Hello from Tero Pollanen

Hi All,

2013 been very busy for me. I will now have again more time to write about online fraud so soon more to come.

Kind Regards,
Tero Pollanen
http://teropollanenonline.com/

The Coming “Quiet” War

Cybercrime knows no borders. There are thousands of attacks globally every day and cyber crime costs the UK £27 billion yearly. Tero Pollanen, international expert on cyber crime and security warns that this growing threat on the UK including global networks is a serious threat to economic security. “The magnitude of this threat cannot be overstated.”

With the increasing level of sophistication of attacks from both enemy states and criminal organizations, cyber security is one of the greatest challenges of today. The alarm has been sounded by the government and it has been “quietly” suggested that the UK should in fact declare war on states and criminals that are targeting the country by employing “aggressive retaliatory strikes” hoping to destroy their operatives.

The latest attacks are now focusing on business targets.  This, of course could include core infrastructure grids which, if compromised, would bring the country to its knees. Time after time Tero has reiterated that complacency is the biggest enemy within a company. Often they do not begin to realize that they have been compromised until sensitive information falls into other hands and/or their entire network is under the control of criminals. The bottom line is that companies are not taking this threat seriously.

The government has offered new guidance in it’s “10 Steps to Cyber Security.” But again complacency raises its ugly head as a recent survey has determined that nearly 9 out of 10 UK businesses were confident that they were already adequately protected. It has been said that such confidence is a grave mistake.

Ref.: http://www.telegraph.co.uk/news/uknews/law-and-order/9522969/Hackers-could-be-running-company-computers-GCHQ-chief-warns.html

Is Your Data Secure?

New information revealed under the Freedom of Information Act shows alarming statistics concerning data breaches in the UK. According to the Information Commissioner’sOffice, data breaches have increased by a factor of ten in the last five years. The good news, however, is that organizations are reporting many more breaches than before.

Tero Pollanen, international fraud prevention specialist has stated time after time the importance of both awareness and stepped up government participation are the keys to turning the tide against cyber crimes. The word is getting out as the ICO’s numbers demonstrate that awareness of the legal requirements on companies to secure information and large fines on companies that “lose” information is precipitating positive change. The telecom sector has actually seen a decrease in the number of information breaches in the past five years.

The ICO provides a wealth of information and guidance across the UK. It should be noted the both health service and government sectors are expected to report serious breaches which involve large volumes of personal data and/or sensitive materials. Again, Tero Pollanen reminds us both to be aware and encourages additional sectors to work with the ICO in reducing the number of data breaches.

Ref.: http://www.bbc.co.uk/news/technology-19424197

No More Fish For The Phishers

Phishing, the art of deception is about to become a bit less successful according to some of the world’s largest banking institutions.  One morning before leaving for work you quickly scan your email and spot a quick note from your trusted bank that you have been with for years.  The typical scam pitch might go like “it’s that time of year again, dear member, to update and verify some information on your account…”  You are directed to your bank’s website, provide the vitals, and you are happily on your way to the office. Later in the day, with a shopping cart full of groceries you are horrified that your account cannot cover the charges.  The reality is that you are broke.  And, that website was NOT your trusted bank’s site at all.

“This cybercrime, known as Phishing, has cost industry an estimated $2.5 billion last year alone,” states Tero Pollanen, a well known fraud prevention specialist, “it is time to rethink security strategy.”  The latest school of thought is in the utilization of new exclusive internet addresses with unique domain endings such as dot-citi, dot-barclays or dot-bofa. The banking institutions are hoping that this will increase customer awareness that they actually are dealing with their bank rather than a scam website attempting to steal personal information.

According to Icann, the organization that more or less governs the internet, these new extensions could begin to appear in 2013. In addition to security concerns they would also aid in brand promotion.  But by far the greatest need for this change would be the possible security benefits over what they cannot obtain with a dot-com presence.

Fraud will still exist with careless customers and it is the weakest link in the chain of security.  But at least the institution can create a domain that ends in their bank name which will help to generate more trust in the institution. 

The key here of course is communication between the institution and its customers that when a web address ends in a particular dot-brand, it can be trusted. 

Ref.:  http://online.wsj.com/article/SB10000872396390444508504577593243972975650.html

Tag Team: Father & Son Scam

“Just when we thought we had seen it all, says Tero Pollanen, a well known fraud specialist, we see yet another major institution fall victim.” With all the chatter about the major world banks, now it’s Western Union and a money transferring scam involving a father and son team.  Here we have 2 people, illegal immigrants facing deportation from the UK. The father was bankrupt several years ago and yet became an agent for a Western Union transferring company after “various checks had been carried out”. Apparently these checks were not quite thorough.

The business they set up offered unsustainable transfer rates and was marketed to their own people in India and Pakistan. “..the money transfer service had quickly gone wrong because they were offering such good exchange rates that they made no profit.” 

More than 20 customers over a three month period were defrauded as they used this service which offered “excellent rates on transactions.” The judge that eventually tried the case “described their offenses against their own Asian community as ‘despicable’”. Both men knew they were facing deportation to Pakistan; the elder being fearful of returning there because he received better health services in the UK. Apparently despite his status, he had been receiving free medication.

It seems there is no limit to the depth to which people will sink in these most desperate times. Everyone must be vigilant.

Ref.: http://www.dailymail.co.uk/news/article-2187830/Western-Union-money-transfer-scam-Illegal-immigrant-father-son-defrauded-50-000.html?ITO=1490

And The Beat Goes On…

“You never know whom, from where, or what will occur but there is a war going on out there,” says Tero Pollanen, a well-known cyber crime and fraud prevention specialist. The scam of the day comes to you from Bhubaneswar, India where we read of a graduate engineer being arrested for hacking a victim’s credit card and going on a spending spree over the last several months. Over a three month period, he defrauded the victim of nearly £1100

on internet adult sites alone, in addition to purchasing a cell phone and other assorted electronics.

An ongoing investigation is in progress to see it the arrested was simply acting independently or if he is part of an organized crime group. It is sad that here we witness a bright mind whom we would expect to trust and aid in the prevention of such affairs, rather falls into temptation and thus violates our trust.

Ref.: http://www.ndtv.com/article/cities/engineer-held-for-credit-card-fraud-251903

Olympic Size Scam Observed

Bigger, faster, and automated.  We’ve come a long way since Mario Puzo…

Organized crime sophistication we are talking about. “In the latest reincarnation,” Mr. Pollanen, a well respected international financial anti fraud specialist asserts, “we find a banking fraud ring attempting a £2billion heist from large account holdings all over the globe.” These automated attacks move extremely rapidly and yes, cloud based services are becoming more popular by these hi-tech fraudsters. They are so sophisticated that they have developed methods of bypassing chip and pin authentication.

Due to the magnitude and adeptness of this Olympic-Sized threat with alleged organized crime signatures, warnings are being issued for the upcoming Olympic games. Wherever crowds assemble for large scale media and/or sporting events, these modern day pickpockets will gravitate. We will see new phishing scams mushrooming and all should take caution in using WiFi spots that possibly could be intercepted.

“It is very important to be aware of one’s surroundings whether in a business environment, in public, or at home,” according to Mr. Pollanen.  Crime sophistication is on the rise and as we mentioned in a previous blog, new methods of strict, punitive law enforcement efforts must be developed and implemented. 

Further reading: http://www.itpro.co.uk/641386/mcafee-uncovers-europe-wide-bank-fraud-scam