- FrankonFraud
- Posts
- 🤖 Major Bank Deploys 10,000 AI Fraud Fighters
🤖 Major Bank Deploys 10,000 AI Fraud Fighters
Frank McKenna
July 01, 2025
Hey fraud fighters! 🛡️
What a week.
The DOJ broke up the biggest identity theft medicare ring in history. However, a little-publicized fact went unnoticed: over 1 million stolen identities were used in the scheme. That might be the most significant identity theft by a fraud ring in history!
Let’s get to the top stories this week.
Fraud News Roundup 🗞️
1 Million Identity Thefts - Foreign straw owners purchased dozens of medical supply companies and then used over 1 million stolen identities to file false Medicare claims. This is likely the most significant identity theft case in history. Read More
Fraud Leads To Bank Failure - A fraud so big that it takes out an entire bank? Yes, that happened last week. The OCC took over a small bank in Texas, but the mysterious fraud has not been revealed yet. They swooped in when bank assets dropped rapidly from $77 million to $64 million in a month. Read More
850,000 Mule Bank Accounts - Indian authorities launched a sweeping raid across 45 cities, dismantling a cyberfraud network tied to a massive trove of bank accounts used to launder scam money. Read More
Cyberattack Shutdown at Bank- Monticello Bank experienced a worst-case scenario after being cyberattacked. They were forced to turn off online services, ATM’s and mobile banking to protect customer data. Read More
Triple Dipping Employee Busted - A government employee worked for 3 different agencies at the same time. She pulled it off because each position was remote. She netted $226k from her charade. Read More
US Bank Accounts for Rent - An investigative report details how scammers are renting US bank accounts to launder money, including one network tied to 176 Bank of America accounts at the same home address. Read More
Bankers Pig Butchering Crypto Recovered - It turns out that the Feds were able to recover most of the money he lost, he was one of 434 victims they recovered money for. Read More
The $2 Million HELOC Fraudster - A Nigerian targeted credit union customers' home equity by employing an army of “managers” who would crisscross the country impersonating customers. Read More
New WhatsApp Bank Scam - Scammers never stop. Now, they have developed a new WhatsApp screen-sharing exploit that enables them to spy on the victim’s bank account details. $3 million has already been lost in Singapore. Read More
Deepfake Audio Used In Election - Fake AI audio of Rep John Waldron was used in an election in Oklahoma, creating a political storm in the state. Read More
A Quarter Of A Billion In Fraud Apps - The largest known COVID tax fraud scheme was busted last week. Members of a fraud ring were charged with filing fraudulent claims on behalf of 148 different companies and taking a 40% cut of the proceeds. Read More
The Dubai QR Scam Ring - Investigative journalists uncover the international crime syndicate behind millions in QR code scams that have swept over the UK. Read More
London Police Warn of SMS Blasters - Police are finding an increasing number of scam machines roaming the city and are alerting Londoners to be on guard. Read More
Airlines Under Attack - The FBI warns that Scattered Spyder has shifted its targets and is now targeting airlines for ransom. This could mean some travel disruptions. Read More
State Farm Whistleblower - A whistleblower claims that State Farm is underpaying consumers on their auto fraud claims by using a hidden and closed system that consumers are unaware of. Read More
Bank Unleashes An Army Of Over 10,000 AI Bots To Take On Scammers
Australia’s largest bank, Commonwealth Bank, just launched 10,000 AI Fraud Fighting Bots and over 25,000 AI Chatbots in the largest assault on scammers yet.
Working with Apate.AI, they created thousands of dedicated phone numbers that were distributed on websites, scam applications and across the internet which act as honeypots to lure scammers in.
When the scammer dials one of the honeypot phone numbers, they are connected to an AI bot that communicates with them and wastes their time.
The bank deployed the bots in pilot in 2024 and has now diverted “hundreds and thousands” of scam calls.
TD Bank’s Manager Opened Over 170 Accounts For Fraudsters And Money Launderers
For $250, you could send Jhonnatan Rodriguez your documents, and he would open an account for you, helping you bypass all the banks' identity controls. And that’s exactly what he did hundreds of times, scoring about $37,000 in fees.
The accounts he opened were tied to massive check fraud schemes and money laundering operations originating from Colombia.
Credit Union’s Auto Loan Fraud Close To Triples
Recent analysis by Point Predictive reveals that fraud losses on Credit Union’s auto portfolios are rapidly increasing, rising from $190 million in 2022 to over $581 million in 2024. Over the last 3 years, credit unions have lost over $1 billion in fraud on their auto portfolios.
The culprit? Rising first-party fraud. Income and Employment fabrication, followed by synthetic identities, are the top three types of fraud, often tied to credit repair companies that coach borrowers on how to defraud credit unions.
You can get access to the Webinar video on Point Predictive’s findings for credit unions below
North Koreans Target Small Business and Steal $1 Million in Crypto
Marlon Williams believed he had found the perfect remote worker when "Pemba Sherpa" contacted him on Telegram in August 2020. Williams was looking for a skilled developer for his Atlanta-based small business, Starter Labs.
However, Sherpa was Kim Kwang Jin, a North Korean cybercriminal who used a stolen Portuguese identity. For 20 months, Williams paid him and his other North Korean associates close to $400,000 in wages. During that time, they repaid his trust by stealing more than $740,000 in cryptocurrency.
Worldline Fraud Scandal: Payment Giant Accused Of High-Risk Merchant Cover-Up
Worldline is one of the largest payment processors in the world, and it has acquired a significant number of high-risk, fraudulent merchants over the years.
Last week, its stock plummeted over 41% when an investigative journalist accused it of hiding high-risk merchants with high fraud and chargeback rates by using a technique called “division shuffling,” where they simply transferred fraudulent merchant groups between divisions to evade regulatory scrutiny.
Dark Rooms, Trafficked Children, and Corruption In Cambodia’s Scam World
An explosive 242-page report released by Amnesty International reveals some shocking facts about Cambodia’s scam operations, including the fact that children as young as 14 are now being recruited to scam. Dark room “torture chambers” are used to punish, or even kill, victims, and the Cambodian government facilitates it all.
This is one of the most comprehensive reports ever on the matter.
Face-Swap Nightmare: How Stalker Used AI to Terrorize His Ex-Girlfriends And Their Families
A man in Ohio went to great lengths to cyberstalk his ex-girlfriends and their families, turning to Artificial Intelligence to help him.
Using deepfake nudify apps and other AI he created fake sexual images of at least 10 women, sending it to their mothers, co-workers and anyone else he could manipulate. This case of AI harassment is about as disturbing as any you will read.
The Million Dollar Carwash - How A Sophisticated Chop Shop Stole Rental Cars
A fraud ring figured out a way to steal rental cars, turn them into ghost vehicles by creating synthetic VINs, and then sell them over and over again to unsuspecting buyers.
Special thanks to Hailey Windham for tips this week.
Got a tip? Please send me your breaking news about fraud so I can share it with others.
FrankonFraud