CHICAGO POLICE ARREST RAPPER AND 28 OTHERS FOR 'CRACKING CARDS'

Group accused of stealing millions from banks after using video clips and social media to promise card owners easy riches. Twenty-nine people in the Chicago area have received federal and state indictments for their alleged involvement in a bank fraud scheme that was conducted over social media for several years and has cost financial institutions millions of dollars in losses. Authorities say some of those arrested were Chicago gang members who used a wide range of social networks Facebook, Twitter, YouTube, and Instagram to post homemade rap videos that served to both flaunt the spoils of their success and to recruit victims. One of those arrested is Chicago rapper Kevin Ford, 26, who records under the name Bandman Kevo and who is best known for the song “Baller In Me” featuring controversial drill music rapper Chief Keef. He also had fall tour dates with Chicago speed-rapper Twista.

Court documents say Ford used social media sites to flaunt his riches; he often posted images of himself counting money or wearing name-brand apparel like Gucci and used pictures of a Maserati he owned to convince others to participate in his scheming. Ford is also accused of printing counterfeit checks and posting a threat to law enforcement on his Facebook wall. While the method to lure victims is new, the scheme called “cracking cards” on the street is an updated twist of identity theft, but where the victims are often willing participants. According to authorities conspirators used social media and other methods to advertise quick cash returns in exchange for debit cards and pin numbers. Once obtained they would deposit fraudulent checks into the accounts through ATMs; within hours they would then withdraw the funds at another ATM, currency exchange or point-of-sale terminal at a local store such as Walmart.

The banks identified in the three-year investigation as Citibank, US Bank, JP Morgan Chase and Bank of America, did not learn of the losses until after the money was withdrawn. The majority of the defendants are from the south side of Chicago and others from nearby border communities in Indiana and downstate Illinois. All were arrested and face various federal charges of bank fraud, among other charges. Sixteen of the defendants face the possibility of 30 years in prison and a $1m fine each. None of those recruited have been charged. Four of the defendants, including Ford, were members of the “RACK Boyz”, a hip-hop crew that created rap songs that overtly referenced “cracking cards” and were often pictured on YouTube videos holding wads of cash and wearing T-shirts emblazoned with their crew name. They would then send private messages to followers encouraging them to participate in the scheme. Other members of the crew arrested are Cortez Stevens, 24, of Griffin, Indiana; Stephen Garner, 23 of Portage, Indiana; and Mikcale Smally, 21, of Chicago. “If u wanna make 1900 all u would have to do is open up a citi bank account n they will give u a temp card we would be able to do it the next day from the time u get the cards … !!! u can do this every week No BS! hit me back asap!!,” authorities say Ford wrote in one message. The crew produced videos for songs like For the Money and Money Bag that advertised easy riches through images of expensive jewelry, clothing, cars and stacks of cash. Chicago police have long said that gang members use social media to recruit new members and brag about their activities; in 2012 they said police were incorporating Twitter and Facebook monitoring into their proactive audits of gang members. Jens Ludwig, director of the Chicago Crime Lab at the University of Chicago, said gang communications had increasingly migrated from graffiti tagging in neighborhoods to social media, which aided law enforcement track in tracking their activities. But there could be unintended consequences when messages online were interpreted with deeper meaning than was intended. Ford attorney Scott King told the Chicago Tribune that his client was a rapper and that the fantasies in his lyrics did not mean he led a life of crime. “I do not know if the government has ever listened to a rap song but they are typically not describing a cub scout meeting,” he said. “Social media makes their back and forth more visible, which has the upside of making it a little easier for police to monitor, but it has the downside of making things potentially more antagonistic,” he says. “No one at this point really understands the net effect of this changing social media environment.”

Culled from Guardian

EIGHT THINGS YOUR BANK WILL NEVER ASK YOU (BUT A FRAUDSTER MIGHT)

In a bid to protect customers from fraud, the UK’s big banks have published a list of things they will never ask you to do. Sadly the list does not include “to repay your mortgage” or “to come into a branch for a ‘review’ of your needs”, but with luck it will save some from falling victim to the assorted phishing, vishing (phishing by phone) and courier (sending someone round to collect your card) scams which seem to be permanently doing the rounds. These all involve conmen pretending to be from your bank or building society or the police in a bid to get hold of your details. The British Bankers’ Association (BBA) reckons that millions of people are opening themselves up to possible fraud, while a survey by Santander found that a third of people aged over-65 were unfamiliar with the most common types of scams, double the proportion of younger people.

A leaflet and a new website, Know Fraud, No Fraud, have advice on how to avoid becoming a victim, and what to do if you get caught out as well, as well as the list of requests which should ring alarm bells. Here is the list; read it and share it with people you know who may be less clued-up on these kinds of things.

According to the list your bank will never:

·         Ask for your full Pin or any online banking passwords over the phone or via email

·         Send someone to your home to collect cash, bank cards or anything else

·         Ask you to email or text personal or banking information

·         Send an email with a link to a page which asks you to enter your online banking log-in details

·         Ask you to authorize the transfer of funds to a new account or hand over cash

·         Call to advise you to buy diamonds, land or other commodities

·         Ask you to carry out a test transaction online

·         Provide banking services through any mobile apps other than the bank’s official apps.

