FRAUD SCHEMES Fraudsters use a number of deceptive … · 2021. 3. 24. · Business Email...
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$4B $3B $2B $1B $0 500,000 400,000 300,000 200,000 100,000 2015 2016 2017 2018 2019 $10.2 BILLION in total losses from 2015-2019. Criminals are getting so sophisticated. It is getting harder and harder for victims to spot the red flags and tell real from fake. Donna Gregory, Internet Crime Complaint Commission (IC3) Chief TOTAL COMPLAINTS TOTAL LOSSES Business Email Compromise Romance/Confidence Scams Lottery/Sweepstakes/ Inheritance Scam Employment Scam A fraudster intercepts and redirects a transfer of valuables (e.g. wires, gift card purchases) from a financial institution or an organization they serve. A fraudster manipulates emotionally vulnerable victims into transfering funds or sending account information. Criminals use a fake jackpot or purported large fortune from an unknown family member to convince victims to send funds or share personally identifiable information. Such schemes can be large, coordinated criminal endeavors. A fraudster poses as a potential employer, convincing victims to process financial transactions, or forward them money or personally identifiable information. Scammers post fake ads on popular job boards. After receiving applications, the criminal contacts victims for a phony interview. The scammer convinces the victim to unknowingly launder funds, provide personal information, or pay upfront fees. $26B in domestic and international exposed dollar loss from June 2016 to July 2019. There are no quick ways to get rich. If an investment opportunity seems too good to be true, it probably is. Often originate overseas where the fraud is part of an underground economy. Workers defraud victims with scripts from a playbook, sharing the profit with their superior. Saw your profile and just had to say hi. Ways of Saying Hi to a Client... If you respond to one message today, let it be mine. Thank you for your kind reply and am in Afghanistan now for peace keeping mission Sorry i can't call you cause we are not allowed to use mobiles here because the Taliban insurgents. After She’s Already Interested... Business Email Compromise (BEC) schemes can be linked to other types of criminal activity including romance, lottery and employment scams. Sweepstakes Scam Indictment 2020 OVER $48M IN LOSSES reported in 2019. OVER 7700 VICTIMS in 2019. — Special Agent Ben Williamson FBI Sample Employment Scam Correspondence More Resources: Sources: Blog COMBATING EVOLVING BUSINESS EMAIL COMPROMISE SCHEMES Learn about the challenge of BEC schemes and how a financial crime management system using advanced technology can help prevent and mitigate losses. eBook UNDERSTANDING FRAUD SCHEMES & SCAMS This guide will help those combating fraud within financial institutions learn more about scam scenarios, including BEC fraud, romance, employment, loan and lottery scams. 33 11 02 45 82 $ $ $ I want you to head right away to your bank and get the check cashed. Deduct your first-week pay which is $500, and Deduct extra $100 for the Money Gram sending fee and proceed to the nearest Money Gram outlet around you to make payment to my wife travel agent.” You are now scheduled for an interview with the hiring manager of the company. Her name is Mrs. Ann Jernigan; you are required to set up a yahoo mail account(mail.yahoo.com) and a yahoo instant messenger.” The Human resources have just reviewed your resume due to the one you posted on www.allstarjobs.com.” Scammers claim they live locally but work abroad. Experienced scammers recruit teams of workers. Anatomy of a ROMANCE SCHEME Ever since you have entered my life, I’ve been flying on Cloud 9. Love Tales... baby I can’t stand not being with you and and you being so far away Fraudsters use a number of deceptive strategies to defraud financial institutions and their customers. SCHEMES & SCAMS FRAUD In February 2017, Verafin conducted a survey of 741 BSA & Fraud professionals. 40% SAID: more than a third of their deposit fraud losses were from scams. 