Top 10 List of Current Scams - 2008

For detailed explanations of each scam, how to report a scammer and how to protect yourself, click on the blue titles below for more information! For internet crime and fraud statistics, see this page.

• LOTTERY SCAMS - These include scams which can go under the name of genuine lotteries like the UK National Lottery and the El Gordo Spanish lottery.  Unsolicited email or telephone calls tell people they are being entered or have already been entered into a prize draw.

  Later, they receive a call congratulating them on winning a substantial prize in a national lottery. But before they can claim their prize, they are told they must send money to pay for administration fees and taxes. The prize, of course, does not exist. No genuine lottery asks for money to pay fees or notifies it's winners via email.
   

• INTERNET AUCTION FRAUDS - Auction frauds (commonly called Ebay or PayPal scams, after the two largest venues) is a misrepresentation of a product advertised for sale through an Internet auction site or the failure to deliver products purchased through an Internet auction site.
   

• NIGERIAN ADVANCE FEE FRAUDS - These frauds take the form of an offer, via letter, e-mail or fax, to share a huge sum of money in return for using the recipient's bank account to transfer of the money out of the country.  The perpetrators will often then use the bank account details to empty their victim's bank account. Often, they convince the victim that money is needed up front, to pay fees or is needed to bribe officials.
   

• PHISHING AND PHARMING FOR IDENTITY THEFT - The victim receives an email that appears to be from a credible, real bank or credit card company, with links to a website and a request to update account information. But the website and email are fakes, made to look like the real website.
   

• "PASSIVE RESIDUAL INCOME" SCAMS - Get rich scheme and scam websites - Make $$$ in your spare time! It so EASY once you get their free book or cd and learn their secrets! Sure... These websites are themselves scams; claiming to offer you a good deal, when at best, their products are worthless, they have no real secrets, and worse, some are identity thieves!
   

• LOTTERIES AND OTHERS THAT SEND YOU A COUNTERFEIT CHECK - You receive a check in the mail - either from a lottery you "won" (without buying a ticker) or from an EBay buyer or other source.  It looks real... but after you try to cash it, you find out it is a fake; and you're arrested for passing a counterfeit check! Read more about scam checks on this page and here about the EBay check scam.
   

• FREE CREDIT REPORT.COM - What a scam this one is!  The name of the website is freecreditreport.com, but you'll only get a credit report when you sign up for their paid service.  And worst of all there IS a government mandated website where you CAN get a free credit report!  Find out more here!
   

• WORK-AT-HOME SCAMS - Work-at-home and business opportunity scams are often advertised as paid work from home. After the would-be worker applies, they are asked for money up-front to pay for materials and, after paying, they hear nothing back. A variation of this is, people are asked to invest in a business that has little chance of success.

TRAINING

Association of Certified Fraud Examiners

19th Annual ACFE Fraud Conference and Exhibition
Boston, MA • July 13-18

Tampa Bay Chapter

9th Annual Fraud & Computer Crimes Seminar

May 6-7, 2008
Ruth Eckerd Hall
Clearwater, Florida

2006 - 2007
OFFICERS & DIRECTORS

PRESIDENT
Christine Dever, CPA, CFE
Accountabilties Consulting Services
(813) 417-1825

VICE PRESIDENT
Steve Hooper, CIA, CFE, CCSA
Clerk of the Circuit Court Hillsborough County, FL
(813) 276-2029 x3703

SECRETARY
Clark J. Bolton, CFE
Bolton Risk Management
(727) 771-5255

TREASURER
Laura Krueger Brock, CPA, CFE
Kirkland, Russ, Murphy & Tapp, P.A.
(727) 572-1400

DIRECTOR
Mark Dubina, CFE
Florida Department of Law Enforcement
(813) 878-7366

DIRECTOR
Ellen Wilcox, CFE
Florida Department of Law Enforcement
(727) 298-2482

DIRECTOR
Gary Chapman, CFE, CGAP
City of Tampa
(813) 274-7163

CHAPTER TRAINING
Wayne Boytim, CFE
Retired

• MATRIX / MULTI-LEVEL MARKETING  AND PYRAMID SCHEMES - "MAKE MONEY NOW!" scream their websites!  And do it in your spare time!  Earn big bucks for almost no work.  If that isn't enough to tell you it is a scam, let us explain why it is. These schemes are promoted through websites offering expensive electronic gadgets as free gifts in return for spending about $25 on an inexpensive product, such as a mobile phone signal booster. 

Consumers who buy the product then join a waiting list to receive their free gift. The person at the top of the list receives his/her gift only after a prescribed number of new members join up. The majority of those on the list will never receive the item.

