fraud
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NFL's new digital ticket system tries to cut out scalpers
While there has been a fair amount of technical progress in concert and show tickets, sports tickets haven't quite made that leap yet: they're still either partly analog (read: old-school paper) or tend to be limited to a narrow group of sellers. NFL and Ticketmaster are hoping to fix that. They're extending their partnership to create what they say is the first open, all-digital ticketing system for sports. It'll both modernize the ticket process with less chance of fraud or other security woes, but will validate tickets at other sites. You can go through a third party knowing their tickets are the real deal and aren't coming from scalpers.
Amazon and eBay accused of turning blind eye to VAT fraud
It's not uncommon to see a headline vilifying a well-known tech company for their incredibly low tax contributions despite turnovers in the billions. The EU is famously taking Apple to task, but more often than not, these clockwork bouts of outrage are frustrating to endure. If these "loopholes" are built into the system, it would seem energy could be better spent lobbying for tax reform instead of telling the same story ad infinitum. But this isn't one of those stories. In a new report, the UK government's Public Accounts Committee has made some pretty strong allegations against Amazon, eBay and other unnamed online marketplaces, accusing them of facilitating VAT fraud.
IRS hands fraud prevention contract to Equifax despite massive hack
You'd think that government agencies would be reticent to work with Equifax given that it just exposed the private info of more than 145 million people through a preventable hack, but a massive data breach apparently isn't enough of a deterrent. The Internal Revenue Service recently awarded Equifax a fraud prevention contract that will have it verifying taxpayer identities. And crucially, it was a no-bid, "sole source" contract -- Equifax was deemed the only company capable of fulfilling demand.
SEC accuses two digital coin creators of ripping off investors
While initial coin offerings aren't prohibited in the US like they are in China and South Korea, authorities are still keeping a close eye on them. Case in point: the US Securities and Exchange Commission's first ICO-related charges brought against a businessman and his two companies. SEC has accused Maksim Zaslavskiy of defrauding investors by selling virtual currencies backed by assets that don't exist.
SEC is getting serious about bitcoin fraud and fake news
The US' Securities and Exchange Commission has to deal with a lot more than classic financial crimes these days: it has to worry about everything from insider trading hacks to the integrity of the latest digital currencies. To that end, it's creating a Cyber Unit that will focus its enforcement team on digital offenses. These include hacks, such as attempts to obtain insider info or to compromise trading platforms and accounts, but that's really just the tip of the iceberg.
Justice Department takes aim at Hurricane Harvey scammers
This week a number of federal and state law enforcement agencies teamed up to prosecute any scammers taking advantage of the Hurricane Harvey aftermath. Texas-based agencies along with the SEC, FBI, FTC and others have created a working group that will investigate any fraud, theft and price gouging related to the hurricane. "Under the lessons learned from Hurricane Katrina, we bring a comprehensive law enforcement focus to combat any criminal activity arising from the tragedy of Hurricane Harvey and the rebuilding efforts underway," said acting US Attorney Abe Martinez in a statement.
Former Uber CEO says fraud lawsuit defies common sense
Travis Kalanick says Benchmark Capital, the Uber board member suing him for fraud, pretended to be on his side and then forced him to resign as CEO while he was vulnerable due to the death of his mother. The former Uber chief has filed his response to the investment firm's lawsuit, which seeks to kick him off the board and to invalidate a previous company decision to expand the board with three additional seats. Benchmark said the expansion was "fraudulently induced," a ploy by Kalanick to "increase his power for his own selfish ends." Now Kalanick has fired back, accusing the firm of fabricating its allegations.
Volkswagen’s head of compliance pleads guilty in emissions scandal
Last September, Volkswagen's James Robert Lang pled guilty in federal court on charges of conspiring to defraud US regulatory agencies and consumers. The veteran Volkswagon AG engineer admitted to his part in creating software for the EA 189 engine that would essentially cheat on emissions tests. The car company itself agreed to pay $4.3 billion to settle federal criminal and civil charges over the emissions-cheating technology this past January. Now yet another executive has entered a guilty plea. Oliver Schmidt faces up to seven years in prison and a fine of $40,000 to $400,000 for his part in conspiring to mislead US regulators. His sentencing is set for December 6th.
China's 'elevated' bus was a scam after all
Remember that Chinese public transit experiment running an elevated bus over 300 meters of track along a major roadway? Unfortunately, the test site started gathering dust as "financial problems" and other suspicious setbacks reportedly set in months after the oddball vehicle's unveiling. But now it's official: Chinese authorities believe the whole thing was a scam and have started investigating (and arresting) accordingly.
Fyre Festival founder arrested, charged with wire fraud
There has been one arrest following April's disastrous Fyre Festival event, as the Southern District of New York US Attorney's office announced the arrest of Fyre Media founder William McFarland. He's charged with wire fraud for allegedly lying to investors about how much money the company was making from artist bookings. According to Assistant Director-in-Charge William F. Sweeney Jr., "McFarland truly put on a show, misrepresenting the financial status of his businesses in order to rake in lucrative investment deals."
