Feds Can’t Force You To Unlock Your iPhone With Finger Or Face

A California judge has ruled that American cops can’t force people to unlock a mobile phone with their face or finger. The ruling goes further to protect people’s private lives from government searches than any before and is being hailed as a potentially landmark decision.

Previously, U.S. judges had ruled that police were allowed to force unlock devices like Apple’s iPhone with biometrics, such as fingerprints, faces or irises. That was despite the fact feds weren’t permitted to force a suspect to divulge a passcode. But according to a ruling uncovered by Forbes, all logins are equal.

The order came from the U.S. District Court for the Northern District of California in the denial of a search warrant for an unspecified property in Oakland. The warrant was filed as part of an investigation into a Facebook extortion crime, in which a victim was asked to pay up or have an “embarassing” video of them publicly released. The cops had some suspects in mind and wanted to raid their property. In doing so, the feds also wanted to open up any phone on the premises via facial recognition, a fingerprint or an iris.

While the judge agreed that investigators had shown probable cause to search the property, they didn’t have the right to open all devices inside by forcing unlocks with biometric features.

On the one hand, magistrate judge Kandis Westmore ruled the request was “overbroad” as it was “neither limited to a particular person nor a particular device.”

But in a more significant part of the ruling, Judge Westmore declared that the government did not have the right, even with a warrant, to force suspects to incriminate themselves by unlocking their devices with their biological features. Previously, courts had decided biometric features, unlike passcodes, were not “testimonial.” That was because a suspect would have to willingly and verbally give up a passcode, which is not the case with biometrics. A password was therefore deemed testimony, but body parts were not, and so not granted Fifth Amendment protections against self-incrimination.

Read More

Credit Card Cloners Stole Thousands

A prolific credit card scammer—who continued his crimes from behind bars—is now serving a lengthy sentence thanks to a multi-agency investigation into his card-cloning operation.

From 2014 to 2016, Syracuse, New York, resident Daquan Rice, 23, and several associates purchased credit card numbers online from hackers in Russia, Pakistan, and Ukraine, who sell the information they steal. Rice also bought credit card numbers from a friend who worked at a Syracuse restaurant who had skimmed numbers from customer credit cards on Rice’s behalf.

Rice had an associate in New York City with a credit card cloning machine, and he would provide the numbers to the person to make new cards for him. Rice and his accomplices then used these cards to buy gift cards, which they would convert into cash or money orders.

“It’s unfortunately not that hard or complicated to get your hands on stolen credit card numbers,” said Special Agent Brandon Mercer of the FBI’s Albany Division, who investigated this case along with the U.S. Postal Inspection Service, New York State Police, and local law enforcement in the Syracuse area. “This information is readily available on the dark web from hackers and other criminals.”

There was nothing a merchant could have done to stop the fraudulent transaction, because the thieves put the fake cards in their own names. So even if a cashier asked for identification, the name on the credit card would have matched their IDs.

“It was a numbers game. They would print out hundreds of these cards. They would go to the register and swipe, and if it didn’t work, they would just throw it away and use the next one,” Mercer said. “A lot of these cards were only able to used once because the cardholder noticed the fraud and shut down the card.”

The fraudsters made about $80,000 over two years.

After his 2016 arrest for credit card cloning, Rice tried to continue his scheme—from his jail cell. In 2017, he worked with an accomplice, who was not in prison, to put more than $8,000 in funds stolen through credit card fraud on Rice’s prison commissary account. Rice tried to use that account to write large checks, but the prison shut down his account for the unusual activity and contacted the FBI.

Rice pleaded guilty to wire fraud, money laundering, and aggravated identity theft, and in October, he was sentenced to more than 11 years in prison. Several accomplices have also been sentenced for their roles in the scheme.

Read More

IRS scam callers are going to jail for up to 20 years

With stiff sentences for 21 conspirators last week in the United States and a round of indictments in India, the Justice Department says it has broken up what appeared to be the nation’s first large-scale, multinational telephone fraud operation.

