This SlickDeals forum thread talks about how if a merchant manually bills an account, without sending it through their credit card processor to get appropriate authorization, the bank will pay them without question. The good thing is that charges that are received by the bank that come through without an authorization attached are very easy to initiate a chargeback on.

Once again, it is up to the consumer to examine his bills and make sure his ass is protected.

Virtual credit cards are no protection [SlickDeals] (Photo: Getty)

bestsmartstore.com = fraud [toddbradley]
(Photo: Getty)

Target says:

Our goal is to always surprise and delight our guests with great values, and we are disappointed that some of our guests may be inconvenienced by our need to respond to this fraudulent tampering and transferring.

The customers who originally received the coupon will be compensated with a $5 gift card. (Target says you'll be notified by email.) Target has also placed signs near the registers indicating that the coupon is no longer valid.

Target Coupon Fraudulently Tampered with and Transferred [Target]

Inflating Home Appraisals: Buyers could borrow enough to cover closing costs, but ended up owing more than the house is worth.

Flipping Loans: Moving unqualified buyers to loans that don't require documentation, knowing they couldn't afford it

Coaching: Brokers told buyers to overstate or even double their stated income in order to qualify for loans.

Watch the clip, inside...

[via Today Show]

"At the time that the woman passed away the family tried to cancel all of her credit cards, but it's believed that this one was inadvertently left out and a renewal card was sent in the mail. We think the granddaughter got a hold of that and took advantage of the situation,” said Officer Katie Flood.

Our favorite detail: the couple used the card to pay for the boyfriend's $500 DWI court costs. Grandma would be proud.

"Police: Couple Used Dead Grandma's Credit Card" [KOLN KGIN]
(Photo: Getty)

The public guardian's office was put in charge of Jessie McDonald's affairs after a doctor found that she was suffering from dementia. They claim that Chase is preying on a vulnerable consumer by not repaying the stolen money in a timely fashion: "This [teller] was helping herself to about $300,000,'' Public Guardian Robert Harris said. "It's even more egregious when it's someone who is completely reliant on her savings. She is so vulnerable. You would not expect the bank would be the one preying on her at this point.''

Chase says that they were the ones who caught the teller in the first place, and that they're working to return the money:"We . . . urged them to intercede on behalf of Mrs. McDonald, and we are currently working with the public guardian's office to resolve the financial details,'' Chase spokesman Tom Kelly said.

Mrs. McDonald owns a townhome in the Hyde Park neighborhood of Chicago, but is currently living at Crestwood Care Centre in Crestwood, IL. Her bills are being paid from her savings, but she's running out of funds. In order to move home, her townhome will need extensive renovations and she'll need 24-hour care. In short, she needs her life savings back or she may end up on public assistance.

The Sun-Times says that there's currently an FBI investigation taking place, but the teller hasn't been charged criminally. Mrs. McDonald now understands what happened to her and she says she's disappointed.

"You trust somebody. She was so nice. And I wasn't thinking," McDonald told the Sun-Times. "I was really disappointed in her."

'She was so nice' [Chicago Sun-Times](Thanks, Ellen!)
(Photo: epicharmus )

Here's their official statement:

We recently learned of a mail fraud scam that is falsely using the Quaker Oats Company's name and offering consumers thousands of dollars in exchange for personal information. This is currently being mailed to some consumers’ homes and we want the public to be alerted that Quaker Oats did not initiate, nor does it endorse this activity. The check is not ours and has no value. We do not use these types of incentives for the purpose of collecting personal information from our consumers, and we would never ask our customers to divulge any private information. Please do not respond to the letters or attempt to cash these fraudulent checks. If you receive a mailing of this nature, we ask that you forward it to us at Consumer Affairs, PO Box 049003, Chicago, IL 60604-9003.

Thanks for giving us the chance to clarify the situation, and we encourage you to share this information with anyone who you think may have received this mailing so that they are not victimized by this fraud. We apologize for any inconvenience or concern.

Always be wary of shady offers that claim to come from reputable companies. If you get a dubious mailing like this, be sure to report it to your state's attorney general.

We join Todd as he attempts to report the merchant...

I disputed the charge. However, the dispute didn’t go through until March 1st. That is because I spent several days trying to get through to WaMu’s debit dispute department. I waited on hold for a total of 8 hours, including one stretch of 4 hours. It wasn’t until I had a customer service supervisor sit on the line with me that I was able to get through to the dispute department.

Once I got through, I thought everything would be okay. They sent me a form out, which I immediately sent back. I can send you my copy of the letter I sent them if you would like. They issued me a provisional credit. Since I did not hear anything for three months, and the company is fraudulent and no longer exists, I thought the problem was over.

Yesterday, I returned home at 8 pm from vacation to find my checking account was in the negative. I never bounce checks, and was shocked. I looked my account online and found out the original charge had once again been placed on my account. I was freaking out, but when I called WaMu, they said that the debit dispute department did not open up until 7am Pacific time this morning.

I called back in at 9. I waited on hold for an hour before being dropped. Once again, I had to get a customer service supervisor to stay on the line with me, and this time, someone from disputes did pick up.

I asked why I hadn’t received any information on the charge or why it was being reinstated. I was told that a letter was sent to me on the May 30th, Saturday, the same day the charge was reinstated. I have not received this letter. I was also told that in order to receive credit, I would have to provide an item description, copy of the cancellation policy, and a cancellation number. I tried to explain that the charge was fraudulent, the company no longer existed, and that I had never received anything from the merchant. The debit dispute person, who was very rude, and kept interrupting me while I was talking, said they could not issue me a credit without a product description, cancellation policy, and cancellation number. How are you supposed to provide such things on a fraudulent charge?