Faulty airbags cost Takata everything
Takata, the Japanese corporation at the heart of the auto industry's largest ever product recall, has filed for Chapter 11 bankruptcy protection. The business supplied airbag inflators that, thanks to poor standards in the plant where they were manufactured, were faulty. The scandal forced a worldwide recall of more than 40 million vehicles and several deaths have been linked to the issue.
Former Epix exec pleads guilty over $7 million fraud
In 2009, Viacom, Lionsgate and MGM joined forces to launch a premium movie channel called Epix, with Emil Rensing as its Chief Digital Officer. Turns out hiring Rensing was a bad move: according to the Justice Department, he has just pleaded guilty to defrauding the network $7 million over his five-year employment with the company. The former exec apparently used his position to forge contracts between the network and vendor companies he himself owned and controlled. He then used the names of business associates and acquaintances as vendor personnel, setting up fake email accounts for each one of them to make them look legit.
FTC cracks down on internet tech support scams
The Federal Trade Commission isn't letting up in its quest to rid the world of tech support scammers. Officials have launched a legal campaign, Operation Tech Trap, in a bid to crack down on frauds that rely on a mix of web pop-ups and phone calls to frighten you into paying up. The effort includes four fresh complaints (in Alabama, Colorado, Florida and Ohio), two settlements (in Connecticut and Florida) and charges against seven people -- two of which have already pleaded guilty. It's as much a public show of the FTC's might as it is a significant bust, but many of the perpetrators were particularly insidious.
Alabama tests filing taxes via selfie
As tax day looms, Alabama citizens will get to live the dream and file using an app on their mobile device. The state's department of revenue is partnering with MorphoTrust to let taxpayers use the company's electronic ID (eID) system to digitally send in their taxes. In return for using the face-scanning app to prove their identity online, folks willing to to test the new setup will get priority processing and an expedited return.
Email scheme stole $100 million from two US tech companies
It's tempting to assume that technology workers are intelligent enough to avoid email fraud, but that's not always the case. Both the FBI and the state of New York have charged a Lithuanian man, Evaldas Rimasauskas, with perpetrating a phishing campaign that siphoned $100 million away from two US tech companies. They're both choosing to remain unnamed, although one is a "multinational online social media company" -- you can probably whip up a short list of candidates based on that description. The scheme wasn't particularly complicated, either, and mostly relied on less-than-attentive employees.
Takata pleads guilty to fraud in faulty airbag cover-up
Japanese auto parts maker Takata has formally pled guilty in federal court today to a criminal fraud charge stemming from its cover-up of millions of faulty airbags. As part of the guilty plea, Takata admitted it intentionally hid the fact that its airbag inflators could explode and throw hot metal shrapnel into drivers' faces.
AT&T service prevents scam calls from reaching your phone
Yes, you can block phone numbers used for robocalls and tech support scams, but that usually means having to take at least one call (or running the right software) before you realize something's fishy. And AT&T, at least, is trying to do better. In response to the FCC's request for tougher action, the carrier has introduced a free Call Protect service for HD Voice (voice over LTE) users that aims to block fraudulent and spam calls, in many cases before they even reach your phone. An automatic fraud blocking feature will stop scams at the network level, while you'll also get warnings about suspected spam calls if you're in an HD Voice coverage area.
China's elevated bus test site has been abandoned for months
Remember China's wacky Transit Elevated Bus aka TEB which promised to carry passengers over traffic? Well, we have some bad news for you. China News reported that the 22-meter-long prototype unveiled in early August had been collecting dust in its hangar for well over two months, according to the two old men who were guarding the vacated test site in Qinhuangdao. One of them added that he could no longer contact his employer. A quick look at the project's still-functioning website is just as worrying, with its latest post dating back to September 15th.
Thieves can use web bots to guess your Visa card details
If you've punched in credit card details while shopping online, you've probably wondered how secure those digits are. According to Newcastle University, the answer is: not very. Its researchers have discovered that thieves are using web bots to guess Visa credit and debit card info thanks to a flaw in the company's payment system. The biggest challenge is obtaining valid 16-digit card numbers, usually by buying them or using an algorithm to generate valid examples. After that, the bots find expiration dates and CVVs (that three-digit number on the back) by spreading guesses across hundreds of shopping sites, plugging numbers into fields until they hit the jackpot. While that sounds like a painstaking process, the bots can figure things out in 6 seconds.
Trader pleads guilty to sparking stock market 'Flash Crash'
If you were trading on an American stock market on May 6th, 2010, you probably had a minor heart attack: the "Flash Crash" that day sent the Dow Jones Industrial Average down 1,000 points (600 in the first 5 minutes) and recovered virtually all its value in the space of just 15 minutes. However, investigators eventually discovered that the crash was the result of intentional manipulation... and now, investors are getting some justice for that manufactured crisis. Navinder Sarao (above), a British trader extradited to the US, has pleaded guilty to charges of both wire fraud and spoofing that came from using automated trading software to make "at least" $12.8 million in illegal profit from the crash and beyond.
