An anonymous reader quotes a report from the New York Times: The founder of an artificial intelligence start-up focused on education was arrested and charged with defrauding her investors, lying about the company's profits and falsely claiming that some of the largest school districts in the country, including New York City's, were her customers. The founder, Joanna Smith-Griffin, started the company, AllHere Education, in 2016, with the goal of using artificial intelligence to increase student and parent engagement and curb absenteeism. In the years that followed, Ms. Smith-Griffin, 33, misrepresented AllHere's revenue and customer base to fraudulently raise almost $10 million in funds, according to the indictment. Once the company's valuation had climbed, she sold some of her stake in it and spent hundreds of thousands of dollars on a down payment for a new home and on her wedding.

Ms. Smith-Griffin was arrested Tuesday in North Carolina, where she lives, and charged with wire fraud, securities fraud and aggravated identity theft. She faces more than 40 years in prison. AllHere is now in bankruptcy proceedings, prosectors said, and all of its employees have been laid off. "Her alleged actions impacted the potential for improved learning environments across major school districts by selfishly prioritizing personal expenses," said James E. Dennehy, the F.B.I. assistant director in New York leading the investigation into Ms. Smith-Griffin. "The F.B.I. will ensure that any individual exploiting the promise of educational opportunities for our city's children will be taught a lesson." Smith-Griffin is the latest Forbes 30 Under 30 honoree to be indicted on fraud. "The Forbes-to-Fraud pipeline includes FTX founder Sam Bankman-Fried and Caroline Ellison, co-CEO of Alameda Research; fintech Frank founder Charlie Javice; and 'Pharma bro' Martin Shkreli," notes TechCrunch.

Interpol arrested 1,006 suspects in Africa during a massive two-month operation, clamping down on cybercrime that left tens of thousands of victims, including some who were trafficked, and produced millions in financial damages, the global police organization said Tuesday. From a report: Operation Serengeti, a joint operation with Afripol, the African Union's police agency, ran from Sept. 2 to Oct. 31 in 19 African countries and targeted criminals behind ransomware, business email compromise, digital extortion and online scams, the agency said in a statement.

On November 24th, 1971 — 53 years ago today — a mysterious man jumped out of an airplane clutching $200,000 in ransom money. (He'd extorted it from the airline by claiming he had a bomb, and it's still "the only unsolved case of air piracy in the history of commercial aviation," according to Wikipedia.) Will modern technology finally let us solve the case — or just turn it into a miniseries on Netflix? And have online researchers finally discovered the definitive clue?

The FBI vetted more than 800 suspects, according to the Wyoming news site Cowboy State Daily, but in 2016 announced they were suspending their active investigation.

So it's newsworthy that the FBI now appears to be investigating new evidence, according to an amateur D.B. Cooper researcher on YouTube: the discovery of what's believed to be D.B. Cooper's uniquely-modified parachute: Retired pilot, skydiver and YouTuber, Dan Gryder told Cowboy State Daily that he may have found the missing link after uncovering the modified military surplus bailout rig he believes was used by D.B. Cooper in the heist. It belonged to Richard Floyd McCoy II, and was carefully stored in his deceased mother's storage stash until very recently... McCoy's children, Chanté and Richard III, or "Rick," agree with Gryder that they believe their father was D.B. Cooper, a secret that shrouded the family but wasn't overtly discussed. For years, they said, the family stayed mum out of fear of implicating their mother, Karen, whom they believe was complicit in both hijackings. Upon her death in 2020, they broke their silence to Gryder after being contacted by him off and on for years.

Gryder, who has been researching the case for more than 20 years, documented his investigation in a lengthy two-part series on his YouTube channel, "Probable Cause," in 2021 and 2022, where he connects the dots and shows actual footage of him finding the parachute in an outbuilding on the McCoy family property in North Carolina in July 2022. On Monday, Gryder released a third video, "D.B. Cooper: Deep FBI Update," where he announced the FBI's new and very recent efforts in his discoveries. After watching his first two videos, Gryder said FBI agents contacted Rick and Gryder to see the parachute. It was the first investigative move by the agency since issuing the 2016 public statement, declaring the case closed pending new evidence. Gryder and Rick McCoy traveled to Richmond, Virginia, in September 2023, where they met with FBI agents, who took the harness and parachute into evidence along with a skydiving logbook found by Chanté that aligned with the timeline for both hijackings, providing another vital piece in the puzzle, Gryder said....

