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The Future Is Now And The Fraud Analyst Is Cooler Than Ever 😎
Frank McKenna
June 27, 2023
Hello from FrankonFraud,
Summer is in full swing, and many of us are busy planning summer vacations with our families.
We all need a break from the never-ending madness of fraud, don’t we?
This week we saw
FedEx was accused of massive odometer fraud.
Another unbelievable fake account scandal emerged.
A founder was called the King of Magic Numbers.
Plaid launched a fraud network.
A fraudster gets 600 nights free at a luxe hotel.
A super cop takes on identity thieves.
A TikToker gives dumb fraud advice level Mach 10.
A busy week, as usual; let’s get to the week's top stories!
FedEx Is Being Accused Of What Could Be Largest Odometer Fraud Case Ever
This may be the largest odometer fraud case in history. FedEx and auto dealer Holman Automotive are accused of systematically rolling back or replacing odometers on potentially thousands of old trucks and then selling those trucks at inflated sales prices.
FedEx used to destroy their trucks after the trucks hit 350,000 miles. But starting ten years ago, they figured they could make money by reselling the trucks at auction.
Somewhere along the line, someone at the company started replacing the odometers and selling the trucks at auctions without disclosing the real mileage.
The Future Is Here - Meet The New Fraud Analyst 2024
Spatial computing and Apple’s new Vision Pro have opened my eyes to the next generation of fraud analysts.
The future is now. And yes, it’s full of exciting Ai.
But it is also impressively, awesomely human. And I love it 🤩 ✨.
Imagine a world, where all information is available to a fraud analyst at their fingertips, and they interact with it through gestures and commands. We’ve seen this before, right?
This world is not far away, and in as little as a year, fraud analysts could be working like this in some capacity. If we believe it, we can achieve it.
Another Fake Account Ridden Startup Bites The Dust - 95% of Accounts Were Bots
Remember 2021 when every startup was seemingly worth a billion dollars? My oh my, how times have changed, and some of those companies were engaged in fraud - first, there was NS8, then Frank the financial aid startup, and now the high-flying messaging app -IRL
Two years ago, the social messaging app IRL claimed to have 20 million active users and raised over $200 million from investors.
Even Softbank invested in their Series C and pushed the company's valuation to $1.7 Billion, making them one of the famed Unicorns of 2021.
Fast-forward to today, and they are shutting down, admitting that 95% of the users were “automated or from bots,”. This was reported by The Information last week.
Can you hear all that investor money sucking down the drain? So many fraud fighters knew this startup's silly money was going to lead to fraud, and here it is.
The CEO and Founder, Abraham Shafi, was fired about a month ago for misconduct.
A Heist Worth Billions - The Vicious Cycle Of Check Fraud
An investigation by The Conversation in coordination with David Maimon has found criminal gangs are using sham bank accounts and secret online marketplaces to steal from almost anyone – and little is being done to combat the fraud.
The investigation highlights the vicious cycle of check and bank fraud sweeping the United States. From robbery of postal carriers, to check fraud, to money mules, there is no end in sight.
This is the most comprehensive view into the dark underbelly of fraud, and a must-read for any fraud fighter.
Pick Numbers That Look Fantastic! She Was The Queen of Magic Numbers
You certainly know Charlie Javice, the young entrepreneur that allegedly conned Jamie Dimon out of $175 million.
Well, new court filings are shedding even more light into her fakery and it’s all caught on slack messages and text.
According to documents filed by Chase. While she was preparing to sell the company, she told her team to change Frank’s public-facing customer numbers, to state that Frank had 4.25 million student customers from 350,000.
Fraudster Checked Into Hotel For One Night, Then Stayed For 2 Years
His name is Ankush, and he may be the biggest freeloader on the planet.
He booked a room at Roseate House Hotel in Delhi on 30 May 2019 and was supposed to check out the next day.
But he extended his stay for 603 nights until 22 January 2021, leaving behind unpaid bills of over 5.8 million Indian rupees. That dude, Dutta, knows how to live large!
If you’re wondering how he did it, it appears to be an inside job - he bribed hotel workers to manipulate the internal software systems at the hotel to hide his stay.
One of the hotel staffers was identified as Prem Prakash, a front desk manager, who is suspected of taking small cash payments from the fraudster and then deleting the records showing that the fraudster owed nothing.
Plaid Goes Big On Fraud With Beacon - New Identity Network Solution
Another formidable solution vendor in the identity fraud world is emerging - Plaid.
This week they launched a new solution called Beacon that aims to create a mechanism that enables the verification of whether personally identifiable information has been abused, re-used, or recycled across platforms.
The identity space is red-hot 🔥 but extremely crowded, with so many players vying for business. How much appetite will banks have for yet another player in the space? That remains to be seen.
Even though Plaid is now entering the crowded identity network space, they are in the position to do very well and scale up quickly if they can get a critical mass of participants - something they have show to be very capable of doing in the past.
This Super Cop Doesn’t Mess Around With Fraudsters At Car Dealerships
Atlanta area car dealers are getting hit with a rash of identity thieves coming in to steal their cars.
There have at least three videos in the last week, and they showcase a cop that is emerging as a hero in the fight against fraud.
She doesn't mess around with the suspects despite any outlandish claims they make.
Viral Video - TikTok Influencer Tells People How To Get Free Rolexes With Fraud
This TikTok influencer thinks he’s got life all figured out and wants to tell you how to do the same. He is one of the many new ✌financial gurus ✌ that prey on people’s ignorance when he has no idea what he is talking about.
"I went and opened business credit cards in that account. I then proceeded to go and buy this [watch] for $100,000. I'm going to turn around and sell it to a jeweler for $80,000 in cash, which now gives me the cash. I'll file bankruptcy on the company."
His name is Greenthumbs (presumably because he knows how to grow money, and he has some bad advice for people - open up business cards, run them up, and then declare bankruptcy fraud because you are not responsible.
I had his video here for you to view, but he got so much backlash that he took it down. But you can still watch this Youtube video that explains all the hogwash he was putting out there.
What do you think of this idiot stick?
Cracking Back At Seller Fraud - New Law Starts Today
Sick of all the counterfeiting, fraud, and reselling of stolen stuff online? Well, a new law designed to crack down on shady third-party sellers on platforms like Amazon and eBay goes into effect today - The Inform Act.
It requires sellers with more than 200 transactions and $5,000 in revenue in a 12-month period to provide government IDs, tax IDs, bank account information, and contact information to large marketplace platforms such as Amazon, eBay, and Target.
I appreciate you all for catching up on the weekly stories and trends with me.
I want to extend a special thanks to Matt Meis, who was able to confirm that EMV Studio is, in fact, a pretty sketchy site. It was registered recently in Russia, and there appears to be no real legit use of the software.
Thanks for reading and have a great week fighting fraud!