Fraud Headlines
2019 Articles
September
Chinese Youth Are Falling For Age-Old Fraud
Young people are increasingly falling victim to scams involving fraudulent money transfers, according to China’s internet watchdog.. (Inkstone)
Plot Thickens As FBI Probes Alleged MyPayrollHR Fraud
Payroll and direct deposit fraud has gained ground, most recently spotlighted in continued developments tied to MyPayrollHR, which shuttered operations suddenly this past week and where millions of dollars have gone missing. (PYMNT)
FBI: BEC now a $26 Billion Fraud, As HR Payroll Diversion Attacks Linked To Same Scammers
The Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) estimates global ‘exposed dollar losses’ to business email compromise fraud has exceeded $26 billion in the past three years. (CSO)
Hundreds Arrested In Nigeria, U.S. On Online Fraud Charges
Nearly 300 people — the bulk in Nigeria and the U.S. — have been arrested in an internationally coordinated law enforcement operation aimed at disrupting a multibillion-dollar internet scam, the U.S. Justice Department announced Tuesday. (Voice Of America)
FEMA Official Arrested For Fraud Over Hurricane Maria Recovery Effort In Puerto Rico
A former administrator of the Federal Emergency Management Agency was arrested Tuesday for taking bribes from the president of a company that landed $1.8 billion in federal contracts to repair Puerto Rico’s electrical grid after Hurricane Maria devastated
the island in September 2017. (CNBC)
Nissan’s Abrupt CEO Exit Complicates Turnaround Efforts As Corruption Scandal Spreads
The abrupt resignation Monday of Nissan CEO Hiroto Saikawa, after an internal investigation uncovered falsified documents that boosted his compensation, marks a dramatic shift in an ongoing scandal that broke open last November with the arrest of then-Chairman
Carlos Ghosn. (CNBC)
Telemedicine CEO Pleads Guilty To Role In $424M Medicare Fraud Scheme
The CEO of a telemedicine company has pleaded guilty for his role in one of the largest healthcare fraud schemes the feds have ever investigated. (Fierce Healthcare)
Chinese Professor Faces U.S. Fraud Charge Over Claims He Took Technology To Help Huawei
US prosecutors have charged a Chinese professor with fraud for allegedly taking technology from a California company to benefit Huawei, in another shot at the embattled Chinese telecommunications equipment maker. (South China Morning Post)
August
Live Well Financial’s Former CEO Charged With Bank Fraud
The former CEO of Richmond-based Live Well Financial was arrested in Richmond on Thursday on charges of bank fraud. (NBC12)
Disney Whistleblower Told SEC The Company Inflated Revenue For Years
Sandra Kuba, formerly a senior financial analyst in Disney’s DIS, -0.01% revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue
by billions of dollars by exploiting weaknesses in the company’s accounting software. (MarketWatch)
Feds Charge 80 People Over Massive Online Fraud Conspiracy
According to the prosecutors, the defendants pursued a wide range of schemes, including preying on businesses by hacking into their accounts and representing themselves as vendors who were owed money. (NPR)
Fraud Plagues Disaster Relief Efforts
As the scale and frequency of major disasters escalate, millions of dollars in federal, state and insurance payments intended for recovery efforts are being stolen by fraudsters taking advantage of chaos and the pipeline of aid flowing into the stricken
areas. (Claims Journal)
GE Stock Has Worst Day In 11 Years After Madoff Whistleblower Calls It A Bigger Fraud Than Enron
General Electric shares plunged more than 11% Thursday after Harry Markopolos, who is famous for blowing the whistle on Bernie Madoff's Ponzi scheme in 2008, accused GE of orchestrating a massive fraud. (CNN)
Fraud Case Against Bus Maker Shows Risks of Pay Promises In City Contracts
When cities begin development projects or buy expensive equipment, they sometimes award contracts or subsidies contingent on job creation, or they impose wage requirements. (New York Times)
Piles Of Dirty Money Have Europe’s Banks Racing To Keep Up
Lenders are facing a labor crunch as they automate the fight against ill-gotten funds. (Bloomberg)
FBI: Delivery Drivers Involved In Amazon Theft Ring
A police detective last summer noticed that one of the drivers had dozens of pawn shop transactions, and thus began an investigation that uncovered a theft ring that sold millions of dollars' worth of stolen goods on Amazon.com in the past six years,
the FBI said. (ABC)
AI Is Predicting The Future Of Online Fraud Detection
Online fraud detection needs AI to stay at parity with the quickly escalating complexity and sophistication of today’s fraud attempts. (Forbes)
July
Mandate Fraud Losses Up 28%
U.K. businesses have lost almost £100m to mandate fraud over the past year, a hike of 28% on the 2017/18 statistics. (Economia)
German Prosecutors Charge Ex-Audi Boss With Fraud Over 'Dieselgate'
Prosecutors in Munich filed charges of "fraud, indirect discrimination and false advertising." (Deutsche Welle)
How An Undercover FBI Sting Busted An Alleged Multimillion-Dollar Stock Fraud
Two U.S. businessmen made more than $15 million over five years by allegedly scamming “elderly and unsophisticated” pensioners through an elaborate pump-and-dump scheme that stretched from Florida to Switzerland to Colombia, according to the FBI and SEC.
