The 2016 election brought the term fake news into headlines and into American’s living rooms. Both sides alleged that there were “fake news campaigns” working to spread news that was meant to sabotage their campaign.
With the growing use of social media to spread news stories and share information with friends, it’s absolutely true that fake news has become more common in recent years, whether it’s just poorly researched opinion based news, or actual news set up to scam or misinform readers.
One of the most dangerous examples of fake news comes in the form of pump and dump schemes. Like all types of fake news,Pump and dump schemes have been around since the beginning of time, but they have recently made a new (and dangerous) comeback in the form of digital media.
How Do Pump and Dump Schemes Work?
Imagine you have a stock that is low in value. You want to “dump” it, but you need someone to buy it from you.
No one is going to do that, at least not for the price you want. Â So you use fake marketing to convince investors that your stock is worth more than it is, because the price is about to skyrocket.
Essentially, you make them think that they have discovered secret, inside information and that it will pay off if they invest in the stock.
You “pump” the internet with news, “pump” up the price of your stock, and then “dump” it on an unassuming investor who didn’t do proper research.
What Pump and Dump Schemes Look Like Today
In the past, pump and dump schemes were run by fake investors making cold calls to convince investors that they had the next big secret on a valuable stock.
Today, pump and dump schemes are far less personal. They come in the form of spam emails, facebook posts, and any other form of online marketing that tries to convince a receipient to “act fast” in order to take advantage of a “unique opportunity.”
Protecting Yourself From Pump and Dump Schemes
Knowing that these schemes are out there can be unsettling and make you feel like there is a heightened risk whenever you decide to invest. Although pump and dump schemes are real concerns, there are measurable actions you can take to protect yourself from falling victim to such a scheme and keep your money safe.
The first thing to keep in mind is to beware of any information you read over the internet. It is no joke that we are living in the age of “fake news” anyone and everyone can post pages online, and they can even create fake “source” news articles that they link to in their posts to establish false credibility. If you are trying to conduct financial research online, stick to reputable sources.Even with reputable sources, double check to make sure that the page is not a fraud.
The next step is to consult a local financial advisor or private investigator before committing to the investment. Meeting with someone locally face to face who you can trust to verify if the investment is really a good idea will be worth your weight in gold. We don’t always have the knowledge or resources to detect pump and dump schemes on our own, but there are people out there who can help you.
The last step is to never feel pressure to jump into an investment. Pump and dump schemes play off of a person’s sense of urgency. When we feel like we are being offered a limited time opportunity, we act impulsively and don’t think things through the way we would if we felt that we had time. The reality is, no investment is worth it if you don’t have time to thoroughly research it and make sure it is legitimate. If you are feeling like you need to rush, it probably is too good to be true.
It is harder than ever to protect yourself online, with scammers getting smarter, and real, reliable information getting harder and harder to get a hold of. But take your time, think things through, and don’t be afraid to consult an expert when you’re getting ready to make a big decision. Your bank account will thank you for it.
Lauth Investigations International is a private investigation firm. We are constantly questioned about what our background searches can provide that a personal background search cannot. All I can say, it’s all in the details. You pay for what you get. If you want all detailed, accurate information, you will pay for a Private Investigation Background Search. If you want high level information, you will conduct your own Personal Background Search.
 Personal Background Search
With the internet, so much information is at our fingertips, but are we getting the most up to date information? A personal background search will bring up the following information:
Employment history. The search will bring up employment records; however, it may only bring up the last couple of positions held. It will not give details of all the employment information for the individuals.
Academic and/or professional qualifications. The search will provide education information and any certifications. High level information will only be received.
Criminal Records. The search will show all arrests and convictions.
Financial Standing. The search will bring up any liens, judgments, bank accounts and property ownership.
The information obtained will be high level and up to the person’s own ability to read the results. In order to get deeper levels, the user has to continue to pay the further in depth they go.
 Private Investigations Background Search
Unlike a personal background search conducted by a novice user, a private investigations background search is not just putting a name in a database and seeing what comes up. Private Investigators have access to several databases which will show a variety of information.