63% SAID: Scams are most frequently funded with a fraudulent check . SCAM SURVEY Most Common Scam Types 12 % 26 % 32 % LOTTERY ROMANCE WORK FROM HOME Most Common Scam Tactics 36 % 22 % 13 % 6 % EMAIL WITH INSTRUCTIONS WEBSITE POSTING PHONE MALWARE Joint investigation between the USPS, FBI, and federal partners. Three convicted criminals operating from Costa Rica. Impersonated federal judges and specifically targeted seniors. $11M stolen for insurance, taxes and import fees. 1 2 3 4 5 1 6 6 over $475M in LOSSES associated with those complaints in 2019. 1 over 19,000 COMPLAINTS identified as romance/confidence fraud in 2019. 1 1 7 1 8 1 9 10 11 1. IC3, Internet Crime Report, 2019, https://pdf.ic3.gov/2019_IC3Report.pdf 2. FBI, 2019 Internet Crime Report Released, 2020, www.fbi.gov/news/stories/2019-internet-crime-report-released-021120 3. FinCEN, Updated Advisory on Email Compromise Fraud Schemes Targeting Vulnerable Business Processes, 2019, www.fincen.gov/sites/default/files/advisory/2019-07-16/Updated%20BEC%20Advisory%20FINAL%20508.pdf 4. IC3, Internet Crime Report, 2017, https://pdf.ic3.gov/2017_IC3Report.pdf 5. IC3, Business Email Compromise the $26 Billion Scam, 2019, www.ic3.gov/media/2019/190910.aspx 6. Forbes, Anatomy of a Scam: Nigerian Romance Scammer Shares Secrets, 2019, www.forbes.com/sites/ajdellinger/2019/11/25/anatomy-of-a-scam-nigerian-romance-scammer-shares-secrets/#6e0a8e476385 7. Better Business Bureau, Sweepstakes, Lottery and Prize Scams, 2018, www.bbb.org/globalassets/local-bbbs/council-113/media/scam-studies/sweepstakes-lottery-and-prize-scams-study-final.pdf 8. United States Department of Justice, Members of $11 Million International Telemarketing Scheme Sentenced to Prison, 2020, www.justice.gov/opa/pr/members-11-million-international-telemarketing-scheme-sentenced-prison 9. IC3, Cyber Criminals Use Fake Job Listings to Target Applicants’ Personally Identifiable Information, 2020, www.ic3.gov/media/2020/200121.aspx 10. The Balance Careers, Top 10 Job Scam Warning Signs, 2019, www.thebalancecareers.com/top-job-scam-warning-signs-2062181 11. FBI, Lengthy Prison Term for Advance Fee Fraudster, 2015, www.fbi.gov/news/stories/advance-fee-fraudster EXCERPTS FROM A Scammer’s Script 8 1
Transcript of FRAUD SCHEMES Fraudsters use a number of deceptive … · 2021. 3. 24. · Business Email...
$4B
$3B
$2B
$1B
$0
500,000
400,000
300,000
200,000
100,000
2015 2016 2017 2018 2019
$10.2 BILLION in total lossesfrom 2015-2019.
Criminals are getting so sophisticated. It is getting harder and harder for victims to spot the red flags and tell real from fake.
Donna Gregory, Internet Crime Complaint Commission (IC3) Chief
TOTAL COMPLAINTSTOTAL LOSSES
Business Email Compromise
Romance/ConfidenceScams
Lottery/Sweepstakes/Inheritance Scam
Employment Scam
A fraudster intercepts and redirects a transfer of valuables (e.g. wires, gift card purchases) from a financial institution or an organization they serve.
A fraudster manipulates emotionally vulnerable victims into transfering funds or sending account information.
Criminals use a fake jackpot or purported large fortune from an unknown family member to convince victims to send funds or share personally identifiable information. Such schemes can be large, coordinated criminal endeavors.
A fraudster poses as a potential employer, convincing victims to process financial transactions, or forward them money or personally identifiable information.
Scammers post fake ads on popular job boards.After receiving applications, the criminal contacts victims for a phony interview.The scammer convinces the victim to unknowingly launder funds, provide personal information, or pay upfront fees.
$26Bin domestic and
international exposed dollar loss
from June 2016 to July 2019.
There are no quick waysto get rich. If an investment opportunity seems too good to be true, it probably is.
Often originateoverseas where the
fraud is part of an underground economy.
Workers defraud victims with scriptsfrom a playbook, sharing the profit with their superior.
Saw your profile and just had to say hi.
Ways of Saying Hi to a Client...
If you respond to one message today, let it be mine.
Thank you for your kind reply and am in Afghanistan now for peace keeping mission
Sorry i can't call you cause we are not allowed to use mobiles here because the Taliban insurgents.
After She’s Already Interested...
Business Email Compromise (BEC) schemes can be linked to other types of criminal activity including romance, lottery and employment scams.
Sweepstakes ScamIndictment 2020
OVER$48M
IN LOSSESreported in 2019.
OVER7700
VICTIMSin 2019.
