick like this."

But the evidence is that it is exactly well educated, experienced investors who do get caught.

The fraudsters often go out of their way to target this group, party because they get their names from the shareholder registers of listed companies, which are public documents, but also because they know that these investors may be particularly susceptible to the kind of knowledgable, sophisticated talk that they use.

The victims are both flattered and reassured, and gradually they are persuaded to part with money.

There's only one answer: assume that everything they say is a lie. Don't fall into the trap of seeing boiler rooms callers as roguish salesmen at the outer reaches of the financial industry – they are ruthless criminals who are past masters at psychological manipulation. Engage with them at your peril; it's best just to put the phone down.

• For more investment news and ideas, bookmark telegraph.co.uk/investing or like us at facebook.com/telegraphinvesting

Boiler room fraudsters turn to gold - Telegraph (http://www.telegraph.co.uk/finance/personalfinance/investing/gold/10441740/Boiler-room-fraudsters-turn-to-gold.html)

ribshaw

11-13-2013, 11:53 AM

The devastation caused by Typhoon Haiyan in the Philippines has left many Americans wondering how they can help. While there are a number of organizations you can give to that are providing direct aid to those most affected by the storm, it is important to do your homework before sending a check. Here are several tips that can help you avoid getting scammed and ensure that funds are going to those in need.

MORE: Typhoon may devastate Philippines' economy

MORE: Typhoon Haiyan by the numbers

1) Give to established charities

"You want to find a charity with a proven track record with dealing with these disasters," said Matthew Viola, senior program analyst at Charity Navigator, a group that monitors charitable organizations.

These organizations list established charities:

Better Business Bureau's (BBB)Wise Giving Alliance For Charities and Donors - U.S. BBB (http://www.bbb.org/us/charity)

Charity Navigator Charity Navigator - America's Largest Charity Evaluator | Home (http://www.charitynavigator.org/)

Charity Watch CharityWatch - Helping Donors Make Informed Giving Decisions (http://charitywatch.org/)

GuideStar GuideStar nonprofit reports and Forms 990 for donors, grantmakers and businesses (http://www.guidestar.org/)

2) Don't donate over the phone

Viola said it's best to avoid giving over the phone because you don't know where your funds are going and third-party telemarketers may be keeping a "big chunk" of your donation.

3) Never send cash

The Federal Trade Commission warns you can't be sure your donation is going to the organization. If an organization asks you for cash or a wire transfer, that could be a sign of a scam, the FTC warns.

Another reason not to send cash: You won't have a record of your donation for taxes.

4) Beware of offers of prizes

If an organization offers the promise of a guaranteed win of a sweepstakes, it's very possible you could be dealing with a scam, the FTC advises. Legally, donation to a charitable cause is never a prerequisite to winning a sweepstakes prize, the agency adds.

5) Designate the disaster

Charities may give the option to designate your giving to a specific disaster, Viola said. That way, you can ensure your funds are going to disaster relief, rather than a general fund, he said.

5 tips to avoid typhoon charity scams (http://www.usatoday.com/story/news/nation/2013/11/11/typhoon-haiyan-philippines-donations-scams/3497947/)

littleroundman

11-13-2013, 07:44 PM

Scam websites charging $90 for US visa waiver program application that actually cost $14

AUSTRALIANS travelling to the US have been warned about being ripped off by almost 10 times the amount they need to pay to get entry into the country.
The Australian consumer watchdog and the US Embassy have both issued a notice to Aussies heading abroad to be wary of third-party websites charging travellers enormous fees to apply for visas for them.

About 16,000 Australians are registered as being in the US at any time and most qualify for the visa waiver program.

The visa is easy to apply for through a US government website and costs only $14 - but some companies have reportedly charged up to $90 to process the application for travellers.

Visa applicants should "be cautious in all dealings with companies that claim to offer assistance in obtaining US visas," the US Embassy said.

"There are many websites and email scams which attempt to mislead customers and members of the public into thinking they are official US government websites."

It said there was only one website where the visa waiver program could be applied for and third-party companies charging a fee to assist travellers "are not operating on behalf of the US government".

Other visas to visit the US can cost more, the embassy said, but they were only available to be applied for online at ustraveldocs.com (http://ustraveldocs.com/).

The third-party companies are often not acting illegally but they cause a headache for travellers who later realise they have been ripped off.

The warning comes as it is revealed there are still many Australians heading abroad who are being scammed out of thousands of dollars every week by fraudulent websites posing as offering visas into other countries.

The Australian Competition and Consumer Commission said already this year fraudsters had cost travellers more than $118,000 in visa scams.

They included 119 reports by people who claimed they had been cheated by dodgy websites.

The ACCC warned travellers to question the authenticity of websites, especially those making an offer out of the blue or promising guaranteed visa approval.

"(Travellers need to) be careful about what personal information you provide on the internet," a spokesman for the ACCC said.

"These details can be used by scammers to guess your passwords or commit fraud."

THINK BEFORE YOU CLICK:

The only websites to apply for US visas:

• Visa Waiver Program (https://esta.cbp.dhs.gov/esta/)
•All other US visas (http://www.ustraveldocs.com/au/au-steps.asp)

Warning signs that a visa website may be dodgy:

• You get an offer out of the blue for a "guaranteed" visa
• The offer comes via email, post, over the phone or on a website
• You are asked to pay the scammer upfront to "register" your interest in getting a visa, and asked to pay them directly rather than paying the government department
• They tell you they need to keep your original documents

Source: Australian Competition and Consumer Commission

ribshaw

11-15-2013, 09:04 AM

Police investigators arrested two men, ages 73 and 58, in connection with several flim-flams in Durham in the past two months. They are now wanted on additional fraud charges.

The scams were variations on a con game called “the pigeon drop” in which the suspects persuade a victim to give up some “good faith” money in order to be able to get a larger amount of money. The scammers take the money, leaving the victim with nothing. The suspects in pigeon drops usually work in pairs.

The first incident was reported Sept. 27 at Wal-Mart on Glenn School Road. A man claiming to be an African refugee approached a woman and told her he had inherited $150,000 but he couldn’t take it back to his country because he would be killed. He told her that his deceased relative wanted him to donate the money to an “African Baptist Church” and he needed her help. A second man came up to them and offered his assistance. The woman was told that she needed to put up $10,000 to show good faith before he gave her the money. The woman withdrew $10,000 from her bank and gave it to the men. After they left, she discovered that she had been given torn up paper instead of cash.

On Oct. 21, a woman called police and told them she had been scammed out of $790 by two men who approached her at Wal-Mart on Glenn School. The men claimed they had found a wallet with $60,000 in it in the parking lot and would share it with her if she would put up money to pay taxes on it. The woman gave the men the cash and later discovered that they had given her paper, not money.

Last week, officers responded to a suspicious person call at Wal-Mart on Glenn School Road and learned that two men matching the descriptions of men and the vehicle (a silver Mercedes) involved in the earlier incidents had been seen in the area, but had left the scene. Investigators from the Police Department’s Fraud Unit went to other Wal-Marts in the area and spotted the two possible suspects and a silver Mercedes near Wal-Mart on Martin Luther King Jr. Parkway. The two men were in the company of an elderly woman who told investigators they had approached her and told her about a bag filled with money in the parking lot.

Investigators arrested Charles Henry Arms, 73, of Charlotte and charged him with two counts of felony conspiracy and two counts of obtaining property by false pretense. He was placed in Durham County Jail under a $20,000 bond. They also arrested Ramee Shabazz, 57, of Charlotte and charged him with one count of felony conspiracy and one count of obtaining property by false pretense.

Arms and Shabazz both have prior felony records and use several aliases. Investigators searched the silver Mercedes and found stacks of paper cut to the size of dollar bills along with letters similar to those used in Nigerian Advance Fee Scams.

Both men were released from jail after posting bond. Investigators have since taken out additional charges of attempting to obtain property by false pretense and felony conspiracy against both men. Anyone with information on their whereabouts is asked to call 919 560-4440, ext. 29313 or CrimeStoppers at 919-683-1200.

Durham police seeking flim-flam artists on new charges | Public Safety | TheDurhamNews.com (http://www.thedurhamnews.com/2013/11/14/3371246/durham-police-seeking-flim-flam.html)

Might be a coincidence that a local poster uses this handle?? Similar versions I have heard taking place at X-Mas tree lots where a lady claims to have lost a diamond ring..

The glim-dropper scam requires several accomplices, one of whom must be a one-eyed man. One grifter goes into a store and pretends he has lost his glass eye. Everyone looks around, but the eye cannot be found. He declares that he will pay a thousand-dollar reward for the return of his eye, leaving contact information. The next day, an accomplice enters the store and pretends to find the eye. The storekeeper (the intended griftee), thinking of the reward, offers to take it and return it to its owner. The finder insists he will return it himself, and demands the owner’s address. Thinking he will lose all chance of the reward, the storekeeper offers a hundred dollars for the eye. The finder bargains him up to $250, and departs. The one-eyed man, of course, cannot be found and does not return.

List of confidence tricks - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/List_of_confidence_tricks)

ribshaw

11-15-2013, 09:38 AM

Federal agents arrested two men near Phoenix who are accused of perpetrating a massive fraud against a number of current and former National Hockey League players, according to a report in the New York Daily News.

Law enforcement officials, including FBI agents and agents from the U.S. Attorney's Office for the Eastern District of New York, on Wednesday arrested Phil Kenner and Tommy Constantine on multiple charges that stemmed from a grand jury investigation.

The grand jury concluded that Kenner and Constantine had cheated the players out of millions, the Daily News said.

None of the players named in the article as alleged victims were current or former players for the Colorado Avalanche, but it was unclear if all the players involved in the fraud were included in the story.

The players named were: former New York Rangers and New York Islanders player Bryan Berard; former Islander Michael Peca; former Ranger Mattias Norstrom; former Dallas Stars player Jere Lehtinen; former Washington Capitals player Dimitri Khristich; and Jason Wooley, Glen Murray and Jozef Stumpel, who all played for several different teams in their careers.

The scope of the fraud is still under investigation, and some quoted in the article think it could be as much as $80 million.

The "sprawling case ... stretches from Mexico to Canada and includes [allegations of] bogus real estate transactions and fake investments, forged signatures on lines of credit, death threats and blackmail, much of which centers around the men’s [alleged] attempts to gain control of a Cabo San Lucas golf resort that is rapidly becoming one of the most acclaimed courses in North America,” the Daily News said.

2 arrested in fraud case that targeted NHL players - Denver Business Journal (http://www.bizjournals.com/denver/news/2013/11/13/two-men-arrested-in-fraud-case-that.html)

ribshaw

11-15-2013, 10:15 AM

In passing, I am seeing some investment scams surrounding Carbon Credits, for whatever it is worth be careful.

Minister hits out at £24m carbon credit investment scam

by Jun Merrett on Nov 06, 2013 at 09:20

A government minister has hit out at a carbon credit investment scam which has led to over 1,000 investors losing £24 million.

Jo Swinson, minister for employment relations and consumer affairs, has attacked the 19 firms involved in selling the carbon credits, which she said had all been closed down by the Insolvency Service in the last 15 months.

Swinson, who is Liberal Democrat MP for East Dunbartonshire, said the firms targeted small and elderly investors.

'This is a particularly disgraceful scam as it not only preyed on older people trying to maximise their savings, but also targeted their sincere desire to make ethical investments. Instead, investors have been left out of pocket with shares that are either worthless or do not exist,’ she said.

According to the Insolvency Service, the firms targeted people between 50-85 years old and used high pressure sales techniques to encourage purchases.

One of the companies, Eco Global Markets Limited, which took at least £8.5 million from more than 230 investors, was wound up in July.

Anglo-Capital Partners Ltd and Cavendish Jacobs Ltd took more than £1.2 million between them and were wound up in October.

Minister hits out at £24m carbon credit investment scam - New Model Adviser® (http://citywire.co.uk/new-model-adviser/minister-hits-out-at-24m-carbon-credit-investment-scam/a714900)

ribshaw

11-15-2013, 10:23 AM

Some people really are jerks who ruin the use of service animals for people like soldiers with PTSD, the blind, and others who have real world problems.

How could you possibly get away with claiming your animal is a service animal if it’s not? What FOX 4 Problem Solvers discovered is that it’s easy.

People love their pets, but how far would you go to keep them with you all the time? Say on an airplane? Or in a restaurant?

“I’ve seen them carried on in Louis Vuitton and snuck on,” Kansas City travel agent Kathy Sudekis said.

But why sneak Fido around when you can claim him as a service dog? FOX 4 Problem Solvers found dozens of sites on line where for $130 or less you can buy certification, step-by-step instructions on how to get your pet on a plane and even a vest transforming any animal into a medical necessity.

So we tried it on Freddy. He’s a dog with so many health problems he needs a service dog of his own.

So where can you got with a service dog? According to the Amercians with Disabilities Act, you can take him anywhere you want. We took Freddy shopping and got a few stares from the clerk, but once she saw Freddy’s vest, Freddy had total rule.

Then it was on to a restaurant where Freddy, who admittedly lacks service dog training, had an accident. But we still weren’t asked to leave.

Admittedly owning a fake service dog is sleazy, but it’s so easy it’s becoming a growing problem. Under federal law, business owners can only ask two questions: Is this a service animal? And what is it trained to do? No one can legally ask you for proof, which makes cheating easy.

People with real service dogs like Sheila Styron, who is blind, say fake service dogs are making life more difficult for her.

“There is a certain backlash among businesses that have been the victim of service animal fraud,” Styron said.

Styron said she has had trouble with taxi drivers who were reluctant to let her guide dog Gretchen in the cab, telling her they are fed up with posers. Although Sheila and Gretchen are obviously not posing.

