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12 Financial Experts Who Turned Out to Be Frauds

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Trust forms the foundation of financial advice. When we hand over our hard-earned money to financial experts, we expect honesty, integrity, and genuine expertise. Unfortunately, the financial world has seen its share of wolves in sheep’s clothing—individuals who built empires on deception rather than sound financial principles. These fraudsters not only devastated countless lives but also eroded public trust in financial institutions. Understanding their tactics can help you protect your wealth and recognize warning signs before becoming a victim yourself.

1. Bernie Madoff

Bernie Madoff orchestrated the largest Ponzi scheme in history, defrauding investors of approximately$65 billion. For decades, he maintained the illusion of consistent returns while using new investor funds to pay existing clients. His fraud collapsed during the 2008 financial crisis when redemption requests exceeded available funds. Madoff’s scheme succeeded partly because of his respected position as former NASDAQ chairman, which gave him an aura of legitimacy few questioned.

2. Elizabeth Holmes

The Theranos founder promised revolutionary blood-testing technology that required only a finger prick. Holmes raised over $700 million from investors, achieving a $9 billion company valuation. Her financial fraud extended beyond technology claims—she repeatedly misrepresented revenue projections and falsified demonstrations for investors. In 2022, Holmes received an 11-year prison sentence for defrauding investors through elaborate financial misrepresentations.

3. Allen Stanford

Texas financier R. Allen Stanford sold $7 billion in certificates of deposit through his Stanford International Bank, promising returns significantly above market rates. His financial empire collapsed in 2009 when investigators discovered he had been running a massive Ponzi scheme for over two decades. Stanford’s fraud particularly devastated investors in the Caribbean and Latin America, where he had cultivated a reputation as a financial genius and philanthropist.

4. Jordan Belfort

The infamous “Wolf of Wall Street” built Stratton Oakmont, a brokerage firm that defrauded investors through pump-and-dump schemes and securities fraud. Belfort manipulated penny stocks, artificially inflating prices before selling his own holdings at a profit. His financial crimes cost investors approximately$200 million before his 1998 indictment. Belfort later reinvented himself as a motivational speaker after serving 22 months in prison.

5. Charles Ponzi

The original namesake of the Ponzi scheme promised investors 50% returns in 45 days through international postal reply coupon arbitrage in the 1920s. Ponzi never actually conducted legitimate business operations—he simply used new investor money to pay earlier investors. His scheme collapsed after just one year, but not before he had defrauded investors of approximately$20 million in today’s dollars. His name became synonymous with financial fraud schemes worldwide.

6. Lou Pearlman

Before his financial crimes were exposed, Pearlman was known for managing successful boy bands like NSYNC and the Backstreet Boys. Behind this legitimate business, he ran a $300 million Ponzi scheme through his Trans Continental companies. Pearlman fabricated financial statements for a non-existent airline and convinced investors and banks to fund his fraudulent enterprises for over 20 years before his 2008 conviction.

7. Marc Dreier

New York attorney Marc Dreier sold $700 million in fictitious promissory notes to hedge funds and investment firms. His elaborate fraud included impersonating executives, creating fake financial documents, and renting conference rooms at legitimate companies to conduct fraudulent meetings. Dreier’s scheme collapsed in 2008 when he was caught impersonating a pension fund executive in Canada, leading to a 20-year prison sentence.

8. Barry Minkow

Minkow founded ZZZZ Best, a carpet cleaning company, as a teenager. He took the company public through fraudulent financial statements showing millions in non-existent restoration contracts. After his first fraud was exposed and he served prison time, Minkow reinvented himself as a fraud investigator and pastor, only to commit securities fraud again by shorting stocks of companies he publicly accused of wrongdoing.

9. Nicholas Cosmo

Cosmo’s Agape World promised investors 48-80% returns annually through bridge loans to businesses. In reality, he operated a $413 million Ponzi scheme that collapsed in 2009. Cosmo’s fraud was particularly egregious because he had previously served prison time for financial fraud before launching Agape World, yet still managed to attract thousands of investors through promises of extraordinary returns.

10. Tom Petters

Minnesota businessman Tom Petters claimed to purchase electronics wholesale and sell them to major retailers, raising billions from investors for these purported deals. In reality, Petters fabricated purchase orders and bank statements while running a $3.65 billion Ponzi scheme. His fraud unraveled in 2008 when a company insider became a government informant, leading to Petters’ 50-year prison sentence.

