Consumers continue to lose money from work-from-home scams that assist cyber criminals move stolen funds. Worse yet, due to their deliberate or unknowing participation in the scams, these individuals may face criminal charges.
Work-from-home scam victims are often recruited by organized cyber criminals through newspaper ads, online employment services, unsolicited emails or “spam”,¹ and social networking sites advertising work-from-home opportunities. Once recruited, however, rather than becoming an employee of a legitimate business, the consumer is actually a “mule” for cyber criminals who use the consumer’s or other victim's accounts to steal and launder money. In addition, the consumer’s own identity or account may be compromised by the cyber criminals.
Example of a Work-From-Home Scheme:
• An individual applies for a position as a rebate or payments processor² through an online job site or through an unsolicited email.
• As a new employee, the individual is asked to provide his/her bank account information to his/her employer or to establish a new account using information provided by the employer.
• Funds are deposited into the account that the employee is instructed to wire to a third (often
international) account. The employee is instructed to deduct a percentage of the wired
amount as their commission.
• However, rather than processing rebates or processing payments, the individual is actually
participating in a criminal activity by laundering stolen funds through his/her own account or a newly established account.
In February 2010, the U.S. Federal Trade Commission (FTC) coordinated with state law enforcement officials and other federal agencies to announce a sweeping crack down on job and work-from-home fraud schemes fueled by the economic downturn. Individuals who are knowing or unknowing participants in this type of scheme could be prosecuted.
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 fromfraudulent 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.
¹ Cyber criminals may also spoof a legitimate business to entice you into opening the email, which may contain a fraudulent application for information or malware.
² Other common job titles for these schemes include trading partner or currency trader.
³ http://www.bbb.org/
⁴http://www.domaintools.com/
⁵An IP address identifies the company’s website host or network interface and location.
⁶http://www.onguardonline.gov/topics/email-scams.aspx#3
⁷The 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).
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Showing posts with label scheme. Show all posts
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Wednesday, October 20, 2010
Monday, August 17, 2009
Businesses Beware Of Mass Marketing Scams
Almost everyone has heard horror stories about individuals who have been taken in by mass marketing fraud schemes—from phony sweepstakes to lottery scams. But here’s something you may not know: the very same fraudsters who target individual consumers also target businesses.
Illicit mass marketers know that the keepers of corporate funds may be just as susceptible to fake ploys as anyone else. And while business-oriented fraud usually results in losses of a few hundreds dollars the first time a company is hit, employees may continue to fall victim to these scams if the company has insufficient internal controls.
So what sort of mass marketing frauds are perpetrated against businesses? Here are just a few examples of what might happen to your companies:
* Masquerading as your usual office supplies provider, a fraudulent mass marketer contacts your employees, offering products at reduced or current prices in anticipation of impending rate increases. After paying the invoice, your company never receives the supplies it purchased.
* Your organization is asked to buy ad space in a business directory. The directory never sees the light of day, or only scammed companies like yours receive a copy.
* Criminals send invoices for unordered or undelivered products showing higher-than-agreed-upon prices, trying to exploit poor communication channels that may exist in your company and hoping that phony invoices will be paid without a second look.
* Your business receives an information packet offering to create and host your website. The packet includes a card that must be returned in order to “opt out” of the service, but the card is simply ignored or thrown out. Your company is then billed for web services it never ordered.
* In a variation of the advance-fee scheme that often targets individual consumers, perpetrators—usually targeting small businesses—offer low interest loans in exchange for an advance fee. You pay the fee, but your business never receives the loan.
While the FBI and other law enforcement agencies vigorously investigate frauds of all kinds, there are steps your businesses can take to protect themselves. For example:
* Educate yourself and your employees—especially frontline and accounts payable and receivable personnel—about common fraud schemes;
* Always ask for offers in writing, and require a written contract or purchase order for ANY transaction;
* Carefully review all invoices and compare them to expense records to make sure they are legitimate (and keep all records!);
* Use a credit card for purchasing supplies and services (if the vendor fails to deliver, you can dispute the charges);
* Don’t give out full names of employees, as fraudsters can obtain an employee’s name and then later claim this individual authorized the purchase of a product or service; and
* Be wary of accepting checks, because in some cases perpetrators have conducted a series of smaller, legitimate transactions to enhance their credibility and then used a counterfeit check to pay for a large order.
If you suspect you’ve been scammed, file a complaint with the Federal Trade Commission’s Consumer Sentinel, a database accessed by law enforcement agencies around the country. You can also contact your local FBI office.
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Illicit mass marketers know that the keepers of corporate funds may be just as susceptible to fake ploys as anyone else. And while business-oriented fraud usually results in losses of a few hundreds dollars the first time a company is hit, employees may continue to fall victim to these scams if the company has insufficient internal controls.
So what sort of mass marketing frauds are perpetrated against businesses? Here are just a few examples of what might happen to your companies:
* Masquerading as your usual office supplies provider, a fraudulent mass marketer contacts your employees, offering products at reduced or current prices in anticipation of impending rate increases. After paying the invoice, your company never receives the supplies it purchased.
* Your organization is asked to buy ad space in a business directory. The directory never sees the light of day, or only scammed companies like yours receive a copy.
* Criminals send invoices for unordered or undelivered products showing higher-than-agreed-upon prices, trying to exploit poor communication channels that may exist in your company and hoping that phony invoices will be paid without a second look.
