FraudCaster

Archive for the ‘Fraud Types’ Category

Cognitive laziness is simply “lazy thinking”. A disease to which many Americans suffer.

So, what is lazy thinking? And, how does it apply to being victimized by fraud? Read the rest of this entry »

On November 24, 2009, six individuals were sentenced in federal court in Detroit for their roles in a wide-ranging international stock fraud scheme involving the illegal use of bulk commercial e-mails, or “spamming.” Read the rest of this entry »

In last weeks article, we laid the foundation for understanding the Pump n’ Dump. This week we finish my story about my investing in LOCH and the thinking errors that led to my financial losses…

The unscrupulous fraudsters found a real company that had a real story which really ended in failure. But, the fraudsters spun a winning story around the real one that made it sound like LOCH was successful and about to sign a major military contract – which of course would cause the company value to increase and therefore its stock to follow suit.

The FBI call this “kernels of truth, stuffed with a lie”. It was easy to check out the company and see the press releases showing what was true. But, it was impossible to verify the “leaked” information about the contract. On the strength of the fictitious contract, investors (like me – and, investor is a strong word) bought the stocks. Read the rest of this entry »

According to a recent article in the Des Moines Register, Bankers Trust is warning shoppers to “carefully check retail receipts following reports that rogue cashiers are adding ‘cash-back’ on transactions and pocketing the extra”. Read the rest of this entry »

In the stock world, if it sounds too good to be true, it is probably a Pump n’ Dump! What is that?

A Pump n’ Dump is a scheme where unscrupulous people, like the six that were recently sentenced to up to 51 months in federal prison, buy stock in struggling or sometimes defunct companies that are still available on the stock market, pump up their value through false or misleading statements, then dump their own stocks at the highest possible value leaving the rest of the investors holding worthless stock. Read the rest of this entry »

if you are a U.S. citizen and are approached by an individual or organization that tries to convince you that you are “not subject to this nations tax laws”, run! That’s what Paul Richard Arceneaux, a resident of Church Point, La., should have done. Instead, he bought the lie hook-line-and-sinker.
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An “advanced fee fraud” is one where the innocent victim is persuaded to pay a fee in advance in the hope of realizing a significantly larger sum. This is the case in the recent article about David Gwin of Colorado. Mr. Gwin allegedly told people and companies that he would secure multi-million dollar loans per their request. He then required them to pay him a fee in advance which he called due diligence fees, retainers or application fees.
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The Ponzi scheme is named after Charles Ponzi of Boston Massachusetts. He guaranteed investors a fifty percent return on their investment in postal coupons.
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Working from home to make extra money or as a full-time profession sounds glamorous. But, finding a legitimate work-at-home opportunity is not as easy as it sounds. The FBI and the Internet Crime Complaint Center reminds consumers to be “vigilant when seeking employment online.
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Pyramid schemes attract millions of people across the country with the hope of retiring early on a steady, passive income stream. Really, who wouldn’t want to have enough money coming in every month without having to report to work every day? It is a very appealing offer.
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The Nigerian Letter, or “419″ Fraud named for the violation of section 419 of the Nigerian Criminal Code, is one of the top ten frauds being perpetrated on the internet. Individuals representing themselves as foreign government officials or dignitaries or others in need of assistance send random emails to potential victims asking for assistance. The fraudster provides an elaborate story and plea for help to move large sums of money to overseas banks.
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