11. Nevin Shapiro

Shapiro’s grocery distribution business, Capitol Investments USA, was actually a $930 million Ponzi scheme. He used his fraudulent wealth to become a prominent University of Miami booster, providing improper benefits to athletes. Shapiro’s financial fraud collapsed in 2009, revealing he had fabricated grocery contracts while using investor funds to finance his lavish lifestyle and sports connections.

12. Marcus Schrenker

Financial advisor Marcus Schrenker attempted one of the most dramatic escapes from financial fraud charges. When his investment schemes began unraveling, Schrenker faked his death by parachuting from his airplane and leaving it to crash. His financial crimes included selling annuities with hidden fees and misappropriating client funds. Authorities quickly apprehended him, ending his brief flight from justice.

Protecting Yourself in a World of Financial Deception

The common thread among these fraudsters is their ability to exploit trust through promises of exceptional returns with minimal risk. Legitimate investments involve tradeoffs between risk and reward—claims that circumvent this fundamental principle should trigger immediate skepticism. Protect yourself by verifying credentials, understanding investment mechanics, and recognizing that sustainable wealth-building rarely happens through shortcuts or “exclusive” opportunities.

Have you ever encountered investment opportunities that seemed too good to be true? What made you suspicious, and how did you respond?

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How Burglars Use Pizza Delivery Apps to Scope Out Homes

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Ordering pizza through an app is a modern convenience many of us take for granted. With just a few taps, dinner arrives at your doorstep, and you barely have to leave the couch. But what if that same convenience is being used against you? In recent years, there’s been a rise in reports of burglars exploiting pizza delivery apps to gather information about homes and neighborhoods. This isn’t just a far-fetched urban legend—it’s a real risk that can affect anyone who orders food online. Understanding how these tactics work is crucial for protecting your home and your family. Here’s what you need to know about how burglars use pizza delivery apps to scope out homes, and what you can do to stay safe.

1. Gathering Addresses and Delivery Patterns

When you place an order through a pizza delivery app, you provide your full address, phone number, and sometimes even delivery instructions. While most delivery drivers are honest, some bad actors may use this information to identify which homes are occupied, which ones are frequently ordering late at night, and which addresses seem to be empty during certain hours. Burglars can use this data to create a map of potential targets, especially if they have access to delivery records or work for a delivery service themselves. This is why it’s important to be cautious about the information you share and to use reputable apps with strong privacy policies.

2. Scoping Out Neighborhoods Under the Guise of Delivery

Pizza delivery drivers are common in most neighborhoods, so it’s easy for someone to blend in while scoping out homes. Burglars may pose as delivery drivers, walking up to doors, peering through windows, and noting security features or lack thereof. They can observe which homes have security cameras, which ones have dogs, and which ones seem unprotected. This reconnaissance allows them to plan break-ins with minimal risk of being caught. If you notice someone lingering around your property or acting suspiciously, don’t hesitate to report it to your local authorities.

3. Identifying Vulnerable Entry Points

During a delivery, a person has a legitimate reason to approach your front door, porch, or even side entrances. This gives them a perfect opportunity to look for vulnerabilities—like unlocked gates, poorly lit areas, or windows left ajar. Some may even take note of whether you have a security system sign or visible cameras. If you regularly order food, make sure your entry points are secure and well-lit, and consider installing visible deterrents like motion-activated lights or security cameras.

4. Timing Break-Ins Based on Delivery Schedules

Burglars are observant. If they notice that you order pizza every Friday night at 7 p.m., they can assume you’ll be distracted or away from certain parts of your home during that time. Some may even use the delivery as a distraction, knocking on your door while an accomplice checks for unlocked doors or windows elsewhere. To avoid this, vary your delivery times and avoid establishing predictable routines. Always double-check that your doors and windows are locked before your food arrives.

5. Exploiting App Glitches and Data Breaches

Like any online service, pizza delivery apps are vulnerable to data breaches. Hackers can access customer databases, exposing addresses, phone numbers, and order histories. This information can be sold on the dark web or used directly by criminals to target homes. To protect yourself, use strong, unique passwords for your accounts and monitor your app settings for any unusual activity.

6. Social Engineering Through Delivery Interactions

Some burglars use social engineering tactics during deliveries to gather more information. They might ask seemingly innocent questions about your schedule, who else lives in the home, or when you’ll be home next. These questions can seem like friendly small talk, but they’re actually attempts to gather intel. Be cautious about sharing personal details with anyone who comes to your door, even if they seem trustworthy.

