Tag Archives: scams

Signs of Trouble: Preventing Counterfeit Scams on Vinted and Other Resale Platforms

Posted on by
Reply

WMaheen was thrilled to discover a new Dyson Airwrap listed on the resale website Vinted for an attractive £260. The seller had a stellar 5-star rating, and she felt confident in the buyer protection policy should any issues arise.

Airwraps are typically priced between £400 and £480 when bought new, but Maheen didn’t suspect anything amiss. “I’ve used Vinted numerous times and found it straightforward and hassle-free. I’ve never faced any problems,” she states.

However, after two weeks and roughly four uses, she noticed a troubling sign. “I saw the wires beginning to smoke, and the device felt unsafe,” she explains. Maheen reached out to Dyson and was instructed to send the Airwrap in for inspection.

The news confirmed her worst fears. “I received a letter from [Dyson] informing me that the product is counterfeit. They wouldn’t return it to me as it posed a danger,” she shares.

Maheen’s experience is not isolated. Almost 37% of individuals in the UK have encountered scams while engaging in online marketplaces like Facebook Marketplace, eBay, and Vinted, according to research by credit reference agency Experian.

Younger individuals are particularly prone to this type of fraud, with over half (58%) of Gen Z respondents indicating they have fallen victim to scams, contrasted with only 16% of those older than 55.

Nearly a quarter of victims reported losses ranging from £51 to £100, while 13% faced losses exceeding £250. A small fraction indicated that their losses fell between £501 and £1,000.

The most prevalent type of fraud encountered was receiving counterfeit goods (34%), the same fate that befell Maheen. This was followed by sellers requesting payment outside the platform (31%) and items not being delivered after payment (22%).

Scam Scene

It may appear to be a genuine product, with descriptions providing a convincing facade. Over half (51%) of fraud victims told Experian that they only realized they were scammed after the item was delivered and was found to be fake, or if the item never arrived.

The images might be sourced from other websites, potentially low-resolution or resembling catalog photos.

The price could be set lower than expected; if you begin asking questions, the seller may rush you into making a purchase and propose payment outside of the Vinted platform.

What to Do

Always diligently review the seller’s profile and read customer feedback before making any purchases on the marketplace. Aim to gather as much information as possible regarding the product prior to buying. For instance, request sellers to provide videos of their items. To safeguard yourself, utilize secure payment methods and refrain from making bank transfers.

In the unfortunate event of a scam, report it to the marketplace and seek a refund. You may need to provide a screenshot of the conversation, details about the seller or buyer, and potentially bank transfer documentation.

Although Maheen’s two-day buyer protection period on Vinted had elapsed, she believed she would reclaim her money since the item was hazardous. Nevertheless, she found it “incredibly difficult to communicate with them.”

She remarks: “It felt like I was conversing with a bot.”

With assistance from Guardian Money, she has now received her refund.

A representative from Vinted stated: “The vast majority of transactions on Vinted are successful, and our team is actively working to ensure a smooth trading experience for all members.”

“When disputes occur between buyers and sellers, we collaborate closely with our shipping partners, occasionally seeking further information or evidence to mediate before reaching a final decision.”

If appealing directly to the marketplace is unsuccessful, there are alternative steps you can take.

If you used a debit card, consider requesting a chargeback from your bank. If you paid via credit card, explore the option of a Section 75 charge, which is only applicable for purchases exceeding £100. For bank transfers, the process may be more complex, but you could be eligible for a refund using a new method. Fraud Refund Protection.

Source: www.theguardian.com

AI, Bot Farms, and Innocent Indie Victims: The Dark Side of Music Streaming Scams

Posted on by
Reply

The music industry is currently facing a struggle, particularly regarding the operations of streaming services, with unsuspecting indie artists caught in the crossfire.

Streaming platforms like Spotify and Apple Music are inundated with AI-generated tracks, which are cheap and easy to produce. In April, Deather estimated that 20,000 fully AI-created tracks—making up 18% of new releases—were being consumed daily, nearly double the number from January. Scammers often employ bots, AI, or even humans to loop these fake songs repeatedly to generate revenue, while some exploit upload services to place counterfeit songs on legitimate artist pages, siphoning off royalties.