(Quartz)
The FBI Thinks Long Island Iced Tea’s Infamous Pivot To Blockchain Was Sweetened By Insider Trading
According to a search warrant request, the FBI is looking for evidence of insider trading and securities fraud connected to Long Island Iced Tea stock, and has focused on conversations about the company that took place between two men, Oliver Lindsay
and Gannon Giguiere, who were arrested for securities fraud in relation to a separate company. (Quartz)
Trump Must Face Suit Over Alleged Multilevel Marketing Fraud
President Donald Trump, his company and three of his children must face a class-action lawsuit in which people claim they were scammed into spending money on fraudulent, multilevel marketing ventures and a dubious live-seminar program. (Bloomberg)
Kenya’s Finance Minister Arrested For Fraud, Corruption
Kenya’s criminal investigation chief says the country’s finance minister has been arrested on charges of fraud and corruption over the awarding of contracts to construct two dams in western Kenya. (Washington Post)
KeyCorp Shares Fall After The Bank Uncovers $90 Million Fraud By Payrolls Processor
On July 9, KeyBank National Association — a subsidiary of KeyCorp — filed a lawsuit against Interlogic claiming the payments processor “fraudulently initiated wire transfers.” (CNBC)
Nationwide Probe Into School Lunch Fraud Ordered
The Office of the Basic Education Commission has ordered educational service area offices nationwide to review free lunch programmes for kindergarten and primary students at schools under their responsibility after allegations of corruption re-surfaced.
(Bangkok Post)
This Bitcoin Money-Laundering Cartel Was Operating From Inside a Florida Prison
Authorities in Florida have busted an elaborate operation which saw prison inmates use Bitcoin to launder thousands of dollars via their commissary accounts. (Next Web)
New Credit Card Scam Combines Two Of Fraudsters’ Favorite Tricks
A dangerous new scam combines credit card “skimming” with telephone “spoofing” to steal consumers’ credit cards. (Consumer Affairs)
Miami-Dade School Bus Employees Used Kids' Personal Info In Fraud Scheme
A dozen Miami-Dade School District bus employees have been arrested after authorities say they used the personal information of children to file fraudulent insurance reimbursement claims worth hundreds of thousands of dollars. (NBC Miami)
June
DA: Fraud Ring Led By LIer Targeted Small-Business Owners, Denied Loans
A Farmingdale man led a fraud ring that stole more than $2 million from 35 small-business owners and others across Long Island and as far away as California and Florida, Suffolk County prosecutors said Wednesday. (Newsday)
Instant Fraud: Consumers See Funds Disappear In Zelle Account Scam
The digital payment service embedded in banking apps has made it easier for thieves to access funds in personal checking and savings accounts, experts say. (NBC)
Grand Theft Europe: A Cross-Border Investigation
It is the largest ongoing tax fraud in Europe: criminal gangs are stealing €50 billion every year from EU members states, according to the EU commission. (Correctiv)
Insys, The Opioid Drug Maker, To Pay $225 Million To Settle Fraud Charges
The opioid manufacturer Insys Therapeutics agreed to pay $225 million to settle federal criminal and civil charges that it illegally marketed a highly addictive fentanyl painkiller to doctors. (New York Times)
Bank Manager Hid Employee's Fraud To Hide His Own $500,000 Fraud, Police Say
A senior manager at the Commonwealth Bank, who stole almost half a million dollars, failed to report a member of his team for fraudulently transferring an alleged $64,000 to her personal account, lest his own fraud be discovered, police allege. (Sydney
Morning Herald)
May
Potential Flat 35 Loan Fraud — Another Low Blow For Japan's Real Estate Industry
A government-backed loan, designed to help more people afford family homes, has been abused to acquire investment properties in Japan. (Rethink Tokyo)
Fraud Via Rogue Apps Exploded By 300 Percent In Just A Few Months
Digital scammers are stealing victims’ personal information in new ways, preferring rogue mobile applications and account takeover attacks after a generation of using phishing as their primary hacking technique. (Cyberscoop)