7. Using Fake Orders to Test Security

In some cases, burglars place fake pizza orders to see how homeowners respond. If you open the door without checking who’s there, or if you leave the door unlocked while waiting for your food, you could be making yourself an easy target. Always verify the identity of your delivery driver, and never open the door to someone you weren’t expecting. If something feels off, trust your instincts and keep your door closed.

Staying One Step Ahead: Smart Habits for Safe Deliveries

The convenience of pizza delivery apps shouldn’t come at the cost of your safety. By understanding how burglars use pizza delivery apps to scope out homes, you can take proactive steps to protect yourself. Secure your entry points, be mindful of the information you share, and stay alert to unusual activity in your neighborhood. Simple habits—like varying your delivery times, using reputable apps, and installing visible security measures—can make a big difference. Remember, your home’s security starts with awareness and vigilance.

How do you keep your home safe when ordering food online? Share your tips or experiences in the comments below!

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10 Things You Should NEVER Ask Someone Who’s Been to Prison

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Navigating conversations with someone who’s been to prison can be tricky, especially if you want to build trust and avoid causing discomfort. Many people don’t realize that certain questions can reopen old wounds, reinforce stigma, or even impact someone’s ability to reintegrate into society. With over 600,000 people released from state and federal prisons each year in the U.S., chances are you’ll encounter someone with this experience—whether at work, in your community, or even within your family. Understanding what not to ask is crucial for fostering respect and supporting successful reentry. This guide will help you avoid common pitfalls and make more informed, compassionate choices in your interactions.

1. What Did You Do?

Asking directly about the crime is one of the most invasive questions you can pose. For many, their conviction is a deeply personal matter and reliving it can trigger shame or anxiety. The U.S. Department of Justice reports that nearly 1 in 3 Americans has a criminal record, but not all convictions reflect the person’s character or current life. Instead of focusing on the past, prioritize the present and future. If someone wants to share their story, let them do so on their own terms.

2. Were You Scared in Prison?

This question can trivialize the trauma many people experience behind bars. Research from the Prison Policy Initiative highlights that incarcerated individuals face high rates of violence, with over 200,000 assaults reported annually in U.S. prisons. Asking about fear can force someone to relive traumatic events and may make them feel unsafe or judged. Instead, offer support by listening without probing for sensational details.

3. Did You Meet Any Famous Criminals?

Curiosity about notorious inmates might seem harmless, but it reduces a person’s experience to entertainment. This approach ignores the real challenges of incarceration, such as isolation, loss of autonomy, and the struggle to maintain relationships. Focusing on celebrity criminals can make someone feel like their pain is being minimized or turned into a spectacle. Keep the conversation centered on the individual, not sensational stories.

4. How Long Were You In For?

While this might seem like a neutral question, it often leads to judgment or assumptions about the severity of someone’s crime. Sentencing disparities are well-documented, with people of color receiving longer sentences for similar offenses compared to their white counterparts, as shown by the Sentencing Project. Instead of asking about the length of time served, focus on the person’s current goals and achievements.

5. Are You Allowed to Vote or Get a Job?

Questions about legal restrictions can be a painful reminder of the barriers faced after release. Over 4.6 million Americans are disenfranchised due to felony convictions, and unemployment rates for formerly incarcerated people are five times higher than the general population. Rather than highlighting these obstacles, offer encouragement and ask how you can support their ambitions.

6. Do You Regret What You Did?

This question assumes guilt and can come across as judgmental. Many people have already gone through extensive rehabilitation and self-reflection. The focus should be on growth and positive change, not forcing someone to justify or relive their past. If you’re interested in their journey, ask about what they’ve learned or how they’ve changed, but only if they’re comfortable sharing.

7. Are You Still Friends With People From Prison?

Friendships formed in prison are often based on survival and mutual support. Asking about these relationships can feel intrusive and may bring up complicated emotions. Maintaining contact after release can be difficult due to parole restrictions or the desire to move forward. Respect their privacy and let them decide what to share about their social connections.

8. Did You Deserve Your Sentence?

This question puts someone on the defensive and can reopen feelings of injustice or resentment. The criminal justice system is far from perfect, with wrongful convictions and sentencing disparities affecting thousands each year. Instead of questioning the fairness of their sentence, focus on how they’re rebuilding their life and what support they need.

