Conference outlines reach of online fraud

An 80-year-old Billings man wires $10,000 to the Dominican Republic to get his grandson out of jail in Quebec.

A Montana woman wires $30,000 overseas to "save her nephew."

Altogether, Montanans lost a total of $68,000 in 2010 to this scam.

"The minute somebody wires someone overseas, that money is gone forever," said Montana Attorney General Steve Bullock, one of the speakers at a fraud prevention seminar sponsored by MasterCard on Wednesday morning at the Hilton Garden Inn in Billings.

Everybody who has an email address gets hit with so-called "phishing" scams, where con artists promise they've won a lottery or an iPad and must send money first.

"Anytime somebody receives an email that sounds too good to be true, it probably is," he said.

Bullock made those comments in a Gazette interview, adding that because of the shame involved, the fraud reported to his office is only a fraction of what is happening.

Ravi Aurora, MasterCard's vice president of information technology security, said the electronic ecosystem is changing so rapidly that today 2.2 billion people, out of 7 billion worldwide, have Internet access. That's a 500 percent jump in 12 years.

FBI special agent John Teeling, who attended the seminar, said that his agency fields about 1,000 calls per day about fraud, crimes that rob Americans of an estimated $1 million to $2 million every day.

Senior citizens should have special credit cards with an extra password or some other fraud protections, Teeling suggested. And he advised consumers and businesses to never respond to emails asking for personal data.

"Banks and stock brokerage companies, your Visa company, MasterCard, they are never going to email you and say, 'Please give us your account information,'" he said.

The sponsors' presentation was heavily spiced with promos for MasterCard's services. Company speakers also lobbied against the Durbin Amendment that took effect last October and capped "swipe fees," debit card interchange fees. That change cut costs to merchants, but was a major financial hit to companies that issue the cards, including Visa and MasterCard.

Before the change, the Merchants Payment Coalition said Americans were paying on average 2 percent per purchase, while Europeans paid 0.25 percent in swipe fees.

The seminar was organized by Barb Skelton of Billings, who represents MasterCard in Montana.

Ninety percent of card fraud today is from counterfeiting, using lost or stolen cards and Internet fraud, Aurora said.

"Fraud is like a balloon. You puff it out and then look for the weakest link," Aurora said.

Security measures by credit card companies have cut the cost of global card fraud from 15 cents per $100 about 10 to 15 years ago, to 8 cents per $100 today, Aurora said.

But fraud is easier and cheaper now than ever.

-- $200 "skimmers" can read cards swiped at cash registers.

-- Pinhole cameras that match the color scheme of ATMs can be placed on the machines to steal card data.

"Always, when entering your pin number, shield it," Aurora said.

Business owners should watch out for "repair technicians" or employees who can install malicious software on a computer or plug in a device to steal sensitive information. Outsiders make 92 percent of the attacks, while business partners steal data less than 1 percent of the time, he said.

A few years ago, cyber thieves stole from the largest companies, but now they are targeting smaller ones, especially food and beverage, lodging and retail businesses, said MasterCard's Erik Mueller.

"They're starting to figure out they can go after the small fish and collect lots of information," he said.

Source: http://billingsgazette.com/news/local/conference-outlines-reach-of-online-fraud/article_36e2c534-f4b9-5687-ab1b-4e5444e1376d.html#ixzz1pt2pG8ae 

Online, Phone Scammers Target C. Oregonians

BEND; Ore. -- Bend police warned Central Oregonians on Tuesday to be on the lookout for Internet and phone scams, as several have been reported over the past few weeks -- and one hit a resident to the tune of several thousands of dollars.

One person was scammed on a Christian dating website, said Lt. Brian Kindel. The online dater sent $12,000 to other person, over a period of time. The scammer claimed to need help with car payments and plane rides to meet the other person.

Three older couples were recently contacted by phone scammers. A person called and elderly person, pretending to be their grandchild, arrested in another country. The scammer asked for money to be bailed out, usually around $4,000. The money is asked to be sent via Western Union.

Kindel tells NewsChannel 21 that many of the scammers try to play on the call recipients' emotions, until the scammed person finally gives in.

"It's national, not just here," Kindel said. "We've had thousands of dollars sent for this exact scam -- I'm talking about, 'Your granddaughter or grandson, in jail here, send money.' They're preying upon the older people."