I have called WaMu executive customer service and left a message for Rosie. However, I have been unable to reach her. I also sent out an executive carpet bomb, but have received many of the emails returned.

Todd, its time to get out the big guns. You're going to need to file a formal complaint with WaMu's regulator.

Here's how you do that:

1) Contact WaMu with a formal complaint. You can do this in writing, or by email. Keep a copy of this complaint for your records.

2) Figure out which agency regulates your bank by calling or using FDIC's Bank Find. We happen to know that Washington Mutual's primary regulator is the Office of Thrift Supervision.

3) Write a formal complaint letter to the bank's regulatory agency. Follow the FTC's instructions for writing a complaint. This document also has the correct contact information for the various regulatory agencies. Keep a copy of this complaint for your records.

By filing a complaint, the regulating agency will investigate whether WaMu's incompetance actually violated any banking regulations.

You should also file a complaint with your state's attorney general about the scammy retailer that ripped you off. Keep a copy of this complaint for your records.

(Photo: stirwise )

1. Don't write checks.

Here's the reason: If I write a check at Walgreens or CVS, I'm leaving that check behind with the clerk. And on that check is my name, address, phone number, my bank's name and address, my bank account number, routing number, and my signature. And if that store clerk writes down my driver's license on the front of the check, in nine states—including the one I live in—that's my Social Security number, too. Then, next to it he writes my date of birth.

"Well, I don't get that check back. So I don't know if CVS destroyed the check, if they put it in a warehouse for seven days or 30 days. What I do know is that anyone who sees the front of that check has more than enough information to draft on my bank account.

2. Make sure the IRS cashed your tax check. Crafty thieves look for envelopes addressed to the IRS and, like resourceful squirrels, rip out the delicious fruit inside and claw off the IRS' name and replace it with their own.

3. Don't put checks in your mailbox. "That's like putting the flag up [for fraudsters] to come get my mail." Entrust your check-filled envelopes to the post office.

4. Treat your checkbook like cash. Leaving a checkbook exposed in your car is like hanging a sign on your windows reading "Smash Me!"

5. Balance your checkbook, or at least keep an eye on your online bank statement:

About 51 percent of Americans do not reconcile their bank statement—they don't even open it. Banks love this because we have a law in the United States called Article 3, Section 406 of the Uniform Commercial Code. It says that you have 30 days from receipt of your statement to notify the bank of any discrepancies that may appear on your statement. If you don't do that, then the bank has no liability to pay you.

Our online banking setup keeps us from hunting down the checkbook lurking somewhere in our apartment. Do people still use checks?

5 Ways to Avoid Being a Check-Fraud Victim [U.S. News & World Report]

"Most retailers take seriously their responsibility not to fraudulently deceive consumers purchasing alcoholic beverages," said Alan Fields, district supervisor for Greensboro's ALE Office. "This is the first time in 20 years, I've heard complaints about switching brand labels."

In April, ALE Agents covertly ordered a keg of beer labeled with the Bud Light brand from an employee at the University General Store. They also obtained samples of the Bud Light on tap at the Spring Garden Bar and Pizzeria. Analysis of both samples indicated the beer was Busch Light in both cases.

The ALE investigation also revealed that employees at Westerwood Tavern were selling Keystone Light beer from a tap, but representing the product to consumers as Coors Light, a more expensive beer.

ALE agents? Analysis of samples? CSI:Beer!

What's on tap: Not what you think, ALE agents say [News-Record] (Thanks, Dan!)
(Photo: qnr )

Consumers report receiving automated message calls from a service calling itself "The Jobline" where you're told they have jobs for you if you call back, but it turns out it's just a scam. If you call the number back, you will get charged $9 per minute, according to messages left in online forums where people share information on telemarketing numbers. They seem to be using the number 976-4477 in different area codes. A scam targeting people already hard up for work and money, that's pretty high on the Richter scale of sleaziness.

773-976-4477 [800notes] (Thanks to Skurry!)

(Photo: Getty)

After another battle with a branch manager today—who insisted that money couldn't be returned and that I needed to fill out a fraud report—I went over her head.  After a heated, uh, discussion, the main downtown Seattle branch put the $1,500 back in my business checking account.  The $7 fee was refunded a few hours later.
 
Some bad PR in Consumerist no doubt helped. Thank you!

We're not sure we posted the story in time to have an effect on the outcome, but we'll take it.

RELATED
"WaMu Presents Random $1500 Check On Someone Else's Account, Then Calls It Fraud"

[Update: WaMu has returned the money.] Bill's small business account was hit with a $1500 check written by an unrelated third party to another third party—both completely unconnected with his account. He was also penalized with an insufficient funds fee, although the money was debited from his account. Now WaMu's saying they have to investigate for fraud before they can return Bill's fees.

I received a returned check notice from Washington Mutual last week. Not unusual for a small business — until I opened it.

The check in question was a $1,500 private party check written to another private party. The check wasn't written by, or issued to, my business.

Simple mistake? I visited the WaMu branch across the street from my office and got the stunning response from the branch manager that they'd have to do a fraud investigation. I raised hell again today, and the money, plus a $7 returned check fee, still hasn't been returned to my account.

I'm considering going to go to small claims court — or swear out a theft complaint against WaMu — to get my money back. The only fraud is that WaMu or KeyBank (the check in question was written on a KeyBank account) screwed up and they're taking it out of my hide. I'm the innocent bystander.

