All Scams and More

My absence

2011-06-22T10:31:00.000-07:00

Hey everyone, sorry for my long absence. I will try to start posting again. My biggest problem is I have not had many followers and other complaints that are private to me. I hope you forgive me. I will try to start blogging again more.

Child Predators: The Online Threat Continues to Grow (FBI Newsletter)

2011-06-22T10:29:00.001-07:00

Child Predators
The Online Threat Continues to Grow

05/17/11

It’s a recipe for trouble: naive teenagers, predatory adults, and a medium—the Internet—that easily connects them.


	In a new video blog, Executive Assistant Director Shawn Henry warns against the dangers of online predators. - Watch Video \| Download (50 MB)

“It’s an unfortunate fact of life that pedophiles are everywhere online,” said Special Agent Greg Wing, who supervises a cyber squad in our Chicago Field Office.

When a young person visits an online forum for a popular teen singer or actor, Wing said, “Parents can be reasonably certain that online predators will be there.” It is believed that more than half a million pedophiles are online every day.

Agents assigned to our Innocent Images National Initiative are working hard to catch these child predators and to alert teens and parents about the dark side of the Internet—particularly when it comes to social networking sites and, increasingly, online gaming forums.

Pedophiles go where children are. Before the Internet, that meant places such as amusement parks and zoos. Today, the virtual world makes it alarmingly simple for pedophiles—often pretending to be teens themselves—to make contact with young people.

Advice for Parents

Parents should talk to their children about the danger of being sexually exploited online, and they should monitor their children’s Internet use along with online video gaming, an area where pedophiles are increasingly operating.

Parents should also understand that teens are not always honest about what they are doing online. Some will let their parents “friend” them on social networking sites, for example, and will then establish another space online that is hidden from their parents.

Youngsters often employ a secret Internet language to use when their parents are nearby. Examples include:

- PAW or PRW: Parents are watching- PIR: Parents in room
- POS: Parent over shoulder- P911: Parent emergency
- (L)MIRL: (Let’s) meet in real life

Parents can get more information from our Parent’s Guide to Internet Safety.

Even without being someone’s “friend” online, which allows access to one’s social networking space, pedophiles can see a trove of teenagers’ personal information—the town they live in, the high school they attend, their favorite music and TV programs—because the youngsters often post it for anyone to see.

“The younger generation wants to express themselves, and they don't realize how vulnerable it makes them,” Wing said.

For a pedophile, that personal information is like gold and can be used to establish a connection and gain a child's trust.

There are basically two types of pedophiles on the Internet—those who seek face-to-face meetings with children, and those who are content to anonymously collect and trade child pornography images.

Those seeking face-to-face meetings create bogus identities online, sometimes posing as teenagers. Then they troll the Internet for easy victims—youngsters with low self-esteem, problems with their parents, or a shortage of money. The pedophile might find a 14-year-old girl, for example, who has posted seemingly harmless information on her space for anyone to see. The pedophile sends a message saying he goes to high school in a nearby town and likes the same music or TV shows she likes.

Then the pedophile cultivates a friendly online relationship that investigators call “grooming.” It could continue for days or weeks before the pedophile begins bringing up sexual topics, asking for explicit pictures or for a personal meeting. By that time an emotional connection has been made—and pedophiles can be master manipulators. Even if an actual meeting never takes place, it is important to note that youngsters can be victimized by such sexually explicit online contact.

Innocent Images Investigators

Agents on our Innocent Images squads around the country take part in overt and covert operations to stop online child predators and to identify victims.

During investigations, agents sometimes pose online as teens to infiltrate pedophile networks and to gather evidence by downloading files that are indicative of child pornography. During the investigation of known suspects, undercover agents may also “friend” people the suspect is associated with.

“Pedophiles regularly create bogus online profiles,” said Special Agent Greg Wing, who supervises a cyber squad in our Chicago Field Office. “Usually, anyone associated with that profile is either a fellow offender or a victim.”

Even worse than posting personal information for anyone to see is the fact that many youngsters will accept “friends” who are total strangers. “Nobody wants to just have five friends online,” Wing said. “It's a popularity thing.”

Special Agent Wesley Tagtmeyer, a veteran cyber investigator in our Chicago office who works undercover during online investigations, said that in his experience, about 70 percent of youngsters will accept “friend” requests regardless of whether they know the requester.

Tagtmeyer and other cyber investigators say a relatively new trend among pedophiles is to begin grooming youngsters through online gaming forums, some of which allow two-way voice and video communication. Parents who might be vigilant about monitoring their children’s Internet activity often have no idea that online video gaming platforms can pose a threat.

“Parents need to talk to their children about these issues,” he said. “It’s no longer enough to keep computers in an open area of the house so they can be monitored. The same thing needs to be done with online gaming platforms.”

Resources:
- More information about the Innocent Images National Initiative- Keeping Kids Safe Online: FBI Program Offered in Schools (01/11/11)

Fast & Furious

2011-01-02T16:12:00.000-08:00

Fast & Furious is the prelude to 2 Fast 2 Furious, but is the follower of The Fast and the Furious.
The movie introduces Han, who is in The Fast and the Furious: Tokyo Drift. The movie also reunites the cast from The Fast and the Furious. I thought the storyline/plot was exciting and action packed. I think that in my memory of the past movies, this is the first one where a character drops the f-bomb. However, there is only one time that a character does so. Other than that, the language seems to be fairly unoffensive. It also seems that the creators are really trying to always step up the game and make each movie better than the last, and are doing so well. I can't wait to see Fast Five.

Trailer:

Tooth Fairy

2010-12-29T09:18:00.000-08:00

Tooth Fairy is the movie that makes the concept of the possibility of being a tooth fairy to a whole new level.
Dwayne Johnson acts well in the movie as the NHL hockey player that also has a smart mouth and loves to be straight up with people. However, I think that all the actors did well in this movie, and I got a few laughs out of it, but not as many as I had hoped for. Nevertheless, I think that the movie had a great plot and was just good natured fun. I think the whole cast and crew had fun doing this, from making over-sized sets to getting just plain goofy.

However, I think that the message they were trying to get across, and I think they did it very well, was to never give up your dreams for a second, no matter what anyone tells you.

Trailer:

2010 Events

2010-12-27T11:06:00.000-08:00

For events in the United States, see http://en.wikipedia.org/wiki/2010_in_the_United_States.
For events in the world, see http://en.wikipedia.org/wiki/2010.

Crazy Heart

2010-12-25T18:30:00.000-08:00

Crazy Heart is emotional movie based upon the book by Thomas Cobb,
and the movie adaptation was written and directed by Scott Cooper. Now, I never read the book, so I can't compare. But the movie had a great storyline and I can't complain, this movie earns five out of five stars in my book. The actors did an amazing job, and Jeff Bridges did great at acting as an alcoholic.

Trailer:

Meet the Parents

2010-12-25T18:25:00.000-08:00

Meet the Parents is the comedy starring Ben Stiller and Robert DeNiro
. Now, I must say that I saw the movie Meet the Fockers first, so it made me have a higher expectation for Meet the Parents. Now I wish I had done the opposite and had not been able to watch Meet the Fockers as a freshman in high school. My parents got a lot of good laughs out of it, and I may be had a laugh or two from it, but for the most part I ruined it for myself. It makes me wonder if Mini Fockers will be more funny than Meet the Fockers or if I ruined the series completely.