Apartment owners say more and more renters claim their pets are service animals. Because if it’s a service animal it has to be allowed even in apartments with a no-pet policy and no pet fees can be charged.

Kent Snyder, who manages 600 properties, said about 30 percent of all pet owners he rents to now claim them as service animals, that’s up from less than one percent 10 years ago. And service animals can be anything, Snyder has seen cats, ferrets and parrots.

“I have to take people at their word, ” he said, or risk being fined by the feds for violating the Fair Housing Act law.

Snyder said apartment owners can require a letter from a medical professional to back up a claim that an animal is a medical necessity, but FOX 4 Problem Solvers discovered you can get those letters on line from the same companies that sell you a vest.

Some groups are pushing for a federally certified ID for all service dogs to help weed out the fakes. But others worry that requiring such licenses would be a burden for the truly disabled.

Service dog fraud on the rise | fox4kc.com (http://fox4kc.com/2013/11/14/service-dog-fraud-on-the-rise/)

ribshaw

11-15-2013, 10:27 AM

Still a big fan of the Credit Freeze to stop people from opening credit, there are a few links on this blog. The other thing I found was for a few bucks (I think $20-30 a year) I was able to add identity theft protection to my homeowners policy. It is not the supersonic million dollar stuff that is advertised, but with some common sense it should be enough to get life back in order.

I’m a Victim of Credit Card Fraud. What Do I Do?

by Stephen Vanderpool on November 14, 2013

At least 10% of Americans have been victims of credit card fraud as of 2012. To throw another scary number at you, 40% of all financial fraud is related to credit cards. Credit card fraud isn’t like shark attacks or plane crashes. In fact, it has become almost commonplace. If you’ve fallen victim to credit card fraud, don’t despair. It happens so often that credit card companies have had plenty of practice sorting out the mess. You’ll be fine as long as you follow the right steps and act fast.

1. Contact your credit card issuer

As soon as you notice fraudulent activity, get on the phone with your credit card company. One of the benefits of using a credit card over a debit card is you will be held responsible for no more than $50 in case of theft. Still, the sooner you call, the better.

Generally, the issuer will close your account and overnight you a new credit card with a new account number. Your account history and balance will remain as they were pre-fraud. If multiple accounts have been compromised (like if your wallet was stolen), contact every company where you have an account.

2. Contact the police

A police report can be essential to repairing damage to your credit. Make sure you not only file a report, but get a copy for your records. You can use it to verify the nature of the fraud with your card issuer and the credit bureaus. You can use it as proof as you work to fix your credit. Also be sure to file a complaint with the Federal Trade Commission.

3. Contact the credit bureaus

Your string of phone calls ends with the three major credit bureaus–Equifax, Experian and TransUnion. The credit bureaus will initiate a 90-day fraud alert on your file. With that launched, companies are required to contact you for verification when a new account is opened under your name. If you choose to, you also can freeze your account, preventing lenders from reviewing your file and issuing new accounts.

4. Keep careful records

When resolving credit card fraud, it’s vital to keep an organized file of all relevant paperwork and evidence. With any luck, the process with be smooth and painless. But sometimes, complications crop up, and you’ll want to arm yourself with all available documents. Along with getting a copy of the police report, take notes from conversations with the authorities, keep records of conversations with issuers and credit bureaus, and hold onto statements or bills that show information about fraudulent transactions.

5. Practice vigilance

Even after your life returns to normal, stay alert and keep an eye on your accounts. This means regularly checking free credit reports and frequently reviewing your account activity. It doesn’t hurt to follow up with your credit card company and credit bureaus with a letter summarizing the events in precise chronological order. Remember, credit card issuers are ready to help, but that doesn’t mean the process will go off without a hitch.

I’m a Victim of Credit Card Fraud. What Do I Do? (http://www.nerdwallet.com/blog/2013/victim-credit-card-fraud/)

ribshaw

11-15-2013, 10:33 AM

Kiwi "money mules" are being tricked into laundering stolen money, the New Zealand Bankers' Association warns.

The latest scam involves people being contacted by strangers who claim they have accidentally transferred money into their account, the NZBA said.

The strangers then ask that the funds be withdrawn in cash and returned using a money remittance service, often to another country.

But the funds have actually been taken from another victim's account, usually through a "phishing" scam where account details are stolen.

The NZBA said scammers often came up with stories to allay any suspicions, inventing an emergency and exploiting people's desire to help.

They would also use threatening behaviour to try to force the return of the money.

NZBA chief executive Kirk Hope said anyone who suspected they were involved in a banking scam should contact their bank or the police immediately.

In August, police laid charges against a man who was allegedly the leader of a money mule ring which had stolen more than $100,000.

The practice has been around for years, with Canterbury police reporting that they were dealing with as many as 10 cases every week back in 2007.

One version of the mule scam involves accepting online job offers to receive funds and transfer them while retaining a "commission".

Another involves the scammer buying goods or services, paying too much, and then giving a sob story so they can cancel the purchase and get a refund.

Scammers often ask that money is paid to an untraceable Western Union account, usually in another country.

Kiwis reported close to $4 million worth of losses to scams last year, according to the Ministry of Business, Innovation and Employment.

However, that figure is just a tiny proportion of the $1.5 billion of laundered money that MBIE estimates washes through New Zealand each year.

A raft of changes associated with the Anti-Money Laundering and Countering Financing of Terrorism Act came into force in July, aiming to crack down on the practice and improve New Zealand's reputation.

Kiwis turned into 'money mules' | Stuff.co.nz (http://www.stuff.co.nz/business/money/9400395/Kiwis-turned-into-money-mules)

ribshaw

11-18-2013, 10:51 AM

Top 5 scammers, maybe but good short video.

http://www.youtube.com/watch?v=5whIv9lCfZM&feature=youtu.be

ribshaw

11-18-2013, 11:01 AM

This is well worth a look!!

http://www.youtube.com/watch?v=e2OvmWIlJ4I

ribshaw

11-18-2013, 11:03 AM

Top 5 Crowdfunding scams. But it is early..

http://www.youtube.com/watch?v=Syx0ae7eFgY

6362

ribshaw

11-18-2013, 11:21 AM

Investor Alert: Binary Options and Fraud
06/06/2013

The SEC’s Office of Investor Education and Advocacy and the Commodity Futures Trading Commission’s Office of Consumer Outreach (CFTC) are issuing this Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. These schemes allegedly involve, among other things, the refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades.
Binary Options

Binary options differ from more conventional options in significant ways. A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yes/no proposition.

The yes/no proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yes/no proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 2:30 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 11:17 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset. When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as “all-or-nothing options” or “fixed-return options.”
Binary Options Trading Platforms

Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the SEC or CFTC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms.
Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.

Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract. For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ company is above $5 per share when the option expires.

If the outcome of the yes/no proposition (in this case, that the share price of XYZ company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire “in the money.” If, however, the outcome of the yes/no proposition is not satisfied, the binary option is said to expire “out of the money,” and the customer may lose the entire deposited sum.

There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the deposit—for example, 5%—but that is not typically the case.

In fact, some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect, given the payout structure. For instance, in the example above, assuming a 50/50 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative, resulting in a net loss to the customer. This is because the consequence if the option expires out of the money (approximately a 100% loss) significantly outweighs the payout if the option expires in the money (approximately a 50% gain). In other words, in the example above, an investor could expect, on average, to lose money.
Investor Complaints Relating to Fraudulent Binary Options Trading Platforms

The SEC and CFTC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades.

The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by “brokers” over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers’ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails.

The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver’s license data for unspecified uses. If a binary options Internet-based trading platform requests photocopies of your credit card, driver’s license, or other personal data, do not provide the information.

The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customer’s trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss.
Unregistered Transactions, Operations, Broker-Dealers, or Trading Exchanges; Illegal Options Transactions

In addition to ongoing fraudulent activity, many binary options trading platforms may be operating in violation of other applicable laws and regulations, including certain registration and regulatory requirements of the SEC and CFTC, as described below.
Certain Registration and Regulatory Requirements of the SEC

For example, some binary options may be securities. Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a company’s securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available. If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal.

If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply.

In addition, some binary options trading platforms may be operating as unregistered broker-dealers. A person who engages in the business of effecting securities transactions for the accounts of others in the U.S. generally must register with the SEC as a broker-dealer. If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, and/or receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC. To determine whether a particular trading platform is registered with the SEC as a broker-dealer, visit the FINRA BrokerCheck website (BrokerCheck: Research Brokers & Investment Advisers - FINRA (http://www.finra.org/investors/toolscalculators/brokercheck/)).

Some binary options trading platforms may also be operating as unregistered securities exchanges. This would be the case if they matched orders in securities of multiple buyers and sellers using established non-discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange.
Certain Registration and Regulatory Requirements of the CFTC

It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U.S. citizens, unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U.S. customers who have a net worth that exceeds $5 million.

To see the most recent list of exchanges that are designated as contract markets, check the CFTC website. There currently are only three designated contract markets offering binary options in the U.S.: Cantor Exchange LP; Chicago Mercantile Exchange, Inc.; and the North American Derivatives Exchange, Inc. All other entities offering binary options that are commodity options transactions are doing so illegally.

Further, entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer.
Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U.S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.
Final Words

Remember—much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.
Do not invest in something that you do not understand. If you cannot explain the investment opportunity in a few words and in an understandable way, you may need to reconsider the potential investment.
Before investing in binary options, you should take the following precautions:
Check to see if the binary options trading platform has registered the offer and sale of the product with the SEC. Registration provides investors access to key information about the terms of the product being offered. You can use EDGAR (Next-Generation EDGAR system - Better Data. Stronger Markets. (http://www.sec.gov/edgar/searchedgar/webusers.htm)) to determine whether an issuer has registered the offer and sale of a particular product with the SEC.
Check to see if the binary options trading platform itself is registered as an exchange. To determine whether the platform is registered as an exchange, you can check the SEC website regarding Exchanges at Exchanges (http://www.sec.gov/divisions/marketreg/mrexchanges.shtml).
Check to see if the binary options trading platform is a designated contract market. To determine whether an entity is a designated contract market, you can check the CFTCwebsite at http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizations&implicit=true&type=DCM&CustomColumnDisplay=TTTTTTTT.
Finally, before investing, check out the registration status and background of any firm or financial professional you are considering dealing with at FINRA BrokerCheck (Tools & Calculators - FINRA (http://www.finra.org/investors/tools) calculators/brokercheck/) and BASIC Search (BASIC Search (http://www.nfa.futures.org/basicnet)), the National Futures Association Background Affiliation Status Information Center. If you cannot verify that they are registered, don’t trade with them, don’t give them any money, and don’t share your personal information with them.

Related Information

EDGAR (Next-Generation EDGAR system - Better Data. Stronger Markets. (http://www.sec.gov/edgar/searchedgar/webusers.htm))
FINRA BrokerCheck (BrokerCheck: Research Brokers & Investment Advisers - FINRA (http://www.finra.org/investors/toolscalculators/brokercheck/))
BASIC Search (BASIC Search (http://www.nfa.futures.org/basicnet))
SEC Publication: Ask Questions (www.sec.gov/investor/pubs/sec-questions-investors-should-ask.pdf)
SEC Investor Alert: Social Media and Investing—Avoiding Fraud (www.sec.gov/investor/alerts/socialmediaandfraud.pdf)
CFTC Consumer Protection (Consumer Protection - CFTC (http://www.CFTC.gov/consumerprotection))
International Organization of Securities Commissions (IOSCO) (IOSCO Members Lists (http://www.iosco.org/lists/index.cfm?section=general))

ribshaw

11-19-2013, 09:13 AM

SCAMMER emmepisnc@alice.it
SCAMMER giusti1962@alice.it

-----Original Message----- From: Richard Bruno
Sent: Monday, November 18, 2013 6:19 PM Subject: Regarding your package, EMAIL OR CALL DELIVERING AGENT NOW

NOTIFICATION FROM DHL DELIVERING COMPANY

Regarding Your delivering agent, he will need your
information to complete the delivery of your package {BOX}
with him,it contains $3.5 million dollars being your compensation, You’ re to
provide him your
Name,Address, Nearest Airport and Telephone No:,is due to our agreement
with the DHL Delivering Company and Noted That you have to provide him
the information correctly for the smooth delivery of your package to you ,he is
in Atlantic International Airport United state of America, please make sure you
take
care of him and know is not American Citizen thanks.

INFORMATION NEEDED FROM YOU

(1)Your Full Name=============
(2)Mobile Phone Number======
(3)Current Home Address==== ====
(5)Country====================
(6)City======================
(7)Nearest Airport ==============

Regard
Mr.Richard Bruno

In case you wonder, you can go to the Western Union website and see if a transfer is real. Chances are this is what you will get.

Track a Transfer
W0131 We do not have an order with the provided information. Please verify your information and provide the correct information in the form below

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ribshaw

11-19-2013, 09:36 AM

DO NOT FALL FOR THE OLD OUR SHIP WAS ATTACKED BY PIRATES RUSE:

My scambusting buddy Anne gave me this letter, further information is available on her blog and the scam police blog listed below. At the current time, the scammer still has an active FB page. And as luck would have it the stolen photos were used by another scammer who approached my rich old lady avatar. So if you boyfriend looks like this dude, better kick him off the gravy train.

SCAMMER : Collman Hilton<collman_hilton@yahoo.com>
Date: 2013/6/XX
Subject: Re: Miss the love of my life
To: XXXX

Tragedy strikes on another of our own vessel after a sudden attack by some deadly sea pirate in the India Ocean , the sea route to Asia . I have been trying to call your phone but it's not been going.
“REPORTER “ say two crew members on board have been confirm dead and the captain held hostage . Several Gun shots were fired for more than 4hrs, over $50m USD worth of crude oil was estimated as lose realized from this attack
We have been mandated to sail through the Gulf of Thailand linking Singapore and Northern Australia , which is another worst area for piracy. I’m so scared because the life risk involved in this case is 50/50 chance of surviving any attacked from these deadly pirates.
My love, please pray hard for me in this situation. I am carrying some important valuables in this Ship which includes (My contract Documents, money, and the Diamond Neck-chain set I bought as a surprise for you). I normally carry money along with me because I buy palm oil in tones from Australia and Indonesia and supply to a company in Mexico I have 2yrs contract agreement with.
This is my first time to experience pirate problem.