Spotify has begun penalizing the most egregious offenders, with the statement that it is utilizing “significant engineering resources and investigations into the detection, mitigation, and removal of artificial streaming activities.” Meanwhile, Apple Music contends that “less than 1% of all streams are manipulated.” While this might sound reassuring, the global streaming business generated $20.4 billion (according to IFPI), indicating that hundreds of millions of dollars could be lost annually to fraudulent operators.

One significant issue arises from the drastically lowered entry barriers for musicians; uploading a song to streaming platforms is now much simpler than producing CDs and vinyl. However, this ease has similarly afforded fraudsters an easier path. Though the industry has declared war on this manipulation, the automatic detection systems can mistakenly flag innocent artists, leading to their music being taken down.




Spotify’s headquarters in New York. Photo: John Nacion Imaging/Shutterstock

Darren Owen, COO of music streaming service Fuga, identified a “surge in streaming scams” spreading throughout the industry since around 2021.

Utilizing AI and machine learning, FUGA assigns a “severity score” to streaming patterns and distinguishes “nonhuman listening habits” to uncover fraudulent activities. “I wouldn’t listen to the same song on different devices at once,” Owen states. Countries like India, Vietnam, Thailand, and certain areas in Eastern Europe have been flagged as hotspots for click-farm operations utilizing low-wage labor. “It’s also been revealed that organized crime is involved,” he adds.

It’s not just platforms like Germany’s Pimpyourfollower.de, which was taken down following a court order. Similar services in Canada and Brazil are also facing scrutiny from record industry trade organizations for inflating streaming numbers artificially. Universal Music Group (UMG), the world’s largest record label, has allegedly conspired to boost play counts for Kendrick Lamar’s diss track “None Like Us.”

The Guardian has spoken with several artists who find themselves in the firing line of this manipulation war.

Darren Hemmings, managing director and musician at the music marketing company Motive Unknown, reported that a recent EP saw a track’s plays spike over 1,000—an indication of manipulation. “I don’t blame them for concluding that,” he says, but adds, “it’s very much like being judged, tried, and executed all at once.” He insists he did not manipulate his streams but couldn’t identify the cause aside from climbing popularity among real listeners.

The Northern Irish rock band Final 13 experienced their music being removed from streaming services due to a sudden spike of tens of thousands of plays. They believe this surge resulted from airplay on Radio 1, yet concluded their distributors were caught up in automated manipulation. “It’s really tough for any artist to prove they didn’t [manipulate streams], but it’s even more challenging for Spotify to justify what they did,” remarks their drummer, Doubes. “[They] take it down, and that’s the end of it.”




Matthew Whiteside at night… Photo: Julie Houden

Indie artist Adam J. Morgan, known as Naked Burner, earned over 10,000 streams in a week, likely due to his music being featured in TikTok videos, but was flagged as suspicious by distributor Routenote. “I hadn’t done anything wrong, and they offered no evidence,” he states, suspecting that it was simply due to an overly sensitive algorithm. “I spent the weekend trying to understand the problem, but Spotify informed me that my music wasn’t flagged at all.” Routenote did not respond to a request for comment.

Such takedowns can disrupt musicians, hinder marketing efforts, and ultimately affect earnings. Matthew Whiteside, who heads TNW Music Label, has faced claims of artificial streaming for three different albums. He noted that TNW Music tracks had been included in a controlled playlist. “It didn’t make sense based on genre. My distributor said I could resubmit the album for $40 each time, but that’s not feasible without assurance of success.”

“Streaming generally favors smaller acts and niche genres,” he observes. “I’d be thrilled to get 1,000 streams a month with an album.” Consequently, paying to re-upload an album can be beyond the release budget.