Pyramid schemes offer a return on a financial investment based on the number of new recruits to the scheme. Investors are misled about the likely returns. There are simply not enough people to support the scheme indefinitely.
 

• PROPERTY INVESTMENT SCHEMES - Investors attend a free presentation, which aims to persuade them to hand over large amounts of money to enroll on a course promising to make them a successful property dealer, usually involving "no money down".

  Schemes can involve the offer of buying yet-to-be built properties at a discount.  Other variations include a buy-to-lease scheme where companies offer to source, renovate and manage properties, claiming good returns from rental income. The properties are generally near-derelict and the tenants non-existent.
   

• 900 PHONE NUMBER SCAMS - Postal notification of a win in a sweepstake or a holiday offer in this scam include instructions to ring a premium rate number. This is generally an 900 toll number. Calls to the number incur significant charges, the recorded message is lengthy, and the prize often does not exist. It is a scam that has been around a long time, but it is still in use.

Source: http://www.consumerfraudreporting.org/current_top_10_scam_list.htm

News from the ACFE

The 19th Annual ACFE Fraud Conference attracts professionals from around the world who are involved with any aspect of identifying, preventing and detecting fraud and white-collar crime within organizations.  In addition to accountants, auditors, investigators, law enforcement and anti-fraud specialists, professionals in governance, risk management, compliance, corporate security, loss prevention and the legal field are some of the many groups who will participate in the conference.

Gather with more than 2,000 anti-fraud professionals from around the world to share knowledge, exchange ideas and realize your full potential in the global fight against fraud. With informational educational sessions, presentations and various networking opportunities, you'll walk away with even more tools, resources and contacts than ever before.

Chapter News

9th Annual Fraud & Computer Crimes Seminar

The Tampa Bay Chapter of the Association of Certified Fraud Examiner is offering 14 hours of CPE for as little as $170.00. Date: May 6 and 7. Location: Ruth Eckerd Hall, Clearwater, Florida. For more information visit http://www.tampabaycfe.org/seminar.htm.

Scholarship Winners & Donations

Kathryn Bostick was presented a $1,000 scholarship at the University of Tampa's College of Business Academic Awards Ceremony by Tampa Bay Chapter President, Christine Dever.	Professor Kate Barker accepted a $1,000 donation for the University of South Florida's St. Petersburg campus. The donation will be used for their Forensic Accounting Program.
Keith Goree, Director Applied Ethics Institute, St. Petersburg College, College of Ethics accepted a $1,000 donation to the college's Applied Ethics Program.	Jolanta McGraw, University of South Florida, St. Petersburg campus, received a $1,000 scholarship at the April dinner meeting.
Melinda Santiesteban, Florida Southern, was awarded a $1,000 scholarship at the April dinner meeting.	Jalika Waugh accepted a $1,000 scholarship on behalf of Brianna Discordia, St. Leo University.

Dinner Meeting News

April 8th Dinner Meeting

On Tuesday April, 8th 2008 John Gudavich, President of J. Lewis & Associates Consulting, Retired Investigator, United States Attorney’s Office provided a 60 minute presentation entitled "Testifying as an Expert Witness" to the Chapter Members and Guests at the Westshore Hotel in Tampa.

Below are a few of the highlights from his discussion:

• Expert Witness’s come from various backgrounds including Certified Fraud Examiners, Accountant’s, Investigator’s, Scientists and Construction Experts.

• To qualify as an expert witness you must have a solid professional foundation through education & work experience, licensing & certifications, technical training courses and offices held in professional associations. You may also have had books, journals or periodicals published and may have received professional awards and commendations.

• Expert Witness’s must be specialized within a prescribed discipline within his/her profession. They are also usually recognized as an authority within this profession.

• Part of the mission of the Expert Witness is to testify to findings and conclusions on behalf of a client and create doubt in the defense expert’s opinions and conclusions. They may also be called upon to give a different interpretation of the matter in dispute so as to create doubt on the opposing expert’s opinion.

• Expert’s also define Industry professional standards and will be relied upon to educate the fact finders as to the standard of care exercised by opposing professionals.

• An Expert Witness must be unbiased. They should possess the ability to render an impartial opinion. They should also avoid conflicts of interest by making a full disclosure of any connections no matter how remote.

• Experts testify in administrative proceedings, civil proceedings and criminal proceedings. They testify in many areas including but not limited to financial fraud, arson for profit and negligence.

