How Popeyes is Preventing Fraud.

Popeyes is fighting fraud.

Popeyes has rolled out a preventive measure in 148 stores by using fingerprint biometrics as a part of their point-of-sale (POS) systems. By using the biometric readers for time and attendance, employees can no longer punch in for one another, dramatically reducing payroll fraud. This new system has improved employee accountability, increased sales, and reduced both unauthorized transactions and payroll fraud. As a result, the Popeye’s locations with fingerprint-equipped POS systems have experienced a decrease in overrides and inventory losses due to fraud.

How is your company fighting fraud?

Don’t Be Scared by “Scareware”

We’ve all seen them—pop-up messages telling you your computer is infected with a virus. To get rid of it, all you have to do is order the antivirus software being advertised.

Before you click, though, know this: few Internet security companies use ads to tell you about a virus on your computer. Most of these pop-ups are scams, and it’s one of the fastest-growing types of Internet fraud today.

These scams have a name. They’re called “scareware” because they try to frighten you into purchasing fake antivirus software with a seemingly genuine security warning. But if you do try to buy this program, it will either do nothing…or it could compromise your computer by installing malicious software onto your system. And in some instances, you don’t even have to click on the pop-up box…the software downloads automatically.

Cyber criminals often use notorious botnets—networks of compromised computers under their control—to push out their software. They’ll also masquerade as legitimate Internet security companies and buy ads on other websites—called “malvertising”—but when consumers click on the ads to purchase the products, they are redirected to websites controlled by the bad guys.

Many of these criminals operate outside the U.S., making investigations difficult and complex for the FBI and its partners. But we’ve had successes—just this past May, for example, three people were charged in Illinois in connection with a scheme that caused Internet users in more than 60 countries, including the U.S., to buy more than $100 million worth of bogus scareware software.

Two of the defendants, including an American, are accused of running an overseas company that claimed to sell antivirus and computer performance/repair software over the Internet. A third man operated the company’s Cincinnati call center, which was responsible for technical and billing support to its customers (but in reality deflected complaints from consumers who realized the software didn’t work).

According to the indictment, proceeds from the sales of the software (which was typically purchased by credit card) were deposited into bank accounts controlled by the defendants and others throughout the world and then quickly transferred to accounts in Europe.

In addition to the consumers victimized by the scam, a number of legitimate companies tricked into selling ad space on their websites for the bogus software were allegedly defrauded of about $85,000 in unpaid fees.

Don’t let it happen to you. Here are a few words of advice on scareware.

How to spot a scareware scam:

Does the pop-up use “non-clickable” icons? To build authenticity into their software, scareware will show a list of reputable icons—like those of software companies or security publications. However, the user can’t click through to the sites to see the actual reviews or recommendations.

Is the pop-up ad hard to close? Scareware pop-ups employ aggressive techniques and will not close easily after clicking the “close” or “X” button.

Have you heard of the software before? Cyber criminals use easy-to-remember names like Virus Shield, Antivirus, or VirusRemover.

Former Detroit Mayor Kwame Kilpatrick Indicted on Fraud and Tax Charges

DETROIT—Former Detroit Mayor Kwame M. Kilpatrick, 40, of Southlake, Texas, was indicted today by a federal grand jury with 10 counts of mail fraud, three counts of wire fraud, five counts of filing a false tax return, and one count of tax evasion, U.S. Attorney Barbara L. McQuade announced. Each fraud count carries a maximum sentence of 20 years in prison and a fine of $250,000, and each tax count carries a maximum sentence of three or five years and a fine of $250,000.

As to the mail and wire fraud charges, the indictment alleges that, beginning in 1999, Kwame Kilpatrick devised a scheme to use the Kilpatrick Civic Fund, a tax-exempt social welfare organization registered with the Internal Revenue Service (IRS), to pay for personal expenses and to fund his mayoral campaigns in 2001 and 2005. The indictment also alleges that, despite public statements and letters maintaining that Civic Fund donations went to pay for voter education and to improve the lives of the citizens of Detroit and surrounding communities, Kilpatrick used Civic Fund monies to pay himself cash kickbacks, which he took from the paychecks of an individual employed by the Civic Fund, to provide money to friends and relatives and to pay for items such as countersurveillance and anti-bugging equipment, yoga and golf lessons, golf clubs, summer camp for his children, personal travel, moving expenses, car rentals and leases of cars, and a personal residence. The indictment further alleges that Kilpatrick used the Civic Fund to pay for campaign expenses, including polling, focus groups, public relations, and political consulting.

The tax charges in the indictment allege that, while Mayor of Detroit, Kilpatrick received unreported taxable income of at least $640,000 between 2003 and 2008, including cash, private jet flights, and personal expenses paid for by the Civic Fund. The indictment alleges that Kilpatrick filed false tax returns, failing to declare this income in tax years 2003 through 2007, and that he evaded taxes in tax year 2008.

