This issue focuses on avoiding foreclosure scams — and helping others do so as well. Although this issue is targeted to the US program, similar scams likely exist in other countries as well.
Mortgage reconstruction — on the face of it — sounds like a good step towards reversing the real estate market collapse: a government program to help up to 7 million Americans save their foreclosure-threatened homes by significantly lowering their repayments.
Click here to read the full article.
©Copyright Audri and Jim Lanford. All rights reserved.
Reprinted with permission.
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Cybercrime spreads on Facebook
June 30, 2009
Fraudsters prey on users who think the world’s top social networking site, Facebook, is a safe haven on the Internet.
Lisa Severens, a clinical trials manager from Worcester, Massachusetts, learned the hard way when a virus took control of her laptop and started sending pornographic photos to her colleagues.
“I was mortified about having to deal with it at work,” said Severens, whose employer had to replace her computer because the malicious software could not be removed.
Cybercrime costs U.S. companies and individuals billions of dollars a year. Scams target and exploit those naive to the dark side of social networking, security experts say.
MySpace was the most-popular hangout for cyber criminals two years ago. Experts say hackers are now entrenched on Facebook, whose membership has soared from 120 million in December to more than 200 million today.
“Facebook is the social network du jour. Attackers go where the people go. Always,” said Mary Landesman, a senior researcher at Web security company ScanSafe.
Scammers break into accounts posing as friends of users. They send spam that directs them to websites that steals personal information and spreads viruses. Hackers take control of infected PCs for identity theft, spamming and other mischief.
Read more details about Cybercrime on Facebook here.
4th of July Dessert Recipes
June 30, 2009
Take a break from Internet marketing or from whatever work you do, and enjoy making some fabulous 4th of July desserts. They look so fabulous!
Looking for some patriotic treats to serve up this weekend? Check out these colorful, berry-licious ideas from ’round the web by clicking the link below!
Check out the Flag Cake below. Doesn’t it look scrumpcious!
Click here for the 4th of July Flag Cake Recipe.
Wishing you a Safe and Sane 4th of July.
Was whole economy a Ponzi scheme?
June 30, 2009
LONDON — It was perhaps inevitable that we ended 2008, the year we learned we were up the creek, with a great financial scandal: the Madoff Ponzi case.
What is even more remarkable is the way in which the alleged fleecing of wealthy people and charities – investors who should have known better or employed people who did – of many billions of dollars serves as a mirror for the broader culture. It shows how we went wrong and where we are left, now that we realize our errors.
Click Here to read the full article.
By James Saft
The New York Times
Published: Thursday, January 1, 2009
Bernard Madoff was sentenced to prison today after he admitted to running one of the largest and longest financial frauds in recent history.
U.S. District Judge Denny Chin in Manhattan ordered Bernard Madoff who is 71 years old, to serve the statutory maximum sentence in prison of 150 years.
“Here the message must be sent that Mr. Madoff’s crimes were extraordinarily evil,” said Judge Chin.
“By giving this sentence the judge tried to send a clear message to victims he heard their pleas for justice,” said Paul Radvany, a Fordham University law professor. The judge also wanted to send a message to would-be Madoffs “you’ll face very serious consequences,” said Mr. Radvany.
The news about Bernard Madoff’s $50 billion ponzi scheme has some wondering what exactly is a ponzi scheme. A Ponzi scheme is a type of pyramid scheme that promises a huge return in a very short. The Ponzi scheme relies on giving big payouts to early investors to lure in new investors and using new investor money to pay off the early investors. If a Ponzi scheme is working the early investors will often reinvest their money in the corrupt scheme. The term originated with Charles Ponzi who bilked investors out of millions in the 1910s and early 1920s. At his peak Ponzi was bringing in $250,000 a day. Here’s an explanation from the U.S Securities and Exchange Commision.
Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.
Take the Right Steps to Prevent Identity Theft When Your PC is Replaced, Lost or Stolen
June 27, 2009
There’s probably only one failsafe way to totally prevent identity theft when you sell or give away your computer. That’s by removing the hard drive first and putting it through a commercial crushing machine!
But maybe that’s a bit over-the-top for your needs, especially if you want to give away a complete system for someone else to use.
©Copyright Audri and Jim Lanford. All rights reserved.
Reprinted with permission.
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The Nestle company is recalling an estimated 300,000 cases of the cookie dough as a precaution after reports of food-borne illnesses in 28 states.
