Financial Fraud and the Internet

Goals
• To define Social Networking and it’s dangers
• To be able to identify fraud related crimes and
scams that occur on the Internet
• To discuss Identity Theft and credit card fraud
• To understand the difference between a “breach”
and a “skim”
• To discuss safe practices while using the Internet
 Definition
Cybercrime is criminal activity done using
computers and the Internet. This includes
anything from downloading illegal music files
to stealing millions of dollars from online bank
accounts. Cybercrime also includes non-
monetary offenses, such as creating and
distributing viruses on other computers or
posting confidential business information on
the Internet.
How do people access the Internet?
• Internet Service Provider (ISP)
• Cell phone
• Tablets
• Gaming System
– Playstation 3
– Xbox 360
– Wii
 What do we get from the Internet?
• Social networking sites
• Email
• On line chatting
• On line gaming
• Access to Financial Institutions
• Access to Retail websites
What is a “social network site”?
• Social Network Sites are defined as “web-based services
that allow individuals to (1) construct a public or semi-
private profile within a bounded system, (2) articulate a
list of other users with whom they share a connection,
and (3) view and traverse their list of connections and
those made by others within the systeme”. 2007 Journal of Computer-
Mediated Communication, 13(1), article 11.
 Examples of Social Networking
Sites (SNS)
• Myspace.com
• Facebook
• Line
• Plenty of Fish
– Free Site
• Christian Mingle
• Tweeter
 Facebook
• Harvard ONLY SNS in early 2004
• Started supporting other colleges but they
had to have university email addresses
associated to those institutions
• 2005, opened up to high school students,
professionals inside corporate networks,
and eventually, everyone.
 Dangers of SNS’s
• Cyber stalking
• Cyber bullying/ threats
• Disclosure of private information
• ID Theft
• Take over or create pages
 Dating Web Site Dangers
• After communicating for a period of time, the
individual indicates they have a friend in another
country that needs assistance and convinces the
subject to send money to the person in the other
country.
• Similar scenario but ask the individual to send
packages to them because they can’t receive the
packages where they are.
 Cyber Stalking
• Cyberstalking is the use of the Internet to “Stalk”
someone.
• "Stalking is a form of mental assault, in which the
perpetrator repeatedly, unwantedly, and disruptively
breaks into the life-world of the victim, with whom he has
no relationship (or no longer has), with motives that are
directly or indirectly traceable to the affective sphere.
Moreover, the separated acts that make up the intrusion
cannot by themselves cause the mental abuse, but do
taken together (cumulative effect). Wikipedia
 Cyber bullying

• Cyberbullying is being
cruel to others by sending or
posting harmful material or
engaging in other forms
of social aggression using the
Internet or other digital
technologies.
– Center for Safe and Responsible Internet Use
Lack of Laws for Adult
based crimes
Giving your personal
information to
individuals you
haven’t physically
met
Fraud Related Computer Crimes
• Phishing
• Phishing
– Emails or phone
calls that appear
to be from
legitimate
companies
asking for your
information.
 Fraud Related Scams
• Jobs
– Reshipping
• Craigs List
– Room mates
– Items
– Vacation rentals
• Other Fraud Scams
 RESHIPPING SCAM
• Victims are usually contacted by instant
message (IM) or online personal ads
• Suspects are from African Country
(Nigeria or Ghana). They start “chatting”
and a personal relationship develops
• Eventually they will ask victim to do favors
such as accept deliveries and reship them
to other countries
 FOREIGN LOTTERY SCAMS
It’s illegal to play foreign lotteries
in the United States

A Federal Statute prohibits mailing lottery

tickets, advertisements or payments to
purchase tickets in a foreign lottery
Fraud Related Computer Crimes

• Identity Theft and Credit Card Fraud

– Take over account fraud
• Wire Fraud
– Use of Credit card numbers
 Identity Theft
• Begins when criminals obtain personal identifiers of
individuals with good credit by:
– Recruiting individuals who have access to other
people’s personal information in the course of their
employment – Collusive Employees
– Stealing documents from businesses that
contain personal information
- Medical records, loan applications, etc.
 Types of Access Device Fraud
• Skimming – Theft of account numbers and
track data
• Counterfeit Credit Cards
• Altered Credit Cards (re-embossing)
• White Plastic
• Lost/Stolen/Non-Received Issued (NRI)
• Misuse of Account Numbers
 Skimming
“The replication of electronically
transmitted full track data to allow or
enable valid authorization to occur.”
 What areembedded
Information they within
stealing?
Credit Card Tracks Credit Card Number
& Name

CVC & CVV

Discretionary (may include

home address or other
identifiers)

Skimmers Capture all 3 Tracks of Information

 Breaches
Intentional vs. Unintentional
Sam’s Club vs Target

Breaches vs skimming
Location of transactions
 Internet Fraud Prevention
• Don’t answer or open emails from unknown
sources
• Don’t provide your personal information to
someone you don’t know
• If it sounds too good to be true…it is
• Look for secure websites….https:// when
conducting on line purchases
• Check your financial statements regularly
 Internet Fraud Prevention
• Use Anti virus and firewall protection to
protect your system
• Don’t download software from unknown
sites
• Use secure passwords for websites
– Letters and numbers (characters if permitted)
– Change often and don’t duplicate
 The Philippines Top 10 Scam
10. Bancap scam
This is scam that targeted investing people of treasury bills, as we know
Treasury Bills are bonds issued by the government or a loan by
government to the public, it offers a low risk investment as it was
backed by the government, but the proprietor, Marilyn Nite, of this
scam make the investors believe that she is actually buying TB but
turn out that she collects the fund without buying TB and pocketed
the fund she had collected.

