What Are Insider Threats?

Insider threats are actions taken by people inside a company that can harm the business. These people can be employees, contractors, or even business partners. Sometimes, they do these harmful things on purpose. Other times, they do it by accident, but the results can be just as damaging.

For example, a worker might accidentally share a company’s secret information with the wrong person. In another case, an employee might purposely steal customer data to sell it to someone else. Both of these are insider threats, even though one was an accident and the other was on purpose.

Why Are Insider Threats Dangerous?

Insider threats are dangerous because the people inside a company already have access to important information. They know the company’s secrets, systems, and weaknesses. Because of this, they can cause more harm than someone from the outside.

Imagine if a worker who knows all the passwords to the company’s computer system decided to share them with someone else. This could allow a hacker to get into the company’s system and steal important data. Because the worker had inside access, the hacker’s job becomes much easier.

Common Types of Insider Threats

There are different types of insider threats, and it’s important to understand each one so companies can protect themselves.

1. Malicious Insiders: These are people who intentionally want to harm the company. They might be upset with their job, want revenge, or want to make money by selling company secrets. These insiders are very dangerous because they know the company well and can plan their attacks carefully.
2. Careless Insiders: Sometimes, insiders do not mean to cause harm, but they do so by being careless. For example, an employee might accidentally click on a phishing email that gives hackers access to the company’s data. Even though the employee did not mean to do harm, the results can be just as bad as if they did.
3. Third-Party Insiders: These are people who work with the company but are not direct employees. For example, a contractor might have access to the company’s systems and accidentally leak important information. Because they are not full-time employees, they might not follow the same security rules, making them a potential threat.

How Corporate Investigations Help?

Corporate investigations are a way for companies to protect themselves from insider threats. These investigations involve looking closely at what is happening inside the company to find any problems or risks.

Investigators might look at things like emails, computer files, and even security camera footage. They do this to find out if anyone is doing something that could harm the company. If they find a problem, they can work to fix it before it gets worse.

Steps in a Corporate Investigation

There are several steps involved in a corporate investigation. These steps help ensure that the investigation is thorough and finds any potential insider threats.

1. Identifying the Problem: The first step is to figure out what the problem is. This could be a missing file, strange behavior from an employee, or a security breach. Identifying the problem early is important because it allows the investigation to focus on the right areas.
2. Gathering Evidence: After identifying the problem, the next step is to gather evidence. This could include looking at emails, checking computer logs, and interviewing employees. The goal is to find proof of what is happening so that the company can take action.
3. Analyzing the Evidence: Once the evidence is gathered, it needs to be analyzed. This means looking closely at the data to find patterns or signs of wrongdoing. For example, if an employee is sending a lot of emails to a competitor, this could be a sign that they are leaking information.
4. Taking Action: After the evidence has been analyzed, the company can take action. This might mean firing an employee, changing security protocols, or even involving law enforcement if the situation is serious. The goal is to stop the insider threat before it can cause more harm.
5. Preventing Future Threats: The final step is to put measures in place to prevent future insider threats. This could include better training for employees, stronger security systems, or regular checks to ensure everything is running smoothly.

The Role of Technology in Corporate Investigations

Technology plays a big role in corporate investigations. With the help of advanced tools, companies can monitor their systems more closely and detect insider threats more quickly.

For example, many companies use software that can track employee activity on company computers. This software can alert the company if an employee is doing something suspicious, like trying to access files they shouldn’t. This early warning system can help prevent insider threats before they cause any damage.

Case Studies: Real-Life Examples of Insider Threats

To understand how serious insider threats can be, let’s look at some real-life examples.

1. The Edward Snowden Case: Edward Snowden was a contractor for the U.S. government who leaked classified information. He had access to important files and used that access to share secrets with the public. This case shows how dangerous insider threats can be when someone with inside knowledge decides to act against the organization.
2. The Coca-Cola Recipe Theft Attempt: In 2006, an employee at Coca-Cola tried to steal the secret recipe for Coca-Cola and sell it to Pepsi. Pepsi reported the attempt to Coca-Cola, and the employee was caught. This case highlights how insider threats can be driven by greed and how they can be stopped with the right measures in place.
3. Target Data Breach: In 2013, hackers stole credit card information from millions of Target customers. The hackers gained access to Target’s systems through a third-party contractor. This case shows how third-party insiders can pose a threat, even if they do not work directly for the company.