If I was to be given the chance to rate this movie for the creators, I would give it 4 out of five stars. It had a good storyline, and the movie was impressive, the humor just didn't get anything out of me.

Trailer:

Eclipse

2010-12-22T09:06:00.000-08:00

Eclipse is the kick-butt film based on the book by Stephanie Meyer. Some
of the scenes are not in the book, as they are not told from the point-of-view of Bella, such as Victoria transforming Riley into a vampire and the newborns feeding on innocent people. However, other than that movie seems to follow the storyline of the book quite nicely. I would definitely recommend this movie, along with Twilight and New Moon (and the book series), to anyone that hasn't read them.

One thing that I really noticed is that the director, David Slade, tried hard to keep this movie at the rating of PG-13 by changing the scene of Rosalie Hale being harmed by her former fiancé. The way they changed it is David cut the memory short right after her former fiancé pulls her back to him when she walks away, when he tugs on her hair and makes her bleed, thereby eliminating a lot of the violence that is described in the book. Either that or he did it for time reasons. However, it was a perfect cut.

I think that they did well with this movie and cannot wait to see the last film, which is Breaking Dawn. Breaking Dawn is being broken down into two parts, due to the size and importance of a lot of the information in the book. The first part is coming out sometime next year, with the second part coming out sometime in 2012.

Iron Man 2

2010-12-11T15:59:00.000-08:00

Taking a turn from the norm in my movie reviews, I'm going to give my viewpoint on this movie
. Iron Man 2 was a disappointment, compared to Iron Man. In the movie, there was too much dialogue between the characters. It seemed as though 60% of the movie was just talking. The best part of the fighting was at the very end of the movie. I might also say that this movie seemed to produce fewer laughs.

Trailer:

A Byte Out of History: Turning the Tables on Telemarketing Fraud (FBI Newsletter)

2010-12-11T15:46:00.001-08:00

A Byte Out of History
Turning the Tables on Telemarketing Fraud

12/08/10

One Ohio widow was scammed out of some $240,000—her life savings—by 50 different telemarketers. A 92-year-old woman in California lost $180,000, then was conned out of another $5,000 trying to get some of it back. An elderly lady living out West gave away $60,000 from her family’s retirement fund to a telemarketer, only to turn around and agree to take out a costly loan.

These sad stories were just the tip of the iceberg in the 1990s, when telemarketing fraud was in its criminal heyday, mostly preying on the elderly and ringing up an estimated $40 billion in losses from the pockets of American consumers.

But the FBI and its partners fought back during the decade through a series of major investigations that put a sizeable dent in the operations of telemarketing hucksters.

One of the most important of these cases was publicly unveiled 15 years ago yesterday—on December 7, 1995. Dubbed Operation Senior Sentinel, it was as novel as it was successful. Successful, because it ultimately resulted in some 1,200 arrests and hundreds of convictions across the nation. And novel, because for the first time, it put victims themselves in an undercover role to help current and retired FBI agents catch fraudsters.

Senior Sentinel Scams

The following were the most common types of scams in Operation Senior Sentinel. Some of these tactics are still used today—see our tips on avoiding telemarketing fraud.

- Charity Room: Telemarketers asked for money for a charity. In reality, less than 10 percent of the funds went to the charity.

- Prize Room: Callers were told they had won a prize, but needed to send a fee or purchase another product in order to collect their winnings.

- Product Room: A product purchased during a telemarketing pitch was worth less than claimed, had an added cost when delivered, or was never delivered at all.

- Recovery Room: Previous fraud victims were told they could recover their money by paying an upfront fee.

- Rip and Tear: Scammers took the money and ran, collecting as much through fraud as possible and leaving town before they could be identified.

That case was a spin-off of two earlier major investigations led by the FBI that targeted telemarketing “boiler rooms”—so named because they typically involve a crowded room full of sales persons using high-pressure, often illegal sales tactics on unsuspecting victims over the phone. The first investigation—Operation Disconnect—began in 1991 in Salt Lake City, expanding nationwide and culminating in a wave of 240 arrests in March 1993. The second, called Operation Sunstroke because it was based in Miami, was launched in the summer of 1993. It featured an innovative technique for a telemarketing case: retired FBI agents and informants posing as victims.

At the time, the FBI office in Miami had a close working relationship with its counterpart in San Diego, since both cities were hotbeds of boiler room activity. Operation Sunstroke was eventually expanded by the San Diego Division into Operation Senior Sentinel.

In Senior Sentinel, we added yet another effective investigative twist and a first in law enforcement. In addition to tapping into retired agents, we asked citizen volunteers recruited by the AARP—the American Association of Retired Persons—to aid the investigation by acting as victims. These individuals (some of whom actually were victims) were trained by Bureau agents, who secretly recorded the conversations. The tapes were then forwarded to our office in San Diego, where they were catalogued and indexed for the investigation. More than 7,000 phone calls were recorded between 1993 and 1995.

These three cases—along with Operation Double Barrel in 1998 and others that followed—have had a lasting impact in reducing the scourge of telemarketing fraud.

San Diego Special Agent in Charge Keith Slotter, who helped launch Operation Sunstroke while an agent in Miami, says the days of the massive telemarketing boiler room operations are essentially over. “We came down so hard on the boiler room criminals and sent so many to jail that it discouraged them from going back into the business,” he said. “We sent a psychological message as well as a criminal message.”

The message remains: the FBI is committed to taking down bogus telemarketers, now and in the future.

Resources:
- Common Fraud Schemes
- Scams & Safety
- FBI History

Operation Broken Trust: Historic Investment Fraud Sweep (FBI Newsletter)

2010-12-11T15:44:00.001-08:00

Operation Broken Trust
Historic Investment Fraud Sweep

12/06/10


FBI Executive Assistant Director Shawn Henry, with Attorney General Eric Holder (right) and Chief Postal Inspector Guy Cottrell, talks about "Broken Trust."

Today, the Financial Fraud Enforcement Task Force announced the conclusion of Operation Broken Trust, the largest investment fraud sweep ever conducted in the U.S.

The 231 cases in the operation involved more than 120,000 victims who lost more than $8 billion.

Operation Broken Trust—which included both criminal and civil enforcement actions that occurred from August 16 through December 1, 2010—was unveiled during a Washington, D.C. press conference attended by representatives of the agencies that make up the task force, including U.S. Attorney General Eric Holder and FBI Executive Assistant Director Shawn Henry.

The goal of the operation was two-fold:

To root out and expose massive investment fraud scams across the nation; and
To alert the public about many phony investment scams. (See sidebar below for the FBI’s prevention tips.)

Avoiding Investment Fraud

- Be careful of any investment opportunity that makes exaggerated earnings claims, especially during a short period of time.

- Ask for written information about the investment, such as a prospectus, recent quarterly or annual reports, or an offering memorandum.

- Consult an unbiased third party, like an unconnected broker or licensed financial advisor, before investing.

- Don’t be fooled into believing an investment is safe just because someone you know is recommending it. So-called “affinity scams” are one of the favorite methods used to lure people in.

- If you feel you are being pressured into investing, don’t do it.

- Be wary of people you meet on social networking sites and in chat rooms, where investment fraud criminals have been known to troll for victims.

Operation Broken Trust focused on scams directly targeting individual investors, rather than long-term complex corporate fraud matters. In many instances, these criminals were trusted people within their communities—sometimes neighbors, co-workers, fellow church-goers—who betrayed that trust in order to line their own pockets. And the results were often devastating, with some victims losing their life savings, their homes, their livelihoods.

