THE DEVIL YOU KNOW: HOW FRAUDSTERS USE SOCIAL MEDIA FOR AFFINITY FRAUD

Welcome to the October 2016 edition of our newsletter! In this issue we’ll examine how new tools are allowing fraudsters to combine affinity fraud with phishing and other identity theft schemes, and what you can do to help your clients avoid becoming victims.

THE DEVIL YOU KNOW: HOW FRAUDSTERS USE SOCIAL MEDIA FOR AFFINITY FRAUD

Affinity fraud conjures images of a bygone era: a charming, flashy stock hustler wooing a room full of wealthy socialites, for example; in more recent times, a similar scheme was part of Bernie Madoff’s massive Ponzi scheme, professing to use his financial wizardry to help philanthropies thrive and reap fantastic investment gains. Yet a new type of fraudster preys upon a broader, if thinner, set of social bonds, stealing someone’s social media information to pose as that person, appealing to friends and family for financial help – all while the identity theft victim may not even know that they’ve been used to elicit empathy – and solicit funds – from loved ones.

PROTECTING YOURSELF FROM AFFINITY FRAUD SCHEMES

Whether in the form of a grandchild who has supposedly been arrested, or a friend who has had a sudden financial emergency about which few details are given, fraudsters typically rely upon emotional appeals more than specific details. If a client comes to you stating that someone they know is in trouble, or that they’ve already helped someone, ask several somewhat obvious but important questions: what did the caller say happened? Where did it happen? Did they give the names of any law enforcement personnel who are involved? Also, attempt to reach the person supposedly seeking assistance by multiple means: if they contacted someone via e-mail or chat, reach out via telephone, preferably at their work or home, or visit them in person if possible, to ascertain if any portion of the alleged scenario actually occurred. If a target noted any telephone numbers or other information during contact, an investigator can use resources to trace that information and provide assistance to law enforcement, who can then see to further prosecution and, hopefully, recover funds – and help the compromised person maintain their online identity. This manner of affinity fraud can be devastating to the victim and difficult to detect in real-time, but steps can be taken to mitigate the adverse impact on your clients.