Bob Jensen's Threads on Discovering and Reporting of Frauds and Scams
Bob Jensen at Trinity University 

Table of Contents

Organization (the World's largest such organization) for Security and Co-operation in Europe --- http://www.osce.org/ 

Bob Jensen's American History of Fraud ---  http://www.trinity.edu/rjensen/415wp/AmericanHistoryOfFraud.htm

Anti-Telemarketing Script

How to Opt Out of Credit Card Offers That You Do Not Solicit

What mobile phone companies don't want you to know

Important Links for Reporting Frauds (including ID theft) and Important Things to Know in Avoiding Fraud

Online (Internet) Frauds

Investing Scams

Tax Scams

Free Fraud Alert Services

Fake Drugs (Medications)

What can you do to prevent being taken on eBay?

Medicare Drug Plan Frauds

Widespread price scanner fraud and errors

Dirty Secrets of Debit/Credit Card Companies, Banks, and Credit Rating Agencies

The Latte Principle of Spending versus Saving

Dirty Secrets of Credit Counseling Fraud

Exploiting the Poor

Lost Hotel Card (Door Key) Fraud

School Tax Scams

Consumers Beware of Unsuspected Automatic Billings

Free Credit Reports and FICO Scores:
What about your secret, hush-hush, Bankruptcy Risk Score that you don't even know about?

Rental Car and City Tax Rip Offs 

Hotel Heists: Beware of nuisance hotel fees

Academic Conferences that Rip Off Colleges:  Do you really want to participate in these frauds?

Product Labeling Fraud (Including Food, Vitamin, and Gas Mileage Frauds)

Free Lunch, Dinner, and/or Night in a Post Resort 

Charity Frauds and Fraud Reporting  

Protect Yourself From Pretexting

Identity (ID) Theft Prevention and Reporting

Lax Government Agency Oversight

Nigerian Fraud Email Gallery

Labor Union Corruption

Free Fraud Alert Services

Online (Internet) Frauds, Consumer Frauds, and Credit Card Scams 

Social Networking Dangers

Diamond Rating Scams

Computer Security --- http://www.trinity.edu/~rjensen/245glosf.htm#Security1 
Also see http://www.trinity.edu/rjensen/ecommerce/000start.htm#SpecialSection 

Accounting Internal Controls ---

All Homeowners Should Take Note of This Likely Change in Their Homeowners' Insurance Policies
Higher Deductibles Sting Homeowners
...more insurers change how they calculate deductibles, especially for damage caused by windstorms and other natural events. The newer method of figuring deductibles is based on a percentage of the insured value of your home -- typically between 1% and 5%, and even higher in earthquake zones. With home prices having soared in many areas in recent years, this often works out to be far more costly to the homeowner than the traditional flat-dollar method of figuring deductibles, by which you pay the first $1,000 or so of home repairs.
"Higher Deductibles Sting Homeowners," The Wall Street Journal via Market Watch, August 1, 2007 --- Click Here

TOP TEN RETAIL RIPOFFS EXPOSED!!
Sneaky Snake Sales Tricks and How to Avoid Being BIT! http://www.trampolinesales.com/ripoffs.htm

Global Corruption (in legal systems) Report 2007 --- http://www.transparency.org/content/download/19093/263155

Automobile Financing and Cheating
I have a Web document on automobile financial fraud and dirty tricks at http://www.trinity.edu/rjensen/FraudDealers.htm

Just Say No to Tax Refund Anticipation Loans  

Medical and Drug Company Frauds   (Including how to safely buy cheaper medications)

Danger, danger: 5 tips for using a public PC

IDENTITY THEFT:  How to Guard Against Theft of Your Identity  

How can you restore your identity if it has been stolen?

Commercial Scholarly and Academic Journals and Oligopoly Textbook Publishers
Are Ripping Off Libraries, Scholars, and Students  

Payola in the Music Industry 

Mortgage Advice  

Reverse Mortgages 

Vegetarian Food Frauds 

Click Fraud

Deed Swapping and Other Home Equity Scams 

Diploma Mill Frauds and Gray Zone Borderline Education Frauds 

What Accountants Need to Know

Compare telephone calling plans --- http://www.callsense.com/

GetHuman --- http://gethuman.com/us/

Banking Online Safer Than Checks:  Why you need a Uni-Ball pen!
Phoenix is the city most at risk for identity fraud, according to the Identity Theft Resource Center. Their new survey shows writing a check is not safer than banking online because of a scam called "check washing." The thief erases the ink on a check, fills in whatever he wants, and cleans out your bank account. But never fear. Where there's a scam like check fraud, there's sure to be a company with a profitable solution. Uni-Ball makes a pen filled with a specially formulated ink that can't be washed off. It comes in several elegant designs, for the sophisticated check-writer.
"Banking Online Safer Than Checks," NPR, October 5, 2007 --- http://www.npr.org/templates/story/story.php?storyId=15027414
Jensen Comment
It might be a good idea to simply carry a Uni-Ball or similar "unwashable" ink pen with your check book.

The Uni-Ball home page is at http://www.uniball-na.com/
I think these pens or comparable pens are now carried in most office supply stores.

Anti-Telemarketing Script

Great Telemarketing Reply
Write down the script and place it beside your phone
Audio version --- http://www.metacafe.com/watch/272025/very_funny_telemarketer_call/

From the University of Pennsylvania
How to deal with unwelcome mail and telephone solitications --- http://www.ling.upenn.edu/~kurisuto/consumer_warfare.html

JUNKBUSTERS Anti-Telemarketing Script
http://www.junkbusters.com/script.html

Telemarketers always use a script: why shouldn't you?

TEN MOST EFFECTIVE RESPONSES TO TELEPHONE SOLICITORS:

10. You sound very sexy! What kind of underwear do you have on?

09. Oh, I'm so glad you called! My niece is selling Girl Scout cookies. How many boxes would you like?

08. Who's your long_distance carrier? I think I can save you money!

07. You sound gay. Did you know that through the love of Our Savior, Jesus Christ, you can give up that lifestyle?

06. Do you hear voices, like I do, telling you to buy lots of guns?

05. Are you a non_smoker, 55 or under? Let me tell you about whole life.

04. You seem pretty smart, so maybe you know: How long do you think it would take to get a whole body down a garbage disposal?

03. If Superman and the Power Rangers got into a fight, who do you think would win?

02. Do you take credit cards? I have one here that I don't think has been reported.

And my number one best response to that pesky caller is...

01. What do you think of my sex change?

---

Forwarded by Paula

What do you say to a telemarketer?

The phone rang as I was sitting down to my evening meal, and as I answered it I was greeted with, "Is this Karl Brummer?" Not sounding anything like my name. I asked, "Who is calling?"

The telemarketer said he was with The Rubber Band Powered Freezer Company or something like that. Then I asked him if he knew Karl Brummer personally and asked why he was calling this number.

I then said (off to the side), "get some pictures of the body at various angles and the blood smears", I then turned back to the phone and advised the caller that he had just called a murder scene and must stay on the line because we had already traced his call and he would be receiving a summons to testify in this murder case.

I questioned the caller at great length as to his name, address, phone number at home, at work, who he worked for, how he knew the dead guy and could he prove where he had been about one hour before he made this call.

The telemarketer was getting very concerned and his answers were given in a shaky voice. I then told him we had located his position and the police were entering the building to take him into custody. At that point I heard the phone fall and the scurrying of his running away.

My wife asked me as I returned to our table why I had tears streaming down my face, and so help me, I couldn't tell her for about 15 minutes. My meal was cold but it was the best meal in a long, long time.

 

More serious responses are shown below

 

  What to say when they call if you don't want junk calls

Every time you get a call you consider junk, just ask the questions in this script. If they answer no, you may be able to sue them. Be sure to put your phone number on the National Do-Not-Call registry by visiting http://donotcall.gov or by calling 1-888-382-1222.
 

1. ``Are you calling to sell something?'' (or ``is this a telemarketing call?'')
2. ``Could you tell me your full name please?'' $
3. ``And a phone number, area code first?'' $
4. ``What's the name of the organization you're calling for?'' $
5. ``Does that organization keep a list of numbers it's been asked not to call?'' $
6. ``I would like my number(s) put on that list. Can you take care of that now?'' $
7. ``And does the company you work for also make telemarketing calls for any other organizations?'' (If they answer no, skip the next question.)
8. (If yes) ``Can you make sure your company won't call me for any other organization?'' $
    

You may need to ask to speak with a supervisor if they sound lost. When you're ready to let them off, you might close with ``Is it clear that I never want telemarketing calls from anyone?'' and just say goodbye. If you feel like making them pay, keep going:
 

1. ``Will your company keep my number on its do-not-call list for at least ten years?'' $
2. ``And does your company have a written policy that says that on paper?'' $
3. ``Can you send me a copy of it?'' $
4. ``What's your supervisor's first and last name?''
5. ``What's your employer's business name, address and main telephone number?''
6. ``Are you calling for a tax-exempt nonprofit organization?''
7. ``Is this call based on a previously established business relationship?''

