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- 🏦 Bank Teller Confesses: "I Don't Care If You Scam Us"
🏦 Bank Teller Confesses: "I Don't Care If You Scam Us"
Frank McKenna
February 18, 2025
Hello!
For months, I have been talking to victims in hot water and caught up in multi-million dollar fraud schemes.
In the dark corners of online merchant processing, good people are being hired to become ghost merchants whose sole purpose is to hide the true identities of high-risk merchants. This month, another $128 million ghost merchant fraud case was announced by prosecutors so it seemed like a good time to tell their story.
Let’s check out the top stories this week.
This Week’s Top Fraud Highlights
2000 Basis Points - The fraud rate that Lexis Nexis claims occurs against government programs. That equates to $1 Trillion a year, according to their CEO. Read More
Toll Scams Are Out of Control - Toll scam texts are proliferating nationwide as millions get hit with very convincing toll payment requests. Read More
AI Trouble - Is Elon Musk rooting out fraud by uploading data and PII into AI Agents? I bet the AI can find a ton of fraud, but… Read More
Jack The Ripper Identified - DNA for the win again. The identity of Jack The Ripper has been revealed over 130 years later. Read More
Deepfake Students - British universities thought AI would streamline their admissions process, but instead, it opened the door to digital doppelgangers and counter AI being used against them. Read More
Chops and Robbers - A butcher shop was scammed out of over 5,000 pounds of meat by fraudsters using stolen cards. The fraudsters claimed it was to feed the homeless. Read More
99% Come Willingly - Thai Police say that 99% of scam center workers come to the country voluntarily to work and that only 1% are hoodwinked. Read More
Unbeatable Fake ID’s - The New York Times covers a new wave of undetectable Fake IDs that are so good that they are passing anti-counterfeit tech at bars across the country. Read More
The High-Risk Merchant Next Door. How The IBO Scheme Ensares Thousands
Lisa Smith worked for 21 years at a Credit Union and loved her job. In 2021, she met an influencer online who promised her $750 for 30 minutes of work a month processing some simple paperwork. She was going to be paired up with an advertiser promoting health and beauty products online.
She agreed, and everything worked perfectly. As promised, she received $750 a month. However, one year later, the credit union told her that someone had reported a Suspicious Activity Alert against her identity, and she lost her job. She had unknowingly been ensnared in a devastating scam: the IBO Merchant Scheme.
Pig Butchering Soars 40% In 2024, Fueled By This Superstore For Fraud
A new report from ChainAnalysis reveals what we all suspected - Pig Butchering fraud soared 40% last year and shows no signs of slowing down. It’s what is behind the growth that might surprise you - a fraud superstore that sells everything from electric batons for scam bosses to AI deepfake software.
They tracked how scam bosses are plowing their profits into AI and its paying off big time.
Chase Teller: “I Don’t Care If You Scam Us”
Even a part-time teller can cause big losses to a bank when it comes to check fraud. And that is precisely what happened with Franchesca Calagui when she worked hand in hand with an outsider to help money mules cash fraudulent Treasury checks.
Before going on Maternity leave, she needed extra money, so she rapidly escalated her fraudulent activity, then it all came crumbling down.
Insider Fraud At Barclays - 394 Fake Business Accounts Created
Rukon Miah, a business manager at Barclays Bank, is accused of working with an outsider to fraudulently open 394 fake business accounts to launder fraudulently obtained funds.
He worked at the bank for 6 years before his termination. When he was fired, he took Barclays to court but never followed through on his complaint.
Chase Will Block Zelle Payments To Stop Scams
Chase announced that on March 23, it would begin delaying, declining, or blocking Zelle payments to accounts if they were identified as originating from social media contact.
"For your protection, Chase will not allow you to send Zelle payments identified as originating from contact through social media. We'll decline those transactions because Zelle is meant to pay friends, family and other trusted recipients you know, not for others you meet on social media," the bank warned.
Prime Auto Loan Delinquency Rates Up 47% - Auriemma Points To Synthetic Identity
New benchmark research from Troy Huth and Jaime Paz at Auriemma points to a disturbing rise in delinquency rates in the most unlikely segment - prime auto loans.
Lenders account for the rise in troublesome loans to synthetic identity and credit washing, two fraud types heavily fueled by illicit credit repair.
Crackdown: Shutting Down The Scam Bosses Empires
Thailand has launched a significant crackdown on fraud scam compounds, shutting off electricity, raiding the scam sites, destroying equipment, and disconnecting all telecom services so they can’t reach victims.
And they are having success, saving over 10,000 scam workers who they plan to return to their home countries. Is this a blip in the road for these scam bosses, or will it mark a long-term victory for the good guys?
Scammers Pivot To DOJ Impersonation, Threatening Deportation
Its a sign of the times. David Maimon highlights how scammers pivot to take advantage of immigrants and students’ fear of deportation.
Listen to an audio snippet of how these scammers are terrifying students now.
Fannie Mae Has A New Massive Mortgage Fraud Problem
Banks, are you monitoring mortgage fraud on your multifamily properties, such as apartment buildings? According to Fannie Mae, we may be knee-deep in an intensely developing fraud trend.
In their annual report, Fannie Mae disclosed that fraudulent or potentially fraudulent transactions contributed to its decision to set aside $752M for credit losses in 2024. As they investigate non-performing loans, they discover that many are fraudulent. This situation may only get worse before it gets better.
How To Fix The $100 Billion Refund Fraud Problem
Two fraud experts share their novel approach on how merchants can tackle the refunding fraud problem with some operational tactics. One quick hit? Implement a tiered refund process that progressively penalizes serial refunders. They have other good ideas, too.
Hiding In Plain Sight. How Scrib’d Became A Goldmine Of PII For Fraudsters
Researchers have uncovered a staggering trove of PII on Scribd, a digital library of 195 million documents.
Using an API endpoint they discovered for the site, the researchers uncovered over 13,000 documents containing personal information - from passport scans to bank statements - all hiding in plain sight thanks to users blindly uploading personal files to download content. 1,434 people even uploaded their entire IRS Tax returns.
Fraudology Podcast - Warnings For Fraud Fighters In 2025
Karisse’s podcast Fraudology is pure gold for fraud fighters. I joined her two weeks ago to unpack what we can expect this year in Fraud
CPN Public Records Bot “This Can Be Made For You At Price”
An interesting video by a creator called Zombie Debt shows how people are using bots to add their CPN profile information to “thousands of public records” to make the fake profiles appear more real.
Bots like these and other automation tools are sprouting up everywhere online, marking a shift in how people are using technology to create synthetic identities faster than ever.
That’s a wrap for another weekly edition of FrankonFraud.
Stay vigilant and fight fraud and scams wherever you can.