Approximately 35 years ago, I ran into my first serious scam or scheme when I was a partner of a Washington, D.C. law firm, after having worked in the U.S. Senate for three and a half years. At that time, the Saudis were swimming in oil money; and I was told they needed safe places to invest in the U.S. We arranged for a billion dollar investment “on their behalf” with an American quasi-government agency, only to find that the Saudi “agent” was nothing more than a moneyman trying to pitch the deal simultaneously to the Saudis and Americans. Fortunately, we did not lose any money.
Fast forward to last year, and I was approached by an “Asian company” that purportedly wanted an American law firm to represent it in collecting monies due from its “delinquent” U.S. customers. A fee agreement was prepared, and an upfront retainer was agreed upon; and next I was told that a customer had agreed to pay what was due rather than contest it, and would be sending a cashier’s check to my firm. Our retainer was to be deducted, with the balance being remitted by wire transfer to Asia.
Having represented approximately 200 banks over the years, I was wary of the transaction, and even more so when the check arrived and its appearance was not that of most cashier’s checks that I had seen. To its credit, the State Bar of California had an article in its California Bar Journal that I read, describing such transactions in detail as being bogus.[3] The scam went like this. The lawyer would deposit the check in his or her bank account, without knowing that the bank’s routing number was incorrect at the bottom of the check. Thus, the check would go into the bank’s check clearing system, and effectively get “lost” for a while because of the incorrect routing number; and the Asian company would be demanding payment.
Unbeknownst to most Americans, including lawyers, the fine print in bank checking agreements allows a bank to charge back a bogus check to its customer’s account almost without any time limitation. Thus, an unsuspecting lawyer would believe the Asian company’s check had cleared, and would wire the funds to its “client,” only to find that its friendly American banker was demanding that good funds be deposited to replace the wired funds.
I have been told that these and similar scams are run out of Canada and elsewhere, by Nigerians and others, who have profited to the tune of approximately $150 million. Despite the fervent hope of “green shoots” and an upturn in the U.S. and global economies, we may witness even worse economic times ahead, during the balance of this decade.[4] Thus, scams are apt to be more prevalent than ever.
There are romance scams, which seek the wiring of monies too; and the list goes on and on, seemingly only limited by the scammers’ imagination and the gullibility of Americans and others.[5] Yes, there are government agencies that are charged with preventing such wrongdoing and apprehending the wrongdoers, but I am not aware of any significant successes to date. In fact, the number of lawyers and law firms that have been scammed—and have lost in the hundreds of thousands of dollars with each transaction—continues to grow.
Based on my experiences, I recommend to anyone who needs more information that they contact the Internet Fraud Center of ScamWarners, which seeks “to protect, inform and assist victims and potential victims of internet fraud.”[6] They are the best that I have seen, and they are free; and they are better than most if not all the government agencies that try to protect us. Put simply, beware of anything that is too good to be true—because it is, certainly in the case of the scams. I never cease to be amazed by the number of lawyers who keep getting scammed significantly, which may put a smile on the faces of many non-lawyers.
© 2010, Timothy D. Naegele
[1] Timothy D. Naegele was counsel to the U.S. Senate Banking Committee, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass), the first black senator since Reconstruction after the U.S. Civil War. He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates (www.naegele.com). He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University. He is a member of the District of Columbia and California bars. He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal. Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years. See, e.g., www.naegele.com/whats_new.html#articles
[2] This article was prompted by a fine Wall Street Journal article (see http://online.wsj.com/article/SB126490149294538081.html), which does not address the specific issues discussed in this article but nonetheless “inspired” me to finally write about Internet scams that are sweeping the U.S. and other countries.
[3] See http://calbar.ca.gov/state/calbar/calbar_cbj.jsp?sCategoryPath=/Home/Attorney%20Resources/California%20Bar%20Journal/July2009&sCatHtmlPath=cbj/2009-07_TH_01_scams.html&sCatHtmlTitle=Top%20Headlines; see also http://www.calbar.ca.gov/state/calbar/calbar_cbj.jsp?sCategoryPath=/Home/Attorney%20Resources/California%20Bar%20Journal/July2008&sCatHtmlPath=cbj/2008-07_TH_01_Internet-Scam.html&sCatHtmlTitle=Top%20Headlines
Both of these are fine articles by Diane Curtis, who must be praised for her truly excellent trail-blazing work on this important issue for lawyers nationwide—and worldwide, because lawyers in other countries are being scammed too. While hopefully her articles have reached and been read by lawyers in California, the fact remains that lawyers in other States are being scammed on a regular basis, and they have no knowledge or forewarning about such scams.
[4] See, e.g., http://www.americanbanker.com/issues/173_212/-365185-1.html and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html
[5] See, e.g. http://www.scamwarners.com/forum/viewtopic.php?t=5
Great site with lots of relevent information
Glad i found it
Thanks
Nigel
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On behalf of the entire team at scamwarners.com I would like to thank Timothy for his glowing endorsements.