Culled Guardian

CYBERCRIME NOW BECOMING A SERIOUS PROBLEM FOR MANY BRITONS

Survey finds 51% victims of identity theft, hacking or abuse on social media, while losses from online fraud are £670m a year. Many Britons have been the victim of a cybercrime such as identity theft, hacking or abuse on social media, new research has found. UK losses from online fraud are now running at more than £670m a year, though with many cases going unreported, the true economic cost is likely to be significantly higher. The data, which follows the outcry over private photos of celebrities published by hackers, was produced to coincide with Get Safe Online Week, which runs until 26 October and is aimed at raising awareness of internet security issues.

 Just over half (51%) of the 2,075 people surveyed said they had been a victim of online crime, a category which includes internet-based fraud, ID theft, hacking and online abuse. Of those, 50% said they felt either very or extremely violated by their ordeal, according to Get Safe Online, an internet security awareness initiative that is a joint partnership between the government, the National Crime Agency, the telecoms regulator Ofcom, law enforcement bodies and a number of major companies including Barclays and PayPal.

However, no fewer than a third (32%) of the cybercrime victims said they had reported the incident. Around half (47%) of those affected did not know who to report an online crime to, though a spokesman for the initiative said this figure was expected to fall as a result of the ongoing work of Action Fraud, the UK’s national fraud reporting centre, and the “considerable government resources” now dedicated to fighting cybercrime. On a more positive note, those who had suffered some form of cybercrime said the experience had shocked them into changing their behaviour for the better, with almost half (45%) opting for stronger passwords and 42% saying they were now more vigilant when shopping online. Separate figures from the National Fraud Intelligence Bureau showed that for the UK as a whole, more than £670m was lost to the 10 most common online frauds between 1 September 2013 and 31 August 2014. Tony Neate, chief executive of Get Safe Online, said: “Our research shows just how serious a toll cybercrime can take, both on the wallet and on wellbeing, and this has been no more apparent than in the last few weeks, with various large-scale personal photo hacks of celebrities and the general public. Unfortunately, this is becoming more common now that we live more of our lives online.” He added: “Get Safe Online Week this year is all about ‘Do not be a victim’, and we can all take simple steps to protect ourselves, including putting a password on your computer or mobile device, never clicking on a link sent by a stranger, using strong passwords and always logging off from an account or website when you are finished. The more the public do this, and together with better conviction rates, the more criminals will not be able to hide behind a cloak of anonymity.”

If you think you have been a victim of cyber-enabled economic fraud (where you have lost money), report it to Action Fraud by calling 0300 123 20 40 or visiting actionfraud.police.uk. If you are a victim of online abuse or harassment, report it to your local police force. For general advice on how to stay safe online go to getsafeonline.org.

Culled from Guardian

‘NUMBER SPOOFING’ SCAM CAN MAKE YOU THINK YOUR BANK IS CALLING

Technology enables fraudsters to fake number they are calling from, making false number appear on person’s caller ID. Criminals are using a new scam to make people believe they are speaking to someone from their bank by fooling their phone handset into displaying the bank’s correct contact number. The scam, known as “number spoofing”, involves fraudsters cloning the telephone number of an organisation they want to impersonate and then making it appear on the victim’s caller ID display when they telephone them.

The Financial Fraud Bureau, which has issued a warning to consumers, said criminals are using number spoofing to gain victims’ trust, often by drawing their attention to the number, in a bid to make them believe they are talking to their bank. In recent years a number of criminal gangs have taken to the phones in a bid to persuade the unwary into handing over their life savings. The fraudsters call people up out of the blue and pose as bank staff, police officers or other trusted organisations to persuade their victim to part with financial and personal details; often on the pretence that fraud has been detected on their account. In many cases the criminal asks the customer to call the bank on the number on the back of the bank card the same number displayed on their handset. In fact, the fraudsters simply keep the phone line open and play a fake dialling tone down the line. The victims, who think they are talking to their bank, are then told to move their money to a secure account. In other cases, victims have been told to hand over their debit or credit cards to a courier. Victims have lost thousands of pounds, some in excess of £100,000. While the technology needed to spoof someone’s number has existed for years, criminals have only recently begun using it to defraud people.

Financial Fraud Action UK’s intelligence unit, the Financial Fraud Bureau said it has become increasingly common in recent weeks. The FFA said: “If a number appears on your phone’s caller ID display, you should not assume you know where the call is being made from. Remember that if a caller is trying to draw your attention to the number on your phone display, it is very unlikely the call is genuine as there is no legitimate reason to point it out.” He said the advice to beat the scam is simple; never assume that someone is who they say they are just because their number matches that of an organisation you know. You should be suspicious if you are asked for your four digits Pin, your full online banking passwords, to transfer or withdraw money, or to give your card to a courier. Your bank or the police will never ask you to do any of these things.

Culled from Guardian