Archives for August 2018

August 29, 2018

7 new scams thieves use to snatch your cash

If you spot an ATM that’s spreading cash, then you may have just walked in on a crime scene.

This scheme, known as jackpotting, is amongst the rip-offs highlighted by Experian in its list of the “ultimate scams.”

The consumer credit reporting company organized the list based on objections filed with the Better Business Bureau’s Scam Tracker.

“Scams are more complex today compared to five years ago,” said Michael Bruemmer, vice president of consumer protection at Experian.

“A lot of it has to do with the record amount of discredited data accessible on the “dark web” for offenders to use,” he said.

Here are some of the new techniques fraudsters use to seclude you from your cash.

Investment scam exploits bitcoin trend

GRAND RAPIDS, Mich. (WOOD) — A new twist on a typical scam is taking advantage of the growth in the online currency bitcoin.

“This is capitalizing on the moment, on the fiery streak that bitcoin is on, and in this example using it to scam people out of their capital,” John Masterson of the Better Business Bureau of Western Michigan said.

The BBB is broadcasting a notification about a Ponzi scheme-type offer that promises bitcoin returns that are too good to be true.

“If anything seems too good to be true, 99 percent of the time it is,” Masterson said.

INVESTED BITCOIN VANISHES

The scam operates like this: Investors buy bitcoin and invest it with the website Wedgecoin.com. The website ensures unbelievable returns. According to the website, a $10 investment will see a 130 percent return in just 24 hours and an investment of $1,500 or more will have a 300 percent return in just three hours.

Small investors would see the initial return, but larger investments would go unreturned, rather held by the web-based scammers.

Utah leaders warn of investment scams pushing bitcoins

Be careful of bitcoins and other crypto-currencies, Utah’s consumer protection officials informed Friday.

They’re surrounded by scams waiting to happen — and Utah residents are particularly susceptible to being fleeced, said state Division of Securities Director Keith Woodwell.

His agency is reviewing Ponzi schemes and other frauds linked to crypto-currencies, he said, suspicious that scammers are targeting retirement accounts.

Nigerian Email Scammers More Effective Now More Than Ever

YOU WOULD THINK that after decades of investigating and combating email spam, there’d be a fix by now for the internet’s greatest hustle—the Nigerian Prince scam. There’s frequently more information that a West African noble demanding $1,000 in order to send you millions is a scam, but the underlying logic of these “pay a little, get a lot” schemes, also known as 419 fraud, still captures a ton of people. In fact, groups of fraudsters in Nigeria continue to make millions off of these classic cons. And they haven’t just refined the techniques and expanded their targets—they’ve gained minor celebrity status for doing it.

On Thursday, the security firm Crowdstrike wrote detailed findings on Nigerian confraternities, cultish gangs that engage in various felonious enterprises and have steadily evolved email scam into a reliable cash cow. The groups, like the disreputable Black Axe syndicate, have mastered the creation of compelling and credible-looking fraud emails. Crowdstrike notes that the groups aren’t very regimented or technically sophisticated, but flexibility and camaraderie still allow them to acquire powerful scams.

TO READ MORE

https://www.wired.com/story/nigerian-email-scammers-more-effective-than-ever/

August 21, 2018

Cryptocurrency Fraud Widespread, Warns Regulator

Fraud among cryptocurrency investment promoters is extensive, the state regulator most effective in the crypto arena warned today.

Of 32 cryptocurrency investment promoters investigated in four weeks, at least five failed to tell would-be investors about the risks while guaranteeing returns of up to 40 percent a month, the Texas State Securities Board cautioned.

Nearly two-thirds of the promoters did not provide investors with a physical address.

Without a physical location, the Board advised investors may not be able to discover a promoter to serve it with a legal method or attempt to track other remedies once they have been defrauded.

A statement from the control noted many cryptocurrency solicitations played on Bitcoin’s sharp increase in price, even though the investment being sold to investors had zero to do with the most popular brand in digital currencies.

August 18, 2018

Taking the fight back to health insurance fraud

Recently, Insurance Business has announced on several massive health insurance hoaxes. These pose a menace to the economic and clinical well-being of workers and place corporate officials in legal jeopardy. Under ERISA, plan sponsors are to exercise the same standard of fiduciary oversight of health plans as they do for retirement plans.

The Trap

Self-insured plans fail to realize the risk they have assumed includes the risk of fraud. They may have a false sense of security assuming their administrator will fight fraud – a dangerous and costly assumption. Administrators say they are not paid to reduce fraud, particularly since the funds belong to the plan. Sponsors also assume they have no affordable tools to address it. This is another inaccurate and costly belief.

Fraud is authorized by many factors, including:

TO READ MORE:

https://www.insurancebusinessmag.com/us/opinion/taking-the-fight-back-to-health-insurance-fraud-109198.aspx