Articles about Fraud

Value pack of two tins of Spam

Florida Man jailed for 4 years after raking in a million bucks from spam

A marketer who used stolen email accounts to trouser more than a million dollars by spamming people has been sent down for four years. Timothy Livingston, 31, was handed the 48-month term after he pleaded guilty to counts of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud …
Shaun Nichols, 18 Feb 2017
US Flag and money

US account holders more likely to switch banks following fraud

Account holders in the US are more likely to switch banks in the aftermath of fraud, according to a new study. Researchers at Carnegie Mellon University found that people who had their information compromised were more likely to terminate their relationship with the bank within six months of a fraudulent event, even if they …
John Leyden, 17 Feb 2017
Walmart 'Cat's Away IPA'

FAKE BREWS: America rocked by 'craft beer' scandal allegations

US big-box chain Walmart is being sued by an Ohio bloke who claims the retailer's line of "craft beers" is an egregious lie. Matthew Adam, of Hamilton County, is championing a class-action lawsuit alleging Walmart's line of "Trouble Brewing" beers is an act of fraud and false advertising. According to Adam's complaint [PDF], …
Shaun Nichols, 17 Feb 2017
Facebook Lite app

US visitors must hand over Twitter, Facebook handles by law – newbie Rep starts ball rolling

A newbie congressman has floated his first ever US law bill – one that demands visitors to America hand over URLs to their social network accounts. House Rep Jim Banks (R-IN) says his proposed rules – dubbed the Visa Investigation and Social Media Act (VISA) of 2017 – require visa applicants to provide their social media …
Shaun Nichols, 17 Feb 2017
bsides

Ex-FBI man spills on why hackers are winning the security game

BSidesSF Comfortable illusions about how security is working are crippling the ability of government and industry to fight the threat, a former member of the FBI’s netsec team has told the BSides San Francisco 2017 security conference. Society is operating under the illusion that governments and corporations are taking rational choices …
Iain Thomson, 12 Feb 2017
Prison

Crims in £160m broadband scam facing 44 years of porridge

Four men, who conned Barclays Bank and Belgian banking group KBC out of £160m in a super fast broadband scam, have today been sentenced to a collective 44 years in the clink. The individuals presented bogus broadband contracts to the banks, which were tricked into issuing huge loans to H20 Networks through Total Asset Finance …
Kat Hall, 10 Feb 2017
Peter Sage, motivational speaker, giving a TEDx talk

Alleged HPE fraud man Peter Sage once ran dodgy pharma biz

Peter Sage, the jailed motivational speaker accused by Hewlett Packard Enterprise of perpetrating a $17.5m fraud against them, once ran a company which claimed “‘traditional' pharmaceuticals simply intoxicate your body”. Sage was imprisoned in January for 18 months after the High Court in London, UK, ruled he had committed …
Gareth Corfield, 10 Feb 2017
ISIS fighters

ISIS videos, adtech, and the 'smartest guys in the room' (Google)

Special Report Google's ad blacklists, intended to stop big brand advertisements running over YouTube terror videos, aren’t working. In 2014, Newsnight reported that the taxpayer was paying for ads to run alongside beheadings. Three years on, The Times notes that after promising advertisers their ads wouldn't run against certain content, …
Andrew Orlowski, 10 Feb 2017
tsa_gloves_648

Revealed: 'Suicide bomber Barbie' and other TSA quack science that cost $1.5 billion

From 2007 through 2015, the US Transportation Security Administration (TSA) spent $1.5 billion trying to identify potentially dangerous travelers by observing their behavior through an ongoing program called SPOT. SPOT stands for "screening of passengers by observation techniques." And according to the TSA's own documents, …
Thomas Claburn, 08 Feb 2017
i_am_the_law

Guilty! Four blokes conned banks in £160m fibre broadband scam

Four men in the UK have been found guilty of swindling Barclays Bank and Belgian banking group KBC out of £160m in a super-fast broadband scam. Total Asset Finance Ltd (TAF), which went into administration in 2011, had been working with H2O Networks to roll out fibre optic cables across Blighty. H2O supplied fibre-optic …
Kat Hall, 08 Feb 2017

Who's behind the Kodi TV streaming stick crackdown?