Over four years, more than 15,000 victims in the United States lost “hundreds of millions” of dollars to the sophisticated scam, and more than 50,000 individuals had their personal information misused, the department said Friday. The money was routed through call centers in India back to the ringleaders in eight states.

The fraudulent calls came suddenly and frequently while the scam was active from 2012 to 2016, according to court documents. A person posing as an Internal Revenue Service or immigration official was on the phone, threatening arrest, deportation or other penalties if the victims did not immediately pay their debts with prepaid cards or wire transfers.

The calls targeted the most vulnerable Americans, including immigrants and older people.

An 85-year old woman in San Diego paid $12,300 to people claiming to be I.R.S. employees who threatened her with arrest for tax violations.

A Chicago man paid $5,070 after being threatened with arrest and deportation by supposed state police and immigration authorities, the indictment said.

The words “U.S. Government” showed up as the caller I.D. on a number from which a New Hampshire woman was told to pay the I.R.S. $3,980 in payment cards, the court papers said.

In the announcement on Friday, the department said 21 people living in eight states — Illinois, Arizona, Florida, California, Alabama, Indiana, New Jersey and Texas — were sentenced last week in Houston to prison for up to 20 years for their role in the scheme.

Two other conspirators in Illinois were sentenced in February to between two years to just over four years for conspiracy, and a third person in Arizona was given probation in a plea agreement, it said.

Read More

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.

Read More

Mobile County forms task force to fight “skimming”

MOBILE, Ala. (WKRG) – The Mobile County Sheriff’s Office and The Attorney General Office of Alabama are forming a partnership to combat Cyber Crimes in the Mobile Area.

According to the sheriff’s office, the purpose of a partnership between the two offices would allow for investigative support when needed for large-scale Cyber Crimes such as; electronic financial crimes that occur from skimming devices on ATM’S, gas pumps and any other devices where credit/debit is used.

“Cybercrime seems like it would be a fairly open and shut case-a cybercriminal commits a crime, law enforcement steps in and catches the bad guy and the case is closed,” says Sheriff Sam Cochran. “Since the method of how they commit these crimes are so complicated, law enforcement usually has to coordinate with government agencies, international partners, and private corporations and that is why this partnership will be such an asset. Our Deputies will be provided the forensic training in order to capture the evidence immediately without compromising the investigation.”

Back in February, the Alabama Attorney General announced the launch of a cybercrime lab with federal and state law enforcement. Marshall announced the initiative with prosecutors and Secret Service, FBI and Homeland Security officials in Montgomery on Wednesday. He says the lab will use cutting-edge tools to investigate cybercrime like online sexual exploitation, human trafficking and data breaches.

View Source

IL Senate moves bill to allow medical cannabis at schools

In a 9-1 vote Wednesday, the Illinois Senate Education committee approved a measure that would allow parents or guardians to medicate their children with cannabis while they’re at school. On Thursday, the full Senate is expected to vote on the bill, which sailed through the Illinois House last month.

The measure, dubbed “Ashley’s Law,” was named for 11-year-old Ashley Surin whose family filed a federal lawsuit against the state of Illinois and Schaumburg School District 54 for failing to include public schools among the places people can possess medical cannabis. Surin has been prescribed medical cannabis to treat seizures related to a leukemia diagnosis.

In January, a judge ruled in favor of Surin’s family, allowing the girl to bring her medication to school.

Sen. Cristina Castro (22nd) expects the bill to pass based on its bipartisan support in committee. Castro, who is co-sponsoring the measure, noted that Ashley and her family would be making the trip to Springfield for the vote.

“They will be my guests in the gallery,” Castro said. “They are very excited.”

Despite claims that cannabis legalization will create a windfall of tax revenue, a new report from Moody’s Investors Services shows that taxes from pot sales “provide only modest budget relief” in states that have legalized the drug for recreational use. According to the report, revenues generated by legalization “are a marginal credit positive” for the nine states, plus the District of Columbia, that have legal recreational cannabis laws.

Nevertheless, Democratic gubernatorial candidate J.B. Pritzker is continuing to push his plan to make pot fully legal in Illinois. Asked about the Moody’s study, Pritzker’s campaign defended his proposed policy.