Employment history. The search will bring up employment records including all positions held, any discrepancies on a resume, the salaries affiliated with the positions and any other information a potential employer would need to know.
Academic and/or professional qualifications. The search will show all academic history and certifications even if the individual did not complete the program.
Criminal Records. The search will provide a detailed outline of all criminal activity from speeding warnings/tickets and arrests up to convictions and jail time served.
Financial Standing. The search will show all liens, judgments, bank accounts, property ownership, previous ownership of properties, dates properties sold, NSF checks and bankruptcies.
Along with the typical information received through a personal background search, private investigation background searches also include:
Worker’s Compensation Claims an individual has filed. Determining the character of an individual is just as important as their criminal history. For employment purposes, an individual who files numerous compensation claims reveals a dishonest, fraudulent individual.
Ascertain causes of accidents or any criminal activity. DMV reports will show accident information; however, they do not show all causes of the accidents. The in depth reports by private investigators show the reasoning behind accidents and if there was criminal activity involved in the accident as well.
In depth analysis of all findings in the research. Any individual can pull information; however, it’s how the information is analyzed and interpreted that makes it helpful.
Information on employers, business partners, and personal partners.
The process of performing background checks is and should be more in depth than just putting in a name in a database. To ensure the most updated accurate information is received, a private investigation background check is the direction to take. The analysis and time put in from a private investigator along with their ability to understand the findings places the outcome far more beneficial. The personal background checks are general and only provide high level information. Without the knowledge needed to understand the reports, the information does not provide the detail generally needed.
Background checks can be used for all kinds of reasons. If you are looking into a potential business partner, potential employee, potential life partner, a detailed background check with concise analysis can provide you the information needed to make informed decisions. Do not rely on just an internet search without the knowledge to know what information is in front of you.
In the wake of the Equifax data leak, where over 143 million Americans had information leaked to hackers, Americans are wearier than ever about having their private information stored online. Unfortunately at this day in age, it’s virtually impossible to keep your personal information offline and out of credit bureaus, so the all Americans should consider themselves as potential victims of this particular attack, as well as any future ones.
This does not mean that you should panic or feel paranoid about identity theft or fraud, but it does mean that you should put some habits in place that will help you to protect your information and act as quickly as possible in the event that you are a victim of identity theft. This article offers 5 easy things you can do to keep your data and your money safe from online threats.
Check if you are affected – Equifax has made it possible for you to check if you are affected or possibly affected by the leak. The first thing you should do is log on to equifaxsecurity2017.com and enter in your information to see the level of your risk. While this does not give you a clear cut answer if your data was affected, and while being affected does not necessarily mean you will have your information stolen, it can give you a place to start when it comes to building a plan.
If you are affected, sign up for free credit monitoring– For those who are potentially affected by the leak, Equifax offers you the option to enroll in their credit monitoring program for free. By entering your information, you will be able to take advantage of an advanced credit monitoring program that can seriously reduce your risk of identity theft. While it doesn’t make up for exposing your information, it is something worth signing up for. If you were not affected, Equifax does not offer you this option, so it may be a good idea to look into signing up for an inexpensive credit monitoring program yourself. Just because you were not affected by the Equifax leak does not mean you are not at risk.
Check your credit score regularly or freeze your credit altogether– Of course, one of the most important things to do to make sure you are not a victim of identity theft is to check your credit score. If someone has opened a credit card in your name, you might not know this until you check your score and see the history. Transunion and Experian are two reliable credit bureaus you can use to track your credit score. You can also enroll in free options like Credit Karma, a website that monitors your credit and sends you email updates if it goes up or down. However, keep in mind that these kinds of websites do not always give 100% accurate reports of your score. If you are really concerned about being affected by the Equifax leak, you can place a temporary freeze on your credit so that nobody can open any accounts in your name for a selected period of time.