• An Expert can consult with an attorney to prepare for the litigation. They are considered and assistant to an attorney so any collaborative work and exchange is protected under the “Attorney/ Client Privilege”

• Expert Witness’s aid decision makers, judges and juries in understanding technical issues under contention. Experts give opinions and are only restricted by the judgment of guilt.

• Experts can prepare reports which should be brief and avoid ambiguity. They can provide exhibit’s to reinforce findings and opinions. Reports allow the opposition to see the strengths and weaknesses of findings. If there undisputable strengths the opposition will more than likely engage in settlement discussions immediately.

• Work papers can be produced in hearings/court proceedings so should never be destroyed or contain anything you don’t want someone else to see.

John Gudavich, MA, CFE, CPP is a local chapter member with over 30 years experience as a Police Officer and Federal Criminal Investigator (Special Agent). John is also a former Adjunct Professor, in a Master of Art’s Program, University of Southern New Hampshire, lecturing in various financial fraud topics. He has extensive experience testifying in the presence of Federal Magistrates, Federal Grand Juries and Federal and State Criminal Courts.

Submitted by: Sharon Shaw, Chapter Director

Source: http://www.fdle.state.fl.us/fc3/hoaxes.html

Tips on How to Identify a Scam or Fraud

If the email, phone call, prize or lottery notification has any of the following elements, we strongly suggest it is probably a fraud and you do not respond to it. Below are some general tips to recognize scams.  Detailed information can be found from the menu buttons at left:

• The name of the company is listed on this website somewhere as a scam.

• The email matches one of the definitions or formats on this website.

• The organization has no website and can not be located in Google.

• The email or requestor asks for bank account information, credit card numbers, driver's license numbers, passport numbers, your mother's maiden name or other personal information.

• The email or caller advises that you have won a prize - but you did not enter any competition run by the prize promoters.

• The email claims you won a lottery (we know of NO legal lottery that notifies winners by email)

• The mail may be personally addressed to you but it has been posted using bulk mail - thousands of others around the world may have received the exact same notification. Especially true if you find an exact or similar email posted on this website.

• The return address is a yahoo, hotmail, excite.com or other free email accounts. Legitimate companies can afford the roughly $100 per year that it costs to acquire and maintain a domain and related company email account.

• The literature contains a lot of hype and exaggerations, but few specific details about costs, your obligations, how it works, etc.

• The prize promoters ask for a fee (for administration, "processing", taxes, etc.) to be paid in advance. A legitimate lottery simply deducts that from the winnings!

• The scheme offers bait prizes that, if they are real, are often substandard, over-priced, or falsely represented.  Or, as part of the prize you can purchase "exclusive items" which may also be over-priced or substandard.

• To get your prize might require travel overseas at your own cost (and personal risk) to receive it.

Source: http://www.consumerfraudreporting.org/identify.php

President's Message

We set out with high aspirations and achieved many goals this year and are well on our way to completing the remainder of them. We are headed to the National ACFE conference with the hope of fulfilling one more of the goals “Chapter of the Year”. We have made several presentations at different community events and many of the Universities and local businesses and are working towards more. We want the Community to know who we are and what we can do for them. We have also now set up a student board comprised of students from all of the local Universities with majors in Business and/or Criminology. We are looking forward to their active participation and will work with them to become future Certified Fraud Examiners!

We sent out surveys, however, still have not received them from many of you. It only takes a quick minute. We want to know about your activities and what the chapter can do for you. Please send these in as we really use them to shape the presentations and events we develop for you.

Annually, the Chapter offers college scholarships for fulltime business or criminal justice majors attending one of the local colleges. The Chapter has given the following scholarships to students at 6 Colleges/Universities to include ethics students, accounting students, and criminology students for a total of $6,000. Some awards were presented at their respective awards ceremonies and the others were presented at our April dinner meeting. In addition we provided scholarships to two explorer programs for law enforcement in Pinellas and Hillsborough for $500 each. Thank you to all the Officers and Directors volunteering to present these scholarships. A special thanks to Laura Brock for coordinating all of it and keeping up with it, we know that it took a lot of your time!

We had an excellent participation in our voting process, the highest ever, and elected a new slate of officers for the 2008- 2009 season, which will start in August 2008. We will be setting up new committees this year and will be coming to you for participation!

Our dinner meetings have had great attendance. We understand everyone is busy, however, we hope that you have been able to make a few. We still have a two-day seminar in May filled with many great speakers, wonderful atmosphere and great CPE credits at a very reasonable price. We are looking forward to seeing you there! Register as soon as possible and let your colleagues know!

Until then, best wishes!
Christine A. Dever, CPA, CFE