During the meeting, Gryder said the agents called it a first step. If the evidence proved fruitless, they would have promptly returned the skydiving rig, he said, but that didn't happen. Instead, an FBI agent called Rick a month later to ask to search the family property in Cove City, North Carolina, which McCoy's mother owned and where Gryder had found the parachute and canopy... [Gryder says he watched] at least seven vehicles descend on the property with more than a dozen agents who scoured the property for about four hours... Rick said he has provided a DNA sample and was told by the FBI agents that the next step might be exhuming his father's body, but no formal terms and conditions for that process have been established thus far, he said.
A retired commercial airline pilot who was present in the Virginia FBI meeting said "It was clear they were taking it seriously" — noting it was the FBI who'd requested that meeting. The article cites two FBI agents who'd earlier already believed D.B. Cooper was McCoy. And the article points out that the FBI "has never ruled McCoy out, stating in a 2006 statement that he was 'still a favorite suspect among many.'"

A second article notes that Gryder supports the FBI's recent request to exhume McCoy's body. As he sees it, "The existing DNA marker comparisons studied so far only validate the need for this final extreme step and should close the mystery once and for all."

And the article adds that McCoy's children are "eager for closure and hope that the FBI finds the evidence agents need to close the D.B. Cooper case once and for all."

America's Justice Department "has ordered all consensual searches by drug enforcement agents conducted at the nation's airports stopped," reports Georgia's local TV station Atlanta News First — after their series of investigations "uncovered how the agents often search innocent passengers at airport gates, looking for cash." On Thursday, the department made public a November 12, 2024, directive from the deputy attorney general to the U.S. Drug Enforcement Administration (DEA) that it suspend "all consensual encounters at mass transportation facilities unless they are either connected to an ongoing, predicated investigation involving one or more identified targets or criminal networks or approved by the DEA Administrator based on exigent circumstances." The management advisory memorandum was issued by DOJ Inspector General Michael Horowitz.

The memo specifically mentioned the case of an airline passenger interviewed by Atlanta News First Chief Investigator Brendan Keefe, author of the Atlanta News First investigation, In Plane Sight. The award-winning series uncovered how drug agents have been seizing anything over $5,000 if airline passengers can't prove — on the spot — that their own money didn't come from drug trafficking. The government seizes the cash when no drugs are found, without arresting the traveler or charging them with a crime, and the DEA gets to keep the money it seizes.

After witnessing the Atlanta News First series, the passenger in question — who was departing from Cincinnati and heading to New York, where he lives — refused consent to have his bags searched at the gate... "The DOJ Office of the Inspector General (OIG) further learned that the DEA Task Force Group selected this traveler for the encounter based on information provided by a DEA confidential source, who was an employee of a commercial airline, about travelers who had purchased tickets within 48 hours of the travel," the memo said. "The OIG learned that the DEA had been paying this employee a percentage of forfeited cash seized by the DEA office from passengers at the local airport when the seizure resulted from information the employee had provided to the DEA. The employee had received tens of thousands of dollars from the DEA over the past several years."
The news station's investigation "also revealed passengers selected for what the government calls 'random, consensual encounters' are actually profiled by the drug agents who search Black men far more often than any other group of passengers," according to the article.

"The reports analyzed data showing that, for drug agents to find just one passenger with money, they have to publicly search 10 departing passengers."

An anonymous reader shared this report from CNET: Meta says it's taken down more than 2 million accounts this year linked to overseas criminal gangs behind scam operations that human rights activists say forced hundreds of thousands of people to work as scammers and cost victims worldwide billions of dollars.

In a Thursday blog post, the parent of Facebook, Instagram and WhatsApp says the pig butchering scam operations — based in Myanmar, Laos, Cambodia, the United Arab Emirates and the Philippines — use platforms like Facebook and Instagram; dating, messaging, crypto and other kinds of apps; and texts and emails, to globally target people... [T]he scammers strike up an online relationship with their victims and gain their trust. Then they move their conversations to crypto apps or scam websites and dupe victims into making bogus investments or otherwise handing over their money, Meta said. They'll ask the victims to deposit money, often in the form of cryptocurrency, into accounts, sometimes even letting the victims make small withdrawals, in order to add a veneer of legitimacy. But once the victim starts asking for their investment back, or it becomes clear they don't have any more money to deposit, the scammer disappears and takes the money with them.

