Category Archives: Economy and Meltdown

Credit Card Fraud: Phishing Boost Card-not-Present Fraud

The rapid growth of the internet and the world wide web within the recent years has created an interesting phenomenon in e-commerce by offering buyers the expediency of buying from an ubiquitous marketplace and saving the merchants the cost of making brick and mortar investments but for fraudsters the internet has established an anonymous and low-risk avenue to steal and commit crime on the internet.

Information security has become a critical and important requirement in ecommerce as the perceptions of risk and threats continue to strengthen, this security requirement is not only the need for the protection of confidentiality and integrity of the sensitive information, but also e-commerce authentication  and verification of the identity of the cardholder during internet card payment is a crucial necessity and a major problem because of the insufficient and flawed authentication requirement by card issuers to authorise card not present transactions. On the positive side (form the customer’s viewpoint) the card issuers are generally good about responding to challenges and giving refunds, but it would be better for all concerned if the number of fraudulent card not present transactions can be reduced (Walton R. 2005, p. 4).

The e-commerce transaction uses the internet as its corner-stone and strength of operation but there is the perception that using a card to make a payment over the internet is risky and inflicted by information security imperfection which mostly lead to losses of credibility, identity-theft and impersonation. The basic requirement to make a successful card payment over the internet is mostly the provision and submission of the card & personal information, mainly static pass-codes and IDs, to the payment processor for authentication and authorisation, if the card information submitted are correct the authentication will be successful regardless if the card information was provided by the legitimate cardholder or not.

The introduction of the Chip and Pin in the United Kingdom to secure card payment at the point of sale has been a major investment and success story for retailers and the card industry, but its security capability does not extend to secure card payment when the card is not present at the point of sale and this has adversely brought more fraud concentration on this vacuum (Hunter, 2004, p. 4), resulting in utilizing the anonymity and flexibility of the circumstance to make fraudulent card payment on the internet using stolen card information.

The ability to verify that the card information submitted over the internet is done by the legitimate cardholder remains the authentication goal and a huge problem to all merchants who are accepting card payments online since transactions done in this scenario makes use of the card information as opposed to card payment made in the face to face transaction which combine the use of the physical card (what you have) and the Pin (What you know) to authenticate the transaction.

Crime can never be defeated but managed, and this can mean merely the diversion of crime techniques from one channel to another for a variety of reasons including flexibility, benefit, and risk-level (Hunter, 2006, p. 14).

The card not present transaction fraud evolves with e-commerce, but the flexibility, phenomenal and ubiquitous nature of e-commerce which allow buyers to buy from anywhere remotely brought negligence into the scenario aided by the development and introduction of more simplified technology systems which in some cases are used contrary to their purposes to facilitate card not present fraud which in the early year of e-commerce are not possible or difficult to achieve making card not present transaction fraud paramount to all card frauds on UK issued cards. As the world is changing in technology following technology advancement, almost every technology developed has brought benefits as well as attached risks, to every technology there is an anti-technology making it double edged tool to solve and unsolved.

According to academic research, card-not-present fraud has been influenced by the static nature of the payment method which is vulnerable to phishing and other type of identity theft techniques because same data is used over and over again.