9. What Was the Worst Thing That Happened to You Inside?

Probing for traumatic stories can be deeply harmful. Studies show that over half of incarcerated people have experienced serious psychological distress, and many develop PTSD as a result of their time inside. Instead of seeking out painful details, offer empathy and a willingness to listen if they choose to open up.

10. Are You Going Back?

This question reinforces negative stereotypes and can undermine someone’s confidence in their ability to succeed after release. Recidivism rates are often cited—about 44% of released prisoners are rearrested within the first year—but these numbers don’t reflect the full picture. Many people work hard to rebuild their lives, find stable employment, and reconnect with family. Show your support by expressing belief in their potential and celebrating their progress.

Building Respectful Connections After Prison

Conversations with someone who’s been to prison should be rooted in empathy, not curiosity or judgment. The primary keyword, “someone who’s been to prison,” is central to understanding the real challenges faced during reentry. By avoiding intrusive questions and focusing on support, you help break down stigma and create opportunities for genuine connection. Remember, everyone deserves a chance to move forward without being defined by their past. If you’re unsure what to say, simply listen and let the person guide the conversation. How can you help create a more welcoming environment for someone who’s been to prison in your community?

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The Dark Web’s Strangest Crimes You’ve Never Heard Of—And Why They’re Thriving

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Most people have heard of the dark web—a hidden corner of the internet that operates out of reach from traditional search engines. It’s often associated with illegal activities, but you’d be surprised at the variety of strange and unusual crimes that thrive in these shadowy spaces. While some are shockingly sinister, others are so bizarre that they almost defy explanation. Let’s take a closer look at the dark web’s strangest crimes and explore why this digital underworld continues to flourish.

1. Digital Hitmen for Hire

Hiring a hitman sounds like something straight out of a Hollywood thriller, but on the dark web, it’s disturbingly real. What’s even more bizarre is that some of these so-called “hitmen services” are elaborate scams designed to con people out of their money. Desperate individuals pay thousands of dollars to hire someone for a crime that will (thankfully) never happen. However, in rare cases, legitimate operators have been uncovered, revealing a chilling reality. The anonymity of the dark web makes it an ideal platform for these heinous activities to exist in the shadows.

2. Black-Market Organ Brokering

While the trade of illegal organs may sound like an urban legend, it’s a thriving market on the dark web. Desperate buyers and sellers connect in this underground network to negotiate the trade of kidneys, livers, and other organs. Shockingly, these transactions often occur without legal oversight or medical safety standards, putting countless lives at risk. Economic disparities and inadequate access to healthcare fuel the demand, while the secrecy of the dark web provides a safe haven for this black-market trade.

3. Surprise “Loot Boxes”

A terrifying twist on the concept of loot boxes in gaming, some dark web sites claim to sell “mystery boxes” filled with unknown items. Buyers purchase these boxes without knowing what’s inside, but rumors suggest that the contents can range from harmless junk to genuinely disturbing items, like stolen personal belongings or unsettling photographs. These boxes play on the human fascination with curiosity, turning it into a profitable—and unnerving—business model.

4. Ransomware-as-a-Service

Cybercrime has become surprisingly accessible, thanks to dark web services that allow anyone to rent ransomware tools. Known as Ransomware-as-a-Service (RaaS), these platforms let criminals with little technical knowledge execute high-stakes cyberattacks. Users simply pay a fee to access software that can lock victims out of their data until a ransom is paid. The strange part? Some RaaS providers even offer “customer support” to ensure their clients successfully deploy their attacks.

5. Wildlife Trafficking Networks

It’s not just humans who fall victim to the dark web—animals do too. The illicit trafficking of exotic wildlife, including endangered species, has found a home in the dark corners of the internet. From rare bird eggs to exotic reptiles, buyers and sellers use the anonymity of the dark web to circumvent international laws. The bizarre and tragic demand for these creatures puts countless species at risk of extinction.

6. Counterfeit Citizenship Services

For those desperate to escape their country or reinvent their identity, the dark web offers counterfeit passports and citizenship services. What makes this especially strange is the level of detail in these fake documents, which often include elaborate backstories and supporting paperwork. Some users even purchase entire “new identities,” including fake online histories and social media accounts.

7. Data Trafficking Auctions

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While stolen credit card information and personal data are known commodities on the dark web, some criminals take it to the next level by hosting live auctions for massive data breaches. Companies’ confidential files, government documents, and even celebrity information are put up for bids. The auction format adds a sinister layer of gamification to the already dubious act of data theft.

