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July 31 – The Week in Phone Fraud

TWIPF2This week in phone fraud, ‘untraceable’ caller ID-spoofing and the FTC warns of data breach scams.

According to a report in the Register this week, a new VoIP service allows you to hide who you are by being web-based, having no registration checks, allowing you to spoof caller identity, and pay by Bitcoin. Users who register with a burner email address and VPN are able to effectively spoof caller IDs in a way that would be virtually untraceable to law enforcement using traditional methods.

This week, the FTC issued a warning about a new phone scam that has resulted from the US Office of Personnel Management (OPM). Here’s how it works: A man calls and says he’s from the FTC and has money for you because you were an OPM data breach victim. The scammer then collects victim’s personal information to use for identity theft.


Full Breakdown of This Week’s Phone Fraud News

Atlanta Business Chronicle: Atlanta Declares War on Hackers – The attention being paid to cybersecurity from Corporate America means more business and funding for Atlanta’s industry players. In February, Pindrop Security raised $35 million from Institutional Venture Partners, Andreessen Horowitz, Citi Ventures and others.

Pindrop Blog: Phone Scam Breakdown: The Grandparent Scam – The complicated social dynamics of the situation mean that many grandparents never even realize that it was a scam, or don’t want to admit that they’ve been conned because it could mean they lose their independence.

GPB News: A Serious Security Flaw For Android Phones – We spoke with a local company, Pindrop Security, and they’re seeing a rise in such fraud cases. While mobile devices have some advantages over desktops when it comes to security – no hard drive to hack, a GPS feature – there’s still the third-party situation.

Biometric Update: Pindrop Security releases newest version of its Fraud Detection System – FDS 2.4 (FDS) combines the company’s patented Phoneprinting technology and voice biometrics capabilities with an analytics-driven, unified workspace to more quickly detect and curb phone fraud.

The National Law Review: Cybersecurity Warning Bulletin: Telephony Denial of Service Attacks Continue With Current Focus on Healthcare – In a TDoS attack criminals flood a victim’s telephone lines with fake calls that makes it impossible to use their telephones. The criminals then demand payment to stop the jamming calls and make the phone lines functional again.

Orlando Sentinel: Woman pleads guilty in timeshare sale scheme worth $1.6 million – Tammie Lynn Cline and her business partner are accused of running a telemarketing call center that targeted timeshare owners, saying there were people interested in buying their properties, federal court records state.

PYMNTS: Staying Two Steps Ahead of Omnichannel Fraud – The sheer amount of organizational silos often cause overlapping challenges with respect to implementing omnichannel – it is hard to track and manage consumer’s activities, which in turn can create a problem for implementing fraud strategies across companies.

eWeek: Pindrop Advances Its Phone Fraud Analysis Technology – Fraud Workspace will be useful for companies with their own fraud teams that want to look at the trends. “Phone fraud is a cat and mouse game, with constantly changing attack techniques, which is why you need to stay three steps ahead,” Balasubramaniyan said.

VoIP Watch: Phone scams: increasing numbers, wider scope – It doesn’t come as a surprise that a report by Pindrop Security – *The State of Phone Fraud 2014-2015: a Global, Cross-Industry Threat – indicates that ‘more than 86.2 million calls per month in the US are phone scams’.

Pindrop: Pindrop Security Fraud Workspace Fuels Fraud Fighters With Instant Call Playback and Advanced Machine Learning – Pindrop Security’s Fraud Detection System 2.4 (FDS) combines the company’s patented PhoneprintingTM technology and voice biometrics capabilities with an analytics-driven, unified workspace to accelerate the detection and remediation of phone fraud.

Pindrop: Pindrop Security Solution Now Rated “Avaya Compliant” – “Technology partners like Pindrop Security are helping Avaya customers better protect their contact centers. By successfully completing compliance testing, Pindrop demonstrates its commitment to seamless integration with Avaya products. ”

Korea Herald: Police say 41 phone fraud offenders arrested in China – Police have arrested 41 people in China for alleged telephone-based financial scams in rare cooperation with their Chinese counterparts. After dividing their roles into team leaders and counselors, the suspects prepared 87 different scam scenarios.

The Register: ‘Untraceable’ VoIP caller ID-spoofing website accepts Bitcoin – A new VoIP service allows you to hide who you are by being web-based, having no registration checks, allowing you to spoof caller identity, and pay by Bitcoin. You can build some cases for wanting to do this – such as working from home – but these are edge cases.

Idaho Statesman: Phone scammers prey on parents’ fears, claim kidnapping – Police said they received two calls last week from men reporting they had received calls from someone claiming to have kidnapped their daughters and demanding cash for the daughter’s safe return. The first call raised concern from both the father and officers.

Contact Center World: Pindrop Security Announces Latest Release of Fraud Detection System – Pindrop Security, a provider of call center anti-fraud and authentication solutions for enterprise call centers, announces the latest release of its Fraud Detection System, which provides new tools to assist fraud analysts and call center technologists.

Baker Donelson: Stengthening Your Business Against Cyber Threats – While cyber criminals are innovative, cyber defense entrepreneurs are, as well. The emerging cybersecurity technology landscape is growing at a rapid pace to meet the needs of companies that are working to defend their valuable data from cyber threats.

Pindrop Blog: Phone Scam Breakdown: Account Takeover Fraud – Checking an account balance for a customer may seem like a low-risk activity. But this is exactly the type of information that an attacker can use in later interactions to prove their fake identity. Only 1 in 5 phone fraud attempts is a request to transfer money.

Krebs on Security: The Wheels of Justice Turn Slowly – I’ve recently received a notice from the U.S. Justice Department stating that one of the individuals involving in that “swatting” incident had pleaded guilty to a felony conspiracy charge. The notice offers little additional information about the individual.

Kim Komando: #1 scam on the increase – Phone security company Pindrop Security does an annual “State of Phone Fraud” report and it found some disturbing things. For example, there are more than 86 million scam calls every month, and that’s just in the U.S.

Payments Source: Europe Suffers a Post-EMV Fraud Spike – The fraud resulted in $1.44 billion (1.32 billion euros) lost, mostly from card-not-present transactions.d. CNP fraud was the only type to record an increase from the previous year, a rise of 20.6% compared to ATM and point of sale fraud.

FTC Blog: It’s NOT the FTC calling about the OPM breach – If you’re an OPM data breach victim, you probably know to look out for identity theft. But what about imposter scams? In the latest twist, imposters are pretending to be the FTC offering money to OPM data breach victims.

Bloomberg Business: An Identity Thief Explains the Art of Emptying Your Bank Account – He calls the toll-free number, using software that makes it look as if he’s dialing from the U.S. Any information the customer rep might ask for, Naskovets’s client sends him instantly by chat. The questions don’t usually get beyond the cardholder’s date of birth.

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