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FDA Warns of Faux Swine Flu Products on the Web


Back a few months ago, swine flu scams and misinformation plagued Twitter accounts. While the hysteria surrounding the disease has calmed somewhat, there are still foul folks out there trying to make a quick buck by capitalizing on fear. According to Newsvine, the Food and Drug Administration (FDA) has discovered and warned creators of more than 140 products that falsely claim to combat H1N1, or swine flu, as it's more commonly called.

These items include sprays that supposedly sterilize surfaces and even the air, dietary supplements that say they boost the immune system, and most disturbing, fake Tamiflu -- one of two drugs recommended for treating swine flu, and also requires a prescription. FDA sites say that new fraudulent Web sites crop up every day, while vaccine shipments continue to be delayed and Tamiflu is prescribed only to the sickest patients.

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Web

Fugitive Arrested After Moronic Facebook Friend Request

Remember the story about the New Zealand authorities who located a fugitive couple, thanks to the misguided Facebook status of their relative? While that mistake was out of the criminals' hands, Maxi Sopo made his own bed with the social networking site.

In 2003, Sopo went from selling roses in Seattle nightclubs to committing bank fraud, making him about $200,000 richer. A natural career move, right? According to Huffington Post, he soon fled in a rental car to Mexico where he lived a playboy lifestyle. He'd sun on the beaches of Cancun till dark and throw down in the nightclubs till dawn.

But just living this MTV spring-break life wasn't enough for Sopo. So, he started bragging about it on Facebook, too. The AP quotes one Facebook as reading, "LIFE IS VERY SIMPLE REALLY!!!!BUT SOME OF US HUMANS MAKE A MESS OF IT...REMEMBER AM JUST HERE TO HAVE FUN PARTEEEEEEE."

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Web

FBI Busts Up Worldwide Phishing Ring

FBI Indicts 100 in Identity Theft CaseThe FBI has busted up a major spam and bank fraud ring that spanned from coast to coast, and even had ties to Egypt. Fifty-three suspects in Los Angeles, Las Vegas, and Charlotte, North Carolina have been indicted, with dozens of them already in police custody. An additional 47 Egyptian suspects have been named, and authorities there are working to apprehend them now.

The scam centered around phishing spam e-mails, in which the crooks posed as representatives from a bank and asked the victims to update their personal information by following a link. If targets followed the link, they were taken to a bogus banking site that harvested their personal and banking account information. The 100 criminals, working in concert, immediately withdrew money from their victims' accounts, transferring their spoils to fraudulent accounts.

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Web

Oreo the Kitty Graduates From Online 'High School'


Oreo, a two-year-old tuxedo cat from Macon, Georgia, may be the very first one in her family to receive a high-school diploma. She can't verify that, though, because she doesn't have extensive knowledge of her family history. As she wrote in the 'Life Experience Essay' portion of her accreditation, she was adopted by Kelvin Collins, the president of the Better Business Bureau of Central Georgia. Collins, seeing Oreo's ambitious nature, enlisted his feline's help in exposing 'diploma mills.' These 'schools' often cite life experience as a qualification, or pose as cheap and easy ways to get high school, Associate's, or Master's diplomas.

Collins did admit to MSNBC that he gave Oreo a little bit of help with her coursework at the online-only Jefferson High School. (The cat, though, did sit on Collins's lap throughout the test.) Fortunately, when Collins got an answer wrong, the program gave him a 'hint,' all but marking the correct answer for him. The cat-and-man team 'graduated,' but that doesn't mean Oreo is going to college. Collins chose Jefferson High because it only cost $200; those 'college diplomas' usually run $800 to $1,200.

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Car Tech

Dire Financial Straits Find People Destroying Their Cars


When times are tough, people turn to schemes and scams to solve their money woes. And as drivers are having an increasingly hard time dealing with gas-consuming vehicles that require monthly payments and insurance fees, some have fallen back on a good old-fashioned solution: insurance fraud by setting fire to, intentionally crashing, or ditching their own rides.

The Los Angeles Times reports that, during the first quarter of 2009, suspicious vehicle fires in the U.S. leaped 27-percent from last year, intentionally destroyed or abandoned cars climbed 24-percent, and staged car accidents rose 34-percent. Since consumers shell out a premium every month, they are hoping that insurance companies might not check out every claim. Not true. In fact, since crime rates tend to rise during economic downturns, claims agents tend to be more diligent in their investigations, especially when vehicle arson numbers are experiencing such a dramatic upswing. [From: LATimes.com, via The Consumerist]

Web

Scammers Busted for iTunes and Amazon Music Fraud

A group of English ne'er-do-well scammers, have been arrested by the Metropolitan police (also referred to as Scotland Yard) for international music fraud.

After uploading a few songs they allegedly recorded to iTunes and Amazon, the group commenced to repeatedly create and buy its own songs with 1,500 stolen credit cards. An unnamed police source told the Times Online, "We will not know why they did what they did until we have conducted all the interviews." Over a five-month period, the 10 individuals spent $750,000 and racked up $300,000 in royalties, according to the Guardian.

