We have been hearing of bank fraud and other kinds of high-tech fraud but lets take an inner look into another kind of fraud which is ATM fraud.This has been rampant in African countries though it has not been given much publicity.this was especially in west African states with Nigeria being on the top note.
Of late this machine has become a neccesity in our lives since we find it very hard to walk with hard cash.Like I have always said "where there is money you can never miss a scam because people need to get money after all."
As with any device containing objects of value, ATMs and the systems they depend on to function are the targets of fraud.There eare different forms of fraud inline with ATMs
The first known instance is of having a fake ATM machine. A fake ATM was installed at a shopping mall in Manchester, Connecticut in 1993. By modifying the inner workings of a Fujitsu model 7020 ATM, a criminal gang known as The Bucklands Boys were able to steal information from cards inserted into the machine by customers.They used this information to access the victims accouynts and syphoned big backs from them.In kenya one man was nabbed by the police after being alerted by a guard manning ATMs that he had been withdrawing a lot of money for a long time.The man was foun with 120 ATM cards belonging to different individual.
In another case , a bank fraud could occur at ATMs where the bank accidentally stocks the ATM with bills in the wrong denomination, therefore giving the customer more money than should be . The result of receiving too much money may be influenced on the card holder agreement in place between the customer and the bank.Taking acse like this one where in Virginia Beach of September 2006 a hacker who had probably obtained a factory-default admin password for a gas station's white label ATM caused the unit to assume it was loaded with $5 USD bills instead of $20s, enabling himself—and many subsequent customers—to walk away with four times the money they said they wanted to withdraw.
ATM behavior can change during what is called "stand-in" time, where the bank's cash dispensing network is unable to access databases that contain account information (possibly for database maintenance). In order to give customers access to cash, customers may be allowed to withdraw cash up to a certain amount that may be less than their usual daily withdrawal limit, but may still exceed the amount of available money in their account, which could result in fraud.
some scammers use the queue to hijack customers pin numbers.They satnd back to back to make it easy for them to see the number then memorize it .
For a low-tech form of fraud, the easiest is to simply steal a customer's card. A later variant of this approach is to trap the card inside of the ATM's card reader with a device often referred to as a Lebanese loop. When the customer gets frustrated by not getting the card back and walks away from the machine, the criminal is able to remove the card and withdraw cash from the customer's account.
Another simple form of fraud involves attempting to get the customer's bank to issue a new card and stealing it from their mail.Some ATMs may put up warning messages to customers to not use them when it detects possible tamperingThe concept and various methods of copying the contents of an ATM card's magnetic stripe on to a duplicate card to access other people's financial information was well known in the hacking communities by late 1990
Back in the year 1996 Andrew Stone, a computer security consultant from Hampshire in the UK, was convicted of stealing more than £1 million (at the time equivalent to US$1.6 million) by pointing high definition video cameras at ATMs from a considerable distance, and by recording the card numbers, expiry dates, etc. from the embossed detail on the ATM cards along with video footage of the PINs being entered. After getting all the information from the videotapes, he was able to produce clone cards which not only allowed him to withdraw the full daily limit for each account, but also allowed him to sidestep withdrawal limits by using multiple copied cards. In court, it was shown that he could withdraw as much as £10,000 per hour by using this method. Stone was sentenced to five years and six months in prison.
By contrast, a newer high-tech method of operating sometimes called card skimming or card cloning involves the installation of a magnetic card reader over the real ATM's card slot and the use of a wireless surveillance camera or a modified digital camera to observe the user's PIN. Card data is then cloned onto a second card and the criminal attempts a standard cash withdrawal. The availability of low-cost commodity wireless cameras and card readers has made it a relatively simple form of fraud, with comparatively low risk to the scammers.
In an attempt to stop these practices, countermeasures against card cloning have been developed by the banking industry, in particular by the use of smart cards which cannot easily be copied or spoofed by unauthenticated devices, and by attempting to make the outside of their ATMs tamper evident. Older chip-card security systems include the French Carte Bleue, Visa Cash, Mondex, Blue from American Express and EMV '96 or EMV 3.11. The most actively developed form of smart card security in the industry today is known as EMV 2000 or EMV 4.x.
