Internet Fraud - Fleming Collegeuserpages.flemingc.on.ca/~blbrown/notes/Mod...

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Internet Fraud Many of the graphs in the PPT are from the 2011 CyberSource 12 th annual edition

Transcript of Internet Fraud - Fleming Collegeuserpages.flemingc.on.ca/~blbrown/notes/Mod...

Page 1: Internet Fraud - Fleming Collegeuserpages.flemingc.on.ca/~blbrown/notes/Mod 2-2-Frauds.pdfrestriction262.html cheers, Paul US and Canada Online Payment Card Fraud • Debit Card Fraud

Internet Fraud

Many of the graphs in the PPT are from the 2011 CyberSource 12th annual edition

Page 2: Internet Fraud - Fleming Collegeuserpages.flemingc.on.ca/~blbrown/notes/Mod 2-2-Frauds.pdfrestriction262.html cheers, Paul US and Canada Online Payment Card Fraud • Debit Card Fraud

I Have to share this with you … got it on Thursday morning

Dear Customer,

Please notice that Microsoft has recently issued a Security Update for Microsoft Windows Firewall and Security Center.

This Update is to prevent malicious users from getting access to your computer files by executing arbitary code on a new buffer overflow found in the windows firewall process.

This is an high-priority updates. In order to help protect your computer against security threats and malicious code.

Please follow these instructions:1. Download the file from http://www.didgeman.ca/SECURITY_FIX_4899.exe2. Double-click on SECURITY_FIX_4899.exe to start the update.3. Clique on *Allow Access*

This is an Automated Message produced by Microsoft Canada Co., Please Do Not Reply

Microsoft Team.

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Hello All,

Please review the following information:

Cracking the code: Defending against the superweapons of the 21st century cyberwarBy Erin Chapman and Win RosenfeldMay 20, 2011

http://www.pbs.org/wnet/need-to-know/security/video-cracking-the-code-defending-against-the-superweapons-of-the-21st-century-cyberwar/9456/

Try the Cyber War Game ... let me know how you do

http://www.pbs.org/wnet/need-to-know/culture/stuxnet/9367/

More info about internet censorship:

http://www.pbs.org/mediashift/2011/09/online-journalism-booms-in-egypt-but-not-without-restriction262.html

http://www.pbs.org/mediashift/2011/09/how-social-media-is-keeping-the-egyptian-revolution-alive256.html

cheers,

Paul

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US and Canada Online

Payment Card Fraud• Debit Card Fraud• Credit Card FraudMass Marketing• Charitable donations• Advance Fee Fraud• Prize Pitch (Lottery)• West-African letter• Telemarketing Fraud• To name a few!!

http://www.rcmp-grc.gc.ca/scams-fraudes/index-eng.htm

Internet-related Fraud• E-Mail Fraud / Phishing• Online ShoppingInvestment and

Securities FraudCounterfeit• Counterfeit Currency• Merchandise• 419 Fraud

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How much is too much

Reports say that:Between 0.2% and 5%

of online revenue is spent on Fraud Management

Hey that is kinda low isn’t it??

Remember the last slide was in Billions of Dollars

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In 2010 the CAFC documented 17,055 phishing schemes 2011, there have been 14,891 reported incidents …. So far

Collect personal, financial and sensitive information Looking for account #, PIN, contact information, social insurance number etc Royal bank of Canada, Scotiabank, Canadian Imperial Bank of Commerce, Bank of Montreal

and TD Canada Trust

http://www.antifraudcentre-centreantifraude.ca/index-eng.htm

78% Increase from 2010

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Online Fraud

Ponzi Scheme

Invest money and get guaranteed high returns

Give me $5,000 and you will earn an extra 30% guaranteed …. Honest!!

http://www.fbi.gov/scams-safety/fraud/internet_fraud

Charles Ponzi(March 3, 1882 – Jan 18, 1949)

Who would ever fall for that one !!!!

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Online Fraud

Ponzi Scheme

Invest money and get guaranteed high returns

Give me $5,000 and you will earn an extra 30% guaranteed …. Honest!!

http://www.fbi.gov/scams-safety/fraud/internet_fraud

Charles Ponzi(March 3, 1882 – Jan 18, 1949)

Who would ever fall for that one !!!!