Before hanging up, check you have all their answers written down, then say goodbye. Add the date and time to your record. (Is it between 8 a.m. and 9 p.m.? $)

How many telemarketing firms cheat the public and even the charities with distorted accounting ploys

"Misreporting Fundraising: How Do Nonprofit Organizations Account for Telemarketing Campaigns? Elizabeth K. Keating Boston College Linda M. Parsons The University of Alabama Andrea Alston Roberts Boston College, The Accounting Review, Volume 83, No. 2, March 2008, pp. 417-446 ---
http://www.atypon-link.com/AAA/doi/pdf/10.2308/accr.2008.83.2.417

The purpose of this study is to examine the frequency, determinants, and implications of misreported fundraising activities. We compare state telemarketing campaign reports with the associated information from nonprofits’ annual Form 990 filings to directly test nonprofits’ revenue and expense recognition policies. Using a conservative approach that understates the extent to which nonprofit organizations violate the reporting rules, our study indicates that 74 percent of the regulatory filings from nonprofit organizations fail to properly report telemarketing expenses. Smaller nonprofits, less monitored firms, and those with less accounting sophistication are more likely to inappropriately report telemarketing costs as a component of net revenues rather than as expenses. Nonprofits that use external accounting services are more likely to properly classify the cost of their telemarketing campaigns as professional fundraising fees.

. . .

Prior research has supported a concern by regulators and donors that nonprofits have incentives to understate fundraising costs and may inappropriately allocate these costs to other activities. Additionally, a number of studies provide evidence that donors direct their charitable gifts to nonprofits that report higher program ratios and lower fundraising ratios. With more than 76 percent of the more than $240 billion in annual contributions to nonprofits in the U.S. coming from individual donors (American Association of Fundraising Counsel [AAFRC] Trust for Philanthropy 2003), misreporting by nonprofits can potentially have a large effect on the distribution of donations among nonprofit organizations.

Our study provides empirical evidence of how frequently fundraising costs are misreported, and examines the methods used and the factors associated with these decisions. This study directly tests the veracity of nonprofits’ reporting practices by comparing federally mandated nonprofit financial reports to disclosures of revenues and costs of telemarketing campaigns filed by telemarketing solicitors in certain states. Additionally, it is the first paper to specifically consider the effect of accounting sophistication on nonprofit reporting practices.

We design our tests to produce conservative estimates of telemarketing revenue and expense by using only the single largest reported telemarketing campaigns conducted each year for a nonprofit by each of its telemarketing solicitors. These estimates of total annual telemarketing revenues and expenses are then compared to the nonprofit’s annual IRS informational filing. Because our design biases against incorrectly labeling a nonprofit a misreporter, we may not have fully detected net reporting, particularly by organizations with contributions raised without the assistance of professional solicitors. This is particularly a concern for the larger organizations in our sample as they are more likely to generate contributions from multiple sources. Thus, we may have underestimated the degree to which misreporting occurs.

Despite our conservative test design, we find that over 74 percent of the organizations in our sample fail to properly report telemarketing expenses. Twenty-seven percent of firm-years contain misreported revenues. Of the remaining 73 percent, a majority misclassify their reported costs in a category other than professional fundraising fees, and 9 percent engage in cost allocations, meaning that not all telemarketing costs are reported as fundraising expenses. Using an even more conservative design that compared a single year ofcampaign revenue and expenses to the sum of three years of firm-wide contributions and fundraising expenses, 14 percent of this sample is misreporting revenues. Of the remaining sample, 53 percent report telemarketing expenses as other than professional fundraising fees and, at least, another 4 percent is allocating telemarketing costs to an expense category other than fundraising.

Our results provide strong evidence that nonprofits misreport telemarketing fees, which affects how program and fundraising ratios are reported. The effect on reported ratios of misreporting is substantial. We find that by misreporting telemarketing expenses the nonprofits in our sample could understate the fundraising ratio by as much as 15 percent. Of the misreporting we detect, most occurs among small nonprofits that have limited accounting sophistication. Our findings suggest that nonprofits that have greater accounting sophistication and those likely to be subjected to greater external monitoring are less likely to be classified as a misreporting firm. We find that the factors associated with the more prevalent activity of misreporting revenue differ from those related to expense classification and allocation. Higher accounting sophistication and more external monitoring appear to play a greater role in moderating revenue misreporting. Only the use of professional outside accountants appears related to proper classification of telemarketing costs as professional fees. We interpret these results as suggesting that misreporting decisions may be driven either by incentives to improve reported results or a lack of familiarity with accounting. Prior research has implicitly or explicitly attributed misreporting to managerial incentives. Our study is the first to specifically consider accounting sophistication as a factor inmisreporting.

SOP 98-2 requires nonprofit organizations to allocate costs incurred jointly for fundraising and program activities to several expense categories. However, the occurrence of expense allocation should be related to the joint activity, not systematically associated with organizational characteristics. Allocation of telemarketing costs to an expense category other than fundraising is less often associated with larger organizations and those that have relatively higher levels of debt. This finding implies that allocation may occur more often in small organizations in order to improve reported fundraising ratios, or is more prevalent in organizations that have less accounting sophistication or fewer monitoring mechanisms.

These findings can inform the current debates by state and federal regulators as they search for ways to improve the quality of nonprofit financial reports. In particular, we provide evidence to policy makers that, in addition to regulation and monitoring, educating Form 990 preparers can improve accounting quality.

How to Opt Out of Credit Card Offers That You Do Not Solicit

I received the following from a close personal friend who is also the Director of Instructional Services at Loyola College in Maryland.

I elected to opt out using the Consumer Reports Web address given near the bottom of his message. You have to feed in the information to get a form that you then mail in via the postal service. The form is automatically filled in from the information that you typed in earlier. All you have to do is sign and date the form.

I sent in a second form in my wife’s name.

By the way, have you ever had troubles with forms that seem to do things like automatically change your state initials in a list box? The trick to avoid this is to not leave your cursor in that list box when you submit an electronic form. Click on some open-ended box such as your name box or a comment box before submitting the form.

Bob Jensen

From: AECM, Accounting Education using Computers and Multimedia [mailto:AECM@LISTSERV.LOYOLA.EDU] On Behalf Of Barry Rice
Sent: Thursday, July 05, 2007 1:26 PM
To: AECM@LISTSERV.LOYOLA.EDU
Subject: Fed up with shredding credit card offers?
 

[The following was written for my family members, most of whom are not technically sophisticated. Feel free to share this information with YOUR family.]
 

I was just looking at a credit card offer before shredding it and noticed an 888 toll-free number where I could opt out of getting such junk mail. When I searched for more information about this in Consumer Reports, I found a free article that says you can "Remove your name from preapproved offers for credit or insurance by going to www.optoutprescreen.com  or calling 888-5-OPT-OUT. And if you're willing to deny yourself unsolicited catalogs and junk mail, opt out at the Direct Marketing Association site ( www.the-dma.org/cgi/offmailinglist )  ."
 

The complete article is at http://www.consumerreports.org/cro/personal-finance/news/what-if-your-identity-is-stolen-from-you-6-06/overview/0606_stolen-identity_ov.htm?resultPageIndex=1&resultIndex=7&searchTerm=opt-out .

 

The 888-5-OPT-OUT number above is the same one on the bottom of my credit card offer. However, I choose to use the www.optoutprescreen.com  Web site for my own opt out. It requires you to enter your name, address, Social Security number and date of birth. I am convinced it is safe to do so because of the Consumer Reports recommendation and because the above link takes you to https://www.optoutprescreen.com/?rf=t which is secure since it has the "s" after "http." The page also has information about how your information is secure.
 

Barry Rice

AECM Founder

 

_________________________

E. Barry Rice, MBA, CPA
Director, Instructional Services
Emeritus Accounting Professor
Loyola College in Maryland
BRice@Loyola.edu
410-617-2478
www.barryrice.com

Facebook me! www.facebook.com/p/Barry_Rice/20102311

A Verizon Wireless effort change your cell phone Terms of Agreement and give out your privacy information.
You can read more about CPNI at http://www.fcc.gov/eb/CPNI/

Snopes calls this a "sort of" scam that commenced with AT&T/Southwestern Bell billings --- http://www.snopes.com/inboxer/pending/sbc.asp 

You can read the following at http://www.manchicken.com/2007/free-software/verizon-update-dial-1-800-333-9956.html

 

VERIZON UPDATE: Dial 1-800-333-9956

If you are a Verizon Wireless customer, you may know that Verizon does some shady things to make their revenue streams fatter. This morning I got a letter from Verizon Wireless telling me that they will start putting ads on my phone. Lucky for me they are required to have some manner of opt-out functionality in place. When I looked inside the pamphlet, I saw the number for the opt-out. It is 1.800.333.9956. I called that number and got a very nice automated option to opt out.