Best Practices for Preventing Insider Threats

Preventing insider threats requires a proactive approach. Here are some best practices that companies can follow to protect themselves:

1. Conduct Regular Employee Training: Employees should be trained on how to recognize and avoid insider threats. This includes being aware of phishing emails, securing their workstations, and following company security policies.
2. Implement Strong Access Controls: Not everyone in the company needs access to all information. By limiting access to only those who need it, companies can reduce the risk of insider threats.
3. Monitor Employee Activity: Regularly monitoring employee activity can help catch suspicious behavior early. This could include checking email usage, reviewing access logs, and keeping an eye on file transfers.
4. Use Technology Wisely: Implementing the right technology can help companies detect and prevent insider threats. This could include security software, encryption tools, and regular system audits.
5. Foster a Positive Work Environment: A happy and engaged workforce is less likely to become a source of insider threats. Companies should work to create a positive work environment where employees feel valued and heard.

Insider threats are a serious risk for any company. Because these threats come from within, they can be more difficult to detect and prevent. However, with the right strategies, including corporate investigations, companies can protect themselves. By being proactive, using technology, and following best practices, businesses can reduce the risk of insider threats and keep their operations safe.If you suspect an insider threat or need help with a corporate investigation, contact Lauth Investigations International today.

The post Mitigating Insider Threats: Corporate Investigations as a Defense Strategy appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

Do thoughts of how to handle fraud and corporate crime prevention keep you up at night? Perhaps they should, because annual losses from these kinds of crimes in the U.S. are estimated to lie somewhere between $426 billion and $1.7 trillion annually. That’s a vast hole for businesses and organizations like yours to plug. How can your knowledge of fraud protect your business?

Things could be worse. Indeed, white collar crime prosecutions have dropped by more than half in the last decade. While it’s fair to say that a substantial number of these kinds of crimes go unreported, there is some reason for hope. Strategies to prevent and detect criminality in the workplace have come forwards in leaps and bounds—that is, for organizations that make the effort to engage in them. 

If you’re ready to put the right protections in place and finally get a good night’s sleep, then we’re here to assist. Our dedicated team of experts in corporate crime and fraud protect organizations like yours every day from hidden internal threats. So read on for top tips from the Lauth Investigations International corporate team on how to roll out a fraud and corporate crime prevention strategy that will make all the difference.

Simple Steps for Fraud and Corporate Crime Prevention

So, how would a seasoned investigator of crimes like fraud protect their organization from unseen bad actors? These are all proactive strategies that you can enact today:

Run a Solid Background Check on All Staff

We all like to think that we can read people well, but even those of us who have been trained to read body language prefer to back up or refute our hunches with documented evidence. It’s estimated that around 78% of job seekers lie during the hiring process, and while not all of those people are going to run a scam as soon as they get a foot in the door, some will probably try, so better not to give them the opportunity in the first place. A comprehensive background check drawing on the same databases used by law enforcement agencies should do the trick.

Restrict and Control Access to Assets

We all like to imagine that the people we work alongside every day would never do us dirty. The harsh truth is that employees are far more likely to steal if they have ample opportunity and research suggests a staggering 60% will do so if they think they can get away with it.

Simple ways to remove these dark temptations include tightly controlling access to both financial and inventory assets, conducting regular cheks, and requiring dual approval for all asset transfers. The minimal numbers of fingers in the pie and everyone with an eye over their shoulder goes a long way to preventing fraud, employee theft, and embezzlement.

Get Serious on Cyber Security

Physical inventory and financial assets aren’t the only things that can drift off when left unattended. Payment information, customer data, intellectual property, and internal communications can all fall into the wrong hands when cyber security remains in the dark ages. In the digital age, we all have a corporate crime prevention obligation in the virtual world as well as the physical one. 

Eliminate Site-Specific Threats

An on-site assessment of your security hardware and protocols is a vital step in eliminating any unnecessary vulnerabilities. Without the assistance of a keen pair of eyes, many organizations get sloppy about minimizing the risks of violence in the workplace or employees running riot in areas of the premises that they shouldn’t be able to access. A violence and threat assessment will examine this area of corporate crime prevention from the angles of both internal and externally-posed risk.

Get Your Corporate Culture In Hand

Those in the know about fraud protect themselves preemptively. It’s a simple truth that disgruntled or distressed employees are far more likely to turn on the hand that feeds them. A corporate culture that has hit the skids will always serve as a breeding ground for forms of employee misconduct such as malingering, time theft, bullying, harassment, and white collar crime. 