Maybe WaMu is trying to cover its losses by randomly reassigning bounced checks to accounts that have money in them and hope no one notices.

Why can't WaMu assume the $1500 loss while they investigate what was probably a clerical error, instead of forcing the problem onto their customer? Maybe WaMu should amend their new ad slogan to "We've got your back... unless we're covering our own asses."

The cool thing about eBay's support system is it will always answer your question; unfortunately, that answer will always be a form letter on how to reset your password, as Timothy discovered when he tried to figure out how to sell his laptop to someone who wasn't a Nigerian scammer. Timothy has learned the awful truth behind today's eBay—something many readers here already know—which is that it's become virtually impossible to sell any sort of medium-to-high end electronics there anymore.

Timothy's email went on for about two weeks, so we've tried to edit it for length.

eBay seems now to be essentially broken. What used to be a 'virtual yard-sale' where one could hunt for - and potentially find - a good deal on a broad variety of eclectic items has now turned (in my opinion at least) into a hybrid mass of scammers and shady garage-retailers, clumped together with a straggling, dying breed of people who used to be excited about eBay, but who are now wishing it would return to what it used to be.

Don't get me wrong, I still use eBay, and have for years. My usage has varied over the years, and I'm by no means a 'power seller' on eBay, but it has always been my first stop when I'm looking to acquire an item which I wouldn't mind buying used. But a recent series of events has left a bitter taste in my mouth, making me wish eBay was what it used to be.

My experience started with a laptop which I wanted to sell - simple enough. I've sold on eBay before. "I'll just throw it up on eBay," I told my wife, "and see how much I can get for it." [ha ha ha ha ha -Ed.] It's a fine Toshiba laptop, 15.4" screen, 1.7Ghz processor. I bought it brand-new, and have treated it well since then. There's nothing wrong with it - I was just looking to upgrade to something newer and thought that I could perhaps get a few hundred dollars to offset some of the cost of buying a new laptop. So I listed the item and waited. I chose the 5-day auction option - I don't know if that really makes any difference or not (I've heard arguments both ways on the topic).

After about two days with no bids I decided to find the laptop in the listings and see how it looked compared to other listed laptops - perhaps I had made some glaring mistake which other laptop-sellers were not making. I checked and saw how long the auction had left, and viewed the 'Laptops and Computers' category (sorted by 'Ending Soonest'), and scrolled down to where my laptop ought to have been - about 6 pages in, since it still had a few days left to go. I could not find it. It appeared that my item was not listing correctly, so I contacted the eBay on-line 'Live Chat' (which, incidentally, seemed to be one of only two venues for their customers to reach them - the other being a 'contact us' form on their website [there do exist a couple of 800/888 corporate numbers, but they provide no means of reaching a human being unless you know their name ahead of time]). The Live Chat representative (pronounced "c-h-a-t-b-o-t") informed me that unless my item was listed as a 'Featured Item' (pronounced "e-x-t-r-a-T-w-e-n-t-y-D-o-l-l-a-r-s") my item would only appear after all of the items which had been listed as featured items.

So I returned to the list of items, and found that - sure enough - the 6th page which I had expected to find my item on was actually only the sixth page of featured items. It was not for another several pages that the list of featured items was finally exhausted, and the 'Time Left' column reset from '5 days' to '< 1 minute'. Once again I had to click through several pages of items which were ending before mine, until finally, around page 20, I saw my item in the queue. Great, I thought, what good is an auction if nobody sees it?
The item ultimately did get a bid, however, and I was excitedly looking at new laptops on-line. I was sorely disappointed the next day when I received the following message from eBay:

Account Security Notice: eBay Listing(s) Removed Dear loneboat (*****@*****.com), The results of the following listing(s) have been cancelled due to bidding activity that took place without the account owner's authorization: [Blah blah blah. -Ed.] eBay Trust & Safety

Yikes, I thought, some poor sap had his eBay password stolen/cracked/phished. Oh well , looks like they've graciously refunded my money. I'll just re-list it.

So I re-listed the item. This time, I lowered the minimum bid and paid for the 'featured item' option (which I thought was a stupid idea, but the only way to get my auction seen by any appreciable audience). This time, the auction ended without incident. I got an email from the bidder telling me that he was glad to have won the auction, and was excited for me to ship it... To Nigeria.

Let it be known here that though I may not be the smartest person in the world, I'm not stupid. His email went on to explain (in poor English) that he was 'on business trip to the Nigeria,' and that he was willing to pay me $1000 through PayPal for the laptop. Shortly thereafter I received an email from 'PayPal' (who is now apparently sending out their customer service emails from gMail), stating that I had received a payment, but that it would not show up in my account until I emailed them back the tracking number for the parcel. Very clever, but once again, I'm not stupid.

This time I contacted the Live Chat system. I explained the whole drama, and was told to go on the website and contact eBay's security team. I did so, and sent them the following email: [Email described the problem and included the buyer's original email along with two spoof emails from "eBay" and "PayPal". -Ed.]

