fraud
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Best Buy's secret intranet site to get a disclaimer; customers to get shaft
So after all the uproar and lawsuits over Best Buy's secret in-store intranet, which looked exactly like the external bestbuy.com site but lacked sale prices and other discounts, the company has responded in the lamest way possible: by putting a warning label on the in-store kiosks. The warning will say something like "THIS KIOSK DISPLAYS IN-STORE PRICES - WHICH MAY DIFFER FROM NATIONAL INTERNET PRICES," and advise customers to see a sales associate if they have any questions. It's still unclear why the company won't just do the right thing and match its own listed prices, but we're willing to bet the suits are patting themselves on the back for their innovative, out-of-the-box solution. Martinis for all!
Two Samsung executives arrested for fraud in Thailand
Well, it's not as sexy as wrapping a Ferrari around a pole, but it's been a little quiet in the world of white-collar tech exec crime, so we'll take what we can get -- and what we've got is two Samsung executives getting arrested in Thailand for allegedly defrauding two different suppliers out of a total of $19M. Park Kwang-kee and Kim Chung-jun, Samsung's managing director and general manager in Thailand, got put in cuffs last night over what Samsung is characterizing as a "restructuring" that will "maybe [cause] some of our business partners [to] lose some benefits." Sounds like quite the disagreement, there. No word on when this is going to trial, but Samsung says it's "sure" it'll win the case -- and then the search for the real killer is on.
Another lawsuit claims Apple, AT&T weren't forthright about iPhone batteries
Apple and its batteries just can't seem to catch a break, eh? This go 'round, Sydney Leung has filed a class-action complaint that reportedly accuses "both Apple and AT&T of fraud in neglecting to inform potential iPhone buyers of the costs involved in maintaining a working battery for the iPhone over the course of the handset's lifespan." The angered individual and his legal team are purporting that the iPhone's battery "lasts only 300 complete charges before depleting entirely," and also argue that Apple and AT&T didn't address this issue until after customers had made their purchase. Of course, Apple specs show that the battery in question is designed to hold a full charge for between 300 and 400 cycles, while still holding a majority of that charge afterwards, so unless Mr. Leung's (and a few others, too) battery mysteriously conked out after that oh-so-critical 300th charge, we're failing to see what ground he's standing on.
Dell admits to 4 years of financial malfeasance -- up to $150 million to be scrubbed
It's already been a rough year for Dell's dwindling market share much to the delight of HP and Apple. Now, as followup to the evidence of accounting errors and misconduct announced back in March, Dell has admitted that their senior / executive management regularly falsified quarterly financial returns from 2003 to 2006. In a filing with the SEC, Dell admits that "account balances were reviewed, sometimes at the request of senior executives, with the goal of seeking adjustments so that quarterly objectives could be met." In only one case did Dell actually invent sales numbers, usually, the shifty accounting involved the recognition of revenue earlier than appropriate. Dell must now reduce its reported net income for the period by as much as $150 million with the biggest downward restatements hitting Q1 2003 and Q2 2004 by 10 to 13 percent -- other quarters are expected to be 5 percent or less. It's unclear whether any of the management responsible for, or engaged in this malfeasance are still employed by Dell. Dell's CFO only said that "disciplinary action had been taken" and that current management and the board are "comfortable we have taken steps necessary to make sure this never happens at Dell again." Dell's stock is actually up a few points in pre-market trading which could be a sign that investors aren't too concerned by the piddley restatement (Dell posted $12 billion in net income during the period in question) and are stoked to see Dell finally move forward, undistracted. That is, if the SEC agrees. We'll see how the stock does once investors wake to the latest fetor to seep outta Austin this side of SXSW.