Police say the best way to stay safe is by not sending any money, or giving out any personal information. Kindel added that If something sounds too good to be true, it most likely is, and to call police right away.

--

Here's the Bend PD "Scam Alert" issued Tuesday by Kindel:

Recently, the Bend Police Department has seen an elevated number of complaints of a telephone scam and would like the Public to be aware of this for their protection. This is not a new scam and has been used elsewhere in the past, including Bend.

Unknown suspects are placing calls to elderly residents, claiming to be a grandchild. The caller states to be in custody in another country and needs “bail” money, usually around $4,000.00. This money is asked to be sent via Western Union. Pressure is exerted to make this occur quickly for the welfare of the alleged grandchild.

These callers are playing on the emotions of caring grandparents and have been successful in obtaining funds on occasion.

The Bend Police Department would like to provide the information that this type of call is a scam and is intended to separate you from your money. If a call of this type is received, please know it is not from a reputable government agency and information should not be shared nor should money in any amount be sent.

Information on telephone scams and internet scams can be located on line by searching for “internet scams” or “telephone scams”. Additional information can be obtained through the Federal Trade Commission website, the Oregon Department of Justice website and also the FBI website.

If you have been a victim of a telephone scam, please contact your local law enforcement agency to report this. Internet scams can be reported on line at “IC3.gov”. 


Source: http://www.ktvz.com/news/30726525/detail.html

Fraud Prevention Tips Everybody Should Know (But Doesn't)

It’s no secret that in today’s world, fraud prevention, online privacy and cybersecurity are complicated and constant concerns.

Fraud threatens not only companies and organizations, but also individual consumers as they go about their daily business – both online and off.

Last week was National Consumer Protection Week, and to observe the event 41^st Parameter joined with federal, state, and local government agencies and other security institutions to raise awareness about what individuals can do to protect themselves from identity theft, frauds and scams.

1. If you get a voice mail from your credit card company that asks you to call back, only call back using the number listed on the back of your card. Never respond directly to the contact number offered in the message.
2. Sign your credit and debit cards with “See ID.” This will force you to show your signature sample off your ID.  Few potential fraudsters will be able to replicate your signature on his or her ID.
3. Websites with questionable content will sometimes ask for a credit or debit card number “for identification purposes only.” Don’t get sucked in! Unless you are actually making a purchase, there is no need to share your card information.
4. Don’t be burned by a phish. Be suspicious of any emails from a bank or credit card company requesting your account information. Contact the company directly (and not through the unsolicited email) to confirm the request.
5. Perform periodic privacy checks. On a regular basis, check your Internet browser and social media site privacy settings to be sure they match your needs. After visiting secure websites, clear the cache of your browser so that no one can view any sensitive information.
6. Do not click on ‘unsubscribe’ links in any unsolicited email, or reply with an unsubscribe message. Doing either will simply confirm that the spammer/scammer is reaching a live address and they will continue to keep you on their contact lists. Instead, simply delete the email.
7. There are two simple signs that you’re secure while shopping online. One is the "padlock" icon located at the top of your browser window, and the other is "https" in the address bar. These confirm that the page you are on is secure and that your data will be encrypted.
8. Become a password power user. Avoid obvious passwords like birthdays, addresses or phone numbers – these aren’t just easy to guess, they’re easy to get with simple searches. Most sites recommend (or even require) a minimum of eight characters and a mix of numb3r5 and 13tt3r5.
9. Don’t use repeat passwords for anything involving sensitive personal information. Fraudsters will run compromised email accounts against financial institutions in case there is a repeat that will grant them access.
10. Change your passwords frequently. Many sites require periodic password changes and don’t permit password recycling. Just as you change your smoke alarm batteries every New Year, make it a habit to change your passwords every full moon.

The institutions and companies that you do business with have an obligation to take your protection seriously, implement the highest security standards possible and immediately detect and alert you to any fraudulent activity on your account.

But you have responsibilities too. Following these simple steps will put your mind at ease and help keep you fraud free, scam safe and privacy protected.

Source:  http://www.businessinsider.com/10-fraud-prevention-tips-you-havent-heard-over-and-over-2012-3#ixzz1pmN3jsTE 

Scam artists posing as Utah National Guard

SALT LAKE CITY, UTAH (ABC 4 News) – There’s a new scam the Utah National Guard is warning you about, and it is preying on patriotism. These scammers have been posing as members of the National Guard in order to steal your money. 