EMV is widely used in the UK (Chip and PIN) and other parts of Europe, tyhouigh the technology is yet to be embraced here in kenya ,but when it is not available in a specific area, ATMs must fallback to using the easy to copy magnetic stripe to perform transactions. This fallback behaviour can be exploited.However the fallback option has been removed by several UK banks, meaning if the chip is not read, the transaction will be declined.
From an FBI report In February 2009, a group of criminals used counterfeit ATM cards to steal $9 million from 130 ATMs in 49 cities around the world all within a time period of 30 minutes.
Card cloning and skimming can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process. This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.
Another ATM fraud issue is ATM card theft which includes credit card trapping and debit card trapping at ATMs. Originating in South America this type of ATM fraud has spread globally. Although somewhat replaced in terms of volume by ATM skimming incidents, a re-emergence of card trapping has been noticed in regions such as Europe where EMV Chip and PIN cards have increased in circulation.
This has been the security trend in the ATM fraud.but as technology takes its course, the scammesr make use of it to make easy kill.so better watchout!!.
Thursday, June 10, 2010
Saturday, May 22, 2010
MOTOR SCAM!!! AVOID IT
In the current world.You have experienced massive traffic build up on our roads.This is to indicate that nearly every citizen of any country is aspiring to buy a car or has bought a car.In this context I have to admit that scam has not been an exception in this industry.
In our modern life it’s almost impossible to function without one and it’s expensive to acquire, to finance and to maintain.So when somebody cames to take away what you have worked for ,It is very painful this is why I have to worn you and direct you on how you can go about on purchasing your new machine.
YOU HAVE TO KNOW THE BEST TIME FOR BUYING YOUR MACHINE
There are two "best times" to buy a car. The end of December is a good time for car buyers to buy a new car. Everyone is out buying Christmas gifts, leaving new car dealer lots void of customers, motivating dealers to cut costs, and break year end sales records. Another good time to buy a car is July to October as new car dealers sell off cars at low prices to clear space for new car models. Secret factory to dealer incentives can be $1000-$6000 in addition to new car consumer rebates!
HOW TO GET THE PRICES CORRECT
Invoice price – what the dealer pays the manufacturer – has become the real negotiating point. Allowing for the dealer's need to make a profit, the price you pay should be somewhere between sticker and invoice.
Virtually all car buying sites on the Internet show invoice and in most cases their buying tools automatically add option/package invoice amounts as you work your way through the process.
Any car buyer, with very little effort, can get an accurate summation of a car's value, which immediately puts him or her in a stronger negotiating position.
THE TRICKS DURING NEGOTIATIONS
After you made your research via the Internet, it’s important you make some phone calls to car dealers and ask for some written offers to be sent to you via the fax or email for the car of your dreams. That way, you can compare prices between several dealers without being pressured by a salesperson.
You would be much better off selling your old car yourself rather than to trade it in through the dealer because the dealer will have to earn some money on it as well.
Remember, everything is a negotiable, car too. Buying a new car is tricky from the moment you step into the car dealership arena, you might be manipulated by scam artists, well trained sales persons that will use every trick in their fat book of tricks to extort every last Dollar out of your bank account.
There is one well known trick they teach in car dealers sales courses, it’s called “throwing a lowball”, in this tactic a customer is offered a very good price on a car, Perhaps as much as $500 below competitors prices. The good deal, however, is not genuine, its only purpose is to cause a prospect to decide to buy at this dealership and not from the other dealers. Once the decision is made a raft of purchase forms are filled out, extensive financial terms are arranged. The dealer knows, customers develop a range of new reasons to support the choice they have now made.
Then something happens. All of a sudden an “error” in the calculations is discovered, It might be the salesman forgot to add in the cost of the air conditioner and if the customer insists on having it, then $500 must be added to the price...