I have made arrangement with a courier agent in the Labuan Island sea port to deliver the package to you, including my business money for safety reason.
Please call me on my UK mobile ( +447-031745863 ) immediately ... My mobile is on roaming to receive your calls anytime, anywhere.
Also provide the below details information requested to receive the package.
*Your complete name .
*Your receiving address:
*Your Email address:
*A direct telephone number to reach you:

I will be coming to meet you within 14 days as soon as my ship arrive the final destination . I’ve always hope to meet you; I am looking forward to that day with all my heart. I am preparing myself for you each day. Imagining what you could do when you come to pick me from the airport. What would you do? Will you kiss me, I will be very shy at first, but I will make the move to kiss you because I’m the man. No matter what, you are for me and I will love you regardless anything. I hope to grow old with you for the rest of my life. To celebrate good times with you and support each other through the bad times.
Marriage is a journey that we will grow together through. We will learn things about each other every day. We will not always have good times but we will always love each other and work through our problems. My love is forever. So I promise you forever. We will have fun watching football games, taking walks, and watching movies. I look forward to that day and until then; I will be counting the days left and my heart full of love just for you.
Please respond immediately
Love always
Collman

SCAMPOLICE GROUP. SCAMMER MESSAGES DATABASE (http://scampolice63.blogspot.jp/)
Anne Jackson's blog: Delivery the packagae by scampolice (http://annejackson4.blogspot.jp/2013/11/delivery-packagae-by-scampolice.html)
https://www.facebook.com/collman.hilton

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ribshaw

11-21-2013, 08:49 AM

LOUISVILLE, KY (WAVE) - No matter how smart you are thieves are always going to test you in an effort to steal your money. We have a warning from the Better Business Bureau about the latest phishing scam going around and why is this one successful.

In this latest version, people get a call from someone claiming to work at Verizon to tell you about a credit on your account. In order to get it, you have to go to a website – a website that asks for personal information.

The BBB says it's because the crooks have been able to stay one step ahead of authorities. Reanna Smith-Hamblin, BBB vice president of communications, says this scam has been shut down before.

They've actually started the scam and then authorities will shut down the fake website and then they'll get another website up and going again," said Smith-Hamblin.

The BBB says you should think about this - there is no reason in the world for Verizon, or any company you have an account with, to request your personal information because they already have it.

The same holds true for the IRS - another name scammers are using to get you to give up your information.

If you ever have any doubt, contact your company using a number you know.

Louisville BBB issues phishing scam warning - wave3.com-Louisville News, Weather & Sports (http://www.wave3.com/story/24004586/louisville-bbb-issues-phishing-scam-warning)

ribshaw

11-21-2013, 09:25 AM

I have always loved flipping through the classifieds looking at opportunities for sale. And owning a mine or well has a certain appeal so I could see it, but I don't know anything about either.. There was an episode of Hustle where they salted the mine by shooting a rat with a shotgun filled with gold dust. Know the tricks before you buy a mine or a well I suppose.

Postal inspectors uncovered a $36 million scam with hundreds of victims. Many are asking how did hundreds of investors get taken?
In this particular case, the con artists knew exactly how to outsmart their victims.
"I've been very blessed. The good Lord has taken care of me well. I make a lot of money, and have a lot of fun," says Gary Milby in video taken in a hotel room.

Milby is pitching his company, Mid-America Oil and Gas, to potential investors.

"We guarantee production. These wells that I'm offering you folks today are going to last longer than I'm going to live," says Milby.

Milby provided a detailed prospectus, as well as what seemed like a strong argument on why investors should trust him.

"How many of those wells have productive? All of them? You're batting 100%? That's great. That sounds phenomenal in the oil business," says Robert Buchner, a lawyer and fraud victim.

Buchner asked Milby those questions. Buchner had invested in similar projects with other companies.
"He basically guaranteed the wells would be productive and investors would make money," says Buechner.

Buechner was intrigued and did his due diligence, including visiting the the oil wells to see them first-hand. As a picture shows, Buechner witnessed oil gushing out of the wells and was impressed.

"He would say 'oh my gosh. This is going to be 60 barrels a day this looks like a real winner, 90 barrels a day,'" says Buechner.

The truth: it was all a show.

"What we find is that they pumped that oil in and staged it for the investors to make an impression on them," says Roberta Bottoms, a U.S. postal inspector.
Postal inspectors say the presentations and the demonstration at the oil wells were all part of a scam.
"It's another tactic they used to try and make people make a decision quickly and it plays on the investors' emotions," says Bottoms.

Gary Milby, along with attorney Brian Coffman, lured more than 260 victims into this scam. The total losses are more than $36 million.

"Brian Coffman was the wizard in the Wizard of Oz movie. You pull back the curtain he was the one always pulling the strings," says Bottoms.

Inspectors found Coffman was depositing investors' funds into accounts he and his family controlled. The money bought condos and luxury items.

"He bought a yacht that was named 'For Your Eyes Only,'" says Bottoms. "The yacht was purchased with investors funds and valued at $1.5 million."

The scam began to unravel when investors starting asking questions about their statements.

"The big problem was we were not getting the money we were promised," says Buechner.

Buechner says he did everything he could to research the investment. The problem was the con artists in this case outsmarted the victims.

"This isn't a case of inadequate due diligence done," says Buechner. "The due diligence was flawed, because you didn't get the right answers. I don't know how you get right answers, when you ask the right questions when people purposely give you the wrong answers."
Bryan Coffman and Gary Milby were both charged with eight counts of mail fraud and nine counts of wire fraud. Milby was sentenced to 20 years in prison and Brian Coffman received 25.

Con artist tricked victims in oil investment scam - KTIV News 4 Sioux City IA: News, Weather and Sports (http://www.ktiv.com/story/24021399/2013/11/20/con-artist-tricked-victims-in-oil-investment-scam)

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ribshaw

11-21-2013, 09:31 AM

Done by survey of planners.

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littleroundman

11-21-2013, 09:38 AM

https://postalinspectors.uspis.gov/images/Internet-Banner.jpg

Investment Fraud (Ponzi Schemes)

Even smart investors can fall for a well-orchestrated Ponzi scheme. That’s because it offers high rates of return practically impossible to match in any marketplace—for good reason. A Ponzi scheme relies on money from investors, rather than from actual profit, to pay the promised returns, dooming it to failure. The earnings—if there are any—will be less than the payments, and the scheme eventually will collapse.

Named for Charles Ponzi (https://postalinspectors.uspis.gov/radDocs/consumer/Ponzi_vs_USPIS.html), a Boston man convicted in 1920 for duping about 30,000 Americans of an estimated $10 million, the scam works just as well today as it did back then. Ponzi schemes are usually marketed by slick fraudsters who surround themselves with the trappings of legitimacy—nice office space, a receptionist, investment counselors, and professionally designed color brochures describing the investment. Bernie Madoff was hardly an original thinker.

There’s only one thing you can count on in a Ponzi scheme: The money you invest will be money lost. You may not even receive the promised interest—and if you do, it’s usually paid late.

If you answer “yes” to any of the following questions, you’re probably dealing with a swindler:

Does the promoter make it sound as if you can't lose?

Are you promised an unusually high rate of return or interest payment on your capital?
Are you pressured to make a quick decision because new investment units “are selling fast?”
Does the promoter have prior successful experience in the investment area being promoted?

Protect yourself. Be suspicious of any deal that promises a fantastic return with little risk. Know whom you are dealing with. Check the company’s reputation with your local Better Business Bureau, or state Attorney General’s Office. Protect your retirement nest egg.

If you believe you’ve been defrauded in any scheme that involves the U.S. Mail, report the incident to Postal Inspectors online (https://postalinspectors.uspis.gov/contactUs/filecomplaint.aspx) or by calling 1-877-876-2455.

littleroundman

11-21-2013, 09:41 AM

Citadel Malware Continues to Deliver Reveton Ransomware in Attempts to Extort Money

The FBI’s Internet Crime Complaint Center (IC3) and the Department of Homeland Security (DHS) have recently received complaints regarding a ransomware campaign using the name of DHS to extort money from unsuspecting victims.

In May 2012, the IC3 posted an alert about the Citadel malware platform used to deliver ransomware known as Reveton. The ransomware directs victims to a download website, at which time it is installed on their computers. Ransomware is used to intimidate victims into paying a fine to “unlock” their computers. The ransomware has been called “FBI Ransomware” because it frequently uses the FBI’s name, but similar ransomware campaigns have used the names of other law enforcement agencies such as DHS and IC3.

As in other variations, the ransomware using the name of DHS produces a warning that accuses victims of violating various U.S. laws and locks their computers. To unlock their computers and avoid legal issues, victims are told they must pay a $300 fine via a prepaid money card.

This is not a legitimate communication from law enforcement, but rather is an attempt to extort money from the victim. If you have received this or something similar, do not follow the instructions in the warning, and do not attempt to pay the fine.

It is suggested that you:

Contact a reputable computer expert to assist with removing the malware.
File a complaint at www.IC3.gov (http://www.IC3.gov).
Keep operating systems and legitimate antivirus and antispyware software updated.

littleroundman

11-21-2013, 09:43 AM

Ransomware Purporting to be from the FBI is Targeting OS X Mac Users

In May 2012, the Internet Crime Complaint Center posted an alert about the Citadel malware platform used to deliver ransomware known as Reveton. The ransomware directs victims to a drive-by download website, at which time it is installed on their computers.

Ransomware is used to intimidate victims into paying a fine to “unlock” their computers. Paying the fine does nothing to solve the problem with the computer; do not follow the ransomware instructions. The ransomware has been called “FBI Ransomware” because it uses the FBI’s name.

The newest version of ransomware targets OS X Mac users. This new version is not malware; it appears as a webpage that uses JavaScript to load numerous iframes (browser windows) and requires victims to close each iframe. The cyber criminals anticipate victims will pay the requested ransom before realizing all iframes need to be closed.

The ransomware is pushed to victims’ computers when they browse common websites, specifically when they query popular search terms.

Once the web browser is exploited, the victim’s computer displays a pop-up warning that appears to be from the FBI. Cyber criminals use “FBI.gov” within the URL to make the warning appear more legitimate.

As the FBI saw in 2012, the warning accuses victims of violating various U.S. laws, then locks the user’s computer. To unlock the computer and avoid legal issues, victims are told they must pay a $300 fine via a prepaid money card. Attempts to close the warning page results in additional messages that reappear each time victims try to close their web browser.

The simplest way to remove the ransomware’s iframes is by clicking on the Safari menu and choosing the “Reset Safari,” option, making sure all check boxes are selected. You may also hold down the Shift key while relaunching Safari, which will prevent Safari from reopening windows and tabs from the previous session. Victims can also disable the reopening feature across OS X from the General pane of System Preferences.

Ransomware messages are an attempt to extort money. If you have received a ransomware message, do not follow payment instructions. Be sure to file a complaint at Internet Crime Complaint Center (IC3) | Home (http://www.IC3.gov).

littleroundman

11-21-2013, 09:45 AM

Cyber Criminals Continue to Use Spear-Phishing Attacks to Compromise Computer Networks

The FBI has seen an increase in criminals who use spear-phishing attacks to target multiple industry sectors. These attacks allow criminals to access private computer networks. They exploit that access to create fake identities, steal intellectual property, and compromise
financial credentials to steal money from victims’ accounts.

In spear-phishing attacks, cyber criminals target victims because of their involvement in an industry or organization they wish to compromise. Often, the e-mails contain accurate information about victims obtained via a previous intrusion or from data posted on social networking sites, blogs, or other websites. This information adds a veneer of legitimacy to the message, increasing the chances the victims will open the e-mail and respond as directed.

Recent attacks have convinced victims that software or credentials they use to access specific websites needs to be updated. The e-mail contains a link for completing the update. If victims click the link, they are taken to a fraudulent website through which malicious software (malware) harvests details such as the victim’s usernames and passwords, bank account details, credit card numbers, and other personal information. The criminals can also gain access to private networks and cause disruptions or steal intellectual property and trade secrets.

To avoid becoming a victim, keep in mind that online businesses, including banks and merchants, typically will not ask for personal information, such as usernames and passwords, via e-mail. When in doubt either call the company directly or open your computer’s Internet browser and type the known website’s address. Don’t use the telephone number contained in the e-mail, which is likely to be fraudulent as well.

In general, avoid following links sent in e-mails, especially when the sender is someone you do not know or appears to be from a business advising that your account information needs updated.

Keep your computer’s anti-virus software and firewalls updated. Many of the latest browsers have a built-in phishing filter that should be enabled for additional protection.

If you believe you may have fallen victim to a spear-phishing attack, file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov/ (http://www.ic3.gov/).

littleroundman

11-21-2013, 09:47 AM

Cyber Criminals Using Photo-Sharing Programs to Compromise Computers

The FBI has seen an increase in cyber criminals who use online photo-sharing programs to perpetrate scams and harm victims’ computers.

These criminals advertise vehicles online but will not provide pictures in the advertisement. They will send photos on request. Sometimes the photo is a single file sent as an e-mail attachment, and sometimes the victim receives a link to an online photo gallery.

