Skip to Content

Massively has the latest Warhammer Online news, guides and analysis!
Holidash Blog

Posts with tag Theft

New form of credit card fraud is made for TV!

Filed under: Cards, Ripoffs and Scams, Fraud

discover fake credit cardIt seems not a day goes by that I don't hear of some new method of identity theft or credit card fraud to guard against. And yesterday was no exception.

I spotted an article about a group of Huntington bank customers whose debit card information had been used to buy several air conditioners at Overstock.com. Huntington was quick to deny fault in the matter, deferring the blame to, "some link on the Internet." Thankfully Overstock.com quickly reimbursed the fraudulent transactions and shed some light on how the theft may have occurred.

Alan Johnson, who heads up the fraud department at Overstock, told our local paper that the numbers were likely compromised by "card tumbling," a method of fraud that seems fit for an upcoming episode of Numb3rs. Since I can't call in Charlie Eppes to explain card tumbling, I'll do my best to break it down for you.

Much in the same way that a locksmith focuses on how a lock works in order to pick it, card tumblers focus on the rules and math that govern how credit card numbers are created in order to get to your money. Once they create a credit card number, they test it for validity and if successful it's used on sites that don't verify other information such as the name or security code on the credit card.

Perhaps what is most frightening about this method of theft is that you don't have to use your card online or have the number stolen to lose out. Even though the normal methods of safeguarding your credit and debit card numbers won't protect you from this method of hacking, there is one step you can take to keep your funds safe. To avoid the realization that someone in Nigeria has emptied your entire account, you can have your debit card attached to a secondary account in which you only keep money you are going to spend in the near future.

Is your debit card tied to your primary bank account?

Ohio short-circuts copper wire thieves

Filed under: Ripoffs and Scams

copper coilThe Governor of Ohio, the state I call home, signed a new bill into law recently which is aimed at deterring scrap metal theft. The new law was introduced last year in response to thefts of everything from manhole covers and kegs to power station and telecommunication equipment. In fact, the state had passed similar restrictions last year citing the theft of cable from AT&T which cost the company close to $80,000, but had a lowly value of $30 to the thieves who stole it.

The new legislation in Ohio would place a higher burden on scrap metal dealers to keep more detailed records of who sells certain types ofscrap metal to them, including most items which are used to deliver a utility, including pipes and cables. This new category of merchandise would be subject to the more detailed book- keeping, including a copy of the seller's driver's license and plate number. Additionally, the law requires the buyer to photograph every item in this category imposes a two-day waiting period for payment, and forbids payments in cash. Sellers of scrap goods would also need to prove that they owned the goods they brought to the scrap yard.

I think this is a wonderful idea and one of the few ways that a dent can be made in the theft of scrap metal goods. Unfortunately, I'm sure it won't take long for thieves to steal some melting pots and melt down copper wire into unrecognizable clumps of metal in order to sell them for scrap. Even if this legislation only helps keep the metal siding on one home, the manhole cover on one street or a beer keg at a college party, it is worth it!

Get rich stealing old newspapers and bottles!

Filed under: Reduce, Reuse, Recycle

It's a sign of the times: rustling through the trash for recyclable goods to redeem for a few cents is no longer the vocation of the downtrodden. It's gone mainstream.

The USA Today reports that a truck full of recyclables can be worth as much as $1,000, with newspapers worth $600. It's an organized industry featuring fleets of trucks and cell phones looking to take advantage of rising commodity prices. Much of the paper makes its way over to China where it's less plentiful. Some cities have laws against stealing recyclables because they rely on the revenue to fund the collections.

But here's what I wonder about, from an economic standpoint: if collecting recyclables is so profitable in thickly-settled areas, why bother with a city-sponsored effort at all? Wouldn't it make more sense to let enterprising individuals collect and sell the "merchandise" on their own, rather than putting a bunch of people on the town's payroll, and then using the police to enforce the monopoly? Certain services need to be handled publicly -- police, fire, etc. -- but does recycling really fit the bill? It makes sense when it's a public good in need of subsidy but when old newspapers can be sold for big profits, maybe we should just let the market work.

Manhole covers disappearing, police looking for 4 large turtles!

Filed under: Ripoffs and Scams

manholeWith scrap metal prices going the same direction as the price of gas at the pump it's no wonder that thefts of metal have been trending up as well. Recently a disturbing trend has shown up in cities across the U.S. where manhole covers are being stolen and sold for scrap! This rash of heavy metal thefts has led some cities to begin welding the covers in place, which has unfortunately prevented the Teenage Mutant Ninja Turtles from getting their fill of delicious pizza!

On a more serious note, the theft of manhole covers is not just only an expensive pain for cities to deal with -- replacement costs range from $200 to $500 -- but also a danger for pedestrians. In Philadelphia, where 600 covers went missing last year, two children have already fallen into the uncovered manholes. Thankfully they only suffered minor injuries. The missing covers have also done damage to many cars whose owners are asking the city to cover the damages.