Why These Crimes Thrive

So why does the dark web continue to be a hub for such unusual crimes? Its very nature—a hidden, encrypted network—makes it difficult for authorities to monitor and control. Users leverage anonymity tools like Tor to remain untraceable, giving them the freedom to engage in activities that would otherwise be impossible. Moreover, the global reach of the dark web connects criminals and buyers from different corners of the world, making enforcement a monumental challenge.

Economic desperation, human curiosity, and the growing sophistication of technology further fuel these crimes. The result? A thriving ecosystem that caters to both sinister intentions and bizarre impulses.

A Strange and Sinister World

The dark web may seem like a place of mystery, but it’s also a stark reminder of the dangers of anonymity and unchecked technology. While not all activities on the dark web are illegal, the ones that are can have devastating consequences. By raising awareness about these strange crimes, we can better understand the risks they pose and work toward creating solutions.

Have you ever been curious about the dark web or heard stories of unusual crimes? What are your thoughts on how we can combat this hidden underworld? Share your insights in the comments below—I’d love to hear your perspective.

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10 Scary Reasons You Should Never Ignore a Strange Car Parked Near Your House

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It’s easy to overlook a strange car parked near your house, especially if it doesn’t seem to be causing any immediate trouble. But what if that vehicle isn’t just a coincidence? A parked car that lingers too long could be a sign of something far more concerning, from criminals scouting out your home to someone watching your family. Ignoring it could put your safety at risk in ways you might not expect. Before you dismiss that unfamiliar vehicle, consider these 10 unsettling reasons why you should pay closer attention.

A Suspicious Car Could Be Scoping Out Your Home

If a car has been parked near your house for an unusual amount of time, it could mean someone is watching your home for the wrong reasons. Criminals often case houses before committing a break-in, noting when people leave, when they return, and whether security cameras are present. They may also be looking for weak points in your home, such as an open garage or an unlocked window. Ignoring the vehicle could give them the green light to move forward with their plans. If something feels off, trust your instincts and report it to local authorities.

It May Belong to a Stalker

In some cases, a car lingering near your home could be a sign that someone is stalking you or a family member. Stalkers often gather information about their targets by watching their daily routines and looking for opportunities to approach them. If you’ve noticed the same vehicle repeatedly, especially if it’s parked in different spots nearby, it could be cause for concern. Document the car’s details, such as its make, model, color, and license plate, and report your suspicions if the situation persists. Taking action early can prevent things from escalating.

It Might Be Linked to a Crime

A strange car parked near your house could be connected to criminal activity in your neighborhood. Drug deals, human trafficking, or other illegal activities often involve vehicles parked in inconspicuous areas. If you notice unfamiliar people coming and going from the car, exchanging items, or behaving secretively, it’s a red flag. Criminals rely on people ignoring suspicious behavior, so staying vigilant can help prevent crime in your community. If you suspect something illegal is happening, alert local law enforcement rather than confronting the situation yourself.

It Could Be a Getaway Vehicle

Criminals often leave getaway cars parked in residential areas before committing crimes, whether it’s robbing a home, a business, or even committing a more serious offense. These vehicles allow them to make a quick escape without drawing attention. If the car is running without anyone inside or has been parked for a long time with no movement, it could be suspicious. Paying attention to these details and alerting authorities when necessary can prevent a crime before it happens. Your report could make all the difference.

Someone May Be Watching Your Kids

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If you have children who play outside or walk home from school, a strange vehicle parked nearby should immediately raise concerns. Predators often use cars to observe and track children’s routines, looking for moments when they are alone or vulnerable. If you notice a car parked in a way that seems to be watching your home or your children, it’s better to be safe than sorry. Teach your kids to be aware of their surroundings and report anything suspicious to you immediately. Keeping a record of the vehicle and its occupants can be crucial in preventing a potential threat.

The Driver Could Be Looking to Steal Packages

Porch pirates are more common than ever, and many use parked cars to blend into the neighborhood while they wait for delivery trucks to drop off packages. If a car has been sitting near your home around the time of expected deliveries, the driver may be watching for an opportunity to snatch packages from your doorstep. These thieves move quickly, and their cars allow them to cover multiple homes in a short time. Installing security cameras and reporting suspicious activity can help deter them from targeting your home.