I encourage all of my fellow Verizon Wireless customers to send a VERY strong message to the folks at One Verizon Way and opt out. Opt out even if you’re not a Verizon Wireless customer. Send letters to the address “One Verizon Way, Basking Ridge, NJ 07920-1097″ and tell them how disgusted you are with this new practice.

It is not okay for Verizon Wireless to put these ads on our personal property, and if we stand silent while they do it we will be in a world of hurt. But act fast, because according to these terms, Verizon Wireless will only give you 30 days to opt out.

UPDATE:
So, I’ve got some more info for you. Verizon Wireless, in their agreement, says that you have the right to cancel your service with them without paying early termination fees for cancelling.

You can read the following at http://www.anonymouscoworker.com/2007/09/21/verizon-wireless-is-selling-your-information/

Turns out all they want to do is sell the “routine” data they collect through my day to day use of my cell phone. If I decided to opt out, they warned that I would be denying myself the benefit of their benevolent oversight of my information and their ability to make the cell-phone-using portion of my life downright super-duper puppies-and-unicorns AWESOME. I’d rather not have Verizon selling my info to every company that would want to buy it, so I opted out by calling this number:

1 800 333 9956

You may want to give it a ring, too, if you have Verizon Wireless and you don’t trust them to keep your personal information in your best interest. Best part? If you don’t call 1 800 333 9956 you’re automatically opted-in, so you may have been boned already. Give the number a call if you’d like to keep your information out of the hands of any douchetastic company that throws a fistful of dollars at Verizon.

Jensen Comment
Breaking your wireless agreement may depend a lot upon the small print in the agreement you got in writing when you purchased your phone. If you cannot get out of your early termination fees, wait your time and change from Verizon Wireless as soon as you get with a more honest company that does not make you waste a lot of time and trouble to keep your private information private.

People who visit www.intelius.com  can enter a person's name to get a cell phone number, or do the reverse by entering a number to get the subscriber's name. Each search costs $15. They can also download a raft of personal information about the subscriber. This was a feature on ABC evening news, August 14, 2007. There are many cell phone numbers, however, that do not make it into the Intelius database, especially numbers of subscribers who never gave their phone numbers out to any organization or dialed up a 911 emergency.

"Free Cell Phone Number Search - How To Find Free Cell Phone Numbers," --- Click Here
The freebies are not really very worthwhile relative to the fee-based services.

Jensen Comment
This will be terribly frustrating if telemarketers and crank callers begin to use up your allotted free minutes of cell phone time each month.

You may enter your cell phone numbers into the "Do Not Call" registry the same as you probably did for your landline phone --- https://www.donotcall.gov/default.aspx
However, telemarketers are not supposed to call cell phones with automatic dialers --- https://www.donotcall.gov/default.aspx
This is no protection, however, from crank callers or telemarketers who take the trouble to dial in your cell phone number. Of course, being in the "Do Not Call" registry does not protect you from telemarketing charitable organizations that are typically the biggest nuisance these days. Also the "Do Not Call Register" provides no guarantee that you will not get calls from commercial telemarketers, especially those who fly by night.

It might just pay to get the cell phone numbers of your state Senators and local Congressional representative and call them late at night at home on their supposedly "personal" cell phones. Better yet, call their children and ask them to tell their parents how you got their phone numbers.

Note that if you've never given a cell phone number out to any organization other than your phone company, Intelius may not have your cell phone number in its dastardly database. You should make your children aware of this. Even emergency calls to 911 may result in Intelius getting your cell phone number according to the fine print in my Verizon Wireless contract.

To my knowledge there's no unlisted phone service for cell phones like the one that you can pay for monthly on your landline number

Nigerian Fraud Email Gallery --- http://www.potifos.com/fraud/

 Who are these perpetrators of Nigerian frauds?
A good cyber-scammer can make up to $7,000 a month - 22 times the average Nigerian wage - from milking gullible Westerners. His controlling boss, with an army of trained scammers under his wing in both America and Europe, will be raking in many times more. Though the fraud is apparent to many, some people think they have stumbled on a once-in-a-lifetime deal, and scammers can string them along for months with mythical difficulties. Some victims eventually contribute huge sums of money to save the deal when it is suddenly "at risk". Samuel is 19, handsome, bright, well-dressed and ambitious. He has a special flair for computers and until he quit the game last year was one of Festac's best-known cyber-scam champions.
Robyn Dixon, "Run-down town where scammers target the West," Scotsman, October 30, 2005 --- http://news.scotsman.com/international.cfm?id=2168172005

New Scam on eBay and Craig's List:  Overpayments
When is a “cleared check” not necessarily a good check?

"eBay, Craig's List Users Targeted in New Scam," by Brian Ross, The Blotter-ABC, October 2, 2007 --- http://www.freerepublic.com/focus/f-news/1906412/posts

Selling something on eBay or Craig's List? Watch out for who's signing the check to buy it.

Tens of thousands of Americans are being targeted by the latest scam sweeping America, many of them targeted online through Craig's List and eBay.

Scammers overpay with counterfeit checks that look so good most banks accept them. It's only after victims have sent the overpayment amount back to the scammers that they learn the checks are no good, and they are out the money.

U.S. Postal Service officials say they have seized more than $2 billion worth of high-quality counterfeit checks coming from Nigeria, England, the Netherlands and Canada.

But, they say, many more phonies are still getting through. . That's the kind of check Jill Parker, a pharmaceutical company manager in Richmond, Va., got in the mail.

Using Craig's List to rent an apartment she owned in Chicago, she was contacted by someone moving from London.

"He was going to send me a check for $25,000," she told ABC News. "I was to deduct what he owned me for the first month's rent and the security deposit, and I was to wire the balance back to his agent, who was handling his furnishing."

She took the check to her bank and called a few days later to see if it had cleared. Told that it had, Jill, as agreed upon, wired the remaining $21,000, thinking she was ahead $4,000.

"Everything looked great; everything went fine until about a week later," she said.

The bank informed her that the check was no good and had been returned not paid. And Jill, not the bank, was out the money.

American banks say they are required by law to make the money available well before a final determination is made as to whether the check is good.

"Certain funds, for example, have to be available on the day after deposit," Nedda Feddis, senior federal counsel for the American Bankers Association, told ABC News. "And the fraudsters are taking advantage of that rule."

Good Morning America Video: Phony Check Scam Hitting America There have been tragic consequences.

Chris Soens, suffering from health problems, thought she got a dose of good news in the mail when she won $90,000 in a supposed European lottery.

Once the check had been deposited and posted to her account, Chris wired back $40,000 for what she was told were fees and taxes.

When the check was discovered to be a phony, the bank told Chris she had to repay the entire amount.

Her sister, Rebecca Woodworth, says it led to suicide.

"I think she was devastated," she said. "I think she was plunged into depths of despair knowing that everything she had was gone."

The problem has grown so large that the U.S. Postal Service is launching a nationwide TV campaign starting tomorrow to warn Americans about the dangers of the bad check scam. The Postal Service has also set up a new Web site to educate the public on check fraud: www.fakechecks.org  .

Bob Jensen's threads on how not to get taken on eBay are at http://www.trinity.edu/rjensen/FraudReporting.htm#eBay

Bob Jensen's threads on Nigerian frauds are at http://www.trinity.edu/rjensen/FraudReporting.htm#NigerianFraud

Work at Home Scams

The general pitch may be built around a sob story, a promise of lottery winnings, a foreign business offer or a work-at-home opportunity. But the bottom-line offer is the same: We'll send you a check, you cash it at your bank, and you keep a portion and send the rest back to us. Americans appear to be increasingly susceptible to such scams, according to U.S. Postal Inspection Service investigators, who yesterday announced a crackdown. They said they intercepted 540,000 checks worth more than $2.1 billion mailed to U.S. residents in the first eight months of the year. They said 77 people had been arrested in connection with the schemes -- 60 in the Netherlands, 16 in Nigeria and one in Canada. Aided by authorities in those countries and in Britain, investigators said, they had traced many of the come-ons to a shifting network of Nigerians who, with a few computers, cellphones and bank routing numbers, have been cashing in on the naivete, goodwill or complicity of Internet users.
Anita Huslin, "Crackdown Takes Aim At Check-Cashing Scams," The Washington Post, October 4, 2007, Page D02 --- Click Here

Scamming the Nigerian Scam Artists

"Baiters Teach Scammers a Lesson," by Robert Andrews, Wired News, August 4, 2006 --- http://www.wired.com/news/technology/internet/0,71387-0.html?tw=wn_index_1

They pilfer nearly $200 million from Americans annually and drive some of their victims to suicide, but Nigeria's notorious e-mail scam artists may finally have met their match -- and the results can be hilarious.