Some Vulnerabilities in Card-Not-Present Solutions

  1. Verified by Visa and MasterCard SecureCode program promise additional levels of authentication using agreed personal codes or passwords provided by the card issuer, However, as with all static username and password, these could potentially be compromised by fraudsters using phishing or other identity theft techniques, furthermore, the 3D secure protocol requires an optional enrolment from the participants, if neither the card processor nor the cardholder is enrolled in the program, the 3 D secure functionality will not exist in the transaction process.
  2. Card Verification Value 2 (CVV2) & Address Verification Service (AVS)CVV2 and AVS verification was introduced by the card scheme as an additional parameter to fortify verification process of cardholders, CVV2 aimed to verify the 3 or 4 digits code on the reverse of the card, while the AVS aimed to verify the billing address of the card, by extracting all the numeric in address and post code. these information are static and used over and over again,  All the parameters required for e-commerce card not present transactions are transmitted and stored in the server, including the security code and the billing address, Vulnerabilities in the storage system can allow unauthorised access to fraudsters, Bogus merchants can sell card information to fraudsters or using phishing technique to willingly allow the cardholders to submit their card information.
  1. Rule-based and neural networks solution: The aim is to analyse transactions in real time based on the rule setting and provide a score showing an estimated level of risk associated with the transaction. The system will try to look into the history of the card being used and analyse the spending pattern, number of chargeback associated with the card, it further check the country’s IP address from where the order originated and compare it with the country of the billing address, with this system a card with billing address in United Kingdom, stolen and used by a fraudster in USA will report that the card was used outside the home country which is a signal of a possible fraud, on the other hand, Stolen card information used within the range of the spending pattern will have a good report, and card information stolen and used within the country will also have a good report because the IP address will show the same country.  Matching the billing address to the delivery address do not work for digital goods which are delivered online by email or download link after the order. And legitimate cardholders may not be able to use their card abroad, or if their spending pattern changed because of change in income.

The need and justification for alternative solution

If e-commerce is to take off, then merchants need to be reassured that the people they do business with really are the people they say they are and if consumers are to feel happy about e-commerce, they need to be reassured that their card details are not being used by thieves to make purchases on the Internet in their name, and the card issuers need to know that they are not becoming trapped into carrying a new and growing burden of fraud losses (Card Technology Today,2002, p. 11).

Paymenex: A Realistic Solution for Card-not-Present Fraud.

To cut of the influence of phishing on card-not-present transaction, card scheme should re-think. Possibly the introduction of dynamism during authentication making each transaction unique will greatly reduce the level of fraud resulting from card-not present transaction. Review has shown that new solutions has started paving way for online dynamic authentication during card-not present transaction, an example of  such solution include, the 3W Sentry Card Security Solution introduced by Paymenex Inc. The operator of the Paymenex™ TransNET which its members use to deliver Paymenex range of cards and D-Voucher to their customers. Paymenex TransNET is an all-in-one payment and financial transaction network with a sophisticated 3 tie card security that provides a secure and reliable global network for processing financial transactions.

It offers a range of value-added services which includes:

Credit Card, Debit Card, Store Value Card, MSB Card, DCA Card, D-Voucher.

Solutions for Acquirers, Card Issuers and Payment Service Providers.

Gift cards, Incentive, Point and Reward Program Providers, Money Transmitters, Bill-pay and Debt collection providers.

Store-Value and e-Voucher providers.

Commercial and business customers who require an efficient and secure financial processing platform.

Paymenex is a product of an academic research following a Professional Doctoral Research at two top UK Universities. The Paymenex Card Security applied dynamism in CNP transaction making each transaction unique, and cardholders do not need to enter any personal information to pay online. This solutions are benefited by all their range of card products: credit and debit cards, D-Voucher, MSB Card for Money Service Businesses, and DCA Card for Bill payment management.

More information


Walton, R. (2005) ‘Low-cost assurance for B2C E-commerce’, Computer Fraud & Security, 2005 (10), pp. 4-6.

Card Technology Today. (2002) ‘Card not present fraud’, Card Technology Today, 14 (7-8), pp. 11-13.

Hunter P. (2004) ‘Chip and PIN – biggest UK retail project since decimalisation, but not enough on its own to defeat card fraud’, Computer Fraud & Security, 2004 (5), pp. 4-5.

Hunter P. (2006) ‘Relentless pace of Internet trade in stolen credit card details continues’. Computer Fraud & Security, 2006 (2), pp. 14-16.

Walton, R. (2005) ‘Low-cost assurance for B2C E-commerce’, Computer Fraud & Security, 2005 (10), pp. 4-6.