Change your passwords– While not directly related to the Equifax leak, changing your passwords frequently and not using the same password for every account you have is one of the most important things to do in order to protect yourself online. Make sure you are changing your password every three months, and do not keep all of your passwords listed in one place.
Create an emergency account- Events like this always put us in the mindset of “worst case scenario”, which isn’t always a bad thing. One thing that the Equifax leak can inspire you to do is ask yourself what would happen if your identity was stolen today. Most people do not have an emergency plan in place for what to do if this happens, namely having a separate bank account available with a bit of emergency money you can use if your accounts get frozen or you are dealing with legal procedures to defend your credit. Getting set up with an emergency account and a plan is a great way to minimize the damage of identity theft in the event that you become a victim.
Ultimately, there is only so much you can do to keep your information safe, and everyone is dealing with a certain level of vulnerability as soon as they begin building credit. However, you can do the best you can by staying on top of new security technologies as they are released and remaining vigilant and informed about your finances.
Harvey, Irma, Jose, Max, Maria…this season has hit both the Atlantic and Pacific coasts with a seemingly endless stream of devastating hurricanes. Like many others, you are probably concerned with doing what you can to help the victims of the devastation, and this often means donating to online charities that are advertising their help for different hurricane relief funds. While most of the time online giving is a convenient and efficient way to offer aid, it can also expose you to certain types of online fraud and scams.
It is extremely common for online scammers to use disasters like hurricanes as a way to scam users into giving them money. Â Scammers pose as a non-profit organization deploying hurricane relief aid and collect online “donations” that end up going into the scammer’s pocket. Not only do these scams help fraudsters make money and create more victims, but they also take away useful resources that should be going to help with the hurricane crisis. Â
It is important to recognize the signs of a fraudulent hurricane relief website so you can steer clear and make sure your money is going to those who really need it. This blog outlines 5 warning signs that a site may be fraudulent and tips on how to check for sure.
Overnight Sites: Â Usually aid websites that ask for donations can be traced back to a parent page that has existed for years and has signs of legitimacy like a blog, certifications, or simply an up to date site that looks like it was made with care. Â If a site you click on does not have a homepage and is not linked to an organization that looks legitimate; this is your first red flag.
Collecting Money in a Strange Way:  Another definative warning sign is if the charity or non-profit asks you to send money in a strange way.  For example, through a direct wire transfer, sending cash or donating money via a transfer site like Paypal. Most non-profits will accept money through a reliable payment capture system that will require you to fill out your personal information, credit card number and will send you a confirmation upon receipt of the transaction. Texting donations is growing in popularity and it can be a good way to quickly donate.  However, it also comes with added risks. Make sure to check out the organization before blindly hitting send.
Make Sure Your Charity Exists: Â In the online world, it is easy to build an entire facade for a company that does not even exist. If you have a doubt about a charity, take a second and Google it and see if a phone number and physical address show up. If not, it might be better to try a different charity that you already know and trust. Even if you do manage to get someone on the phone to confirm the charity, still be aware of scammers that are developed enough to set up phone answering services.
Use Charity Evaluation Sites: Â If you really want to confirm a charity’s legitimacy, there are charity evaluation sites like Charity Navigator and Charity Watch, that can help you determine whether or not the charity is legitimate. While this is a great option for checking out the legitimacy of certain charities, keep in mind that local or new organizations might not exist in these databases; therefore, you do not necessarily want to write a charity off if they do not appear here. For a small or local organization, trust your judgment and make sure you talk with someone directly before sending a donation.
Trust Your Gut: Â Ultimately, after using the above tools, you will need to go with your gut. Scammers and fraudsters are getting savvier on how to confuse their victims, whether it is by posing as legitimate organizations, setting up fake call centers or making their sites look more realistic. No matter what new tips are revealed to help you discern a scammer, sometimes the best litmus test is your own gut feeling.
Don’t let a scammer take away your generous gift from victims who really need them. Never hand over money until you are absolutely sure who you are giving it to and do not be afraid to wait a day or two until you can make sure the charity checks out. If you suspect a hurricane relief fund to be fraudulent, you can report it to the Attorney General Office of your state or the Better Business Bureau here.