“Legalizing marijuana will not just bring tax revenue to the state, but it will help reform a broken criminal justice system that has disproportionately harmed communities of color for far too long,” said campaign spokeswoman Galia Slayen. “JB knows we can legalize marijuana in a safe way that will benefit communities across Illinois and he is ready to do that as governor.”

The billionaire has said he believes legalization could bring in between $350 million and $700 million in revenue, a figure anti-marijuana groups have disputed.

Read More

“Bait Bike” Program Helps University Public Safety Catch Thieves

While students spent this school year rushing to and from classes, Pacific’s Department of Public Safety spent the past eight months hard at work protecting students and their belongings.

The officers at Public Safety are a proactive group who have gotten creative when it comes to curbing crime at Pacific. Perhaps the best display of that creativity is the Department’s response to one of the most common issues plaguing campus over the years: bike theft.

A 26-year veteran of the force, Lieutenant Wayne Germann of Public Safety told The Pacifican that officers could do very little about bike theft for a long time.

“It’s been very hard to have a progressive and proactive approach to bike theft because we have so many bike racks on campus that we can’t put enough people or enough cameras around to actually protect the bikes,” Germann said. “So either students have to be taught how to lock them up properly, so people can’t steal them, or we have to take other measures.”

One of the other measures Germann is referring to is something called the “bait bike” program. Spearheaded by Sergeant Nick DeMuth, this program addresses the bike theft problem by leading officers directly to the thieves themselves. Officers place decoy bikes around campus that contain GPS tracking devices, then simply wait for the bikes to be stolen.

“[We] take the bike out to an area where it’s known bikes are being stolen, or parts of bikes are being stolen, and purposely lock it up with a cable lock, which is one of the easiest locking mechanisms to cut and steal the bike,” Germann said. “The moment that somebody comes over and touches the cable lock… it will set off the GPS. Then it flashes up onto the screen for dispatch, which tells them where the bike is at, where it’s going, and so forth.”

Dispatch will then begin sending officers to the location of the bike to place the suspect under arrest.

The program has been in place for approximately two years, since Sergeant DeMuth learned about it from a department in the Las Vegas area. DeMuth knew it would be perfect for Pacific, and put in a request to take one of the bikes in the evidence room and turn it into a “bait bike.”

“Then he ordered the GPS unit and stuck it in the seat, and the rest was history. We were just knockin’ the heck out of them,” Germann said.

Read More

Sexual Assault Aboard Aircraft

April is Sexual Assault Awareness Month, and the FBI is taking that opportunity to alert the public about a serious federal crime that is on the rise: sexual assault aboard aircraft.

Compared to the tens of millions of U.S. citizens who fly each year, the number of in-flight sexual assault victims is relatively small, “but even one victim is unacceptable,” said FBI Special Agent David Gates, who is based at Los Angeles International Airport (LAX) and regularly investigates these cases. “We are seeing more reports of in-flight sexual assault than ever before,” he said.

Sexual assault aboard aircraft—which usually takes the form of unwanted touching—is a felony that can land offenders in prison. Typically, men are the perpetrators, and women and unaccompanied minors are the victims. “But at LAX,” Gates said, “we have seen every combination of victim and perpetrator.”

In fiscal year 2014, 38 cases of in-flight sexual assault were reported to the FBI. In the last fiscal year, that number increased to 63 reported cases. “It’s safe to say that many incidents occur that are not reported,” said Gates, one of the FBI’s many airport liaison agents assigned to the nearly 450 U.S. aviation facilities that have passenger screening operations regulated by the Transportation Security Administration (TSA). In larger airports such as LAX, multi-agency task forces are on location to investigate a variety of criminal and national security matters, from sexual assaults to terrorism and espionage.

 Crimes aboard aircraft fall within the FBI’s jurisdiction, and in the case of in-flight sexual assaults, agents describe elements of these crimes as being strikingly similar. The attacks generally occur on long-haul flights when the cabin is dark. The victims are usually in middle or window seats, sleeping, and covered with a blanket or jacket. They report waking up to their seatmate’s hands inside their clothing or underwear.