It Might Be a Sign of Identity Theft

Identity thieves sometimes rummage through trash bins or mailboxes in search of sensitive information. If an unfamiliar car is parked near your home late at night or early in the morning, it could mean someone is looking for documents with your personal information. Credit card offers, bank statements, and other mail can be used to steal your identity. Shredding documents before discarding them and securing your mailbox can prevent you from becoming a victim. If you notice a vehicle that seems out of place, consider notifying the authorities.

It Could Indicate an Attempted Home Invasion

A parked car that appears occupied but never moves could be a sign that someone is planning a home invasion. Criminals may sit in a vehicle for hours, watching your house to determine when you leave, when you sleep, and whether you have security systems. They may also be checking if you have a dog or if your neighbors would notice unusual activity. If you see a car lingering too long, don’t hesitate to call the police. A proactive approach can stop a break-in before it happens.

It Might Be Someone Pretending to Be a Utility Worker

Scammers often pose as utility workers, repairmen, or surveyors to gain access to homes. They may park near your house while they scope out the area or look for an opportunity to approach your door. If a vehicle has an official-looking logo but something feels off, ask for identification and verify their credentials before allowing them onto your property. Many legitimate workers carry identification that can be confirmed with a quick call to the company. Don’t let a uniform or a clipboard trick you into letting a potential scammer inside.

It Could Be a Stolen or Abandoned Vehicle

Sometimes, a car parked near your home isn’t targeting you specifically but could still pose a problem. Stolen vehicles are often abandoned in quiet neighborhoods until the thief decides to retrieve them later. If a car looks neglected, has broken windows, or seems out of place, it may have been stolen. Reporting it to the authorities can help recover the vehicle and prevent crime in your area. It’s always better to check than to assume it’s harmless.

Never Ignore a Strange Parked Car

A strange car parked near your home is never something to ignore. Whether it’s a potential burglar, a stalker, or a scammer, taking early action can prevent a dangerous situation. If you ever feel uneasy, document the vehicle’s details and notify the authorities rather than confronting the driver yourself. Your safety and the security of your home should always come first. The more vigilant you are, the less likely your home will be an easy target.

Have you ever encountered a suspicious vehicle near your home? What did you do about it? Share your experience in the comments below and help others stay safe!

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14 Online Behaviors That Put You at Risk of Cybercrime

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online risky behaviors that lead to cybercrime

In today’s digital age, the internet has become an integral part of our daily lives, offering convenience, connectivity, and countless opportunities. However, along with its benefits come risks, particularly regarding cybersecurity. With over 2328 attacks per day, there is a hacker attack online about every 39 seconds. There are some behaviors online that put you more at risk of cybercrime than you may be aware.

Cybercriminals constantly evolve tactics to exploit vulnerabilities and steal sensitive information from unsuspecting individuals. While technology has advanced to combat cyber threats, individuals must also be vigilant and aware of their online behaviors that can expose them to cybercrime. Here are 14 common online habits that can put you at risk.

1. Weak Passwords

weak passwords

According to Verizon’s annual Data Breach Index Report, up to 80% of successful data breaches result from compromised login credentials. Using simple or easily guessable passwords makes it easier for cybercriminals to access your accounts. 

As many as 2 in 3 users are at risk for data breaches because of their passwords. Strong, unique passwords that combine letters, numbers, and special characters are essential for better security.

2. Reusing Passwords

reusing passwords cybercrime

A study found that 34% of respondents use a variation of the same password across multiple sites. Using the same password across multiple accounts increases the risk of a security breach. If one account is compromised, cybercriminals can also gain access to other accounts.

3. Clicking on Suspicious Links

phishing scams

Clicking links in unsolicited emails, pop-up ads, or social media messages can lead to phishing scams or malware infections. Always verify the source and legitimacy of links before clicking on them.

Cybercriminals are constantly changing their tactics to make phishing scams more believable. Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank, credit card company, or utility company. 

4. Ignoring Software Updates

software updates to avoid cybercrime

Neglecting to update your operating system, antivirus software, web browsers, and other applications leaves your devices vulnerable to known security vulnerabilities. Install updates regularly to patch security flaws and protect against cyber threats.

5. Downloading Unauthorized Software

downloading suspicious software

Downloading pirated software, games, movies, or music from untrusted sources often exposes users to malware, ransomware, or other malicious software hidden within the files.

6. Sharing Personal Information

identity theft

Revealing sensitive personal information such as full name, address, phone number, or financial details on social media platforms or unsecured websites can lead to identity theft or fraud.