Sixty officers from the Metropolitan police's e-crime unit arrested the seven men and three women from all over England. The group is being held on suspicion of fraud and money laundering. The case was cracked during a parallel investigation with the FBI, after it was established that the criminal network was uploading music.

According to Detective Chief Inspector Terry Wilson, the e-crime unit will continue its work against criminals and will actively develop international partnerships with business and law-enforcers around the world.

We see examples of cybercrime regularly around here, like when a repairman was arrested after tricking Apple into sending him thousands of iPod shuffles, which he'd sell for a profit. Fraud, whether committed as part of a complex digital heist or simple plan, seems inescapable; there's no shortage of people trying to make a quick buck. [From: Guardian and The Times Online via Slashdot]

Web, Social Networking

Facebook Update Exposes Couple's Bank Fraud Romp



When a New Zealand couple applied to borrow $NZ10,000 (about $6,000) for the gas station they owned, they could not have possibly foreseen the windfall a simple computing error would bring them. And New Zealand's WestPac bank could not have possibly foreseen Facebook's role in the investigation of the $NZ10 million fraud.

According to the Sydney Morning Herald, when New Zealanders Leo Gao and Kara Yang-Hurring recently found more than $6 million deposited into their bank account (due to a WestPac employee's accidental inclusion of a few extra zeroes), the couple wasted no time in fleeing with their bounty. New Zealand authorities have been tracking Gao and Yang-Hurring since, and were undoubtedly glad to encounter a bone-headed move by one of the couple's several hangers on.

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Audio/Video, iPod

iPod Repairman Defrauds Apple, Gets Arrested

iPod Repairman Defrauds Apple, is Arrested

We've talked about the business of iPod repair and how a number of industrious people in NYC opened businesses fixing music players. The trend has spread since and, naturally, one of these repairmen saw fit to use his talents for for more than the joy of helping customers -- he was arrested for tricking Apple into sending him 9,000 Shuffle players.

Nicholas Woodhams, 23, from Kalamazoo, Michigan started a business fixing people's players, but reputedly soon figured out that he could generate bogus serial numbers to get new ones. By typing in a fake serial number on the Apple support Web page, he would trick the company into sending him a replacement for a player that didn't exist. Apple sent him the new model with the expectation that it would receive a faulty one in return (a cross-ship) or, if nothing was received, would charge his credit card. But, Woodhams used fake credit cards so that he got the players for free. He'd then turn around and sell them for $49 apiece, netting a tidy profit.

Woodhams is now charged with fraud and money laundering, and Apple has its own lawsuit pending. We're guessing he won't be able to shuffle out of this one. [From: SFGate]

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Computers

Leaked Medical Records Common on P2P Networks

If there's anything worse than having your personal information leaked online, it's finding your personal information along with your medical records leaked online. Unfortunately, the latter is more common than you might think. Over the course of a two-week study by Dartmouth College, researchers found a wide range of sensitive documents, from a spreadsheet of 232 AIDs patients to a 1,718-page document detailing more than 20,000 people's Social Security numbers, insurance records, and diagnosis information.

So how does this information end up online? Many health care providers aren't aware of the dangers involved with these online networks, or the extent to which data can be compromised. Patient information could be leaked, for example, when shared music files and personal data are stored in the same folder. Similarly, many types of malware, once downloaded, can expose these files to the wider Web. William Miaoulis, manager at Phoenix Health Systems, told SC Magazine US that "any time you open up your network there are some security risks."

This is a serious problem. Not only can this type of information leak lead to identity theft and fraud, but it can also lead to employees getting fired, or potential employees being turned down from jobs because of their medical history. There's really no limit to the potential damage that can be caused. While digitizing medical records has its benefits -- even big-name companies like Google are getting in on the action -- if it's not incredibly secure, we'll stick with stacks of paper and manila folders for now. [From: SC Magazine]

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Computers

As Economy Falters, Phishing and Spam E-Mail Scams Surge

As Economy Falters, Phishing and Spam Scams Surge
These are scary times for those with retirement savings tied to the markets. As things plunge faster and further than they have in years, many are crying recession and worse, while some others are seeing a boom. Many of those in the latter group are scammers, preying on people looking for answers to make a quick buck. Phishing attacks are surging now as people are being a little more emotional in their online banking habits, and a little less careful.

Phishing attacks -- essentially fake e-mails from familiar banks and other institutions masquerading as the real thing -- are on the rise, preying on people's panic about potential bank failures to get them to click through and enter their log-in details. Recent scam e-mails purporting to come from banks such as Chase and Washington Mutual are currently making the rounds.