Engr. Kingsley Chibuzor Aguoru BA(Hons) MSc FBCS CITP CEng MIET MIEEE CNP is a dynamic and highly-accomplished UK Chartered Engineer of the Engineering Council UK, Chartered IT Professional Fellow of the British Computer Society UK.
and an IT Leader with outstanding record of success in providing Information Technology solution development and management to companies. Expertise in developing and implementing information security solutions in a broad spectrum of industries – information technology, communications, manufacturing, engineering, healthcare, banking, retail, etc. Over 10 years experience working in Information Technology Industry, especially Financial services IT infrastructures, with more than 8 years specialization in Security solutions for payment cards, his area of interest and responsiblity focused on authentication and authorisation facets of Banking, E-commerce and E-Business security technologies, including transactions involving Financial Electronic Data Interchange (FEDI) and other types of Electronic payments, – E-money, Digital Money, E- Vouchers and the management of the associated fraud techniques.


1. Doctor of Information Security (IP) – University of East London-UK.

2. MSc in Information Technology (Information Security Major)- University of Liverpool- UK

3. BA(Hons) Business Computing – University of Teesside- UK

Listed in Marquis World Who’s Who in Scicence & Engineering

Listed in Marquis World Who’s Who in America

Listed in Marquis World Who’S Who in the World.

Workers’ Compensation Cost Containment: 3 Areas to Educate Your Workforce Against Company Fraud

During times of a weaker economy, companies need to be extra vigilant about fraud. The temptation not only increases, but the company’s ability to deal with the results weakens.

Four things to teach your workforce about fraud:

1. Define your company policy on theft and fraud.

2. If you do not have a company policy on fraud and theft, write one.

3. Explain your state’s fraud laws.

4. Tell your employees what the consequences of internal fraud are in dollar terms – how does X amount of fraud dollars affect the company 401(k) program or the health benefits.

5. Explain the time and financial costs of legal action against a fraudulent employee.

Building a safety incentive program to prevent fraud

1. Incentivize employees for not having injuries.

2. A holistic approach is best – bring in the resources you have available. Insurance investigations, state attorneys, counselors, claims professionals, medical professionals, safety professionals,  nurse case managers and loyal employees.

Fourteen Fraud and Theft Deterrents

1. Education.

2. Have consequences for committing fraud.

3. Motivate reporting fraud by offering private reporting methods such as 800 tip numbers.

4. Use guest speakers such as the local police officers, claims adjustors and private investigators.

5. Let employees know they are part of the fraud prevention program.

6. Management and clients should walk the floors one a month or once per quarter to build rapport and let the workforce know there are informed people who can handle fraud.

7. Hang posters discouraging fraud or posters on how to report fraud.

8. Hold safety meetings that discuss fraud.

9. Display suggestion boxes.

10. Hire trusted management whom employees feel they can talk to.

11. Document the work area before plant closings or layoffs, note what is present and also what it not present, such as grease on the floor.

12. Run an anti-fraud campaign before layoffs or closings. Let employees know this is not personal, it is financial. Make interactions “human” and deal with employees as individuals.

13. Include information in the form of fliers, pamphlets or newsletters on reporting fraud or the consequences of fraud with employee paychecks. (workersxzcompxzkit)

14. Inform insurance carriers and ask for assistance before a plant closing. Bring in safety employees and nurse case managers to document what the employees are or aren’t doing.

Resource:  To download or listen to FREE AUDIO PODCAST  click here:   By: Anthony Van Gorp, private investigator with 25 years experience. 

 Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.

©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: or 860-553-6604.

Work At Home Programs That Are Not Scams – Scam Free Work At Home Jobs Revealed

The internet is so full of crap these days that it’s hard to weed the scam free work at home jobs from the non scam free work at home jobs. This is especially true when it comes to work at home jobs! Most just aren’t scam free and in the end you don’t know what to trust and what not. And what is even sadder is the fact that A LOT of people, that call themselves ethical marketers, are in fact pushing this same non scam free work at home jobs junk over and over again! It makes no sense at all!