The photos can and often contain malicious software that infects the victim’s computer, directing the user to fake websites that look nearly identical to the real sites where the original advertisement was seen. The cyber criminals run all aspects of these fake websites, including “tech support” or “live chat support” and any “recommended” escrow services. After the victim agrees to purchase the item and makes the payment, the criminals stop responding to correspondence. The victims never receive any merchandise.

The FBI urges consumers to protect themselves when shopping online. Here are a few tips for staying safe:

Be cautious if you lose an auction on an auction site but the seller contacts you later saying the original bidder fell through.
Make sure websites are secure and authenticated before you purchase an item online. Use only well-known escrow services.
Research to determine if a car dealership is real and how long it has been in business.
Be wary if the price for the item you’d like to buy is severely undervalued; if it is, the item is likely fraudulent.
Scan files before downloading them to your computer.
Keep your computer software, including the operating system, updated with the latest patches.
Ensure your anti-virus software and firewalls are current—they can help prevent malware infections.

If you have fallen victim to this type of scam, file a complaint with the Internet Crime Complaint Center at www.ic3.gov (http://www.ic3.gov).

ribshaw

11-21-2013, 09:50 AM

WTF?????????????????

Massachusetts police have admitted to paying a bitcoin ransom after being infected by the Cryptolocker ransomware.

The Cryptolocker malware infects a computer, normally via a legitimate-looking email that urges the reader to open an attachment often posing as a voicemail, fax, invoice or details of a suspicious transaction that is being queried.

Once the Windows computer is infected, the malware encrypts the user's hard drive and then begins displaying a countdown timer, while demanding payment for the release of the data of 2 bitcoins – an almost untraceable, peer-to-peer digital online currency – which at current exchange rates equates to about £832 or $1338.

“(The virus) is so complicated and successful that you have to buy these bitcoins, which we had never heard of,” Swansea Police Lt. Gregory Ryan talking to the Herald News. “It was an education for (those who) had to deal with it.”
Essential operational computers were not affected

Ryan insisted that the Massachusetts police systems were now clear of infection, and that essential operational computers were not affected, nor was there any data stolen.

The FBI is currently investigating the virus infection of the police computer, which is thought to have evolved over the last year and originated from somewhere within former Soviet nations such as Ukraine and Russia.
Do not click on any attachments

The Cryptolocker malware is not new, but has recently become more prevalent, prompting the UK’s National Crime Agency (NCA) to put out an alert on 15 November warning that emails pretending to be from banks and financial institutions are being sent to small and medium businesses, as well as millions of bank customers.

NCA advised users not to click on any attachments like those described and to be suspicious of any emails that appear to come from a bank or other financial institution.

If a computer becomes infected it should immediately be disconnected from any networks and a professional called in to clear the machine. However, the current state of encryption technology means that it is unlikely the encryption can be unscrambled, and therefore the hard drive will likely have to be erased and restored from a backup.

US police force pay bitcoin ransom in Cryptolocker malware scam | Technology | theguardian.com (http://www.theguardian.com/technology/2013/nov/21/us-police-force-pay-bitcoin-ransom-in-cryptolocker-malware-scam)

=============================================

A few sensible precautions will help minimise the chances of a CrytoLocker attack. So what are our top tips?

• Back up your files. If you use an external hard drive, don't leave it connected to your PC unless you are backing up. Alternatively, pay for an online back-up service – but bear in mind you may still be vulnerable if your backed-up files are mapped as a network drive. Check with your provider if you are unsure.

• Create files in the Cloud and upload photos to online accounts like Flickr or Picasa.

• Switch to a spam- and virus-filtered email service. Google Mail, for example, does not allow you to receive or send executable files (that can install viruses) as email attachments, even if they are hidden in zip files. (It also does not allow you to send them).

• Don't go to online porn sites, which are often the source of malware downloads. Take care when clicking on adverts; never open Twitter links and attachments from people you don't know or trust.

• Make sure your operating system is up-to-date with the latest security.

• Install the latest versions of your internet browsers and update add-ons such as Java and Adobe Flash.

• Get reputable anti-virus software and ensure you update it frequently.

• On Windows 7, double-check that you have set up System Restore points or, if you are using Windows 8, configure it to keep the "file history".

• Act quickly. If you do accidentally download a dodgy attachment, bear in mind it is likely to take some time for the encryption to take place. If you immediately download and run an anti-virus programme, such as the free anti-virus toolkit available from Sophos, it could destroy the CryptoLocker before all your files have been encrypted – however, you will permanently lose affected files.

• Encrypt the files you particularly want to keep private, such as documents containing your passwords or personal information, to prevent criminals from reading what's in them. Read this useful "Ask Jack" post on the Guardian technology blog to find out more about encrypting your files.

10 ways to beat CryptoLocker | Money | The Guardian (http://www.theguardian.com/money/2013/oct/19/10-ways-beat-cryptolocker-protect-files)

littleroundman

11-21-2013, 09:51 AM

Smartphone Users Should be Aware of Malware Targeting Mobile Devices and Safety Measures to Help Avoid Compromise

The IC3 has been made aware of various malware attacking Android operating systems for mobile devices. Some of the latest known versions of this type of malware are Loozfon and FinFisher. Loozfon is an information-stealing piece of malware. Criminals use different variants to lure the victims. One version is a work-at-home opportunity that promises a profitable payday just for sending out e-mail. A link within these advertisements leads to a website that is designed to push Loozfon on the user’s device. The malicious application steals contact details from the user’s address book and the infected device’s phone number.

FinFisher is a spyware capable of taking over the components of a mobile device. When installed the mobile device can be remotely controlled and monitored no matter where the Target is located. FinFisher can be easily transmitted to a smartphone when the user visits a specific web link or opens a text message masquerading as a system update.

Loozfon and FinFisher are just two examples of malware used by criminals to lure users into compromising their devices.

Safety tips to protect your mobile device:

When purchasing a smartphone, know the features of the device, including the default settings. Turn off features of the device not needed to minimize the attack surface of the device.

Depending on the type of phone, the operating system may have encryption available. This can be used to protect the user’s personal data in the case of loss or theft.

With the growth of the application market for mobile devices, users should look at the reviews of the developer/company who published the application.

Review and understand the permissions you are giving when you download applications.

Passcode protect your mobile device. This is the first layer of physical security to protect the contents of the device. In conjunction with the passcode, enable the screen lock feature after a few minutes of inactivity.

Obtain malware protection for your mobile device. Look for applications that specialize in antivirus or file integrity that helps protect your device from rogue applications and malware.

Be aware of applications that enable geo-location. The application will track the user’s location anywhere. This application can be used for marketing, but can also be used by malicious actors, raising concerns of assisting a possible stalker and/or burglaries.

Jailbreak or rooting is used to remove certain restrictions imposed by the device manufacturer or cell phone carrier. This allows the user nearly unregulated control over what programs can be installed and how the device can be used. However, this procedure often involves exploiting significant security vulnerabilities and increases the attack surface of the device. Anytime an application or service runs in “unrestricted” or “system” level within an operation system, it allows any compromise to take full control of the device.

Do not allow your device to connect to unknown wireless networks. These networks could be rogue access points that capture information passed between your device and a legitimate server.

If you decide to sell your device or trade it in, make sure you wipe the device (reset it to factory default) to avoid leaving personal data on the device.

Smartphones require updates to run applications and firmware. If users neglect this, it increases the risk of having their device hacked or compromised.

Avoid clicking on or otherwise downloading software or links from unknown sources.

Use the same precautions on your mobile phone as you would on your computer when using the Internet.

If you have been a victim of an Internet scam or have received an e-mail that you believe was an attempted scam, please file a complaint at www.IC3.gov (http://www.IC3.gov).

ribshaw

11-21-2013, 09:55 AM

SAN RAMON -- The voice on the phone was "clear, strong and firm," recalled San Ramon resident Addy Behrouzi. The persuasive call made her stop in her tracks and forget everything else she planned to do that morning.

The male caller, who spoke to her last week, claimed he was calling from the Internal Revenue Service. He told her: "Your husband is about to go to jail," Behrouzi recalled.

The man told her that her husband hadn't paid $8,500 in debts to the IRS. The caller warned that if it wasn't taken care of right away, her husband could face imprisonment and her family could be deported, despite the fact that they have been citizens for many years.

Police say that conversation kicked off a two-hour phone call and journey through the San Ramon Valley, as the caller led Behrouzi step-by-step to the bank, and to three pharmacies, where she bought about 20 Green Dot "MoneyPak" pre-paid debit cards to pay off those looming debts.

By the end of it, the scammer had taken her for a ride -- in more ways than one. She was left with $8,500 less in her savings than when she woke up that day.

"I was totally fooled," Behrouzi said. "I did exactly what he wanted me to do. I was like a tool in his hands. I was like Play-Doh for a couple of hours."

Behrouzi is not alone. According to the IRS, she is one of many people nationwide who have fallen prey to what the IRS calls a "sophisticated" and "pervasive" telephone scam that especially targets recent immigrants. Victims are fooled into thinking that they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer -- or suffer the consequences.

San Ramon police Detective Jason Barnes said he knows of one other reported instance of the scam in San Ramon, which happened Nov. 11, the day before Behrouzi was scammed. But that first scam was averted when a convenience store clerk, who saw the victim trying to buy many pre-paid cards, warned the victim that it might be a scam.

Raphael Tulino, IRS spokesman for Northern California, said scam victims have popped up in nearly every state. But he first heard of victims, mainly South Asian Indian immigrants in Fremont, this summer. In fact, the IRS national office put out a news release warning of the scam two weeks ago.

He said the scammers use "pretty nuanced techniques" such as using fake names and IRS badge numbers and may even be able to fake the IRS toll free number on caller ID. Their calls can even sometimes mimic the sounds of a call center in the background.

"This particular scam is particularly sinister -- because it seems really convincing," he said.

But the bottom line is the IRS doesn't communicate by phone, and its first contact with a taxpayer on such an issue generally is via regular mail. Also it doesn't ask for credit cards by phone, nor pre-paid debit cards or wire transfers to pay for debts, he said.

Behrouzi said she never thought she'd fall for such a scam.

"But I was totally fooled," she said. "I was scared the whole time I was talking to the guy."

It bothers her even more knowing she was targeted because she was an immigrant. She immigrated from Iran to the United States in 1988 and has called San Ramon Valley her home for the past 15 years.

Yet, as a member of the Baha'i faith, she said she believes in the idea of peace and oneness and serving others, so she wanted to let others know what happened to her to help prevent others from being taken in.

"I wasn't expecting anything like this to happen to me ... but I thought, I'll go public with this to help others -- and who knows?" she said.

Contact Joyce Tsai at 925-847-2123. Follow her at Twitter.com/JoyceTsaiNews.

SIGNS OF A POSSIBLE SCAM

You could be getting scammed, if a phone caller:
Tells you that you owe thousands to the IRS that needs to be paid right away using credit cards, pre-paid debit cards or wire transfers
Threatens jail time, deportation or driver's license revocation if you don't pay
Uses common names and IRS badges to identify themselves
Calls from a spoofed IRS toll free number on caller ID, making it look as if it is coming from the IRS
Sends bogus IRS emails to support their calls
Uses background noise mimicking the sounds of call center activity
Calls back soon after and impersonates the local police or DMV

The IRS will NOT:

Call you to let you know of a tax issue; it would use regular mail
Ask for credit cards over the phone
Ask for debts to be paid with a pre-paid debit card or wire transfer

-- Source: Internal Revenue Service

Immigrants targeted in sophisticated phone scam - San Jose Mercury News (http://www.mercurynews.com/crime-courts/ci_24557346/immigrants-targeted-sophisticated-phone-scam)

ribshaw

11-21-2013, 10:18 AM

By James Saft

(Reuters) - Things have come to a pretty pass when Ponzi schemes are luring in the chumps with promises of only a 5 percent return.

A Federal judge on Monday ruled that Anthony J. Lupas, a Pennsylvania Alzheimer's sufferer and accused Ponzi king, does not have the mental capacity to stand trial for 31 counts of fraud and conspiracy. (here)

Prosecutors say the 78-year-old's alleged scam fell apart in 2011 after he fell, injured his head and could not keep up with the payouts. The reported details of the scheme, whereby Lupas is alleged to have relieved investors of $6 million, are unremarkable, save one: he was only promising a 5 percent annual return.

That 5 percent figure is either, in a perverse way, the triumph of monetary policy or it is, even more disturbingly, a sign that we live in a very low-return world.

You see in order to run a successful (and long-running) Ponzi scheme you are looking for a sweet spot in terms of the fantasy gains you promise: not so high as to raise eyebrows but juicy enough to cause the salivary glands to kick in.

After all a Ponzi scheme, which makes payments to existing investors out of the funds it attracts from new ones, needs to keep attracting investors or it will collapse.

Think about Bernie Madoff, who perpetrated the largest Ponzi scheme in U.S. history by offering investors a metronome-like 12 percent a year.

That, however, was back in the go-go 1990s and 2000s, when everyone with a 401k and a dream thought they could make 10 percent a year with their eyes closed. Their eyes were closed all right, but mostly to the risks.

Now, to be fair, Lupas was offering a 5 percent tax-free return (after all, if the investment is an illusion so must be the tax liability), so for higher-rate investors it was a bit more of a lure. And I suppose if you are only paying out a 5 percent dividend it would take a bit longer before you'd paid out all of your capital in 'returns'.

It is possible too that the 5 percent figure was calibrated to attract sober-sided investors, and that the low returns in turn made them less likely to ask questions.

Still, 5 percent is not much of a dream to be offering. It is a bit like setting out to run a love fraud by posing on the Internet as an overweight middle-aged man.

A NEW AGE?

So I think this particular case is telling us something new. It is not just the old story of greed, but something a bit closer to desperation. After the past decade of booms, busts and bubbles, investors are facing a world in which it is ever more apparent that it is hard to make even a modest return.