And the people doing the scamming are often victims themselves. During the COVID-19 pandemic, criminal gangs began building scam centers in Southeast Asia, luring in often unsuspecting job seekers with what looked like amazing postings on local job boards and other platforms, then forcing them to work as scammers, often under the threat of physical harm. The scope of what's become a global problem is staggering. In a report issued in May, the US Institute of Peace estimates that at least 300,000 people are being forced to work, or are otherwise suffering human rights violations, inside these scam centers. The report also estimates global financial losses stemming from the scams at $64 billion in 2023, with the number of financial victims in the millions.

Meta says it has focused on investigating and disrupting the scam operations for more than two years, working with nongovernmental organizations and other tech companies, like OpenAI, Coinbase and dating-app operator Match Group, along with law enforcement in both the US and the countries where the centers are located.
Meta titled its blog post "Cracking Down On Organized Crime Behind Scam Centers," writing "We hope that sharing our insights will help inform our industry's defenses so we can collectively help protect people from criminal scammers."

Half of young Norwegians find online piracy acceptable when streaming services are too expensive, according to a new government survey released this week. The Ipsos poll of 1,411 respondents found that 32% of all Norwegians justify using pirate sites to save money, with acceptance rising to 50% among those under 30.

The rates increase further when specifically asked about pirating due to high streaming costs. Despite concerns about piracy, 61% of Norwegians paid for streaming services in the past year, including 64% of those under 30. Among active pirates, 41% said they would stop if legal services were more affordable, while 35% wanted broader content per service. Only 47% of respondents believed piracy supports organized crime, with 24% expressing uncertainty about this connection.

jojowombl shares a report from The Guardian: Legal documents released in ongoing US litigation between NSO Group and WhatsApp have revealed for the first time that the Israeli cyberweapons maker -- and not its government customers -- is the party that "installs and extracts" information from mobile phones targeted by the company's hacking software. The new details were contained in sworn depositions from NSO Group employees, portions of which were published for the first time on Thursday.

It comes five years after WhatsApp, the popular messaging app owned by Facebook, first announced it was filing suit against NSO. The company, which was blacklisted by the Biden administration in 2021, makes what is widely considered the world's most sophisticated hacking software, which -- according to researchers -- has been used in the past in Saudi Arabia, Dubai, India, Mexico, Morocco and Rwanda. [...] At the heart of the legal fight was an allegation by WhatsApp that NSO had long denied: that it was the Israeli company itself, and not its government clients around the world, who were operating the spyware. NSO has always said that its product is meant to be used to prevent serious crime and terrorism, and that clients are obligated not to abuse the spyware. It has also insisted that it does not know who its clients are targeting. [...]

To make its case, WhatsApp was allowed by Judge Phyllis Hamilton to make its case, including citing depositions that have previously been redacted and out of public view. In one, an NSO employee said customers only needed to enter a phone number of the person whose information was being sought. Then, the employee said, "the rest is done automatically by the system." In other words, the process was not operated by customers. Rather NSO alone decided to access WhatsApp's servers when it designed (and continuously upgraded) Pegasus to target individuals' phones. A spokesperson for NSO, Gil Lainer, said in a statement: "NSO stands behind its previous statements in which we repeatedly detailed that the system is operated solely by our clients and that neither NSO nor its employees have access to the intelligence gathered by the system. We are confident that these claims, like many others in the past, will be proven wrong in court, and we look forward to the opportunity to do so."

quonset shares a report from CNN: Between August 2022 and January 2024, hundreds of swatting calls were made across the country targeting religious institutions, government offices, schools, and random people. Authorities were finally able to track down the criminal, Alan Fillon, who entered the plea to four counts of making interstate threats to injure the person of another, the US Attorney's Office for the Middle District of Florida said in a news release. He faces up to five years in prison on each count. A sentencing date has not yet been set.

The US Attorney's Office said Filion made more than 375 swatting and threat calls from August 2022 to January 2024. Those calls included ones in which he claimed to have planted bombs in targeted locations or threatened to detonate bombs and/or conduct mass shootings at those locations, prosecutors said. He targeted religious institutions, high schools, colleges and universities, government officials and people across the United States. Filion was 16 at the time he placed the majority of the calls.