Each of the cases included in the sweep involved individual investors being deceived by individuals presenting “investment opportunities” that were either completely fictitious or not structured as advertised. An overwhelming number of the cases were high-yield investment frauds and Ponzi schemes. Others involved commodities fraud, foreign exchange fraud, market manipulation (i.e., “pump-and-dump” schemes”), real estate investment fraud, business opportunity fraud, affinity fraud, and the like.

The FBI has observed a steady increase in investment frauds, in particular Ponzi and market manipulation schemes. Since January 2009, we’ve opened more than 200 Ponzi cases, many with $20 million-plus losses. Based on our current caseload, the top five Ponzi scheme hot spots in the country are Los Angeles, New York, Dallas, Salt Lake City, and San Francisco, but keep in mind that these scams can and do happen anywhere.

We’ve had success in shutting down many and arresting those responsible, due in large part to our focus on partnerships—like our involvement in the Financial Fraud Enforcement Task Force—as well as intelligence-gathering and information-sharing efforts. And we continue to use sophisticated investigative techniques—like undercover operations to court-authorized electronic surveillance—to collect evidence in ongoing cases and to identify and stop criminals before they prey on others.

What about the victims? The FBI generally offers assistance to victims in fraud cases that fall under our jurisdiction (our partner agencies offer similar services). Our field office victim specialists can provide case status information, direct victims to organizations that can help with protecting or rebuilding credit, assist in documenting victims’ losses, help cope with stress, and even find government or community-based services for victims—especially the elderly and disabled—if their financial losses are severe.

In cases with hundreds or even thousands of victims, we can provide information using websites and toll-free phone lines.

Reflecting on the importance of collaboration with our law enforcement and private sector partners in combating investment fraud, Executive Assistant Director Henry said, “Together, we are smarter. Together, we are stronger. Together, we will continue to seek out those who look to profit at the expense of the hard-working men and women of the United States of America.”

Resources:
- Press release
- Operation Broken Trust case examples
- Attorney General Holder’s press conference remarks
- Executive Assistant Director Henry's press conference remarks
- Securities Fraud Awareness & Prevention Tips

IC3 Scam Alerts (December 2010)

2010-12-11T15:42:00.001-08:00

Internet Crime Complaint Center's (IC3)
Scam Alerts

This report, which is based upon information from law enforcement and complaints submitted to the IC3, details recent cyber crime trends and new twists to previously-existing cyber scams.

NEW TWIST ON EXTORTION/HIT MAN SCAM

The IC3 has received several complaints referencing a new twist on the extortion/hit man scam, which is now targeting nannies and day care providers. The fraudster contacts the potential victims via email claiming their team was hired by a friend of the victim to "terminate" them. The fraudster demands amounts ranging from $150,000 to $250,000 to call off the hit and claims he will hand over a tape containing evidence as to who hired him once the amount is paid. The recipient is threatened with murder and the kidnapping of the children in their care if they fail to comply.
The majority of the victims had some affiliation with a nanny position and speculated that the fraudster must have obtained their contact information through an online classified ad offering their services as nannies. Others stated they had advertised online that they were seeking a nanny, while one victim was reportedly a day care worker.

PAYMENT PROCESSOR POSSIBLY CONDUCTING A PONZI SCHEME

Since January 2010, the IC3 has received hundreds of complaints regarding a website that victims reportedly used to transfer money for the sales of firearms; however, the website has not allowed them to withdraw the funds after their merchandise was sold.
The website claims to be a payment processor to be used as an alternative to other familiar online payment transfer services and was created to allow for the purchase of items that others of its kind do not allow (e.g., firearms). The website encourages consumers to use their services by advertising that they send money to consumers or anyone with an email address, an individual can easily pay for anything using the web, and sign-up is free, quick, and easy.
The website appears to have been set up as a legitimate business but shortly after operations began, customers started experiencing funding delays. Ultimately, customers who received funds only received partial payments, and those payments were delayed by months.
Additional research indicates that the money submitted for transfer may have been fraudulently misappropriated. This scam appears to have become a Ponzi scheme with previous customers being paid by funds from new customers.

FRAUDSTERS PREYING ON INDIVIDUALS WHO ARE WANTING TO ADOPT

The IC3 received information from law enforcement and complaints filed with the IC3 concerning an adoption scam. The scam is an attempt to collect personal information and funds from individuals seeking to adopt a child. Victims reported responding to on-line advertisements for adoptions, such as "Baby Needs A Home." The operators of the site are fraudsters who claimed to have an overseas orphaned child in need of adoption. Preying on victims' emotions, the fraudsters explained how they promised to care for the child after the mother's death.
The fraudsters said they were not affiliated with an adoption agency because no such agencies exist in their area. Nevertheless, they asked the victims to send pictures of their family and to complete forms that required personal information such as Social Security Number and their mother's maiden name. Fraudsters sent the victims a birth certificate and pictures of a child. One victim reported that the birth certificate appeared altered. Fraudsters told victims to send hundreds of dollars via money order, credit card, or wire transfer to a bank account for legal fees. The fraudsters claimed they would "ship" the child upon receipt of the funds. Instead, the fraudsters pocketed the money gained from the scam and provided no children for adoption.

For more information regarding online scams visit our Press Room page for the most current Public Service Announcements.

http://www.ic3.gov/media/default.aspx

Telephone Collection Scam Related to Delinquent Payday Loans (IC3 Newsletter)

2010-12-11T15:41:00.001-08:00

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

December 1, 2010

TELEPHONE COLLECTION SCAM RELATED TO DELINQUENT PAYDAY LOANS

The IC3 receives a high volume of complaints from victims of payday loan telephone collection scams. In these scams, a caller claims that the victim is delinquent in a payday loan and must repay the loan to avoid legal consequences. The callers purport to be representatives of the FBI, Federal Legislative Department, various law firms, or other legitimate-sounding agencies. They claim to be collecting debts for companies such as United Cash Advance, U.S. Cash Advance, U.S. Cash Net, and other internet check cashing services.

One of the most insidious aspects of this scam is that the callers have accurate information about the victims, including social security numbers, dates of birth, addresses, employer information, bank account numbers, names and telephone numbers of relatives and friends. The method by which the fraudsters obtained the personal information is unclear, but victims often relay that they had completed online applications for other loans or credit cards before the calls began.
The fraudsters relentlessly call the victim's home, cell phone, and place of employment. They refuse to provide to the victims any details of the alleged payday loans and become abusive when questioned. The callers threaten victims with legal actions, arrests, and in some cases physical violence if they refuse to pay. In many cases, the callers even resort to harassment of the victim's relatives, friends, and employers.
Some fraudsters instruct victims to fax a statement agreeing to pay a certain dollar amount, on a specific date, via prepaid visa card. The statement further declares that the victim would never dispute the debt.
THESE TELEPHONE CALLS ARE AN ATTEMPT TO OBTAIN PAYMENT BY INSTILLING FEAR IN THE VICTIMS. DO NOT FOLLOW THE INSTUCTIONS OF THE CALLER.

If you receive telephone calls such as these, you should:

Contact your banking institutions;
Contact the three major credit bureaus and request an alert be put on your file;
Contact your local law enforcement agencies if you feel you are in immediate danger;
File a complaint at www.IC3.gov.

