Fake Microsoft employee scams $25k from couple in remote access heist

Computer hackers pretending to be from a giant tech company are calling consumers, and gaining access to their bank accounts. One hacker even swindled nearly $25,000 from one local couple.

“They’re so savvy that they can get into your computers and figure out passwords just by the click of the keys,” said Nancy Isdale.

Isdale and her husband George say they thought they were getting money from Microsoft until they were swindled out of $24,600. The hacker, who told the couple his name was Sean, made it seem like he was a tech support expert and that he was refunding the couple $400 on behalf of Microsoft, but instead he was fooling them into giving him remote access to their computer.

“Once they get into the computer you can see the mouse going around so they are into your computer,” explained George.

Then the couple said the scammer gained access to their money on their computer by saying they could help them set up online access for all of their bank accounts compromising their accounts.

“So that’s what they did, they took the money out of my savings, [and] put it in his checking account,” said Nancy.

Without them knowing, “Sean” took $25,000 from Nancy’s savings account and transferred it to George’s checking. Then the scammer said he mistakenly gave George a $25,000 Microsoft credit instead of that $400 credit, and that George needed to send $24,600 back.

“He was like crazy, he was like ‘oh my god this isn’t your money this is Microsoft’s money you need to get to the bank right away and wire transfer this’,” said Nancy.

What they ended up doing is sending their own hard earned money to that scammer in Bangkok, Thailand.

“You know I was nervous, I didn’t want to be responsible for $25,000 dollars to Microsoft so, you know, we went to the bank,” explained Nancy.

Just when they thought it was the end of it, the thief called them back a few days later demanding even more money.

“He wanted us to send $40,000 to Bangkok Thailand again,” explained Nancy.

Read More

Mortgage Fraudster Caused Victims to Lose Out on Dream of Homeownership

The pitch sounded enticing: for an upfront fee, real estate “investor” Hasan Hussain promised to find clients the homes of their dreams or negotiate the loans of existing homeowners struggling to pay their mortgages.

Yet Hussain did neither of those things. He simply took his victims’ money—depriving them of their dreams of homeownership and defrauding them out of more than $1 million. Hussain targeted people for whom English was a second language, encouraging them to sign documents they did not understand.

“One woman gave him her life savings. It was her American dream to find a home, and he told her he’d help her,” said Special Agent Christina Grady, who investigated the case out of the FBI’s Boston Field Office. “But he never followed through on any promises to anyone. He would collect money—from people who didn’t have much money—and pocket it.”

Not only did he target vulnerable homeowners or would-be homeowners but Hussain also had a knack for winning his victims’ trust, becoming “like part of their family,” Grady said.

Hussain, who began his years-long fraud scheme in Rhode Island in 2009 while on supervised release for similar crimes in Massachusetts, used a variety of tactics to defraud his victims, which got more complex over time as he acquired more homes.

For example, he convinced a family struggling to pay their mortgage to move out of their home and into one his other properties; he then rented their home out, collecting rent from the tenants without paying the homeowner’s mortgage.

Another tactic involved convincing homeowners that he was trying to negotiate with their lender on their behalf. Instead he would damage their property to decrease its value, and once the home was damaged, he’d buy the home in a short sale—a term for a property being sold at a price lower than what is owed on the mortgage.

Read More

Director Discusses FBI Approach at Cybersecurity Conference

With cyber threats to the United States and across globe reaching unprecedented levels, the FBI uses a full spectrum of expertise, technology, and partnerships to root out cyber criminals, FBI Director Christopher Wray said at the annual RSA Conference in San Francisco yesterday.

“Today’s cyber threat is bigger than any one government agency—frankly, bigger than government itself,” Wray said in an on-stage interview at the cybersecurity conference. “But I think no agency brings the same combination of scope and scale, experience, tools, and relationships that the FBI has.”

From multinational cyber syndicates to foreign intelligence services, hacktivists, and insider threats, Wray explained that the FBI takes a multidisciplinary approach to combating threats. For example, the Bureau has an elite rapid deployment force and Cyber Action Teams that can respond to incidents anywhere in the world. In addition, the FBI has joined other federal, state, and local law enforcement agencies on Cyber Task Forces to coordinate responses. Specially trained cyber agents are also embedded in FBI legal attaché offices in more than 60 countries worldwide.

In addition to law enforcement partnerships, Wray also stressed the importance of public-private partnerships, so prevention and response can be swift and coordinated.

“The key is having the private sector start to form relationships with their local field office beforehand,” Wray said.

As the FBI continues to grow its partnerships, the FBI is also developing its workforce’s cyber expertise. Wray spoke about the FBI’s success in recruiting special agents and professional staff over the past year.

“We’re dealing with the most sophisticated, toughest cyber actors in the world, and if you want the ability to take on those people, to be on the front lines of that battle, dealing with incredibly cutting-edge technology … you would be in the right place,” Wray said of FBI cyber careers.

View Source

Study Details Link Between Social Media and Sex Trafficking

Social media is increasingly being exploited to contact, recruit and sell children for sex, according to a study by The University of Toledo Human Trafficking and Social Justice Institute.

The study, which was requested by the Ohio Attorney General’s Human Trafficking Commission, reveals how traffickers quickly target and connect with vulnerable children on the Internet through social media.

“It is vitally important to educate parents, professionals and youth – especially our middle school or teenage daughters who may be insecure – about the dangers of online predatory practices used by master manipulators,” said Dr. Celia Williamson, UT professor of social work and director of the UT Human Trafficking and Social Justice Institute. “Through this outreach and education, we can help save children from becoming victims of modern-day slavery.”

“We know predators are using the internet to find their victims, and this eye-opening study highlights what a predator looks for in a victim and helps parents recognize the signs that their child may be a target,” Ohio Attorney General Mike DeWine said. “Using real-life examples, this study provides valuable information that parents can use to start open and honest conversations with their children about staying safe online.”

Through a series of 16 in-depth interviews by the institute’s staff and student interns with knowledgeable members of Ohio law enforcement, judges, direct service providers, advocates and researchers who engaged with victims who were trafficked online, the study outlines how traffickers connect to vulnerable youth online, groom the children to form quicker relationships, avoid detection, and move the connections from online to in-person.

“The transition from messaging to meeting a trafficker in person is becoming less prevalent,” Williamson said. “As technology is playing a larger role in trafficking, this allows some traffickers to be able to exploit youth without meeting face-to-face. Social media helps to mask traditional cues that alert individuals to a potentially dangerous person.”

Williamson cites a 2018 report that says while 58 percent of victims eventually meet their traffickers face to face, 42 percent who initially met their trafficker online never met their trafficker in person and were still trafficked.

The experts, whose identities are not being released, said the traffickers educate themselves by studying what the victim posts on commonly used view-and-comment sites such as Facebook, Instagram or SnapChat, as well as dating apps such as Tinder, Blendr and Yellow, or webcam sites like Chatroulette and Monkey, in order to build trust.

“These guys, they learn about the girls and pretend to understand them, and so these girls, who are feeling not understood and not loved and not beautiful … these guys are very good at sort of pretending that they are all of these things and they really understand them and, ‘I know how you feel, you are beautiful,’ and just filling the hole that these girls are feeling,” said a professional contributing to the study.

Read More

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