I received the following response:

Dear eBay member, If you need help resetting your eBay password, or you think your account has been used without your permission, please go to the "Securing Your Account and Reporting Account Theft" Help page. Follow the steps on this page to secure your account: http://pages.ebay.com/help/confidence/ isgw-account-theft-reporting.html For further assistance with account security questions, please contact us through Live Help at: http://pages.ebay.com/help/ confidence/ato-livehelp.html Live Help will open in a new window and connect you to an Account Security Live Chat representative. ***Learn More About eBay Safety and Security*** To learn more about account security on eBay, or to report a problem with your account, please visit our Security & Resolution Center at: http://pages.ebay.com/securitycenter/ index.html The Security & Resolution Center can help you do the following: - Learn more about account protection and buying safely. - Access resources for rules, policies, protection programs, and announcements. - See important safety tips and features. - Review law enforcement information. - Access Security & Resolution Center tools, and more. Sincerely, Anna

At this point in writing this article, my emotions regarding this response from eBay are emphatically urging me to pound out several paragraphs worth of rant about how hilariously irrelevant this response is to the message I originally sent - an urge which shall be eternally frustrated, since there is nothing more to say than to simply stare at it aghast and say, 'that has absolutely nothing to do with what I sent to them. Nothing which I mentioned in the original message is even mentioned here.'

So - frustrated - I re-listed the item a third time. I waited. Same story - after waiting a few days the auction was ultimately won, again by somebody who desperately needed it shipped to Nigeria (this time they were sending it to their fiancee who was working for the 'Nigerian Peace Corps.'). 'What's wrong?', I thought, 'how hard is it to sell something on eBay nowadays?'

So I listed the item for a fourth time. This time I added the following disclaimer to the top and bottom of the listing:

Note: I WILL NOT SHIP THIS ITEM TO NIGERIA! This is the fourth time I have listed this laptop on eBay. All three of the earlier auctions were ultimately won by Nigerian scammers trying to get me to use some phony escrow service to ship the item to Nigeria. Each time I got a slew of elaborate (but grammatically poor) spoofed emails explaining to me that payment had been made to my PayPal account but would not show up until I emailed the buyer with a tracking number showing that I had shipped the item. I may not be the smartest crayon in the box, but I'm not stupid either, so I (thankfully) haven't fallen prey. But each time this happens, I lose a few days of selling time, and I really need to get this laptop sold because I need the money for something else. I truly apologize if you actually ARE on a business trip in Nigeria or need it shipped to your cousin or fiancee in Nigeria, but I repeat: I WILL NOT SHIP THIS ITEM TO NIGERIA! I'm just a poor guy trying to sell his laptop on eBay. If anyone reading this has any ideas as to how to keep people in Nigeria from bidding on or winning this item, please send a message to me via my eBay profile! Thanks! :-)

The listing posted, and I waited. A few hours later, I tried to log into my eBay account to check on it, and my username and password would not allow me to log in. I checked my email, and found the following:

Dear [redacted] (*****@*****.com), Your account was accessed by an unauthorized third party to list items without your authorization. At this time we have taken several steps to secure your eBay account. Rest assured that your credit card and banking information is safe on the eBay site, as this information is kept encrypted on a secure server and cannot be viewed by anyone. To regain control of your account, please complete the following steps: 1. Change the password on your personal email account to verify that it is secure and cannot be accessed by anyone other than you. 2. Change the password on your eBay account. Go to the eBay sign-in page, click the "Forgot your password" link, and change your password using the instructions provided. 3. Verify the contact information on your account is correct. Go to My eBay and click the "Personal Information" link under My Account. To better understand how your account was compromised, please take a moment to review the Account Protection tutorial. http://pages.ebay.com/help/tutorial/ accountprotection/js_tutorial.html We're sorry for the inconvenience, and we thank you for your patience and understanding. Sincerely, eBay Customer Support

The only thing I can figure as to why eBay locked my account and removed my listing was that my listing mentioned the word 'Nigeria'. I am positive that my eBay password was not stolen, as I have NEVER revealed my eBay password to anyone (not even my wife knows it; I don't want her to know that I buy her birthday presents off of eBay - can you blame me?).

Having nowhere else to turn, and in no real hurry, since I've lost all hope of actually selling my laptop on eBay, I contacted the security team with the following email:

I'm having a very hard time selling my item on eBay. I have listed the item four times, and each time something has gone wrong. Here are the item numbers, with descriptions of the problems: [detailed list of everything Timothy's tried up to this point. -Ed.] After the last two listings, my account was locked because eBay thought (for some reason never told to me) that the listings were due to a compromised account password - even though the listings were legitimate and posted by myself. I have now had to reset my password to something new, since eBay would not allow me to reuse the password I have used for a long time. :-( Can you please tell me what I am doing wrong? I'm just trying to sell my laptop on eBay. I have used eBay for several years, and have never had a single problem before. I am not doing anything differently - so why am I having such trouble? I would very much appreciate a phone call from a real live person who can communicate to me why I am having such a hard time. I have called customer support (1-800-322-9266 & 1-888-749-3229), but am only greeted with a recording which refers me back to the website. I have tried the online-chat, but they only refer me to the security team. I have emailed the security team, but they just say basically 'sorry, there's nothing we can do'. My phone # is ***-***-**** (US). Thank you.

About an hour later, I received the following email in my inbox:

Dear eBay member, If you need help resetting your eBay password, or you think your account has been used without your permission, please go to the "Securing Your Account and Reporting Account Theft" Help page. Follow the steps on this page to secure your account: [You know the drill by now. -Ed.] Sincerely, Anna

No joke, this is an identical email to the other one which 'Anna' had sent to me a week ago. And once again, I feel compelled to rant about exactly how much and in what ways this has absolutely nothing to do with my initial request, but (once again) I'm left with nothing to say except, 'that has absolutely NOTHING to do with what I sent to them.'
One more note - when I logged in to list my item for the fifth time, my account was once again locked. I think I'm going over to CraigsList.
Comments?? Anyone want to buy a laptop? :-|

Timothy, if you decide to try eBay a fifth time—and honestly, at this point in the company's history we wouldn't recommend it—there's an option to restrict bidding to people in the U.S. only. While this won't prevent scammers who have hijacked U.S. accounts from bidding, it will at least cut down on the number of international bids. But seriously, try CraigsList or a flyer in your neighborhood. EBay is broken.