ABC 4 is told, these scam artists basically exploit people who are sympathetic to the military, by taking your trust in the Utah National Guard then use it to empty your bank account.

Over the past several months, Major Bruce Roberts has received emails from people in Oklahoma and South Carolina, claiming a member of the Utah National Guard 128th Unit conned them out of several thousands of dollars. 

"I've had people contact me in regard to these scams, and ask me - Is this a real unit? Is this is real person? I have to tell them No. It's a scam. Don't do it,” said Major Bruce Roberts, Utah National Guard, Spokesperson.  

ABC is told it works two ways. One, the scammer claims to be a Utah Guardsman being deployed to Afghanistan, who’s in desperate need to sell his car. He posted a listing online. He convinces the buyer to pay in advance, but never delivers. The second involves posting a fake profile on dating websites, called “Twoo”. One scammer claimed to be former Miss Utah and National Guard Medic Jill Shepherd, and then sent a Colorado man the following message -  

"I believe we can really make things together and that you can make a new life with me... If my men pay the kids school fees I should be able to take care of the kids’ luxury and immediate needs."

Once the scammer has gained the victim’s trust, its then when they start asking for money. 

Measures have been taken to ensure that the National Guard is doing everything it can to reach out and try to prevent and stop these scammers, but the internet makes it really difficult to identify scammers. 

If you think you have been a victim of this scam, the Military needs your help. You can help them find the scam artists by filing a formal complaint with the Better Business Bureau.

Source: http://www.abc4.com/content/news/state/story/Scam-artists-posing-as-Utah-National-Guard/T3AR6b9-2k6Nz9J2dzC6RQ.cspx

Watch Out! Scams Rise 100%, $85M Lost

More scammers are on the prowl as more than $85m lost to dodgy deals last year. 


The consumer watchdog, ACCC, was contacted more than 83,000 times by consumers/ SMB's about scams in 2011– double and quadruple the figure(s) for '10 and '09. 

And Aussies lost over $85 million to scams last year – up a massive 35% from 2010.

The startling figures are "significant," says ACCC Chair, Rod Sims, as they "represent ordinary people who have been approached by scammers."

And it seems think before you pick up, as half of all scams- 43,000 - were conducted over the phone with total of $28 million conned from Australians this way. 

Previously the trend has been for scams online, but it seems devious fraudsters are now using cheap VoIP technology including the likes of Skype to make masses of calls. 

"Until recent years telephone was considered an old style of scam delivery, but reports suggest that scammers' abuse of recent advancements in voice over internet technology have contributed to this increase," said ACCC deputy chair Dr Michael Schaper. 

Common frauds are those which ask for money up front or that seems "too good to be true," warns the consumer watchdog.  

Almost 20% of scams involved computer hacking, with scammers calling asking for 'remote access to their computer to run a scan or fix a technical problem' while social media and email account hacks were also on the up.

Lottery weep stakes and banking online account schemes including phishing were also among the top 5 scams in Oz last year.

National Consumer Fraud Week 2012 on all this week aims to highlight scam delivery methods and educate Australians to "slam scams" at the point of contact. 

"The key message for consumers and businesses is, if you receive a scam, slam it! press delete, throw it out, shut the door or just hang up," says Schaper. 

"With scammers now targeting Australians in a myriad of ways, it is now more important than ever that we stay alert to scam approaches. "

"A phone call, SMS, mobile app, house visit, letter, email, fax, blog post, online chat or dating service – scammers will use any of these means to target victims," he warned. 


However, we are becoming more aware of con jobs with almost 90% of those who contacted the ACCC last year reported no financial loss at all.

The watchdog's SCAMwatch website, also recorded a 400% jump in hits.

The Australian Competition and Consumer Commission is launching its 2011 Targeting Scams report in Sydney later today as part of the 'Slam Scams!' campaign, ran by Australasian Consumer Fraud Taskforce. 

Chairman Sims will also launch The Little Black Book of Scams, exposing scammers' top tactics.  


Source: http://www.smartoffice.com.au/Technology/Internet/U7B9J9M3

Who's Responsible For All These Scams?

