DataVisor Global Fraud Watch January 2021 Edition
The effects of the 2020 global pandemic coupled with uncertainty have spilled over into the new year. A flip of the calendar hasn’t exempted companies from maintaining a watchful eye over fraud trends. Learning how fraud occurs and the lengths people will go to are impactful first steps in reviewing your own fraud detection and prevention strategies. Here’s a closer look at recent fraud cases that prove you can never be too careful:
Fraud Detection Challenges of Skimming
Skimming is a common method of fraud in which the thief takes “a little off the top” with the hope that no one will notice. Over time, bits of stolen funds can add up to serious cash and hefty losses to the business.
That’s when a person’s skimming activities can suddenly catch up to them. Giovanne Gomez, a manager at a nursing care service in Rhode Island, was recently accused of and tried for a skimming scheme involving the Medicaid program. Gomez allegedly created 30 fake timesheets for CNAs whom she said provided care services for 100 beneficiaries, resulting in a $120,000+ payout from Medicaid. She then diverted the funds into two bank accounts owned by her husband’s business.
Both Gomez and her husband were convicted after the couple used the account to make cash withdrawals, wire transfers, and tendered checks.
COVID Crime Adds to Fear, Uncertainty, and Hardships
For millions of citizens and business owners, the COVID-19 pandemic wasn’t just a public health crisis. It was also a year filled with financial hardships, fear, and anxiety. For someone to exploit others for their own financial gain during this time is underhanded and appalling — and yet it’s all too common.
Baltimore resident Nicholas White was convicted of collecting CARES Act benefits intended to provide aid to struggling workers. To access these benefits, he stole personal identifying information from his victims. He also intercepted an economic relief payment intended for a couple living in Maryland, and deposited it into an account he opened using a victim’s name, birth date, and social security number.
This act was only the latest in a series of fraud-related crimes spanning multiple months. White was also found to be involved in a massive mail theft scheme, used counterfeit money to purchase firearms, and used fake PII to qualify for a loan to purchase a Maserati.
COVID Fraud Increases Health Risks
Two Texas men were recently charged in a $317 million fraud scheme wherein they attempted to sell highly-coveted N95 masks to a foreign government. Toward the beginning of the pandemic in the United States, N95 masks were in short supply and high demand, opening the door to a bevy of fraud. In this case, the two fraudsters tried to sell 50 million masks at a 500% markup compared to the normal selling price — despite the fact that their stock of masks didn’t exist.
The government wired the money to the two criminals, but the transaction was thwarted by the Feds and the two men were captured.
We are still living in desperate times, and the need for proactive fraud detection and prevention has never been greater. Watch DataVisor fight fraud. Join our bi-weekly demo.