French e-voting hit hard by vocal detractors
France has been using e-voting machines since 2003, and most notably in the 2005 European constitutional 2005, where 50 e-voting municipalities were in play, but now that the number has climbed to 80 (out of 36,000), and a presidential election is at stake, several parties are crying foul -- and quite loudly. No specific incidents of fraud have been cited yet, but protesters sued to ban the machines outright a week before the election, noting that some models don't comply with a dual-key requirement for safety from fraud, and others, such as the iVotronic machines, have new software, but haven't been re-verified since 2005. After the first round of voting on Sunday, objections have become even more vocal, with The Socialists, the Communist Party and the Greens all banding together to decry the e-voting method as a "catastrophe." Apparently the machines posed a particular obstacle to the elderly, with some researches claiming that as many as four out of seven people over 65 couldn't vote properly. Also, voting lines were long in general, and the two hour wait on some e-voting machines apparently caused some voters to leave. The interior ministry claims they have had no problems with the machines since they were introduced in 2003. With 12 presidential candidates in the election, the three parties speaking up here by no means comprise a majority, but we're guessing we won't be hearing the end of this for a good while -- especially if things don't go their way in round two of the votes.Read - French parties call voting machines a "catastrophe"Read - Protestors sue to stop e-voting
Cornell researchers developing lie-detection software
While most of the world simply takes what everyone else says at face value, there's always been a dark market for inconspicuous lie-detecting gadgetry for the overly paranoid, but researchers at Cornell University are hoping to take lie-detection to the next level by carefully analyzing emails and SMS messages for fibs. In a three-year effort to "compile a list of indicators of written deception," the team drew from some "40 years of research in linguistics and lies, including recent work in the context of computer media and reviews of Enron emails." By carefully inspecting word choices, verb tenses, and a variety of other textual factors, the software can purportedly use "contextual parameters" to spot lies, and they hope to market the goods to police agencies, upset spouses, and of course, corporate ethics committees.So if you're ever-so-suspicious significant other (or mischievous youngster) has just recently put down the Skype headset in favor of pounding out emails, rest assured, help is on the way.[Via TechDirt, image via Cornell]
Microsoft investigating possible Xbox Live hacking
CNet has the scoop on what a Microsoft representative calls "reports of fraudulent activity and account theft taking place on the Xbox Live network." The company is investigating the claims, which include use of stored credit card information to run up massive Xbox Live points charges.It's not yet clear how extensive these problems are, but anecdotal evidence from forums and web sites shows how the apparent theft can manifest itself. It's not yet known if the unauthorized use is the result of hacking in Microsoft's network or a phishing scam to get login details from individual users.We're waiting to hear back from Microsoft on the extent of the problems and what specific steps are being taken to fix them. We'll keep you posted.Update: Major Nelson: No Xbox Live security breach
Best Buy's secret intranet site exposed
Those looking for a good buy, nay, the best buy, would be wise to note Best Buy's recently exposed secret intranet site, allegedly used to prevent customers from reaping the benefits of discounts advertised on BestBuy.com. Two Connecticut stores denied customers of discounted prices advertised on BestBuy.com by referencing the visually identical intranet site, which doesn't always reflect the lowest prices. The site, quickly disclosed by a local publication, was then put under investigation, yielding vague answers from Best Buy and no clear explanation of why it even exists. Best Buy issued a statement assuring their intent was not to mislead the customer and that they are "reminding [their] employees how to access the external BestBuy.com web site to ensure customers are receiving the best possible product price." Whether or not Best Buy encourages the ol' switcharoo is still up in the air, with local officials' investigations being hindered by BestBuy's "fuzzy responses" -- but something tells us they're not to be trusted.[Via Techmeme]
Woman pwns Rogers Wireless in court over fraudulent charges
Note to carriers: don't falsely bill customers -- who just happen to be lawyers -- for $14,000 in charges they never racked up. That's the lesson Canada's Rogers Wireless learned the hard way this week, getting slapped with a $2,000 fine (pennies by Rogers' standards, we know, but a nice little bonus in the customer's pocket) for turning off customer (and lawyer) Susan Drummond's son's phone after she refused to pay 14 grand in long distance calls she hadn't placed (we're pretty sure those are Canadian dollars, but it's still some serious dinero). But wait, the story doesn't end there: it turns out the original incident had taken place in 2005 after Ms. Drummond's phone was stolen out of her house while she was away. Ted Rogers -- as in, "Rogers Wireless" Ted Rogers -- personally got involved after he caught wind of the situation, turning the phone back on, wiping out the bill, and hooking up the Drummonds with a cool $5,000. Ms. Drummond decided to ignore the goodwill gesture, though, and take Rogers to court anyway for breach of contract, where she won. Paying attention here, AT&T?[Thanks, Brian]
GameStop employees allegedly fake PS3 theft
We're not ones to judge individuals who get carried away during the launch of a new console, be they politicians, hopeful campers, or even newbie eBayers. However, we draw the line at the law being broken in order to bag what is essentially a plastic box stuffed full of more plastic. In the latest of a rash of PS3-related crimes, two 19-year old GameStop employees have been accused of stealing four PlayStation 3s and then telling police that armed gunmen had robbed the store and taken the consoles instead. The charges include suspected embezzlement, burglary, and conspiracy, all of which carry hefty jail sentences if the suspects are proven guilty. Still, we all know what the ultimate sentence-based deterrent to this sort of crime is: a lifetime of living under the label of being the bad kind of PS3 fanboy.[Via Joystiq]
In-Game Spam Takes Players for 35g
Well we've all seen the gold ads, and Blizzard has warned before about spammers trying to nab your account, but I'm pretty sure this is the first instance of in-game mail fraud we've ever seen. Forumgand from Emerald Dream is reporting on the forums about a piece of in-game mail that showed up in his mailbox from a player named "Blizzard." Inside was an urgent note from Scarlet Commander "Mormon" (?) and an item called Symbol of Kings, offered COD for 35g. The note says that if the Symbol of Kings is brought to LHC, a nice quest reward will be given.What's the problem with that? As any high-level Pally will tell you, Symbol of Kings is a simple level 60 reagent, available from any reagent vendor for the kingly sum of 30s. But, as Forumgand points out, a lot of Horde may never have heard of this thing, and may think the in-game mail is legit.Community MVP Palehoof has replied to the post as well, and reminds everyone that Blizzard mail never comes from in-game characters named "Blizzard." It's all special and stuff, and comes on its own custom stationery. Any in-game mail that looks normal but comes from someone named "Blizzard" or "Viviendi," or, as Palehoof points out, level one rogues named "Caydiem," probably isn't legit at all.