British online vigilante "Shiver Metimbers" is leading tens of thousands of "scambaiters" in a crusade to shut down advance-fee fraudsters, grifters who spam unwitting victims with elaborate, e-mailed sob stories promising a share of nonexistent fortunes in return for upfront payments.

 

So-called 419 scams, named after the section of Nigeria's criminal code that covers the conduct, are the most common type of con; victims are sometimes left penniless.

But Metimbers and crew turn the tables on scammers one by one, boomeranging the tricksters' own tactics to entice them into performing outlandish tasks in desperate pursuit of cash -- then trumpeting evidence of the con artists' naïveté for the online world's amusement.

A 43-year-old, self-employed computer engineer from Manchester, England, Metimbers has most recently spun counter-yarns that have compelled 419ers to make elaborate wood carvings, pose for comical photos and fly from London to Scotland. In one episode, which concluded in March after a five-month exchange, he succeeded in having a Nigerian fraudster tattoo "Baited by Shiver" on his body in order to claim a fictional $46,000 prize.

"Another time, the scammer thought he was going to get $18,000 out of me, but I actually got the guy to send me $80," said Metimbers, who started the 419 Eater community site almost three years ago after receiving a wave of spam in his inbox.

"I've got between five and 10 on the go at any one time," Metimbers said. "The worst thing that could possibly happen to these guys is they get their photo slapped on a website. I feel like a cybervigilante, doing my bit for the public."

Metimbers, whose real forename is Mike and who spends up to seven hours a day scambaiting, is team captain in a growing internet blood sport, in which photographic evidence of competing baiters' successes constitute trophies.

419 Eater alone numbers more than 20,000 participants around the world. Other initiatives have also surfaced in the anti-scam resistance movement, including Artists Against 419, which kills criminals' online accounts with a deluge of traffic. Baiters delight in convincing correspondents to be photographed with embarrassing and lewd Western banners -- like Metimbers, they operate using aliases to protect themselves against the death threats issued by disgruntled scammers upon realizing they have been had.

Other humor-heavy vigilantes include Bait A Mugu, theScamBaiter.com, ScamBaits, Scamorama and The Billy Goat Curse.

"Shiver is exceedingly creative in getting scammers to allow their greed to override their judgment," said one disciple nicknamed mrsbean, a 29-year-old female IT worker from Kentucky who claims to have wasted months of organized scammers' time.

"It is equal parts theater, chess game, psychological study, crime prevention, education and vigilante justice; it's a battle of the wits," said mrsbean. "Internet scams are unique in that they offer you an opportunity to personally combat them without compromising your own safety; the same is just not true of most crime -- one wouldn't take on the drug dealers in a local neighborhood, for instance.

"The threat of jail certainly doesn't deter these people, but being humiliated in front of their peers just might cost them some reputation. It's likely the only punishment most scammers get."

Advance-fee fraud boomed in Nigeria as government corruption and an economic downturn during the 1990s fueled poverty and disillusionment in the country, said Insa Nolte of the University of Birmingham's Centre of West African Studies.

To some, internet scams looked like an easy way to bag some quick cash.

"The availability of e-mail helped to transform a local form of fraud into one of Nigeria's most important export industries," Nolte said.

Some law enforcers trying to shut down 419 scammers now look on scambaiters' brand of Schadenfreude with envy. The 419legal.org message board was started by a South African antifraud officer to gather intelligence from worldwide combatants, while London's Metropolitan Police said it began a "coordinated approach" this month to get tips directed from baiter sites to proper channels. But investigators warn the counter-criminals are walking a fine line.

"People do it as a hobby or a part-time occupation," said detective Sgt. Stephen Truick of the Met's Economic and Specialist Crime Operational Command Unit. "But what they often don't realize is that, while they are baiting, these criminals' accounts are left open and other people are still getting scammed.

"We are taking down around 200 sites and up to 2,000 e-mail accounts per month -- we are turning the tide," said Truick. "We've seen our traffic from sites like these increase -- that's been brilliant, but I could never condone some of their actions."

Continued in article

Federal Trade Commission (Then and Now) --- http://www.ftc.gov/index.html

EthicsPoint whistleblowing options for employees, customers, and vendors --- http://www.ethicspoint.com/en/default.asp

Thomas Neches & Company Links to Useful Websites --- http://www.thomasneches.com/links.htm

How to Fight Global Crime and Corruption
Transparency International (News, Tools, etc.) --- http://www.transparency.org/ 

Bob Jensen's updates on fraud are at http://www.trinity.edu/rjensen/FraudUpdates.htm

Center for Systems Security and Information Assurance ---] http://www.cssia.org/
 

Read the Fine Print in Your Life Insurance Policy and Its Amendments
Many life insurers, including Allstate Corp., AXA Equitable Life Insurance Co., Fidelity Investments, Lincoln Financial Group, MetLife Inc., New York Life Insurance Co. and Prudential Financial Inc., use customers' overseas-travel plans as a factor in making underwriting decisions, and some may deny a policy or increase premiums to customers going to countries deemed dangerous. Some companies even deny coverage based on previous travel to a dangerous region. The countries that trigger denials are often on the State Department's travel warning list, which includes popular destinations such as Israel, Indonesia and Kenya.
Rachel Emma Silverman, "Life Insurers Face Backlash Over Policy on Foreign Travel:  New Laws Curb Practice Of Denying Coverage to People Who Visit Certain Countries," The Wall Street Journal, May 4, 2006; Page D1 --- http://online.wsj.com/article/SB114670871469043437.html?mod=todays_us_nonsub_pj

How to find people, places, and databases (for reporting frauds) ---
http://www.melissadata.com/Lookups/

Internet Fraud --- http://www.fraud.org/internet/intset.htm

Consumer Ripoffs --- http://www.ripoffreport.com/

HowToComplain.com --- http://www.howtocomplain.com/

Lemon Law America (Federal and State) --- http://www.lemonlawamerica.com/
(Choose Where You Live)

Complaints.com --- http://www.complaints.com/

Consumer Reports (not free) --- http://www.consumerwebwatch.org/

Consumer World (a great resource site) --- http://www.consumerworld.org/

Consumer Review --- http://www.consumerreview.com/channels/consumerreview/data/main/index.html

FirstGov for Consumers --- http://www.consumer.gov/

Federal Trade Commission --- http://www.ftc.gov/

TOP TEN RETAIL RIPOFFS EXPOSED --- http://www.trampolinesales.com/ripoffs.htm

DMA Consumer Assistance --- http://www.dmaconsumers.org/

Clever Idea:  New ShopSmart from Consumer Reports

"Getting Sales Advice From Your Cellphone:  New Service Offers Ratings By 'Consumer Reports'; Categories Are Limited," by Walter S. Mossberg, The Wall Street Journal,  December 14, 2005; Page D14 --- http://online.wsj.com/article/SB113452481752621918.html?mod=todays_us_personal_journal

At one time or another, all of us have been handed a Christmas or birthday gift list that includes seemingly simple items such as "coffee maker," "luggage," or the most dreaded item of all, "TV." But choosing the right one is no easy task. Once you're actually in the store, surrounded by options, it's easy to buy the worst brand of coffee maker, or the luggage that is infamous for wearing out too soon, or the overly expensive television set.

Wouldn't it be easier if you had some independent help, right there in the store, to make the best choice and resist the often bad information provided by salespeople?

Consumer Reports certainly thinks so. This week, it introduced a cellphone application, ShopSmart, that allows you to carry the magazine's famous product comparisons and ratings with you while shopping, right on your mobile phone. Available for Verizon Wireless and Sprint Nextel customers just in time for the holiday shopping season, this new service costs $3.99 a month. Cingular will start carrying ShopSmart next month.

The idea is that, while you're in a store, dazed by a row of similar-looking products like digital cameras, you can just whip out your cellphone, launch ShopSmart, and see which camera Consumer Reports recommends, or how it rates the particular camera you're holding.