With all of the problems these thefts create, and the fact that it takes quite a bit of work to replace a 200-pound manhole cover, you'd be surprised to learn that the manhole bandits only receive $10 to $15 per cover. Some of the blame for these rash of thefts lays with unscrupulous scrap metal buyers who don't understand that manhole covers emblazoned with "Property of NYC" mean exactly that!

Even if we take into account the diminished ethical capacities of someone who would steal a manhole cover weighing more than most men, the return on investment is horrible! Assuming the thieves drive to the manhole and then again to a scrap metal location, they'll easily use a gallon of gas, leaving a net profit of $6 to $11. Unless the thief is a body builder the final take will need to be split in half which leaves barely enough to order off the value menu at Taco Bell; let alone enough to buy a significant amount of drugs. With meth's prices starting at $20 for a 1/4 of gram, a team would need to steal four manholes to make a buy, and causing between $800 and $2000 in labor and materials for cities, not to mention any children or vehicles damaged due to the theft.

Can't afford stuff? Try stealing!

Filed under: Ripoffs and Scams, Recession

That headline seems to sum up the logic of many cash-strapped consumers struggling with high gas prices. Experts say that shoplifting is up in light of the current economic slowdown, and more employees are stealing on the job too.

According
to the USA Today, "All told, retail theft is estimated to cost about $40.5 billion a year. And the rest of us, already squeezed by higher gas and food prices, end up paying for it: Stores pass on much of their losses to customers in the form of higher prices."

I certainly won't patronize readers with a moralistic sermon on the evils of shoplifting, but I will say that I'm skeptical that most of the rise in shoplifting is a result of desperate Oliver Twist-types looking to put food on the table. The man described at the beginning of the USA Today piece -- who was caught stealing cans of baby formula -- also grabbed a few bags of shrimp which, let me know if I'm wrong, are a pretty expensive source of calories. If he was caught stealing white rice and Tina's Burritos, I might be more sympathetic.

If you really need food and are tempted to shoplift at the grocery store, try showing up before the bakery closes and asking if they can give you some day-old bagels. I know someone who did this for years and saved a lot of money, and retained more dignity than he could have stealing.

High gas prices prompt theft of french fry grease!

Filed under: Saving, Transportation

fryerBiodiesel fuel is becoming the savior of more individuals as gas prices climb ever higher. Many people have already begun to make the fuel out of grease from fast food fryers in their own backyards. CNN reports that with more people brewing biodiesel at home, the thefts of french fry grease are going up just as fast as prices at the pump. These thefts are putting the squeeze on local companies who contract with area restaurants to pick up the "waste" and convert it to fuel.

Just a few years ago the grease was viewed by most restaurants as trash, this changed when people began converting their vehicles to run on a distilled version of the deep fryer grease. As the demand picked up, the cost for regular users to purchase biodiesel has increased causing more users to start siphoning the fatty fuel in the dead of night. The reason many of these individuals get the grease by less than legal means is often to avoid registering with the government and the need to pay taxes for road upkeep which is required as a licensed biodiesel producer.

I think we can all agree that stealing gasoline from the corner station is wrong no matter how much a gallon costs. I can also understand the desire to avoid filling up at $4 a gallon but that doesn't make stealing fryer grease OK. Unless you invent the perpetual motion machine and stuff it into your car you are going to end up paying something to get it running so get used to it and open up your wallet.

Judge Judy tells eBay con artist where to go

Filed under: Ripoffs and Scams, Fraud

Doing some research on eBay scams tonight, I came across one of the best YouTube videos of all time -- Kelli Filkins appeared on Judge Judy to defend plaintiffs' claim that she had defrauded them on eBay by sending them a picture of a cell phone they paid $240 for. She claimed that the ad said it was for a picture only.

What ensued is possibly the greatest smackdown in the history of Judge Judy -- who tells Ms. Filkins that she is an "outrageous person" and tells her that "If you live to 120, you're not gonna be as smart as I am in one figure. You may weigh more, but you're not gonna be smarter than I am in one figure." Burn sauce!

Always nice to see the long arm of the law sticking it to a crook. I love Judge Judy.

Death, taxes, and...jail time?

Filed under: Extracurriculars, Tax, Fraud

A few years ago, a friend that I had lost touch with attempted to rob a convenience store. Unfortunately, my buddy Will was a little flaky, so his plans quickly went awry. He showed up after closing, brandishing a rifle and wearing a ski mask. When he demanded entry to the store, the clerk called the police. Although Will shed his incriminating clothing and weapons while running across a field, he was still captured by police and was later convicted for attempted robbery.

It seems like the annals of crime literature are littered with tales of bone-headed criminals. We've all heard the stories of bank robbers writing notes on the back of check stubs, knocking themselves out with nunchucks, or stealing bags of quarters, only to be caught a few blocks later, out of breath and with pulled muscles.

Last week, however, a robber in Des Moines, Iowa took stupidity to a new level. After robbing a Git-n-Go, he made his first mistake: he left behind his jacket and hat. Apart from providing a helpful level of concealment, the robber's outerwear was probably a necessary protection against the late-February chill. However, catching a cold was to become the least of the robber's worries. In one of his jacket pockets, police found a W-2 form with his name and address on it.