Pay TV and other copyright industries are pinning their hopes that new prosecutions of “Kodi USB stick” sellers will thwart what they call an “epidemic” of streaming piracy. Last year, a wave of arrests were made in Teesside and Birmingham in England, with Middlesbrough shopkeeper Brian Thompson of Cut Price Tomo’s TV likely …
Andrew Orlowski, 08 Feb 2017
theft

Web banking malware slurps $1.2m for crooks, now kingpin 'fesses up

An online banking malware scam netted criminals $1.2m in stolen funds – and now one of the ringleaders is now facing hard time in the big house. In August 2015, a Long Island online banking customer had $44,000 moved out of their account after a software nasty infected their PC and stole the account's login credentials. The …
Iain Thomson, 06 Feb 2017
Drinks on a bar

Went out boozing in SF during Dreamforce or Oracle OpenWorld? Malware may have slurped your bank card

A posh US hotel chain says a trio of its popular San Francisco night spots were infected with bank-card-stealing malware from August to December of 2016. So if you were in town for a conference during that time, and had your card swiped through an infected sales terminal, be on the look out for dodgy transactions. …
Shaun Nichols, 06 Feb 2017
Peter Sage, motivational speaker

Sage Business School founder imprisoned – but you wouldn't know it

Contractors working for jailed motivational speaker Peter Sage, who is accused by Hewlett Packard Enterprise of masterminding a $17.5m fraud against them, had to read The Register to figure out what had happened to their boss. In a conference live-streamed to a Facebook group last Thursday – the video of which was deleted over …
Gareth Corfield, 06 Feb 2017

Fears Windows code-signing changes will screw up QA process

Changes introduced this week that mean code-signing certificates for Windows can only be sold in hardware form or run through a cloud-based "service" are continuing to be a concern for some developers. Industry trade body the Certificate Authority Security Council (CASC) decided in December that "best practice" for code- …
John Leyden, 03 Feb 2017
Prison

Motivational speaker in the slammer after HPE applies for court order

A "serial entrepreneur" Brit who compared himself to Nelson Mandela and whose solar power company is alleged to have defrauded Hewlett Packard Enterprise out of $17.5m in discounts has been jailed for 18 months by London's High Court following an application by HPE. During a court-ordered dawn raid on his home in Leicester, …
Gareth Corfield, 02 Feb 2017
Hippie peace, image via Shutterstock

It's holistic, dude: How to dodge the EU's £17m data regulation sting

Sysadmin blog Holistic IT is hard. There are those among us who want to purchase hardware, software, services or so-called turnkey "solutions" – as vendors call them – bearing logos and stickers and otherwise don't require any architect-level thinking. None of us wants to dive deep into compliance regimes to understand what we need to do. …
Trevor Pott, 02 Feb 2017

Ohio bloke accused of torching own home after his pacemaker rats him out to cops

A man has been indicted on arson and insurance fraud charges after police got hold of readings from his pacemaker that called his alibi into question. Last September, firefighters in Middletown, Ohio, were called to a blaze gutting Ross Compton's house. The 59-year-old chap told police the fire broke out indoors, and that he …
Iain Thomson, 01 Feb 2017
spies_648

Dark web hubs paying workers to leak corporate secrets

Staff are taking to the dark web to leak corporate secrets for cash, research reveals. Hackers from US-based risk management outfit RedOwl and Israeli threat intelligence firm IntSights worked their way past the interview process to access the private dark net property Kick Ass Marketplace, where they found evidence of staff …
Darren Pauli, 01 Feb 2017
A Ransom Note

We see you, ransomware flingers, testing out your baddest stuff on... Germany?

