scams Archives

MoviePass ex-CEO pleads guilty to fraud over ‘unlimited’ plan

January 8, 2025

The former CEO of MoviePass, Ted Farnsworth, pleaded guilty Tuesday, Jan. 7, to fraud for lying to investors about the success of the company. Now, he faces up to 25 years in prison.

The subscription service gained a lot of attention in 2017, promising unlimited access to movies at theaters for just $9.95 a month. But that proved to be unattainable, despite reaching a peak of 3 million subscribers in 2018, with the company eventually filing for bankruptcy in 2020.

According to the Justice Department, Farnsworth, who’s been in federal custody since August 2023, falsely claimed the plan for the company was tested, sustainable and would be profitable, or at least break even on subscription fees alone. Now, he’s accused of knowing all along that the $9.95 unlimited price was a temporary marketing gimmick intended to attract new investors.

Farnsworth also pleaded guilty to conspiracy to commit securities fraud as the leader of another publicly traded company, Vinco Ventures, Inc. Prosecutors said he tried to inflate its stock price and took millions of dollars from the company for himself.

He faces five years on this count and another 20 for MoviePass. A sentencing date hasn’t been set yet.

As for MoviePass, the company has new management, and a new business model, with plans to relaunch at some point, but no specific timeline has yet been released.

Johnny Depp, Kelly Rowland and Reba warn fans about AI scammers

January 7, 2025

Scammers are posing as celebrities to trick fans out of their money. Johnny Depp, Kelly Rowland and Reba McEntire have recently warned their supporters about the alarming trend.

Stars are urging fans to stay vigilant, especially as scammers use advanced technology and artificial intelligence to make their impersonations more convincing.

Johnny Depp issues warning

Depp took to Instagram on Monday, Jan. 6 with a detailed warning for his fans. He emphasized that his official Instagram account is his only social media presence.

View this post on Instagram

A post shared by Johnny Depp (@johnnydepp)

Depp stated he’s not on platforms like X, Snapchat, or Discord. Likewise, he said he doesn’t offer paid fan meetings, club memberships, or fan cards—opportunities scammers attempt to leverage for money.

“Today, AI can create the illusion of my face and voice,” Depp said in his post. “Scammers may look and sound just like the real me. But neither I, nor my team, will ask you for money or your personal information.”

Depp says his team is “actively working to combat these illicit schemes.”

Kelly Rowland fan targeted by impersonator

Singer and actress Kelly Rowland also shared a warning after facing a similar issue. Someone using the Instagram handle @iam.kellyrowland without a profile picture messaged a fan claiming they lost their credit card and needed money for a plane ticket to perform in the fan’s city.

The scammer followed up with another message, claiming to be Beyoncé.

Reba McEntire urges fans to be cautious

Last November, McEntire shared her own warning on Instagram. She stressed that neither she nor her team would ever contact fans via direct message or phone to solicit money.

McEntire urged her followers to protect themselves online and be wary of scammers attempting to exploit their admiration for her.

How to spot a scam

When it comes to online scams, there are clear red flags to watch for:

Verify the account: Look beyond the blue checkmark. Check the account’s post history, follower count and activity to ensure authenticity.

Be wary of urgent requests: Celebrities won’t ask for money or personal information through direct messages.

Look out for odd spelling and grammar: Many scams contain typos or awkward phrasing, like the scammer who misspelled “plane” in messages pretending to be Rowland.

Check website URLs: Always inspect links before clicking. Watch for subtle misspellings or unfamiliar domains.

Donors beware, the season of giving often leads to scams

December 4, 2024

Six former Apple employees are now facing felony charges in California. They are accused of scamming the tech giant out of charitable matching donations and then keeping the money.

One of the suspects is an executive at a nonprofit organization that supports children and teenagers living in poverty called Hop4Kids. The prosecutor in Santa Clara said that particular suspect was the ringleader and carried out the scheme for almost three years between 2018 and 2021.

District Attorney Jeff Rosen accused the unnamed top official of using his status in the nonprofit to keep matching contributions from Apple, then returning the initial donations to the employees.

The DA believes they stole about $150,000 and wrote off about $100,000 on their tax deductions. When arraigned, they will face charges of theft, perjury and tax fraud.

The New York State Division of Consumer Protection is urging donors to do research on any organization they plan on giving to this holiday season. The agency said donors are motivated by generosity this time of year and end of the year tax benefits.

To avoid getting scammed this holiday season, there are a few things to keep in mind:

Check databases, such as the Better Business Bureau or Give.org, before contributing. Beware of phony charities that have similar names to the real ones. Keep a close eye on the specific name, website and contact information for an organization.
Do not give out credit card numbers or Social Security numbers in response to an unsolicited request for money.
Beware of anybody who wants you to wire money or purchase gift cards for them.

Microsoft’s AI language interpreter could be boon for cybercriminals

November 20, 2024

Microsoft unveiled a new Teams AI interpreter on Tuesday, Nov. 19. The program can replicate a user’s voice in near-real-time in nine different languages.