If you believe your information has been compromised, you can report it to the FTC. This can help you determine the next steps and prevent fraud and identity theft in the future.

7. Using Public Wi-Fi Unprotected

public wifi security risk

Connecting to public Wi-Fi networks without using a Virtual Private Network (VPN) or other encryption measures exposes your data to interception by cybercriminals monitoring the network. This risky online behavior makes you an easy target for cybercrime.

8. Ignoring Privacy Settings

data privacy settings online security

Failing to review and adjust privacy settings on social media accounts, online profiles, or mobile apps may inadvertently expose your personal information to the public or third-party advertisers. 

Pew Research found that only about one in five adults say they always or often read a company’s privacy policy before agreeing to it.

9. Falling for Social Engineering Tactics

hacked from falling for social engineering

Cybercriminals often employ social engineering techniques to manipulate users into divulging confidential information or performing actions that compromise security, such as posing as tech support or a trusted acquaintance. 

10. Not Backing Up Data

external devices to prevent data loss

Failing to regularly back up important files and documents can leave you vulnerable to data loss in the event of a cyber attack, ransomware infection, or hardware failure. You can choose to back up files to the cloud or external devices.

11. Overlooking Email Security

ignoring email security online behavior putting you at risk

Opening email attachments or downloading files from unknown senders without verifying their authenticity can lead to malware infections or phishing attacks.

12. Ignoring Two-Factor Authentication

ignoring two step authentication online behavior that can put you at risk

Disabling or neglecting to enable two-factor authentication (2FA) on online accounts leaves them more susceptible to unauthorized access, as it adds an extra layer of security beyond just a password. 2FA usually requires your password and another factor such as a security token or biometric factor.

13. Engaging with Untrustworthy Sites

online gambling risky behavior

Participating in online activities such as illegal file sharing or gambling on untrustworthy websites increases the likelihood of encountering malware or falling victim to scams. These online behaviors put you directly at risk of cybercrime.

14. Not Monitoring Financial Accounts

checking financial accounts

A recent Ipsos poll found that nearly 1 in 3 Americans have been victims of online financial fraud or cybercrime. Failing to regularly monitor bank statements, credit card transactions, and other financial accounts for unauthorized activity may delay detecting fraudulent charges or identity theft.

Staying Safe Online

managing online behaviors that put you at risk

Safeguarding against cybercrime requires awareness, vigilance, and proactive measures to protect yourself online. By avoiding these risky online behaviors and adopting good cybersecurity practices, you can reduce your risk of falling victim to cyber threats and ensure a safer digital experience. 

Remember, staying informed and exercising caution are crucial steps in defending against the ever-evolving landscape of cybercrime.

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How Epsilon Data Management Facilitated Elder Fraud Schemes and What to Do if You Lost Money

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Epsilon Data Management Fraud Case

Between 2008 and 2017, Epsilon Data Management sold lists of customer names and addresses to companies involved in fraudulent activities. These companies sent letters or emails to consumers saying they won a big prize or free psychic reading if they paid a reasonable fee. These scams were aimed at the elderly and other vulnerable individuals who paid the companies for the prizes or physic readings and received nothing in return.

The Epsilon Data Management Company had to pay $150 million for fraud and in 2021 entered an agreement with the Department of Justice and the US Attorney’s Office for the District of Colorado. They continued to sell client information even when their employees knew some of their partners had been arrested for fraud and scams.

Companies that sell customer lists have a responsibility to sell the lists to ethical companies and protect consumer information. Victims of this scam by Epsilon Data Management were to be contacted directly by the company, and funds are expected to be distributed by an independent claim administrator.

Types of Consumer Fraud

There are many distinct types of consumer fraud. For example, one company called consumers on the phone and told them their personal computers had serious technical issues. They posed as technicians and demanded payment for unneeded technical support.

There have been wire transfer companies involved in fraud, and consumers have reported that their funds never arrived at the bank or that the person for whom they were intended never received them. Some customers lost thousands of dollars, and the issue has never been resolved.

During the pandemic, companies sold fake vaccine kits and cures to consumers. Robo calls, telemarketing calls, emails, texts, and even door-to-door solicitation are just some of the ways scammers market their schemes. The level of federal fraud security class actions in 2019 was high, with plaintiffs filing 424 cases in 2019 as compared to 413 in 2017. Federal fraud security cases and federal civil cases continue to increase every year due to new scams.