The FBI raided Polymarket CEO Shayne Coplan's Manhattan apartment, seizing his phone and electronic devices. A source close to the matter told The New York Post it was politically motivated due to Polymarket's successful prediction of Trump's election win. It's "grand political theater at its worst," the source said. "They could have asked his lawyer for any of these things. Instead, they staged a so-called raid so they can leak it to the media and use it for obvious political reasons."

Although no charges were filed, the raid has sparked controversy, with speculation of political retribution and concerns over potential market manipulation, as Polymarket faces scrutiny both in the U.S. and from French regulators. The New York Post reports: Coplan was not arrested and has not been charged, a Polymarket spokesperson told The Post on Wednesday evening. "Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections," the rep said. "We charge no fees, take no trading positions, and allow observers from around the world to analyze all market data as a public good."

Coplan posted on X after his run-in with the feds: "New phone, who dis?" Polymarket does not allow trading in the US, though bettors can bypass the ban by accessing the site through VPN. The FBI's investigation comes a week after Coplan said Polymarket is planning to return to the US. [...] In 2022, the online gambling platform was forced to pause its trading in the US and pay a $1.4 million penalty to settle charges with the Commodity Futures Trading Commission that it had failed to register with the agency. [In France, regulators are investigating Polymarket's compliance with national gambling laws, with concerns about unauthorized gambling activities within the country.] A Fortune report published a week before the election found widespread evidence of wash-trading on Polymarket. "Polymarket's Terms of Use expressly prohibit market manipulation," a Polymarket spokesperson told Fortune in a statement.

An anonymous reader quotes a report from NBC News: Former Massachusetts Air National Guard member Jack Teixeira was sentenced Tuesday to 15 years for stealing classified information from the Pentagon and sharing it online, the U.S. Attorney for Massachusetts announced. Teixeira received the sentence before Judge Indira Talwani in U.S. District Court for the District of Massachusetts. In March, the national guardsman pleaded guilty to six counts of willful retention and transmission of national defense information under the Espionage Act. He was arrested by the FBI in North Dighton, Massachusetts, in April 2023 and has been in federal custody since mid-May 2023.

According to court documents, Teixeira transcribed classified documents that he then shared on Discord, a social media platform mostly used by online gamers. He began sharing the documents in or around 2022. A document he was accused of leaking included information about providing equipment to Ukraine, while another included discussions about a foreign adversary's plot to target American forces abroad, prosecutors said. [...] While the documents were discovered online in March 2023, Teixeira had been sharing them online since January of that year, according to prosecutors.

An anonymous reader quotes a report from 404 Media: Flock is one of the largest vendors of automated license plate readers (ALPRs) in the country. The company markets itself as having the goal to fully "eliminate crime" with the use of ALPRs and other connected surveillance cameras, a target experts say is impossible. [...] Flock and automated license plate reader cameras owned by other companies are now in thousands of neighborhoods around the country. Many of these systems talk to each other and plug into other surveillance systems, making it possible to track people all over the country.

"It went from me seeing 10 license plate readers to probably seeing 50 or 60 in a few days of driving around," [said Alabama resident and developer Will Freeman]. "I wanted to make a record of these things. I thought, 'Can I make a database of these license plate readers?'" And so he made a map, and called it DeFlock. DeFlock runs on Open Street Map, an open source, editable mapping software. He began posting signs for DeFlock (PDF) to the posts holding up Huntsville's ALPR cameras, and made a post about the project to the Huntsville subreddit, which got good attention from people who lived there. People have been plotting not just Flock ALPRs, but all sorts of ALPRs, all over the world. [...]

When I first talked to Freeman, DeFlock had a few dozen cameras mapped in Huntsville and a handful mapped in Southern California and in the Seattle suburbs. A week later, as I write this, DeFlock has crowdsourced the locations of thousands of cameras in dozens of cities across the United States and the world. He said so far more than 1,700 cameras have been reported in the United States and more than 5,600 have been reported around the world. He has also begun scraping parts of Flock's website to give people a better idea of where to look to map them. For example, Flock says that Colton, California, a city with just over 50,000 people outside of San Bernardino, has 677 cameras.

