Fraud in the News

Fake payment for fast food

According to the Dec. 1, 2016, Herald Sun article, Teenagers using credit card fraud to steal fast food, by John Masanauskas, fast-food outlets like Hungry Jack's, Krispy Kreme and McDonald's have been hit by teenage fraudsters using stolen prepaid Australian Post Visa credit cards to steal hamburgers, chips, drinks and other items.

According to the article, Australia Post confirmed that an unusual glitch affecting food outlet payment terminals has enabled the purchases to be processed as if they were actually paid for.

According to the article, a Visa spokeswoman said, "This issue was the result of a unique set of technical circumstances on the impacted merchant prepaid cards and payment terminals that are not easily replicated. The merchants and financial institutions involved are working hard to update the configurations on the cards and terminals to ensure this doesn't happen in the future."

Can't buy me love

According to the BBC News article, Dating fraud: The woman 'lovebombed' out of £300,000, on Dec. 1, 2016, a woman, wishing to remain anonymous, said she was swept off her feet when she was contacted by a man she believed to be in Turkey. Unfortunately, it was an online dating scam, and she was swindled out of more than 300,000 pounds. She also lost her home and business, and took out several loans over the course of 14 months.

According to the article, the victim said she had come out of a bad marriage and joined the dating website Match.com. In July 2015, she connected with what seemed to be a very attractive-looking man who was keen to talk to her.

The article states that the fraudster first asked her for money after chatting for six weeks online. The fraudster told her that his young son had been attacked and mugged, and he required urgent medical attention. The woman says she sent the money because she couldn't think of a child in distress.

Lackey lacked a separation of duties

On Nov. 30, 2016, the former president of the Communications Workers of America, Local 3901, in Oxford, Alabama, was indicted for a scheme to embezzle more than $69,000 from the group, according to the Dec. 1, 2016, AL.com article, Former Alabama union president indicted for $69,000 embezzlement, by Kent Faulk.

According to the article, a Birmingham federal grand jury indicted Michael Lackey, 43, of Bremen, Georgia, on charges of bank fraud, embezzlement of labor union funds and failure to maintain labor union records.

The article states that Lackey was elected president of Local 3901 in October 2008 and remained in that position until October 2014. As president, Lackey held sole responsibility and control over the local's finances, including its accounts at Wells Fargo and Regions banks.