Fraudulent Notification Deceives Consumers (IC3 Newsletter)

2010-12-11T15:40:00.000-08:00

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

November 29, 2010

FRAUDULENT NOTIFICATION DECEIVES CONSUMERS OUT OF THOUSANDS OF DOLLARS

The IC3 continues to receive reports of letters and emails being distributed pursuant to prize sweepstakes or lottery schemes. These schemes use counterfeit checks that bear legitimate-looking logos of various financial institutions to fool victims into sending money to the fraudsters.

Fraudsters tell victims they won a sweepstakes or lottery, but to receive a lump sum payout, they must pay the taxes and processing fees upfront. Fraudsters direct individuals to call a telephone number to initiate a letter of instructions. The letter alleges that the victim may elect to take an advance on the winnings to make the required upfront payment. The letter includes a check in the amount of the alleged taxes and fees, along with processing instructions. Ultimately, victims believe they are using the advance to make the required upfront payment, but in reality they are falling prey to the scheme.
The victim deposits the check into their own bank, which credits the account for the amount of the check before the check clears. The victim immediately withdraws the money and wires it to the fraudsters. Afterwards, the check proves to be counterfeit and the bank pulls the respective funds from the victim's account, leaving the victim liable for the amount of the counterfeit check plus any additional fees the bank may charge.
Persons may fall victim to this scheme due to the allure of easy money and the apparent legitimacy of the check the fraudsters include in the letter of instruction. The alleged cash prizes and locations of the financial institutions vary.

Tips to avoid being scammed:

A federal statute prohibits mailing lottery tickets, advertisements, or payments to purchase tickets in a foreign lottery.
Be leery if you do not remember entering a lottery or sweepstakes.
Beware of lotteries or sweepstakes that charge a fee prior to delivering your prize.
Be wary of demands to send additional money as a requirement to be eligible for future winnings.

If you have been a victim of this type of scam or any other cyber crime, you can report it to the IC3 at: www.IC3.gov. The IC3 complaint database links complaints for potential referral to law enforcement for case consideration. Complaint information is also used to identify emerging trends and patterns to alert the public to new criminal schemes.

Smishing and Vishing And Other Cyber Scams to Watch Out For This Holiday (FBI Newsletter)

2010-11-24T12:52:00.000-08:00

Smishing and Vishing
And Other Cyber Scams to Watch Out For This Holiday

11/24/2010

You receive a text message or an automated phone call on your cell phone saying there’s a problem with your bank account. You’re given a phone number to call or a website to log into and asked to provide personal identifiable information—like a bank account number, PIN, or credit card number—to fix the problem.

But beware: It could be a “smishing” or “vishing”scam…and criminals on the other end of the phone or website could be attempting to collect your personal information in order to help themselves to your money. While most cyber scams target your computer, smishing and vishing scams target your mobile phone, and they’re becoming a growing threat as a growing number of Americans own mobile phones. (Vishing scams also target land-line phones.)

“Smishing”—a combination of SMS texting and phishing—and “Vishing”—voice and phishing—are two of the scams the FBI’s Internet Crime Complaint Center (IC3) is warning consumers about as we head into the holiday shopping season. These scams are also a reminder that cyber crimes aren’t just for computers anymore.

IC3 Tips to Protect Yourself
From Cyber Scams

- Don’t respond to text messages or automated voice messages from unknown or blocked numbers on your mobile phone.

- Treat your mobile phone like you would your computer…don’t download anything unless you trust the source.

- When buying online, use a legitimate payment service and always use a credit card because charges can be disputed if you don’t receive what you ordered or find unauthorized charges on your card.

- Check each seller’s rating and feedback along with the dates the feedback was posted. Be wary of a seller with a 100 percent positive feedback score, with a low number of feedback postings, or with all feedback posted around the same date.

- Don’t respond to unsolicited e-mails (or texts or phone calls, for that matter) requesting personal information, and never click on links or attachments contained within unsolicited e-mails. If you want to go to a merchant’s website, type their URL directly into your browser’s address bar.

Here’s how smishing and vishing scams work: criminals set up an automated dialing system to text or call people in a particular region or area code (or sometimes they use stolen customer phone numbers from banks or credit unions). The victims receive messages like: “There’s a problem with your account,” or “Your ATM card needs to be reactivated,” and are directed to a phone number or website asking for personal information. Armed with that information, criminals can steal from victims’ bank accounts, charge purchases on their charge cards, create a phony ATM card, etc.

Sometimes, if a victim logs onto one of the phony websites with a smartphone, they could also end up downloading malicious software that could give criminals access to anything on the phone. With the growth of mobile banking and the ability to conduct financial transactions online, smishing and vishing attacks may become even more attractive and lucrative for cyber criminals.

Here are a couple of recent smishing case examples:

Account holders at one particular credit union, after receiving a text about an account problem, called the phone number in the text, gave out their personal information, and had money withdrawn from their bank accounts within 10 minutes of their calls.
Customers at a bank received a text saying they needed to reactivate their ATM card. Some called the phone number in the text and were prompted to provide their ATM card number, PIN, and expiration date. Thousands of fraudulent withdrawals followed.

Other holiday cyber scams to watch out for, according to IC3, include:

Phishing schemes using e-mails that direct victims to spoofed merchant websites misleading them into providing personal information.
Online auction and classified ad fraud, where Internet criminals post products they don’t have but charge the consumer’s credit card anyway and pocket the money.
Delivery fraud, where online criminals posing as legitimate delivery services offer reduced or free shipping labels for a fee. When the customer tries to ship a package using a phony label, the legitimate delivery service flags it and requests payment from the customer.

For more information about the latest cyber crime scams, visit IC3’s website.

Holiday Shopping Tips (IC3)

2010-11-18T16:57:00.000-08:00

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

November 18, 2010

HOLIDAY SHOPPING TIPS

This holiday season the FBI reminds shoppers that cyber criminals aggressively create new ways to steal money and personal information. Scammers use many techniques to fool potential victims, including conducting fraudulent auction sales, reshipping merchandise purchased with stolen credit cards, and selling fraudulent or stolen gift cards through auction sites at discounted prices.

Fraudulent Classified Ads and Auction Sales

Internet criminals post classified ads and auctions for products they do not have, and make the scam work by using stolen credit cards. Fraudsters receive an order from a victim, charge the victim's credit card for the amount of the order, then use a separate, stolen credit card for the actual purchase. They pocket the purchase price obtained from the victim's credit card and have the merchant ship the item directly to the victim. Consequently, an item purchased from an online auction but received directly from the merchant is a strong indication of fraud. Victims of such a scam not only lose the money paid to the fraudster, but may be liable for receiving stolen goods.
Shoppers may help avoid these scams by using caution and not providing financial information directly to the seller, as fraudulent sellers will use this information to purchase items for their schemes. Always use a legitimate payment service to ensure a safe, legitimate purchase.
As for product delivery, fraudsters posing as legitimate delivery services offer reduced or free shipping to customers through auction sites. They perpetuate this scam by providing fake shipping labels to the victim. The fraudsters do not pay for delivery of the packages; therefore, delivery service providers intercept the packages for nonpayment and the victim loses the money paid for the purchase of the product.
Diligently check each seller's rating and feedback along with their number of sales and the dates on which feedback was posted. Be wary of a seller with 100% positive feedback, with a low total number of feedback postings, or with all feedback posted around the same date and time.