That someone might meet this unmet need with a fraud is only a delicious irony.

In part, we might be able to explain, not blame, this by looking at monetary policy. Keeping interest rates pinned so low for so long has put many savers, especially the elderly, in an increasingly uncomfortable position. Particularly if they don't see themselves as risk-takers, there are really precious few alternatives out there (by which I mean none) offering what they've become accustomed to getting.

So while the intention of monetary policy is to push investors to take on more risk, it is here having the effect of pushing them into the hands of someone offering what appears to be a fraudulent (but safe!) 5 percent.

The other possibility is that monetary policy isn't creating this world of low returns, only reacting to it.

William Bernstein, of Efficient Frontier Advisors, published a piece recently describing what he called the "Paradox of Wealth," a tendency for economic growth to give rise to low returns. (here)

This happens, Bernstein argues, because richer people defer consumption more willingly, leading to a surfeit of capital, because these low returns bring on speculative dupes (see Ponzi schemes) and because technological innovation speeds up. New technology is great, but requires a lot of capital and tends to make a bit of a mess of existing business models.

If we are living in a happy, rich and peaceful world, low returns on investment may prove a bit of a fly in the ointment. Ben Inker, of fund manager GMO, speculates about the damage of 100 years of 3.5 percent real returns.

"Every endowment and foundation will ﬁnd itself wasting away instead of maintaining itself for future generations. And the plight of public pension funds is probably not even worth calculating, as we would simply ﬁnd ourselves in a world where retirement as we now know it is fundamentally unaffordable, however we pretend we may have funded it so far."

That world, if it is arriving, may feature quite a few 5 percent Ponzi schemes.

(At the time of publication, Reuters columnist James Saft did not own any direct investments in securities mentioned in this article. He may be an owner indirectly as an investor in a fund. For previous columns by James Saft, click on)

The age of the 5 percent Ponzi scheme | Reuters (http://www.reuters.com/article/2013/11/20/us-saftonwealth-ponzi-idUSBRE9AJ1AJ20131120)

ribshaw

11-22-2013, 11:20 AM

A scam that attracted large numbers of victims who dreamed of making a killing in sports betting went on for years

So how did it work?

“I`ve followed racing as best I could for a long time,” says an anonymous fraud victim.

An 85-year-old man is embarrassed by the fact that he rode his love of horses right into a scam.

“I thought this would be an opportunity to probably fulfill a childhood dream,” he says.

That dream was to spend time around horses and make a lot of money.

But he was lured in by a con-artist.

“He was very intellectual in his presentation and very persuasive, so I thought that I was dealing with a winner,” he says.

“He would sell a guaranteed winning method at the horse track. Guaranteed or your money back,” says Shari M Delaney, U.S. Postal Inspector.

Postal inspectors say for more than 10 years, the suspect in this case sent out flyers with big promises including making $4,500 a day or $38,000 the first two weeks. They even promised $136,000 in a month by only spending $10 dollars a day.

“The amount of money was outlandish – far-fetched and he just guaranteed he had a method that would pick winners at the track. All of his solicitations would have endorsements. Fake names of people saying they won multitudes of money,” says Delaney.

The whole thing was a scam. Victims were asked to pay anywhere from $50 to $1,500 dollars for the bogus method.

“I was disappointed, somewhat hurt, I felt betrayed,” the victim says.

There were hundreds of victims. Postal inspectors say many still write in asking questions or seeking guidance.

And when investigators tell them they`ve been scammed.

“They frequently ask if they are going to get their money back. That is all they care about is money. Day to day and most of the time I have to tell them no and it just breaks their heart,” says Delaney.

“They should be taught not to steal, not to rob, not to rip off other people. If punishment is necessary then they go through the legal system,” says the fraud victim.

Postal inspectors say the suspect in this case is showing signs of remorse.

“He is now promising to pay back all of his victims, he has written a personal note of apology to all of his victims saying give me a chance to get a legitimate job and I will pay you back,” says Delaney.

Inspectors say the suspect bought online lists of people interested in horse racing and gambling. He would then just do a mass mailing hoping large numbers of people would fall for his pitch.

Scam targets victims who want to make money in sports betting | WTKR.com (http://wtkr.com/2013/11/21/scam-targets-victims-who-want-to-make-money-in-sports-betting/)

ribshaw

11-23-2013, 11:06 AM

4 places to never use a debit card
If you must use debit, be sure to protect yourself properly

By Clark Howard

ClarkHoward.com

Debit card account fraud is on the rise. I want to tell you the best way I know to protect yourself.

If your credit card is compromised, the harm to you is relatively small. You contact the issuer to report false charges and you may have to do some paperwork, but no money leaves your hands. With debit card fraud, however, there is money that leaves your hands. And you have to fight to get your own money back. Unfortunately, it's now taking longer and longer to get that money back.

Under the law, banks have 10 business days to give you your money back in the event of debit card fraud. Visa and MasterCard, however, have set their own standard of 5 business days if a compromised debit card has either logo on it, as most do. Yet I'm hearing from callers that the true wait time to get your money back is substantially longer than either 5 or 10 business days.

Now, I know debit cards are popular because people got in over their heads spending money they didn't have on credit cards. Debit cards, in theory, allow you to spend only what you have. But the problem comes if a crook cracks your debit card. Then you have no money to pay your mortgage, your car loan or to buy gas or food, among other things. Your checks start bouncing and, depending on your bank or credit union, the institution may not cover the bounced check charges that result from debit card fraud.

There are 4 places you should beware of using a debit card at all costs:

Independent ATMs - You run the risk of skimmers. While skimmers can be found on bank ATMs, they're less likely because there are often security cameras in place.
Pay at the pump - Skimmers aren't the only danger to your wallet. The gas station will put a big hold on your account that could cause your checks to bounce. If you must pay with debit at gas station, go inside and pay at the cashier.
When you're buying online - Credit card is a much better option. If you don't get your merchandise, you can do a chargeback during a 60-day window.
At a restaurant - Because there is such high turnover at restaurants, you don't want a dishonest employee to get hold of your digits.

What if you absolutely must use debit in your life? If you are someone who would be financially devastated if your bank account were emptied, I suggest you open a second account and tie your debit card to it. Then fund the second account only with money that's used for debit card activity, so your principal account won't be at risk in the event of a breach. That's the best way I know to protect yourself.

4 places to never use a debit card | www.clarkhoward.com (http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/4-places-never-use-debit-card/nC3Nz/)

ribshaw

11-26-2013, 09:27 AM

A con man is a person who intentionally misleads another person, usually for personal financial gain. In recent history there have been a number of con men who have really stood out for either the wealth they amassed, or the ease with which they tricked people. This is a list of 10 of the most famous con men in recent history.

1. Frank Abagnale [Born: 1948]

Webabagnale

Frank Abagnale is a former cheque con artist, forger and imposter who, for five years in the 1960s, passed bad cheques worth more than $2.5 million in 26 countries. The recent blockbuster film Catch Me If You Can is based on his life. His first experience of fraud was as a youth when he used his father’s Mobil card to buy car parts that he would then sell back to the gas station for a lower price. He did not realise that his father was the one who had to foot the bill and when he was eventually confronted with the fraud, his mother sent him for four months to a juvenile correction facility.

After moving to New York, Frank lived solely on the income of his fraudulent activities. One of his most famous tricks was to print his own account number on fake bank deposit slips so that when clients of the bank deposited money, it would actually go in to his account. By the time the banks realised what had happened, Frank had taken $40,000 and run.

For two years, Abagnale travelled around the world free by masquerading as a Pan Am pilot. He was able to abuse the professional courtesy of other airlines to provide free transport for competing airline pilots if they had to move to another city at short notice. When he was nearly caught leaving a plane, he changed his masquerade to that of a Doctor. He worked as a medical supervisor for 11 months without detection. At other times he worked as a lawyer and a teacher.

He was eventually caught in France and spent six months in prison there. After that he was extradited to Sweden and imprisoned for a further six months. After a successful escape whilst travelling to the United States, he was finally given 12 years in Prison. He escaped from his prison by masquerading as an undercover officer of the Bureau of Prisons. He was once again captured in New York City and returned to jail. After serving only five years of his sentence, the US Federal Government offered him his freedom in return for helping the government against fraud and scam artists without pay.

He currently runs Abagnale and Associates, a financial fraud consultancy company and is a multi-millionaire.

2. Charles Ponzi [Born: 1882; Died: 1949]

Charles Ponzi

Ponzi, an Italian immigrant to the United States became one of the most famous con men in American history. While many people do not know the name Ponzi, the Ponzi Scheme is extremely well known and continues today in Internet Make Money Fast schemes. His early life is not entirely known as he was prone to fabricate stories about it. What is known is that he spent a short amount of time at University in Rome and, after dropping out, caught a boat to Boston, USA where he arrived with $2.50 in his pocket.

His early years in the United States were troublesome. He began working at a restaurant but was soon fired for playing tricks with the bills and shortchanging customers. His next job was working in a bank in Canada that catered to Italian immigrants. His knowledge of numbers helped him to do very well there. Unfortunately it turned out that the owner of the bank was stealing money from newly opened savings accounts to pay the interest on the interest bearing accounts and to cover bad investments. The bank owner eventually fled to Mexico and left Ponzi without a job. After writing a fraudulent cheque and spending a number of years in prison, Ponzi determined to become wealthy at any cost.

Once he had settled in to life on the outside, he discovered postal reply coupons through a letter that was sent to him from abroad. He realised that he could buy foreign coupons at massively devalued prices (because of price fixing after the war) and then resell them in the United States for a 400% profit. This was a form of arbitrage and it was legal. Ponzi began canvasses friends and acquaintances for money – promising them a 50% return or a doubling of their money in 90 days. He started his own company, the Securities Exchange Company, to promote the scheme.

The word of this great investment quickly spread and before long Ponzi was living in a luxurious mansion. He was bringing in cash at a fantastic rate, but the simplest financial analysis showed that he wasn’t making money, he was losing it rapidly. For every dollar he took in, he went more deeply into debt. As long as money kept flowing in, Ponzi would stay ahead of the eventual collapse.

People soon began to become suspicious and the press were starting to publish negative articles about him. Inevitably people were starting to demand their money. Shortly after, federal agents raided his office and shut it down. No stock of stamps was found and everyone that had invested their money with Ponzi lost every penny. It is probably that he lost tens of millions of dollars. Ponzi plead guilty of mail fraud and was sent to prison. After one escape he was returned to jail to complete his sentence. He was eventually deported back to Italy and he died there in poverty in 1949.

3. Joseph Weil [Born: 1877; Died: 1975]

Joe Weil

Joseph “Yellow Kid” Weil was one of the most famous con men in his era. Over the course of his career he is believed to have stolen over 8 million dollars. In his first job as a collector, he realized that his co-workers were collecting their debts but keeping a little part of the money for themselves. Weil started a protection racket – offering not to report their activities in return for a small portion of what they were taking.

He also used phony oil deals, women, fixed races, and an endless list of other tricks to steal from an increasingly gullible public. He could change his persona daily to further his gains: one day he was Dr. Henri Reuel, a noted geologist who travelled around and told his hosts that he was a representative for a big oil company while draining them of the cash they gave him to “invest in fuel.” The next day he was director of the Elysium Development Company, promising land to innocent believers while robbing them in recording and abstract fees. Or he was a chemist par excellence, who had discovered how to copy dollar bills; promising to increase your fortune, he would multiply your bill’s then take the booty once the police arrived.

In his autobiography, Weil writes:

“The desire to get something for nothing has been very costly to many people who have dealt with me and with other con men,” Weil writes. “But I have found that this is the way it works. The average person, in my estimation, is ninety-nine per cent animal and one per cent human. The ninety-nine per cent that is animal causes very little trouble. But the one per cent that is human causes all our woes. When people learn — as I doubt they will — that they can’t get something for nothing, crime will diminish and we shall live in greater harmony.”

4. Victor Lustig [Born: 1890; Died: 1947]

Victor Lustig

Victor Lustig was renowned as the Man who Sold the Eiffel Tower. He was born in Bohemia but later moved to Paris where he was able to con people on his frequent journeys between Paris and New York. His first con was to show people a device that could print $100 bills. The only problem, he would tell them, is that it only prints one bill every six hours. Many people paid him enormous amounts of money (usually over $30,000) for the device. In fact, the device contained two real hidden $100 bills – once they were spat out by the machine it would produce only blank paper. By the time the buyers discovered this, Lustig was well gone with their money.

In 1925, as France was recovering from the war, the upkeep of the Eiffel tower was an almost unbearable expense for the city of Paris. When Lustig read about this in a paper, he came up with his most brilliant idea. After forging government credentials, he invited six scrap metal dealers to a secret meeting in a hotel. He explained that the City could not afford to keep the tower and that they had to sell it for scrap. He told them the secrecy of the meeting and all future dealings was due to the fact that the public may become distressed at the idea of the removal of the tower.

While it seems implausible, at the time the tower was built it was meant to be temporary and this happened just 18 years after the original date for removal of the tower. Lustig took the dealers in a limousine to tour the tower. One of the dealers, Andre Poisson was convinced that the tale was legitimate and he handed over the money. When he realised he had been conned, he was too embarrassed to tell the police and Lustig escaped with the money. One month later, he returned to Paris to try the whole scam again. This time it was reported to the police but Lustig managed to escape.

At one point, Lustig convinced Al Capone to invest $50,000 with him. He stored the money in a vault and returned it two months later, stating that the deal had fallen through. Capone, so impressed by Lustig’s honesty gave him $5,000 for his effort. In 1934, Lustig was found guilty of counterfeiting. He plead guilty and was sentenced to 20 years in Alcatraz. In 1947 he died of pneumonia whilst in jail in Springfield, Missouri.

