Reported by Kelley R. Taylor There’s a new IRS scam to watch out for. Some people are receiving cardboard envelopes in the mail containing the IRS masthead and the wording: “in relation to your unclaimed refund.” Monday, the agency warned that the mailings are a scam to trick taxpayers into providing sensitive information to thieves. The IRS says […]
Reported by Benjamin Chou, President, Personable Traditional methods of investigating financial fraud rely on manual verification and human analysis. Unfortunately, these methods often fall short when dealing with today’s increasingly complex and sophisticated fraud schemes. These shortcomings make it imperative to explore the transformative potential of artificial intelligence and machine learning for revolutionizing financial fraud […]
Reported by Harry Cassin The trustee for bankrupt crypto giant FTX Group filed a civil complaint last week against former FTX general counsel and chief compliance officer Daniel Friedberg, alleging he acted as a “fixer” who helped divert billions to FTX insiders, paid off whistleblowers and their lawyers, and collected a $3 million bonus and […]
Reported by Shayna Greene Hedge fund VR Global Partners LP sued Venezuela’s state-owned gas company Petróleos de Venezuela SA and related companies for common law fraud and violating the Securities and Exchange acts. VR Global claimed that PDVSA made false representations and/or omissions in an ongoing “fraudulent scheme” in connection with senior secured notes that it issued […]
Reported by Pedro Solimano Crypto exchange Kraken must provide a wide variety of information about its users to the Internal Revenue Service (IRS), according to a ruling in theU.S. District Court of Northern California yesterday. According to a Friday court filing, the company will need to produce full documentation for any Kraken user that bought, sold, or traded […]
Reported by Kevin Dunleavy A former statistician at Pfizer and his associate have been charged (PDF) with insider trading, using advance information on a drug trial to make more than $350,000 from stock purchases they executed one day before the company announced trial results for COVID-19 drug Paxlovid. The U.S. attorney and the Securities and Exchange Commission […]
Reported by Weston Blasi Over 300 mail carriers have been robbed in the first half of FY23, and a recent series of thefts in Wisconsin led to more than 900 stolen checks The U.S. Postal Service has issued a new warning: be careful when mailing checks. The USPS reported a recent surge in attacks on […]
Reported by John Yoon A California man was sentenced on Monday to more than six years in prison for running an $8.75 million Ponzi scheme that hinged on a nonexistent factory that was supposed to create green energy out of cow manure, federal prosecutors said. For five years, Raymond Holcomb Brewer falsely claimed to be […]
Reported by Christina Emmanouilidou One of the ways anti-fraud systems can utilise AI and machine learning is to support the detection of unusual patterns. AI and ML algorithms can sift through millions or even billions of transactions quickly to identify suspicious patterns or activities that might be signs of fraud. These algorithms learn to recognise new and […]
Reported by Bill Lumley Image: Getty Images Banks are meeting their anti-fraud responsibilities by investing heavily in techniques to keep up with the fast-evolving practices of online fraudsters, but they are finding it hard to keep up with the rapidly evolving challenge. This was a key finding of the authors of the 2023 Global Banking […]
Financial Crime News Briefs 