Gift Card Scam

Be careful when purchasing gift cards through auction sites or classified ads. It is safest to purchase gift cards directly from the merchant or retail store. If the gift card merchant discovers that your card is fraudulent, the merchant will deactivate the gift card and refuse to honor it for purchases. Victims of this scam lose the money paid for the gift card purchase.

Phishing and Smishing Schemes

In phishing schemes, a fraudster poses as a legitimate entity and uses emails and scam web sites to obtain victims' personal information, such as account numbers, user names, passwords, etc. Smishing is the act of sending fraudulent text messages to bait a victim into revealing personal information.
Be leery of emails or text messages that indicate a problem or question regarding your financial accounts. In this scam, fraudsters direct victims to follow a link or call a number to update an account or correct a purported problem. The link directs the victim to a fraudulent web site or message that appears legitimate. Instead, the site allows the fraudster to steal any personal information the victim provides.
Current smishing schemes involve fraudsters calling victims' cell phones offering to lower the interest rates for credit cards the victims do not even possess. If a victim asserts that they do not own the credit card, the caller hangs up. These fraudsters call from TRAC cell phones that do not have voicemail, or the phone provides a constant busy signal when called, rendering these calls virtually untraceable.
Another scam involves fraudsters directing victims, via email, to a spoofed web site. A spoofed web site is a fake site that misleads the victim into providing personal information, which is routed to the scammer's computer.
Phishing schemes related to deliveries are also rampant. Legitimate delivery service providers neither email shippers regarding scheduled deliveries nor state when a package is intercepted or being temporarily held. Consequently, emails informing of such delivery issues are phishing scams that can lead to personal information breaches and financial losses.

Tips

Here are some tips you can use to avoid becoming a victim of cyber fraud:

Do not respond to unsolicited (spam) email.
Do not click on links contained within an unsolicited email.
Be cautious of email claiming to contain pictures in attached files, as the files may contain viruses. Only open attachments from known senders. Scan the attachments for viruses if possible.
Avoid filling out forms contained in email messages that ask for personal information.
Always compare the link in the email with the link to which you are directed and determine if they match and will lead you to a legitimate site.
Log directly onto the official web site for the business identified in the email, instead of "linking" to it from an unsolicited email. If the email appears to be from your bank, credit card issuer, or other company you deal with frequently, your statements or official correspondence from the business will provide the proper contact information.
Contact the actual business that supposedly sent the email to verify if the email is genuine.
If you are asked to act quickly, or there is an emergency, it may be a scam. Fraudsters create a sense of urgency to get you to act quickly.
Verify any requests for personal information from any business or financial institution by contacting them using the main contact information.
Remember if it looks too good to be true, it probably is.

To receive the latest information about cyber scams, please go to the FBI web site and sign up for email alerts by clicking on one of the red envelopes. If you have received a scam email, please notify the IC3 by filing a complaint at www.IC3.gov. For more information on e-scams, please visit the FBI's New E-Scams and Warnings webpage athttp://www.fbi.gov/cyberinvest/escams.htm.

Sad But True Crime: Scam Targeted Holocaust Survivors' Fund (FBI Newsletter)

2010-11-09T17:44:00.000-08:00

Sad But True Crime
Scam Targeted Holocaust Survivors’ Fund

11/09/10


New York Assistant Director in Charge Janice Fedarcyk, with U.S. Attorney Preet Bharara, announces the unsealing of criminal charges.

For nearly six decades, a not-for-profit corporation known as The Conference on Jewish Material Claims Against Germany—or the Claims Conference—has been overseeing German government funds that assist Holocaust survivors.

So you can imagine our surprise and concern when we uncovered evidence that it had been the victim of fraud.

This afternoon at a New York City press conference, we announced that six corrupt Claims Conference employees in its Manhattan office—along with 11 other conspirators—have been charged in a decade-long scheme to defraud the organization and legitimate Holocaust victims out of more than $42 million.

The Claims Conference supervises several funds and processes thousands of applications a year. The two funds allegedly targeted for fraud were:

The Article 2 Fund, which makes monthly payments of $411 to survivors of Nazi persecution who make less than $16,000 a year and who either lived in hiding or a Jewish ghetto for 18 months or were incarcerated for at least six months in a concentration or forced labor camp; and
The Hardship Fund, which makes a one-time payment of approximately $3,600 to survivors forced to evacuate their hometowns and become refugees.

Applications by persons living in the U.S. are made to the Claims Conference’s office in Manhattan, usually by mail. The applicants provide identification documents, along with information about their family and experiences escaping Nazi persecution. Caseworkers with the Claims Conference verify an applicant’s history, often by checking external databases and archives, and sometimes through a personal interview. If approved for payment, a check is mailed to the applicant or electronically deposited into a bank account.


	Processing fingerprints during this morning’s arrests.

Claims Conference officials became suspicious of possible fraudulent activity within their organization in December 2009 and immediately contacted law enforcement. Our New York office began an investigation, with the full cooperation of the Claims Conference.

According to the criminal complaint filed in federal court in the Southern District of New York, here’s how the scheme generally worked:

Driven by crooked Claims Conference employees, former employees and other conspirators would recruit people—some unwitting—who weren’t eligible for the program (mostly individuals of the Jewish faith in the Russian immigrant community) to take part in the fraud.
To make it appear that applicants were eligible, identification documents were often altered (for example, a birth date was changed to make it appear that applicants were born during or before World War II) and fake Nazi persecution stories were often made up.
Fraudulent applications were reviewed and approved by corrupt Claims Conference employees.
Once the applicants received their money, they kept a portion but were instructed to pay certain “fees” using the rest—which of course ended up in the pockets of the conspirators. These “fees” were usually paid in the form of cash or money order.

Among those charged in the scheme are the former director of the Article 2 and Hardship Funds, other past and present Claims Conference employees, two law firm employees, a notary/document forger, and several other middlemen.

New York Assistant Director in Charge Janice Fedarcyk said that the victims of this scheme were “those who had already suffered at the hands of Nazi persecution only to have their experiences exploited again—this brazen miscarriage of the compensation program is, in its own way, a kind of crime against humanity.”

Web of Victims: A Chilling Case of 'Sextortion' (FBI Newsletter)

2010-11-05T15:59:00.000-07:00

Web of Victims
A Chilling Case of ‘Sextortion’

11/02/2010

The hacker knew every move the unsuspecting victim made. He controlled her computer webcam and microphone. He could see her in her bedroom, hear her conversations, knew every keystroke she made online. And he threatened to expose her secrets unless she bowed to his demands.

It may sound like the plot for a scary teen movie, but it actually happened, and there wasn’t just one victim—there were more than 200, and dozens of them were adolescent girls.

Don't Let It Happen to You

Here are a few precautions that can keep you from being victimized by a social engineering attack:

- Don’t take for granted that your computer’s anti-virus software is a guarantee against intrusions.
- Turn off your computer when you aren’t using it. (The majority of computers involved in the sextortion case were laptops; many of the victims chatted on social networks so much that they never turned off their machines.)
- Cover your webcam when not in use.
- Don’t open attachments without independently verifying that they were sent from someone you know.
- It’s okay to be suspicious. If you receive a message with an attachment from your mother at 3 a.m., maybe the message is not really from your mother. “Most people are too trusting when it comes to their computers,” Agent Kirkpatrick said.
- If your computer has been compromised and you are receiving extortion threats, don’t be afraid to talk to your parents or to call law enforcement.

