The Dark Side of Cryptocurrency Hardware Wallets

In September 2021, the IRS published a request for proposal titled, “Development of Exploitation Techniques Against Cryptowallets.” According to supporting documentation, it appears that the digital forensics unit of their Criminal Investigations branch has repeatedly run into scenarios involving the seizure of crypto hardware wallets (also known as cold storage devices) that could not be accessed due to their security features. The growing interest by law enforcement and tax authorities in this issue is long overdue.

Are You Ready to Seize Some Cryptocurrency?

The U.S. Department of Justice (DOJ) announced in early February 2022 that they had arrested two individuals, Ilya Lichtenstein and his wife Heather Morgan. When the couple was arrested in connection with the theft of cryptocurrency from the Bitfinex cryptocurrency exchange in 2016 and subsequent laundering of the proceeds, it led to one of the most valuable seizures of illicit proceeds in law enforcement history.

Could You Spot a Deep Fake Video?

In the summer of 2017, researchers from the University of Washington presented technology they developed that combined realistic lip-synched video of former U.S. President Barack Obama with preexisting video and audio clips. In doing so, they birthed deep fakes, a phenomenon which has gone on to cause consternation among national security figures and, generally, creep a lot of people out.

Fraud Talk: Filling Your Anti-Fraud Toolbox

Washington State’s Largest Ponzi Scheme was the catalyst for Tod McDonald, CPA to start his company and push for innovation in financial e-discovery. Years later, he and Garth Leonard, CFE, from Valid8 Financial, join ACFE Community Manager Rihonna Scoggins in the most recent episode of Fraud Talk to explore the current resources at hand to combat fraud and how fraud examiners can assess what tools are the right fit for them in this evolving landscape.

Crocodile of Wall Street Rendered Toothless as Authorities Bite Back

The sums involved in the latest high-profile cryptocurrency fraud are mind-blowing. A self-proclaimed amateur rapper nicknamed the “Crocodile of Wall Street,” Heather Morgan, along with her husband Ilya Lichtenstein, were arrested and charged with conspiracy to allegedly launder $4.5 billion in stolen Bitcoin last month.

The Difference Between Computer Forensics and eDiscovery

Computer Forensics: Following the Digital Bread Crumbs

Risky Readers: Kindles, Nooks Capable of Storing More Than Just Bestsellers

Follow the Digital Tracks to Uncover Fraud

eDiscovery: Digital Data Gives Birth to New Industry

Cybersecurity Expert Warns GDPR Could Create New Extortion Opportunities

Dr. Jessica Barker addressed hundreds of anti-fraud professionals today at the 2018 ACFE Fraud Conference Europe and told them that a new weak point in organizations’ cybersecurity might stem from an unlikely source — General Data Protection Regulation (GDPR) compliance.

Press Release-SOP Test

Press release description for lists and top of detail page

An Introduction to Non-Fungible Tokens (NFTs) and Fraud

A Conversation With the "Original Internet Godfather"

The Benefits of Artificial Intelligence

Is ChatGPT the newest gateway to fraud?

Just weeks after OpenAI, a U.S. artificial intelligence (AI) research laboratory, launched ChatGPT in November last year, the U.S.-Israeli cybersecurity firm Check Point noticed a spike in dark web conversations. The AI chatbot has astounded, but also unnerved, the public with its ability to do many human tasks from coding to passing an MBA-level exam to writing flawless text. However, in a popular hacking forum, a post entitled “ChatGPT – Benefits of Malware” described how one fraudster used the AI tool to recreate malware strains, such as so-called stealers that infiltrate computer systems, search for specific types of files and then remove those files without the owners’ knowledge. While the creation of malware is nothing new, the discussion on the dark web was disturbing because, as Check Point notes, its apparent purpose was to show less tech-savvy fraudsters that they too could use ChatGPT to code for malicious purposes. (See “Cybercriminals starting to use ChatGPT,” Check Point, Jan. 6, 2023.)

Four strategies for increasing organizational agility

Rapid changes in technology have meant that work environments now demand faster decisions at all levels, creating the type of conditions where fraudsters thrive. Here we look at how organizations and fraud examiners can best face these challenges in an increasingly agile age.