We love and trust Consumer Reports, which runs a very successful and useful paid Web site in addition to its legendary print magazine. But we were dubious. How well would a cellphone handle such an application? Would it be easy for last-minute shoppers to rapidly receive, read and use the data provided by ShopSmart? So, we tested this new application using a Verizon LG VX8100 cellphone -- a newer phone that runs on Verizon's ultrafast EV-DO network, which downloads data at about the speed of a low-end home DSL connection.

(Consumer Reports has a content-sharing relationship with The Wall Street Journal Online.)

Overall, we were impressed by ShopSmart's straightforward and easy-to-use approach. Each screen was simple to read at a glance, and browsing from one screen to the next took just a couple of seconds. We especially liked the program's ability to add certain products to a "Favorites" list, for accessing later, and a feature that lets you email the ShopSmart data to yourself, or anyone else, for later perusal.

There are a couple of downsides. For now, ShopSmart covers only three categories of products -- electronics, appliances, and home and garden. It omits important categories Consumer Reports covers in print and online, including cars, personal finance, food and travel. So it won't help you to buy that luggage, even though the magazine reviewed it. And people who already subscribe to the magazine and/or the Web site don't get it free. Like everyone else, they have to pay the $3.99 monthly fee.

Also, while performance was very good on our test phone running on the fast EV-DO network, the product-information downloads would be much, much slower at the typical network speeds most people use.

The program is updated weekly. It uses Yahoo Shopping to provide up-to-date price ranges for each product, listing prices from online stores as well as retail chains, so you can find where each product is sold for the lowest cost.

After downloading ShopSmart through your phone carrier's built-in online store -- our phone used Verizon's Get It Now -- it can be opened by pressing just a few keys. This might be particularly useful for shoppers who use this program only once in a while, so they don't easily forget how to get started.

To make the best use of the phone's small display, ShopSmart is simply organized into different sections using five tabs labeled Ratings, Search, Favorites, Articles and About. The products themselves are divided into three main categories: Appliances, Electronics, and Home and Garden. Product types are listed alphabetically within each category, 10 per screen. Under the Search tab, we found that the Appliances category included 20 different types, starting with air conditioners and ending with washing machines, including coffee makers and gas ranges along the way.

Continued in article

Help for victims of investment fraud --- http://www.helpforinvestors.org/
Think you're a victim of investment fraud? Want to check out your financial adviser? Need to report identity theft? A new streamlined Web site from the Alliance for Investor Education, www.helpforinvestors.org, provides direct links to the right government agencies, regulators, and trade groups.
Lauren Young, "A Tool for Investors in Distress:  The new Web site from the Alliance for Investor Education offers lots of help, including for those who may have been duped," Business Week, June 15, 2005 --- http://www.businessweek.com/bwdaily/dnflash/jun2005/nf20050615_4371_db035.htm?chan=tc

Kim Zetter. "ID Theft: What You Need to Know," Wired News, June 29, 2005 --- http://www.wired.com/news/privacy/0,1848,68032,00.html?tw=wn_tophead_8

What should I do if my wallet or purse is lost or stolen?

Immediately contact all three credit reporting agencies -- Equifax, Experian and TransUnion -- and have them place a fraud alert on your account. This means that companies issuing new credit accounts in your name will have to call you to obtain permission first. The alert will last for 90 days only. You can extend the alert to seven years, but only if you've been a victim of identity theft and can provide a police report.

Equifax: 1.800.525.6285

Experian: 1.888.397.3742

TransUnion: 1.800.680.7289

In addition to contacting the credit reporting agencies, you should file a police report if your property was stolen. Close any accounts that you think may have been compromised by the loss or theft. The FTC provides more information and a chart to tick off steps you should take.

What can I do to prevent myself from becoming a victim?

There isn't really anything you can do to prevent identity theft. As long as Social Security numbers are used for purposes other than Social Security, you are at risk of having your identity stolen any time someone has access to documents that carry your number and other personal data. There are, however, things you can do to lower your risk of becoming a victim.

• Review monthly financial statements carefully for fraudulent activity.
• Request a free copy of your credit report from a credit-reporting agency once a year to examine it for fraudulent activity. A new law requiring credit reporting agencies to provide a free annual report goes into effect nationwide in September. Until then, it's in effect only in western and Midwestern states. The credit report will show who requested access to your credit record. Look for requests from companies you haven't done business with and tell credit-reporting agencies if you see credit accounts that you didn't open or debts you didn't incur. Check to see that your name and address are correct.
• Don't give your Social Security number to any business that doesn't really need it.
• Cross shred sensitive documents. Thieves have been known to piece together strips of paper that are shredded only once. Cross-shredders double-shred documents.
• Shred pre-approved credit-card offers before tossing them in the garbage.
• Don't store sensitive personal information, such as bank account numbers and passwords, on home computers or handheld devices.
• Install a firewall and anti-virus software on your computer and keep the virus definitions up to date to prevent viruses and Trojan horses from infecting your computer and feeding personal information back to hackers.
• Don't fall for phishing scams. Phishing occurs when someone sends you an e-mail purporting to be from your bank or other company you do business with and requesting you to update your account information.
• Use specially designed software programs to clean data from your computer before you sell or discard it. Simply deleting files will not remove data from the memory.
• Don't carry any documents in your wallet that have your Social Security number on them, including your medical card or military ID, on days when you don't need the card.
• Opt-out when your bank or other financial institution requests permission to share information about you with other businesses.
• Close all credit-card accounts except the one or two that you really need.
• If you are an identity theft victim and live in one of ten states, including California, Colorado, Louisiana, Maine, Texas, Vermont or Washington, consider placing a "freeze" on your credit report so that no one can access it without your permission. More than 20 additional states are considering passing similar legislation. Creditors need to look at your report before granting you credit. By freezing your report, it will prevent unauthorized people from seeing your personal data and it will prevent creditors from opening a new credit account in your name for an impostor. Some states only let victims of identity theft freeze their records. Other states allow anyone to freeze their record. The State Public Interest Research Groups maintains a list of states with freeze laws.

Bob Jensen's helpers on identity theft --- http://www.trinity.edu/rjensen/FraudReporting.htm#IdentityTheft

Bob Jensen's threads on computing and network security --- http://www.trinity.edu/rjensen/ecommerce/000start.htm#SpecialSection

What to know and do when you suspect fraud --- http://www.aicpa.org/pubs/jofa/jun2005/wells.htm

Association of Certified Fraud Examiners --- http://www.acfe.com/home.asp

• In particular note the Code of Business Ethics and Conduct ---  http://www.acfe.com/documents/code_of_business_ethics.pdf
• Fraud Resources Center --- http://www.acfe.com/fraud/fraud.asp
  Fraud Prevention Check-Up --- http://www.acfe.com/fraud/check.asp
  Fraud Prevention CD-ROM --- http://www.acfe.com/fraud/cd.asp
  How to Prevent Small Business Fraud --- http://www.acfe.com/documents/smallbusinessfraudexcerpt.pdf
  Other Downloads --- http://www.acfe.com/fraud/downloads.asp
• Also note the explosion of salaries of Certified Fraud Examiners ---
  http://www.acfe.com/documents/2005comp-guide.pdf
  CFE Career Center http://www.acfe.com/career/career.asp

PricewaterhouseCoopers - Global Economic Crime Survey 2003 --- http://www.acfe.com/documents/2003_PwC_CrimeReport.pdf

FraudNet the Government Accountability Office (GAO) --- http://www.gao.gov/fraudnet/fraudnet.htm 

The Institute of Internal Auditors --- http://www.theiia.org/

Information Systems Audit and Control Association --- http://www.isaca.org/

AICPA's Business Valuation and Forensic & Litigation Services Center (not free to the public) --- http://bvfls.aicpa.org/

Fraud Position Statement of the Institute of Internal Auditors of the UK and Ireland --- http://www.blindtiger.co.uk/IIA/uploads/48dc2e62-f2a7bd939a--7c26/2003FraudPositionStatement.pdf
I snipped this link to http://snipurl.com/IIAFraudStatementUK

The Fraud Detectives Consultant Network --- http://www.frauddetectives.com/ 
This is a helpful site, although I might add that accountants, attorneys, and others can list themselves free at this site with no filtering with regard to skills and experience.

February 18, 2005 message from Joanne Tweed [ibridges@san.rr.com] 

America's seniors are being cheated of their life's savings by securities Broker/Dealers. 
SENIORS AGAINST SECURITIES FRAUD http://seniorsagainstsecuritiesfraud.com  offers supportive educational links and solutions. Please consider linking.

Most Sincerely,
Joanne Tweed

Occupational Fraud Report 

In 2003, occupational fraud is estimated at $660 billion.