What I like to do in this short article is reveal a simple 3 step method so you can weed out the scam free work at home jobs from all that non scam free work at home jobs that is floating around the net. But before I do so, I have to add that it’s not bullet proof. Even despite this method, there are some really smart scammers out there that know these things and even counter it by using these same principles to look like a scam free work at home job. But you are looking for REAL scam free work at home jobs… right? So let’s get it kicking…

Step 1: A good, scam free work at home job page always has a good headline. Often times even a great lead capture page that goes into a salespage. This lead capture page is there to pre-qualify a prospect. If someone is serious enough, they will opt-in to get more information. Having that said, I’d like to give you 1 great example of a great page that promotes a scam free work at home job. Just go to and check it out. This page is not mine, I just wanted to send you there to show you a great example at work right this moment.

The lead page is good and the program he promotes is a very good one. It has all the features of a scam free work at home job because it delivers what it promises… pure value!

Step 2: If it sounds to good to be true, it probably is! The sad fact is that most things that sound too good to be true, are too good to be true. ESPECIALLY when you look for a scam free work at home job! This includes “get paid with survey” type of websites, “data entry” type of stuff, most online mlm’s, matrix scheme’s, etc. And if it also has a terrible salespage(read: Looks like it’s been written by a 10 year old boy)… watch out… 9 out of 10 times it is most certainly not a scam free work at home job at all! In fact… it screams NON SCAM FREE WORK AT HOME JOB if this is the case!

Step 3: Research and learn. Look… when there’s another one of those programs floating around… it is definitely worth to research it a bit to see what the experience of other people are. If it’s really a scam free work at home job! Don’t be shy… walk inside a forum and ask about their experiences with a certain program. If it’s really one of those scam free work at home jobs or not. But watch out though! There will be sad people, trying to make a quick buck, telling you that this program you want to know more info about is a scam free work at home job and then sending you to their own affiliatelink! Don’t buy into that… these guys are usually just in there for the money and they say it’s great because they want to make that extra sale or 2. I truly despise people like that… instead of pointing people to stuff that works… they just try to sell you on crappy shit and most certainly don’t want to show you scam free work at home jobs at all. I am sure that if they even had 1 ethical bone in their body’s and would review that stuff before they send it out, they wouldn’t even think twice about NOT promoting it!

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Tips On Dealing With Auto Fraud

The auto industry and their dealers are rife with scams and fraud and the potential buyer needs to be armed with the knowledge of how these scams work and how to avoid them. There are many dealers that run reputable businesses and can get buyers into a vehicle without using fraudulent means, but there are always those individuals or companies that are looking for ways to take consumers for a ride. The state of California, San Diego and Los Angeles in southern California in particular, is home to many of these scam artists. Even smaller states like Oklahoma have their share of fraud cases and attorneys there are as busy as lawyers in the larger California market. If you are fortunate, you won’t be a victim of one of these disreputable dealers, but it is wise to be aware of potential scams before you head to the dealer. Here are some tips on dealing with auto fraud.

People with bad credit are often the victim of fraud at dealerships. They are easy prey, often due to the fact that they believe they cannot get financing. The worst offenses usually occur in the finance office, where the potential buyer often lets their guard down. One way to lessen the chance of being scammed is to show up with no trade and to have your financing done through your bank, with a bank draft in hand.

One of the most common frauds committed by car dealers and one that attorneys see frequently brought to them is the advertising fee scam. Dealers slip into the contract an advertising fee. Often times the advertising fee is on the factory invoice. Dealers add in a second advertising “fee” which becomes pure profit for them. The way to avoid it is to simply ask that it be taken off the contract. If the dealer tells you that the factory doesn’t charge them an advertising fee, have them show you the invoice. If there is no fee on the invoice, which is unlikely, it is okay for the dealer to charge between 1% and 3% of the Manufacturers Suggested Retail Price or MSRP for an advertising fee. If it does not appear on the invoice, then the fee is completely negotiable. If it does appear on the invoice, then that is a case of dealer cost and is not negotiable.