In contrast, strengthening your corporate culture is not only key to corporate crime prevention but also the best way to drive productivity, retention, and profits. In this endeavor, the best place to start is with a Corporate Culture Audit. From there, you can map a clear path towards the kind of crime-free and collaborative workplace that’ll see you sleeping like a baby. Ready to learn more? Connect with the Lauth Corporate Investigations team today. 

The post Fraud & Corporate Crime: How To immediately Protect Your Organization Today appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

Adding value to one’s home is an investment many homeowners hope to make to their property. One of the most common ways to do this is by renovating the interior of the home, the exterior or both. When it comes to vetting contractors for the job, consumers must be vigilant of scammers who hope to make a quick buck off an unsuspecting home owner. That’s why consumers must know the signs of a home improvement scam when they see it.

Signs of a Home Improvement Scam

No one wants to accuse a seemingly hard-working professional of being a theif or a fraud, but caveat emptor dictates that consumers must have a reasonable amount of knowledge in order to vet potential contractors.

The Door Knock

One of the hallmarks of a home improvement scam is that the contractor will cold-knock on doors claiming that they were simply “in the area” and noticed the exterior of your home could use repairs. Reputable contractors to no blindly knock on people’s doors soliciting their services.

Sloppy Seconds

A home improvement scam is usually designed to turn a quick profit, which means low material costs. Scammers will typically tell their marks that they “just happen” to have leftover materials from a previous job. Reputable contractors or builders would order fresh materials to ensure the integrity of their work.

On the Spot

Scammers typically want there to be a quick decision regarding their services. Whether it’s just a handshake or signing on the dotted line, scammers have the disposition of a stereotypical used car salesman.

Cash Only

Scammers want the entire fee to be paid up front before any work is completed, and tend to only accept cash as payment. This is to eliminate possible paper trails that would document their grifting behavior and increase the chance of facing consequences.

Permit Please?

Being a licensed contractor makes it much easier to procure building permits for various jobs. However, when a contractor is unlicensed or uninsured, they may attempt to have the mark procure the licenses—once again to avoid accountability for any wrongdoing that will take place.

I Know a Guy

When a mark does not have the funds that are “required” for a job, a scammer may suggest that you borrow money from a lender they know personally, perhaps with the promise that they can get you a low interest rate, or the “friend rate.”

Tips for Avoiding a Home Improvement Scam

• When vetting contractors for a home improvement job, make sure your list of candidates is comprised only of licensed and insured contractors. You can verify a contractor’s license through your state or county government, and ask that any candidate provide proof of insurance.
• Begin building a list of potential contractors by asking your friends and neighbors for recommendations. As long as the reference comes from a source you know and trust who has utilized that contractor’s services, the proof should be in the pudding, so to speak.
• You can also find a list of reputable contractors from your local Home Builders Association or an equivalent for your area to see if there have been any formal complaints filed against any one contractor. You can check online reviews, their Google rating, and even check with the Better Business Bureau.
• Get multiple estimates from multiple candidates. Legitimate estimates should include the description of the work requested, materials required, a completion date, and of course a price. Though it may be tempting, going with the cheapest estimate is not always the best option. If you observe huge disparities between estimates, ask the contractor in question.
• Read all contracts and legally binding documents carefully. Not all contracts will be the same state to state and you must make sure you read any documents in totality before signing. Make sure the contract includes
  • Contractor information: name, address, phone number, license number.
  • Estimated state and completion date
  • Detailed notes on the spoken terms of the agreement when consulting with the contractor.
  • A written statement of your right to cancel within three business days.
• Never pay the full amount for the completed project up front.

The post Signs of a Home Improvement Scam appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

The post Scammers Get Personal Information From Your Phone SIM appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

Mortgage Fraud

According to the Federal Bureau of Investigation’s Financial Fraud Unit, mortgage fraud exploits a consumer’s fear of losing their home to make a quick buck. Mortgage fraud schemes come in many forms, including but not limited to equity skimming, loan modifications, and foreclosure rescue schemes. The perpetrators behind these schemes are often former real estate professionals who use their intimate knowledge of mortgages to swindle homeowners in distress. Real estate agents who are currently employed can exploit their authority to bolster the validity of their scheme. The FBI and FTC advise that consumers should be wary of any unsolicited phone calls, emails, regarding their home finances, and never sign any paperwork or documentation that they do not fully comprehend.

