The Dark Side of Cryptocurrency Hardware Wallets

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The Dark Side of Cryptocurrency Hardware Wallets

In September 2021, the IRS published a request for proposal titled, “Development of Exploitation Techniques Against Cryptowallets.” According to supporting documentation, it appears that the digital forensics unit of their Criminal Investigations branch has repeatedly run into scenarios involving the seizure of crypto hardware wallets (also known as cold storage devices) that could not be accessed due to their security features. The growing interest by law enforcement and tax authorities in this issue is long overdue.

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Basic Cyber Safety for Children

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Basic Cyber Safety for Children

When do we start educating our children about fraud? Our world has changed from the days of warning our children of “stranger danger” — which is the idea and warning that all strangers can be dangerous. It is difficult for some children to understand that not all adults have their best interest in mind. Many parents don’t want their children growing up frightened, but they should aim to protect their personal information. Precisely like adults, children are exposed to the risk of identity theft and fraud. Just surfing the internet can expose both adults and children to online scams, but there are some that specifically target children.

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Painting a New Landscape: NFTs and Art Fraud

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Painting a New Landscape: NFTs and Art Fraud

The sound of one of Christie’s virtual auction bells in March symbolized a new era in the art world. A digital artist known as Beeple sold a non-fungible token (NFT) that represents his art piece “Everydays: The First 5,000 Days” for $69.4 million, an action unprecedented for not only major auction houses, but also for cryptocurrency and artists of all kinds.

Christie’s said the sale was the first time a digital-only artwork was offered with an NFT that guaranteed its authenticity. Additionally, Beeple’s sale also marked the first time cryptocurrency was used to pay for an artwork at auction. Beeple, whose real name is Mike Winkelmann, said in a statement released by Christie’s, “Artists have been using hardware and software to create artwork and distribute it on the internet for the last 20+ years but there was never a real way to truly own and collect it. With NFTs that has now changed. I believe we are witnessing the beginning of the next chapter in art history, digital art.”

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Fraud Talk: A Conversation With the "Original Internet Godfather"

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Fraud Talk: A Conversation With the "Original Internet Godfather"

During the closing session of the 32nd Annual ACFE Global Fraud Conference, John Gill, vice president of education at the ACFE, spoke with convicted fraudster* Brett Johnson, who shared stories from his life as a cybercriminal. After being placed on the United States Most Wanted List, captured and convicted of 39 felonies, he escaped prison. Captured again, Johnson served his time and accepted responsibility.

In this excerpt from the full transcript of episode 109, Johnson shares some advice for companies as cybercrime continues to evolve and grow.

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The IC3 2020 Elder Fraud Report

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The IC3 2020 Elder Fraud Report

On June 15, 2021, the FBI’s Internet Crime Complaint Center (IC3) released its 2020 Elder Fraud Report. According to the report, victims over 60 reported nearly $1 billion in fraud-related losses in 2020, which represents 28% of all losses reported to IC3. The average loss for seniors was $9,175, and nearly 2,000 senior victims lost more than $100,00. The top three fraud schemes reported by seniors in 2020 were extortion schemes, nonpayment/nondelivery schemes, and tech support fraud. The type of scheme that accounted for the greatest amount of loss was confidence fraud/romance schemes.

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