Fraud

Hackers Targeting Bitcoins

July 27, 2018 By Twila Van Leer

Hackers seem to find a way to commit fraud with every new technology that comes along. Now it’s bitcoin, a virtual currency that is increasing in popularity.

Malicious hardware has been showing up on people’s handsets, TVs and smart fridges to facilitate their “crypto-jacking.” The effects for both individuals and companies has been severe. Depending on the severity of the attack, it may seem the losses are too small to be noticed, but over a period of weeks or months, the loss can be great.

Some companies see a huge increase in their power bills as the hackers do their thing, according to Threat Intelligence Group Manager for Checkpoint, a watchdog organization.

Hackers make use of the victims’ processing power, because that is what they need to “mine” virtual currencies. Computers make the complex calculations that verify a running ledger of all transactions in virtual currencies around the world. Besides installing malicious software, the fraudsters also can work through a web browser, latching onto the victim’s computer processing power to mine

digital currencies while the user is on the site. When the victim switches, the mining ends.

Industry experts first identified crypto-jacking as a threat in 2017, when virtual currency prices were rushing to record highs.

At that time, the price of bitcoin, the most widely used of the virtual currencies, increased six-fold from September to December. It has continued to increase.

The hackers were ready. The first big instance of this type of theft was in September, centered on Coinhive, a legitimate business that allowed website owners to make money by allowing customers to mine their v-currency instead of relying on advertising income. The frauds were almost first in line to use the service.

Monero is their favorite target, according to industry researchers. They estimate that more than 5 percent of Monero is mined through crypto-jacking, with losses of more than $150 million dollars and that doesn’t take into account mining that occurs through browsers. The thieves try to infect as many devices as possible, a method dubbed “Spray and Pray.”

The level of sophistication among the hackers increases with each new wrinkle in virtual currency and victims are reacting by adding protections to their equipment.

Elderly Targets For Financial Exploitation

April 4, 2017 By Twila Van Leer

Make sure you are aware of basic ways to protect yourself from fraud.

Older Americans are prime targets for financial exploitation, both by people they know and strangers. Financial experts label it “the crime of the 21st Century.” In 2010, the losses amounted to at least $2.9 billion.

With more than 57 million people over age 60 in the country (2010 census) it is a growing problem.

Mild cognitive impairment associated with aging is a factor that allows the elderly to be victimized. They may lack the ability to make sound financial decisions without help.

Though it is well recognized, the problem of financial abuse of the elderly remains “under the radar,” experts say, because cases are complex and are hard to investigate and prosecute. The situation is even more serious for old people because they are limited in their ability to recoup losses. The result may be loss of ability to live independently, decline in health, broken trust and family dissolution.

The best solution is prevention. Being aware of an elderly person’s finances and protecting them against theft is paramount. Planning ahead and managing money according to needs is essential. In the case that something appears to be amiss, early reporting helps facilitate recovery.

Some trusted individual should be granted executor of their finances to enable him or her to act in financial matters for an elderly person if he or she becomes too disabled to handle their own money.

Additional information is available through the Consumer Finance Protection Bureau or by visiting Consumer Finance.

Medicare Fraud Over $60 Billion

June 29, 2016 By Twila Van Leer

Medicare fraud caused over $60 billion in fraud every year. — Medicare loses over $60 billion in fraud every year.

Medicare Fraud Extensive

Medicare fraud is a huge problem. Thousands of older Americans depend on Medicare to help them meet medical expenses, but fraudsters are taking a big scoop from the federal funds before they get to legitimate health care providers, a recent article in the AARP Bulletin says.

Medicare Fraud Causes Multi-billion Dollar Losses

Medicare fraud is estimated to cause more than $60 billion per year. In one very infamous case, a Texas thief methodically siphoned some $375 million from the fund over a five-year period, using a variety of methods. That man now faces life in prison, but the heavy toll taken by unscrupulous people continues to scrape billions from the heath care program.

Fraud Tactics

Fraud and abuse involves such tactics as phantom outpatients, “ghost” clinics, undelivered services, over-billing and identity theft using Medicare information, the AARP reported. The problem is so large the program’s administrators don’t even have a reliable bottom line or a methodology for arriving at the fraud rate. Many experts believe the $60 billion estimate may be too low. They say that fraud could suck off up to 30 percent of the $600 billion per year the program spends.

Large Size Opens Door To Fraud

The problem lies partly in the sheer size of the program, according to Shantanu Agrawal, who is quoted in the AARP article, He is director of program integrity at the Centers for Medicare and Medicaid Services (CMS). He points out the number of claims made every day in the huge system – some 4.5 million. More than a billion dollars are paid out every day.

That volume inherently opens the door to fraud, he said. “We are larger than the largest private payers in the country.” In addition, Medicare is a much more open system than the majority of private payers. Laws required that Medicare admit providers who meet a base set of requirements. They are then allowed to treat patients and bill for those services.

Pre-paying

CMS is trying several methods to ferret out fraud. One approach is by making provider reviews on a pre-pay basis, withholding payment until the applicant has been approved. The agency has made tens of thousands of site visits over the past two years in an effort to close down “false storefronts.” Working with private payers by exchanging data that may identify irregularities has saved the program hundreds of millions, Agrawal said.

Identifying Fake Doctors

The agency also has been more successful in identifying fake doctors. New tools provided by the Affordable Care Act make inroads into the number of unlicensed fraudulent providers. Connections have been made among more than 100 different databases on the state and federal levels. More than 500,000 providers have been removed from the billing system through this effort, he said.