Debit Card Fraud

Debit card fraud occurs when an individual’s debit card information is obtained to make fraudulent purchases. Debit card fraud is one of the most difficult schemes to avoid in day-to-day life, because so many Americans have gradually transitioned from carrying cash to carrying only their debit card as means of legal tender. Anyone with access to the debit card’s information—including the businesses and vendors we trust every day—can pull this information to commit a fraud. Unfortunately, the only recourse consumers have in protecting themselves is to avoid letting their card ever leave their sight, and to keep a watchful eye on their accounts and report any suspicious activity.

Charity Fraud

Perhaps one of the most despicable types of consumer fraud is charity fraud. Scammers set up shell organizations to receive donations that do not go to those in need, but rather line the scammer’s pockets. Frauds of these type spike significantly during the holidays and in the wake of natural disasters in order to exploit humankind’s benevolence. The name of the game with charities is research. Any charity worth its salt is going to stand up to a great deal of due-diligence and fact-finding. Part of being a responsible consumer is knowing where your money is going.

Lottery Fraud

Winning the lottery is a dream of many Americans, with fantasies of kicking back and never having to put in another hard day’s work for the rest of their lives. Despite the wide range of demographics with these dreams, lottery fraud scams usually effect senior citizens in the United States. The scam usually begins with a letter or email letting the individual know they have won. The correspondence usually includes details about fees that are involved with receiving their winnings. The FTC warns that individuals who have won a legitimate lottery prize of any kind should never have to pay a fee to collect their winnings, and consumers should be suspect of any unsolicited correspondence stating as such. Consumers should also be advised that United States law does not support the sale and transference of international lottery tickets, so any correspondence from international lotteries is most certainly a scam.

Identity Fraud

Studies by Javelin Strategy & Research conducted over the last seven years indicate that in 2017, there were as many as 16.7 million Americans impacted by identity fraud, with $16.8 million in stolen funds and assets. Identity theft can be committed for a number of reasons. Perpetrators can steal an individual’s information with the purpose of starting over again under a different name, or to escape their creditors. Most commonly, however, identity fraud is simply committed with the explicit purpose of stealing money from American consumers. Once a scammer has an individual’s identifying information, like dates of birth, Social Security numbers, and their mother’s maiden name, they can use that data to make fraudulent purchases in the victim’s name, withdraw funds from their bank accounts, and destroy their credit, leaving them financially arrested. The aftermath of identity fraud is devastating and can cause shockwaves across decades with exponential consequences.

If you have been the victim of a consumer fraud scam, contact a private investigator today to learn how their unique set of skills and professional autonomy can help you locate the scammer in your midst. Call Lauth Investigations International today for a free consultation (317-951-1100) and a simple solution to your consumer crisis.

Carie McMichael is the Media and Communications Specialist for Lauth Investigations International. She regularly writes on investigation, fraud, and missing persons topics. For more information, please visit our website.

The post Top 5 Most Common Frauds in 2019 appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

Smartphones have become such an integral part of our everyday lives that many users joke their devices have become grafted to their hands. We use them to maintain contact in our work and personal lives, correspond through email and social media, and a bulk of Americans have made the transition to conducting their banking through the use of mobile applications. As developers continue their bottomless pursuit to create an app for everything, more and more of our real, flesh-and-blood lives are being stored on our phones: personal details, account numbers, passwords, and other sensitive information that could be misused if it fell into the wrong hands. That’s why smartphone users have to educate themselves on the specifics of a scam called “SIM card swapping.”

What is SMS?

For many telephone, internet, and smart device developers, SMS (short message service) text messaging is the cornerstone of their services. As of 2010, it was the most utilized service provided by communication companies with 3.5 billion users. It became a vital tool in direct marketing campaigns and remains one of the most popular forms of communication in younger users. Because of the ubiquity of smartphones, many companies that require a two-step authentication process for their users’ security implement SMS as a secure means of accessing information. For example, you attempt to log in to your bank account, correctly entering your username and secure password. It’s not uncommon for banking apps to prompt a second form of verification, so the app tells you it will now be sending a four-digit verification code to your phone that you must enter on the app to confirm that you are who you say you are. The code is sent to your phone via SMS. Once this information is transmitted over SMS, users are often derelict in deleting that information from their devices. This is where users are vulnerable to the scam.