(Photo: Getty Images)

She writes:

I handle the credit card accounts for my company. We had an inactive American Express Delta Sky Miles card that hadn't been used in several years. (3 to be exact) I called AMEX and closed the account informing the CSR that our company had another AMEX account and that was our primary. I was assured the account was closed and moved on.

Come March, our production manager made a small purchase from a company whom we use infrequently and may have had this old account number in their database (a disturbing thought). Now our production manager does not have the old card in his possession, nor does he have the old account number anywhere. One individual, our CEO, had exclusively used this particular AMEX.

I immediately called the vendor and American Express wanting to know how a transaction could clear on a closed account. The American Express CSR informed me that the account was indeed closed, but it was not uncommon for transactions to go through. I was told that recurring transactions will go through. I told the CSR the story that this was a company we infrequently purchase from, and that this card had not been used in years.

The just from AMEX – Since this was a phone order and the physical card was not used to make this purchase the transaction would have been approved. Apparently the vendor also used a dummy expiration date as the old card expired in 2007. Since the vendor keyed in the account number the transaction was permitted to go through. I told American Express that this was an appalling practice – a closed account – especially one closed 6 months ago – was a closed account and any transaction put to that number should have been declined. The CSR kept insisting that it was my responsibility to make sure all vendors eliminated the old information. This is absurd. Oh, and the CSR told me that this happens all of the time. Many of the credit card transactions machine do not require the security code to process a keyed transaction – just a number and date.

I have sent emails to whatever executives I could find at American Express, and I wanted to alert your site to this wonderful practice. I mean I had heard about ISP's and television services not actually canceling your account, but a credit card company? Seems like bad business practice if you ask me.

American Express isn't alone in keeping zombie accounts on life support. Bank of America's never-die accounts are also known for their miraculous rejuvenations, complete with unexpected service fees. The tactic lets creditors cling to customers, while appearing to oblige their reasonable requests to close their accounts. It's a disgusting practice that should be outlawed.

(Photo: danesparza)

The resulting news story has what may be the greatest sentence ever written:

The personal check was not made out to Mr. Fuller and when the bank contacted the check owner, the woman said she did not write a check for $360 billion.

Really? She didn't? You'll be shocked to hear that Mr. Fuller was also charged with unlawful carrying of a weapon and possession of marijuana. When asked why he was tying to cash a check for such a large amount, Fuller told police that the check "was given to him by his girlfriend’s mother to start a record business." No word on whether Mr. Fuller and his girlfriend are still dating.

Man accused of trying to cash check for $360,000,000,000 [Dallas Morning News]

Here's MGD's email to us:

I wanted to advise your that the fraud charge from prophotosland.com is part of a massive fraud operation perpetrated by an organized crime syndicate operated from Eastern Europe. This long running multi-year fraud operation has been hijacking millions of dollars a year from consumers debit and credit cards, virtually undetected by the financial institutions. They utilize an elaborate scheme that takes advantage of several weaknesses in the merchant account vetting system. The criminal enterprise is driven by the ability to obtain vast amounts of consumer card data.
 
I have been tracking and documenting this crime syndicate for almost three years, and have several hundred hours of research into the project. prophotosland is a subdivision documented here:
 
"fraud: www.prophotosland.com & www.photogey" [dslreports]
 
However, the master story of the criminal enterprise is here:
 
"Ebook websites, fraud charges, Devbill/DigitalAge/Pluto" [dslreports]
 
A few months ago Shaun Waterman, the UPI Homeland and National Security Editor ran a story on one aspect of the case which was published here:
 
"Analysis: Detroit trial shows cyber-scam" [UPI.com]
 
Recent victims of this fraud have included US military personnel including many stationed in Iraq, Kuwait, Saudi Arabia and Germany. There has been many reported cases of hardship as a result of having to cancel their cards due to their location. There are numerous military victim reports on the net. The first reports began shortly after rangerjoes.com database was hacked by these criminals. Many of the overseas victims had purchased supplies from there before heading offshore. Military victim reports began to show up around here:
 
Military reports on main thread [dslreports]
 
and in numerous other places on the net. Mostly under searches of the phone numbers from the fraudulent sites as they were listed on the line item charges on the statements.
 
Regards,
MGD

I just noticed a charge for $9.87 on my WAMU VISA card from someone called prophotosland.com. I had no idea who or what that was, so did a quick google search hoping to jog my memory. What I found was quite a few websites complaining about the same mystery $9.87 charge from the same company and talking about how they couldn't manage to speak with any live person at said company.
 
So I skipped right to calling WAMU to report this fraudulent charge. The person I spoke to expressed no concern at my story and promised to send me a charge dispute form in the mail. I asked her if I should worry about the fact that this is clearly not an honest mistake and she said it was nothing to worry about unless they charge my account multiple times. I asked her what about the phenomenon of multiple people having the exact same fraudulent charge on their accounts and she said WAMU could do nothing about it.
 
I find it a bit ridiculous that I have to sit around waiting for her to put this form in the mail to me (as opposed to having something built into their website) and that I have to go to the trouble of "disputing" the charges from a documented fraudulent company. I don't expect to have any problem with the dispute, but it's still a bit irritating.
 