Gizmondo Halo "project" used cam-mouselook
Back before "Fast" Stefan Eriksson was crashing cars and lying to police, he ran a little portable gaming company called Gizmondo. Their scam? Defraud investors by promising them a way into the very attractive, and lucrative, gaming market. One of their most effective tools was to promise a Gizmondo-exclusive portable Halo title. Gizmondo did have an arrangement with Microsoft Game Studios to produce some titles, including the popular MechAssault series, but Halo was definitely not a part of that arrangement. A former-Gizmondo employee told GameSetWatch that the title had only "a storyline and basic game structure at the very earliest stage of concept" and that it was all done "with a wink and a nudge to extract more cash out of the investors." Isn't that sweet?It isn't all bad though: the engineers at Gizmondo managed to get code running -- using one of id's open-source game engines -- enabling the Gizmondo's rear-mounted camera to control the "mouselook", allowing for a uniquely precise handheld FPS control scheme. Who knows what could have come of the Gizmondo if the execs weren't busy lining their pockets?[Via /.]
MS Point fraud reported (Updated)
Reader Drew shares a worrisome tale about unauthorized MS points on his passport account following the XBL down time—when it was impossible to purchase points:Just before Live came back up today, I got an email thanking me for my purchase of 500 MS Points on the Live Marketplace. The fun part is that I live alone and had not turned on my console today or yesterday--so I was curious as to how I could be charged for points--especially when the Live was down and unavailable for such transactions. At first I thought it was just an example of clever phishing, but when I turned on my 360 to find out, sure enough, I had more points than the last time I turned it off. I checked my passport account online and it said the points had indeed been purchased today. I called MS Support and they agreed with me (and not my cynical friend) in saying that it was impossible for me to buy points today--at least before Live came back up and that they would escalate the issue and I should expect a waiver of the 'no-refund' policy pending investigation--given the strange circumstances. Could be a one time thing--or just my luck, but if it happens to another guy somewhere, maybe it's news.Disturbing story. Has this happened to anybody else?(Update: Microsoft has acknowledged the problem and are crediting the affected accounts. From the Xbox.com forums: "All affected users will be getting refunds, none of you is going to have to pay for our mistake. And you'll be able to keep the extra points too. We are still working out the details, and it could take a few days for all of this to be fully resolved, but I wanted you to know that we absolutely will be taking care of this, no one will have to pay for any of these charges." Makes me wish my account was affected too!)
UK Government: Free iPods for all!
Well, not really. Government officials in the UK are getting serious about combating online fraud and identity issues. There is a proposal for an ID card system, which would store a person's online identity. The cost of the cards would be high, and Patrick Cooper, head of applications and data services at the UK Department of Trade and Industry, has proposed replacing the ID cards with iPod nanos, according to an article on ZD Net UK. From the article:"If you had...an iPod with a digital certificate [it] would also work...My boss would give everyone in the UK an iPod...that would also mean there would be no reason for anyone to steal one because everyone would have one." Sounds like a plan to me!
Scam or Not?: 8GB iPod nano upgrade
My compatriot Eliot and I tried to slog around the net this morning to figure out if this 8GB nano upgrade is a fraud. We are fairly sure that this is a complete fake (helped by the eBay strangeness and lack of proof photos). However, this did bring up a bit of a conundrum.We couldn't find pictures of the insides of any 4GB iPod nanos without daughter boards. I personally seem to recall seeing them somewhere. The daughter board versions were the first ones to get ripped open and there are quite a few pictures floating around of those. I have a plea for you, dear TUAW reader. If you have pics of the inside of a 4GB nano without a daughter board, could you email a link to them to our tip line or leave the url in the comments? You will help our quest to weed out fake iPod memory upgrades.