• total amount scammed: 900 million Pesos

 The Philippines Top 10 Scam
• 9. FrankSwiss and DeutchFranks
When you were in investment, we always look for lowest risk with
higher yield, this scam offers just like how people want it, a low risk -
high yield investment scheme, but as we said in finance, risk is
proportional with yield, the higher the risk, the higher the return, the
lower it is, the lower your income might be. this scam even collects
money from politicians ( whoa, robbers got robbed) and celebrities,
who will not be swayed by this scam, it looks like foreign, a Swiss,
Frank and Deutsche, European isn't it?

• total amount scammed : 1 Billion Pesos

 The Philippines Top 10 Scam
• 8. Swiss Mutual Fund International Scam

• it was an international mutual fund scam, it started a long time on

other country before it steps in the Philippines, as it was international
a lot of people thought it was for real but being international does not
mean it's genuine, not because they are whites or from a rich country
does also mean they are all good people.

• total amount scammed: More than 1 Billion Pesos

 The Philippines Top 10 Scam
• Royal Manchester Five Trading Corp.
• This is a Foreign Exchange trading scam, this promises the investors
a 4.5% of investment return monthly, but as we all know, when it is
too good to be true then it is not.
total amount scammed: 2 Billion Pesos
 The Philippines Top 10 Scam
• 6. Tibayan Group Investment Corp.

• This is also a mutual fund scam that collects fund from the public to
be invested in a larger cause, but opposite from its name "TIBAYAN"
or "to Strengthen" this network is not "MATIBAY" or "Strong", this
build to collect fund and pocketed it. they have attracted investor with
their high yield interest rate of 3-5% each month for a lock-in
investment period of 6 months to 1 year.

• total amount scammed: 2 Billion Pesos

 The Philippines Top 10 Scam
• 5. Mateo Management Group
• This group persuade a few rich people to invest in a large amount of
money to be manage by them, they promise to make their
investment earn more than they could have believed. after they had
receive the money, they were no where to be found like magic.

• total amount scammed: 4.3 Billion Pesos

 The Philippines Top 10 Scam
• 4. Performance Investment Products Corp.
•

• this is a foreign exchange trading scam that targeted the elites of the
Philippines, they were able to obtain investment from their 10-15%
guaranteed interest rate, as a person if you hear something like this,
it is like hey take all my money and give me the interest, but of
course isn't this too good? so it not true.
•

• total amount scammed: 11 Billion Pesos

 The Philippines Top 10 Scam
• 4. Performance Investment Products Corp.
• this is a foreign exchange trading scam that targeted the elites of the
Philippines, they were able to obtain investment from their 10-15%
guaranteed interest rate, as a person if you hear something like this,
it is like hey take all my money and give me the interest, but of
course isn't this too good? so it not true.

• total amount scammed: 11 Billion Pesos

 The Philippines Top 10 Scam
• 3. Aman Future Group
• Aman Amalilio spearheaded this scam, his tactics is way different
from the other who targeted the middle and upper class, but instead
he believes in a saying the more the merrier, small amount counts,
so he victimized the poor, with 100,000 families he had achieve a
medal to be ranked 3rd in this ranking. kudos for being such a great
scammer. you deserve a sit in hell.

• total amount scammed: 12 Billion Pesos

 The Philippines Top 10 Scam
• 2. Multinational Telecom Investors Corp.

• so where did Aman Future Group get the idea of victimizing people,
then it is MTIC, it had victimized 950,000 individual with its scam that
offers a 4-5% interest rate per month, a lot of people was doomed in
investing in this corporation.

• total amount scammed: 25 Billion Pesos

 The Philippines Top 10 Scam
• 1. Legacy Group

• there is no other Legendary than legend, cause it is their legacy!,

Legacy group topped the most scammed network, mastermind by
the legendary Celso de los Angeles, this group were able to topped
this list as they offer a guaranteed commission of 15,000 Pesos with
their motorcycle loan and investment loan program, with an instant
cash to be earned, this group had achieved the top spot.
total amount scammed: 30 Billion Pesos
 5 signs of SCAM
1. Focus is More on Recruiting than Selling
2. Poor Training
3. Pressure to Pay for More
4. Sales Tactics Brought to Bear on You
5. Seems Too Good To Be True
 Sources

www.pinoyscamdetector.com › headline › sca

thefilipinoexpat.com/networking-and-pyramid-scams/