SEC Only Collects Half Of Fraud-Related Fines
New data shows that the U.S. Securities and Exchange Commission (SEC) has only collected 55 percent of the $20 billion in fraud-related fines it imposed over the last five fiscal years. (PYMNTS)
CBS Credit Union Manager Pleads Guilty To $40 Million Fraud
Edward Rostohar, 62, was arrested in March after the scheme began to unravel. According to prosecutors, he admitted to stealing money from the bank for the last 20 years. (Variety)
Long Before College Admissions Scandal, Universities Saw Signs Of Fraud On Campus
As the college admissions scandal investigation continues, a key question is what universities knew and whether more could have been done to detect the widespread fraud. (LA Times)
Hong Kong Sees First 'Enigma' Stock Fraud Charge Of Many To Come
Roy Cho Kwai-chee is the alleged mastermind behind a million-dollar scheme to defraud one of the city's financial-advisory firms. (The Street)
Ex-Autonomy CFO Sentenced In U.S. To 5 Years Prison Over Hewlett-Packard Fraud
Sushovan Hussain, 55, was also fined $4 million and ordered to forfeit $6.1 million by U.S. District Judge Charles Breyer in San Francisco. (Reuters)
Amazon Merchants Hit By Extensive Six-Month Fraud
Amazon believes it was the victim of a “serious” online attack by hackers who broke into about 100 seller accounts and funneled cash from loans or sales into their own bank accounts, according to a U.K. legal document. (Fortune)
NASA Says Metals Fraud Caused $700 Million Satellite Failure
A metals manufacturer faked test results and provided faulty materials to NASA, causing more than $700 million in losses and two failed satellite launch missions, according to an investigation by the U.S. space agency. (Boston Globe)
Cryptocurrency Thefts, Fraud Hit $1.2 Billion In First Quarter: Report
Losses from the theft of cryptocurrencies from exchanges and fraud-related activities surged in the first quarter of the year to $1.2 billion, or 70 percent of the level for all of 2018, cybersecurity firm CipherTrace said on Tuesday. (Reuters)
April
Apple Accused In U.S. Lawsuit Of Securities Fraud Over iPhone Sales In China
Apple Inc. has been accused in a new lawsuit over securities fraud, which charged the iPhone maker with alleged concealing of a decline of iPhone demands across the world, particularly in China, resulting in a $74 billion slide of market valuation at
a single day followed by the reveal of the truth. (Financial World)
How Criminals Use Fraud Guides From The Dark Web To Scam Organizations And Individuals
Among the many items up for sale on the Dark Web are fraud guides — instruction manuals designed to teach criminals how to ply their trade. (Tech Republic)
Former Volkswagen CEO Charged With Fraud In Germany
German prosecutors charged former Volkswagen CEO Martin Winterkorn and four others with fraud in the emissions cheating scandal that has helped turn many Europeans against diesel engines and accelerated the push toward electric cars. (ABC)
Feds Charge 24 In Alleged $1.2 Billion Medicare Fraud Scheme
Federal prosecutors on Tuesday said they dismantled one of the largest health care fraud schemes ever investigated by the FBI, charging 24 people in a $1.2 billion alleged scam involving telemedicine and durable medical equipment companies. (NPR)
Facebook's Black Markets Just Keystrokes Away, Researchers Say
Researchers uncovered more than 70 Facebook groups openly selling black-market cyberfraud services, some of which they say had been running for up to eight years. (NBC)
Supreme Court Widens Scope For Fraud Claims
Supports SEC in allowing agency to hold individuals liable even if they did not make a statement deemed fraudulent. (CIO)
North Carolina GOP Chair Indicted On Wire Fraud, Bribery Charges
The chair of the North Carolina Republican Party, Robin Hayes, has been indicted on charges including wire fraud, bribery and aiding and abetting. (NPR)
Fraud Victims Let Down By 'Inconsistent Policing'
Some police forces are actively seeking reasons to drop investigations into fraud, a watchdog's report has warned. (BBC)
Hertz Seeks $70 Million In Clawbacks Tied To Accounting Scandal