How SIM swap scams work

Smartphone users who have lost their phone or who have been the victim of a theft often have the ability to call their mobile provider and provide their secure information in order to have the provider remotely wipe the SIM card and have that information transferred to another phone. Thieves in search of secure information will use tools like phishing mail campaigns, posing as legitimate companies like insurance and credit card companies to get the victim to willingly hand over identifying information such as date of birth, address, and phone number. Once they have enough identifying information, they will call the victim’s mobile provider and pose as a customer. They claim they’ve lost their phone or their phone was stolen from them. Then, using the victim’s identifying information, they will request that the mobile provider remotely wipe their old SIM card and rewrite it to the SIM card in their new device. Just like that, the thief has any and all information that has ever been transmitted via SMS text. This leaves accounts, email inboxes, and secure information vulnerable to fraud. “A high proportion of banking customers now have mobile phone numbers linked with their accounts,” fraud prevention consultant, Emma Mohan-Satta, told Digital Trends, “and so this attack is becoming common in some regions where this attack was not previously so common. Unlike mobile malware, SIM fraud attacks are usually aimed at profitable victims who have been specifically targeted through successful social engineering.”

Who is vulnerable?

Anyone who uses their smartphone as part of a two-step authentication is vulnerable to a SIM card swap scam. Once the thief has their hands on your personal information, they can devastate you in minutes by performing bank transfers, rerouting mail, and making purchases in your name. If the SIM card contained any compromising information, such as lewd photos or inappropriate communication with another person, the perpetrators can use that information to blackmail a victim into paying a tidy sum in exchange for the return of the compromising data. A victim named Tina told Motherboard, “This just happened to me over the weekend. I lost service late Saturday night and assumed it was an issue with my always buggy iPhone. Then on Sunday morning my husband got a text from T-Mobile saying that a line on our phone plan had been cancelled (mine) and i soon discovered that $1200 had wired out of my bank account to someone in [redacted] with my same last name.”

While the cost to a single individual can be devastating, a sophisticated thief can do even more to topple a business like a house of cards. It’s common practice for some types of employers to issue their employees a company cell phone to facilitate business, and in this day and age, that almost certainly means a smart phone. Correspondence between coworkers, appointments, account numbers, and sensitive company information can be exposed and exploited for gain. Companies that carry high financial sums in their accounts can be ruined before they even realize there’s a problem.

How to protect yourself

Dependence on smart phones to facilitate two-step authentication plagues many users throughout the country who enjoy the convenience of verifying their identity through SMS. Luckily, tech sites like Motherboard recommend a few ways you can protect your identity and your monies.

Beef up account security

Many major cell phone service providers are developing new methods of two-step authentication in light of the rise of SIM card swap scams. Many offer their customers the option to set up a secure PIN for their account, completely separate from the login information used to access their account. The PIN is used as a primary verification feature specifically for when customers call into the support center for SIM card-related issues. Previously, many providers opted for a security question for this type of authentication, but the answers to these security questions can often be found on a victim’s social media, such as, “Which high school did you attend?” This way, the PIN is never transmitted through SMS text messaging, and no personal information from a social media profile can be used against them.

Don’t link your number to your online accounts

Once a thief has access to your account, they can easily reset your password and other authentication methods, making it very difficult to quash the problem. Instead of linking your mobile cell phone to your accounts, you can choose a different sort of number, such as a Google Voice number.

Many individuals and companies bypass security measures for a number of reasons, such as lack of time, interest, or the mere belief that they could never be the victim of a SIM card swapping scam. The reality is that it can happen to anyone, and there’s no shortage of victims for scammers. Users who practice their due-diligence can build a security to block them out. When the scammer hits this wall, they simply move on to the next target. Educate yourself and ensure that target isn’t you.

Carie McMichael is the Communication and Media Specialist for Lauth Investigations International. For more information on investigation topics, missing persons, and corporate solutions, please visit our website.

The post SIM Card Swapping Scams Leave Businesses Vulnerable appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

The post ShutDown: Consumer Fraud Investigations Halted appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

Elizabeth Holmes was once the shooting star of Silicon Valley. With a lifelong hatred of needles, she set out to turn the world of healthcare on its ear by developing a more efficient and inexpensive way to draw and test blood in order to screen for serious diseases. In a world where access to affordable healthcare is a hot-button issue, Holmes was slated to become a revolutionary of her own making, with

To litigators and legal commentators, Holmes’ fall from grace is a familiar narrative. Intention to defraud aside, they say the roads in Silicon Valley are paved with ambitious young entrepreneurs who are more than willing to stretch the truth in order to sell their business. They have the determination to succeed and the naivety their deception will be forgiven once their investors are flush with wealth from returns. Since this has happened before and will likely happen again, how was Holmes able to mislead investors under the radar of Theranos’ board of directors? A breakdown of the board’s composition might hold the answer.