Unlike many computer intrusions, where a hacker uses malicious software to steal identities or financial information, this case was primarily about spying and extortion—or as our Los Angeles cyber squad more aptly termed it, “sextortion.”

The hacker, a 31-year-old California man who was arrested in June after a two-year investigation, used malicious code to infect and control the computers of his victims. Then he searched for explicit pictures from their computers, downloaded them, and used the images in an attempt to extort more pictures and videos from them.

“What’s so frightening about this case was how easily the victims’ computers were compromised,” said Special Agent Jeff Kirkpatrick, one of our Los Angeles cyber investigators who worked the case.

After the hacker infected one computer, he used a popular social networking site—and a technique called “spear phishing”—to spread the virus. “It was a social engineering attack,” said Special Agent Tanith Rogers, co-investigator on the case. “The victims were tricked. They had no idea what had happened until it was too late.”

In several instances, the hacker posed online as a young woman’s friend or sister and sent messages with attachments asking if the victim wanted to see a scary video. Because the messages appeared to be from a trusted source, the victims usually didn’t think twice about opening the attachment. When they did, the virus secretly installed itself, and the hacker had total control over their computers—including all files and folders, webcams, and microphones.

Using similar spear phishing methods—posing as a friend or a trusted source—the hacker spread the virus through the social network like wildfire. In all, there were 230 victims and more than 100 computers impacted.

“And this guy was no computer genius,” Agent Kirkpatrick said. “Anybody could do what he did just by watching an online video and following the directions.”

Have Information on the Case? The hacker in the sextortion case used a variety of screen names and e-mail addresses, which are listed below. If you have information regarding the case—there may be other victims—please contact your nearest FBI office or submit a tip online.
Screen names: gui_blt Woods05 CoFfEkId014 ELEvatrHZrD03 Pimpcess03666 Your3name3here03 Bri23nice Dmagecntr137 H2IOW14 ELEvATrhRZd03 Playgrl37 Your3name3here3 goldlion14 Hotchit13w	E-mail address: yousoylammer@hotmail.com christ@yahoo.com gui_blt@live.com mistahxxxrightme@aim.com zapotin@hotmail.com guich_x@aim.com guicho_1.1@roadrunner.com mijangos3@msn.com

Victims—particularly teenage girls—were understandably devastated when they learned their privacy had been so completely violated. Many were afraid to tell their parents about the situation.

“He was smart,” Agent Rogers said of the hacker. “He used their fear to try to control them.”

For example, the hacker attached a pornographic picture of one victim in an e-mail and demanded sexually explicit video of her in return for not telling her parents about the pictures he had downloaded from her computer.

“If he hadn’t attempted to contact the victims,” Agent Rogers said, “he could have done this forever and gone undetected—the victims would never have known he was listening and watching. That,” she added, “is one of the most disturbing things about this case.”

G.I. Joe: The Rise of Cobra

2010-11-03T20:27:00.000-07:00

G.I. Joe: The Rise of Cobra is the kickass movie that stars Dennis Quaid, Channing Tatum, and Marlon Wayans. When businessman James McCullen (Eccleston) creates nanomite warheads, he first ships them to the Pentagon. However, when the convoy shipping the warheads is ambushed, a secret group of the top military personnel, called the G.I. Joes, gain two new members from the convoy, who wish to do nothing more than stop the warheads from being delivered to McCullen.

Stars:
For the full list, go to http://www.imdb.com/title/tt1046173/fullcredits#cast (there are too many stars to list.)

Trailer:

Fraud Advisory for Businesses (FBI Newsletter)

2010-10-21T15:17:00.000-07:00

Due to the lack of formatting, you will need to go to http://www.ic3.gov/media/2010/CorporateAccountTakeOver.pdf to get the full newsletter.

Fraud Advisory for Consumers (FBI Newsletter)

2010-10-21T15:14:00.000-07:00

Protect Yourself:

• Be wary of work-from-home opportunities
. Research the legitimacy of the company through the Better Business Bureau3 (for US-based companies) or WHOIS/Domain Tools4 (for international companies) before providing personal or account information and/or agreeing to work for them. In addition, TrustedSource.org can help you identify companies that may be maliciously sending spam based on the volume of email sent from their Internet Protocol (IP)5 addresses. See also the FTC’s recommendations6.

•

Be cautious about any opportunities offering the chance to work from home with very little work or prior experience. Remember: if it looks too good to be true, it usually is.

•

Never pay for the privilege of working for an employer. Be suspicious of opportunities that require you to pay for things up front, such as supplies and other materials.

•

Never give your bank account details to anyone unless you know and trust them.

• If you think you may be a victim of one of these scams, contact your financial institution immediately. Report any suspicious work-from-home offers or activities to the Internet Crime Complaint Center (IC3)7 at http://www.ic3.gov/default.aspx.

For more information, visit:

•

PhishBucket.org, a nonprofit organization dedicated to protecting job seekers from fraudulent job offers.

• OnGuardOnline.org. Sponsored by the FTC, this site provides practical tips from the federal government and the technology industry to help you be on guard against Internet fraud, secure your computer, and protect your personal information.

• Better Business Bureau, http://www.bbb.org/us/article/work-at-home-schemes-408.

This advisory was created through a collaborative cross-industry effort to protect consumers and businesses against account takeovers. Led by the Financial Services Information Sharing and Analysis Center (FS-ISAC), contributors include more than 30 of the largest financial institutions in the U.S., industry associations including the American Bankers Association (ABA), NACHA - The Electronic Payments Association, BITS/The Financial Services Roundtable; and federal regulatory and law enforcement agencies.

3 http://www.bbb.org/

4 http://www.domaintools.com/

5 An IP address identifies the company’s website host or network interface and location.

6 http://www.onguardonline.gov/topics/email-scams.aspx#3

7 The IC3 is a partnership between the Federal Bureau of Investigation (FBI), the National White Collar Crime Center (NW3C), and the Bureau of Justice Assistance (BJA)

Denron Partners Scam

2010-10-21T15:10:00.000-07:00

fromTamika Reese

toShane *****<**********1991@gmail.com>

dateWed, Oct 20, 2010 at 7:07 PM

subjectRE: [1] Message from Careerbuilder: We have an open position for you

hide details 7:07 PM (19 hours ago)

Hello Shane,

We have recently reviewed your resume on CareerBuilder and we are pleased to

announce that we have a job opening for you.

Below you will find a short introduction of our company and also a

description what the job entails.

DENRON HEALTHCARE PARTNERS LTD was founded in 1995 and has quickly grown to

be one of the largest resellers of medical equipment and apparatus in the

United Kingdom as well as in the rest of Europe. We work exclusively with

hospitals and other medical companies and groups supplying several hundred

types of products ranging from surgical needles and syringes to EKG and MRI

machines and everything in between. We have dozens of agreements and

contracts with top manufacturers around the world such as GE Healthcare,

Medtronic, Baxter International, Cardinal Health, Tyco Healthcare, Siemens

Medical Solutions, Philips Medical Systems, Zimmer Holdings, et cetera. Our

company has grown very fast during the last few years so now we have

expanded our market and business to the United States as well. As such we

have a big number of openings in almost every state and we are looking for

dedicated and hard working individuals to work for us and help us expand.