A security firm has floated the theory that malware authors are using German firms as a testing ground for their wares prior to wider distribution. Four in five (81 per cent) of ransomware detected in corporate environments occurred in North America. Germany is the second-most impacted country by ransomware, leading …
John Leyden, 31 Jan 2017

ENTA founder Tsai gets banhammer as company director for 13 years

Thirteen is certainly unlucky for Jason Tsai, one-time owner of distie Changtel Solutions UK – formerly ENTA Technologies (ETL) – as that's the number of years he's been barred from being a company director. The “disqualification” was due to Tsai’s participation in a VAT carousel – also commonly known as missing trader intra- …
Paul Kunert, 27 Jan 2017
A Ransom Note

More mobe malware creeps into Google Play – this time, ransomware

Researchers say a piece of ransomware disguised as a battery app made its way into the Play store. Check Point says one of its customers contracted the malware app, dubbed "Charger," after installing what they thought was a battery monitoring tool called EnergyRescue. Researchers with Check Point Mobile Threat Prevention say …
Shaun Nichols, 26 Jan 2017

It's that time of the year again: Texas school district blabs staff tax documents to phishers

A school district in Texas says it lost sensitive tax information from every worker after a single employee was duped by a phishing attack. Dallas-Fort Worth news station NBC5 reports that the Argyle school district is warning its workers that their W-2 tax forms were lost in a phishing attack. (Workers in America have just …
Shaun Nichols, 25 Jan 2017

UK courts experiencing surge in cyber-crime case load

The total cost of fraudulent activity in the UK surpassed a billion pounds for the first time in five years, reaching £1.137bn in 2016 compared to £732m the year before. Fraud against businesses was up sevenfold last year, with inside jobs committed by employees and management the most common method, as measured by alleged …
John Leyden, 24 Jan 2017

HummingBad malware returns in new, more annoying variant

The HummingBad malware first discovered in February 2016 is making a return visit to the charts. The original was cleaned up, but not before the malware's authors Yingmob racked up around US$300,000 per month at its peak. Check Point Software Technologies says it's spotted the return version, which it's dubbed HummingWhale, …
Money laundering

Western Union coughs up $586m for turning a blind eye to fraudsters

Western Union will forfeit more than half a billion dollars after admitting it broke money laundering laws. The admission comes after America's trade watchdog, the FTC, looked into why so many fraudsters use the company's services to launder ill-gotten gains. Under the terms of the settlement, Western Union pled guilty to …
Iain Thomson, 23 Jan 2017
Africa Studio http://www.shutterstock.com/gallery-137002p1.html

Unbreakable Locky ransomware is on the march again

Cisco is warning of possible return of a massive ransomware spam campaign after researchers noticed traces of traffic from the hitherto dormant Necurs botnet. The attacks are tiny: Cisco's security team has so far found fewer than a thousand Necurs spam messages. Those numbers pale in comparison to attacks when Necurs' …
Darren Pauli, 20 Jan 2017

Shocking crime surge – THE TRUTH: England, Wales stats now include hacking and fraud

Crime stats for England and Wales have shown a huge year-on-year increase. Don't panic, though: it's due to the inclusion of fraud and computer misuse offences for the first time. In a report published this week, the UK Office for National Statistics (ONS) reckoned there were 6.2 million reported incidents of crime in the 12 …
John Leyden, 20 Jan 2017
Bitcoin, photo via Shutterstock

SporeStack: Disposable, anonymous servers, via Bitcoin and Python

Hardware infrastructure, once the foundation of computing giants like IBM, has become an abstract commodity thanks to cloud computing, virtualization, and containerization. Through large service providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, or smaller ones like DigitalOcean, Linode, and Vultr …
Thomas Claburn, 19 Jan 2017
Password

Credential-stuffers enjoy up to 2% attack success rate – report

Hackers achieve a success rate of 0.1 to 2 per cent when reusing stolen credentials to access other sites, according to a new study by Shape Security. More than three billion credentials were reported stolen worldwide in 2016, with 51 companies admitting a breach. These stolen credentials are routinely abused by cybercriminals …
John Leyden, 17 Jan 2017
A businessman in handcuffs