The cover up operation is played sophistically, some times they let the bank handling the financing find the “mistake”, other times the boss is not approving the deal because “we’d be losing money”. They make it look as if it’s not that big mistake as it’s a relatively small percentage of the price of the car and as they stress out it only brings it to be equal to competitors.
The impressive thing about the lowball tactic is its ability to make a person feel pleased with a poor choice. If anyone tries to change the originally-quoted terms or talk you into buying a different vehicle, just say "no" and go somewhere else.
I Until all the papers have been signed there are still ways in which a shrewd dealer may add to his profit by talking you into extras you don't want and probably don't need. These can include added and overpriced insurance, extended warranties, rust proofing (absolutely unnecessary), paint or fabric protection, anti-theft plans, and more. Smile and firmly turn them all down.
Finally, before you drive away, do a careful inspection of the car, looking for scratches or dents; anything that mars the perfect finish. If you're not happy, get a written agreement (known as a Due Bill). It means you have the right to later return the vehicle in order that flaws can be corrected.
I guess ypu know have the resource and knowledge to help you get your new machine.
In our modern life it’s almost impossible to function without one and it’s expensive to acquire, to finance and to maintain.So when somebody cames to take away what you have worked for ,It is very painful this is why I have to worn you and direct you on how you can go about on purchasing your new machine.
YOU HAVE TO KNOW THE BEST TIME FOR BUYING YOUR MACHINE
There are two "best times" to buy a car. The end of December is a good time for car buyers to buy a new car. Everyone is out buying Christmas gifts, leaving new car dealer lots void of customers, motivating dealers to cut costs, and break year end sales records. Another good time to buy a car is July to October as new car dealers sell off cars at low prices to clear space for new car models. Secret factory to dealer incentives can be $1000-$6000 in addition to new car consumer rebates!
HOW TO GET THE PRICES CORRECT
Invoice price – what the dealer pays the manufacturer – has become the real negotiating point. Allowing for the dealer's need to make a profit, the price you pay should be somewhere between sticker and invoice.
Virtually all car buying sites on the Internet show invoice and in most cases their buying tools automatically add option/package invoice amounts as you work your way through the process.
Any car buyer, with very little effort, can get an accurate summation of a car's value, which immediately puts him or her in a stronger negotiating position.
THE TRICKS DURING NEGOTIATIONS
After you made your research via the Internet, it’s important you make some phone calls to car dealers and ask for some written offers to be sent to you via the fax or email for the car of your dreams. That way, you can compare prices between several dealers without being pressured by a salesperson.
You would be much better off selling your old car yourself rather than to trade it in through the dealer because the dealer will have to earn some money on it as well.
Remember, everything is a negotiable, car too. Buying a new car is tricky from the moment you step into the car dealership arena, you might be manipulated by scam artists, well trained sales persons that will use every trick in their fat book of tricks to extort every last Dollar out of your bank account.
There is one well known trick they teach in car dealers sales courses, it’s called “throwing a lowball”, in this tactic a customer is offered a very good price on a car, Perhaps as much as $500 below competitors prices. The good deal, however, is not genuine, its only purpose is to cause a prospect to decide to buy at this dealership and not from the other dealers. Once the decision is made a raft of purchase forms are filled out, extensive financial terms are arranged. The dealer knows, customers develop a range of new reasons to support the choice they have now made.
Then something happens. All of a sudden an “error” in the calculations is discovered, It might be the salesman forgot to add in the cost of the air conditioner and if the customer insists on having it, then $500 must be added to the price...
The cover up operation is played sophistically, some times they let the bank handling the financing find the “mistake”, other times the boss is not approving the deal because “we’d be losing money”. They make it look as if it’s not that big mistake as it’s a relatively small percentage of the price of the car and as they stress out it only brings it to be equal to competitors.