The reason for our success is the fact that we are able to meet our

customer's demands wherever and whenever. We are very flexible and we can

honor our orders when others cannot. This is due to the fact that we accept

almost any type of payments and we have a very fast delivery system which

combined with the great customer support we provide took us to where we are

today. We take great pride in what we do because it is not always easy to

satisfy all customer demands while still processing the orders very fast and

receiving payments for the products in a timely manner. This is why we need

you and bellow you will find the job description and what is asked of you.

Job description:

-While performing this job you will encounter no fees to be paid in advance

whatsoever;

-No employee from our company will ever ask you for any sensitive

information;

-You will not be involved in any kind of sales or contact with our

customers;

-Everything you will do is legal under the European Union/United States and

International laws as they are currently applied.

Your duties are:

-To receive payments from our customers which are mainly in form of checks

(only U.S. emitted checks, no international checks will be sent to you);

-Cashing the checks using your existing bank account;

-Forwarding as a money transfer that we pay for the remaining balance from

payments after deducting your 10% commission from each order you process.

Your benefits are:

-10% from each check your will process in the first month. Within one month

after receiving the first check you will receive $1,000 as fixed salary.

This is a commission based job, the faster your process orders the more your

income will increase. This bonus is given to also cover internet, phone or

gas bills. Please note that this salary will be sent after 30 days have

passed since you received your first payment to process.

After two months of working for us an increase to 15% commission from all

payments might be applied to your contract if you process and send all the

transfers to us in a timely manner. In this case you will be earning around

$1,200-1,300 per week as well as the $1,000 salary at the end of the month.

There are also minor bonuses for cashing the checks and sending the payment

to us very fast:

-Cash the check same day: $150 for each check;

-Cash the check within 24 hours: $100 for each check;

-Cash the check within 48 hours: $ 50 for each check.

The $1,000 salary will be sent to you in form of a cashier check.

The today's situation on the financial market requires us to open and fill

several of these job positions within our company; the job opening is that

of a Representative within the US. This opening will help our company to

reduce the time it takes to receive funding from orders that we receive each

month. And we offer you one of the highest incomes on the market today and

the minimal expenditures of time.

Presently with the number of orders we have we cannot put them on hold for

fear of losing our customers, secondly we cannot cash these payments from

the US soon enough, as international checks take about 28 working days to

cash anywhere in Europe. We lose a lot of time and money each month because

we have money transfer delays. Our clients could pay us where we want by

sending checks to an US address. What we need you to do is to provide us an

address where you can receive our customer checks. We need someone who can

receive the money through this method of payment. Regarding the check

process all you have to do is to receive the checks our customers will send

to your address, take them to your bank, cash them and send the remainder

amount to us after deducting all fees incurred and your commission. All fees

for transferring the funds will be supported from our share. Bonuses will

apply for cashing checks within 24 hours upon receiving a check. You will

always take your commission upfront.

We make direct contact for sales of products. Once orders are received and

processed we deliver the product to our customer (usually through USPS). The

customer receives and checks the product and proceeds to send the payment.

We accept all forms of payment but most of our customers pay using Bank

Checks and so to solve this problem and not lose any of our customers we

have decided to open this new job position. This job is legal according to

the U.S. legislation as it is today. Local money transfers take but a few

hours, so it will give us a possibility to get customer's payment almost

immediately.

PAYMENT AND SALARY:

For example you receive a check as payment for 3000.00 USD, you deduct your

commission (10%): 300.00 USD and then send to us the balance: 2700.00 USD.

In the first month you will receive around 15-20 orders under 3,000.00 USD

to process and after checking your performance records during that first

month the orders you will receive, may increase from 3,000.00 upwards to

6,000.00 USD. For example 20 transactions each around 3000.00 USD gives you

a total income of 6,000.00 USD per month and after establishing a close

co-operation with us you'll be able to operate with larger orders and you'll

be able to earn more. You will also deduct fees that are related to this job

(gasoline, western union fees, bank commissions, etc) from our balance, not

from your commissions. At first the checks you will receive will vary from:

$500.00 to $3,000.00. We will also send you a 1099 Form for tax deduction on

your part. Our payments will be issued out in your name and you can have

them cashed in your existing bank account, we don't accept newly created

bank accounts because it slows the cashing process. Deduct your percentage

and forward the balance to the company attorney manager via a western union

money transfer, the name will be given to you later after cashing a payment.

This job takes only 3-7 hours per week. You'll have a lot of free time for

taking up another job; you'll get good income and a regular job. This job is

very challenging and you should understand it. We are looking only for the

employee who satisfies our requirements and will be an earnest assistant.

We have health insurance and the 401K retirement savings plan as well as all

the other standard benefits that a major company usually provides.

Unfortunately we can only start talking about this after the first month has

passed since you're working for us. We consider the first month as a trial

period. In any case you do not have to pay for anything in advance; there

are no hidden costs for performing this job. Any fee you might encounter

will be deducted from our share of the funds before you send it to us.

You will receive next instructions step by step.

WORKING HOURS

This depends of how many checks you will receive but it won't take more than

2 hours to deposit the check and send an e-mail when the check arrives to

you. Also when checks arrive we will send you further instructions and all

details to complete the process with Western Union.

Unfortunately we cannot setup any interviews now, as we do not have any

representatives in US. We will be able to come to meet within the next few

months when the new offices will be opened in your area!

Please let me know if you are still interested and I will e-mail you the

contract. Also include phone numbers and e-mail address where you can be
reached. Within 24 hours after we will receive this information we will
forward you a copy of the contract you have to fill in, sign and e-mail back
to us.

DENRON HEALTHCARE PARTNERS

Tamika Reese
Marble Arch Tower
55 Bryanston Street
London W1H 7AA
United Kingdom
FAX 011-44-210-012-6839

City of Ember

2010-10-15T10:27:00.000-07:00

City of Ember is the kick butt movie from the director of Monster House.
"When the world ended, a group of elite scientists and engineers determined that the only way to save their way of life was to build an underground city far below the decimated surface. Deciding upon a lifespan of 200 years for their city, the key to salvation was locked away in a metal box to be handed down from one mayor to the next until the time was right. But somewhere along the way the box was forgotten… Years and years have passed and the once mighty City of Ember steadily falters as corrupt officials dictate an antiquated way of life and the massive generator that powers the city frequently fails. Now it is up to two ambitious youths, Doon Harrow (Harry Treadaway) and Lina Mayfleet (Saoirse Ronan) to solve the mystery behind the origins of their city and find a way out before their world is blanketed in darkness forever." - joel massie

Stars:
Harry Treadaway - Doon Harrow
Saoirse Ronan - Lina Mayfleet
Bill Murray - Mayor Cole
Amy Quinn/Catherine Quinn - Poppy
Tim Robbins - Loris Harrow

Trailer:

Medicare Fraud & Organized Crime Bust (FBI Newsletter)

2010-10-15T09:52:00.000-07:00

Fraud and Organized Crime Intersect
Eurasian Enterprise Targeted

10/13/10


FBI New York Assistant Director in Charge Janice Fedarcyk, along with U.S. Attorney Preet Bharara, Southern District of New York (left), and New York Police Commissioner Ray Kelly, announce the indictment of 44 members and associates of an Armenian-American organized crime enterprise in a $100 million Medicare fraud, among other crimes.