* Your business receives an information packet offering to create and host your website. The packet includes a card that must be returned in order to “opt out” of the service, but the card is simply ignored or thrown out. Your company is then billed for web services it never ordered.
* In a variation of the advance-fee scheme that often targets individual consumers, perpetrators—usually targeting small businesses—offer low interest loans in exchange for an advance fee. You pay the fee, but your business never receives the loan.
While the FBI and other law enforcement agencies vigorously investigate frauds of all kinds, there are steps your businesses can take to protect themselves. For example:
* Educate yourself and your employees—especially frontline and accounts payable and receivable personnel—about common fraud schemes;
* Always ask for offers in writing, and require a written contract or purchase order for ANY transaction;
* Carefully review all invoices and compare them to expense records to make sure they are legitimate (and keep all records!);
* Use a credit card for purchasing supplies and services (if the vendor fails to deliver, you can dispute the charges);
* Don’t give out full names of employees, as fraudsters can obtain an employee’s name and then later claim this individual authorized the purchase of a product or service; and
* Be wary of accepting checks, because in some cases perpetrators have conducted a series of smaller, legitimate transactions to enhance their credibility and then used a counterfeit check to pay for a large order.
If you suspect you’ve been scammed, file a complaint with the Federal Trade Commission’s Consumer Sentinel, a database accessed by law enforcement agencies around the country. You can also contact your local FBI office.
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Friday, March 27, 2009
MyWireless.org Consumer Advisory - Beware of a New Form of an Old Scam: 'Missed Calls' from International Area Codes '649' and '809'
/PRNewswire-USNewswire/ -- Today the national consumer advocacy coalition MyWireless.org(R) warned wireless consumers across the country about the latest twist on a scam 'missed call' scheme. Wireless companies have detected a pattern of calls that ring their customers' number once or twice and then disconnect. When the number appears on the customer's cell phone as a missed call, it appears to be a typical domestic three-digit phone number starting with the "649" area code. If the customer decides to return the missed call, the call is returned to an Adult Entertainment chat line in the Turks and Caicos, outside the reach of U.S. regulators. While wireless companies are working to block suspicious numbers on their networks, some individuals may be victims of this and similar schemes involving international area codes and end up being billed for expensive international call and chat line charges.
Brian Johnston, MyWireless.org's Director of Communications and Federal Advocacy said, "Unfortunately, this type of scam has become a fairly common occurrence in recent years. Scamsters in the past have tricked consumers into making expensive calls to international chat lines by leaving a message on answering machines, e-mail accounts, and now cell phone call logs," he continued, "urging the customer to call a number in the "809," "284," "876" (or some other) international area code to collect a prize, find out about a sick relative, etc., by engaging in chat."
MyWireless.org urges wireless consumers to always check an area code first before returning a call to an unknown caller. Be skeptical about area codes you don't recognize, especially: "649" (Turks and Caicos); "809" (Dominican Republic); "284" (British Virgin Islands); "876" (Jamaica); "758" (St. Lucia); or "664" (Montserrat). There are dozens of area codes (mostly in the Caribbean islands) which connect callers to an international telephone number. In addition, if you do not make international calls, ask your wireless carrier to block outgoing international calls on your account.
For more information: The Federal Trade Commission and the Federal Communications Commission have issued consumer advisories on this subject, and these scams have also been identified by the National Fraud Information Center (NFIC) and the Better Business Bureau (BBB) as potentially costing victims lots of money, since U.S. consumers are unaware at the time of the international number expense until they receive their monthly bill. If you suspect you have received a form of this 'spoofed call,' and would like to file a complaint, please see the FTC Fact Sheet on International Telephone Number Scams: http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel05.pdf, and the similar FCC Consumer Advisory: http://www.fcc.gov/cgb/consumerfacts/809.html, for reporting contacts.
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Brian Johnston, MyWireless.org's Director of Communications and Federal Advocacy said, "Unfortunately, this type of scam has become a fairly common occurrence in recent years. Scamsters in the past have tricked consumers into making expensive calls to international chat lines by leaving a message on answering machines, e-mail accounts, and now cell phone call logs," he continued, "urging the customer to call a number in the "809," "284," "876" (or some other) international area code to collect a prize, find out about a sick relative, etc., by engaging in chat."
MyWireless.org urges wireless consumers to always check an area code first before returning a call to an unknown caller. Be skeptical about area codes you don't recognize, especially: "649" (Turks and Caicos); "809" (Dominican Republic); "284" (British Virgin Islands); "876" (Jamaica); "758" (St. Lucia); or "664" (Montserrat). There are dozens of area codes (mostly in the Caribbean islands) which connect callers to an international telephone number. In addition, if you do not make international calls, ask your wireless carrier to block outgoing international calls on your account.
For more information: The Federal Trade Commission and the Federal Communications Commission have issued consumer advisories on this subject, and these scams have also been identified by the National Fraud Information Center (NFIC) and the Better Business Bureau (BBB) as potentially costing victims lots of money, since U.S. consumers are unaware at the time of the international number expense until they receive their monthly bill. If you suspect you have received a form of this 'spoofed call,' and would like to file a complaint, please see the FTC Fact Sheet on International Telephone Number Scams: http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel05.pdf, and the similar FCC Consumer Advisory: http://www.fcc.gov/cgb/consumerfacts/809.html, for reporting contacts.
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