Modern browsers like Firefox 3.0 and Internet Explorer 8 will warn you when you hit such bogus sites, but you can never be too careful. As always: Be wary of where you click, and if you're unsure that a given site is legit type in the URL to your bank by hand and log in from there. Think twice before reacting to some provocative e-mail subject line that's somehow related to protecting your financial assets, since those are precisely the sorts of phrases that are being used as bait by evildoing phishers. It's all too easy to fall prey to these tricks, so better to be safe than sorry. [From: USA Today]

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12 Most Dangerous E-Mails

Computers

Citibank Employee Wires Someone Else's Money to Himself


With the economy looking shaky (thanks, in part, to bogus computer simulations), and more and more banks being bailed out with federal funds, you might be thinking that the inside of your mattress is the safest place for your cash right now. If not, please allow us to give you a few more reasons to think twice before signing that deposit slip, courtesy of a disconcerting article at Wired about some bad employee behavior at a number of financial institutions.

The cases include the case of Citibank employee Brandon Wyatt, who was recently charged with wiring customer money -- about $380,000 -- to other bank accounts he had access to and then pulling that out as cash out and spending it himself. Meanwhile, two employees of an Indianapolis investment company used private customer information to open 129 separate bogus credit card accounts with a combined $1.4-million credit line. Scary? Yes, but we're still inclined to think our money's safer in a bank than under the bed -- with our luck, we'd leave our retirement savings on the curb after some spring cleaning. [From: Wired Threat Level]

Computers

Internet Fraud Largely Ignored By US Prosecutors, Report Reveals

Internet Fraud Largely Ignored by Prosecutors
According to a recent report by the Center for American Progress (CAP), it's estimated that Internet fraud, whether it be scams or phishing or just plain 'ol spam, cost American consumers a whopping $7.1 billion in 2007. Last year, 20 states tracked complaints from Internet users and, across all the states, 20,000 cases of Internet fraud were reported. Despite these reports, the total number of prosecutions for Internet fraud in 2006 and 2007 combined was a whopping 55, meaning the vast majority of online perps got off without even being investigated.

That's a pretty disappointing success rate, to be sure. Much of the problem stems from the fact that many of these scammers reside in foreign lands, complicating prosecution. But, as we saw recently in the arrest of Albert Gonzalez and his purported international cohorts who stole 41 million credit cards, sometimes international locations aren't enough to dodge the long arm of the law. [Source: Reuters]

Computers, Summer Fun

New Company Sells Fake Sick Notes Online

New Company Sells Fake Sick Notes OnlineSome genius has finally figured out how to take the business of selling pre-written reports to college kids and adapt it for adults. The new site, www.doctorsnotestore.com sells fake medical notes for about $38 that could then be used to excuse yourself from work.

The site says that the fake doctor's notes are sold as a novelty and therefore aren't breaking any laws -- they claim they can't do anything to stop customers from misusing its products. The site offers the notes throughout Europe, the U.S. and Canada. The next market it plans on entering is Australia and New Zealand, which has officials a little tweaked. In Australia, "chucking a sickie," as they call it, is a serious concern and is estimated to cost the Australian economy $10 billion in lost productivity.

That number sounds like a bit of an exaggeration, and regardless, we all know that having your doctor friend write up notes for you is cheaper and far more convenient. [Source: Reuters]

Computers

Internet Crime in 2007 Worst On Record

Internet Crime in 2007 Worst On Record

2007 was a banner year for technology and technology lovers. Unfortunately, though, it was also a banner year for those who prey on those technology lovers. Computer crime was up, way up, and it shows no signs of slowing down. According to the 2007 Internet Crime Report, produced annually by the Internet Crime Complaint Center (or IC3), 206,884 complaints were received in that year. The total reported losses amounted to $240 million, a jump of $40 million over the year previous, or nearly 25% in one year.

The IC3 is run by the FBI and is the central place for making complaints about Internet crime in the U.S. However, as its own report points out, not every Internet crime is reported to the IC3, meaning these numbers probably represent just a small fraction of the real offenses committed last year. The most common crime reported was fraud related to online auctions, but identity theft and and other miscellaneous scams certainly took their toll too.

So, as always, be careful when navigating the cyberseas with credit card in hand, don't give out your personal infos to anyone online. And should you find yourself a victim, make sure you report it!

From the Internet Crime Complaint Center

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Computers

17 New Yorkers Busted for ID Theft and Money Laundering Scam


Late last week, New York-based Western Express International was shut down for identity theft and money laundering. In addition, 17 of the company's employees were indicted in the investigation Following a two-year investigation by the Manhattan DA and the Secret Service, charges were filed on Wednesday against the front company that reportedly brought in over $35 million in illicit funds.

Western Express International operated two Web sites, Dengiforum.com and Paycard2000.com, which it used to help harvest unsuspecting Web surfers' credit card information. In total, the company trafficked 95,000 stolen credit card numbers.

Two corporate officers of the company went to prison last year after pleading guilty to illegal check-cashing and money-laundering activities, which presumably was one of the first big red flags that helped launch this latest investagtion.

The 17 employees indicted this week face up to 25 years behind bars.

From PC World

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