The company said it plans to expand to 31 different languages in the future. The languages reportedly range from English, French, German, Italian, Chinese, Korean, Japanese, Portuguese and Spanish.

The feature is currently available to a select group of users. Officials said that will expand to more customers with a Microsoft 365 Copilot license in 2025.

The company touts the new technology as a less expensive way to have international phone calls or meetings without the expense of a human translator.

However, the new feature isn’t quite perfect yet, with Microsoft admitting the Teams AI interpreter may not be 100% accurate.

Still, critics say that’s not their biggest concern about the AI feature. They said they’re afraid the technology could open the door to fraudsters.

Security analysts warn of potential hackers using the technology, noting deepfakes are already a problem and impersonation scams reportedly cost Americans more than $1 billion in 2023.

In 2024, scammers used deepfake technology to setup a fake Teams video conference call and stole $25 million from a multinational firm.

An anonymous threat analyst group is already skeptical of Microsoft’s new technology, posting on X, “Ever be North Korean but want to sound American? It’s now possible,” apparently poking fun at the Big Tech company.

However, the group’s concerns may not just be talk. A recent report by SecureWorks warned of North Korean hackers applying for IT jobs at companies across the United States, United Kingdom and Australia, in an attempt to steal company secrets.

Cybersecurity experts urge companies and organizations worried about impersonation scams to opt out of the new Microsoft feature. They said companies should use the generic voice simulator option instead.

Microsoft users will reportedly have to give consent to the AI interpreter through privacy settings for it to use voice simulation during a meeting.

They can opt out of the voice replication by disabling it in settings. The interpreter will then use a default interpretation of the person’s voice instead.

‘Black Fraud Day’: Social media sees influx of Black Friday AI fraudsters

November 20, 2024

The ads for the best sales of the season and Black Friday deals are aimed at attracting those day-after Thanksgiving shoppers. Cyber security experts are sounding the alarm that scammers are now using AI to turn it into so-called “Black Fraud Day.”

Richard Horne, chief executive of the National Cyber Security Center in the U.K., said scammers are targeting bargain hunters by using artificial intelligence and becoming more sophisticated. The shady tactics include fake ads online, often for clothing and tech products. These are generally social media ads with huge discounts.

Users should be on the look out for phony links that direct users to websites that look real but are really after their personal and financial information. Often, the web link is slightly different from the real one and consumers can have a hard time recognizing the difference.

Consumer experts also said be careful when buying gift cards online. Fake gift cards are now a favorite of scammers. Gift cards make it almost impossible for the victim to get their money back. Instead, experts advise shoppers to go directly to the company website or buy gift cards at the physical store.

Another favorite of thieves is the fake delivery alert that shows up in a person’s email. Once the person clicks on the link that is attached, the scammer steals their information.

The British security chief says customers across the pond lost the equivalent of $14.5 million to thieves during the holiday shopping season last year and his country saw 16,000 reports of online scams.

Election fuels 4.9 billion robocalls in October

November 8, 2024

Americans saw an increase in robocalls in October, receiving nearly 4.9 billion of them due to the presidential election. According to data released Friday, Nov. 8, by YouMail, October was the highest month in volume for robocalls since August 2023.

October’s nearly 5 billion robocalls were a 9.5% increase from September. October averaged 158.4 million robocalls per day, and included calls like this:

Hi, this is Jennifer. I’m an underwriter with our approval department. I’m just calling to let you know it appears you’ve been prequalified for a personal loan of up to $72,000 with payments starting as low as $5.30 a month.
Robocall message

YouMail said most of the increase was election-driven.

Telemarketing calls rose over 21% from September and scams jumped around 18%. Both types make up almost half of all October robocalls.

The Federal Trade Commission said robocalls are illegal when they are sales messages from companies that did not get written permission to call.

The agency is offering these steps on how to handle unwanted robocalls:

Hang up. Don’t press any number or call back.
Don’t trust caller ID. It can be faked.
Get call blocking apps or services. This will help you get fewer robocalls.
Report it. Tell the FTC at DoNotCall.gov.

YouMail said it determined its figures by reviewing robocall traffic attempts to get through to its millions of users on its robocall blocking app.

“We’ve seen a big jump in robocalls over the past few months, however 2024 continues to be 3% lower than 2023,” YouMail CEO Alex Quilici said in a statement.

Quilici said, with election season winding down, YouMail fully expects “to see volumes drop materially over the next few months.”

Florida officials put out warning over scammers impersonating FEMA agents

October 18, 2024

As thousands of people look to rebuild their lives after Hurricanes Helene and Milton, Florida officials are putting out a warning about scammers impersonating Federal Emergency Management Agency (FEMA) officials. Sarasota County’s emergency management chief announced on Thursday, Oct. 17, that imposters with fake FEMA badges were asking residents for their bank account information.

The agency advises individuals to never give out their bank account information nor give cash to anyone claiming to be a FEMA agent.

FEMA also notes that natural disaster survivors should be aware of online scammers. The agency advised people to avoid sharing personal or financial information online, as well as following links promising offers for FEMA disaster assistance.

FEMA maintains it does not “endorse any commercial business, products or services.”