The impressive thing about the lowball tactic is its ability to make a person feel pleased with a poor choice. If anyone tries to change the originally-quoted terms or talk you into buying a different vehicle, just say "no" and go somewhere else.
I Until all the papers have been signed there are still ways in which a shrewd dealer may add to his profit by talking you into extras you don't want and probably don't need. These can include added and overpriced insurance, extended warranties, rust proofing (absolutely unnecessary), paint or fabric protection, anti-theft plans, and more. Smile and firmly turn them all down.
Finally, before you drive away, do a careful inspection of the car, looking for scratches or dents; anything that mars the perfect finish. If you're not happy, get a written agreement (known as a Due Bill). It means you have the right to later return the vehicle in order that flaws can be corrected.
I guess ypu know have the resource and knowledge to help you get your new machine.
Tuesday, May 18, 2010
REAL ESTATE SCAM DISCOVERED!
I have been looking at the world business trend in real-estate industry and am appalled at how so many scam have just risen from this sector.It is true that where there is more money flow , fraud is inevitably lucrative.
Now you can get some of this hints on what is happening in this world of scam.
One of the most common cases of real estate scam I have seen are forgeries by spouses and family members,A husband may use his girlfriend--who is posing as a wife and has intercepted the wife's credit cards as identification--to take over a piece of land."
It may not just be family members, either. A large percentage of real estate fraud is perpetrated by trusted individuals whom victims know socially or have already done business with in the past. Confidence men are thus known because they gain the confidence of their victims.
People are often impressed by shows of affluence--a self-confident person with a beautiful car who is selling a product that seems too complicated to understand and too good to be true.The thing I hear most often from clients is, 'I never would have thought this guy would do this! I trusted him like a brother.'"
Another common way to rip off property owners happens without the owners' active participation. Any undeveloped land or unoccupied or recently inherited homes are prime targets for forged deeds, say experts. The deed to the land can be illegally obtained and resold by the fictitious owner or used as collateral for large loans.
"You see a lot of forgeries done on unoccupied property,It's easy to bring in appraisers and nobody is suspicious, and the [thief] can pose as the owner."
In one case in , a fraudster reportedly made off with $4 million by forging all kinds of property loans and sales. He was discovered only after one lender drove by one of the properties he had a mortgage against and saw strangers living in it. After the lender looked the property up in county records, he found the home had been illegally sold without his knowledge.
Since most mortgage lenders require title insurance, the insurer would have to pay for the losses, rather than the homeowner. Still, in the same way one might prevent credit card fraud or any other scheme, this can be avoided to some extent by regularly checking one's credit report and making sure there aren't any unknown outstanding debts or loans. And definitely don't buy property on the moon.
In the current world ,it is very easy to find that you are buying something that is not there.SO always take care not to fall into the pit of scammers because they are ready to do business with your hard earned cash.
Now you can get some of this hints on what is happening in this world of scam.
One of the most common cases of real estate scam I have seen are forgeries by spouses and family members,A husband may use his girlfriend--who is posing as a wife and has intercepted the wife's credit cards as identification--to take over a piece of land."
It may not just be family members, either. A large percentage of real estate fraud is perpetrated by trusted individuals whom victims know socially or have already done business with in the past. Confidence men are thus known because they gain the confidence of their victims.
People are often impressed by shows of affluence--a self-confident person with a beautiful car who is selling a product that seems too complicated to understand and too good to be true.The thing I hear most often from clients is, 'I never would have thought this guy would do this! I trusted him like a brother.'"
Another common way to rip off property owners happens without the owners' active participation. Any undeveloped land or unoccupied or recently inherited homes are prime targets for forged deeds, say experts. The deed to the land can be illegally obtained and resold by the fictitious owner or used as collateral for large loans.
"You see a lot of forgeries done on unoccupied property,It's easy to bring in appraisers and nobody is suspicious, and the [thief] can pose as the owner."
In one case in , a fraudster reportedly made off with $4 million by forging all kinds of property loans and sales. He was discovered only after one lender drove by one of the properties he had a mortgage against and saw strangers living in it. After the lender looked the property up in county records, he found the home had been illegally sold without his knowledge.