What to Do About Scams and Fraud Schemes

When you discover you have been swindled or scammed, report the company and the scam to the appropriate agency. If you are a senior, you can report it to the Elder Fraud Hotline or the Department of Justice. Additionally, your state financial controller and attorney general take reports and complaints about fraud. You can report your case to the Better Business Bureau if a local company is involved in a scam. In severe scam cases, charges may be brought to the federal court. In 1962, 11.5% of federal civil cases went to trial. Today, only around 1% of civil cases actually reach trial in the Federal courts. However, for cases as large as the Epsilon Data Management case, taking the case to the federal level is essential.

If you are regularly paying the company that scammed you, do not pay any more money. Collect emails, documents and conversations you have had with the company to document the fraud. What websites or phone numbers did you use to contact them? Where did the money you paid come from and how did it affect your finances? All this information can be used to file a complaint.

If you provided a credit card number, debit card number, or bank account number to pay for services, you should contact the bank or credit card company to report the scam and fraud incident. You can change your passwords or be issued a new card or account number. Your financial institution can also freeze your account until the issue is resolved.

Some homeowner’s insurance policies have fraud theft protection for losses related to identity theft that affects your finances. You can hire a lawyer to help you with your case and a financial counselor to help you devise a plan to improve your financial situation. In cases of severe money loss, chapter 7 bankruptcy debt allows consumers with credit card balances, medical bills, and personal loans to have the fees discharged. This allows you to move forward with rebuilding your finances after you have been frauded out of your savings.

Reporting scams to the right agency can help protect other consumers and may be a way to help you with finances. Hiring a lawyer, financial advisor, or accountant can be a way to deduct costs from your income taxes and help you recover and protect yourself from scams going forward.

How to Identify a Ponzi Scheme

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Woman involved in a ponzi scheme

There have been so many Ponzi schemes in the past decades that you’re bound to have heard of the concept by now. Some of the more popular ones were Geneva Gold, Gold Guarantee, and Sunshine Empire. A Ponzi scheme is a set-up where members pay a registration fee, and new members’ fees are used to pay the old members. Eventually, the scheme runs out of new people to sign, and everything comes tumbling down.

Being a victim of a Ponzi scheme can be a very painful experience because you have to watch your investments go up in flames in a very short time. Here are some things that can help you identify and avoid Ponzi schemes.

They are always masked as investment opportunities.

Obviously, nobody in their right mind will invest their money on something that’s painted as a Ponzi scheme. For schemes like these to really pull people in, they are disguised as incredible investment opportunities that are too good to miss. A great way to spot them is to look for the differences between them and traditional investment opportunities like stocks and real estate investments.

Although you can’t run away from every investment opportunity you come across, being cautious of the ones you buy into can give you enough time to conduct your research and unearth the truth about them. Another thing about these investment opportunities is that they try to get you to buy in as quickly as possible. Because these schemes never last very long, they always try to get as many people within as little time as possible.

You should always research any investment you want to get into. You can find a precious resource here. The website is called ReviewNerds, and it reviews some of the most popular investments opportunities and tells you whether they are worth it or not.

They have questionable income models.

For an investment to be truly valid, it must have a means of generating returns, and this is where most Ponzi schemes falter. All the well-known investments have a clear and easily recognizable way for its investors to make money. Real estate appreciates, and companies pay their shareholders dividends based on how many stocks they own.

A Ponzi scheme, on the other hand, generates income almost exclusively by robbing one person to pay the other. If you observe this kind of income model, it’s best to steer clear of such an establishment. Several multilevel marketing businesses generate income by referrals, but these sell products alongside. That way, the company continues to generate products, even if no new referrals are made. A Ponzi scheme, however, is much different.

There’s a rave about it.

This tip refers to bad decisions in general, although it certainly applies to Ponzi schemes. Usually, when there’s a lot of buzz about something, it’s because it’s flashy and attractive. Every savvy investor knows that by the time the general population understands the opportunity, the peak period has already passed. The same thing applies to these schemes.

By the time the general public hears about it, and everyone you know is telling you about it, the scheme is probably as big as it’s going to be. Beyond this, it will ‘run out of people’ and most likely crash down like a house of cards. If everyone is talking about a business you’ve never heard of, and you can’t get your head around how they make money besides the commissions of signing other people, don’t put your money in it.

For more of our great articles, check these out:

Life Insurance Basics

Health Insurance Basics

Homeowners Insurance

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