If a person has any concerns about potential scams, the agency advises people to call local law enforcement or report any suspicious or fraudulent activity to the National Center for Disaster Fraud’s website.

Insurance analysts estimate recovery from Hurricanes Helene and Milton could soar past $100 billion.

Cryptocurrency scams cost Americans more than $5.6B last year: FBI

September 9, 2024

As cryptocurrencies like Bitcoin and Ether soar in popularity, the Federal Bureau of Investigation (FBI) warns that scams are also on the rise. The FBI said on Monday, Sept. 9, that Americans lost more than $5.6 billion due to cryptocurrency scams in 2023, a 45% increase from the year before.

The agency said that the “decentralized” nature of crypto and the ability to quickly transfer the funds to foreign accounts makes it a common avenue for criminals.

The FBI warned that thieves will often disguise themselves through online dating profiles or social media. The agency said the scammers will develop a relationship with the victim before leading them to fake websites to steal their money. Scammers often start out requesting small amounts of money to make the transaction seem legitimate.

In some cases, the FBI said that fake businesses target victims by promising to help them recover the money they lost to cryptocurrency scams. The FBI cautioned Americans to be careful when investing their money, especially when they have never met the individual they are negotiating with face-to-face.

Cryptocurrency transactions are reportedly tracked on public block chains. However, law enforcement agencies said scammers quickly transfer money overseas, creating legal barriers for U.S. authorities to recoup stolen funds for victims.

Meta removes 63,000 accounts linked to sextortion scams

July 24, 2024

Facebook and Instagram’s parent company, Meta, said it recently removed thousands of accounts linked to sextortion scams. Those scams involve online predators posing as someone they are not to lure a person into sending sexual photos or videos of themselves, only to use them as blackmail unless the person pays them or gives them banking information.

Meta said it took down 63,000 accounts originating from Nigeria alone, including one sextortion ring of 2,500 accounts linked to a group of about 20 people. Meta also said it removed 200 Facebook pages and 5,700 Facebook groups, all from Nigeria. Those pages and groups provided tips for scammers like scripts for talking with victims and links to collections of photos that scammers could use when making fake accounts to trick people.

Nigeria became a hotspot for sextortion crimes in recent years. Meta said many of the accounts it recently shut down were linked to a group called the “Yahoo Boys,” a group of criminals in Nigeria known for financial scams.

This crackdown comes as Meta tests new technology to help steer users away from these types of scams.

The most common platforms for sextortion scams are Instagram and Snapchat, according to a recent study from the National Center for Missing & Exploited Children and Thorn, a nonprofit that uses technology to combat the spread of child sexual abuse material.

Teen boys threatened with financial sextortion scams at high rate

June 25, 2024

Financial “sextortion” scams are becoming more common, and it appears teenaged boys are paying the price. Anti-child sexual abuse technology company Thorn looked at more than 15 million reports from the National Center for Missing and Exploited Children (NCMEC) from 2020 to 2023. The company found that sextortion, especially financial sextortion, is a growing problem.

The FBI defines sextortion as when someone is threatened or coerced into sending sexually explicit images online. Financial sextortion is when someone uses those images as blackmail in exchange for payment.

The study found reports of sextortion went up dramatically after 2022, exceeding 600 a week.

In the past, sextortion schemes frequently targeted girls. However, this new study shows teenaged boys are now the most common victims of financial sextortion. The study found that 14- to 17-year-old boys account for 90% of the financial sextortion reports to NCMEC.

According to the report, the vast majority of child sextortion cases start with “catfishing,” usually in the form of someone posing as another teenager to get teen boys to send sexually explicit images or videos of themselves. The perpetrator will often then threaten to ruin the teen’s life by sharing the pictures with their friends or family if they don’t send money.

The study also found Instagram was the most commonly used social media platform for financial sextortion. The platform was mentioned in more than 80% of threats and used more than half the time to follow through.

Instagram was also the most popular way perpetrators made initial contact with victims. However, the report also noted a trend of using end-to-end encrypted messaging apps, like WhatsApp or Telegram, to communicate with victims. Gift cards and Cash App were identified as the most common payment methods.

Meta, which owns Instagram, said financial sextortion is a “horrific crime” and it is already implementing new features to help protect users.

The company said it is currently testing a feature that would blur nudity in direct messages and developing technology to help identify accounts that may potentially be engaging in sextortion scams.

The report identified Nigeria and Cote d’Ivoire as the two countries most often linked to sextortion schemes. It says incidents have been tied to crime networks that operate in these countries.

MoviePass ex-CEO pleads guilty to fraud over ‘unlimited’ plan

Donors beware, the season of giving often leads to scams

Microsoft’s AI language interpreter could be boon for cybercriminals

‘Black Fraud Day’: Social media sees influx of Black Friday AI fraudsters

Election fuels 4.9 billion robocalls in October

Florida officials put out warning over scammers impersonating FEMA agents

Cryptocurrency scams cost Americans more than $5.6B last year: FBI

Certified unbiased reporting

Transparent and credible

Newsletter

Stay connected