Since most mortgage lenders require title insurance, the insurer would have to pay for the losses, rather than the homeowner. Still, in the same way one might prevent credit card fraud or any other scheme, this can be avoided to some extent by regularly checking one's credit report and making sure there aren't any unknown outstanding debts or loans. And definitely don't buy property on the moon.
In the current world ,it is very easy to find that you are buying something that is not there.SO always take care not to fall into the pit of scammers because they are ready to do business with your hard earned cash.
Monday, May 17, 2010
TOP MOST INTERNET SCAMS BE WARE!
A good picture to catch your eye. Number one strategy.
There are many people out there who are looking for ways to generate earnings everyday.Some think in the positive way and yet others are on the contrary.The big issue here is that everyday we are always on a carpet of silver and gold but we are unable to just bend and pick them up.
Watchout least you be one of their prey
In Kenya people think online business is all but scum I have to put something to help you think positive that there is no scum unless you just want to be scummed yourself.There are a lot of opportunities online This includes marketing,sales consultancy services, surveys.and so many more.
you have seen people coming up with websites shouting in bold letters “MAKE RAPID MONEY IN 24HOURS.”"THE INTERNET CASH MACHINE” and so many more.The fact is , there is no easy task in making money.You have to plant for you to reap well.You find that most of the sites saying this actually are in the line to attract you to buy some goods from them. If you are not careful you end up in fire.
If you are into survey as your online business as a way of supplementing your job then please just do your homework very well so that you don’t fall in a scum.always watch out for something that looks so good to be true.Remember there is nothing for free.
the scams hand
According to PC world there are five main online scams that you are supposed to be aware of.
Complaints about online fraud nearly doubled from 2003 to 2004, according to a December 2004 report by the FBI and the National White Collar Crime Center. Research firm Gartner estimates that nearly 10 million Americans were hit by online fraudsters last year–largely due to a wave of phishing e-mails seeking to steal users’ identities. In fact, phishing attacks seem to be the new, hot scam. Scammers send you an e-mail that tries to lure you to a legitimate-looking Web site where you’ll be asked to enter personal information. The thing is, it’s all fake; and if you fall for it, someone is ready to take your Social Security Number and start opening credit card accounts.
The FBI recently began warning people of scammers posing as tsunami-relief organizations. And late last month, the FBI warned that someone out there was even posing as the FBI itself–sending a fraudulent e-mail with the subject line “FBI Investigation” and trying to lure people into buying products from a separate, fictional scam artist whom the Feds were supposedly on to.
Confusing? Sure. But just ask yourself this: When was the last time the FBI sent a polite e-mail when they wanted someone’s cooperation in an investigation?
Thousands of con artists, grifters, fraudsters, and other denizens of the dark are trolling for victims online. Can you recognize online fraud when you see it? Here’s a quick guide to the Top 5 scams and schemes you’re most likely to find on the ‘Net.
do not enter its risky!
The setup: Online auction fraud accounts for three-quarters of all complaints registered with the FBI’s Internet Crime Complaint Center (formerly the Internet Fraud Complaint Center). There are many types of eBay chicanery, but the most common one is where you send in your money and get nothing but grief in return.
What actually happens: You never get the product promised, or the promises don’t match the product. The descriptions may be vague, incomplete, or completely fake. One scammer accepted bids for Louis Vuitton bags that she didn’t own, and then scoured the Internet looking for cheap knockoffs that cost less than the winning bid. She managed to collect at least $18,000 from bidders before she got nailed. A buyer thought he’d purchased a portable DVD player for $100, but what he got instead was a Web address for a site where he could buy a player for a $200 discount. The stories are virtually endless.
The risk: You get ripped off, losing time and money. If you spill the beans about the scam, the seller may retaliate by posting negative eBay reports about you using phony names.
The question you’ve gotta ask yourself: Who in their right mind would sell a $200 bag for $20?