Read More

Nurse accused of stealing nearly $2,600 from patient

WAUKESHA – A patient walked into Waukesha Memorial Hospital with a wallet containing $2,585 in cash, which is placed in a bag for storage in a security room.

When the patient is discharged six days later and the security bag is opened in his presence, the only items found inside are a white board eraser and a box of tissues, neither of which belonged to him. No cash.

According to a criminal complaint filed March 28, an investigation by hospital security officials pointed to Jay Reiners, a 33-year-old nurse from Hartland, who was reportedly seen on surveillance video entering an area where the security bag was temporarily placed before it was moved to more secure area.

As a result of an investigation conducted separately by hospital security and the Waukesha Police Department, Reiners was charged in Waukesha County Circuit Court with one count of theft of movable property worth between $2,500 and $5,000.

Reiners was one of four hospital staff members aware of the large sum of money the patient had brought to the hospital prior to an undisclosed medical treatment on Jan. 6, according to the complaint. Three of them — a nursing assistant and two nurses, including Reiners — were identified in surveillance video as the money was first being counted and placed in the security bag.

According to the complaint, that bag was moved to a “cubby area,” loosely described as a place where patients’ belongings are kept before they are turned over to security personnel. The area is in view, though apparently not fully, of a surveillance camera.

In video reportedly viewed by hospital security and Waukesha police, Reiners was seen entering the cubby area, where he appeared to grab some items off the counter there, though it isn’t clear what they were, the complaint said. About five minutes later, he returned to the area, but this time, as he was leaving, he appeared to be holding his left arm tightly against his body, then entered a bathroom down the hallway.

Read More

Pittsburgh Mortgage Broker Defrauded Banks, Borrowers to Enrich Himself

With hundreds of pages of paperwork and thousands of dollars on the line, getting a mortgage can be a complex and intimidating transaction for homebuyers, who often depend on experts to get them through the process.

Unfortunately for some mortgage applicants in Western Pennsylvania, dishonest real estate professionals took advantage of that trust with fraudulent practices.

As the real estate market boomed before the 2008 crash, Pittsburgh-based Century III Home Equity was a successful brokerage, closing an estimated $100 million in loans annually. As a broker, the company acted as a middleman between the mortgage applicant and the lender, but the company’s employees manipulated both sides to enrich themselves. The owner—James Nassida, IV—and his loan officers misleadingly sold customers mortgage products that were not always appropriate for their financial situation but racked up the most fees. The brokerage also fooled lenders by lying about applicants, doing things such as inflating income, misrepresenting home values, or not disclosing that down payments were actually borrowed money.

“There was massive fraud here. They were not looking out for their borrowers; they were looking out for themselves,” said Special Agent Neal Caldwell of the FBI’s Pittsburgh Division, who investigated the case with the U.S. Secret Service as part of the Western Pennsylvania Mortgage Fraud Task Force. The task force, which came together in 2008, looked holistically at the mortgage fraud threat throughout the Pittsburgh area as part of a multi-agency team involving the U.S. Attorney’s Office, FBI, IRS Criminal Investigations, U.S. Secret Service, U.S. Postal Inspection Service, and others, including state agencies. The task force’s work over a 10-year period led to 140 convictions, ranking the Western District of Pennsylvania as one of the most successful districts in the country in prosecuting mortgage fraud.

Nassida required his employees to do whatever it took to close a loan, even if it was dishonest or illegal. In many cases, the company would sell a borrower a loan with a temporary minimum payment option, designed for those with seasonal or fluctuating income, without fully disclosing the terms. In actuality, the temporary minimum payment didn’t even cover all of the interest each month, causing the loan to “negatively amortize,” or actually increase the balance of the loan. While some customers, such as house flippers, understood these products, others found them disastrous financially when they were not fully informed of the consequences of paying the lower amount over a longer period of time. This was especially difficult for borrowers once the housing market crashed in 2008—they could no longer rely on a consistent increase in their home values to keep them from going “underwater,” or owing more than their homes were worth.

Read More