If you feel you are the victim of auto fraud, the best way of dealing with it is to contact a lawyer and learn what your options and rights are. If you have a good case, a lawyer will have no problem presenting your grievance to the court.

Rishi chawla has a informative site on lemon law.
Lemon law help-Offers advice and information for owners of defective cars.

How to Report Medicare Fraud

The largest area of fraud against the government is Medicare fraud. Approximately 10% of all bills submitted to Medicare are inflated or improper, which amounts to tens-of-billions of dollars each year. The government is asking you to help save the Medicare program by reporting Medicare fraud. In fact, the Department of Justice will pay you a reward of up to 25% of what it recovers if you follow its procedure for reporting Medicare fraud. This article explains how to report Medicare fraud and what to look for to spot Medicare fraud.

Because Medicare pays out $500 billion a year, even a small percentage of fraud amounts to a lot. Because it loses 10% a year to fraud, that amounts to $50 billion a year. Below are common ways doctors and hospitals are cheating Medicare.  You are eligible for a significant monetary reward if you report one of these types of Medicare fraud.

Examples of Medicare fraud by Hospitals and Doctors

Below are just a sampling of the ways hospitals and others health care providers cheat:

  • charging for tests, services or supplies not actually provided
  • falsely stating how many hours were spent (i.e. routinely adding 30 minutes)
  • charging for tests or services not really needed (i.e. routine ordering of blood work, frequently requesting a full panel of tests where only one or two are needed, or providing psychotherapy to people with Alzheimer disease)
  • lying about any work or service performed
  • upcoding (i.e. patient really has “bronchitis”, but Medicare is knowingly billed for treating “pneumonia”)
  • billing for unallowable or unreasonable costs of goods or services
  • billing for routine supplies (i.e. band aids, lubricants, irrigation solutions, gloves, slippers, prep kits, towels, monitors, humidifiers, oxygen [by the hour], anesthesia circuits, elbow or heel pads, mask, electrodes for ECG, and foam head rests)
  • charging incremental nursing services (i.e. IV starts, and stat or monitor charges)
  • unbundling services billed to Medicare (i.e. billing for individual tasks that really consist of one larger procedure)
  • receiving or paying kickbacks for client referrals or to use particular products
  • claiming ambulance costs for routine or non emergency travel
  • using unskilled or unlicensed workers
  • Long Term Acute Care Hospital (LTACH) cheating on number of days

Medicare Fraud by Drug Companies

Pharmaceutical companies cheat Medicare in three big ways, amounting to billions of dollars each year. First, they receive kickbacks from doctors and hospitals for referring patients. Second, drug companies promote off-label uses for drugs other than what the FDA approved for its intended use. Third, by failing to follow Current Good Manufacturing Practices (cGMP) their drugs are considered adulterated.  (The FDA has strict requirements that apply to every drug manufacturer. Before a drug is approved, the pharmaceutical company must not only test the drug and prove its effectiveness, but it must establish and then strictly follow tight manufacturing procedures and controls.)

How to report Medicare fraud

The Department of Justice pays huge monetary rewards under the False Claims Act for reporting Medicare fraud. It pays up to 25% of what it recovers based upon your report of fraud, which amounts to millions of dollars. However, knowing how to report Medicare fraud is just as important as knowing about Medicare fraud. For instance, you must use an attorney to file for a monetary reward under the False Claims Act. You must also follow the government’s strict procedures for applying for a Department of Justice reward. But it can be worth the effort because the average reward for Medicare and Medicaid fraud is close to $1 million, and rewards have been as high as $100 million. It is time for you to learn how to report Medicare fraud.

Joel Hesch spent 15 years as an attorney in the Fraud Division of the Department of Justice (1990-2006) administering the national whistleblower reward program. He is the author of a recent book, Whistleblowing: A Guide to Government Reward Programs (How to Collect Millions of Dollars for Reporting Fraud). He is currently a law school professor at Liberty University and represents whistleblowers filing for monetary rewards for reporting fraud. Please visit his informative website,, which contains up to the minute updates on government reward programs.