People who submit cameras to DeFlock have the ability to note the direction that they are pointing in, which can help people understand how these cameras are being positioned and the strategies that companies and police departments are using when deploying them. For example, all of the cameras in downtown Huntsville are pointing away from the downtown core, meaning they are primarily focused on detecting cars that are entering downtown Huntsville from other areas.

Major retailers are considering embedding radio-emitting threads into clothing as a novel anti-theft measure amid soaring retail crime rates, according to Bloomberg, citing industry sources. The technology, developed by Spanish firm Myruns, uses conductive ink derived from cellulose to create threads five times thinner than human hair that can trigger security alarms.

Zara owner Inditex has discussed implementing the system, though the company says it has no plans for in-store testing. Retail theft caused an estimated $73 billion in lost sales in the U.S. in 2022, according to the National Retail Federation, while UK losses doubled to $4.2 billion in 2023. The crisis has prompted retailers to increase security personnel and surveillance systems. The threadlike technology could provide an alternative to traditional metal-based security tags, potentially offering biodegradable and recyclable anti-theft protection.

An anonymous reader quotes a report from CBC News: The head of a company specializing in cryptocurrency was kidnapped and held for ransom in downtown Toronto during rush hour Wednesday. Police were called about a kidnapping in the area of University Avenue and Richmond Street W. just before 6 p.m., says a spokesperson with the Toronto Police Service. The suspects forced the victim into a vehicle and made a demand for money, the spokesperson said. The man was later located in Centennial Park in Etobicoke uninjured.

CBC Toronto has learned the victim is Dean Skurka, the president and CEO of Toronto-based financial firm WonderFi. He was released after a ransom of $1 million was paid electronically, a source close to the investigation said. Police say the investigation is ongoing and have not released any further details. [...] The alleged kidnapping happened the same day WonderFi released its third quarter earnings results, showing a 153 per cent increase compared to its third quarter in 2023.

During an operation across 95 countries from April to August 2024, Interpol arrested 41 individuals and dismantled over 1,000 servers and infrastructure running on 22,000 IP addresses facilitating cybercrime. BleepingComputer reports: Interpol said its enforcement action was backed by intelligence provided by private cybersecurity firms like Group-IB, Kaspersky, Trend Micro, and Team Cymru, leading to the identification of over 30,000 suspicious IP addresses. Eventually, roughly 76% of those were taken down, 59 servers were seized, and 43 electronic devices were confiscated, which will be examined to retrieve additional evidence. In addition to the 41 individuals who were arrested, the authorities are also investigating another 65 persons suspected of associating with illicit activities.

Cybercriminals have breached dozens of major companies including AT&T, Ticketmaster and Hot Topic by exploiting "infostealer" malware that harvests login credentials from infected computers, an investigation has found. The malware, spread through pirated software and social media, has infected 250,000 new devices daily, according to cybersecurity firm Recorded Future. Russian developers create the malware while contractors distribute it globally, deliberately avoiding former Soviet states. Hot Topic suffered potentially the largest retail hack ever in October when attackers accessed 350 million customer records using stolen developer credentials. Google and Microsoft are racing to patch vulnerabilities, but malware makers quickly adapt to new security measures.

Former FTX executive Nishad Singh was ordered to forfeit $11 billion, reports CNBC — and is subject to three years of supervised release, making him "the fourth ex-employee of the collapsed crypto exchange to be punished."

But while he'd faced a maximum sentence of 75 years, he'll serve no time, according to this report from the Associated Press: Singh, the company's former engineering director, was sentenced in Manhattan by Judge Lewis A. Kaplan, who said his cooperation was "remarkable." The judge noted that Singh did not learn of the billions of dollars that were misappropriated from FTX customer accounts and investors until two months before the fraud unraveled... Singh, 29, testified a year ago at Bankman-Fried's trial, saying he was "blindsided and horrified" when he saw the extent of the fraud behind the once-celebrated and seemingly pioneering firm. At sentencing, Singh said he was "overwhelmed with remorse" for his role in the fraud. "I strayed so far from my values, and words can't express how sorry I am," he said....