At scamwarners we like to think that we can make a difference when it comes to Internet related scams, no matter how big or small they are.
~Michelle Banks (Site Moderator & Scam warner)
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Thank you, Timothy. Increasing awareness as you are is the best way to combat email fraud.
I wanted to note also that we have recently added an informational topic about this specific type of scam to our forum. http://www.scamwarners.com/forum/viewtopic.php?f=3&t=6196
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Thank You, Jillian, Michelle And ScamWarners
I urge everyone to read ScamWarners’ latest posting entitled, “Debt Collection Scams target lawyers, legal firms and debt collection agencies,” the link to which appears immediately above.
Also, Jillian suggested another link at ScamWarners’ Web site entitled, “An introduction to scams,” and I urge you to read that as well.
See http://www.scamwarners.com/forum/viewforum.php?f=3
Thanks!
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Thank You, Diane Curtis!
Footnote number 3 of this article has been revised, and now reads as follows:
Well done, Diane. Your two articles were published in the July 2008 and July 2009 issues of the California Bar Journal. Hopefully we can expect another one shortly! 🙂
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Finally . . . Action Is Taken Against The Wrongdoers
A grand jury indictment, issued in the U.S. Middle District Court of Pennsylvania, has charged six people with a $32 million international scam that hit 80 lawyers in the U.S. and Canada.
As reported by The Patriot-News in Pennsylvania:
See http://www.pennlive.com/midstate/index.ssf/2010/11/area_lawyers_fall_victim_to_in.html
Congratulations to those who have made this possible! 🙂
See also http://www.calbarjournal.com/March2011/TopHeadlines/TH4.aspx (“Beware of online scams”) and http://ethics.calbar.ca.gov/LinkClick.aspx?fileticket=z8N90vbh088%3d&tabid=834
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Steve Jobs’ Legacy
When I first started using the Web, and put up a Web site, the Internet was being referred to as a “dirt road,” and not an information superhighway. Since then, it has grown geometrically and become much more sophisticated; and the current estimates are that out of the 6.9 billion people globally, approximately 2 billion use the Internet today.
See http://www.internetworldstats.com/stats.htm
Wow . . . all of us may say or think. How far we have come in a relatively short period of time. We bank with it; we meet our spouses (or significant others) using it; we buy most things via it; information is exchanged, and teaching is conducted like never before; revolutions are begun and continued because people connect through the Web; and elections are won or lost based on the Internet. Yet, few users realize how vulnerable it is to an EMP or other attack, which might bring it crashing down.
See https://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/ and http://www.wired.com/dangerroom/2011/10/virus-hits-drone-fleet/ (“Exclusive: Computer Virus Hits U.S. Drone Fleet”) and http://www.dailymail.co.uk/news/article-2046660/U-S-drones-killed-American-Al-Qaeda-boss-infected-virus-amid-fears-terrorists-logging-move.html (“U.S. drones that killed American Al Qaeda boss ‘infected by virus’ amid fears terrorists are logging their every move”); see also https://naegeleblog.wordpress.com/2011/07/29/are-colleges-dinosaurs/
What Steve Jobs accomplished, as great as it has been, would not have been possible without the Internet. I am using my fifth-generation Apple laptop; and over the years, I have purchased lots of other Apple products, beginning with a PowerBook 160 almost 20 years ago. Like many other Apple users, I swear by them. Some of us have even communicated in the past with Steve, who has been receptive to many new ideas.
While the future is exceedingly bright, it is also fraught with enormous problems and challenges. China, Russia and other countries try to hack into the Pentagon’s computers on a regular basis; and they must be treated in substantially the same manner as if an enemy launched missiles against our cities. Fraudsters bilk Americans and others out of billions of dollars; and this will only get far worse with the passage of time. Law enforcement seems paralyzed when trying to address such problems, because they cross jurisdictional lines; and the necessary resources are not there, owing principally to declining budgets.
See, e.g., https://naegeleblog.wordpress.com/2010/01/31/lawyers-and-internet-scams/
Steve was a hero to so many people, yet his final verdict may become available shortly, when an authorized biography is released; and in the future when true “insiders,” such as John Lasseter of Pixar/Disney, share their views of Steve and having worked with him and contributed mightily to many of his enormous successes.
See http://blogs.wsj.com/speakeasy/2011/10/05/pixars-john-lasseter-on-the-death-of-steve-jobs/?KEYWORDS=Lasseter
With tributes pouring in from around the world, an article in the UK’s Economist may have said it best about Steve:
See http://www.economist.com/node/21531529
Indeed, as much as Bill Gates and Microsoft undoubtedly have been very successful, this may be Steve’s lasting legacy, and not that of his competitors. He made computing fun, for lots of us who are not geeks and never will be; and we will always thank him and honor him for that gift.
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Why Help Google Deal With Fraud Or Anything Else?
