The Hot Trend in 2015: Cyber-Extortion

Gartner's Litan: Top New Threats to Banks

Bank Info Security

Extortionists and insiders operating as criminal "free agents" have emerged as the top two cybercrime threats to banking institutions, says financial fraud expert Avivah Litan, an analyst for the consultancy Gartner.

"Cyber-extortion is probably the hottest trend of 2015," she explains during this exclusive interview with Information Security Media Group.

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Robocalls Are Doing the Dirty Work for Scammers

Why phone fraud starts with a silent call


Here's an experience some of us have had. The phone rings. You pick it up and say "Hello. Hello. Helloooo." But nobody answers.

It turns out there could be someone on the other end of the line: an automated computer system that's calling your number — and tens of thousands of others — to build a list of humans to target for theft.

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Liability Shift Makes Stores Responsible for Counterfeit Fraud

U.S. stores are about to pay up for security


Right now, if someone steals your credit card information, it’s a cinch for thieves to use it to make a counterfeit card. If that happens and they buy, say, a diamond necklace, your bank is on the hook to pay the damage. But not for long. Starting this fall, it will be individual stores (or jewelry dealers) and their insurers that will have to pay the bills for counterfeit credit card fraud. And many retailers are very, very unhappy about it.

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The Ominous Possibility of Fraud: Hurricane Sandy Victims 'Simply Spent'

Hurricane Sandy’s red tape makes a veteran say, ‘I’d rather go back to Falluja’

New York Times

The recent letter from the Federal Emergency Management Agency about his flood insurance claim should have come as good news to William T. Lynch, who is now on his third apartment rental since his 1920s cottage here was gutted by Hurricane Sandy nearly three years ago.

“If you believe we underpaid your claim,” it read, “you may be eligible for an additional payment.”

To FEMA, the message amounted to a rare acknowledgment to some 142,000 homeowners who filed claims with the agency after the storm that its procedures, which have been plagued by allegations of improprieties relating to engineering reports insurance companies relied upon, may have been seriously flawed.

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Is Tracking Stolen Information Also a Type of Securities Fraud?

Hacking case raises question on securities fraud

The New York Times

The elaborate scheme described by the Justice Department and the Securities and Exchange Commission last week, which involved breaking into computer servers to obtain confidential information about impending corporate announcements, certainly looks like a classic case of insider trading. The defendants are accused of making millions of dollars in profits by using information to trade profitably.

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Exaggeration and Inflation Leads to More Medicare Fraud

Whistleblower says Medicare Advantage plans padded charges in home visits


A whistleblower case in Texas accuses a medical consulting firm and more than two dozen health plans for the elderly of ripping off Medicare by conducting in-home patient exams that allegedly overstated how much the plans should be paid.

The Texas litigation, whose details were unsealed by the court in June, is just the latest of at least a half dozen whistleblower cases that have been filed in the past five years alleging billing fraud and lax government oversight of privately run Medicare Advantage plans, which have proven increasingly popular with the elderly.

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School Lunch Fraud

5 GAO workers charged with fraud in obtaining school lunch subsidies

The Washington Post

Five employees of a federal government watchdog agency, one of whom is a member of the Prince George’s County school board, were indicted Tuesday on charges of illegally obtaining reduced-price school lunches for their children, officials said.

Prosecutors allege that the employees, all with the Government Accountability Office, along with the spouse of a separate GAO worker, fraudulently reported their incomes to qualify for the discounted meals offered by the federal government. And officials said there may be nearly 300 other federal workers flagged for similar concerns of fraud.

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