Prior to the release of the SEC complaint, the members of the Theranos board of directors had impressive backgrounds that might leave little doubt in their abilities to supervise the good of the company. There were former politicians such as U.S. senators and former cabinet members, who dealt with high-stakes situations every day in their capacities. There were former executives with previous experience in making decisions and placing trust in competent individuals. But despite their differences in resume, they all had one glaring similarity: They were all white men, over the age of 65. Research has shown while their backgrounds might have been impressive, their homogenous nature may have played a huge role in preventing them from identifying Holmes’ fraud before it was too late.

According to Prof. Andras Tilcsik, who holds the Canada Research Chair in strategy, organizations, and society at the University of Toronto’s Rotman School of Management, diverse boards are what prevent problems in large companies, “Companies with more gender diversity on their boards, for example, are less likely to reissue financial statements because of error or fraud. Diverse groups also tend to consider more factors when making a decision. Racially mixed juries deliberate longer, share more information, discuss a wider range of relevant factors and even make fewer mistakes when recalling facts about a case. Ironically, lab experiments show that while homogeneous groups do less well on complex tasks, they report feeling more confident about their decisions.” What the research is telling us is this: The more a person looks like us, the more we are willing to trust them. The attention to detail that might have been shown by a more outwardly diverse board was not shown by the Theranos board of directors in the case of Elizabeth Holmes. The similarities shared between members of the Theranos board likely created a false sense of security and allowed Holmes’ deceptions to go unnoticed.

Diversity in expertise prevents boards from becoming too comfortable with business practices and makes them open to new ideas. Given the research on homogenized groups, it is reasonable to think this group of white men with an average age of 76 may never have questioned the veracity of Holmes’ research and her promises to deliver the next big thing in medical technology. This has happened before and is likely to happen again, because while the source of the fraud is often dealt with and forgotten, there is no examination of how board composition can enable fraud.

Carie McMichael is the Communications and Media Specialist for Lauth Investigations International, writing about investigative topics such as missing persons and corporate investigations. To learn more about what we do, please visit our website.

The post A DIVERSE BOARD COULD HAVE PROTECTED THERANOS appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

You receive a phone call and hear the voice of someone you don’t recognize. They tell you they have your child and will kill them unless you pay a ransom. They direct you not to call police or you will never see your child again.

What would you do?

You tell the person on the other end of the phone not to hang up. You don’t want to disconnect with the one person that can reunite you with your child. You plead for your child’s safe return. “Please don’t hurt her. I will do whatever you want,” you cry.

They demand you go to the bank and wire a ransom of several thousand dollars. Do you call the police? Do you pay the ransom and hope some thug will return your child to you safe?

A child going missing is every parent’s worst nightmare. For those who do have a missing child, living with such ambiguity is said to be the most traumatic of human experiences.

Sounds like a situation that only happens in the movies, right? Or, something only happening to the wealthy.

According to Newsweek, the Seattle Police Department is issuing warnings to parents advising scammers are targeting parents and demanding a ransom in exchange for the safe return of children they kidnapped . . . well, virtually kidnapped. Police throughout the country are following suit.

On March 8, 2017, in Ravensdale, Kings County, approximately 30 miles southeast of Seattle, a mother drops her children off at the school bus. Shortly thereafter, she receives a phone call from a man who threatened to kill her child if she didn’t pay a ransom.

The mother was able to reach out to the school to make sure her children were there. The school confirmed they were safe.

King’s County Sheriff’s Office told ABC News, this was the first reported incident in their jurisdiction.

In another case, a woman called a father “hysterically crying” claiming to be his daughter and stating she had been kidnapped. A man then got on the phone and told the dad if he didn’t pay a ransom, he would hurt his daughter.

Officers in Denver have responded to several reports of kidnappings. In a press release issued by the Denver Police Department, police say the caller demands a monetary payment in exchange for the release of the victim’s child. The caller dials the parents in the afternoon and demands the ransom to be wired to a bank.

After investigating the recent incidents in Denver, they determined the kidnappings were false and all children involved in the incidents were found safe.

Virtually Kidnapped Daughter

On Monday, April 16th, Sean Hollister was at his residence in Longmont, Colorado, about 15 miles northeast of Boulder, and received a frightening call from his 11-year old daughter who he thought was at school.