Ex-Autonomy CFO pleads not guilty to charges he inflated the company's value

The ex-chief financial officer of Autonomy, Sushovan Hussain, has pleaded not guilty to charges he inflated the price of his company's $11bn (£9bn) acquisition by Hewlett-Packard. It is the latest development in the ongoing legal spat after HP wrote down the acquisition by a staggering $8.8bn (£7.1bn) in 2012, a year after the …
Kat Hall, 13 Jan 2017

Smart fingerprint padlock startup to $320k backers: Sorry for the radio silence

TappLock, a startup promising the "world's first smart fingerprint padlock" has claimed that issues with manufacturing in China were behind the months of silence which provoked aggrieved backers to contact The Register, fearing fraud. The padlock business had managed to raise over $320,000 on the crowd-funding site Indiegogo …

Dieselgate: VW pleads guilty, will cough up $4.3bn, throws 6 staff under its cheatware bus

In one of the toughest smackdowns in recent US corporate history, Volkswagen has pleaded guilty to Dieselgate fraud charges, and will cop a massive fine. Meanwhile, six staffers have been charged regarding the engine cheatware scandal and are facing the business end of a trial. According to the US Department of Justice on …
Iain Thomson, 11 Jan 2017
Standup comedian faces the crowd. Photo by shutterstock

What do you call a firm that leaves customer financials unencrypted on a hard drive? RSA

A UK insurance business has been fined £150,000 for its lax security practices after a hard drive containing customers' unencrypted information was stolen. The hard drive disappeared from the offices of Royal & Sun Alliance insurance (ironically it prefers the abbreviation RSA) back in 2015. It contained 59,592 customers' …
DOor to a bank vault. Photo by Shutterstock

Rethink on bank cybersecurity rules might only follow major bank breach, says expert

It might take a major bank to fail as a result of a cyber attack for meaningful changes in cybersecurity practices, regulation and governance in the UK banking market to be implemented, a leading industry commentator has said. In an interview with Out-Law.com, professor Richard Benham, chairman of the National Cyber Management …
OUT-LAW.COM, 10 Jan 2017
Image by LuckyN http://www.shutterstock.com/gallery-1795121p1.html

Two years on, thousands of unpatched Magento shops still being carded

More than 6,000 online stores running eBay's Magento platform have been hacked with credit cards stolen under a campaign that could span almost two years, Germany's Federal Office for Information Security says. Attackers are injecting carding malware on unpatched Magento shops, which steals payment information during …
Darren Pauli, 10 Jan 2017
NHS hosptial photo, by Marbury via Shutterstock

Corrupt NHS official jailed for £80k bribe over tech contract

An NHS official who pocketed £80,000 in bribes for doling out lucrative IT contracts has been sentenced to three and half years in the slammer, while the techie contractor who benefited from them was given 14 months. Peter Lewis, 57, of Windlesham, admitted receiving corrupt payments from Richard Moxon, 41, of Wynbury in …
Bored cat on computer, photo via Shutterstock

Pharma hate figure Martin Shkreli suspended from Twitter

One-time pharmaceutical exec and distasteful windup merchant Martin Shkreli has had his Twitter account suspended after a Twitter spokesman alleged he had harassed a female journalist on the site. Lauren Duca, a freelance journalist who writes for Teen Vogue and a host of left-wing American media outlets, including Vice, The …
Gareth Corfield, 09 Jan 2017
Raising _Lazarus_from_the_dead

X-IO: Reports of our demise have been greatly exaggerated

Updated X-IO Technologies chairman and CEO Bill Miller has called in to say: "I was very surprised and disappointed to read our name in the 'Deaths' section of your 2016 year in review article. "As Mark Twain might have said, 'the reports of my death are greatly exaggerated'." Bill tells us: "We have undergone a somewhat miraculous …
Chris Mellor, 09 Jan 2017

CIA director AOL email hacker coughs to crime

Justin Liverman, arrested by the FBI for breaking into the AOL email account of CIA director John Brennan, has today signed a guilty plea deal in the face of what his lawyers described as "draconian penalties." Brennan's webmail inbox was hijacked in 2015 and his emails were subsequently published by WikiLeaks. Liverman is …
Ransomware, photo via Shutterstock

