Rex Ellison’s Post

On December 11th the SEC filed the attached complaint regarding three Nigerian scammers who were impersonating FINRA-registered financial advisors. Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze have also been charged criminally in New Jersey for Wire Fraud, Conspiracy to commit Securities Fraud, Aggravated Identity Theft, Conspiracy to commit Wire Fraud and Conspiracy to commit Identity Theft. (SEC Press release: https://lnkd.in/ekE_qAmW ) (DOJ Press release: https://lnkd.in/eK2ZN5ih ) (Indictment from DOJ here: https://lnkd.in/eNXNjAfq ) 22 Financial Advisors had websites created that used the format FirstNameLastName.tld where they used the likeness and name of real financial investors working for major investment firms and financial institutions. On those pages, there was a link allowing the user to click to be taken to the FINRA BrokerCheck page, which confirms that the person indicated in the scam website is in fact a registered broker. The role of those fake "registered brokers" was to drive traffic to a set of investment websites where they were told they could earn between 15% and 25% per month in their investments. The domains mentioned below are listed in the SEC complaint attached, including: AlphaCryptoFund/.com and /.io CopyTradeApp/.com and /.io InstaForexService/.com (40 clones of this site currently live) LumenTrades/.com SecaWallet/.com WealthWindow/.io MyNuvOakOnline/.com In the complaint and indictment, at least 28 investors (23 from the US) lost a combined $2.9 Million in these scams. The clones of the InstaForexService website have links to install from the Apple App Store (now dead), the Google Playstore (just reported), and a local Windows app. (VirusTotal link: https://lnkd.in/eaehrjRg <= currently detected as malicious by three vendors.) #FINRA #SEC #DOJ #Forex #CryptoScam #Nigeria

🛑 Today’s Fraud Focus: Pig Butchering Scams One of the most alarming scams I’ve seen gain traction in 2024 is the Pig Butchering Scam — and trust me, it’s getting more sophisticated than ever. The term “pig butchering” might sound odd, but it’s disturbingly fitting. Scammers use social media or dating platforms to build fake relationships, often over weeks or months. They “fatten up” their victims by gaining their trust and then coax them into bogus investment schemes, usually related to cryptocurrency or foreign markets. The fraudsters promise incredible returns, urging their targets to keep investing more. But once they’ve drained all they can, they disappear, leaving victims high and dry. What’s different in 2024? I’ve been noticing that these scammers are getting craftier. They’re now using deepfake videos and realistic voice calls to make their stories more convincing. It’s no longer just a text message scam — they’re leveraging technology to seem even more trustworthy. What can we do to stay safe? 1. Be skeptical of any online investment advice, especially if it’s coming from someone you’ve never met in person. 2. Never send money or personal information to someone you’ve only talked to online, no matter how trustworthy they seem. 3. Set up alerts on your bank accounts to catch suspicious activity early. 4. Talk to your friends and family about these scams. The more we share, the harder it is for fraudsters to catch us off guard. Let’s use Fraud Awareness Week to look out for each other. Have you seen anything suspicious or fallen victim to these kinds of schemes? Share your stories below. The more we talk about it, the more we can help protect each other! 💬 #FraudAwareness #FraudPreventionWeek #StaySafe #FraudTrends2024 #ScamPrevention

Great insights from Lucie Rehakova, CAMS on #purchasescams and fraudsters seizing the opportunity around key events like the Euros ⚽ to make 💰 (Taylor Swift tickets was also a big one we saw 🎶) Some important reminders for firms on these frauds ⬇️ 🟠 SO MUCH UNREPORTED FRAUD From what we see, nearly half of purchase scams go unreported. 🟠 IT TAKES ONE WEEK TO KNOW The average time a victim waits before reporting a scam is a week (e.g. they wait to receive a product and start escalating to the seller first). 🟠 IT TAKES A MATTER OF DAYS AND THEY’RE GONE… Perpetrators use an account for an average of 2-3 days before withdrawing the defrauded money.  #appfraud  #machinelearning  #fraudprevention

💰 Wells Fargo is issuing a warning to US bank customers as new numbers shed light on the amount of fraudulent transfers hitting Americans’ bank accounts. In a new op-ed, Wells Fargo fraud expert Margarita Alvarez says imposter scams are on the rise, with $2.7 billion lost in 2023, according to the Federal Trade Commission (FTC). Imposter scams utilize a wide variety of techniques to steal cash, including fake payment app requests, phony bank alerts and phone calls, and scams involving the cloned voices of friends and family members. 👉🏽 To avoid becoming a victim, Alvarez recommends customers use two-factor authentication and official bank app alerts, while remaining extremely vigilant and cautious about unsolicited requests for money or sensitive details. #wellsfargo #banks #fraud #scams #money

The Evolve data breach may be much worse than it appears. It could even lead to fraudsters draining accounts at *non-Evolve* banks. Here's how: Unlike most breaches, the Evolve breach reportedly contains customer PII as well as ACH credentials (account and routing number) for non-Evolve banks. For example, Jane Doe together with her account and routing number at First Main Bank. If this is true, a fraudster could steal Jane's identity, open an account in her name with Second Main Bank, and link her account at First Main Bank. Second Main Bank will do an account ownership check with EWS, see that Jane owns the account at First Main Bank, and allow her to link it. The fraudster can then pull and steal funds from Jane's actual account at First Main Bank. Now, as the ODFI Second Main Bank will be liable for this but talk about a nightmare situation for Jane and both banks... https://lnkd.in/eK2qBQYJ

Happy Tuesday! Bank fraud is a serious crime that undermines the financial system and erodes trust in banking institutions. It can take many forms, including identity theft, credit card fraud, and phishing scams. The consequences for victims can be significant, leading to financial loss and emotional distress. Banks typically implement various security measures to combat fraud, but as technology evolves, so do the tactics used by fraudsters. It highlights the importance of consumer vigilance, education, and the need for continuous improvement in security protocols. Addressing bank fraud requires collaboration between financial institutions, law enforcement, and individuals to protect sensitive information and mitigate risks. #bankfraud #fraudprevention

"A major problem specific to counterfeits is that banks have just 24 hours to contact and return a bad check to the bank of first deposit. If the paying bank misses the 24-hour window, it ends up eating the loss, under banking rules specific to counterfeit checks." With the dramatic increase in cybercrime, many law firms and title agents are going back to sending paper checks overnight. The real solution requires a software that can verify individuals and bank accounts. Please message me if you are interested in our solution: Secure My Transaction #agentsfirst #realestatebusiness #cyberfraud #cybercrime

It is completely ridiculous that, many years after it was normal elsewhere in the OECD, our banks cannot provide a payee confirmation service to prevent fraud. This really is investor protection 101. And why don’t we have it? Because in the abscence of proper regulation, banks have prioritised huge profits over providing this most basic and robust investor protection. I completely agree with Janine, the Government has to act, and swiftly. No one else can. ‘Starting’ payee confirmation by the end of this year, as the banks have indicated, is a joke. It should be fully operational within 3-6 months. Leaving to the banks to do themselves risks repeating the farce that has been Open Banking self regulation. Ten years later, we are still waiting….. Banks, supermarkets, building materials- the examples keep coming of light handed (and, in this case, totally absent) regulation really costing the average Kiwi family. And when it’s a cartel and oligopoly serving up the goods and services, the market simply doesn’t work without strong regulators stamping on any extractive behaviours.