The pre-made dough may be contaminated with the bacterium E. coli 0157:H7, which causes abdominal cramping, vomiting and diarrhea, said the Food And Drug Administration and the Centers for Disease Control and Prevention. Young children and the elderly are more effected by the bacterium E. coli.
“While the E. coli strain implicated in this investigation has not been detected in our product, the health and safety of our consumers is paramount, so we are initiating this voluntary recall,” stated Nestle.
According to Laurie MacDonald Nestle spokes woman, raw dough was one of the things the sick people reported eating.
“The health and safety of our consumers is our No. 1 priority,” she said. “We felt the best thing to do is a voluntary recall.”
She said Nestle was informed by the FDA Wednesday night “and immediately took action.”
“We really want to remind consumers that raw cookie dough should not be eaten,” said MacDonald.
The CDC says, 66 people have become sick in 28 states after eating raw cookie dough since March. Twenty-five people were hospitalized and no one has died.
The FDA and the CDC say people who have become sick after eating refrigerated Toll House cookie dough should contact their doctors.
SCAM: The Nigerian Advance Fee Scheme
June 17, 2009
The Nigerian Advance Fee Scam has been around for quite awhile, but despite many warnings, continues to draw in many victims. In fact, the Financial Crimes Division of the Secret Service receives approximately 100 telephone calls from victims/ potential victims and 300-500 pieces of related correspondence per day about this scam!
Click here to read the full article.
©Copyright Audri and Jim Lanford. All rights reserved.
Reprinted with permission.
Subscribe free to Internet Scambusters at
http://www.scambusters.org
This week the Obama administration will propose the most significant new regulation of the financial industry since the Great Depression which includes a new watchdog agency to look out for consumers’ interests.
The new plan is expected to be released Wednesday. Our government would have new powers to seize key companies like insurance giant American International Group Inc. whose failure jeopardizes the financial system. Currently, the government’s authority to seize companies is mostly limited to banks.
“We had a system that proved too unstable, too fragile. . . . Those are things we have to change,” Treasury Secretary Timothy F. Geithner said Monday at an economic forum in New York.
In addition, the administration wants to impose regulation over the market for derivatives; the murky financial contracts used to hedge risky investments including new reporting and disclosure requirements. Institutions that originate loans would be required to retain 5% of the credit risk when the loans are turned into securities.
In the heat of the financial crisis last year, there were widespread calls for the government to merge several banking regulatory agencies into one to reduce gaps in oversight and stop what might be called “regulator shopping.”
For example, AIG was able to choose the Office of Thrift Supervision for its non-insurance financial business when it bought a small savings and loan in the late 1990s. That office has been viewed as a weaker regulator, and was strongly criticized in a government report this year for ignoring repeated warning signs about Pasadena-based IndyMac Bancorp before the thrift’s failure last summer.
Barbara Roper, director of investor protection for the Consumer Federation of America said, “I’m concerned that people think we’ve stepped back from the brink of disaster and so they’re not as committed to seeing real meaningful reforms adopted.”
Scott Talbott, chief lobbyist for the Financial Services Roundtable, which represents large financial institutions, said there was still a strong impetus in Washington for regulatory reform and dismissed the suggestion that the Obama administration had missed its chance to implement it.
“This has moved at lightning speed,” he said. “You’re talking about a historic piece of reform.”
Senator John Ensign Announces Extramarital Affair
June 17, 2009
Sen. John Ensign (R-Nev) announced at a Las Vegas press conference Tuesday that he had an affair with a campaign aide who was married to another Ensign staffer.
“They both worked for me,” said Ensign.
“Last year I had an affair. I violated the vows of my marriage,” said Ensign. “It is the worst thing I have ever done in my life. If there was ever anything in my life that I could take back, this would be it.”
The news was the latest setback for a Republican Party that suffered losses of at least 13 Senate seats in the past two elections.
It was unclear why Ensign decided to disclose the affair Tuesday. He took no questions from reporters at the news conference.
Ensign’s wife, Darlene, also released a statement about the affair.
“Since we found out last year we have worked through the situation and we have come to a reconciliation. This has been difficult on both families. With the help of our family and close friends our marriage has become stronger,” said Mrs. Ensign.
In his statement, Ensign indicated he will not resign his Senate seat, adding, “I know that I have hurt and disappointed my wife, Darlene, my children, my family, friends, my staff and all those who believed in me. To all of them, especially my wife, I am truly sorry.”