Private investigators tend to be known for their work in the private sector: finding missing persons, helping to track down runaways, and investigating concerns of infidelity. However, most private investigators actually conduct a majority of work in the public and corporate sector, working with law offices, hospitals, and corporations to help with everything from case investigations to fraud convictions.
One of the most common ways that private investigators help corporate clients is by conducting corporate crisis management. This blog post discusses what corporate crisis management is and how private investigators effectively help corporations when they find themselves in crisis.
What are the most common Corporate Crises?
Corporate crisis management is any situation where the unexpected arrives in a corporate setting, but there are common examples that can arise multiple times within the life of a corporation. The most common examples of corporate crises are:
–PR crisis – Information is leaked to the media and the corporation is put on the defense.
-Internal employee crisis– An employee has somehow compromised the company’s integrity, either by stealing, lying, or divulging information to an outside source. Â A PR crisis can be it’s own separate crisis, but most other types of crises end up being a PR crisis too once the media gets word of the situation.
–Financial crisis– The company finds itself in a financial crisis such as bankruptcy. Financial crises affect everyone from the accounting department to sales reps and are usually linked to an internal crisis such as theft or fraud.
–Legal crisis– The corporation is being accused of breaking the law, or needs to sue a client or partners. Legal crises require special treatment because they need to include outside sources such as lawyers, opposing counsel, police officers, etc.
–Partnership crisis– A partnership within the corporation is breaking up, leading to conflict and confusion in the company.
If you find yourself faced with one of the types of corporate crises described above, you will immediately feel the need to:
Conduct a thorough investigation of the events that transpired, build a strong defense for yourself and your company, locate any untrustworthy sources (employees that have leaked information, etc.), and mitigate damages as much as possible. If there is any sort of legal issues involved, you’ll want to gather a better understanding of any laws and regulations that apply to your specific situation, and how your state and federal laws can help or hurt your position. You’ll also need to stay on top of deadlines and maintain communications with the various parties involved in the crisis. This is why corporate crises have such a devastating effect on the CEO and HR departments in companies, and why private investigators have become a more common accessory for dealing with these kinds of issues.
So how do private investigators help the corporation manage the stress and work that comes along with a corporate crisis? Most of the help comes from the resources and tools that private investigators have access to that allow them to conduct more thorough research on individuals and companies, as well as the individual investigator’s experience when it comes to dealing with legal issues in that particular geographical region. (This is one reason why hiring a local investigator that specializes in your city or area is important.) Â
Returning to the four types of corporate crises discussed earlier, here are the major ways in which a private investigator helps corporations in these specific circumstances:
PR Crisis- Private investigators can use their tools and experience to track down any individuals who are leaking information to the press, they can also help the corporation understand how they can legally and effectively craft a better public image. Private investigators are well-equipped to deal with issues of privacy and can help CEO’s and employees install and manage the security equipment that they need to stay private and safe, both on the computer and in their office.
Internal crisis– In the case of an internal crisis, a private investigator can help you to discreetly and thoroughly investigate and screen your employees to figure out exactly what happened. PI’s can also act as consultants on how to take next steps after a corporation discovers any instance of employee misconduct or theft.
Financial Crisis- Private investigators that specialize in forensic accounting are used to track down corruption or fraud within a corporation’s books, catch instances of employee theft, trace suspicious transactions or activities, and essentially find any issues that a corporation has with their finances. If a company is already bankrupt, a private investigator can help to give experienced advice while helping the corporation to maintain their privacy and know their options.
Legal crisis- When a company is in a legal crisis, a private investigator can help to do discovery on the opposing council in order to build a strong defense for the company and its leaders. Going into a legal battle without having all of the information is a dangerous step that corporations need to avoid. Private investigators can even run background checks on their own clients in order to understand what the opposing counsel might be trying to use against them. In general, it is a good idea to have the expertise of a private investigator to help bolster the attorney’s case when in any sort of legal battle.
