Finance Roadmap » Fraud

Fraudster’s getaway on last minute bookings

David Allen — Thu, 28 May 2009 04:00:12 +0000

For credit card fraudster to succeed they rely on the credit card being valid and that the system does not pick it up, otherwise all of the illegal work would have been for nothing.

There is a growing sector for credit card fraud where the credit card and the fraudster are able to get away, literally!

The airline industry is suffering from the current financial crisis and therefore have many seats left over on scheduled flight, so therefore these have to be sold at the last minute and this is where the credit card fraudster steps in.

The fraudster knows that if a ticket is booked well in advance there is the chance of it being cancelled, but a last minute booking is different, the fraudster can then get away from it all or sell the tickets on for a profit.

Source [UK Net Guide]

Online fraud scares consumers

David Allen — Wed, 13 May 2009 04:19:22 +0000

Although it may seem from the figures that are often released online sales are on the rise, so that would mean that the average consumer would be ok with conducting their business online. Not necessarily so, because in a recent survey it has been found that a third of internet users are not happy to buy online.

It is the actual process of buying that puts fear into consumers, the shopping is fine, going through the process is fine too, but when it gets to the part where they have put their credit card details into the fields provided, this is where they stop.

The report from the Office of Fair Trading shows that thirty per cent of online consumers have a distinct lack of trust of websites and fear that their details will be used in fraud activities.

Source [Daily Mail]

Hackers find how to steal PIN numbers

David Allen — Thu, 16 Apr 2009 04:25:42 +0000

It used to be that hackers who wanted o steal PIN numbers would have to do this one by one; this would normally mean that they would have to use skimming, cameras fitted to ATM machines or by phishing attacks.

However, in the US it has been found that when a PIN number in entered the data is transmitted to the bank, this is encrypted and therefore believed to be ultra safe. Yet it seems that hackers have been able to decrypt these transmissions and therefore manage to collect PIN number wholesale.

If this is true and there is no reason to think that it is not, then this could be another serious flaw within the banking system and could affect the way that people go about doing their shopping and paying for other services.

Source [Wired]

Banks caught up in a fraud

David Allen — Wed, 17 Dec 2008 07:49:02 +0000

Some of the largest names in the banking world have been caught up in massive $50 billion fraud; this has led to the person behind it, New York financier, Bernard Madoff on serious fraud charges.

Once again, some familiar names within the banking industry are listed as being involved in this fraud.

HSBC $1 billion
Royal Bank of Scotland $600 million
Santander $16 million

The fraud, which has been described as a massive pyramid scheme, has attracted a wide range of private investors too; the fraud was based out of his investment advisory business.

As if the banking sector had not been hit enough times over the last year, to have this come to light now really means that confidence in the banking industry and the people who are running the banks too.

The company has lost $50 billion, although the company had assets of between $200 and $300 million, which Madoff wanted, distributed to employees and family.

Source [CNN]