fraud

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Romance scams cost more money than any other type of consumer fraud, says the Federal Trade Commission

The Federal Trade Commission has released data that shows romance scams cost more money than other types of consumer fraud reported to the agency last year—and the problem is getting worse. Romance scammers target people through dating sites and apps or social media, often using fake profiles and sob stories to convince victims to send them large amounts of money.

The number of romance scams reported to the FTC increased from 8,500 in 2015 to 21,000 last year. Reported losses from these scams grew more than four times, from $33 million in 2015 to $143 million last year. The figures for 2018 are based on 21,368 reports submitted to FTC’s Consumer Sentinel, a database of consumer complaints.

Romance scams were particularly costly for individual victims. The median loss reported by romance scam victims was $2,600, or seven times higher than the median loss across other types of fraud. People between the ages of 40 to 69 reported losing money to romance scams at twice the rate of people in their 20s, but the elderly lost larger amounts, with victims aged 70 and over reporting the biggest median losses at $10,000.

The FTC says the majority of victims were asked to wire money, while the second largest group were asked to use gift or reload cards like Moneypak, which are all methods that are quick, usually difficult to reverse, and allow recipients to remain anonymous. Romance scammers often claim they need money for medical and other emergencies, and come up with excuses about why they can’t meet with their targets in person, for example claiming to be in the military and stationed abroad or not having enough funds to travel.

To prevent being victimized, the FTC suggests doing a reverse image search of profile photos to check if a profile is fake, not sending money to people you haven’t met in person, and being open with family and friends about online relationships.

WSJ reports that Theranos will finally dissolve

Theranos is reportedly finally closing down for good, nearly three years after a Wall Street Journal investigation called its blood testing technology into question. The WSJ said the company, whose dramatic downfall spawned a best-selling book that’s set to be filmed with Jennifer Lawrence starring as Theranos founder and CEO Elizabeth Holmes, sent shareholders an email saying it will formally dissolve and seek to pay unsecured creditors its remaining cash in the coming months.

Holmes resigned as CEO in June after she and Theranos’ former president, Ramesh “Sunny” Balwani, were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud in June.

Both Holmes and Balwani had already been charged with fraud by the Securities and Exchange Commission (the criminal charges are separate from the civil ones filed by the SEC). In its complaint, the SEC said the two engaged in “an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business and financial performance,” which ultimately enabled them to raise more than $700 million from investors.

Holmes and the SEC settled the charges by having Holmes agree to pay a $500,000 penalty and be barred from serving as an officer or director of a public company for 10 years. She was also required to return the remaining 18.9 million shares she obtained while engaging in fraud and relinquish voting control of Theranos.

TechCrunch has sent an email to Theranos’ public relations address asking for comment.

24 hours later, ANOTHER massive Wells Fargo fraud scandal

It’s been a whole day since we learned about another example of systematic, widespread fraud by America’s largest bank Wells Fargo (ripping off small merchants with credit card fees), so it’s definitely time to learn about another one: scamming mortgage borrowers out of $43/month for an unrequested and pointless “home warranty service” from American Home Shield, a billion-dollar scam-factory that considers you a customer if you throw away its junk-mail instead of ticking the “no” box and sending it back.
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Phones will start matching your fingerprint on both device and SIM card

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Your fingerprint will soon be required on your phone for a whole lot more than unlocking it.

Thailand plans to start making it compulsory for new prepaid or postpaid SIM card buyers to register their fingerprints.

Users’ prints will go into a national database, allowing the identity of each phone user to be traced, according to the Bangkok Post.

In addition to SIM cards, mobile operators will also launch apps to verify fingerprints, allowing them to match the fingerprint of the device user to the one that bought the SIM card. Read more…

More about Fraud, Mobile Banking, Fingerprint, Sim Card, and Phone

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DoJ indicts six VW executives in total for Dieselgate fraud

It’s not just regulatory compliance exec Oliver Schmidt — arrested last week — who faces personal criminal repercussions for his role in the Dieselgate scandal: five more VW execs have been indicted and face criminal charges, including the former head of VW R&D, the head of engine development, an engine development supervisor, and another regulatory compliance liason.
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Chrysler's Dieselgate: 100,000 Chrysler trucks said to have emissions “defeat devices”

The EPA and the California Air Resources Board (CARB) say that since 2014, Chrysler shipped 104,000 trucks with “defeat devices” designed to cheat emissions tests — like VW’s cheating, this software was designed to produce low NOx ratings when the trucks were undergoing emissions tests, but to ramp up NOx emissions during normal road use, trading emissions for fuel-efficiency.
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