It was the largest Medicare fraud scheme ever committed by a single enterprise and criminally charged by the Department of Justice. Today, 73 defendants—including members and associates of an Armenian-American organized crime enterprise—were publicly named in federal indictments announced in five states. They were charged with various health care fraud-related crimes involving more than $163 million in fraudulent billings.
Of those indicted, 55 were arrested early this morning in a nationwide takedown carefully planned and carried out by the FBI and our federal, state, and local partners. More than two dozen search warrants were also executed at the same time.
According to the indictments, the Armenian-American organized crime ring behind the scheme is the Mirzoyan-Terdjanian Organization—named after its principal leaders Davit Mirzoyan and Robert Terdjanian. Although headquartered in New York City and Los Angeles, the group operates throughout the U.S. and around the world. And like many criminal enterprises, members of the organization are alleged to have used violence and threats of violence to ensure respect for and payments to its leadership.
Among those charged today in New York was Armen Kazarian, the so-called “Thief-in-Law,” a member of a select group of high-level criminals from Russian and former Soviet nations. The New York indictment also included charges that the organization operated a multi-million-dollar scheme to defraud private insurance companies. Other locations where Medicare fraud indictments were announced and arrests made today included California, Georgia, New Mexico, and Ohio.
How the Medicare scheme worked. The lynchpin of the scheme—no matter where it was carried out—was stolen identities. Some of the subjects allegedly stole the identities of thousands of Medicare beneficiaries from around the country, as well as the identities of doctors who were usually licensed to practice in more than one state. Other subjects leased office space and opened phony clinics—or, in some instances, simply rented a post office box. And still other subjects opened bank accounts to receive Medicare funds—often in the name of the doctor whose identity they stole—and submitted applications to Medicare to become Medicare providers.
Once becoming approved Medicare providers, the subjects—who had extensive knowledge of the Medicare system, including what codes to use—would start to bill Medicare for services never provided, using the stolen beneficiary information. And as soon as the funds were directly deposited by Medicare into the designated bank accounts set up to receive them, the money was withdrawn and laundered and sometimes sent overseas.
In many instances, even though Medicare would identify and shut down the phony clinics after several months, members of the criminal enterprise would simply open up another fraudulent clinic somewhere else, usually in another state. All told, the investigation uncovered at least 118 phony clinics in 25 states.
Eventually, with the dedicated assistance of our partners, we gathered the evidence needed to shut these operators down. In doing so, we combined our expertise in uncovering major health care fraud with our experience in dismantling major criminal enterprises to target a national threat.

Cyber Fraud (FBI Newsletter)

2010-10-01T16:33:00.000-07:00

CYBER BANKING FRAUD
Global Partnerships Lead to Major Arrests

10/01/10

Members of the theft ring managed to steal $70 million. View: Wanted poster of suspects.

The cyber thieves were smart. Instead of targeting corporations and large banks that had state-of-the-art online security, they went after the accounts of medium-sized companies, towns, and even churches. Before they were caught, members of the theft ring managed to steal $70 million.

Today, with our law enforcement partners in the United States, the United Kingdom, Ukraine, and the Netherlands, we announce the execution of numerous arrests and search warrants in multiple countries in one of the largest cyber criminal cases we have ever investigated.

Cyber Theft Ring

View Graphic (PDF)

“This was a major theft ring,” said Gordon Snow, assistant director of the FBI’s Cyber Division. “Global criminal activity on this scale is a threat to our financial infrastructure, and it can only be effectively countered through the kind of international cooperation we have seen in this case.”

Using a Trojan horse virus known as Zeus, hackers in Eastern Europe infected computers around the world. The virus was carried in an e-mail, and when targeted individuals at businesses and municipalities opened the e-mail, the malicious software installed itself on the victimized computer, secretly capturing passwords, account numbers, and other data used to log into online banking accounts.

The hackers used this information to take over the victims’ bank accounts and make unauthorized transfers of thousands of dollars at a time, often routing the funds to other accounts controlled by a network of “money mules.” Many of the U.S. money mules were recruited from overseas. They created bank accounts using fake documents and phony names. Once the money was in their accounts, the mules could either wire it back to their bosses in Eastern Europe, or turn it into cash and smuggle it out of the country. For their work, they were paid a commission.

Yesterday, our New York office arrested 10 subjects related to the case, and we are seeking 17 others. Those arrested are charged with using hundreds of false-name bank accounts to receive more than $3 million from victimized accounts.

In all, the global theft ring attempted to steal some $220 million, and was actively involved in using Zeus to infect more computers. But beyond the actual and potential monetary loss, this case is significant because of the extraordinary level of cooperation among international law enforcement to stop the group. And it also sends a message to hackers around the world that there are fewer safe havens from which they can operate.

“There are many challenges in a complicated global case like this one,” said Weysan Dun, special agent in charge of our Omaha office, where the investigation began in May 2009 when agents discovered a pattern of suspicious banking transactions. “With multiple countries involved, there are differences in times zones, geography, and culture, not to mention that all our cyber laws are not the same. “But those differences were overcome,” Dun said, “and the results speak for themselves.”

He added, “The international tolerance for this kind of criminal activity is decreasing. Our partners overseas are dealing more aggressively and effectively with cybercrime than ever before. The number of nations that collaborated and worked in partnership with the Bureau on this case represents a very significant step forward in the way we investigate these cases.”

All Scams and More

My absence

Child Predators: The Online Threat Continues to Grow (FBI Newsletter)

Fast & Furious

Tooth Fairy

2010 Events

Crazy Heart

Meet the Parents

Eclipse

Iron Man 2

A Byte Out of History: Turning the Tables on Telemarketing Fraud (FBI Newsletter)

Operation Broken Trust: Historic Investment Fraud Sweep (FBI Newsletter)

IC3 Scam Alerts (December 2010)

Internet Crime Complaint Center's (IC3) Scam Alerts

NEW TWIST ON EXTORTION/HIT MAN SCAM

PAYMENT PROCESSOR POSSIBLY CONDUCTING A PONZI SCHEME

FRAUDSTERS PREYING ON INDIVIDUALS WHO ARE WANTING TO ADOPT

Telephone Collection Scam Related to Delinquent Payday Loans (IC3 Newsletter)

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

December 1, 2010

TELEPHONE COLLECTION SCAM RELATED TO DELINQUENT PAYDAY LOANS

If you receive telephone calls such as these, you should:

Fraudulent Notification Deceives Consumers (IC3 Newsletter)

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

November 29, 2010

FRAUDULENT NOTIFICATION DECEIVES CONSUMERS OUT OF THOUSANDS OF DOLLARS

Tips to avoid being scammed:

Smishing and Vishing And Other Cyber Scams to Watch Out For This Holiday (FBI Newsletter)

Holiday Shopping Tips (IC3)

Intelligence Note

Prepared by theInternet Crime Complaint Center (IC3)

November 18, 2010

HOLIDAY SHOPPING TIPS

Fraudulent Classified Ads and Auction Sales

Gift Card Scam

Phishing and Smishing Schemes

Tips

Sad But True Crime: Scam Targeted Holocaust Survivors' Fund (FBI Newsletter)

Web of Victims: A Chilling Case of 'Sextortion' (FBI Newsletter)

G.I. Joe: The Rise of Cobra

Fraud Advisory for Businesses (FBI Newsletter)

Fraud Advisory for Consumers (FBI Newsletter)

Denron Partners Scam

City of Ember

Medicare Fraud & Organized Crime Bust (FBI Newsletter)

Cyber Fraud (FBI Newsletter)

Internet Crime Complaint Center's (IC3)
Scam Alerts