Category: Fraud

The former chairwoman of Ukraine’s central bank dubbed it one of the biggest financial scandals of the 21st century. Valeria Hontareva was describing the alleged theft of US$5.5 billion from PrivatBank, once the country’s largest commercial lender. The suspected masterminds are the bank’s two oligarch owners: Ihor Kolomoisky and Hennadiy Boholiubov, who stand accused of absconding with an amount roughly equal to 5 percent of the country’s gross domestic product. According to court records, both men are said to have recently been living in Switzerland, though Kolomoisky appears to be spending time in Israel. Reporters also uncovered numerous previously unknown…

The United States has urged financial institutions to pay attention and recognize an infamous virtual currency investment scam known as “pig butchering,” believed to have cost victims in the U.S. billions of dollars. Cryptocurrency investment scam known as “pig butchering” is estimated to have cost victims in the U.S. billions of dollars. (Photo: Jernej Furman, Flickr, License)The U.S. Financial Crimes Enforcement Network (FinCEN) issued the alert on Friday, detailing the scam’s approach and providing behavioral, financial, and technological red flags to help identify and report associated suspicious activity. The “Pig butchering” fraud, according to FinCEN, is similar to the technique…

Three of Spain’s top banks have joined forces to develop a platform for exchanging information and data to assist in the fight against and prevention of financial crime. BBVA, Banco Santander, and CaixaBank have launched FrauDfense, a joint business that will unify the three banks’ anti-fraud operations to address “one of the biggest challenges facing the banking sector: financial fraud.” They have presented the project to various Spanish supervisors and regulators. “The project covers the fight against a variety of fraudulent practices, which can be very diverse and sophisticated, such as admission fraud, where customer information is compromised by impersonating…

Defendants Were J.P. Morgan’s Former Head of Global Precious Metals Business and J.P. Morgan’s Former Head Gold Trader in New YorkTwo former precious metals traders at JPMorgan Chase & Co. (JPMorgan) were sentenced today for engaging in fraud, attempted price manipulation, and spoofing as part of a market manipulation scheme that spanned over eight years, involved tens of thousands of unlawful trading sequences, and resulted in over $10 million in losses to market participants. Gregg Smith, 59, of Scarsdale, New York, was sentenced to two years in prison and a $50,000 fine. Michael Nowak, 49, of Montclair, New Jersey, was…

BARCLAYS today (Wednesday) won a UK Supreme Court appeal that turned on the extent of banks’ duties to protect customers from fraudsters, in a closely watched decision lawyers say could stem a flood of litigation. Fiona Philipp, a music teacher and long-time customer, sued the bank in 2020 after she was tricked into transferring 700,000 pounds ($906,000) to accounts in the United Arab Emirates (UAE) in an elaborate so-called authorised push payment (APP) fraud. Such scams have become Britain’s largest type of payment fraud and cost customers 583 million pounds ($752 million) in 2021, a rise of 39% on 2020,…

People over the age of 70 are being disproportionately targeted by courier fraud, new data from the City of London Police reveals. Data from the National Fraud Intelligence Bureau, run by the City of London Police, the national lead force for fraud, revealed that people in their 70s or older lost more than £12.6 million to courier fraud last year, 77 per cent of all money stolen by this type of fraud. The split of fraud reports made by men and women aged 70 or above was 37 per cent and 63 per cent. Shockingly, data shows 153 reports were…

Auditors in the Democratic Republic of the Congo have uncovered a massive public payroll fraud, involving tens of thousands of ghost workers across government ministries, costing the public purse over US$800 million annually, according to a statement from the General Inspectorate of Finance. The audit found that 145,604 civil servants are paid based on fabricated payroll identification numbers, while 53,328 have more than one identification number and therefore receive multiple salaries. In addition, 43,725 officials are paid without being on the staff list of ministries that are supposed to employ them.The fraud was orchestrated by 961 payroll officers, who themselves…

Cold calls offering financial products will be banned as part of a government crackdown on fraud following evidence that millions of people are being targeted each week. Once the ban is in force, anyone being offered phoney cryptocurrency schemes or fraudulent insurance can assume they are a scam. More than 40 million adults in the UK were the target of a scam text or call in just three months, according to research by regulator Ofcom. Cold calls offering pension products are already illegal, and the latest announcement effectively extends these powers. The move follows warnings that people living with conditions…

Three men have been charged with fraud offences as part of a National Crime Agency investigation into a website which enabled criminals to subvert banking anti-fraud measures. NCA cyber crime investigators began probing the paid for subscription website www.OTP.Agency in June 2020. The site provided a service to criminals by helping them socially engineer bank account holders into disclosing genuine one-time-passcodes, or give other personally identifiable information, allowing multi-factor authentication to be bypassed. This granted access to a victim’s online banking or other accounts, enabling criminals to complete fraudulent online transactions. Investigators believe over 12,500 members of the public were…

Five men have been arrested across the North West and London in an NCA investigation linked to property investment fraud and money laundering. Man in his dressing gown being arrested by the NCANCA officers arrested a 68 year-old man at an apartment in Central London on Thursday [23 Feb] morning. He is suspected of being involved in the fraud that targeted victims with promises of investment returns on North West property developments. Would-be investors were approached to purchase apartments advertised as off plan with offers of high rates of guaranteed rental income when completed. The projects were never completed resulting…

More than 700 potential UK victims have been identified, among thousands worldwide targeted by a boiler room fraud that was run from Romania. National Crime Agency investigators believe the fraud, primarily offering false investments, was being carried out on a mass scale before it was closed down in September last year.Computer image web Three Romanian nationals were detained during a series of searches by NCA investigators and Romanian Police officers at apartments in north Bucharest. Since September, work has been underway to identify victims of the fraud. So far, a potential 700 plus UK victims have been identified and a…

A pickpocket took Jacopo de Simone’s mobile phone and used his banking apps to steal £22,500. He said his bank investigated but found him liable for the losses so he is still fighting to get the money back. He is just one victim of the growing threat of mobile phone fraud and banks need to do more to tackle it, according to charity the Fraud Advisory Panel. UK Finance, which represents 300 banks, said the industry was constantly monitoring fraud threats. Criminals are stealing mobiles not for the device but to try to access finance apps to steal thousands of…

As many of us wind down over the festive period into the New Year, fraudsters are busy at work luring in unsuspecting victims. The UK is currently in the grip of a fraud epidemic, from get-rich-quick schemes to unknown sellers tempting consumers with fake bargains. The rising cost of living is forcing many people to seek alternative ways to save and make money, and fraudsters are capitalising on it. They will often trick victims into making quick bank transfers rather than using other, more secure payment methods. UK consumer group Which? is warning against unwittingly handing over money and has…

Law enforcement, government and private sectors partners are working together to encourage members of the public to be more vigilant against fraud, particularly about sharing their financial and personal information, as criminals seek to capitalise on the cost of living crisis. Criminals are experts at impersonating people, organisations and the police. Stop: Taking a moment to stop and think before parting with your money or information could keep you safe. Challenge: Could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you. Protect: Contact your bank immediately if you…