 

2004 Report to the Nation on Occupational Fraud and Abuse, The Association of Certified Fraud Examiners --- http://www.cfenet.com/resources/rttn.asp 

 

Occupational fraud and abuse is a widespread problem that affects every entity, regardless of size, location or industry. The ACFE has made it a goal to better educate the public and anti-fraud professionals about this threat. The 2004 Report to the Nation is based on a survey that began in late 2003 and ran through the early months of 2004. Certified Fraud Examiners throughout the US were asked to provide detailed information on one fraud case he or she had personally investigated that met the following criteria: The case involved occupational fraud; The fraud occurred within the last two years; The investigation of the fraud was complete; and The CFE was reasonably sure that the perpetrator had been identified.

The end result is a comprehensive report that sheds light on occupational fraud and abuse while offering stark lessons and valuable insights about its prevention and detection.

Download the 2004 Report to the Nation * (564 kb)
Order a printed copy of the 2004 Report to the Nation
Download the 2002 Report to the Nation * (857 kb)
Download the 1996 Report to the Nation * (235 kb)

The Museum of Hoaxes http://www.museumofhoaxes.com/ 

Academic fraud and plagiarism threads are at http://www.trinity.edu/rjensen/plagiarism.htm 

How Technology Can Reduce Fraud

Resources to prevent and discover fraud from the Association of Fraud Examiners --- http://www.cfenet.com/resources/resources.asp 

Self-study training for a career in fraud examination --- http://marketplace.cfenet.com/products/products.asp

Bob Jensen's Other Documents On Fraud  

Important Links for Reporting Frauds and Important Things to Know in Avoiding Fraud (including ID theft)

FTC helpers if suspect someone else has become you --- http://www.ftc.gov/bcp/conline/pubs/credit/idtsummary.pdf 

FTC helpers in getting your credit report and FICO score --- http://www.ftc.gov/bcp/conline/edcams/credit/index.html 

FTC consumer warnings --- http://www.ftc.gov/ftc/consumer.htm 

U.S. Consumer Product Safety Commission --- http://www.cpsc.gov/

Lemon Law America (Federal and State) --- http://www.lemonlawamerica.com/

TOP TEN RETAIL RIPOFFS EXPOSED --- http://www.trampolinesales.com/ripoffs.htm

Fraudulent (Supposed) Publishers (especially targeting poets) --- http://www.foetry.com/ 

A government Website on Cybercrime --- http://www.usdoj.gov/criminal/cybercrime/
Bob Jensen's threads on computing and networking security are at http://www.trinity.edu/rjensen/ecommerce/000start.htm#SpecialSection

Consumer Reports Web Watch --- http://www.consumerwebwatch.org/for-consumers.cfm

Richard Campbell notes a nice white collar crime blog edited by some law professors --- http://lawprofessors.typepad.com/whitecollarcrime_blog/ 

Question
What should you do if you think you're a possible victim of ID theft?

Answer
There are a number of things to do, especially the following:
Fill out an identity theft report with your local, state or federal law enforcement agency. It's unclear if the mere loss or theft of personal information constitutes identity theft, but filing a report may offer additional protections. The FTC makes an affidavit available at http://www.consumer.gov/idtheft/pdf/affidavit.pdf

"Tips for Preventing or Catching Identity Theft:  Contacting one of three credit reporting agencies is the key to monitoring possible fraud," MIT's Technology Review, May 24, 2006 --- http://www.technologyreview.com/read_article.aspx?id=16923

Consumer advocates have some advice for the 26.5 million veterans whose personal information was stolen from the home of a Veterans Affairs employee: Don't panic.

Identity theft may be a growing problem that affected 9.3 million Americans last year, according to Javelin Strategy and Research. But consumer advocates say a few precautions can lessen the chances of becoming a victim, even for people whose personal information has been stolen.

The first thing to do if you think your Social Security number, birth date or other sensitive data has fallen into the wrong hands is to place an initial fraud alert on your credit reports. There are three major credit reporting agencies, but a call to one -- for instance, Equifax at 800-525-6285 -- will ensure the other two are notified.

A fraud alert entitles you to a free copy of your credit report from each of the three companies. Order one from each and scrutinize them carefully for accounts you didn't open or debts you don't recognize. Also, make sure that information such as your Social Security number and employer are correct on each report.

If you discover accounts or transactions you didn't authorize, call and speak with someone in the fraud department of each company involved. Keep a log of each person contacted, along with the date, time and topics discussed on each call.

An initial fraud alert also requires businesses to take additional steps to confirm your identity before issuing loans or opening accounts in your name. Be prepared for loan and credit card applications to take slightly longer to be processed.

It's important to understand that an initial fraud alert, as the name implies, is only a temporary fix. That's because it remains in effect for only 90 days. To prevent becoming a victim after the three months are up, you'll need to take additional steps.

Next, fill out an identity theft report with your local, state or federal law enforcement agency. It's unclear if the mere loss or theft of personal information constitutes identity theft, but filing a report may offer additional protections. The FTC makes an affidavit available at http://www.consumer.gov/idtheft/pdf/affidavit.pdf 

Ask each of the three credit reporting companies to place a freeze or extended alert on your account. Seventeen states have enacted laws that require the reporting companies to block access to your files in most instances. Check with the Consumers Union Web site or attorney general in your state to see if this is available where you live.

Even if your state doesn't offer this protection, ask Equifax, TransUnion and Experian to give you an extended alert anyway. This option will entitle you to two free credit reports per year, and it will also require the credit reporting companies to remove you from lists marketers use to send prescreened credit offers for five years.

To qualify for an extended alert, the reporting companies will require you to prove you've been the victim of identity theft, even though it is not always clear how the law defines a victim in this case. Be sure to include the FTC affidavit or other law enforcement report you filed. It is legal documentation that your personal identification has been stolen.

Finally, recognize that safeguarding your privacy is a never-ending task, even for people who have no reason to believe their personal information has been stolen. A little education and prevention, say consumer advocates, can go a long way.

''You need an ongoing vigilance,'' says Paul Stephens, a policy analyst with the Privacy Rights Clearinghouse in San Diego. ''We want people to be proactive, to be vigilant, but we also don't want to have people panicking.''

On the Net:

http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm 

http://privacyrights.org 

http://www.consumersunion.org/creditmatters/creditmatterslearnmore/002583.html

Also see Identity (ID) Theft Prevention and Reporting

One link is to a listing of where you can file Internet complaints ---
http://www.consumerwebwatch.org/consumer-center.cfm

Organizations and government agencies featured in this section are listed alphabetically.

Better Business Bureau Online
The Better Business Bureau Online, the electronic arm of the Better Business Bureau, offers consumers the opportunity to file a complaint against e-commerce sites as well as offline businesses. The Better Business Bureau was founded in 1912 and seeks to create a more fair marketplace through consumer education and voluntary self-regulation on the part of companies.
http://www.bbbonline.org/consumer/complaint.asp

Consumer Sentinel
Consumer Sentinel is a complaint database designed to provide law enforcement agencies with information on Internet cons, telemarketing scams and other consumer fraud-related complaints. The database, which is maintained by the Federal Trade Commission, is available to 40 federal law enforcement organizations, more than 200 state and local fraud-fighting agencies, and every state attorney general in the United States. You may register a complaint here.
http://www.consumer.gov/sentinel/index.html

econsumer.gov
This international site, launched by a coalition of 13 nations, registers cross-border e-commerce complaints and offers tips for safe shopping online. It utilizes the Consumer Sentinel's network of Internet fraud complaint data and shares it in several languages with consumer protection law enforcers in countries that belong to the International Marketing Supervision Network.
http://www.econsumer.gov

Internet Fraud Complaint Center
The Internet Fraud Complaint Center enables consumers to log online fraud complaints. The center is the result of a partnership between the FBI and the National White Collar Crime Center (NW3C), a nationwide support network for enforcement agencies involved in the prevention, investigation, and prosecution of economic and high-tech crime. NW3C is funded through a grant from the Bureau of Justice Assistance, Office of Justice Programs, and the U.S. Department of Justice.
http://www1.ifccfbi.gov/index.asp

National Fraud Information Center
The National Fraud Information Center (NFIC) was established in 1992 by the National Consumers League and continues to be funded by the organization. NFIC offers an online form for consumers who are interested in registering an Internet fraud complaint.
http://www.fraud.org/

State Attorneys General
Contact your state attorney general if you feel you have been a victim of consumer fraud on the Web. Consult individual state sites for telephone or electronic contact information for filing complaints. U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission offers tips on avoiding Internet fraud when investing, and a mechanism to register Internet fraud or spam complaints for investigation.
http://www.naag.org/ag/full_ag_table.php

