- FrankonFraud
- Posts
- Bank "Inside Jobs" Rise As Fraudsters Adapt 🕵
Bank "Inside Jobs" Rise As Fraudsters Adapt 🕵
Frank McKenna
July 29, 2025
Hi Fraud Fighters,
If you’re interested in attending a special live event tomorrow, where we will demonstrate how Australian banks are weaponizing armies of AI Bots to scam scammers, you can register right here.
There are three very big internal bank fraud cases this week. This is becoming a trend to be aware of.
Fraud News Roundup 🗞️
BofA Contractor Fraud- A BofA Contractor who loaded $8.7 million in unemployment benefits on 187 prepaid debit cards was sentenced this week. She was paid $300,00 to do it. Read More
$379 Million Ghost Tap Lawsuit - An Australian man is suing NAB for way too much money for failing to stop a ghost tap fraud of $1,338 on his account. Read More
$100 Million Dorm Room Fraud - 21-year-old Ollie Holman sold fraudulent webpage kits to phishing fraudsters, who stole over $100 million from victims, targeting 69 financial institutions. Read More
Mega Digital Arrest Scam- A woman was digitally arrested for a mind-blowing 3-month stretch where she was forced to sell her home, sell her gold and take out loans. She lost over $2.2 million during the horrifying ordeal. Read More
LA’s Tinder Swindler - A real-life Tinder Swindler operating in Los Angeles has been arrested and his crimes seem like they are right out of the Tinder Swindler playbook! Read More
UK To Ban Ransomware Payouts - So many companies are electing to pay ransoms that it’s creating significant incentives for criminals and hackers. Now the UK is set to ban the practice. Read More
Dancing With The Devil - If you watched the Netflix special, you might be happy to know that the ringleader, Robert Shinn’s house was raided as part of a fraud, money laundering, and sex trafficking investigation. Read More
Old Fashioned Door to Door Scammer - A man was arrested with $300k in a suitcase trying to flee the country after he went door to door scamming elderly victims. Read More
Fraud Trauma - Kids at Chuck E Cheese will never forget this event for the rest of their lives! Read More
Go Deep In Task Scam - Sam thought he had scored a great marketing job, but found himself deep in a task scam where he experienced the gamification of scamming firsthand. Read More
NBA Fraud Arrest - Marcus Morris was arrested at the airport in Florida after a check fraud scheme in another state was uncovered. Read More
Scams and Starlink - A senator wants Musk to start blocking scammers favorite internet service to cut them off from the rest of the world. Read More
Grab Scam - Check out this new scam caught on video where ride-share drivers try to get people to cancel their rides so they can collect cancellation fees. Read More
Unlikely North Korean Agent - Christine Chapman, the Arizona woman who had laptops all over her modest home and ran a popular TikTok Channel called BestLifeThrift, was sentenced to a decade in prison for her role in helping hundreds of North Koreans get jobs with over 60 companies in the US. Read More
1980 Wants There Fraud Back - Fax machine scams are growing in North Dakota. Why oh why? Read More
$17 Million! The Infinite Money Glitch Strikes Again.
Another insane TikTok fraud case hit New York City this month. This time, it was called the SYEP Method, and unfortunately, it targeted kids participating in the New York Summer Youth Employment Program.
These are some of the poorest kids in the city, many of whom were getting a paycheck for the first time and they were conned into selling their cards to scammers for $1,000/
The scheme closely follows the pattern of two other major fraud schemes from last year – the Chase Glitch of August 2024 and the Fidelity Glitch a month later.
M&T Inny’s Arrested For Helping Steal Over $8M From Old Customers Called “Dead In Accounts”
An M&T Bank employee who called himself “Showtime Penn” recruited two 35-year veterans of the bank to help him steal customer data to sell on Telegram.
They allowed him to use their credentials and login codes so that he could take photos of older people’s customer details and credentials. They called the accounts “Dead In Accounts.” 🤔
It's crazy that two ladies who worked at the bank for 35 years would do this!
Inside Job At Chase - Teller Turned Off Fraud Alerts
A Massachusetts fraud ring recruited a Chase Teller to help them turn off fraud alerts and change email addresses of victims accounts so they could drain the accounts to the limit.
Credit Washing Tsunami: CFPB Complaints Are Skyrocketing This Year
Take a look at this chart, which displays the number of complaints consumers are filing with the CFPB against lenders and banks.
This is a massive 4X increase in the last year alone. So what’s happening here?
It’s simple, consumers are trying to erase bad debt by filing more false claims of identity theft, human trafficking, and other loopholes to boost their FICO scores artificially.
I don’t think we’ve ever seen credit washing at these levels before, and it’s showing no signs of letting up.
Read more on how Human Trafficking claims are spiking credit washing.
Anti-Fraud System Backfires: E-Verify May Be Driving Identity Theft Surge
Glen Valley Foods in Omaha followed all of the rules. They religiously used E-Verify to verify the employment status of all their employees.
But earlier this month, federal authorities raided their plant and detained 70 people using stolen identities.
Dive into how the government system may be resulting in a surge of identity theft.
Sam Altman’s Fraud Warning To Banks Has Two Big Problems
Sam Altman dropped a bombshell last week when he claimed that he’s “terrified” that banks use a “defeated” method, such as voice authentication, to move money.
But there are two big problems with his statement.
First, what Altman didn't mention is that he's been building a competing biometric system that he hopes will displace voice authentication. As Co-Founder and Chairman of Tools for Humanity, Altman launched the Worldcoin project which uses iris scanning to verify identity in exchange for cryptocurrency tokens.
Secondly, the question isn't whether voice authentication is dead - it's whether any single factor can survive in the age of AI, including Altman’s iris scanning tech.
Stellantis Sues Car Dealer for Massive $3.7 Million Phantom Car Purchase Scheme
A now-closed Albany Alfa Romeo dealership and its owner face a $3.7 million federal lawsuit for running a complex fraud scheme that included lying about vehicle locations, selling cars without paying the lender, and relocating inventory to secret places.
Stellantis Financial filed a complaint against Bul Auto Sales after the company abruptly closed its doors just last month. This type of scam is known as “Floor Plan Fraud” in the auto world.
The Most Gruesome Fraud Ever Surfaces
A surgeon cut off his legs to collect $600,000 in insurance money, and went so far as to set up his own YouTube channel to document his recovery.
This guy was a complete weirdo, even buying videos online that depicted amputations, and police suspect he may have even done this for others. Crazy!
Chinese Students Are Targeted In Global Cyberkidnapping Scams
Chinese students are being targeted in new sophisticated scams where they are forced to fake their abductions for ransom.
This gripping report goes deep on this new wave of scams that use terror and psychological manipulation to steal millions from victims.
Ghost Busters: How AI Caught 80,000 Fake Students Raiding Colleges
California colleges deployed an AI platform that identified nearly 80,000 “ghost students” attempting to receive financial aid fraudulently. The Department of Education reports that over $90 million was distributed.
The scammers used fake identities and bots to flood colleges with applications, then disappeared minutes after receiving their checks.
The AI found the fraud rate was between 7.6% and up to 65% at some colleges.
Thank You Scotia Bank Fraud Fighters ❤️
A couple of months ago, I recorded a fraud awareness video for Scotia Bank fraud fighters, and you won’t believe what I just got in the mail.
This! A hockey jersey with my favorite number emblazoned with “FrankonFraud”. What an amazing gift that filled my heart with such warmth for Canada and the Scotia Fraud Fighting Team.
The time I spent in Canada early in my career working with Canadian banks were some of the best years in my life. I love Canada!
That’s all I have for you this week.