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  • Fraud Analyst Helped Take Down This "Fraud Protection" Company 🧐

Fraud Analyst Helped Take Down This "Fraud Protection" Company 🧐

Author

Frank McKenna
December 19, 2023

Staged robberies for fraudulent visas, a fraud prevention company that was a sham, a star goes to jail for using a CPN… It's just another weird week in fraud.

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Here are the top snippets in fraud right here 👇️ 

Let’s dive into the more interesting stories

This “Fraud Protection Company” Was A Sham Then Fraud Analysts Stepped In

CBSurety touted itself as a "Chargeback Fraud Protection Company, but they were anything but that.

Karisse Hendrick and I dove into how the DOJ claims this company operated this weekend, and it’s a doozy. 🥴 

Their business model was simple: 👉️ Onboard high-risk merchants, process activity from those risky merchants through fake low-risk merchant accounts, and finally, keep the fraud rate low by submitting thousands of fake microcharges. Voila - mission accomplished.

It might still be happening if it wasn’t for astute fraud analysts from Elevon and Esquire Bank who caught on to the scheme.

One fraud analyst from Elavon pressed for proof of inventory from an e-commerce site he suspected to be fake. He was later proved to be right.

Is this the only company out there masquerading as a “Fraud Protection” company while they help scammers and high-risk merchants stay in business? Hardly, there are more but the DOJ has them in their crosshairs.

The Fraud Protection Company They Say Was Just A Sham

CBSurety touted itself as a Chargeback Fraud Protection Company, but they were anything but that.

Finally Someone Shut Down One Of These Fake Document Companies

How do all these fake doc companies stay in business when they clearly are aiding and abetting crime?

Well, in Colorado, the Attorney General just shut down a major one called PropDoks after they sold fake tax transcripts, fake child custody orders, and other official documents to an undercover investigator.

Oh, by the way, they also sold cpns too… 🙄 

Fake Document Company Banned From Creating Fakes

Colorado based PropDoks has been banned from creating the fake documents thanks to a lawsuit.

The Big Squeeze. Affordability Risk Looms Large For Auto Loan Fraud

Auto lenders are bracing for an uptick in fraud as affordability risk increases. That’s according to Point Predictive.

Here is the problem: The average car payment is now over $700. And with car insurance rates increasing 30% or more this year, many borrowers are paying $1,000 monthly for their cars.

That will push more borrowers and dealers to “get creative” in fabricating those income and employment documents this next year. Or.. worse yet, people will resort to more criminal methods like synthetics.

Fake Robberies Used To Get Fraudulent Visas

The Feds charged two men with an outlandish yet creative scheme to get fake Visas.

In an affidavit filed this week, the pair of men staged robberies all over Massachusettes. Based on surveillance footage, the F.B.I. concluded that the victims each paid $10,000 to be “robbed” in exchange for immigration “papers” and that store owners received $1,500 to $2,000 for providing venues for fake crimes.

U visas are granted under a 23-year-old law devised to help law enforcement agencies investigate and prosecute cases involving domestic violence, sexual assault, and human trafficking, among other crimes.

Fake Robberies, Fake Visas

Two suspects were charged in a case that spans four states and highlights vulnerabilities in a federal visa program for immigrants.

Santander Goes Nuclear On Facebook MarketPlace

If Facebook Marketplace can’t control the tsunami of scams on their platform, banks will have to do it for them, and that’s precisely what Santander did this week.

Starting now, anyone who tries to pay for an item on Facebook Marketplace using Santander’s online banking app will have their payment frozen unless they confirm they’ve seen the goods.

Hindenburg called this Massive Fraud months ago

Tingo is a massive fraud. And Hindenburg Research called it months ago in this research.

This week, the SEC is charging Dozy Mmobuosi, the CEO of Tingo Group, for fabricating financial statements. The scale of the fraud blows my mind 🤯. Tingo reported having cash and cash equivalent of $461.7 million for the fiscal year 2022, but their bank accounts held less than $50 in total.

NY Times - Shocking Expose Of Life Inside A Scam Compound

The New York Times goes deep inside scam compounds with an undercover operative Neo Lu, a 28-year-old Chinese office worker who passed on information to their reporters.

Mr. Lu slept in a room infested with earwigs and reeked of sewage gas. He shared it with seven other Chinese men in a compound where 70 scammers worked together.

The scam compounds are run like well-machined businesses driven by profits, spreadsheets, and violence.

This is life from inside the scam compound like you’ve never seen before.

Basketball Wives Star Reveals How She Used CPN, Now Heads to Jail for 4 Years

How many frickin times will people never learn? Hopefully, star Brittish Williams's story on the pitfalls of using CPNs will be a stark reminder that they are 100% illegal.

“I bought a CPN from a credit lady, and I don’t know if it was somebody’s actual social security number or something they created,” Williams elaborates. “I don’t know, but that’s where that came from.”

She will spend four years in the joint pondering how big a mistake that was.

Star Goes To Prison For CPN

Ahead of her four-year prison sentence, the reality star comes clean in Page Six’s exclusive preview of Carlos King’s “Reality with the King” podcast.

750 Million Fake Accounts For Sale

Crazy stat, right? Last week, Microsoft and Arkose Labs worked together to go after Storm-1152.

The Vietnamese hacking group created approximately 750 million fraudulent Microsoft accounts for sale, earning the group millions of dollars in illicit revenue.

They created the fake accounts by defeating the CAPTCHA process designed to block bots.

Turo Is Under Siege By Cybercriminals

Turo is an excellent little platform to rent your car, but it’s quickly becoming a hotbed of fraud and cybercrime.

This little video explains the biggest fraud money makers 💰️💰️ 

Free Sauce - 20 Scams With Stupidity Ranking From R-Jack

R-Jack has the cheat codes for life. A master in what he calls “scamformation,” he provides this in-depth look into the top scams and how they work.

R-Jack says he made the video to quench the youth's lust for scamformation to turn them towards legal ways to make money.

Creepy Marketing Company - Your Phone Is Listening To You

This marketing company claims your phone can listen to you and is helping companies build advertising on it. Creepy Level 10!

Creepy Marketing Co

“What would it mean for your business if you could target potential clients who are actively discussing their need for your services

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Thank you, all my fraud-fighting friends!