5. George Parker [Born: 1870; Died: 1936]

Unknown

Parker was one of the most audacious con men in American history. He made his living selling New York’s public landmarks to unwary tourists. His favorite object for sale was the Brooklyn Bridge, which he sold twice a week for years. He convinced his marks that they could make a fortune by controlling access to the roadway. More than once police had to remove naive buyers from the bridge as they tried to erect toll barriers.

Other public landmarks he sold included the original Madison Square Garden, the Metropolitan Museum of Art, Grant’s Tomb, and the Statue of Liberty. George had many different methods for making his sales. When he sold Grant’s Tomb, he would often pose as the general’s grandson. He even set up a fake “office” to handle his real estate swindles. He produced impressive forged documents to prove that he was the legal owner of whatever property he was selling.

Parker was convicted of fraud three times. After his third conviction on December 17th, 1928 he was sentenced to a life term at Sing Sing Prison. He spent the last eight years of his life behind bars. He was popular among guards and fellow inmates who enjoyed hearing of his exploits. George is remembered as one of the most successful con men in the history of the United States, as well as one of history’s most talented hoaxers. His exploits have passed into popular culture, giving rise to phrases such as “and if you believe that, I have a bridge to sell you”, a popular way of expressing a belief that someone is gullible.

6. Soapy Smith [Born: 1860; Died: 1898]

Soapy Smith 1898

Soapy Smith (born Jefferson Randolph Smith) was an American con artist and gangster who had a major hand in the organized criminal operations of Denver, Colorado, Creede, Colorado, and Skagway, Alaska from 1879 to 1898. He is perhaps the most famous “sure-thing” bunko man of the old west. Some time in the late 1870s or early 1880s, Smith began duping entire crowds with a ploy the Denver newspapers dubbed The Prize Package Soap Sell Swindle.

Jefferson would open his “tripe and keister” (display case on a tripod) on a busy street corner. Piling ordinary soap cakes onto the keister top, he would describe their wonders. As he spoke to the growing crowd of curious onlookers, he would pull out his wallet and begin wrapping paper money ranging from one dollar up to one hundred dollars, around a select few of the bars. He then finished each bar by wrapping plain paper around it to hide the money. He mixed the money-wrapped packages in with wrapped bars containing no money. He then sold the soap to the crowd for a dollar a cake.

A shill planted in the crowd would buy a bar, tear it open it, and loudly proclaim that he had won some money, waving it around for all to see. This performance had the desired effect of enticing the sale of the packages. More often than not, victims bought several bars before the sale was completed. Midway through the sale, Smith would announce that the hundred-dollar bill still remained in the pile, unpurchased. He then would auction off the remaining soap bars to the highest bidders.

Through the masterful art of manipulation and sleight-of-hand, the cakes of soap wrapped with money were hidden and replaced with packages holding no cash. It was assured that the only money “won” went to members of what became known as the “Soap Gang.” Soapy was eventually shot to death by a group he swindled in a card game.

7. Eduardo de Valfierno

Valfierno

Eduardo de Valfierno, who referred to himself as Marqués (marquis), was an Argentine con man who allegedly masterminded the theft of the Mona Lisa. Valfierno paid several men to steal the work of art from the Louvre, including museum employee Vincenzo Peruggia. On August 21, 1911 Peruggia hid the Mona Lisa under his coat and simply walked out the door.

Before the heist took place, Valfierno commissioned French art restorer and forger Yves Chaudron to make six copies of the Mona Lisa. The forgeries were then shipped to various parts of the world, readying them for the buyers he had lined up. Valfierno knew once the Mona Lisa was stolen it would be harder to smuggle copies past customs. After the heist the copies were delivered to their buyers, each thinking they had the original which had just been stolen for them. Because Valfierno just wanted to sell forgeries, he only needed the original Mona Lisa to disappear and never contacted Peruggia again after the crime. Eventually Peruggia was caught trying to sell the painting and it was returned to the Louvre in 1913.

8. James Hogue [Born: 1959]

Hogue.Mug

Hogue is a US impostor who most famously entered Princeton University by posing as a self-taught orphan. In 1986 Hogue enrolled in a Palo Alto High School as Jay Mitchell Huntsman, a 16-year-old orphan from Nevada. He had adopted the identity of a dead infant. A suspicious local reporter exposed him. In 1988 Hogue enrolled at Princeton University using the alias Alexi Indris Santana, a self-taught orphan from Utah. He deferred admission for one year because he had been convicted of the theft of bicycle frames in Utah. Hogue claimed in his application materials that he had slept outside in the Grand Canyon, raising sheep and reading philosophers. He violated his parole to enter class. For the next two years he lived as Santana and as a member of the track team. He was also admitted into the Ivy Club.

In 1991 Hogue’s real identity was exposed when Renee Pacheco, a student from the Palo Alto High School, recognized him. He was arrested for defrauding the university for $30,000 in financial aid and sentenced to three years in jail with 5 years probation and 100 hours of community service.

On May 16, 1993 Hogue made headlines again through his association with Harvard University. Having lied about his identity again, he was able to take a job as a security guard in one of Harvard’s on campus museums. A few months into his tenure, museum officials noticed that several gemstones on exhibit had been replaced with inexpensive fakes. Somerville police seized Hogue in his home and charged him with grand larceny to the tune of $50,000.

On March 12, 2007 Hogue pleaded guilty to a single felony count of theft of more than $15,000 in exchange for a prison sentence not to exceed 10 years, and prosecutors’ agreement to drop other theft and habitual criminal charges.

9. Robert Hendy-Freegard [Born: 1971]

40658668 Hendyfreegard300

Robert Hendy-Freegard is a British barman, car salesman, conman and impostor who masqueraded as an MI5 agent and fooled several people to go underground for fear of IRA assassination. He met his victims on social occasions or as customers in the pub or car dealership where he was working. He would reveal his “role” as an undercover agent for MI5, Special Branch or Scotland Yard working against the IRA. He would win them over, ask for money and make them do his bidding. He demanded that they cut off contact with family and friends, go through “loyalty tests” and live alone in poor conditions. He seduced five women, claiming that he wanted to marry them. Initially some of the victims refused to co-operate with the police because he had warned them that police would be double agents or MI5 agents performing another “loyalty test”.

Hendy-Freegard also seduced a newly married personal assistant who was taking care of his children. He told her he was with MI5 and forced her to cut contact with friends and family lest the IRA would kill her. He also took naked pictures of her and threatened to give them to her husband if she would not cooperate. She had to change her name and tell the deed poll officer it was because she was sexually abused as a child. Her loyalty tests included sleeping in Heathrow airport and on park benches for several nights and pretending to be a Jehovah’s Witness so that his bosses in MI5 would let them marry.

In 2002 Scotland Yard and the FBI organized a sting operation. First, the FBI bugged the phone of the American psychologist’s parents. Her mother told Hendy-Freegard she would hand over £10,000 but only in person. Hendy-Freegard met the mother in Heathrow airport where police apprehended him. He denied all charges and claimed they were part of a conspiracy against him and continued this story in the subsequent trial. On June 23, 2005, after an eight month trial, Blackfriars Crown Court convicted Robert Hendy-Freegard for two counts of kidnapping, 10 of theft and 8 of deception. On September 6, 2005 he was given a life sentence. Police doubt that they have discovered all the victims. On April 25, 2007, the BBC reported that Robert Hendy-Freegard had appealed against his kidnapping convictions and won. This means that the life sentence is revoked but he will still serve nine years for the other offences. He could be free by the end of 2007.

10. Bernard Cornfeld [Born: 1927; Died: 1995]

220Px-Cornfeld

Bernard Cornfeld was a prominent businessman and international financier who sold investments in US mutual funds. He was born in Turkey. When he moved to the US, he first worked as a social worker but became a mutual fund salesman in the 1950s. Although he suffered from a stammer, he had a natural gift for selling and when a schoolfriend’s father died, the two of them used the $3,000 insurance money to purchase and run an age and weight guessing stand at the Coney Island funfair.

In the 1960s, Cornfeld formed his own mutual fund selling company, Investors Overseas Services (IOS), which he incorporated outside the US with funds in Canada and headquarters in Geneva, Switzerland. Although the headquarters were offcially in Geneva, the main operational offices of IOS were in Ferney-Voltaire, France, a short drive from the Swiss border to Geneva—this was simply a means of avoiding the problems of obtaining Swiss work-permits for the many employees. During the next ten years, IOS raised in excess of $2.5 billion, bringing Cornfeld a personal fortune of more than $100 million. Cornfeld himself became known for conspicuous consumption with lavish parties. Socially, he was generous and jovial.

A group of 300 IOS employees complained to the Swiss authorities that Cornfeld and his co-founders pocketed part of the proceeds of a share issue raised among employees in 1969. Consequently he was charged with fraud in 1973 by the Swiss authorities. When Cornfeld visited Geneva, Swiss authorities arrested him. He served 11 months in a Swiss jail before being freed on a bail surety of $600,000. He returned to Beverly Hills, living less ostentatiously than in his previous years. He developed an obsession for health foods and vitamins, renounced red meat and seldom drank alcohol. He suffered a stroke and died of a cerebral aneurysm on 27th February 1995 in London, England.

Top 10 Famous Con Men - Listverse (http://listverse.com/2007/08/28/top-10-famous-con-men/)

ribshaw

11-30-2013, 03:48 PM

Some good tips on the link below, thought I would put up a few tips for Cyber Mondyay, along with a not so subtle hint if anyone has me in the secret Santa.

Cyber Monday Shopping Tips
November 27, 2013
by
Aditi Jhaveri
Consumer Education Specialist, FTC

Forget the turkey — are you craving some Cyber Monday deals? A little research can help you get the best deal and avoid hassles. Here are some tips to help you save some money and protect your financial information.

Read reviews. Type the name of the product or company into a search engine along with words like “review,” “complaint,” or “scam.” Be sure to read a few reviews — don’t rely on just one source.
Look for coupon codes. Search the store’s name with terms like “coupons,” “discounts,” or “free shipping.”
Know the terms. Find out what the refund/exchange policies are, and if there are any charges (like shipping costs or restocking fees) if you return a product.
Pay by credit card. Credit cards give you protections that other methods of payment may not. If there’s a problem, you have the right to dispute charges and temporarily withhold payment while your dispute is investigated.
Use secure checkout. Before you enter your credit card information online, check that the website address starts with “https”. The “s” stands for secure. If you don’t see the “s,” don’t enter your information.

Cyber Monday Shopping Tips | OnGuard Online (http://www.onguardonline.gov/blog/cyber-monday-shopping-tips)

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What Not To Do
Don’t send money to someone you don’t know.

Not an online seller you’ve never heard of — nor an online love interest who asks for money. It’s best to do business with sites you know and trust. If you buy items through an online auction, consider using an option that provides protection, like a credit card.

If you think you’ve found a good deal, but you aren’t familiar with the company, do some research. Type the company or product name into your favorite search engine with terms like “review,” “complaint” or “scam.” See what comes up – on the first page of results as well as on the later pages.

Never pay fees now for the promise of a big pay-off later — whether it’s for a loan, a job, or a so-called prize.
Don’t agree to deposit a check and wire money back.

No matter how convincing the story. By law, banks have to make funds from deposited checks available within days, but uncovering a fake check can take weeks. You’re responsible for the checks you deposit: If a check turns out to be a fake, you’re responsible for paying back the bank.
Don’t reply to messages asking for personal or financial information.

That goes whether the message comes as an email, a phone call, a text message, or an ad. Don’t click on links or call phone numbers included in the message, either. It’s called phishing. The crooks behind these messages are trying to trick you into revealing sensitive information. If you got a message like this and you are concerned about your account status, call the number on your credit or debit card — or your statement — and check on it.
Don’t play a foreign lottery.

It’s illegal to play a foreign lottery. And yet messages that tout your chances of winning a foreign lottery, or messages that claim you’ve already won can be so tempting. Inevitably, you’re asked to pay “taxes,” “fees,” or “customs duties” to collect your prize. If you send money to collect, you haven’t won anything. Indeed, you’ve lost whatever money you sent. You won’t get any money back

Avoiding Online Scams | OnGuard Online (http://www.onguardonline.gov/articles/0001-avoiding-online-scams)

ribshaw

12-02-2013, 12:33 PM

More than 30,000 mainland investors are believed to have been cheated of a combined HK$750 million in an alleged pyramid scheme run by a company in Hung Hom, police sources say.

Officers raided an office on Wednesday and arrested five people, including an American.

Documents and computer records seized suggest a pyramid scheme that, if confirmed, will be the largest the force has uncovered in recent years, according to police data from 2010.

Investigations found the company targeted mainlanders and turned away Hongkongers, a police source said.

Investors were lured with the promise of lucrative returns and told the company had investments in information technology in various countries and plans for a public listing, the source said.

"Initial investigations showed each of them was required to pay a HK$25,000 membership fee to join the company, which in return would give them lucrative dividends when the firm was listed on a stock market," he said.

They were also asked to introduce relatives and friends to join the scheme so that they themselves could generate more earnings, he added.

The Commercial Crime Bureau began looking into the company after more than 400 potential investors queued outside the office on Metropolis Drive on October 31 to join the scheme.

Bureau officers moved in a week later, picking up four local employees and the American, 53, on suspicion of breaching the Pyramid Schemes Prohibition Ordinance. They also seized HK$180,000 in cash.

The American is understood to be from another firm. Investigators are checking if the two companies are linked and are searching for executives of the Hung Hom office.

Another police source said the victims involved in the alleged scam were estimated to number in the tens of thousands.

"We are checking the total amount [of people] involved and … how long the company had been in operation," he said.

In December 2011, the Legislative Council passed a bill clarifying the definition of and prohibiting pyramid schemes.