“My daughter was in tears, sobbing,” Hollister told the Times-Call. “I thought she was in trouble or something. She said, ‘Dad, I’m sorry I let this happen,’ which is exactly what she would say,” Hollister said.

“I said, ‘What’s wrong,’ and I offered up her name, so he knew my kid’s name,” Hollister said a man got on the phone and told him, “I got your daughter in a truck. She is on her way to Mexico.”

When Hollister told the man he was calling the police, the girl came back on the phone screaming. “Daddy, they are cutting me. Don’t call 911.”

Hollister was able to call police on his cell phone. “The caller told Hollister to get his wallet and identification and promptly leave the house.

Victims of “virtual kidnapping” describe the incident as traumatic.

Hollister’s postman was in the yard when he walked outside. “I’m mouthing ‘Help me,’ and he is freaking out,” said Hollister.

Longmont police showed up at his home fast and they took over from there and the caller hung up. Officers quickly determined Hollister’s daughter was safe.

The traumatized father would later find out the callers were trying to pull off a “virtual kidnapping” scam.

“The gap between the cops getting there and finding out my daughter is okay was terrifying,” said Hollister. “Who would think someone would be that cruel?”

Hollister’s caller had a Mexico number, but police say it is possible the caller was local and hijacked the number to appear like the call was made from out of the country.

In yet another case, a woman received a frantic call her brother had been kidnapped, injured and bleeding out, demanding thousands of dollars through a wire to return him safely. She was able to reach her brother on another phone and never paid any money, but a clear sign anyone can be a victim of this type of horrific scam.

According to FBI kidnapping expert, Agent Eric Arbuthnot, several organizations use these scams regularly to make money.

“Thousands of dollars in ransom,” said Arbuthnot. “And you’re talking about a criminal organization that is capable of doing more than one kidnapping at a time.”

According to Arbuthnot many of the cases have been happening on the West coast and along the border involving criminal organizations from Mexico, some claiming to be members of the cartel.

The FBI has seen recent increases in California, Nevada, New York, and Texas.

Monroe Police Department in Connecticut said by using social media, scammers can identify a victim, look up relatives, and reference names of family members and friends to make the call appear legitimate.

FBI Supervisory Agent Christopher Johnson said his office in St. Louis, Missouri deals with these types of crimes. “Scammers will often mention specific facts about the parent or victim, likely from information they were able to obtain online.”

Authorities say about one in five kidnapping cases are successful resulting in the criminal getting their ransom and not getting caught. While extortion has been around for decades, virtual ransom kidnapping calls are increasing around the country.

FBI Special Agent Glenn Milnor warns parents about virtual kidnapping.

With this emerging scam, the FBI has launched a nationwide campaign to warn parents to fight back against “virtual kidnapping.”

If you receive a virtual kidnapping ransom call…

Unlike traditional kidnapping schemes, a “virtual kidnapper” has not actually kidnapped anyone. According to the Federal Bureau of Investigation, if you receive a call from an individual demanding a ransom for the safe return of a kidnap victim, it is suggested you quickly evaluate the following to determine if you are receiving a legitimate ransom call:

• Caller insists you stay on the phone.
• Call does not come from your child’s cell phone.
• Caller tries to stop you from contacting the kidnap victim.
• Call includes demand for ransom to be paid via wire transfer.
• Ransom amounts may decrease quickly.

Knowing what to do

Police say it is best to hang up the phone; however, if you continue the conversation pay attention to the following:

• If you engage the caller, don’t call out your loved one’s name.
• Deliberately try to slow the situation down and ask to speak to your child directly.
• Ask “proof of life” questions like, “How do I know my loved one is okay?”
• To gain confirmation if your child is an actual kidnapping victim, ask questions only your child would know such as the name of a pet.
• Listen very closely to the voice of the person speaking. If possible record the call.
• Have someone else try to call your child’s cell phone, school, text, social media, etc., to confirm their safety.
• To buy time, repeat the caller’s request and tell them you are writing down the demand or tell the caller you need time to make arrangements.
• Don’t agree to pay a ransom: by wire or in person.
• Don’t deliver money in person.
• Immediately call your local FBI office and police.

According to the National Crime Information Center (NCIC), as of March 31, 2017, there were 86,618 active missing person cases in the FBI database, with 8,792 entered as involuntary.