U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission offers tips on avoiding Internet fraud when investing, and a mechanism to register Internet fraud or spam complaints for investigation.
http://www.sec.gov/complaint.shtml

Corporate Fraud Reporting

• Bob Jensen's Links http://www.trinity.edu/rjensen/FraudReporting.htm 
  
• FBI Corporate Fraud Hotline (Toll Free) 888-622-0177
  FBI  http://www.fbi.gov/
  
• Commodity Futures Trading Commission   http://www.sec.gov/answers/cftc.htm
  
• Defense Criminal Investigative Service  http://www.dodig.osd.mil/INV/DCIS/
  
• Department of Labor  http://www.dol.gov/
  
• Federal Energy Regulatory Commission  http://www.ferc.gov/
  
• Internal Revenue Service  http://www.irs.gov/
  
• National Association of Securities Dealers  http://www.nasd.com/
  
• Postal Inspection Service  http://www.usps.com/postalinspectors/
  
• Securities and Exchange Commission  http://www.sec.gov/

Dirty Tricks Played on Job Seekers
Job hunters using Monster.com, the employment Web site owned by Monster Worldwide, received fake job offers by e-mail that asks for their Bank of America account information. The e-mail contains personal information collected when hackers tricked Monster.com customers into downloading a virus in a fake job-seeking tool, according to researchers at Symantec, the world's biggest maker of security software.
Rochelle Garner, "Monster.com Users Get Fake Offers And Request," The Washington Post, August 23, 2007, Page D04 --- Click Here

Question
What's the use of spoof@paypal.com ?

November 13, 2006 message from Schatzel, John [JSchatzel@STONEHILL.EDU]

Yeah, these "phishing" scams have netted crocks over $2.8 billion this past year according to an article I read recently. I thought the number sounded high, but they are bombarding people with genuine looking requests from PayPal and Amazon.com saying that your account has been restricted, charged for something you didn't buy, or is being investigated for account tampering by their security staff. A lot of people panic apparently when they see this stuff and reply with personal account information. I feel sorry for them so every time I get one for PayPal I reply by sending it to spoof@paypal.com  and they supposedly investigate them. If anyone has a similar email address for Amazon, please let us know. Just using Amazon's customer service form is not enough. The whole message has to be forwarded to them, so they can investigate the source of the illegal message.

John Schatzel

November 14, 2006

Snopes has a pretty good page for identifying phishing spoofs. Enter "phishing" into the search box at http://www.snopes.com/

Also see what you get when you enter "Nigerian" into the search box.

Bob Jensen

Association of Certified Fraud Examiners --- http://www.acfe.com/home.asp
In particular note the Code of Business Ethics and Conduct ---  http://www.acfe.com/documents/code_of_business_ethics.pdf
Fraud Resources Center --- http://www.acfe.com/fraud/fraud.asp
Fraud Prevention Check-Up --- http://www.acfe.com/fraud/check.asp
Fraud Prevention CD-ROM --- http://www.acfe.com/fraud/cd.asp
How to Prevent Small Business Fraud --- http://www.acfe.com/documents/smallbusinessfraudexcerpt.pdf
Other Downloads --- http://www.acfe.com/fraud/downloads.asp
Also note the explosion of salaries of Certified Fraud Examiners ---
http://www.acfe.com/documents/2005comp-guide.pdf

PricewaterhouseCoopers - Global Economic Crime Survey 2003 --- http://www.acfe.com/documents/2003_PwC_CrimeReport.pdf

FraudNetrom the Government Accountability Office (GAO) --- http://www.gao.gov/fraudnet/fraudnet.htm 

The Institute of Internal Auditors --- http://www.theiia.org/

AICPA's Business Valuation and Forensic & Litigation Services Center (not free to the public) --- http://bvfls.aicpa.org/

Fraud Position Statement of the Institute of Internal Auditors of the UK and Ireland --- http://www.blindtiger.co.uk/IIA/uploads/48dc2e62-f2a7bd939a--7c26/2003FraudPositionStatement.pdf
I snipped this link to http://snipurl.com/IIAFraudStatementUK

The Fraud Detectives Consultant Network --- http://www.frauddetectives.com/ 
This is a helpful site, although I might add that accountants, attorneys, and others can list themselves free at this site with no filtering with regard to skills and experience.

Warning to retirees: Beware of your families
Financial swindles are one of the fastest-growing forms of elder abuse. By some estimates, as many as five million senior citizens are victimized each year, says Sara Aravanis, director of the nonprofit National Center on Elder Abuse, which provides information to federal and state policy makers. Because of the problem's spread, "many states have laws authorizing financial institutions to report suspicions of elderly abuse," says Bruce Jay Baker, general counsel for the Illinois Bankers Association. Earlier this summer, the Securities and Exchange Commission hosted a Seniors Summit to highlight the issue, with SEC Chairman Christopher Cox noting that protecting seniors' pocketbooks "is one of the most important issues of our time."
Jeff D. Opdyke, "Intimate Betrayal: When the Elderly Are Robbed by Their Family Members," The Wall Street Journal, August 30, 2006; Page D1 --- http://online.wsj.com/article/SB115689331870748918.html?mod=todays_us_personal_journal

February 18, 2005 message from Joanne Tweed [ibridges@san.rr.com] 

America's seniors are being cheated of their life's savings by securities Broker/Dealers. 
SENIORS AGAINST SECURITIES FRAUD http://seniorsagainstsecuritiesfraud.com  offers supportive educational links and solutions. Please consider linking.

Most Sincerely,
Joanne Tweed

Association of Certified Fraud Examiners --- http://www.acfe.com/home.asp
In particular note the Code of Business Ethics and Conduct ---  http://www.acfe.com/documents/code_of_business_ethics.pdf
Fraud Resources Center --- http://www.acfe.com/fraud/fraud.asp
Fraud Prevention Check-Up --- http://www.acfe.com/fraud/check.asp
Fraud Prevention CD-ROM --- http://www.acfe.com/fraud/cd.asp
How to Prevent Small Business Fraud --- http://www.acfe.com/documents/smallbusinessfraudexcerpt.pdf
Other Downloads --- http://www.acfe.com/fraud/downloads.asp
Also note the explosion of salaries of Certified Fraud Examiners ---
http://www.acfe.com/documents/2005comp-guide.pdf

PricewaterhouseCoopers - Global Economic Crime Survey 2003 --- http://www.acfe.com/documents/2003_PwC_CrimeReport.pdf

The Institute of Internal Auditors --- http://www.theiia.org/

AICPA's Business Valuation and Forensic & Litigation Services Center (not free to the public) --- http://bvfls.aicpa.org/

Fraud Position Statement of the Institute of Internal Auditors of the UK and Ireland --- http://www.blindtiger.co.uk/IIA/uploads/48dc2e62-f2a7bd939a--7c26/2003FraudPositionStatement.pdf
I snipped this link to http://snipurl.com/IIAFraudStatementUK

From the Government Accountability Office (GAO) --- http://www.gao.gov/fraudnet/fraudnet.htm 

FraudNET

The purpose of the Government Accountability Office's FraudNET is to facilitate the reporting of allegations of fraud, waste, abuse, or mismanagement of federal funds.

If you want to report such allegations, you may do so by filling out a FraudNET Form or by using one of these other methods:

• Send allegations via e-mail to fraudnet@gao.gov
  
• Send a fax to FraudNet at 202-512-3086
• Write to:

  GAO FraudNET
  441 G Street NW
  Washington, D.C. 20548

A FraudNET Form requires a web browser that supports forms, HTML 3.0 tables and 128 bit encryption.

In all cases, please provide as much detail as possible concerning the who, when, where, what, how and how much. You do not need to provide your name. The information you submit will be entered over a secure connection. All information submitted is safeguarded against unauthorized disclosure.

 

Free Corporate Fraud Hotline Initiated February 2003: 888-622-0117 

• 2,000 calls logged within eight months.  

• Callers can be anonymous 

• Several new cases opened based on caller information 

• Several existing cases were enhanced 

• Public cooperation is essential

The Fraud Detectives Consultant Network --- http://www.frauddetectives.com/ 

Welcome to the Forensic Group LLC, host of the FraudDETECTIVES Consultant Network, the premier Web source for locating leading Forensic CPAs, Certified Fraud Examiners, Certified Turnaround Professionals, Crisis Managers, Litigation Specialists, and Bankruptcy Professionals.

Fraud Tips
Free Fraud Advice from the experts.

Fraud Tales
Forensic accounting true Tales:
"Back to Basics"
"The Case of the Shrinking Margins".

What Is Fraud?
Do you realize how much fraud costs organizations annually? Read What Every CEO Should Know about fraud.