Hertz Global Holdings Inc. is demanding that ex-Chief Executive Officer Mark Frissora and other former senior managers return at least $70 million of incentive compensation for their roles in an accounting scandal five years ago. (Bloomberg)
March
Michael Avenatti Arrested On Federal Charges Of Wire Fraud And Extortion
Attorney Michael Avenatti, who came to national prominence as the lawyer for adult film star Stormy Daniels, was arrested on federal charges in two separate cases in California and New York, federal prosecutors announced Monday. (CBS)
Online Financial Fraud Surge To 27% In 2018: Report
According to the latest report published by financial services trade association U.K. Finance, consumers in the United Kingdom lost £393.4m in 2018 to Internet and e-commerce fraud. (CISO Mag)
Indian Billionaire Arrested In London Over Alleged $2B Fraud
U.K. police have arrested India's billionaire diamond dealer Nirav Modi in London over his alleged involvement in a bank fraud that could be worth $2 billion. (CNN)
Credit Card Fraud Is Down, But Account Fraud That Directly Hurts Consumers Remains High
Fraudsters have shifted their focus to account takeover and new account fraud — using accounts in someone else’s name to buy goods, take out loans or even take out a mortgage. (Forbes)
PwC investigation finds $7.4 billion accounting fraud at Steinhoff, company says
South African retailer Steinhoff said an independent report had found it had overstated profits over several years in a $7.4 billion accounting fraud involving a small group of top executives and outsiders. (Reuters)
SEC Charges Lumber Liquidators With Fraud For Hiding Formaldehyde
Lumber Liquidators agreed to pay $33 million in penalties for misleading investors about formaldehyde in its laminate flooring products, the SEC announced Tuesday. (CNN)
U.S. Charges Dozens Of Parents, Coaches In Massive College Admissions Scandal
Federal officials have charged dozens of well-heeled parents, including actresses Felicity Huffman and Lori Loughlin, in what the Justice Department says was a multimillion-dollar scheme to cheat college admissions standards. (NPR)
U.S. Arrests Cryptocurrency Exec Over 'Multibillion-Dollar' Fraud
US law enforcement has arrested Konstantin Ignatov over a fraud charge relating to OneCoin, the cryptocurrency he helped found. (Engadget)
'Stick It To Corporate America': Why We Are So Willing To Steal From Work
Rate of occupational fraud has doubled as employees steal laptops, data and ideas from their companies. (Guardian)
Former Chief Of Staff To Ex-NAB Boss Charged Over Alleged $40m Fraud
Rosemary Rogers, 43, was arrested by Sydney detectives on Tuesday and charged with 56 counts of corruptly receiving a benefit and dishonestly obtaining financial advantage by deception. (Guardian)
Small Businesses In The Crosshairs Of Utility Fraud
As small businesses heighten their awareness of fraud and cybercrime, fraudsters add to their own lists of tactics to steal money. (PYMNTS)
Michael Liberty, Founder Of Once-Hot Startup Mozido, Indicted For Fraud
Federal prosecutors indicted Michael Liberty, accusing the founder of Mozido of criminal fraud in connection with his fundraising activity around the once highly valued financial technology startup. (Forbes)
February
Fake Amazon Reviews Draw Fraud Charges In Groundbreaking FTC Case
The U.S. Federal Trade Commission has successfully brought the first ever case against using fraudulent, paid Amazon reviews to falsely advertise an online product. (The Verge)
Man Jailed For Money-Laundering Offences In $40 Million SkillsFuture Scam
The scam has been described as the largest case of fraud perpetrated against a public institution in Singapore. (Straits Times)
Russia charges top U.S. investor Michael Calvey with fraud
Russian state prosecutors on Thursday formally charged top U.S. investor Michael Calvey, the founder of the Baring Vostok private equity group, with fraud. (Reuters)
Experian: U.S. Suffers The Most Online Fraud
Consumers and businesses in the United States appear to be experiencing substantially more online fraud than their counterparts in other regions of the world. (Dark Reading)
Feds Charge Former Top Apple Lawyer With Fraud, Insider Trading
A former top lawyer at Apple is facing federal charges of insider trading related to private information he allegedly used to trade on Apple’s shares over a five-year period. (San Jose Mercury News)