The ordinance took effect in 2012, with stiff penalties for anyone who tried to recruit others to join such a scheme. Offenders face up to seven years' jail and a HK$1 million fine. Courts are also empowered to order perpetrators to compensate victims.

In pyramid schemes, participants have to pay membership fees and must recruit more members to profit. Any reward is entirely or substantially based on the expansion of the membership network, and any product or service offered has no real value. The scheme crashes when organisers abscond with the money.

But the law still allows multilevel marketing operations under clauses that permit direct marketing. Genuine multilevel marketing involves the sale of a legitimate product or service, such as insurance. Salespeople receive a share of the sales achieved by the people they recruit.

In the first half of the year, police received one complaint of pyramid selling involving HK$19 million. Last year, the force handled two complaints that involved a total of HK$45 million.

Yesterday, the five suspects were being held for questioning and none had been charged.

Police are appealing to anyone who may have conducted business dealings with the firm to contact officers on 2860 5012.

According to the company's website, it was founded in 2003 and is headquartered in the United States. It also has an office in Taiwan. It says the company provides unique cloud-based internet productivity and communications applications.

Police have issued the following warnings to the public: beware of get-rich-quick schemes; beware of anything that sounds too good to be true; and ignore persuasion and implied threats.

Tens of thousands snared in HK$750m alleged pyramid scheme | South China Morning Post (http://www.scmp.com/news/hong-kong/article/1350054/tens-thousands-snared-hk750m-alleged-pyramid-scheme)

ribshaw

12-02-2013, 01:04 PM

Almost 700 domains have been seized and taken offline after European and US authorities worked together to identify and remove fraudulent sites from the web.

I am not exactly the most computer savvy person, but I do like Scamadviser.com | check a website for risk | check if dodgey | check is a website s |check website is fake or a scam (http://www.scamadviser.com/check-website). Things like hidden ownership, dangerous locations, short duration of site, unsecure check out (no HTTPS), fake security tags- which will show as images rather than URLs are all red flags.

Stuff that seems to be selling for way less than on Amazon, Overstock, Ebay, etc. are always cause for concern.

In total 690 domains were seized under the 'In Our Sites – Transatlantic 3’ operation, which saw co-operation between 10 law enforcement agencies across eight countries. It brings the total number of domains seized since the operation began to 2,550.

The effort was led by Europol member states Belgium, Denmark, France, Hungary, Romania, Spain and the UK, and the US Homeland Security Investigations team. In the US 297 domains were seized while in Europe the number reached 393. Hong Kong authorities were also involved.

The domains hosted fraudulent sites that duped web users into buying counterfeit goods or failed to deliver promised items, and could often steal financial data provided as well. Europol director Rob Wainwright said the action proved the value of cross-agency teamwork.

“This operation is another good example of how transatlantic law enforcement co-operation works. It sends a signal to criminals that they should not feel safe anywhere,” he said.

“Unfortunately the economic downturn has meant that disposable income has gone down, which may tempt more people to buy products for prices that are too good to be true. Consumers should realise that by buying these products they risk supporting organised crime.”

The sites that have been seized now present a takedown notice to web users informing them that the site has been removed. Acting director of the US Immigration and Customs Enforcement (ICE) division John Sandweg said web users must be aware of the risks that many online sites pose.

“Counterfeiters take advantage of the holiday spirit of shoppers around the world and sell cheap fakes to unsuspecting consumers everywhere,” he said.

“Consumers need to protect themselves, their families, and their personal financial information from the criminal networks operating these bogus sites.”

Almost 700 domains seized in online fraud crackdown - IT News from V3.co.uk (http://www.v3.co.uk/v3-uk/news/2316445/almost-700-domains-seized-in-online-fraud-crackdown)

ribshaw

12-05-2013, 09:43 AM

Scam Alert -- How Fake Shipping Notifications are Fooling Holiday Shoppers
December 05, 2013

Scammers are taking advantage of the holiday shopping season with fake email shipping notifications that pose as FedEx, UPS or the United States Postal Service. This Cyber Monday,don't let these scams fool you into opening a virus on your computer.

How the Scam Works:

You receive an email message that appears to be a shipping notification for a package. You've been doing your holiday shopping online, so you figure it must be something you've ordered. Curious, you open the email and attachment.

When you click on the file, you find that it isn't a tracking notification after all. It's really a virus that will download to your computer. Typically, these viruses phish for personal and banking information on your machine. But the FBI recently warned about the resurgence of a type of virus called "ransomware." Once downloaded, this virus will lock your computer and urge you to pay a ransom to the scammer responsible.

Like all scams, this one has many variations. Scammers have posed as FedEx, UPS, USPS and even big online retailers, like Amazon. They also change up the email content. A common version of this scam is a fake delivery failure notification. Scammers claim the attached virus is the receipt you need to collect your package from the local office.

Tips to Avoid Email Scams:

Spot common email scams by following these tips:

Don't believe what you see. Scammers make emails appear to come from a reputable source. Just because it looks like an "@ups.com" address does not mean it's safe.

Be wary of unexpected emails that contain links or attachments. As always, do not click on links or open the files in unfamiliar emails.
Beware of pop-ups. Some pop-ups are designed to look like they've originated from your computer. If you see a pop-up that looks like an anti-virus software but warns of a problem that needs to be fixed with an extreme level of urgency, it may be a scam.
Watch for poor grammar and spelling. Scam emails often are riddled with typos.
Immediate action is necessary. Scam emails try to get you to act before you think by creating a sense of urgency. Don't fall for it.

For More Information

For more information about scams, see BBB's Scam Stopper. Check out FedEx and UPS websites for more information about fake shipping emails and examples of typical scams.

Note: FedEx and UPS are BBB Accredited Businesses.

Scam Alert -- How Fake Shipping Notifications are Fooling Holiday Shoppers (http://www.bbb.org/council/news-events/bbb-scam-alerts/2013/12/scam-alert-how-fake-shipping-notifications-are-fooling-holiday-shoppers/)

ribshaw

12-05-2013, 09:54 AM

BBB’s 12 Scams of Christmas
Posted on December 4, 2013 by Delta News Web

Anchorage, Alaska – Dec. 4, 2013 – Better Business Bureau serving Alaska, Oregon and Western Washington warns about common holiday scams and frauds:

1) Malware E-cards: Viruses and malware often travel in fraudulent holiday email cards. Don’t click on links or download attachments in unsolicited emails.

2) Stranded Grandkids: It’s the classic grandparent scam—verify identities before wiring money out of the country.

3) Counterfeit Gifts: Low prices on luxury goods almost always mean cheap counterfeits; purchase products from legitimate retailers and avoid too-good-to-be-true prices.

4) Pickpockets: Keep purses and wallets secure when shopping and avoid setting down bags while waiting in lines.

5) Stolen Gift Cards: Only purchase gift cards from reputable dealers, not online or from individuals to avoid common gift card frauds.

6) Fake Coupons: Be cautious when downloading digital coupons and be wary of sites that require personal information.

7) Santa Scammers: What could be more jolly than a letter from Santa addressed directly to your child? Make sure sites are real and not gathering data for identity theft purposes.

8) Fake Charities: Charities count on end-of-the-year giving, but be careful of scammers that set up fake charities with similar sounding names.

9) Bogus Websites: It’s easy to mimic real websites. Navigate to legitimate retailers through verified channels.

10) Travel Scams: With busy holiday travel, bargains may be tempting. Be cautious when booking through online ads and never wire money to persons unknown.

11) Romance Scams: Everyone wants a special someone under the mistletoe, so holidays are a prime time for scams. Be careful with online sweethearts who get cozy too fast or ask for money.

12) Puppy Scams: Be very careful buying pets online, especially at the holidays.

It’s not just Santa that’s watching this time of year, scammers and thieves are too. Check with BBB for tips and advice on all kinds of holiday shopping.

Don’t be a Scrooge; visit BBB’s News Center year-round for updates on local scams.

BBB’s 12 Scams of Christmas | Delta News Web (http://news.deltanewsweb.com/news/2013/12/04/bbbs-12-scams-of-christmas/)

scratchycat

12-05-2013, 11:25 AM

Great going here Ribshaw!!! I have seen a lot of these pop up in my email but have not had much time to spread the word or investigate. There are still people out there that get fooled by these scams and the more public exposure, the better. I just saw a new on on FB called GAS (Global All Share). Then here is one from a guy who joined my FB group to advertise and I deleted him after a couple of long messages.

Steve Czach (who says he is only trying to help people) - :duh:

well, payza hosed everyone, and will make dealing with Feeder Matrix difficult, it seems. Here is a 2 buck similar deal, that takes paypal ........ hope this helps some peeps :)
earnearn (http://www.earnearn.org/?mutant1)

ribshaw

12-10-2013, 11:35 AM

McLEAN, Va. (AP) — U.S. Rep. Alan Grayson of Florida lost $18 million in a scheme that cheated him and about 120 other investors out of more than $35 million, according to court papers.

The Virginia man who ran the scheme, William Dean Chapman, was sentenced Friday in federal court to 12 years in prison. Prosecutors say Chapman used the money to fund a lavish lifestyle including a Lamborghini, a Ferrari and a $3 million home.

In most of the court papers, Grayson's identity is protected — prosecutors say only that an elected official with the initials A.G. was the primary victim — but documents twice mention Grayson by name. The Democratic congressman on Monday confirmed he is the A.G. mentioned in the documents.

Nothing in the court papers suggests Grayson was anything but a victim of the scheme. Grayson, a former trial attorney, said he has had a long record for picking winning stocks, which formed the basis for his personal fortune.

The scheme worked like this: clients would turn over their stocks to Chapman as collateral for a loan, and Chapman would let customers borrow about 90 percent of the stocks' value.

If the stocks did badly, borrowers could walk away and keep the money they were loaned. But if the borrowers' stocks did well, they would repay the loan with interest, and Chapman was supposed to return the stocks to the investor at their increased value.

But, according to court papers, Chapman sold the stocks and had no way to fulfill his obligations if a client's stock portfolio did well.

"That's why (Chapman) is going to prison for a long, long time," Grayson said. "At least in the end, some kind of justice was served."

In Grayson's case, his stocks performed astronomically well while they were entrusted to Chapman and his company, Alexander Capital Markets.

Lawyers for Chapman said it was the strength of Grayson's stocks that caused Chapman's scheme to crumble. Chapman and Grayson negotiated a payment plan, according to court records, but it was not enough to keep Chapman's positions from collapsing.

"Because the return on A.G.'s commodities investments were so astronomical, ACM could not meet its obligations under the loan agreements," defense lawyer Whitney Minter wrote.

In 2007, Grayson had $9.35 million in a stock portfolio that Chapman was supposed to be holding as collateral. In that year alone, the portfolio's value increased by 147 percent, to $23 million, according to a chart in the court documents.

Chapman's lawyer did not immediately return a call. Chapman, of Sterling, Va., pleaded guilty in May but tried at Friday's sentencing hearing to withdraw the plea, saying he felt pressured to plead and that he never intended to defraud.

It is not the first time Grayson, who represents parts of the Orlando area, has lost tens of millions of dollars in a fraud scheme. In 2009, he won a $34 million judgment after filing a lawsuit in South Carolina under federal racketeering laws against a company called Derivium Capital. Derivium's business plan for hedging an investor's stock profile was nearly identical to the plan outline by Chapman.

Grayson said he first entered into deals with Chapman in 2003, well before the deal with Derivium went south, so he had no reason to be suspicious of the arrangement.

And he said the loans themselves were a perfectly reasonable way to manage his portfolio, but relied on Chapman and Derivium to hold up their end of the bargain. He disputed that the astronomical returns to which he was entitled caused Chapman's downfall.

"If they had not sold the collateral, it all would have worked," said Grayson, who is generally listed as one of the 20 wealthiest members of Congress with assets of more than $20 million. His financial disclosure forms list holdings in dozens of stocks. His dealings with Chapman preceded his time in Congress, which began in 2009.

Court records indicate Chapman's firm was drawing regulatory scrutiny as early as 2007.

Grayson also expressed concern that his identity as a victim was not protected by the court file, and that a defense motion and an attachment to a prosecution motion both identified him by name despite procedures that are supposed to be in place to protect victims' privacy.

"I think that's unfortunate," Grayson said. "They should have been more careful, should have used my initials throughout rather than using my name."

Before he was elected to Congress, Grayson practiced law and was best known for winning a major whistleblower lawsuit exposing fraud on a government contract in Iraq.

In the House, he is known as one the most sharp-tongued critics of Republicans, once famously summarizing Republican's health care plans as little more than wanting sick people to "die quickly."

Alan Grayson Lost $18 Million In Investment Fraud Scheme (http://www.huffingtonpost.com/2013/12/09/alan-grayson-investment-fraud_n_4414872.html)

ribshaw

12-10-2013, 11:56 AM

Billion-Dollar Investment Fraud
Undercover Agents Uncover the Scheme

12/06/13

Silhouette of peopleFor a group of financial fraudsters, it seemed like the ultimate get in an investment scam—a victim willing to hand over $1 billion.

However, like victims of financial scams everywhere, these criminals should have paid more attention to the “if it sounds too good to be true, it probably is” adage—the wealthy “victim” in this case was actually an undercover FBI agent. And last month, the last three members of this group of con artists were sentenced to federal prison for their role in this scam. Several co-conspirators have previously pled guilty.

Beginning in 2005, the two-year undercover operation named Collateral Monte took leads from previous complaints, victim referrals, cooperating witnesses, and information from regulatory agencies and specifically targeted criminals who lured potential victims with offers of substantial returns on investments with little or no risk (also known as high-yield investment programs). And because the Orange County, California area served as an ideal backdrop for wealthy victim-investors, it was there that we set up a bogus financial advisory company purportedly to invest money from wealthy residents, including doctors and retirees. Our “company,” however, never interacted with actual investors…just suspected con men.

