“You’re out!”: Cracking Down on Sports Card Fraud

“You’re out!”: Cracking Down on Sports Card Fraud

In another tale of quarantine hobbies that have unfortunately become rife with fraud, the sports cards and memorabilia community has witnessed a massive resurgence of interest in buying and selling valuable collectibles. Predictably, fraudsters are capitalizing on this market bulge. Throughout 2020, when the pandemic relegated everyone to their homes, many people started going through old boxes and finding childhood objects or newly valuable memorabilia. This led to a boom in internet sales of collectibles, with eBay reporting a 142% increase in their trading card category during the year. This amounts to 4 million more cards sold in 2020 than in 2019.

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“The Lady and the Dale”: This Car Runs on Fraud

“The Lady and the Dale”: This Car Runs on Fraud

A four-part documentary series from HBO, “The Lady and the Dale,” is a fast-paced deep-dive into a web of FBI raids, manhunts and a whole lot of fraud. Directors Zackary Drucker and Nick Cammilleri treat viewers to the complex life of Elizabeth “Liz” Carmichael — a charismatic and cunning salesperson with billionaire and presidential aspirations who took the automotive industry by storm when she revealed the bright yellow prototype of a car called the Dale in the mid-1970s.

At the height of the global oil crisis, Carmichael promised interested buyers and investors that this three-wheeled vehicle could get 70 miles to the gallon, and all for the low purchase price of $2,000. Carmichael’s grandiose claims promised to revolutionize the landscape not only of the automotive industry but also of the world at large. This promise, of course, was gradually revealed to be completely empty.

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Investigating Elder Fraud: Where to Begin

Investigating Elder Fraud: Where to Begin

While millennials are more likely to fall victim to fraud than seniors, the financial losses they suffer are less than half of those suffered by seniors — $400 versus $1,092, respectively — with an annual loss by seniors of approximately $3 billion. The reason for the loss discrepancy: the financial stability of many elderly citizens and the types of frauds perpetrated against them. 

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The Top 10 Scams Targeting Seniors

The Top 10 Scams Targeting Seniors

Angie Kennard felt that something was off with her 79-year-old father. When they talked on the phone he would tell her about a woman he met online and occasionally sent money to. Even though her father never met the woman in person, she professed her love for him through emails and asked him to send her money to feed her and her daughter. Angie told her father that he was being conned, but he would not listen and continued to send the woman money.

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Funeral Fraud: Scamming the Dearly Departed

GUEST BLOGGER

Misty Carter, CFE, CIA
ACFE Research Specialist

Scamming the elderly or taking advantage of the mentally disabled are considered among the most repugnant of fraud schemes. But what about when fraudsters scam the deceased?

Believe it or not, many criminals take advantage of those who have died using funeral fraud schemes. These types of frauds come in many forms and mainly target and affect the families of the deceased. One of the most common funeral fraud schemes involves prepaid funeral expenses. According to the Federal Trade Commission, millions of Americans prearrange their funerals by entering into contracts and prepaying all or some of the related expenses. Some states have laws in place to regulate these contracts,. Other states, however, are more lenient, which leaves a window of opportunity for unscrupulous individuals.

Consider the case of James “Doug” Cassity, a disbarred attorney and resident of St. Louis, Missouri. His company, National Prearranged Services Inc. (NPS), engineered a fraud scheme that caused fraud losses of more than $600 million. Cassity devised a scheme to defraud purchasers of prearranged funeral contracts or insurance policies obtained through NPS.

How did the scam work? NPS promised customers that, for a fee, the company would cover all their funeral expenses when they died. Depending on the type of funeral arrangements requested, customer’s fees could run upwards of $10,000. After finding out what customers wanted, NPS determined an agreed-upon price and accepted payment. NPS then made arrangements with the funeral home designated by the customer. NPS supposedly placed the funds in a trust — to be used for safe investments or to purchase a life insurance policy — with a third party in the customer’s name.

What customers didn’t know was that NPS, instead of putting their funds in a trust or life insurance policy, often altered documents by changing deposit amounts and listing the company as a beneficiary. NPS then converted these policies and used the money for risky investments, to pay existing funeral claims, and to purchase personal items. According to court documents, Cassity sold approximately 100,000 prepaid funeral contracts. The scheme was discovered when several agencies reported suspicious practices by NPS to the FBI. Cassity was sentenced to nine years in prison.

There are many other funeral fraud schemes that individuals should also be on guard against. For example, some scammers might try to capitalize on a family member’s unfamiliarity with funeral services and add unnecessary charges to their bill. Some might even insist that a burial casket is necessary even though a body will be cremated and a less expensive cardboard casket could be used.

Some suggestions that can help you minimize the risk of becoming a victim of a funeral fraud scheme are:

  • Be informed. Shop around before making a purchase. Take a friend along who might be able to offer a different perspective before you make a final decision.
  • Educate yourself about the goods and services, such as caskets or cremations, provided by funeral homes.
  • Understand the difference between fees, such as funeral home basic fees and fees for any additional services.
  • Carefully read all contracts and any other paperwork before signing.
  • Before signing, make sure that you understand the contract language and that all your requirements have been included in the contract.
  • If you are considering prepaying, be sure to include specific details about what funeral arrangements have been made in the prepaid contract.

While funeral fraud might at first seem hard to believe, the reality is that wherever there is a cheap buck to be made, fraudsters will find an opportunity. By being informed and aware, people can help protect themselves – and their friends and family – from becoming victims of this insidious type of fraud.