The sentencing came a month after Caroline Ellison, another key witness at Bankman-Fried's trial and a former top executive in his cryptocurrency empire, was sentenced to two years in prison. At the time, Kaplan praised her cooperation but said it wasn't a get-out-of-jail-free card. On Wednesday, Kaplan drew a distinction between the cooperation by Ellison and Singh's work with prosecutors, saying Ellison had participated in the fraud "from the beginning" and had been aware of all the wrongdoing for years... [Defense attorney Andrew Goldstein] said leniency would encourage future cooperators in other criminal cases to come forward.

Assistant U.S. Attorney Nicolas Roos credited Singh with providing information within weeks of the fraud being publicly revealed, saying he helped prosecutors learn about crimes they might otherwise have never discovered, including his own. Roos said, for instance, that Singh told prosecutors about campaign finance violations that occurred as FTX executives made tens of millions of dollars in donations to political candidates. The prosecutor also said Singh revealed private conversations with Bankman-Fried that strengthened the government's case and enabled it to bring charges more quickly against multiple people. Singh gave prosecutors "documentary evidence the government did not have and likely never would have had," Roos said.
Bankman-Fried, of course, began a 25-year sentence last November. And three weeks ago FTX executive Ryan Salame made an update on his LinkedIn profile. "I'm happy to share that I'm starting a new position as Inmate at FCI Cumberland!"

"His post quickly went viral," notes CNN, "prompting Salame to joke on X: "Today I learned people still use LinkedIn."

Jay Newman, who made billions for Elliott Management pursuing Argentina's defaulted debt, wrote a 2022 thriller about corrupt spies and hedge funds. Now federal prosecutors are examining parallels between his novel "Undermoney" and real-world events.

The investigation centers on Amit Forlit, an Israeli private investigator facing U.S. extradition charges for alleged email theft from Argentine officials during Elliott's sovereign debt battle. Prosecutors are probing whether Forlit's alleged $20 million hacking operation aided Elliott's eventual $2.2 billion settlement with Argentina. "There's not that much fiction in 'Undermoney,'" Newman told interviewers while promoting the book, which features Israeli operatives and hedge fund intrigue. Newman and Elliott deny any wrongdoing, with Newman calling suggestions of illegal activity "categorically false."

The probe is examining $20 million paid to a Forlit-controlled company via a consulting firm that worked for Elliott, according to court statements and people familiar with the matter. Forlit denied involvement in hacking during a 2022 deposition. Prosecutors are also investigating Forlit's work for ExxonMobil regarding climate change critics. Neither Elliott nor ExxonMobil has been accused of wrongdoing. Newman, who left Elliott in 2016 with a $70 million bonus after the Argentina settlement, met regularly with Forlit to discuss the Argentine case, WSJ has reported. His novel follows dark money trails through Washington power corridors and Wall Street trading floors, featuring Israeli operatives described as "expensive, but consistent."

The feds have indicted Aleksei Andriunin, a 26-year-old Russian national and founder of Gotbit, on charges of wire fraud and conspiracy to commit market manipulation. Crypto News reports: According to the U.S. Attorney's Office, the indictment alleges that Andriunin and his firm participated in a long-running scheme to artificially boost trading volumes for various cryptocurrency companies, including some based in the United States, to make them appear more popular and increase their trading value. Andriunin allegedly led these activities between 2018 and 2024 as Gotbit's CEO. He could face up to 20 years in prison, additional fines, and asset forfeiture if convicted, according to the U.S. Attorney's Office. Prosecutors say the scheme involved "wash trading," where the firm used its software to make fake trades that inflated a cryptocurrency's trading volume. This practice, called market manipulation, can mislead investors by giving the impression that demand for a particular cryptocurrency is higher than it actually is. Wash trades are illegal in traditional finance and are considered fraudulent because they deceive investors and manipulate market behavior.

Court documents also identify Gotbit's two directors, Fedor Kedrov and Qawi Jalili, as co-conspirators. The indictment claims Gotbit documented these activities in detailed records, tracking differences between genuine and artificial trading volumes. The firm allegedly pitched these services to prospective clients, explaining how Gotbit's tactics would bypass detection on public blockchains, where transactions are recorded transparently. The U.S. Department of Justice has announced that it seized over $25 million worth of cryptocurrency assets connected to these schemes and made four arrests across multiple firms. If you've been following the crypto industry, you're probably familiar with "pump-and-dump" schemes that have popped up throughout the years. Although it's a form of market manipulation, it's not quite the same as "wash trading."