Fraud is massive and prevalent all over the Web today; and millions of people globally are being affected by it, and they will lose billions of dollars because of it.
See, e.g., https://naegeleblog.wordpress.com/2010/01/31/lawyers-and-internet-scams/ (“Lawyers And Internet Scams”)
I have dealt with it for many years, beginning well before the Internet became a worldwide “information highway,” and I know what to spot, so others are warned. Indeed, before its latest “revolting” and totally-unnecessary changes, Gmail had a way for its loyal users to flag phishing messages with a red banner, which would warn others.
Users cannot do this anymore. Thus, instead of checking my spam folder methodically every day, and flagging such messages, I don’t bother. If Google does not take fraud seriously, why should I waste my time?
It is clear that Google does not care, so why should anyone care about Google? Microsoft’s loyal customers abandoned it years ago. This seems to be the future of Google.
See, e.g., https://naegeleblog.wordpress.com/2012/04/25/is-google-becoming-microsoft-or-worse/ (“Is Google Becoming Microsoft Or Worse?”)
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Allianz Global Is A Scam
I bought tickets from Ticketmaster for the Tim McGraw-Faith Hill show at the Venetian in Las Vegas, and business prevented me from going there. I called Ticketmaster, and they told me to call Allianz Global that insures ticket purchases and from which I purchased ticket insurance.
I was told that unless a personal “calamity” occurred, they would not pay off. I went to Yelp’s Web site and Google, and find that others have been ripped off by Allianz too.
See, http://www.yelp.com/biz/allianz-global-assistance-henrico#hrid:h87B2zyjdP6vEotxtjVymA/src:self and https://www.google.com/webhp?source=search_app#hl=en&tbo=d&output=search&sclient=psy-ab&q=allianz+global+assistance+reviews&oq=Allianz+Global&gs_l=hp.1.3.0l10.824.43954.1.46292.37.37.0.0.0.6.490.5373.11j21j2j2j1.37.0.les%3Bpchsnhac..0.0…1.1j2.LjcsR2R-w0o&psj=1&fp=1&bpcl=39967673&biw=1070&bih=560&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&cad=b; see also http://www.travelinsurancereview.net/allianz-travel-insurance/ and http://www.consumeraffairs.com/insurance/allianz.html
Allianz’s insurance of ticket purchases is a total rip-off; and their insurance should never be purchased under any circumstances unless you want to throw away your money!
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Amazing issues here. I am very glad to see your article.
Thank you so much and I am having a look ahead to contact you.
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The Latest Scam: USAA Profile Unlock
While it is not a scam directed specifically at lawyers, all of us must be on guard with respect to e-mail messages like this one entitled, “Profile Unlock,” which arrived in my Google Gmail spam folder. Ostensibly, it came from the American insurance company USAA, and it read:
The sender was identified as “USAA – unlock@usaa.com,” while the sender’s e-mail address was shown to be: profile.usaa.unlock@mail.ru
This should have been a dead giveaway: it came from Russia, or “ru,” and there was a grammatical error in the message (i.e., “6 a.m.to”). The “Support Page” looks legitimate, but it isn’t:
USSA “Support Page”
It was and is totally bogus; no one should ever respond to messages like this one; and you should alert friends and acquaintances alike regarding scams such as this.
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The Latest Scam, Ostensibly From Brazil
Yesterday, I received an email message that supposedly came from an old hiking friend. It had his name spelled out in all caps, and it was from mels832@colinadigital.com.br
My friend and his wife live In California; and there was a warning that it might be “dangerous.” Google’s Gmail directed me to an information page.
See https://support.google.com/mail/answer/7039474
Beware of every message that you see in your Spam folder, or from an unknown sender. For years now, I have not opened them. But that may not be enough.
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The Latest Fraudsters On Twitter
As indicated in the article above—and in the extensive comments beneath it, since it was published more than twelve years ago—fraud takes many forms, especially on the Internet.
The latest example involves “rebeccawheat3” on Twitter, which apparently reflects the profiles of two different women—whether either exists is problematical—and targets older men in the United States, the UK and elsewhere.
Compare https://images.app.goo.gl/zeky7bQhcB2EJ3FH8 with https://images.app.goo.gl/BcUEhQi3JHrNmAYD8
Tragically, many seniors are not conversant—much less sophisticated—with the Internet, or with the fraudulent schemes that target them. Thus, they can become easy prey for fraudsters located anywhere in the world.
Such fraudsters can fabricate photos, life experiences and other details, but seldom do they disclose how to actually reach them. Years ago, a fraudster operating out of Canada tried to scam me; and I worked with a private investigator and had the fraudster arrested and imprisoned when he entered the United States.
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Scamming Is Everywhere, But This May Be The Most Bizarre
See https://www.dailymail.co.uk/news/article-11298729/Georgia-gang-inmate-31-steals-11M-max-security-jail-claiming-billionaire.html (“Inmate ‘steals $11M while in jail after claiming to be billionaire'”)
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