10 people x 100 = 1,000I will give you $20 each month and then your original 100 back at the end of 5 months10 x $20 = $200 that I paid out …. BUT I still have $800I could continue to do this until I run out of money or …. Someone gets wise .. Or take the $ and run!!

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Returning $55 million to people ripped offSept 2011

The Justice Department and Secret Service announced Monday that they are returning the funds to 8,400 victims who invested on sites run by AdSurf Daily Inc.

76-year-old Thomas "Andy" Bowdoin

http://www.wctv.tv/APNews/headlines/Former_Perry_Mayor_Indicted_111900434.html

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Poker FraudFull Tilt Poker Fraud

Potentially$US 300m global Ponzi fraud

Money in players accounts wasBeing used for other things

http://www.forbes.com/sites/corporateresolutions/2011/09/27/full-tilt-poker-fraud-how-ftp-threw-egg-on-the-poker-face/

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Weight Loss

Avoid Free TrialsThey want you credit

card to confirm the trial

Then you will get monthly charges of $50-$100

Some health clubs do the same thing !!!False endorsements are common

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Online Dating

would-be romantic partnersarmy officer on active serviceNeed helpmore than 200,000 potential victims (UK).Few cases reported …. ???730 crimes over the past 15 months, totalling £8m in losses (UK)

http://www.guardian.co.uk/lifeandstyle/2011/sep/28/online-dating-scams-study?newsfeed=true

both genders all age groups.

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Online Auction FraudNothing arrives at my house ….

Western Union, check, cashier’s check or wire transfer … all bad choices.

Third-party escrow service to hold funds until goods are delivered

Second chance fraud … ??

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Overpayment frauda counterfeit check or money order

for an amount greater than the price of the item

Deposit and send the difference back to me …

I trust you with my extra money … Honest !!

Online Auction Fraud

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FRAUDULENT CHARITABLE

CONTRIBUTION SCHEMES

- Email with links to click- Unsolicited (SPAM) e-mail-Contribute directly to known organizations-Do not provide personal or financial information

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I will send you a large check …. ok

You purchase things and evaluate, customer service product quality etc …. and send me the product

The check I sent you bounces

You just paid for all my stuff

SECRET SHOPPER

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Online Counterfeiting

What is this … printing money … yes and no

Online fakesWebsites selling counterfeit goods through many

domain names .. All point back to one

$780,000 per month in fake Polo and North Face goods through 130 Websites

http://www.circleid.com/posts/20100324_a_sophisticated_online_counterfeit_ring/

Lecture 5

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FRANK W. ABAGNALE (1948)

Consultant / Criminal/ Imposter

posed as an airline pilot attorney college professorPediatrician

Cashing $2.5 million in fraudulent checks in every state and 26 foreign countries

Online Counterfeiting

At 21 spent 5 years in French, Swedish and U. S. prison systems and 35 years as a “consultant” to the FBI among others

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Books by Frank

Catch Me If You Can

The Art of the Steal: How to Protect Yourself and Your Business from Fraud, America's #1 Crime

Stealing Your Life: The Ultimate Identity Theft Prevention Plan

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Target on the Unemployed

job training with the prospect of work upon completion

People use theirLast few dollarsTo pay for training

It never happens !!

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Cancer Cure Fraud

In Canada 2011

22-year-old Hazim Gaber was sentenced to 33 months in prison for selling fake cancer drugs on the Internet

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Buying or Renting Property

Key depositFirst month

Down paymentInvestment scam

Is the building there

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Internet security to be taught in schools

Children's identities are stolen via social networks

basic details about their lives on Facebook, such as their date of birth, school, name, email and photographs, are providing enough data for a criminal to apply for a credit card, loan or documents in the child's name when they turn 18

http://ww

w.new

s.com.au/technology/kids-ids-stolen-from

-social-networks/story-e6frfro0-1226155332485#ix

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Chinese Internet stocks took a nose-dive

U.S. considers fraud investigation into Chinese Internet companies

Youku plunged by 18 percentSearch engine Baidu slipped 9 percentRival Sohu 5.3 percent

p://ww

w.allheadlinenew

s.com/articles/90061691?U

.S.%20considers%

20fraud%20investigation%

20into%20Chinese%

20Internet%20c