Partnership crisis– As with a legal crisis, a private investigator can help to protect their client by doing discovery on the other partner in the arrangement and help to build a strong case that will protect the corporation’s privacy and interests.
If you have found yourself in a corporate crisis, you may want to consider if hiring a private investigator will help you to solve your problems faster and with more privacy and efficiency. Most private investigators tend to be reasonably priced and will give you a big return on investment if they help you to catch the one piece of information that will make or break your case.
Small business owners have so many things to consider at any given time. As a small business ourselves, we understand this. Day to day concerns regarding employees, inventory, pricing, and customer satisfaction take a significant amount of time and effort, leaving little room to worry about potential crises that could eventually happen like employee theft. We do not like to imagine the worst, and often try to live our day to day lives assuming the best. Unfortunately, this lack of focus on security makes small business owners especially vulnerable to employee theft.
Employee theft is the cause of failure for 30% of failed small businesses, and the median amount lost is $147,000.00 This is why it is so important to learn the signs of employee theft so that you can detect it early on. This blog article explains five common ways that employees commit fraud so that you can be on the lookout and catch problems before it is too late.
Billing fraud- In this case of fraud, an employee would send out invoices to customers for products and services that were not actually rendered. This sort of fraud is common in the healthcare industry as well as for online subscriptions like web domain renewal invoices. Make sure that you have an extra set of eyes overlooking all invoices: not just the ones that come to your company, but the ones that are sent out. If you are a small business, you may have an employee that is sending out extra invoices to your clients and collecting the extra cash without you even realizing it.
Kickback arrangements– Kickback arrangements are a type of fraud where an employee makes a deal with a certain supplier or partner to participate in a corrupt act such as inflating an invoice for products, and then gets a “kickback” payment as a reward for colluding with them. A recent example of this is the nearly 1 million dollar kickback scheme involving the Detroit Public Schools, where a school supply vendor provided kickbacks to more than 12 school employees in the Detroit Public School district in exchange for fraudulent invoices. Kickback arrangements are dangerous and highly illegal, but they can go on for years without being perceived. Again, make sure you look over all of the invoices coming in and out of your office to make sure that there are no extra or non-existent payments.
Check tampering– Check tampering is usually a case of an employee stealing company checks and writing them out to him or herself, but it can also be a case of an employee intercepting outgoing checks and cashing them in their own account. The majority of check tampering happens in small businesses and employees who are guilty of check tampering most frequently come from the accounting department. Make sure that you physically keep your checks secure, but also double check your bank statements for all cashed checks to make sure they are valid and that you wrote them yourself.
Skimming– Skimming is basically any example of where the full sum of a profit is not reported and some of the money is directly pocketed by an employee. Usually, employees practice this type of fraud by “skimming” relatively small amounts of money off of multiple purchases over time. Skimming can come from any area of your company: it could be employees who sell products that give things away for free to friends (or pocket them for themselves) or, on a larger scale, it could be accountants who record sums a little bit under the actual amount. Catching skimming can be hard. One of the best things to do is choose random transactions and double check them with your bank statement, and let your employees know that you are on the lookout for skimming. Knowing that they have a manager who is watching out for these kinds of tricks can help keep people in line.
Expense reimbursement fraud– In expense reimbursement fraud, employees somehow tamper with their business expenses in an attempt to get reimbursed for personal expenses and purchases. This could be anything from a tank of gas to an expensive flight. Expense reimbursement fraud can happen at any level of your business, but it is usually upper-level employees (who often travel or host clients as a part of their position) who commit expense reimbursement fraud. To prevent expense reimbursement fraud, it is important to review all expense reports carefully and insist that your employees provide documentation (and explanations) for each expense.
If you notice any suspicious activity that leads you to believe an employee is committing any of the above forms of fraud, don’t panic. There are steps you can take to handle situations of employee theft correctly and calmly. Check out our blog, How to Suspect if Someone is Lying to You for tips on how to handle a suspicious employee.
