Fraud News Update 02.12.15


 Fraud News

02.12.15 – This week’s edition of the Fraud News Update features: M Commerce (Revenues Going Out Back Door), Small Business (Fraud Prevention Techniques), Death Scammers (Civil Case Goes To Trial), Bullseye (Financial Services Companies) and Follow the Money (Organized Crime, Terrorists and the Underground Economy).

As leaders in the fraud consulting arena, read on for more topical information and our insights, observations and unique commentary on the weekly fraud news.

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Mobile commerce has become a big part of the smart phone revolution. Being able to make purchases “on the go” is an über cool function of the new technology.

I was reminded of this functionality last spring when my family visited Dollywood on a trip to Tennessee during spring break with the kids. When we arrived, there were long lines waiting to purchase tickets but very few people going through the “pre purchased” tickets gate.

Seeing this, we quickly downloaded the Dollywood app, then conveniently went online and purchased tickets. Two minutes later we were strolling through the advanced ticket purchase line and into the park while folks were still standing in the ticket line waiting to get in.

But as a fraud professional, mobile commerce convenience is not without financial risk as indicated in this fraud news story.

The reality: technology development is always light years ahead of back-end fraud prevention and that’s the place the mobile industry finds itself in now…trying to keep revenues from going out the back door!

Fraud Fundamentals: Small Businesses Aren’t Exempt!

News media outlets are fond of telling the “large business” fraud victimization story. However, while those stories are certainly sexy, and full of nefarious intrigue, they only represent a small fraction of the total frauds being committed around the globe daily.

No businesses are immune from fraud but given media attention, often small business fraud stories go untold. While we don’t traditionally hear as much about these kinds of frauds, that doesn’t diminish the needs that small businesses have for fraud prevention resources, education and recommendations.

In this fraud news story, focuses on How Family Offices Can Minimize Fraud Risk. The Canadians also weigh in with their thoughts on steps small businesses can take to prevent fraud.

No matter where your business is located, what size it is or what industry you compete in, these are important considerations as a major fraud event can be devastating!

Death Doesn’t Become You

There are a lot of ways one could go with a story about death and fraud.

In 1976, Blue Oyster Cult sang “don’t fear the reaper.” That’s a little easier said than done, especially when you get ripped off while trying to arrange your after life accommodations.

People who rip off those trying to plan ahead, and not leave their loved ones with heavy funeral costs, are the lowest form of bloodsuckers!

As a result, I thought about naming this piece about a Missouri business, whose executives ripped people off in a prepaid funeral arrangement scam, “Werewolves of Clayton” (a tribute to the late Warren Zevon).

While the business executives, and others involved, are already in the hoosegow, the $500 million civil fraud case went to trial this week. There are no shortage of victim’s (Estimate: 10,000+) who took the scammer’s prepaid death arrangements bait.

There’s a very good possibility that the folks vacationing at Club Fed for their death misdeeds will “rot in hell” for preying on vulnerable people! Afterlife won’t be much of a party for these scammer’s!

Financial Services: There’s A [Big] BULLSEYE On Your Back

The financial services industry’s wearing an “attack me” sign on their back as indicated by this fraud news story.

The targets, however, aren’t always who one thinks they are. Insurance and healthcare fall under the financial services industry umbrella and there are very few verticals these days that are hotter than healthcare fraud.

While credit information may not be the prime target in healthcare attacks, stolen PII is extremely valuable on the black market often finding its way into other financial crimes.

Follow The Money

There’s not a more relevant expression in the fraud industry than “follow the money!”

Where the money ends up not only provides information about the methods being used but the signature of the individual players, and organized crime groups, involved and ultimately what the stolen funds are being used for.

A couple fraud news stories spotlight the relationship between organized crime and terrorist groups, followed by a quick look a the underground economy.

These are all key considerations of the follow the money mentality!

Fraud News – The Bottom Line

Fraud – empowering people to break the law. It’s a way of life for some and every fraud has a story. At Fraud Solutions, fraud is our world and we’re passionate about prevention. Being proactive is key, so, follow us each week as we cover the fraud beat with added insights, information and unique commentary on stories making the fraud news.

Those are our insights. What are yours?

For more information on how we can help your businesses prevent risk, reduce major fraud losses and improve operational ROI, contact us to schedule an initial consultation. No obligations…just unique insights from an industry leader.