Anyway, you might want to warn your readers to look out for this $9.87 charge... it's small enough that I imagine people who use their cards often won't really notice the difference unless they're paying attention.
 
Thanks!
Megan

I was just scammed from selling a 100$ valued best buy gift card selling it on ebay for 96$. I wanted to get an mp3 player but not from best buy because they have no selection of mp3 players greater than 20 gb at all.
 
Everything looked fine because someone bought this gift card and "supposedly" sent me the money. It was shown i had 96$ on april 3 in my paypal account, so of course i did the "right" thing and sent my card to the unfortunate fraudulent buyer.
 
Then the same day after I say i sent the package, the money gets somehow reversed. I get this notification from paypal that i might have been dealing with fraud. They notified the man and even received confirmation via email. Paypal finally gets back to me on April 22nd just saying that I did not have seller protection so they will not refund me in any sort of way.
 
I have his address, phone number and e-mail, but I do not know what to do. He has not responded to my emails though.
 
I need some advice in dealing with this besides any more pointless responses from paypal. Where is the justice? What can I do to get my money back if possible since paypal will not help or refund me? Why should only certain sellers get seller protection but not others? I would like to sell more stuff on ebay but after this risky transition I'm not so sure if I still want to. Thank you.
 
Matt

4. "Shaving"
Thieves try out 16-digit number sequences until hitting one that works. Then they take gift cards from stores and shave off the digits and glue them onto a credit card. They scratch the magnetic strip so the clerk has to enter the credit card number by hand.

3. "Minting"
Identity thieves hack into retailer's computers and get people's debt card information, manufacture new debit cards, and start making ATM withdrawals. People living in Brooklyn with their debit card inside their file cabinet all of a sudden start seeing deductions in the thousands from Bulgaria.

2. "Skimming"
Thieves fit electronic readers over the face of ATM machines, store terminals, gas machines, etc which record your credit or debit card info. Sometimes they also use pinhole cameras so they can also get your PIN. The information can then be used for minting, or bartered and sold online.

1. "Universal Default"
If you fall behind your payments with a completely different lender or service provider, your credit card company gets to raise your interest rates to the default rate, usually around 20%. Since this scam is written into your contract, it's completely legal.

(Photo: powerbooktrance)

Michael is quite an imaginary businessman in other fields as well:

During the time the fraud occurred, Michael was on probation after being convicted of practicing medicine without a license in 2005. He operated the Henderson medical facility, where he oversaw medical procedures and offered advice, according to court records.

"Man sentenced to 4 years in credit scam" [San Diego Union-Tribune]
(Photo: Getty)

From the Star-Tribune:

The couple and their three children, ages 2, 3 and 5, were living in a crowded trailer park in Blaine, when Bradley saw a newspaper advertisement touting real estate as the next quick way to make money.

"I didn't want to paint the rest of my life, and the trailer park scene was about as bad as parts of north Minneapolis," Bradley said.

Over a steak dinner at a Perkins restaurant, the couple met with two salesmen from Executive Premier Management Inc., a firm in Wayzata that described itself as a "property management company."

With no money down, they could buy properties in a fast-growing new subdivision in Otsego known as Otsego Preserve, near Interstate 94 and the Albertville outlet mall. They would get $5,000 in upfront cash for each house they purchased.

The Collins were also told that home values in Wright County were appreciating at 8 percent a year, much faster than the national average. At that rate, the Collins could make $24,000 a year for every $300,0000 house they bought in the county. They were told that rental income would cover their mortgage payments until the houses were sold.

Collin said the management company helped him apply for four mortgages within days of each other. The firm used a different lender each time, a way to hide from the banks the debt he was taking on and wouldn't be able to afford on his net income as a contractor, which averages about $60,000 a year. The "no documentation" and "no down payment" loans carried a much higher interest rate than conventional mortgages.

The couple purchased four houses — each for about $300,000 — hoping to quadruple their profits. The Collins received a $5,000 check after each closing. The cash payments were not disclosed on the mortgage statements sent to the bank, which Collin says he has since learned is illegal.

Executive Premier Management is not registered with the state, and the telephone number given to Collin no longer works. The two salespeople, Nathan Nordvik and Jonathan Matheson, do not have listed telephone numbers and could not be reached for comment.

Housing Bets Gone Bad [Star-Tribune] (Thanks, Rob!)
(Photo:Glen Stubbe, Star Tribune )

Let's listen in:

I am currently serving in the U.S. Military. After completing boot camp at the end of summer 2007 I received my orders to go to Greece - departing October 23, 2007. I was told by other military personal that I could have my Verizon Wireless cellular phone account put on hold for up to one year, as I would not have any service in Greece. I contacted Verizon who told me that it was not possible to put my account on hold. After talking to my commanding officer, I was told that the Verizon Representative I talked to was incorrect, and that - by law - I should be able to put the account on hold. Since I had already left for Greece in October 2007, my mother contacted Verizon on my behalf to, once again, put a hold on the phone and the account. This was completed in December 2007.