Avoiding Investment Fraud

· Think before you invest in anything, and be wary of any investment scheme that offers unusually high yields.

· Beware of investments that use specific names like “Prime Bank Guarantees,” “Prime Bank Debenture Programs,” “Medium Term Note Trading Programs,” and “Roll Programs”—none of these are legitimate financial instruments.

· Be wary if you’re told that the financial instrument is issued, traded, or guaranteed by a well-known organization such as the World Bank, the International Monetary Fund, the U.S. Federal Reserve, or the International Chamber of Commerce

· Perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.

· Be wary of business deals that require non-disclosure or non-circumvention agreements that are designed to prevent you from independently verifying information about the investment.

This particular case got underway with an Internet posting from an individual claiming he had access to a “private placement program” where the funds were guaranteed by the Federal Reserve Bank (the Fed), that a $10 million investment would return $100 million after 50 weeks, and that he also had access to other private placement programs with greater return rates but required higher minimum investments.

We e-mailed the author of the posting and said we had a potential investor interested in the offer. Over the next few months, the scam’s operators appeared to be working directly out of the high-yield investment scam playbook—our investor was first introduced to some lower-level players whose job was to basically vet potential investors to ensure they actually had the money they claimed. Eventually, members of our undercover team were introduced to others higher up the chain with official-sounding titles: Fed trade administrator, compliance officer, underwriter, banking expert, bank liaison, and trader.

The scheme, which offered international investment opportunities through the trading of bank securities, gradually progressed to its ultimate goal—to gain control of all or a portion of the victim’s money.

And along the way, our undercover “investor” was told various lies by the scammers, including:

Only a privileged few were invited to participate in these types of investment opportunities and there were only a few traders in the world authorized to offer them.
The investment program was regulated by the Federal Reserve Bank, had to follow strict federal guidelines, and was overseen by a Fed trade administrator and Fed compliance officer.
The investment’s extraordinary rates of return were the result of conducting multiple trades in rapid succession.
One of the primary reasons these trading programs existed was to generate funds for humanitarian purposes and that a portion of the investor’s profits must be used towards that end.

By October 2008, we had enough evidence—e-mails, phone calls, in-person meetings, etc.—to get a criminal indictment against eight co-conspirators. And by going after these criminals proactively, we were able to stop them before they harmed actual victims.

FBI — Billion-Dollar Investment Fraud (http://www.fbi.gov/news/stories/2013/december/billion-dollar-investment-fraud/billion-dollar-investment-fraud)

ribshaw

12-11-2013, 05:25 PM

SPAMMER ae@e.ae.com (American Eagle Outfitters)

So I got 3X emails from this address today. First off there is enough gravy on my shirts to feed a small family, AEO, Abercrombie, don't think so Super K perhaps I would click. At first I thought it was phishing or malware, but the more I look at it, good old fashioned spam. I won't post the link here, cause pay me if you want that kind of service!!! They are having a contest, so that checks.

I found this link from a few years ago, looks like a pattern. American Eagle Outfitters: Selling Clothes to a Spamtrap » MainSleaze (http://mainsleaze.spambouncer.org/?p=858)

This site is registered to at the same address as SpamAmerica Outfitters.

Here is a link to the URL Scamadviser.com | check a website for risk | check if dodgey | check is a website s |check website is fake or a scam (http://www.scamadviser.com/check-website/e.ae.com)

So probably on the up and up, but very dangerous these days to click any random emails. (And don't take my word for it please, my computer skills are limited, and I have received actual phishing emails that are more appealing.)

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American Eagle Outfitters <ae@e.ae.com

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scratchycat

12-15-2013, 06:21 PM

Ribshaw, maybe others to read some of this (hopefully) all of it but I needed a place to post this. This guy has me on his mailing list and I have reported as scam but I keep getting them. What is this Read2Learn and how did I get selected for emails?

SEO Alchemy
Fiverr.com/seo_alchemy

For $5, he'll provide you with high quality contextual
links within PDF documents! These documents will include
images which will be syndicated to high PR document
sharing sites.

Software The Freelancers Use:

The cost will start to add up fast if you continuously pay
$5 for social bookmarking, article submissions, link
pyramids, and now PDF submissions. Keep in mind
that you need to build these backlinks daily.

If you use the software below correctly, then it's like having
20 SEO experts working for you 24/7/365..

SEnuke
Magic Submitter
Backlink Beast

Get started on this right now! If you don't want to manually
submit your documents or learn the software, then just hire the
freelancer for $5.

Keep a look out for SEO tip #5...

Read2Learn.net
-Kent Mauresmo

ribshaw

12-16-2013, 11:09 AM

[COLOR="#006400"]Read2Learn.net
-Kent Mauresmo

Hey Scratchy, internet marketing is not really my thing so I have no way of really knowing 4 sure. But a guess, Kent Mauresmo has a book, and a few more things on Amazon. Around $5 on Amazon and the reviews are decent, although quite a few are the only review these people have written. Not to be too suspicious, but this always makes me a little suspicious so I would discard those. The read to learn blog is $0.99 per month on Kindle, but no reviews. On the second link, he reviews his own book. Of course I would give my own posts a thumbs up if I could, so there you go on that.

On the surface the prices for his stuff seems reasonable if you get straight information and are not being subjected to a bunch of up-sells on the back end. As for the methods actually driving traffic to a website, I am completely unqualified to comment. But when I find pages full of google discussions, I can venture a guess.

Product Reviews: How To Build a Website With WordPress...Fast! (2nd Edition - Read2Learn Guides) (Volume 2): Amazon.com (http://www.amazon.com/Build-Website-With-WordPress-Edition/product-reviews/1480194298/ref=dp_top_cm_cr_acr_txt?showViewpoints=1)

How To Build A Website With Wordpress...Fast! (Read2Learn Guides) by Kent Mauresmo (http://www.goodreads.com/book/show/16095136-how-to-build-a-website-with-wordpress-fast#other_reviews)

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The magic submitter is fairly ubiquitous in a google search, with all the suspect type postings.

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Here is a discussion of Backlink Beast. The opinion seems to be meh..

Backlink Beast anyone? (http://www.warriorforum.com/internet-marketing-product-reviews-ratings/773902-backlink-beast-anyone.html)

One other thought I have to conclude my post is on Kindle there are a ton of books that come on line every day for free. I prefer the money stuff, but am guessing it one were to hunt a little they could find some good discussion on SEO for nada.

ribshaw

12-18-2013, 10:39 AM

My gift to all the good readers and posters at Real Scam.

Trick$ of the Trade: Outsmarting Investment Fraud
An Hour-Long Documentary on Preventing Investment Fraud

Order a free DVD copy of this documentary, as seen on public television stations nationwide:

Online
By phone: (866) 973-4672

- See more at: Fraud Center - Tricks of the Trade: Outsmarting Investment Fraud - SaveAndInvest.org (http://www.saveandinvest.org/FraudCenter/P124313#sthash.7znCrFaZ.dpuf)

http://www.youtube.com/watch?v=hhDJNuSZzOc

ribshaw

12-18-2013, 11:12 AM

SCAMMER Sgt Jason H. Kane <urgent05@officemail976.onmicrosoft.com>

Subject: Need Your Asistance Please!
To: Recipients <urgent05@officemail976.onmicrosoft.com>

Good day my dear Friend, My name is Sergeant Jason H .Kane, a US Army serving in the 3rd Infantry Division in Iraq. Now in Afghanistan I want you to kindly read this mail carefully to your understanding. In 2003, my Men and I found over $900 Million US Dollar in Saddam Hussein's hideout in Baghdad, we sent some back to the Iraq Government after counting it in a Classified Location, but we also kept some behind for ourselves. Some of the money we shared among ourselves worth over $200 Million, I kept my own share for a while in a Secured Place. Am only contacting you because, I need someone to help me receive the Funds, since I have found a secured way of getting the package out of Iraq for someone to pick up through the help of a Red Cross Society or pilots that enjoy some immunities with us while in Iraq. I do not know how long I will remain here as my Mission is still uncompleted yet, but I know this was Pure Divine Intervention from God. Understand that, I really need someone I could trust, since i have already lost a Box of Gold to someone in Europe who said he will help me out. I won't like to make the same mistake again; the total amount of money is $7.5 (Seven Million Five Hundred Thousand United States Dollars). I am willing to entrust this Funds in your care till i complete my Mission and come over to meet with you for subsequent sharing and investment projects.

KINDLY VIEW THE LINK BELOW TO CONFIRM MY STATEMENT

WWW. ALL-LINKS-REMOVED-AS-A-SCAMMER-LINKING-ACTUAL-NEWS-STORIES-IS-LAME.COM

If you can handle this deal, kindly contact me via sgtjason1995@gmail.com immediately. Be informed that 20% of the total Funds will be for you as compensation, all you need to do is to find a Safe Place where you can keep the Box till I leave Afghanistan. Hope to hear from you soon, Best regards, Sgt Jason H. Kane

ribshaw

12-21-2013, 10:51 AM

This is obviously a MASSIVE BREACH of DATA. And it is hard to day what is really out there. The ONLY contact method I would recommend using is the number on the back of your card. Physically check and use the 800 number. (If you previously have an online account, alerts etc, that is probably good) But if you get an alert or a call, I would still go to the card and use that number.

One more thing(s) since it is the end of the year and we are all rushing to get crap done. This is the time of year to request your 3 credit bureau reports, this can be done for FREE at https://www.annualcreditreport.com/index.action.

As previously mentioned before, a credit freeze is one of the few ways to slow these scumbags down in stealing your identity.

Finally, good time to change the batteries in your smoke detectors. Otherwise you will have a random beeping at some point in the year, usually in the middle of the night, and what a hassle.

On Thursday, Target TGT +0.55% announced that 40 million credit and debit card accounts had been compromised by a security breach — but it took less than 24 hours for fraudsters to try to profit from the confusion. With scams coming from all directions, who can we trust?

Many consumers received an email that seemed to be from Target — in fact the text was identical to the message the retailer posted on its site — but upon closer inspection it appears to be a phishing scam designed to fleece more consumers of their personal information. The hackers sent an email that mimicked Target’s warning to customers about the credit-card breach letting them know what they could do to request a security freeze on their accounts. But while the real Target message contained legitimate links to the credit bureaus’ websites, as well as to the FTC, the links in the scam email, while they look legitimate on the surface, were not. (Also see: Target’s PR nightmare: Customer-service gridlock )

It’s a trend, experts say, that’s become commonplace: a major event garners the public’s attention, and the scammers swoop in to trick the public. “It’s not surprising that there was a scam email right on the heels of [the Target breach],” says Ed Barrett, the vice president of marketing and channel sales for digital security firm SecurityCoverage. “Many of these bad guys are smart and understand that when people are concerned, you have their attention and they might do what you ask.” Indeed, email and other scams designed to fleece consumers of financial and personal information also often happen after natural disasters — after the Philippines typhoon, dozens of email scams to get consumers to donate to fake causes popped up — says Miranda Perry, writer from online complaint forum ScamBook.com.
Close

What’s more, the holidays are a popular time for scams, says James Crompton, an analyst at research firm IbisWorld. These scams include emails that seem to be electronic holiday cards but when clicked install malware on your computer, as well as emails promoting fake charities and package delivery alerts — all of them trying in one way or another to extract personal and financial information from consumers. And that’s just the beginning: “The reality is that the fraud underground is a whole industry, and they’re collaborating more than ever,” says Angel Grant, the senior manager of fraud solutions for RSA, the security division of global IT firm EMC.

Naturally, these kinds of scams make many consumers wonder who they can trust. And the answer to that may be: no one — especially when it comes to email. “Never trust those emails even if they seem to be from a reputable company like Facebook or LinkedIn,”says Barrett. “Don’t click on any of the links.” Instead, Barrett says, you should go directly to the company website or call the number (not the one from the email, the one from the company website) to verify the information in the email. Crompton says that some of the warning signs you can look for when going through your email are strange email addresses (if the email is supposed to be from Target, for example, the email address should typically have “target.com” after the @ sign), introductions that say “dear guest” or “dear sir” or something like that (usually, when companies email you, they have your first name and will include that) and emails that say things like “we noticed you changed your password or address” when you didn’t.
Click to Play
Target faces backlash after breach

Steven Russolillo and Sara germano discuss the Target security breach, and Matt Day looks at gold markets.

You also can’t fully trust — as the dozens of recent security breaches show — companies to keep your information safe, either on their websites or in their stores, though there are steps you can take to minimize your risk. (Barrett points out, the large retailers do a pretty good job of keeping your data secure, there just “isn’t any solution that’s 100% safe.”). While it’s annoying, Barrett recommends that consumers have a unique and complex password — letters, numbers and symbols of at least 10 characters are best — for each of their accounts, be it email or a retailer login (to help keep track of them, you can use a secure password manager program). This way, if a hacker gets into one account, he likely won’t be able to access all your other accounts. He also recommends that you do at least a yearly monitor of your credit report (go to AnnualCreditReport.com for a free one every year) and looking through your credit card, debit card and bank account records line by line each month. Crompton says that you should also look for the lock symbol in the URL box on your web browser, as this indicates a high level of security from a retailer.

You’re also mostly better off using credit cards than debit cards when it comes to security. For the most part, credit card companies only make cardholders pay up to $50 (and often nothing at all) when there are fraudulent charges on the account, but the debit card is tied directly to a consumers’ bank account and consumers often have to jump through more hoops to get the bank to refund the cash that was illegally taken. Grant says that to even further protect yourself, call your bank and ask it to put a daily limit on the amount you can spend on your cards — this way, even if the data is compromised, you might be able to limit risk. Or, she says, consider using prepaid cards.

Email (http://www.marketwatch.com/story/scammers-pounce-on-target-fiasco-2013-12-20?link=MW_latest_news)

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