The Federal Trade Commission (FTC) has seen an alarming rise in gamified job scams over the past year. The FTC says that reports of job scams have quadrupled each year since 2022 topping out at 20,000 reports at a cost of $41 million in total during the first six months of the year.

Job or task scams often involve the scammer asking someone to do a relatively simple task online such as liking videos or rating product images in assigned sets using terms like “product boosting” or “app optimization,” according to the FTC. People are promised higher payments for completing a certain amount of sets that may pay out small amounts at first but they end up costing more than they pay out in the long run.

Scammers will reach out to people via text messages or communication apps like Whatsapp offering them a task job. The most common type of this scam usually involves some kind of cryptocurrency. Then the scammer may ask their target to deposit some money or “charge up” their account through an app in order to start working on new and bigger sets of tasks. They may even try to convince their victims by hearing testimonials from fake recipients about how much money they made for completing relatively simple tasks.

The victim will “charge up” their accounts with their own money in order to avoid losing what the app shows they’ve earned in the hopes they’ll get their deposited money and the fee they are owed. Instead, the money they’ve been paid isn’t real and any money they’ve deposited to “charge up” their account is lost for good.

The FTC recommends ignoring offers from unknown text or WhatsApp messages and never paying someone for the promise of being paid at a later time or date. The commission also recommends steering clear of any job offers that involve rating or liking things online, a practice the FTC says is “illegal and no honest company will do it.”

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/the-ftc-warns-gamified-job-scams-are-on-the-rise-233029615.html?src=rss

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Former cryptocurrency leader Alex Mashinsky has pleaded guilty to two fraud charges. The founder and CEO of Celsius Network was indicted on seven criminal counts in 2023, including charges of fraud, conspiracy and market manipulation. He entered a not guilty plea at the time, but in a hearing today, Mashinsky pled guilty to two of those original counts. The first is commodities fraud and the second is a fraudulent scheme to manipulate the price of his company's in-house crypto token CEL. Reuters reported that as part of a plea deal, Mashinsky has agreed not to appeal any sentence of 30 years or less.

Mashinsky's case is one of several fraud cases being pursued against leaders of cryptocurrency operations. The most well-publicized charges are those brought against FTX founder Sam Bankman-Fried, who was found guilty on seven counts of fraud in 2023.

National agencies began a push into fraud charges for cryptocurrency schemes in 2022, when several notable companies filed for bankruptcy as token prices plummeted in response to rising interest rates and high inflation. That year, the Federal Trade Commission said that victims of crypto schemes had lost more than $1 billion since 2021.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/former-celsius-ceo-pleads-guilty-to-two-fraud-charges-224046043.html?src=rss

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The Federal Trade Commission (FTC) can now go after scammers posing as tech support providers even if it's the consumer who called them up. It has just approved amendments to its Telemarketing Sales Rule that expands its coverage to include "inbound" calls to companies pitching "technical support services through advertisements or direct mail solicitations." Samuel Levine, Director of the FTC's Bureau of Consumer Protection, explained that the new rule will allow the agency to hold these scammy businesses accountable and to get money back for the victims. 

"The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses," Levine also said, because the rule's expansion would mostly help protect consumers 60 years and older. According to the agency, older adults reported losing $175 million to tech support scams in 2023 and were five times more likely to fall for them than younger consumers. 

Tech support scams typically trick potential victims into calling them by sending them emails or triggering pop-up alerts claiming that their computer has been infected with malware. Scammers then ask their targets to pay for their supposed services by wiring them money, by putting money in gift or prepaid cars or by sending them cryptocurrency coins, because those methods can be hard to trace and reverse. They've long been a problem in the US — the agency shut down two massive Florida-based telemarketing operations that had scammed victims out of $120 million in total way back in 2014 — but the issue has been growing worse over time. The $175 million victims reported losing in 2023 was 10 percent higher than the reported losses to tech support scams in 2022. 

As the FTC notes, the Telemarketing Sales Rule has been updated several times since the year 2000 before this latest amendment. The first amendment in 2003 led to the creation of the Do Not Call Registry for telemarketers, while subsequent changes were made to cover pre-recorded telemarketing calls and debt collection services.

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/ftc-expands-rules-to-hold-tech-support-scammers-accountable-143051612.html?src=rss

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Meta is making progress in its fight against pig butchering scams. In an update, the company said it has taken down more than 2 million accounts associated with such scams this year and that its effort to work with other companies to take down fraudsters has had some success.

Described by Meta as “one of the most egregious and sophisticated” online scams, pig butchering is an increasingly common ruse in which scammers trick victims, who they often find on social media and dating apps, into making crypto investments and other financial schemes before disappearing with their funds. One study, published earlier this year and reported by Bloomberg, found that these scams “have likely stolen more than $75 billion from victims around the world” since 2020.

Meta says it’s been tracking the criminal networks behind these scams for the last two years as these groups have increasingly grown their geographic footprint. “This year alone, we’ve taken down over two million accounts associated with scam centers in Cambodia, Myanmar, Laos, the United Arab Emirates and the Philippines,” the company said in a blog post. “We also continue to update behavioral and technical signals associated with these hubs to help us scale automated detection and block malicious infrastructure and recidivist attempts.”

Earlier this year, Meta joined Match Group, Coinbase and others in forming a coalition to jointly fight financial scams. In its latest update, Meta notes that it has also worked with other firms exploited by scammers. It says that OpenAI recently tipped off the social media company to “a newly stood up scam compound in Cambodia” after the AI company caught the would-be scammers attempting to translate scam content.

This article originally appeared on Engadget at https://www.engadget.com/social-media/meta-says-its-taken-down-2-million-accounts-linked-to-pig-butchering-scams-180036668.html?src=rss

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