In a pump-and-dump scheme, the perpetrator artificially inflates the price of a security (often a low-priced or thinly traded stock) by spreading misleading or exaggerated information to attract other buyers, who then drive up the price. Once the price has risen due to increased demand, the manipulators "dump" their shares at the inflated price, selling to the new buyers and pocketing the profits. The price typically crashes after the dump, leaving unsuspecting investors with overvalued shares and significant losses.

Wash trading, on the other hand, involves simultaneously buying and selling of the same asset to create the illusion of higher trading volume and activity. The purpose is to mislead other investors about the asset's liquidity and demand, often giving the impression that it is more popular or actively traded than it actually is. Wash trades usually occur without real changes in ownership or price movement, as the buyer and seller may even be the same person or entity. This tactic can manipulate prices indirectly by creating a perception of interest, but it does not involve a direct inflation followed by a sell-off, like a pump-and-dump scheme.

JPMorgan Chase is suing customers who exploited an ATM glitch that allowed them to withdraw funds before a check bounced. CNBC reports: The bank on Monday filed lawsuits in at least three federal courts, taking aim at some of the people who withdrew the highest amounts in the so-called infinite money glitch that went viral on TikTok and other social media platforms in late August. [...] JPMorgan, the biggest U.S. bank by assets, is investigating thousands of possible cases related to the "infinite money glitch," though it hasn't disclosed the scope of associated losses. Despite the waning use of paper checks as digital forms of payment gain popularity, they're still a major avenue for fraud, resulting in $26.6 billion in losses globally last year, according to Nasdaq's Global Financial Crime Report.

The infinite money glitch episode highlights the risk that social media can amplify vulnerabilities discovered at a financial institution. Videos began circulating in late August showing people celebrating the withdrawal of wads of cash from Chase ATMs shortly after bad checks were deposited. Normally, banks only make available a fraction of the value of a check until it clears, which takes several days. JPMorgan says it closed the loophole a few days after it was discovered.

The lawsuits are likely to be just the start of a wave of litigation meant to force customers to repay their debts and signal broadly that the bank won't tolerate fraud, according to the people familiar. JPMorgan prioritized cases with large dollar amounts and indications of possible ties to criminal groups, they said. The civil cases are separate from potential criminal investigations; JPMorgan says it has also referred cases to law enforcement officials across the country. "Fraud is a crime that impacts everyone and undermines trust in the banking system," JPMorgan spokesman Drew Pusateri said in a statement to CNBC. "We're pursuing these cases and actively cooperating with law enforcement to make sure if someone is committing fraud against Chase and its customers, they're held accountable."

"In the early hours of Thursday, March 23, 2023, residents in the German town of Kronberg were woken from their sleep by several explosions," reports CNN .

"Criminals had blown up an ATM located below a block of flats in the town center..." According to local media reports, witnesses saw people dressed in dark clothing fleeing in a black car towards a nearby highway. During the heist, thieves stole 130,000 euros in cash. They also caused an estimated half a million euros worth of collateral damage, according to a report by Germany's Federal Criminal Police Office, BKA.

Rather than staging dramatic and risky bank robberies, criminal groups in Europe have been targeting ATMs as an easier and more low-key target. In Germany — Europe's largest economy — thieves have been blowing up ATMs at a rate of more than one per day in recent years. In a country where cash is still a prevalent payment method, the thefts can prove incredibly lucrative, with criminals pocketing hundreds of thousands of euros in one attack.

Europol has been cracking down on the robberies, carrying out large cross-border operations aimed at taking down the highly-organized criminal gangs behind them. Earlier this month, authorities from Germany, France and the Netherlands arrested three members of a criminal network who have been carrying out attacks on cash machines using explosives, Europol said in a statement. Since 2022, the detainees are believed to have looted millions of euros and run up a similar amount in property damage, from 2022 to 2024, Europol said...

Unlike its European neighbors, who largely transitioned away from cash payments due to the Covid-19 pandemic, cash still plays a significant role in Germany. One half of all transactions in 2023 were made using banknotes and coins, according to Bundesbank. Germans have a cultural attachment to cash, traditionally viewing it as a safe method of payment. Some say it allows a greater level of privacy, and gives them more control over their expenses.