Japan's Credit Card Fraud Debacle
Fraudsters received 20 percent cash back for fraudulent purchases. (Bank Info Security)
FIS Sued For $50 Million For Alleged Fraud, Conspiracy
Jacksonville-based Fidelity National Information Systems Inc. has been accused of defrauding a client and a California regulator as well as orchestrating a conspiracy to conceal its behavior. (Jacksonville Business Journal)
U.S. Sues Lockheed Martin Over Alleged Kickback Scheme At Nuclear Cleanup site
Federal attorneys accused Lockheed of paying more than $1 million to executives from Mission Support Alliance, a joint venture that it partially owned, in exchange for “improper favorable treatment.” (Washington Post)
EU Anti-Fraud Group Heads For Estonia, Denmark To Learn Danske Bank Lessons
In the wake of Danske Bank’s money laundering scandal, an EU committee will visit Estonia and Denmark this week to meet regulators, prosecutors and the bank’s new management to discuss ways to crack down harder on fraud. (Reuters)
Wirecard Loses $8.3 Billion In Three Days On Fraud Allegations
Wirecard AG fell the most in more than a decade on Friday after a report that a law firm found evidence of alleged forgery, the latest fraud allegations to beset the digital payments company. (Bloomberg)
January
Wirecard Loses $8.3 Billion In Three Days On Fraud Allegations
Wirecard AG fell the most in more than a decade on Friday after a report that a law firm found evidence of alleged forgery, the latest fraud allegations to beset the digital payments company. (Bloomberg)
Ex-Patisserie Valerie Auditor Says 'Not His Role To Uncover Fraud'
The former auditor of the collapsed cake chain Patisserie Valerie has argued that it is not the role of accountants to uncover fraud. (Guardian)
U.S. Charges Chinese Telecom Giant Huawei With Fraud, Stealing Trade Secrets
The Department of Justice (DOJ) unveiled criminal charges on Monday against Huawei Technologies Co. and its chief financial officer Meng Wanzhou, accusing China's largest telecommunications company of stealing trade secrets, committing wire fraud, breaking
confidentiality agreements and violating sanctions against Iran. (CBS)
Walgreens Pays $269.2 Million To Settle U.S. Civil Fraud Lawsuits
Walgreens Boots Alliance Inc will pay $269.2 million to settle two whistleblower lawsuits accusing it of civil fraud for overbilling federal healthcare programs over a decade. (Reuters)
Soccer Star Cristiano Ronaldo Fined Over $20 Million For Tax Fraud
Specifically, prosecutors said, he dodged taxes in Spain between 2010 and 2014, when he was playing for Real Madrid. (CNBC)
Chinese Drone Giant DJI Unearths $150 Million Losses From Fraud
SZ DJI Technology Co., which discovered the corruption in an internal probe, said it’s fired multiple workers who inflated parts costs for personal gain, and contacted law enforcement. (Bloomberg)
Shutdown Blocks Help For Identity Theft Victims, As FTC Goes Dark
"It was like I can’t stop it and my government is not there to help," said a California woman whose information was stolen. (NBC)
Secret Service: Theft Rings Turn to Fuze Cards
Street thieves who specialize in cashing out stolen credit and debit cards increasingly are hedging their chances of getting caught carrying multiple counterfeit cards by relying on Fuze Cards, a smartcard technology that allows users to store dozens
of cards on a single device, the U.S. Secret Service warns. (Krebs on Security)
Mozambique Charges Ex-Minister, 17 Others In $2bn Loan Fraud Case
At least 18 people, including a former finance minister, have been charged for fraud involving $2bn in loans to state-owned companies in Mozambique, the Attorney General's Office has said, in a scandal that has ensnared two major international banks.
(Al Jazeera)
Former Barclays Top Brass Face Fraud Trial Over Qatari Funding
Former Barclays CEO John Varley and three other former executives face criminal charges in connection with a 2008 rescue package that allowed the bank to avoid a state bailout. (Al Jazeera)
DOJ Recovers $2.5B In Healthcare Fraud, False Claims In 2018
2018 was a bad year to be a healthcare fraudster. (HealthPayer Intelligence)
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