ACFE expresses gratitude to departing president

Incoming ACFE President John Gill, J.D., CFE expresses gratitude for outgoing ACFE President and CEO Bruce Dorris, J.D., CFE, CPA.

Fake Geek Squad scams and what to do if you fall victim to credit card fraud

Kerry Binder thought of herself as a real computer jock. When she had a problem with her computer that she couldn’t solve, she contacted the Geek Squad, retailer Best Buy’s tech support service, for help. One day she received a text message saying she’d been charged hundreds of dollars to renew her Geek Squad membership. She knew nothing about this and thought that this was an error. The text message said Binder could dispute the charge or cancel her membership by calling a phone number within 24 hours. When she made the call, a scammer told her that he had to gain remote access to her computer to help her. When he’d finished rummaging around in her computer, he told her that he’d corrected the error and apologized for the mistake.

Invaluable lessons from fraud fighters across the globe

ACFE President John D. Gill, J.D., CFE, shares lessons learned from ACFE fraud fighters across the globe.

Measure and monitor your fraud risk management program success

‘Tis the season to set company goals. As we wrap up 2023 and look to the new year, ponder this: What are some of the key performance indicators (KPIs) companies use to measure the effectiveness of their fraud risk management program? Here, we explore some leading examples of anti-fraud KPIs that drive business value.

The flawless fraud of real-time deepfakes

The use of real-time deepfakes, where fraudsters use video or audio generated with artificial intelligence to replicate someone’s voice, image and movements as the scheme is happening, is the latest way that fraudsters are perpetrating a host of frauds. In this article, the authors describe real-time deepfake schemes and what can be done to combat them.

Ukraine alleges $40 million defense procurement fraud and more

Ukraine accuses Ministry of Defense and arms supplier of $40 million fraud; hundreds of sub-postmasters in the U.K. falsely convicted by the U.K. Post Office; and ESPN staff members illicitly secure Emmys for "College GameDay" on-air personnel.

Avoid the "blue" in Bluetooth

Bluetooth can connect your phone to your car so that you can use the car’s stereo system. But vulnerabilities expose users to crooks wanting to steal personally identifiable information (PII). The column also covers phone hacking, another popular method of stealing PII.

Future of fraud in a blockchain world

You can’t escape blockchain. The topic’s in the media daily. It’s at the forefront of digital disruption and innovation discussions among leading businesses. We’ve seen blockchain technology applications in banking, currencies, supply chain, contracts and dozens of other areas.

Test your organization’s readiness for deepfake attacks with tabletop and red-team exercises

Artificial intelligence is changing how fraud is perpetrated and many organizations aren’t prepared. In this column, the authors describe how conducting tabletop and red-team exercises can prepare employees to respond nimbly to AI-generated deepfake attacks. 

Agentic AI is reshaping the future of fraud risk

This interview with Amazon Nova senior software development engineer Rohith Nama highlights how agentic AI is transforming fraud prevention and detection.  

Internet of Things

It’s all connected. From comic-book enthusiasts to conspiracy theorists to new-age acolytes — many believe that those seemingly random dots do connect. And now the “Internet of Things” (IoT) might start us down that road.

Escape the analytics software 'black box'

New developments in forensic data analytics are breaking down traditional barriers to access, transparency and usability. You don’t need an advanced degree to use “data blending” software.

Attack of DoS/DDoS

Fraudsters are doing more than shutting down sites by flooding them with millions of automated inquiries. They’re infecting websites with malware that unsuspecting users are downloading on their devices. Here’s how to advise your organizations and clients to protect domain name servers that will prevent loss of revenue, productivity and reputation.

Generative artificial intelligence is now the fraud perpetrator

Fraud examiners have historically relied on reviewing documents to identify fabricated invoices, altered records and falsified financial statements. But now fraudsters are using generative artificial intelligence to autonomously produce near-perfect fraudulent artifacts. GAI is now the fraud perpetrator. Here are ways to detect and deter it.

Demystifying AI in anti-fraud and compliance efforts

Artificial intelligence and machine learning seem to be included in most technology discussions. But what do these potential technologies really mean for fraud examiners and compliance professionals?

Forensically preserving electronic evidence during a lockdown

During the COVID-19 lockdowns, how did fraud examiners manage evidence collection? Learn from forensic technology industry experts about collecting custodian information and remote data preservation.