Category Archives: FTC

RSAC 2019: An Antidote for Tech Gone Wrong

As many ponder the big ethical questions around cyber, some are proposing public interest technologist as a solution.
Source: Threatpost.com | Privacy

Fund Targets Victims Scammed Via Western Union

If you, a friend or loved one lost money in a scam involving Western Union, some or all of those funds may be recoverable thanks to a more than half-billion dollar program set up by the U.S. Federal Trade Commission.

In January 2017, Englewood, Colo.-based Western Union settled a case with the FTC and the Department of Justice wherein it admitted to multiple criminal violations, including willfully failing to maintain an effective anti-money laundering program and aiding and abetting wire fraud. As part of the settlement, the global money transfer business agreed to forfeit $586 million.

Last week, the FTC announced that individuals who lost money to scammers who told them to pay via Western Union’s money transfer system between January 1, 2004 and January 19, 2017 can now file a claim to get their money back by going to FTC.gov/WU before February 12, 2018.

Scammers tend to rely on money transfer businesses like Western Union and MoneyGram because once the money is sent and picked up by the recipient the transaction is generally irreversible. Such scams include transfers made for fraudulent lottery and prizesfamily emergenciesadvance-fee loans, and online dating, among others.

Affected consumers can visit FTC.gov/WU to file claims, learn more, or get updates on the claims process, which could take up to a year. The graphic below seeks to aid victims in filing claims.

The FTC says some people who have already reported their losses to Western Union, the FTC, or another government agency will receive a form in the mail from the claims administrator, Gilardi & Co., which has been hired by the DOJ to return victims’ money as part of the settlement. The form will have a Claim ID and a PIN number to use when filing a claim online via FTC.gov/WU.

The agency emphasized that filing a claim is free, so consumers should not pay anyone to file a claim on their behalf. “No one associated with the claims process will call to ask for consumers’ bank account or credit card number,” the FTC advised.

This isn’t the first time a major money transfer business admitted to criminally facilitating wire fraud. In November 2012, MoneyGram International agreed to pay a $100 million fine and admit to criminally aiding and abetting wire fraud and failing to maintain an effective anti-money laundering program.


Source: KrebsOnSecurity

Industry Braces for Repeal of ISP Privacy Rules

Businesses say overturning one of the nation’s strongest internet privacy protection rules will deal a blow to data privacy, security and integrity for businesses and consumers alike.
Source: Threatpost.com | Privacy

Threatpost News Wrap, February 13, 2017

RSA 2017 is previewed and last week’s report on iOS apps being vulnerable to interception attacks, macro malware coming to MacOS, and new Uber open source module are discussed.
Source: Threatpost.com | Privacy

IRS: Scam Blends CEO Fraud, W-2 Phishing

Most regular readers here are familiar with CEO fraud — e-mail scams in which the attacker spoofs the boss and tricks an employee at the organization into wiring funds to the fraudster. Loyal readers also have heard an earful about W-2 phishing, in which crooks impersonate the boss and request a copy of all employee tax forms. According to a new “urgent alert” issued by the U.S. Internal Revenue Service, scammers are now combining both schemes and targeting a far broader range of organizations than ever before.

athookThe IRS said phishers are off to a much earlier start this year than in tax years past, trying to siphon W-2 data that can be used to file fraudulent refund requests on behalf of taxpayers. The agency warned that thieves also appear to be targeting a wider range of organizations in these W-2 phishing schemes, including school districts, healthcare organizations, chain restaurants, temporary staffing agencies, tribal organizations and nonprofits.

Perhaps because they are already impersonating the boss, the W-2 phishers feel like they’re leaving money on the table if they don’t also try to loot the victim organization’s treasury: According to the IRS, W-2 phishers very often now follow up with an “executive” email to the payroll or comptroller requesting that a wire transfer be made to a certain account.

“This is one of the most dangerous email phishing scams we’ve seen in a long time,” IRS Commissioner John Koskinen said. “Although not tax related, the wire transfer scam is being coupled with the W-2 scam email, and some companies have lost both employees’ W-2s and thousands of dollars.”

The Federal Bureau of Investigation (FBI) has been keeping a running tally of the financial devastation visited on companies via CEO fraud scams. In June 2016, the FBI estimated that crooks had stolen nearly $3.1 billion from more than 22,000 victims of these wire fraud schemes.

First surfacing in February 2016, the W-2 phishing scams also have netted thieves plenty of victims. At one point last year I was hearing from almost one new W-2 phishing victim each day. Some of the more prominent companies victimized by W-2 scams last year included Seagate Technology, Moneytree, Sprouts Farmer’s Market, and EWTN Global Catholic Network.

As noted earlier this week, scammers also are now selling 2016 employee W-2 forms that were phished or otherwise stolen from victim organizations, peddling individual W-2 tax records for between $4 and $20 apiece.

Tax refund fraud affects hundreds of thousands, if not millions, of U.S. citizens annually. Victims usually first learn of the crime after having their returns rejected because scammers beat them to it. Even those who are not required to file a return can be victims of refund fraud, as can those who are not actually due a refund from the IRS.

The IRS says organizations receiving a W-2 scam email should forward it to [email protected] and place “W2 Scam” in the subject line. Organizations that receive the scams or fall victim to them should file a complaint with the Internet Crime Complaint Center (IC3,) operated by the FBI.

Employees whose Forms W-2 have been stolen should review the recommended actions by the Federal Trade Commission at www.identitytheft.gov or the IRS at www.irs.gov/identitytheft. Employees should file a Form 14039 (PDF) Identity Theft Affidavit, if the employee’s own tax return rejects because of a duplicate Social Security number or if instructed to do so by the IRS.

W-2 forms are prized by ID thieves because they feature virtually all of the data needed to file a fraudulent tax refund request with the IRS in a victim’s name, including the employer name, employer ID, address, taxpayer address, Social Security number and information about 2016 wages and taxes withheld.

According to recent stats from the Federal Trade Commission, tax refund fraud was responsible for a nearly 50 percent increase in consumer identity theft complaints in 2015. The best way to avoid becoming a victim of tax refund fraud is to file your taxes before the fraudsters can. 

The FBI urges businesses to adopt two-step or two-factor authentication for email, where available, and to establish other communication channels — such as telephone calls — to verify significant banking transactions. Businesses are also advised to exercise restraint when publishing information about employee activities on their Web sites or through social media, as attackers perpetrating CEO fraud schemes often will try to discover information about when executives at the targeted organization will be traveling or otherwise out of the office.


Source: KrebsOnSecurity