Deezer claims to be leading the way in implementing fraud detection mechanisms. “We monitor various metrics to help our algorithms determine user authenticity,” says Thibault Roucou, reporting director at the company’s royalties department. “When we initiate a takedown, we manually review the situation to ensure it’s a serious issue.”

Regrettably, many systems that execute takedowns often presume guilt, and the appeal processes can be so complicated that many small acts, already struggling, simply give up. Levina, who represented Germany in the Eurovision Song Contest in 2017, experienced her music being removed from streaming platforms without any warning. “Appealing against them is nearly impossible,” she sighs.




Levina is the chairman of the Artist Council in the Association of High-profile Artists. Photo: Sam Rockman

She is also the chair of the Artists Council within the Feature Artists Coalition, working to establish “minimum standards for what distributors should provide.” She suggests implementing a traffic light warning system, allowing artists the opportunity to present their defense or rectify issues.

Streaming platforms and distributors assert that the focus is on containment rather than complete removal. However, Owen notes that the current issue isn’t solely about scammers perpetrating large-scale manipulations but involves subtle adjustments to numerous tracks to avoid detection.

For Hemmings, this situation could result in a two-tier streaming landscape where smaller acts abandon mainstream platforms. “This might lead to the conclusion that focusing on alternative revenue streams is a wiser choice for many within the independent music community.”

Source: www.theguardian.com

British companies recommend conducting video and face-to-face interviews to combat North Korean employment scams.

Posted on by
Reply

British companies are being advised to conduct job interviews via video or in-person to avoid the risk of inadvertently hiring North Korean employees.

The caution comes after analysts noted that the UK has become a prime target for misinformed IT workers recruited by North Korea. These individuals are typically hired to work remotely, evade detection, and funnel earnings back to Kim Jong-un’s regime.

In a recent report, Google revealed an incident from last year involving a lone North Korean operative, with at least 12 aliases operating across Europe and the US. These IT workers were seeking positions in defense and government sectors. The new tactic involves fake IT professionals threatening to leak sensitive company data post-termination.

John Hultquist, chief analyst at Google’s Threat Intelligence Group, highlighted North Korea’s shift towards Europe, particularly targeting the UK.

He explained, “North Korea is feeling the heat in the US and has shifted its focus to the UK to expand its IT worker tactics. The UK offers a broad spectrum of businesses in Europe.”

Fraudulent IT worker schemes typically involve individuals with a physical presence in countries aided by “facilitators” or agents of North Korea.

These facilitators play crucial roles like providing fake passports and maintaining local addresses. Laptops used by these individuals often connect to servers in Pyongyang, not their current location. However, they seek jobs that offer unique devices for easier monitoring.

“Ultimately, having a physical presence in the UK is key to their expansion strategy across various sectors in the country,” mentioned Hultquist.

Hultquist suggested that conducting job interviews in-person or via video could disrupt North Korea’s tactics.

Sarah Kern, a North Korean specialist at cybersecurity firm SecureWorks, emphasized that the threat is more widespread than perceived by companies.

She recommended thorough candidate screening and HR education on deception tactics. Companies should prioritize in-person or video interviews to verify the legitimacy of potential employees.

“In the US, conducting in-person or video interviews to verify candidates’ background details is effective in ensuring you’re engaging with truthful candidates,” she added.

Kern noted that IT workers may propose unconventional methods like frequent address changes or the use of money exchange services over traditional bank accounts.

Bogus IT experts are infiltrating Europe through online platforms like Upwork, Freelancer, and Telegram. Upwork stated that attempts to use false identities go against their terms of service, and they take strict action to remove such individuals.

As pointed out by Kern, North Korean IT workers often try to avoid video interviews, likely due to their working conditions in cramped spaces resembling call centers.

Source: www.theguardian.com

Meta removes over 9,000 fraudulent Facebook pages costing Australians $43.4 million in celebrity deepfake scams

Posted on by
Reply

After Meta launched a new platform for sharing fraud information with banks, celebrities and others were taken away in handcuffs. The platform blocked 8,000 pages and 9,000 celebrity scams, reducing the likelihood of Australians seeing deepfake images promoting fraudulent crypto investments on Facebook. This occurred in the first 6 months following the launch.