How stupid can you get! I wonder if the robber has any idea how hard it is to get a replacement W-2! Additionally, of course, he gave away his identity to the police and will, presumably, hear from them soon.

This also raises another interesting question: how does one declare income from a robbery? I guess it would go under "Wages, tips, and salary" on line 7, but couldn't it also be treated as gambling income? I hope the robber chooses wisely--the last thing he needs is to have the IRS on his tail.

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. His wife does the taxes.

Shredders in the kitchen and other useful tips

Filed under: Home, Ripoffs and Scams, Fraud

Sure, we're always writing about identity theft, but it's almost National Consumer Protection week (during the week of March 2-8), and so I figured I ought to check in with fraud prevention expert Judd Rousseau, COO of Identity Theft 911, and see if he has any useful information on protecting oneself. And what do you know? He does. Rousseau offers these five tips for avoiding having your identity stolen, and you know, they're pretty interesting:

If you have one shredder, it belongs in your -- kitchen? Yep. A Staples study found that most junk mail ends up in the kitchen trash, not in the office.

Don't pay money to get money. According to Rousseau, the most common scams right now involve asking consumers to wire money for complex, convoluted and even occasionally believable reasons, and for the consumer's trouble, they will, of course, get a much larger amount in return.

Is there anything seriously wrong with retail renting?

Filed under: Ripoffs and Scams, Shopping, Fraud

Retail renting: for the uninitiated, this is the process of purchasing something with the intent of using for a short period of time and then returning it. Examples might include clothing or a big-screen TV for a Super Bowl party.

A piece in the Boston Globe recently looked at the issue -- a form of "return fraud" -- and problems its causing retailers. How can they crack down on people who abuse liberal return policies while still offering high-quality service to bona fide customers?

My thoughts on this are unambiguous: Purchasing something with the full intent of returning it is unethical and fraudulent. I can't imagine any possibly moral/ethical justification for doing it. A poll on Consumerist shows that most people share this view, with 74% saying that retail renting is unethical.

But that still means 12% of people think that this form of theft is ethical -- and another 13% aren't sure. So I have to ask: What people ethical justification is there for buying something with the intent of returning it?

Huge shoplifting ring uncovered

Filed under: Ripoffs and Scams

A multi-million dollar shoplifting ring has been uncovered in Florida, and so far 18 people have been implicated in the theft of $100 million of health and beauty items. The arrest of two shoplifters at a Publix supermarket in June 2007 got the ball rolling. They stole $4,500 of Oil of Olay products that day and were charged with grand theft. They and their cohorts used special bags that helped conceal the stolen goods, and police say they were very good at what they did. The shoplifters were paid up to $3,000 cash for each delivery of stolen goods to the leaders.

The shoplifting ring has been operating for at least 5 years and there are victims in at least 11 counties. The police say everyone reported to two middlemen and two ringleaders who sold the stolen beauty products out of warehouses and flea markets. They also made sales through eBay and through a website they set up to sell the stolen goods.

How do you know that the goods you're buying on eBay and other websites aren't stolen? Quite simply, you don't. I'm sure none of the buyers from these people had any idea that they were selling stolen goods. That's the risk we take when we buy on the internet.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

You have to work for your money!

Filed under: Ripoffs and Scams, Fraud

What would you do if you got a free paycheck? You didn't do any work for a company that deposited money into your bank account like clockwork... for almost five years. Welcome to Anthony Armatys's world. Anthony accepted a job with telecommunications company Avaya Inc. in 2002. But he changed his mind and never went to work for the company. Yet a recordkeeping error meant that he started receiving regular payroll deposits into his bank account until the error was discovered in early 2007.

All told, he received about $469,000 from Avaya and never whispered a word of it to the company. He also withdrew about $1,900 that was in a company retirement account. Now he's being charged with one count of theft by deception.

What ever happened to doing the right thing? Who in their right mind thinks it's okay to steal money from a company for almost five years? I'm sure there are some who can justify this in their minds... reasoning that the only victim is a big corporation. But we all know it's wrong. Heck, I even give back the money when a cashier gives me a dollar too much change. Where have our morals gone?

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

More from WalletPop!

To thrift or not to thrift: Possession is 9/10 of the law.

Filed under: Bargains, Budgets, Extracurriculars, Ripoffs and Scams, Saving, Shopping

police car at nightPssst, Hey buddy, have I got a deal for you.

Every once in a great while you might get an approach similar to that at your friendly neighborhood resale shop. That can be especially true if it's a shop you're not very familiar with. When a thrift store employee or operator brings out something from under the counter which they have "saved for special customers,"... watch out! The chances are good that you'll be looking at an item from a questionable source.

Take for instance that mint condition collection of Buffalo Head nickels, or a complete set of sterling silver flatware in its own velvet lined case. The sales person may tell you that it came from an estate sale they were at that same morning. Take care about your purchase or you could become guilty of receiving stolen property. It's a dead giveaway when the store clerk suggests that you go outside to look at items they have in their car. Yeah, it's not on the shelves and it's not on the books. Ask them if you really look that much like an idiot.