Experts agree an actual kidnapping with a ransom demand is quite rare but all experts urge parents to be vigilant.

To read the FBI warning, please click here.

The post Virtual Kidnapping Scams appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..

In recent months, many Americans have been receiving calls from parts of the country they have never heard from before. They wonder to themselves, “Who could possibly be calling me from Bristol, Rhode Island? I don’t know anyone in Bristol.” They accept the call, and a voice will tell them that an agent with their firm has reviewed their case file, discovering that they hundreds of dollars in credit card debt, and must pay it all immediately, or else face a smattering of other fees for failure to pay. Fraught with the anxiety of their credit score tanking, they address an envelope to the P.O. box where the voice instructs them to send a check for the full amount. Before they place that envelope in the mail, hopefully they’ll realize they’ve just received a robocall.

They’re almost commonplace nowadays, regarded as more of a nuisance rather than a crime. Strange numbers automatically dial out to phone customers across the country, claiming they’ve won a free cruise or asking for donations to a fraudulent cause. However, many Americans are still not certain about what robocalls are, or the fact that most kinds are illegal.

Robocalls are just one of the latest tools in committing consumer fraud over the phone. There is a great deal of legislation distinguishing which types of robocalls are legal. Conventionally they permit robocalls that convey important and/or emergency information, about things like school closures or natural disasters. With the rise of robocalls at the beginning of the millennium, the National Do Not Call Registry was established so that consumers could place themselves on a list in order to avoid them. However, legitimate telemarketing firms are still allowed to contact you over the phone for legal business, as long as your number is not listed on the Do Not Call registry, and you have not formally opted out of receiving phone communication from the business. Indiana law specifically requires that all prerecorded messages that bot calls are famous for must be introduced by a live operator, as well as providing an address where the caller can be reached.

These types restrictions have forced the “robo-callers” to evolve and adapt. Conventional methods of blocking robocalls have been successful in nearly extinguishing the presence of calls to landlines. With smartphones only growing in use throughout the country, the technology designed to stop robocalls has not yet been perfected for them. The good news is that consumers (like the one receiving robo-debt-collection-calls) are never without resolve when it comes to harassing calls from a number claiming to be a collection agency.

Regardless of whom the robocall claims to represent, there is no legal obligation to speak to anyone over the phone. In the event that the call is legitimate, it is perfectly legal to communicate through your personal or business legal representation. If the call is legitimate, the lawyer can represent your interests and review your options with you. If you are without representation, you can also retain the services of a private investigator to ensure that the call is legitimate. The internet provides the ability to perform a reverse-lookup of suspicious or unfamiliar phone number, but most websites require that you pay for the search results, and after you pay, it might turn out that the information is inaccurate. The professional services of a private investigator allow them access to specific tools that provide accurate information to verify the legitimacy of the robocall. Bearing in mind that there is no agency sanctioned to harass you via telephone, consumers who sign up for the National Do Not Call Registry might find this is an imperfect solution. It will merely put you on a no-contact list required to be observed by all accredited, registered businesses. Although there might be a decrease in unsolicited calls, it still does not prevent illegitimate businesses to contact you with robocalls.

The best recommendation that the Federal Trade Commission has made to consumers who are the victim of robocalls on their smartphones is downloading a third-party mobile app that uses both the hardware and the software of a smartphone to block robocalls from plaguing your mobile device,” “Call blocking apps let you create blacklists – lists of numbers to block from calling your cell phone. Many of these apps also create their own blacklist databases from numbers that have received significant consumer complaints. They also let you create whitelists – numbers to allow – that are broader than just your personal contacts.” This process has so far proven very effective. As users utilize the application, it builds a stronger wall that keeps unwanted robocalls out.

The days of telemarketers who always call during dinner are long gone. Now robots are doing the dialing work. As technology advances, Americans feel more and more paranoid about ways the criminal element might have access to their money. Robocalls have only made it simpler to manipulate vulnerable consumers into parting with their hard-earned income. The Federal Trade Commission is attempting to evolve even faster than scammers, developing technology similar to apps like RoboKiller and Nomorbo that can keep robocall schemes at arm’s length. Professionals like lawyers and private investigators are invaluable sources when validating the legitimacy of a robocall a consumer fears might be legitimate. The most important resource, however, is an informed consumer. Vigilance and skepticism are the first line of defense when dealing with robocall consumer fraud.

The post What to Do About Robocalls appeared first on Indiana Private Investigators | Lauth Investigations International, Inc..