Ransomware sleazeballs target UK schools

Cybercrooks are targeting UK schools, demanding payments of up to £8,000 to unlock data they have encrypted with malware. Action Fraud warns that fraudsters are cold-calling schools claiming to be from the Department of Education and asking for the head teachers’ email addresses. Crooks then send booby-trapped emails with …
John Leyden, 06 Jan 2017
Poster for the movie Cable Guy. Copyright:  Columbia Pictures Corporation,

Routes taken by UK prosecutors over supply of modified TV set-top boxes

Analysis Prosecutors are turning to fraud charges in cases against people supplying set top boxes that can be used to access copyrighted material without paying for it because it makes cases easier for juries to understand. But a barrister who acted in one recent such case has told Out-Law.com that those conspiracy to defraud charges …
OUT-LAW.COM, 06 Jan 2017

Google nukes ad-blocker AdNauseam, sweeps remains out of Chrome Web Store

Google has removed ad blocking and privacy extension AdNauseam from its Chrome Web Store, and has taken the unusual step of flagging the extension as malware, thereby preventing AdNauseam from being used by those who have installed the software via Chrome's developer mode. Chrome users who put their browser into developer mode …
Thomas Claburn, 05 Jan 2017
fail

Florida Man sues Verizon for $72m – for letting him commit identity theft

A Florida inmate is suing Verizon Wireless after he used one of the telco's stores to commit identity theft. James Leslie Kelly, who is serving a prison term in the US state for grand theft and criminal use of personal information, is seeking $72m in damages from the telecom giant. He claims a Verizon shop in Highlands County …
Shaun Nichols, 04 Jan 2017
FACEPALM

Kaspersky fixing serious certificate slip

Updated Kaspersky is moving to fix a bug that disabled certificate validation for 400 million users. Discovered by Google's dogged bug-sleuth Tavis Ormandy, the flaw stems from how the company's antivirus inspects encrypted traffic. Since it has to decrypt traffic before inspection, Kaspersky presents its certificates as a trusted …

Those online ads driving you bonkers are virtually 'worthless for brands'

One dollar of online display advertising will buy you approximately $0.03 worth of actual ads seen by real people, according to Bob Hoffman, a partner in media consultancy Type A Group. Hoffman, who used to run the Hoffman/Lewis Advertising agency, is well known for his skepticism of online ads, a view that has found some …
Thomas Claburn, 03 Jan 2017
NYC

Trio charged with $4m insider trading by hacking merger lawyers

US prosecutors have charged three Chinese men with making more than $4m (£3.2m) by allegedly trading on information obtained from hacking top merger and acquisition law firms. The defendants are charged with targeting at least seven top international law firms with offices in New York, which advised companies on corporate …
Kat Hall, 28 Dec 2016

Groupon frauds blamed on third-party password breaches

Groupon has blamed fraudulent purchases from some UK customers' accounts on password leaks from other sites. UK consumer website MoneySavingExpert reports that “a number of Groupon users have seen £100s siphoned from their banks in recent weeks after fraudsters commandeered their accounts to make unauthorised purchases.” The …
John Leyden, 22 Dec 2016

White House report cautiously optimistic about job-killing AI

In a followup to its smash hit, Preparing for the Future of Artificial Intelligence, the White House on Tuesday released Artificial Intelligence, Automation, and the Economy, a report that attempts to outline the economic consequences of expected advances in automation and machine learning without actually risking a prediction …
Thomas Claburn, 22 Dec 2016

Kingpin in $1m global bank malware ring gets five years in chokey

A villain at the heart of an organized crime network that stole £840k ($1m) from victims' online bank accounts has been jailed. Tomasz Skowron, 29, of Meredith Road, Worthing, England, was sent down for five years and three months on Monday at Croydon Crown Court, after pleading guilty to conspiracy to defraud, fraud, and …