Jury Duty Fraud Schemes

Some fraud schemes refuse to die. Jury duty fraud schemes existed long before phishing, malware and other cybercrime methods became synonymous with identity theft. Yet just this month, the U.S. Marshals Service issued a fraud advisory about this old-school con that’s enjoying a resurgence. Common methods Here’s how jury duty scams work: Perpetrators posing as court officers, U.S. Marshals and other members of law enforcement call unsuspecting victims, warning them that they’re about to be arrested because they haven’t reported for jury duty. When the targets assert they haven’t been notified that they’ve been selected, the scammers ask for information to “verify their records.” The information the scammers want, of course, is a victim’s Social Security number and date of birth. Some go a step further and...

Healthcare Data Breaches Can Threaten Your Financial Well-Being

Like many sectors of the economy, the healthcare industry regularly suffers data breaches. Healthcare  data breaches can threaten your financial well-being.  Healthcare analytics company Protenus has found that nearly 32 million patient records were breached between January and June 2019 alone. Alarmed? You should be. However, there are steps you can take to reduce the risk that thieves will get a hold of your medical records and use them for nefarious purposes. Why they’re valuable Unlike other types of personal data, healthcare records command a hefty premium on the black market. That’s at least partly because criminals can potentially use information about an individual’s health to blackmail him or her. Also, stolen medical records include valuable details about people’s identities. In fact, there’s usually enough information in medical files...

Defrauded? Prioritize Evidence Preservation

You may suspect that an employee has stolen from your company. But without evidence of a crime, you’ll have a hard time pursuing prosecution. So if you discover a fraud, first call your attorney. Then take immediate steps to preserve the evidence. Safeguard paper documents Place any hard documents related to the possible fraud in a safe location that’s accessible only to key people. The fewer who handle it, the better. Don’t make notes on any paper documents and, unless necessary, don’t let them be handled. Instead, make separate notations about when and where they were found and how you preserved them. A court case can be derailed if you don’t preserve the chain of evidence and can’t prove to a judge’s satisfaction that the documents haven’t...

5 Business Service Scams to Watch Out For

Preventing fraud from costing your company can sometimes seem like a game of whack-a-mole: Squash one scheme and another one pops up. Business service scams are particularly abundant. Fraud perpetrators know that business owners don’t always have time to verify the identities of salespeople or service reps and the legitimacy of their claims.  Your best defense is to refuse to pay anyone anything until you’ve ascertained the facts. It also helps to know what schemes are popular with criminals. Here are 5 business service scams to watch out for. (1) Utility Bill Fraudsters Someone claiming to be from your gas, electric or water company may call and say services are about to be cut off for non-payment. However, you can stop the discontinuation if you immediately pay the...

When Limited Partners Suspect General Partners of Fraud

Fraud suspicions are hard enough to investigate if you’re a business owner and call the shots. But what if you’re a limited partner (LP) in a business where a general partner (GP) is possibly engaged in mismanagement, self-dealing or fraud? With little control over the company, limited partners that suspect general partners of fraud face several challenges. The problem In a limited partnership, one or more general partners (GPs) manage the business while limited partners (LPs) contribute capital and share in the profits. LPs don’t run or manage the business. In fact, in most states, if they become involved in management decisions they can lose their LP status. Other states allow minor exceptions to this rule by, for example, allowing an LP to vote on issues that...

Your Online Match May be a Fraudster

According to various estimates, approximately 25% to 30% of online dating accounts involve scammers. Therefore, if you maintain a dating platform account, you need to know that a significant portion of accounts — including possible “matches” that contact you — belong to fraud perpetrators.  Yes, your online match may be a fraudster.  Here’s something else you should know: The dating app provider may be using these bad actors to pad its own bottom line. Love connection? The Federal Trade Commission (FTC) says that Match Group, Inc., the owner of Match.com and other dating sites, did just that. In a lawsuit filed by the FTC, the company is accused of allowing millions of its members to receive “You caught his eye” notices from accounts it knew were likely...

Creepers are a Threat to Your Business

If you devote all your business’s security resources to fending off hackers and other cybercriminals, you may be unlocking the door, literally, to more basic types of theft. “Creepers” are criminals who gain access to offices or other physical facilities via unlocked doors and social engineering tactics. Once in, they steal proprietary information, inventory, computers and personal property, or gather information that makes it easier to hack your network.  As such, creepers are a threat to your business. Creepers in action A major energy company’s Houston office was infiltrated by a creeper who’s believed to have stolen sensitive information, possibly to sell to a rival company or foreign government. Surveillance footage released by the FBI shows a man walking through an unlocked door in the middle of...

Protecting Against International Trade Fraud

The U.S. economy depends on import and export markets to run as designed. After all, revenue from trade tariffs and duties contribute $30 billion annually to federal government coffers. Unfortunately, fraud regularly throws a wrench in the works of global trade, and individual businesses suffer. Your company might, for example, lose money if a seller ships substandard goods or it could get fleeced if it turns out that a shipment doesn’t exist.  Be vigilent in protecting against international trade fraud. The problem with letters of credit To facilitate international trade, buyers and sellers often rely on documentary letters of credit (DLCs). For a fee, banks issue DLCs that pay sellers from buyers once the specified terms of the DLC are fulfilled. These documents theoretically shift risk to...

Help Stop Elder Financial Abuse

It’s one of the most difficult types of fraud to unearth. But it doesn’t directly affect businesses or the average consumer — in large part because its victims rarely report it. In fact, they’re often prevented from doing so by perpetrators.  What is it? Financial abuse of seniors, or elder fraud. Many thousands of Americans are victimized each year and some observers fear these crimes are becoming more widespread. But you can help stop elder financial abuse. Learn the signs and, as the saying goes, if you see something, say something. Vulnerable targets Older individuals with retirement savings, accumulated home equity and other significant assets make appealing targets for unscrupulous family members, caregivers, financial advisors, fiduciaries and scam artists who insinuate themselves into their victims’ lives. Seniors could...

Put the Brakes on Lapping Schemes

Lapping is one of the most common ways crooked employees skim money from their employers. In these schemes, a perpetrator uses receipts from one account to cover theft from another. Here’s what it looks like and how you can put the brakes on lapping schemes. Starting small Lapping scams usually start small, with an employee pocketing a payment from ABC company and using a payment from XYZ company to hide the loss. As time goes on, however, the amounts get larger and the employee is forced to maintain detailed records to track the movement of money. This house of cards usually tumbles when the employee makes an error. One commonly cited example is the man who stole $150,000 by programming an elaborate computer scam based on 29-day cycles....