Fraud in the News

Elder fraud nears $3 billion annually

The U.S. Senate Committee on Aging recently presented its annual report on staggering elder financial abuse. Scammers continue to target this vulnerable population, according to a Jan. 16 Forbes article by Ted Knutson, Frauds Threatening Seniors With Jail Unless They Pay Proliferate As Elder Abuse Nears $3 Billion.

According to the article, one prevalent scam is the “Impending Lawsuit Scam.” A fraudster will call a senior to warn them a warrant is out for their arrest unless they pay a fine. Scammers often use local area codes to trick trusting seniors into believing the sheriffs’ departments are calling. This lawsuit scam topped the annual list of calls to the committee’s elder fraud hotline.

Home goods giant accused of securities fraud

Wayfair Inc., an online retailer that sells home goods, and three of its officers were recently charged with securities fraud. According to a Jan. 16 Berkshire Eagle article by Tony Dobrowolski, Wayfair hit with securities fraud class-action suit, the company — and its co-founders Niraj Shah and Steven K. Conine, and CFO Michael D. Fleisher — allegedly falsified company facts by inflating revenue. This fraud allegedly deceived investors and boosted sales of company shares. According to the article, Wayfair executives reaped a profit of more than $87 million from selling company stock.

Despite the pending lawsuit, Wayfair continues to grow. It plans to bring 3,000 jobs to the Boston area and has already begun accepting online applications for its Pittsfield facility, which is expected to open in mid- to late 2019.

Hackers target DNA test for a quick buck

If you’ve received a surprise DNA test in the mail it might be linked to a scam. MyHeritage, an online DNA-testing company, fell victim to scammers at the end of 2018, according to a Jan. 16 USA Today article by Elizabeth Weise, Hackers send thousands of DNA test kits to random strangers. During the holidays, MyHeritage had offered a gift-card promotion in which its customers could earn $10 Amazon gift cards by referring friends. However, according to the article, the scammers used stolen credit cards to purchase the DNA test kits and pocketed the gift cards.

Hackers can rack up thousands of dollars in untraceable gift-card money. And confused DNA-kit recipients might worry about the safety of their genetic records.