Between January and August 2024, Australians reported $43.4 million in losses to social media scams through Scamwatch, with almost $30 million related to fake investment scams.

Meta has been dealing with scams using deepfake images of celebrities like David Koch, Gina Reinhart, Anthony Albanese, Larry Emdur, and Guy Sebastian. Politicians and regulators have pressured the company to address these scams, especially those facilitating investment fraud.

Mining tycoon Andrew Forrest is suing Meta for failing to address fraudulent activity using his image.

Meta has partnered with the Australian Financial Crime Exchange (AFCX) to launch the Fraud Information Exchange (Fire). This channel allows banks to report known fraud to Meta, enabling Meta to notify all banks involved in fraud discovered on its platform.

Seven banks, including ANZ, Bendigo Bank, CBA, HSBC, Macquarie, NAB, and Westpac, are participating in the Fire program. Another program involving AFCX’s Intel Loop information sharing service includes banks like Optus, Pivotel, Telstra, TPG, and the National Anti Scams Center.

Since the pilot launch in April, Meta has removed over 9,000 fraudulent pages and 8,000 AI-generated celebrity investment scams on Facebook and Instagram based on 102 reports received.

While the early results are promising, the number of fire reports is low compared to the losses reported to Scamwatch, with 1,600 reported losses in social media scams in August alone.

Meta reported removing 1.2 billion fake accounts worldwide in the last quarter, with 99.7% removed before user reports.

AFCX’s Rhonda Lau mentioned that the program aims to make Australia a less attractive target for fraudsters.

Meta’s David Agranovich stated that the system will help detect fraud outside the platform, connecting the dots between fraudulent activities on Facebook and Instagram.

Meta provides the list of blocked domains to partners and will grant access to the Fire platform to its threat exchange system to detect criminal activity like covert influence operations and child abuse on the platform.

Mr. Agranovich acknowledged the frustration Australians may face in reporting fraud to Meta and mentioned plans for improvement.

Both the Commonwealth Bank and ANZ welcomed the collaboration with Meta. Deputy Treasurer Stephen Jones introduced a draft bill to combat fraud and provide a proper dispute resolution process for fraud victims, with consultations ending on 4th October.

Source: www.theguardian.com

FTC warns of increasing QR code scams – Tips to safeguard against them

Posted on by
Reply

Since the COVID-19 pandemic, codes have grown in popularity and their use in the form of paperless menus and invoices has skyrocketed. But the convenience and efficiency of scannable codes comes with threats. Users can easily fall victim to fraud. According to a report by Check Point cybersecurity experts: 587% increase In phishing, or “kissing,” the Federal Trade Commission is also warning consumers who may be putting their personal information at risk. Cybercriminals send legitimate codes (also known as “quick response” codes, traditionally seen as a mix of white and black pixels that direct the scanner to a website) by sending the scanner to a fake site. It can be hidden with a unique code that steals personal and private information. Install malware. Fake codes can be found in public places, such as parking meters, or sent via texts or emails claiming there was suspicious activity on your account or there was a problem with your package delivery. There is also. The coronavirus pandemic has seen a surge in the use of codes, offering consumers a completely paperless way to view menus, pay bills, and fill out forms. adobe stock “We want you to scan a code and open a URL without thinking,” the FTC said. was warned about Wednesday’s blog post. To protect yourself, the FTC advised inspecting before opening them to make sure they haven’t been spoofed by misspellings or transposed characters. The agency also recommends not opening codes from unexpected communications (such as urgent messages indicating problems with your account), keeping your phone updated and enabling two-factor authentication. The FTC warned the public not to scan random codes and to be suspicious of unsolicited communications containing codes. adobe stock The Federal Bureau of Investigation’s September blog post also urged consumers to be skeptical and “suspicious” of codes that request login information after scanning, and further warned consumers not to scan codes that appear to have been “tampered with.” did.

Source: nypost.com