2. Phishing Scams
The setup: You receive an e-mail that looks like it came from your bank, warning you about identity theft and asking that you log in and verify your account information. The message says that if you don’t take action immediately, your account will be terminated.
What actually happens: Even though the e-mail looks like the real deal, complete with authentic logos and working Web links, it’s a clever fake. The Web site where you’re told to enter your account information is also bogus. In some instances, really smart phishers direct you to the genuine Web site, then pop up a window over the site that captures your personal information.
The risk: Your account information will be sold to criminals, who’ll use it to ruin your credit and drain your account. According to Gartner, phishing scammers took consumers (and their banks, who had to cover the charges) for $1.2 billion in 2003.
The question you’ve gotta ask yourself: If this matter is so urgent, why isn’t my bank calling me instead of sending e-mail?
3. Nigerian 419 Letter
The setup: You receive an e-mail, usually written in screaming capital letters, that starts out like this:
“DEAR SIR/MADAM: I REPRESENT THE RECENTLY DEPOSED MINISTER OF AGRICULTURE FOR NODAMBIZIA, WHO HAS EMBEZZLED 30 MILLION DOLLARS FROM HIS STARVING COUNTRYMEN AND NOW NEEDS TO GET IT OUT OF THE COUNTRY…”
The letter says the scammers are seeking an accomplice who will transfer the funds into their account for a cut of the total–usually around 30 percent. You’ll be asked to travel overseas to meet with the scammers and complete the necessary paperwork. But before the transaction can be finalized, you must pay thousands of dollars in “taxes,” “attorney costs,” “bribes,” or other advance fees.
What actually happens: There’s no minister and no money–except for the money you put up in advance. Victims who travel overseas may find themselves physically threatened and not allowed to leave until they cough up the cash. (FYI, “419″ is named for the section of Nigeria’s penal code that the scam violates.)
The risk: Serious financial loss–or worse. Victims of Nigerian letter fraud lose $3000 on average, according to the FBI. Several victims have been killed or gone missing while chasing a 419 scheme.
The question you’ve gotta ask yourself: Of all the people in the world, why would a corrupt African bureaucrat pick me to be his accomplice?
4. Postal Forwarding/Reshipping Scam
The setup: You answer an online ad looking for a “correspondence manager.” An offshore corporation that lacks a U.S. address or bank account needs someone to take goods sent to their address and reship them overseas. You may also be asked to accept wire transfers into your bank account, then transfer the money to your new boss’s account. In each case, you collect a percentage of the goods or amount transferred.
What actually happens: Products are purchased online using stolen credit cards–often with identities that have been purloined by phishers–and shipped to your address. You then reship them to the thieves, who will fence them overseas. Or you’re transferring stolen funds from one account to another to obscure the money trail.
The risk: Sure, you can make big bucks for a while. But after a few months, you’re going to look inside your bank account and find it cleaned out. Worse, when the feds come looking for the scammers, you’re the one they’re going to nail.
The question you’ve gotta ask yourself: Why can’t these people receive their own darn mail?
5. “Congratulations, You’ve Won an Xbox (IPod, plasma TV, etc.)”
The setup: You get an e-mail telling you that you’ve won something cool–usually the hot gadget du jour, such as an Xbox or an IPod. All you need to do is visit a Web site and provide your debit card number and PIN to cover “shipping and handling” costs.
What actually happens: The item never arrives. A few months later, mystery charges start showing up on your bank account. The only thing that gets shipped and handled is your identity. (A more benign variation on this scam drives you to a site where you’re asked to cough up your contact info and agree to receive spam from advertisers until unwanted e-mail is coming out of your ears.)
The risk: Identity theft, as well as lost money if you don’t dispute the charges.
The question you’ve gotta ask yourself: When did I enter a contest to win an Xbox (iPod, plasma TV, etc.)?
The next time you see something like this you have at least use the common knowledge that you have.Do not enter into this because you are probably a potential customer to the scammers.
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