Education Bait-and-Switch Scheme Cheated Veterans of Tuition Benefits

The GI Bill provides the country’s service members and veterans a free or reduced-cost college education to those who qualify, offering them a head start on their return to civilian life. But one group of fraudsters used the Post-9/11 GI Bill and other U.S. Department of Defense educational programs for veterans as a piggy bank to line their own pockets while cheating more than 2,500 service members out of an education they were entitled to under the law.

“This was straight up stealing. Stealing money for veterans that was supposed to help them advance their careers and make themselves more marketable to employers after coming out of the military,” said FBI Special Agent James Eagleeye, who investigated the case out of the FBI’s Newark Division along with investigators from the Department of Veterans Affairs (VA), the Department of Defense, and Department of Education.

The scheme was a basic bait-and-switch. A company called Ed4Mil worked with two schools: one, the private liberal arts Caldwell University in New Jersey; the other, an online correspondence school hired by Ed4Mil to develop and administer courses. Ed4Mil aggressively recruited service members and veterans, offering them free computers and gift cards to sign up for what they thought were classes taught by Caldwell University. Yet when Ed4Mil enrolled the students, they would put them in and pay for unaccredited correspondence school classes—but then charge the government the university tuition rates and pocket the difference.

At the center of the scheme was Ed4Mil founder and president David Alvey. The Harrisburg, Pennsylvania resident saw a business opportunity in educating veterans with government funds but learned that when the government provides tuition and other educational benefits directly to a school, certain requirements must be met that his startup could not satisfy.

To get around the law, Alvey conspired with a Caldwell University official to use the university’s name on coursework that the VA would not have approved. The official—then an associate dean at the school—falsely certified that students were taking the same courses from the same instructors who taught on campus at Caldwell.

But the veterans were instead enrolled in online courses like archery and heavy diesel mechanics that were actually taught by the correspondence school. Students sometimes received a housing allowance for the online school, in violation of the rules governing educational benefits.

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Defense Security Is Overhauling the Entire Security Clearance Process

The Defense Security Service is preparing to take over all background investigations for civilian and defense agencies and doesn’t want to inherit stale and potentially broken processes, officials told Nextgov.

The Defense Department office is currently reviewing white papers obtained through an other transaction authority solicitation seeking innovative methods for conducting background checks of current and potential federal employees who need security clearances.

The project is not about the technology behind background investigations process but rather how to innovate the process itself—from when the SF-86 form is filled out to when the clearance decision is made by the agency—according to Tara Petersen, head of DSS Office of Acquisitions, and her deputy, Stephen Heath.

“We’re really looking broader at the process itself,” Petersen said. “We’re looking to prototype a process.”

“Don’t think of the prototype like a widget,” Heath said. “It’s looking at that whole process: Where can we improve on that, where can we potentially save costs, where can we save time and where can we bring technology advancements into the process that are already out there in the commercial marketplace?”

After the 2015 data breach of Office of Personnel Management that exposed the personal information on more than 20 million current and former federal employees, background investigation duties were transferred to a new agency, the National Background Investigation Bureau with technical support delegated to the Defense Department.

But the security clearance backlog grew to more than 700,000 and the Government Accountability Office added the investigations process to its High-Risk List this year. Congress also passed legislation last year requiring DSS to take over all defense clearances work currently done by NBIB. Now, the administration wants to shift responsibility for all government background checks—defense and civilian—over to the Defense Department. While the lawmakers work that out, DSS is getting ready.

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Smartphone Fingerprint Scanner Gets a Heat-Sensing Upgrade

Fingerprint sensors—once a rarity—are now fairly common on smartphones. South Korean researchers have now given the fingerprint scanner an upgrade.

This new scanner is a clear sensory array, meaning that it could be hidden underneath the display rather than accessed as a button. It can also check the temperature of the fingerprint pressing into it to add an extra layer of security, CNET reports.

So why would your phone need to detect your temperature? It’s not for your health. Instead, it helps ensure that someone else isn’t using a fake hand or some other form of artificial fingerprints to get access to your phone.

Researchers from the Samsung Display-UNIST Center at Ulsan National Institute of Science and Technology in South Korea published an article on Tuesday detailing how they developed the sensor.

“This fingerprint sensor array can be integrated with all transparent forms of tactile pressure sensors and skin temperature sensors, to enable the detection of a finger pressing on the display,” the researchers wrote.

The researchers also confirmed that the sensor does this at a resolution that satisfies the FBI’s criteria for extracting fingerprint patterns.

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Malware Developer Responsible for Countless Computer Intrusions

Not that they knew him personally, but Taylor Huddleston, a 27-year-old from Hot Springs, Arkansas, was for a time very popular among the world’s cyber criminals, thanks to a malicious piece of software he created called NanoCore RAT.

That malware allowed hackers to steal sensitive information from victims’ computers, including account numbers and passwords, and even allowed them to secretly activate the webcams of infected computers to spy on unsuspecting victims.

“Basically, the malicious software compromises victim computers and steals information,” said a special agent from the FBI’s Washington Field Office who investigated the case. “The NanoCore RAT has the ability to control a victim’s computer.”

This type of malware—a Remote Access Trojan (RAT)—is all the more insidious because in most cases victims have no idea their computers have been compromised. According to court documents, NanoCore RAT was used to infect and attempt to infect more than 100,000 computers.

RATs are not only a threat to individual users but to commercial enterprises as well. And if hackers decide to target U.S. infrastructure using this malware, the agent said, “there is a potential for national security implications.”

Huddleston had the skills to develop malicious software. “There are many cyber criminals out in the world,” the agent said. “Many are not sophisticated in terms of developing a new malware. Instead, they would rather purchase malware to carry out their crimes.”

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CBP and Otter Products Partner to Prevent Counterfeit Phone Cases

WASHINGTON—U.S. Customs and Border Protection (CBP) announced today a new formal partnership arrangement with Otter Products, LLC, maker of OtterBox and LifeProof brand phone cases, as part of the Donations Acceptance Program. Under its partnership with CBP, Otter Products will donate authentication devices for CBP officers and import specialists to use to quickly and accurately detect counterfeit Otter Products merchandise entering the United States.

“Building off the success of localized enforcement efforts, CBP is now working hand-in-hand with Otter Products to target and deploy authentication devices on a nation-wide scale,” said Todd C. Owen, Executive Assistant Commissioner, Office of Field Operations. “CBP’s formal partnership with Otter Products will help us broadly deliver these highly effective tools to the front line officers and trade specialists who need them most.”

As part of its rigorous and ongoing brand protection efforts, Otter Products intends to partner with CBP for the long term by resupplying and, if necessary, upgrading authentication devices as CBP’s detection needs evolve.

“CBP’s formal partnership with Otter Products extends well beyond the initial deployment of authentication devices,” said Brenda B. Smith, Executive Assistant Commissioner, Office of Trade. “Our goal is to provide continuous, organized feedback to Otter Products pertaining to the ongoing use of these devices, their effectiveness, and opportunities to improve upon them so that we may jointly outpace those who seek to profit off counterfeit goods.”

The Donations Acceptance Program broadly enables CBP to accept donations of real property, personal property (including monetary donations) and non-personal services from public and private sector entities in support of CBP operations. Accepted donations may be used for port of entry construction, alterations, operations, and maintenance activities.

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