I was still receiving bills from Verizon Wireless after my phone was on hold, but my mother paid those bills figuring they were left over from previous months. I was unable to view my bill as I am in Greece, and I never set up an online account at Verizon's website. The bills were paid as follows AFTER the account was on hold:
February 9, 2008 for $197.57 via VISA credit card (I have a letter from Verizon confirming the payment.)
March 23, 2008 for $115.00 via Check #275

I also received a letter from Verizon on February 10, 2008 stating that I registered for "My Account" online. My mother is the person who received the letter and assumed I had set this up so I could keep an eye on my account while in Greece. I, however, never set my account up online. The next, and most recent bill sent to me is for the total amount of $779.62 - due April 23, 2008. Seeing that this was a huge amount due for a phone being on hold, and since my mother paid the past 2 bills in full, she contacted me to let me know there must be a problem. She scanned and emailed me a copy of the bill for me to review. I have noticed that now there is another name and phone number attached to my account. The new phone number is 210-[redacted] and the additional name is [redacted]. I never authorized for any additional names or numbers to be added to my account. It also seemed odd that my cell number is a 717 area code (Pennsylvania), and the number recently added to the account is a 210 area code (Texas). I searched the name [redacted] and found that she is a wanted criminal in Denton County Texas. My step father has already contacted the Denton County Police Tip Line.

I called the Verizon Wireless Customer Service line 2 days ago to get this matter resolved. I was put on hold for over 20min only to be told that I would have to contact the Fraud Department at 1-800-521-1841. I called the Fraud Department several times. I was left on hold for a representative for at least 30min each time I called. I finally received little help from a representative at the Fraud Department this morning. The call was placed on April 17, 2008 around 9am.

I explained my situation to the rep. But I was being treated as if I were the criminal. I was never asked to verify any account information. The only information taken from me was the new phone number on my account. 20min after I gave the Rep the unrecognizable number I was finally told that this new name and number was added to the account in August 2007. I was shocked! Then the Rep told me that it is my responsibility to check my account regularly, and that since it has been "almost a year" since the addition that there was suspicion as to why I was now calling. I explained that I am in the military and had orders to go to Greece and that my mother had been taking care of my bills. She did not seem to care. The Rep also told me that the new number associated with my account is a dedicated line for a laptop. This does not make any sense, as the bill clearly states that the number [redacted] is a cellular phone calling plan - with 450 general minutes for $39.99. The current bill is at almost $800 because there were 1865 minutes used (1415min over the plan) as well as text and picture messaging and a Ringback Tone. If the number were used for a laptop, why would it have all this information on the bill? I was very angry at this point because of the way the Rep handled the situation, as well as the demeanor in which she spoke to me. I explained to her that the new number is a Texas area code and that I live on the East Coast. She said since she is in New York I would have to contact the Fraud Department in the South. This is when I decided to write to the FCC, as it seems my situation is going nowhere with Verizon Wireless. Please help.

If you don't see any results from escalating your complaint, you might want to think about filing a lawsuit in Verizon in small claims court and/or maybe filing a police report. Since you're in the military, you have access to some legal help through the armed services. U.S. Armed Forces Legal Assistance, or the Naval Legal Service Office may be able to provide you with legal advice.

Anyone have advice for Barbie?

(Photo:nomad)

I would like to inform you of a problem that I'm having with Sears. I purchased a TV from Sears on Black Friday. They had a TV with a steep discount and I bought it. Of course, it wasn't in stock but they assured me that they could order it. As I was leaving town in a few days for a week of vacation, this was not a major concern.
 
Upon returning from vacation, I contacted Sears and my TV was still not in. I waited another week and the TV was still not in. So, I complained to the manager and after several terse conversations they agreed to offer a similar discount on a different television. I purchased the new TV and left happy.
 
However, as of Monday, April 14, 2008 this TV still has not been refunded from my Sears Card. I have called the Sears location and Sears Cardmember Services numerous times. I have been consistently met with what can only be described as a systemic and calculated effort to prevent me from resolving this matter. Letters have been ignored or claimed to have been lost. I have been disconnected and/or hung up on repeatedly.
 
Did you know that Sears Cardmember Services dispute department doesn't have a hold queue? Yes, you read that right. If you get transferred to "Disputes" and they don't have an available operator, you get hung up on. But I'm sure they're taking this matter seriously. I've spoken with two people (Juan and Tanaka) that flat out refused to let me speak to their supervisor.
 
I've repeatedly contacted the Sears at Chesterfield Mall where I purchased the television. When you ask for the manager her extension rings repeatedly with no answer and then hangs up on you. Apparently Sears retail frowns on voicemail as much Sears Card does.
 
I've spoken with someone claiming to be the Manager On Duty named Rob. He told me a month ago that he had refunded my money. So imagine my surprise when I received a letter on Friday, April 11 stating that Sears Card had rejected my dispute.
 
I would challenge Sears to produced one piece of evidence that shows that I picked up this television. Personally, I don't think the TV ever shipped to the store. When I went in to buy the TV that ended up with, I inquired about the original model since it was still prominently displayed on the floor with a sale price. I was told that it wasn't in stock. Having a steeply discounted television displayed that is unavailable for purchase sounds dangerously close to "bait and switch" to me, but I'm not a lawyer.
 
All I want is for Sears to refund my $1,070.74 plus any interest and/or late fees that have accumulated and they refuse to do it. I never picked up this TV as it never arrived.
 
Any help you could give me in rectifying this matter would be greatly appreciated.