— Special Agent Ben Williamson FBI
Sample Employment Scam Correspondence
More Resources:
Sources:
� BlogCOMBATING EVOLVING BUSINESS EMAIL COMPROMISE SCHEMESLearn about the challenge of BEC schemes and how a financial crime management system using advanced technology can help prevent and mitigate losses.
� eBookUNDERSTANDING FRAUD SCHEMES & SCAMSThis guide will help those combating fraud within financial institutions learn more about scam scenarios, including BEC fraud, romance, employment, loan and lottery scams.
33 11 02 45 82
$$$
I want you to head right away to your bank and get the check cashed. Deduct your first-week pay which is $500, and Deduct extra $100 for the Money Gram sending fee and proceed to the nearest Money Gram outlet around you to make payment to my wife travel agent.”
You are now scheduled for an interview with the hiring manager of the company. Her name is Mrs. Ann Jernigan; you are required to set up a yahoo mail account(mail.yahoo.com) and a yahoo instant messenger.”
The Human resources have just reviewed your resume due to the one you posted on www.allstarjobs.com.”
Scammers claim they live locally
but work abroad.
Experiencedscammersrecruit teamsof workers.Anatomy
of a ROMANCE
SCHEME
Ever since you have entered my
life, I’ve been flying on Cloud 9.Love Tales...
baby I can’t stand not being with you
and and you being so far away
Fraudsters use a number of deceptive strategies to defraudfinancial institutions and their customers.
SCHEMES & SCAMS
FRAUD
In February 2017, Verafin conducted a survey of 741 BSA & Fraud professionals.
40% SAID:more than a third of their deposit fraud losses were from scams.
63% SAID:Scams are most frequently funded with a fraudulent check.
SCAMSURVEY
MostCommonScamTypes
12%26%
32%
LOTTERY ROMANCEWORK FROMHOME
MostCommon ScamTactics
36%
22%13%
6%
EMAIL WITHINSTRUCTIONS
WEBSITEPOSTING
PHONEMALWARE
Joint investigation between the USPS, FBI, and federal partners.
Three convicted criminals operating from Costa Rica.
Impersonated federal judges and specifically targeted seniors.
$11M stolen for insurance, taxes and import fees.
1
2
3
4
5
1
6
6
over
$475Min LOSSES
associated withthose complaints
in 2019.1
over
19,000COMPLAINTS
identified as romance/confidence
fraud in 2019.1
1 7
1
8
1 9
10
11
1. IC3, Internet Crime Report, 2019, https://pdf.ic3.gov/2019_IC3Report.pdf
2. FBI, 2019 Internet Crime Report Released, 2020, www.fbi.gov/news/stories/2019-internet-crime-report-released-021120
3. FinCEN, Updated Advisory on Email Compromise Fraud Schemes Targeting Vulnerable Business Processes, 2019,www.fincen.gov/sites/default/files/advisory/2019-07-16/Updated%20BEC%20Advisory%20FINAL%20508.pdf
4. IC3, Internet Crime Report, 2017, https://pdf.ic3.gov/2017_IC3Report.pdf
5. IC3, Business Email Compromise the $26 Billion Scam, 2019, www.ic3.gov/media/2019/190910.aspx
6. Forbes, Anatomy of a Scam: Nigerian Romance Scammer Shares Secrets, 2019, www.forbes.com/sites/ajdellinger/2019/11/25/anatomy-of-a-scam-nigerian-romance-scammer-shares-secrets/#6e0a8e476385
7. Better Business Bureau, Sweepstakes, Lottery and Prize Scams, 2018, www.bbb.org/globalassets/local-bbbs/council-113/media/scam-studies/sweepstakes-lottery-and-prize-scams-study-final.pdf
8. United States Department of Justice, Members of $11 Million International Telemarketing Scheme Sentenced to Prison, 2020, www.justice.gov/opa/pr/members-11-million-international-telemarketing-scheme-sentenced-prison
9. IC3, Cyber Criminals Use Fake Job Listings to Target Applicants’ Personally Identifiable Information, 2020, www.ic3.gov/media/2020/200121.aspx
10. The Balance Careers, Top 10 Job Scam Warning Signs, 2019, www.thebalancecareers.com/top-job-scam-warning-signs-2062181
11. FBI, Lengthy Prison Term for Advance Fee Fraudster, 2015, www.fbi.gov/news/stories/advance-fee-fraudster
EXCERPTS FROM A Scammer’s Script
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