KnowFRAUD?
Take A Short Quiz just for fun to test your knowledge of fraud.

Comment from Bob Jensen
This is a helpful site, although I might add that accountants, attorneys, and others can list themselves free at this site with no filtering with regard to skills and experience.

Title Washing: How Car Titles Get Laundered
Unsuspectingly you may be purchasing a car that was flooded during a hurricane
Thousands of vehicles that sat in the murky waters left by hurricanes Katrina and Rita are starting to show up on the used-car market. Most states require that flooded cars be labeled as such on the title. But scam artists have found loopholes in the system. They re-register cars in states with looser title laws -- sometimes two or three states -- until the warning that the car was flooded is gone. This fraudulent practice is known as "title washing."
Jeff Brady, "Holes in Monitoring System Let Lemons Get Resold," NPR, January 31, 2006 --- http://www.npr.org/templates/story/story.php?storyId=5173717

Bob Jensen's fraud updates are at http://www.trinity.edu/rjensen/FraudUpdates.htm

"Identity Theft, Net Scams Rose in '04-FTC ," Reuters, The Washington Post, February 1, 2005 --- http://www.washingtonpost.com/wp-dyn/articles/A54010-2005Feb1.html?nav=headlines 

Americans lost at least $548 million to identity theft and consumer fraud last year as the Internet provided new victims for age-old scams, according to government statistics released Tuesday.

The U.S. Federal Trade Commission said it received 635,000 consumer complaints in 2004 as criminals sold nonexistent products through online auction sites like eBay Inc. or went shopping with stolen credit cards

Identity theft -- the practice of running up bills or committing crimes in someone else's name -- topped the list with 247,000 complaints, up 15 percent from the previous year.

Fraud and identity theft cost consumers at least $437 million in 2003.

Internet-related fraud accounted for more than half of the remaining complaints as scammers found victims through Web sites or unsolicited e-mail, the FTC said.

Auction fraud was the most common Internet scam, the FTC said in its annual fraud report, followed by complaints about online shopping and Internet access service.

The number of incidents was up across nearly every category from 2003, but it was unclear whether that represented an actual increase in fraud or simply a greater awareness of the FTC's Consumer Sentinel fraud program.

Consumers likely lost significantly more than the amount reported, as fewer than half were able to pin a dollar figure on their losses.

The median monetary loss reported was $259, though 41 consumers reported losses of $1 million or more.

The FTC did not specify how many identity-theft incidents took place online. A recent report by the Better Business Bureau found that most cases of identity theft occurred through the theft of a checkbook or other offline methods.

Question
What should you do if you think you're a possible victim of ID theft?

Answer
There are a number of things to do, especially the following:
Fill out an identity theft report with your local, state or federal law enforcement agency. It's unclear if the mere loss or theft of personal information constitutes identity theft, but filing a report may offer additional protections. The FTC makes an affidavit available at http://www.consumer.gov/idtheft/pdf/affidavit.pdf

"Tips for Preventing or Catching Identity Theft:  Contacting one of three credit reporting agencies is the key to monitoring possible fraud," MIT's Technology Review, May 24, 2006 --- http://www.technologyreview.com/read_article.aspx?id=16923

Consumer advocates have some advice for the 26.5 million veterans whose personal information was stolen from the home of a Veterans Affairs employee: Don't panic.

Identity theft may be a growing problem that affected 9.3 million Americans last year, according to Javelin Strategy and Research. But consumer advocates say a few precautions can lessen the chances of becoming a victim, even for people whose personal information has been stolen.

The first thing to do if you think your Social Security number, birth date or other sensitive data has fallen into the wrong hands is to place an initial fraud alert on your credit reports. There are three major credit reporting agencies, but a call to one -- for instance, Equifax at 800-525-6285 -- will ensure the other two are notified.

A fraud alert entitles you to a free copy of your credit report from each of the three companies. Order one from each and scrutinize them carefully for accounts you didn't open or debts you don't recognize. Also, make sure that information such as your Social Security number and employer are correct on each report.

If you discover accounts or transactions you didn't authorize, call and speak with someone in the fraud department of each company involved. Keep a log of each person contacted, along with the date, time and topics discussed on each call.

An initial fraud alert also requires businesses to take additional steps to confirm your identity before issuing loans or opening accounts in your name. Be prepared for loan and credit card applications to take slightly longer to be processed.

It's important to understand that an initial fraud alert, as the name implies, is only a temporary fix. That's because it remains in effect for only 90 days. To prevent becoming a victim after the three months are up, you'll need to take additional steps.

Next, fill out an identity theft report with your local, state or federal law enforcement agency. It's unclear if the mere loss or theft of personal information constitutes identity theft, but filing a report may offer additional protections. The FTC makes an affidavit available at http://www.consumer.gov/idtheft/pdf/affidavit.pdf 

Ask each of the three credit reporting companies to place a freeze or extended alert on your account. Seventeen states have enacted laws that require the reporting companies to block access to your files in most instances. Check with the Consumers Union Web site or attorney general in your state to see if this is available where you live.

Even if your state doesn't offer this protection, ask Equifax, TransUnion and Experian to give you an extended alert anyway. This option will entitle you to two free credit reports per year, and it will also require the credit reporting companies to remove you from lists marketers use to send prescreened credit offers for five years.

To qualify for an extended alert, the reporting companies will require you to prove you've been the victim of identity theft, even though it is not always clear how the law defines a victim in this case. Be sure to include the FTC affidavit or other law enforcement report you filed. It is legal documentation that your personal identification has been stolen.

Finally, recognize that safeguarding your privacy is a never-ending task, even for people who have no reason to believe their personal information has been stolen. A little education and prevention, say consumer advocates, can go a long way.

''You need an ongoing vigilance,'' says Paul Stephens, a policy analyst with the Privacy Rights Clearinghouse in San Diego. ''We want people to be proactive, to be vigilant, but we also don't want to have people panicking.''

On the Net:

http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm 

http://privacyrights.org 

http://www.consumersunion.org/creditmatters/creditmatterslearnmore/002583.html

I am really glad to see the Digital Duo return to PBS television.  Back in the 1990s I loved this show as a helper to those of us struggling to learn new computing and networking technologies.  The most important attribute of this show is the willingness of the Duo to criticize the products or services that they are evaluating.  The Duo is consumer-oriented.  Unlike its counterpart Computer Chronicles, the Digital Duo are probably not especially popular among vendors who supply the products and services.

The main site for the Digital Duo http://www.pcworld.com/digitalduo/index/0,00.asp
The Digital Duo is the independent, irreverent video review of all things digital. Hosted by Stephen Manes and Angela Gunn. More about PC World's Digital Duo 
The weekly shows are probably listed in your television guide for your local PBS channel.  I suggest you record each show and then save the recordings that you think will be helpful to your students or your family in the future.

One of the features that I watched this weekend featured free access to credit reports.  The Duo pointed out how the majority of the sites that now offer free credit reports should be avoided.  They recommended using https://www.annualcreditreport.com/cra/index.jsp
I think this is good advice, but I have some other recommendations below.

From "Smart Stops on the Web," Journal of Accountancy, January 2004, Page 31 --- http://www.aicpa.org/pubs/jofa/feb2004/news_web.htm

Online Education for Managers
www.bettermanagement.com
CPAs and business managers can brush up on the basics of fraud as well as learn detection and prevention strategies from articles and case studies at this Web site. Titles include “Business Intelligence in the Financial Services Industry.” Fraud investigators can explore the library section to read related content on money laundering, regulatory compliance and risk management and also “solve business problems” with anti-money-laundering and financial services solutions.

Fraud or Frivolity?
www.stockfraudlawyersnetwork.com
CPAs acting as financial consultants will want to visit this e-stop to find out about broker misconduct and what distinguishes a securities fraud case from a frivolous claim. Users also can locate a securities fraud lawyer in their area and get a free consultation.

Fraud Is…
alextalksbusiness.com
Alex Kwechansky, public speaker and author of the book Never Underestimate Who Can Cheat You, gives users a better understanding of fraud in publicly and privately owned companies and how to spot and, hopefully, thwart it at this Web site. The section Dirty Deeds defines different fraud concepts including embezzlement, insider trading and skimming, while the section Here’s the Point outlines some of fraud’s early warning signs.

Insure Against Fraud
www.insurancefraud.org
CPAs looking to advise clients on insurance fraud will find legislative news, the Fraud Case of the Month and the Fraud Hall of Shame at this Web site, first listed as a Smart Stop in April 2002 in response to fraudulent 9/11 claims. Visitors to the Coalition Against Insurance Fraud’s Web stop also can receive a free sample of Insurance Fraud Weekl