“It is important that public officials not escape prosecution just because they leave office,” said U.S. Attorney McQuade. “Public officials need to be held accountable to deter them and others from cheating our citizens in the future.”

U.S. Attorney McQuade was joined in the announcement by Maurice Aouate, Special Agent in Charge of the Detroit Field Office of the IRS, and Andrew G. Arena, Special Agent in Charge of the Detroit Field Office of the FBI.

“This indictment and the associated charges are part of the continuing investigation into the corruption that has long plagued the City of Detroit,” said Special Agent in Charge Arena. “The FBI will continue to investigate and expose the public officials and their associates who participate in these schemes involving blatant greed.”

“No one is above the law,” said Special Agent in Charge Maurice Aouate. “This indictment sends a clear message that those who make up their own rules based on fraud and deceit will be prosecuted.”

Kilpatrick will be arraigned on Tuesday, July 13, 2010 at 1 p.m.

The investigation of this case was conducted by the IRS and the FBI. The case is being prosecuted by Assistant U.S. Attorney R. Michael Bullotta and Assistant U.S. Attorney Mark D. Chutkow.

An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The Myth of the FBI and America’s Most Wanted: Criminals Are Getting Away with Murder by Moving to Another State

Fleeing fugitives are a growing risk in America

Recent news stories have reported that millions of criminals are escaping justice in America, and overworked police departments are doing little to pursue them. According to a recent investigative series in the St. Louis Post-Dispatch, between 1.9 and 2.7 million felony fugitives (including rapists and murderers) have eluded capture by crossing state lines.

Post-Dispatch reporters found a persistent problem with outstanding warrants across the country. If local or county police departments don’t enter all their warrants in the FBI database, fugitives not listed in the database can escape detection for their prior crimes.

Accu-Screen, a leader in employment background screening, frequently uncovers job candidates with criminal records or fraudulent credentials when it conducts background searches for employers.

“It’s alarming that so many criminals get away with their crimes and go on to victimize new people in another state,” says Kevin Connell, chief executive officer and founder of Accu-Screen. “Most people have a false sense of security about their own safety. But what you don’t know could make you the next victim.”

Connell believes employers must educate themselves about this issue. Companies that unknowingly hire felons or fugitives put themselves at increased risk of embezzlement, fraud, lawsuits and workplace violence. Individuals should also be alert to the possibility that a fugitive criminal may be hiding in their neighborhood or in their workplace.

Key facts about this national crisis include:

* Organizers of Philadelphia’s “Fugitive Safe Surrender” program were astonished when 1205 felons turned themselves in at a local church in mid-September. The program was designed to encourage non-violent fugitives to settle their outstanding warrants.

* More than one third of all felony warrants are not entered into the FBI’s National Crime Information Center database checked by police across the country.

* Local police often refuse to pick up fugitives from other states, even when they’re wanted for violent crimes.
* The Senate Judiciary Committee recently passed the Biden/Durbin “Fugitive Information Networked Database Act of 2008”. This legislation aims to improve the identification, apprehension and extradition of felony fugitives.

“I support the Senate’s efforts to raise public awareness of this dangerous threat,” Connell says.

“I also want to get the word out to employers,” he continues. “Corporations and hiring managers that engage employment screening experts can dramatically reduce their risk of hiring an employee with a hidden criminal record.”

Resume falsifications – What can I do to avoid hiring bad employees into my company?

Hiring bad employees can be one of the biggest mistake an employer can ever do. This can put the company’s name and reputation at stake and put the your life and those of your other employees at risk.

There are many ways you can do to avoid having bad employees get into your company. But probably the most effective one is by conducting an intensive employment background search. A background check will be able to supply information regarding an applicant’s personal data, criminal records, driving records, medical records, educational background, employment history, military records, licenses, character references and many others.

This not only helps you avoid people who have undergone resume falsification by confirming the information stated in the resume, but more importantly this helps you avoid employees who had been involved in cases like fraud, stealing, sexual abuse or violent behavior.

Imagine hiring a person whom did not know has a history of violent behavior. One day you find out about it after he physically injured one of your customers. This customer then sues your company and affects your company’s reputation negatively. An employment background search will help you avoid such scenarios.

Another way you can avoid bad employees is by doing some investigations on your own. For one, you can contact the applicant’s previous employers so you will get to know the kind of performance he had for his former employer. Just be careful of pretend-references who are people paid to pretend as employer references.

You can also save yourself from all the troubles that a bad employee may inflict by having an employee in the applicants’ waiting room pose as a fellow applicant. This employee will say negative things about the employer or say things like, “I really don’t plan to stay long in this company.” How the applicants react and comment would give you an idea on the kind of employee they will be when they get into your company.