For the 12th year in a row, ID theft is the number-one complaint to the Federal Trade Commission, the agency announced recently. It's followed by the usual shenanigans, including debt collection schemes, bogus sweepstakes, and bank fraud.

But the real news is the reaction to the list, which is... well, nothing.

Apart from a few polite pick-ups by the mainstream media that noted the ID theft epidemic, the news was roundly ignored in favor of the latest primary election drama or iPad product announcement.

The message to consumers couldn't have been any clearer: Same old scams, same old advice -- watch out for identity thieves, don't wire money to strangers, careful when you shop online.

Yawn.

Hang on. Speaking on behalf of the last five remaining consumer advocates, would you mind spending just another minute with the FTC chart?

It's more than a brag-list of how many phone calls and letters this federal agency fielded from ripped-off customers. It can also be a roadmap for a scam-free 2012.

You have to look beyond the crimes to see what's really happening. It's more disturbing than the million-plus complaints against unscrupulous businesses, or even for that matter, the many cases the government refused to investigate.

For example, ID theft is not about your social security number, credit card information and password being snatched by an invisible perpetrator. It is the unfortunate confluence of careless consumers and clever criminals.

Impostor scams, another popular complaint category, isn't a one-time ruse that only the naïve fall for. It's about the career con artists using tried-and-true strategies for swindling good people out of their hard-earned cash, again and again.

And the thing is -- and I say this as both a victim and a student of scams -- there's no quick fix.

The process of making sure you don't leave your data lying around carelessly starts when you spend the first dollar of your allowance and develops as you become a gainfully-employed, taxpaying citizen, as I reveal in my book.

Too bad we failed to learn those basic lessons.

What is being taught, exactly? Thanks to an incessant barrage of ads and messages that are controlled by a thousand unseen reputation management operatives, we're programmed to become unquestioning consumers, to obediently and uncritically buy, buy, buy.

One of the byproducts of this collective brainwash is that we'll fall for anything, including the obvious scams. Our capacity to research, evaluate and execute a sound purchase has been short-circuited. Our development as responsible consumers is stunted.

The fact that the watchdogs are often unresponsive doesn't help. An FTC report quietly released yesterday suggests it's sometimes hard to reach: 36 percent of people surveyed said they found it either "somewhat or very difficult" and and 13 percent reported that it was "very difficult" to contact an agency representative.

But back to us. We're a little bit like toddlers at the mall, instinctively reaching for everything the adults leave at eye-level. When something goes wrong, we also react like babies, whining and threatening until we get our way, instead of applying proven problem-solving techniques that should be part of everyone's basic education.

The result: We can't help but be victims. To repeat: ID theft has led the FTC list for 12 years in a row -- 12 years! You'd think we would have learned to avoid it by now, don't you?

What the list tells me, and what it should tell you, is that our problems go far beyond complaints filed with the feds. Until we recognize that we're being influenced by powerful forces with a vested interest in keeping us ignorant, uncritical and yes, gullible, we won't be able to start the long journey toward enlightenment.

We are a nation of the scammed. But we don't have to stay that way, do we?

Source: http://www.huffingtonpost.com/christopher-elliott/whos-responsible-for-all-_b_1348178.html

Fraud alert: Phone scammers offer free diabetes supplies

If you have diabetes and you get a call from someone offering free glucose meters, diabetic test strips, lancets and other supplies, take note: You are almost certainly talking to a scam artist. 

Hang up, says the federal government, which has put out a new fraud alert about such calls. Many of the scammers pose as employees of Medicare or legitimate diabetes groups, says the Office of Inspector General in the Department of Health and Human Services.

Their aim: to get Medicare and social security numbers and other financial information. They may indeed send you supplies -- including some you don't order -- and bill Medicare. Or, as the AARP has reported, they may be in the business of identity theft -- using your information to steal from you or get medical care for someone else in your name.

The calls are just one way criminals are ripping off people with diabetes and the government, The Daily Beast reported this week. Another big money maker: a thriving black market where supplies are cheaper -- but also of questionable quality.

If you get a call from a likely scammer, you can call the government's fraud hotline at 1-800-HHS-TIPS or file a report online at www.OIG.HHS.gov/fraud/hotline.

Source: http://yourlife.usatoday.com/health/healthyperspective/post/2012-03-16/phone-scammers-target-people-with-diabetes-with-free-supplies-/649880/1?csp=ylf