Effects On Medical Research

It is not only patients and legitimate health care providers who suffer from Medicare fraud, experts point out. Medical research that relies on billing data, hospital rankings and cancer studies can be skewed by fraudulent reporting. In some instances, patient deaths have been attributed to fraudulent care.

Legitimate providers are increasingly blowing the whistle on those that they are aware are scamming the system., but they take a risk of repercussions if a case goes against their charges.

Under pressure from critics, program administrators are tightening their oversight, but the challenge is huge and growing.

Spring Is Great Time To Do Digital Cleaning

May 14, 2016 By Twila Van Leer

Add digital spring cleaning to yearly to do list.

When the spring cleaning mode is upon you, don’t stop with the house, garage and closets. It’s a good time to get rid of digital clutter and assure that you are hacker-safe.

Change Passwords

Look over your passwords and change them if it’s been awhile. Remember that the more complicated and lengthy a password is, the more difficult it will be for an unscrupulous hacker to replicate it. Passwords should contain both letters and numbers.

Don’t Use Family Data For Passwords

Avoid using kids’ birthdates or names or any other reference to family data. Remember the hackers regularly troll for such connections. People still are tempted to use obvious combinations such as Password123, but that’s just making it easy for the hackers. Update software and examine your personal information on devices and online. Passwords, even the tough ones, should be changed every few months. Recycling an old one may seem an easy solution, but the longer it has been around, the easier it will be for the crooks to find it.

Use Different Passwords For Important Accounts

Don’t use the same password for routine family business, such as school sites, etc., as you use for your banking account. Multiple-factor identification that require a second form such as a code texted to your phone, gives extra protection. If it seems that all this is getting too complicated, consider a password management service such as LastPass or DashLane.

Back Up Your Information

Ransomware is one of the latest ploys hackers use. If they are able to lock down your computer, they will threaten to wipe your data unless you pay them not to. The problem often arises from malicious software resulting from clicking on a link in a phishing email or through fake online ads. For a monthly fee, you can back up your data through services such as Carbonite. Mac and Windows PCs have tools for backing up to external drives. The Mac version is Time Machine. Windows 10 has Update & Security and Windows 7 Systems and Security or System and Maintenance. Unplug the drive after each backup to prevent malware creeping into the copies.

Keep Software Up To Date

New versions fix flaws that give hackers entry into your device. This applies not only to operating systems, but to apps such as browsers and media players. Most software now comes with auto-updating features. Get rid of software you aren’t using any longer. Don’t forget your wireless router and the assorted “Internet of things” devices, Consult the manufacturers’ website if you have older equipment that doesn’t automatically update or allow you to do it through a phone app.

Restrict Social Media Accounts

Lock down social media accounts by restricting posts to actual friends. But even if you restrict your audience, just assume that what you are posting will be seen by everyone everywhere. For one thing, employers may be checking Facebook or Twitter for information about a potential employee. Don’t be embarrassed by what you have posted.

Watch Out For Scary Scams

April 3, 2016 By Twila Van Leer

Medicare

Medicare enrollment time is from Oct. 15 through Dec. 7, and there are scammers out there hoping they can trick you out of your Social Security/Medicare number while you are particularly vulnerable. Be wary of the caller who says he/she is a Medicare employee and that the agency is issuing new cards, that their records need updating or that they can help you with re-enrollment. Don’t you believe it.

Some of these scammers may say you have past-due medical bills. Genuine Medicare employees will never call and ask you for personal information over the phone. They will not visit your home pretending to solicit information the agency already has.

Utility Company

As the weather cools, such unscrupulous frauds may show up saying they are from the local utility company and claiming that you have unpaid bills. They may ask that you pay with your prepaid debit card, which makes it hard to trace. They may suggest that you pay cash and offer to send someone, supposedly a bona fide utility employee, to pick it up.

Again, don’t you believe it. Utilities don’t work that way. They will always send at least one and usually several reminders if you are truly behind, and they do not send employees to pick up payment.

Home Inspections

Another ploy that allows a scammer to dip into your financial resources is the man who shows up to “inspect” your home and supposedly finds serious repairs that need to be taken care of immediately. They may suggest that your chimneys, HVAC ducts or furnace need cleaning. Usually they don’t. Much better to rely on someone with whom you are familiar to do such upkeep.

Investment

At the final quarter of the year, many people are looking for little tweaks they can make to their investments, with an eye to improving their tax situation. If you receive invitations to free lunch seminars to be “educated” about investments, be aware you could end up paying dearly. Such gatherings often are sales pitches for bogus investments. Words such as “risk-free,” “guaranteed” or “limited time” may be clues that you are about to be scammed. Common investment hoaxes focus on oil and gas, precious metals, promissory notes, life settlements and long-maturity annuities. Before you head out for a free lunch, visit brokercheck.finra.org to learn about past lawsuits, bankruptcy filings and other possible irregularities.

Charity Organizations

When the holiday spirit begins to loosen purse strings, scammers come out of the woodwork by the droves. Last year, the focus was ebola. Every natural disaster brings out those who appeal to your humanity to help in the recovery process. Many of the scams are custom-designed for the elderly and they may solicit help for police, firemen or children. If you feel uncomfortable, ask the solicitor to provide you with materials about the suspect charity so you can study them before making a donation. Or go to give.org, charitynavigator.org or the agency in your own state that regulates charities. This information is listed at nasconet.org.

There are dangers of fraud and scam all the time, but especially in the next few months. Don’t start the holiday time of year by letting a scammer treat you to a trick.