DataVisor Global Fraud Watch: November 2020 Edition
Meta: As the end of the year draws closer, it’s important to remember that fraud never takes a holiday. Here are some recent examples of fraud cases.
As the holiday shopping season begins, retailers know that consumers aren’t the only ones looking to cash in on good opportunities. Fraudsters are doing their part to keep companies on their toes by exploiting loyalty programs and offers, rerouting packages, taking over accounts, and stealing credit card information, among other fraudulent activities.
While shopping scams tend to take center stage during the holidays, it’s important to remember that other types of fraud still pose risks, too.
’Tis the season to remain ever vigilant about the current state of fraud and understand how to protect your company from fraud risks. Here are a few of the most recent fraud stories from around the world:
Employment Fraud: Be Careful Who You Hire
Employers usually have strong vetting processes for choosing qualified candidates. Names and certifications might match up on paper, and their references may check out. But when those candidates aren’t actually who they say they are, it can pose a significant risk to the business and the customers it serves.
This is what happened in a years-long fraud case where one Michigan woman posed as a medical professional and scammed multiple employers out of more than $2.2 million. Posing as a registered nurse, she used the license numbers of real nurses to earn prestigious positions in various healthcare firms. Her most recent job was for a medical consulting firm, which offered her a salary of $285,000 per year.
The woman had no medical training or experience, which not only put the people she consulted with at risk, but also jeopardized the reputation of the companies for which she worked.
Check Cashing Scheme Spans 12 States and Over 5,000 Checks
Even in a world driven by credit cards and contactless payments, checks are still widely used by many. One of the biggest problems is that many retailers don’t have a way to verify a check’s validity on the spot, which makes it easy for check fraud to run rampant.
One man recruited a few helpers to run a check-cashing scheme in multiple Kroger grocery stores. The team purchased merchandise and gift cards in Krogers across 12 states using more than 30 made-up names and companies. He was finally caught when using a fake license to purchase a car at an Illinois dealership. By this point, though, the team had racked up about $300,000 in personal gains.
Employees Aren’t the Only Ones Who Commit Fraud in the Workplace
It’s not uncommon to hear of employees embezzling from their employers, but this process also works in reverse. A hotel owner used an employee’s identity to finance upgrades to his hotel, including 110 flatscreen TVs and other merchandise to improve the guest experience. In total, the hotelier racked up more than $500,000 in debt in the name of his employee.
Fraud happens everywhere, and detecting fraud is everyone’s responsibility. Strong fraud detection and prevention requires a proactive approach like the one that DataVisor offers. Watch how DataVisor fights fraud live. Join our bi-weekly demo.