Scam alert: don't buy Southwest tickets on Craigslist [Elliot]

"Patients' Data Stolen, Hospital Says " [New York Times]
(Photo: alexstaubo)

My husband received a brand new PS3 for his birthday from my (very generous) sister on April 2nd. The next night (April 3), my excitedly retired our PS2 to the closet and set up his new toy - the packaging was PERFECT, the machine was not. We weren't surprised we had received a used machine but WERE surprised that it did not work - games wouldn't register, Blu-Rays wouldn't play. His new PS3 was just an expensive piece of garbage. I called my sister who had both her receipt and the debit card she used to purchase it and we agreed to meet the next day (April 4) at our local Target which is NOT the Target she purchased it at but is closer to my house, so screw her. I politely informed the CSR that the PS3 was not only used but broken and we wanted an even exchange for the new machine. After opening the box and examining it with a member of the Electronics team, she noted that not only was the console used but the serial number did not match the serial number on the box - essentially, someone had beaten the system and we were the patsies with the POS machine.

She was as helpful as she could be but still had to call the GSLT (I think that is the acronym) to the front of the store to process the return. When Y. (male, evil) came to "help" us, he immediately told me the PS3 was not returnable. My non-confrontational sister prepared to eat the $400 but I persisted. Y. informed us that because the serial number on the console did not match the serial number on the box, there was nothing he could do to help us. I politely informed Y. that, come hell or high water, we were getting a refund. It was just a matter of how long it took. Y. politely responded, "I imagine you already got what you wanted. There is nothing else I can do for you."

I asked him to scan the box and take a peek into the PS3's history - had it been returned before? When had it been received in the store? All I wanted was the benefit of the doubt that we might have both been taken advantage of. He refused. He specifically stated that it was not returnable, it was our problem, and started walking away. When I asked if he was the story manager, he replied, "I'm in charge right now." (Which means no). He rolled his eyes when I asked if he would please call the Fairfield location and see if they would be able to help us. After wasting 5 minutes arguing with one of the most stubborn women on the East Coast, he agreed. He walked about 3 feet away (for privacy?) and picked up the big red phone to call the other location - obviously I was eavesdropping. He gave the GSLT(?) of Fairfield, Ryan, the rundown of what was happening and the impossible happened. Ryan actually wanted to see the situation resolved fairly. Ryan traced the PS3 and was able to see that it had been returned a few days before my sister purchased it. He was also able to see that the serial number on the console was NOT checked against the serial number on the box (scary what a computer can tell you) and told Y. that it was a legitimate return.

I have never seen a "manager" so angry after solving a problem. Y. told us that it was Ryan's decision if Fairfield would accept the return but it was HIS decision if Clifton would accept the return. And he had already made up his mind - no. After a 45 minute drive to Fairfield (which is about 5 minutes away - don't you love Route 3 on a Friday?), we were finally able to meet the charming Ryan who processed our return in - seriously - less then 3 minutes. It was unbelievable.

I consider myself to be a fairly informed consumer. I keep my receipts, I watch my statements, and I play by the rules - but it never would have occurred to me to open a box, remove the packaging (seriously, this PS3 was perfectly wrapped. I want the thief to come to my house and clean because he/she is METICULOUS) and compare serial numbers. It also never occurred to me that Target would accuse me (in a roundabout way) of dishonesty and fraud. All in all, it only took about 1.5 hours of my life to solve the problem but the experience has left me with a terrible taste in my mouth (or is that lunch?)

For the rest of you out there, please check the serial number of all the electronics you buy before you leave the store. You will save yourself a lot of headaches.

(Photo:Imasuperhero)

Advance Auto said a computer hacker may have gotten financial information of up to 56,000 customers at 14 stores in Virginia and seven other states. The Roanoke company said the customers shopped at the 14 stores from December 2001 to December 2004.

Even if you are rejected by Social Security, you can apply for benefits again and again, which is what both lawsuits claim insurers are taking advantage of to avoid paying benefits. The suits cite the federal False Claims Act and contend "that the insurers were knowingly committing fraud."

The insurers have claimed this is just business as usual and it's their policy to require everyone to apply—a Cigna spokesperson disingenuously says, "Our goal is to ensure that each member receives all of the benefits to which he or she is entitled." But a former Gigna employee who's now a plaintiff in one of the suits says insurers abuse the practice by routing everyone to Social Security even when it's obvious they'll never qualify.

Forcing people who are injured to apply for Social Security before paying their claims appears to bolster insurers' profits in several ways. If claimants refuse to apply, the insurers can simply stop paying their benefits, said Dawn Barrett, an employee of the Cigna Corporation, who grew frustrated sending people to Social Security and who is now a plaintiff in one of the lawsuits. More typically, she said, people apply for Social Security when an insurer tells them to. That allows the insurer to reduce its claim reserves, money that is kept in conservative investments for benefit payments. And in the insurance industry, smaller reserves mean bigger profits.

"Insurers Faulted as Overloading Social Security" [New York Times]

Sprint charges customer $2,500 [Journal Inquirer] (Thanks to Brian!)

Credit card scam requires no credit card [The Oregonian] (Thanks to Ellis!)
(Photo: Getty)

The breach appears to be one of the first in which credit card numbers were stolen while the information was in transit, or at the point of sale. One of a growing number of sophisticated attacks, it illustrates vulnerabilities in the communication between cash registers and branch servers, as Neal Krawetz of Hacker Factor Solutions has warned in research (PDF).
 
Andrew Conry of InformationWeek adds that Hannaford, in addition to the breach, has two related class action lawsuits on its hands alleging negligence in maintaining customer security. And he suggests that there might be some truth to the claims, noting that Hannaford should have noticed that "internal servers were transmitting outside the network to a strange IP. This should've raised flags somewhere—server logs, IDS logs, firewall logs."

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"4.2 Million Credit Cards Exposed In Hannaford Supermarket Security Breach"
(Photo: AP/Pat Wellenbach)