Fraud

7 principles behind being scammed

Tom Barlow Jan 29th 2010 @ 1:30PM EST Filed Under: Fraud, Identity Theft

The Madoff debacle has many of us wondering just how so many sharp people made such a tragic mistake.

A pair of researchers from the University of Cambridge's Computer Loboratory recently released a report that explains just how we fall victim to scams like Madoff's: three-card monte, the ring reward rip-off, the money machine scam, and the shop phone call swindle. The key? Those darned inconvenient human emotions.

In their paper, Frank Stajano and Paul Wilson broke our vulnerabilities into seven principles:

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24's Kiefer Sutherland roped into $869,000 scam by line of bull

Tom Barlow Jan 28th 2010 @ 11:30AM EST Filed Under: Fraud, Celebs & Money

I could see how the typical Hollywood star might be duped in a cattle investment scam, but Kiefer Sutherland? The man probably knows cows better than any other actor, since he's spent many a weekend chasing and roping them from horseback.

Unfortunately, this familiarity might have helped make him the perfect patsy for reputed scam artist Michael Wayne Carr. TMZ reports Carr has been charged with bilking Sutherland out of $869,000 in a cattle investment swindle.

Apparently Carr promised to deliver a windfall by buying Mexican cattle and importing them to the U.S., but all he really delivered was a load of bull. He's now charged with grand theft, embezzlement and other crimes.

Continue reading 24's Kiefer Sutherland roped into $869,000 scam by line of bull

Scam targets Haitians in U.S. trying to help family members

Mitch Lipka Jan 26th 2010 @ 5:30PM EST Filed Under: Fraud, Consumer Ally

Haitians living in the U.S. are being targeted by a scam that convinces them to pay money with the promise of getting their relatives to this country, the Embassy of Haiti and the Greater Washington Haiti Relief Committee announced.

Potential victims are contacted by phone or with fliers passed around in Haitian communities. They are told that if they wire $500, in return they will receive a package of documents and a confirmation number permitting them to go to the devastated island nation and bring five relatives to the U.S.

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How those with less money get preyed upon

Mitch Lipka Jan 25th 2010 @ 2:30PM EST Filed Under: Budgets, Debt, Fraud, Consumer Ally, Credit Cards

It is an unfortunate truth that those who can least afford to lose money are often targeted by businesses (and scams) intent on taking advantage of their weak position.

The folks at Mint.com put together an excellent graphic presentation of how lower income people get caught up in difficult situations and pay dearly called "The Shaft: How Companies Prey on the Poor." The raw deals users get with payday loans, "repair" credit cards and renting to own are detailed by the artist behind WallStats.com.

See it here. Be patient, the image is large and, depending on your browser, you might have to click on it to expand it for viewing.

It's a good primer on the perils of doing business with those who cater to those with lower incomes and the credit-challenged.

Bogus online degrees may be more widespread than you think

Beau Brendler Jan 23rd 2010 @ 5:00PM EST Filed Under: Money College, Career, Fraud, Consumer Ally

So what if that dude in the cubicle next to yours decides to get a masters degree, then grabs the promotion you wanted -- but the degree turns out to be fake? A number of high-profile cases over the years demonstrate that some people in middle and senior corporate, government and non-profit management are not above using a bogus credential to get ahead.

There's Sven Otto Littorin, for instance, a Swedish government official who got caught in 2007 boasting an MBA from "Fairfax University." (The degree has since disappeared from his CV.) Or Laura Callahan, a U.S. government executive who in 2003 stepped down from her job after claiming a doctorate in computer information systems from "Hamilton University." Two things are interesting about these two cases: One, anyone doing a background check could have discovered Fairfax and Hamilton are questionable alma maters. Two, Sven happens to be Sweden's minister for employment. And before the incident cost her career, Callahan was deputy chief information officer for the U.S. Department of Homeland Security.

Degree mills have been around a long time. Obviously they have allure. Who wouldn't want a real credential, for instance, for life experience? How many of us have earned the equivalent of a Ph.D in psychology just dealing with bosses and co-workers for a decade or two?

Continue reading Bogus online degrees may be more widespread than you think

FDA warns consumers to beware of counterfeit alli

Mitch Lipka Jan 19th 2010 @ 10:45AM EST Filed Under: Health, Fraud, Consumer Ally

The U.S. Food and Drug Administration is warning consumers to beware that a counterfeit version of the over-the-counter diet drug alli is being sold on the Internet.

GlaxoSmithKline, which makes alli, told the FDA that its lab tests showed the counterfeit version does not contain orlistat -- the active ingredient in alli. Fake alli contains sibutramine, the main ingredient used in the prescription appetite suppressant Meridia.

In its warning the FDA said part of the danger of the fake alli is how the medication would interact with other drugs the user is taking. Sibutramine also should not be used by people with certain medical conditions and is supposed to be administered under the watch of a physician.

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Desperate moves: Consumers' belongings held hostage by moving companies

Mitch Lipka Jan 16th 2010 @ 9:00AM EST Filed Under: Transportation, Fraud, Consumer Ally, Tax - Deduction

William Pollock was doing all the right things to set up his family's move from Texas to Pennsylvania.

He contacted reputable movers and he had them come out to his house and provide written estimates. But the estimates Pollock received were higher than he wanted to pay so he kept looking. On Craigslist, he saw an ad that pointed him to a professional-looking web site depicting a locally-based mover, Moo-ving.com, who could do it all for less. He went with them.

"It's easy now to look back and say this was a red flag and this was a red flag," Pollock says.

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A cautionary tale of real estate fraud: Buyer beware!

Charles Feldman Jan 15th 2010 @ 8:00AM EST Filed Under: Real Estate, Fraud, Recession, Investing

There was the tip off. Right in front of my face. How , I wondered, did the victims of this massive real estate fraud not recognize larceny as it stared them right in the face?

But there it was in the article I was reading as it came into full view on my laptop: Said the New York Times, "Mr. Puff drew investors by advertising guaranteed annual returns of 15% to 20% from his business of buying, renovating and reselling real estate."

Really! 15% to 20% annual returns!

That should have been the tip off right then and there. But it wasn't for more than 1,200 investors who, in total, handed over more than $123 million dollars to Wayne Puff's Ponzi scheme .... the investors ended up losing $55 million.

Continue reading A cautionary tale of real estate fraud: Buyer beware!

FBI issues fraud alert warning about Haiti donation scams

Mitch Lipka Jan 14th 2010 @ 11:25AM EST Filed Under: Fraud, Consumer Ally, In the News

The FBI issued a warning to those wanting to donate money to help the victims of the earthquake in Haiti to make sure they are giving money to a legitimate charity.

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