Imagine waking up each morning knowing the identities of thousands of people who are about to be mugged for thousands of dollars each. You know exactly when and where each of those muggings will take place, and you’ve shared this information in advance with the authorities each day for a year with no outward indication that they are doing anything about it. How frustrated would you be?
A counterfeit check image [redacted] that was intended for a person helping this fraud gang print and mail phony checks tied to a raft of email-based scams. One fraud-fighting group is intercepting hundreds to thousands of these per day.
Such is the curse of the fraud fighter known online by the handles “Brianna Ware” and “B. Ware” for short, a longtime member of a global group of volunteers who’ve infiltrated a cybercrime gang that disseminates counterfeit checks tied to a dizzying number of online scams.
For the past year, B. Ware has maintained contact with an insider from the criminal group that’s been sending daily lists of would-be victims who are to receive counterfeit checks printed using the real bank account information of legitimate companies.
“Some days we’re seeing thousands of counterfeit checks going out,” B. Ware said.
The scams used in connection with the fraudulent checks vary widely, from fake employment and “mystery shopper” schemes to those involving people who have been told they can get paid to cover their cars in advertisements (a.k.a. the “car wrap” scam).
A form letter mailed out with a counterfeit check urges the recipient to text a phone number after the check has been deposited.
Most of the counterfeit checks being disseminated by this fraud group are in amounts ranging from $2,500 to $5,000. The crimes that the checks enable are known variously as “advanced fee” scams, in that they involve tricking people into making payments in anticipation of receiving something of greater value in return.
But in each scheme the goal is the same: Convince the recipient to deposit the check and then wire a portion of the amount somewhere else. A few days after the check is deposited, it gets invariably canceled by the organization whose bank account information was on the check. And then person who deposited the phony check is on the hook for the entire amount.
“Like the car wrap scam, where they send you a check for $5,000, and you agree to keep $1,000 for your first payment and send the rest back to them in exchange for the car wrap materials,” B. Ware said. “Usually the check includes a letter that says they want you to text a specific phone number to let them know you received the check. When you do that, they’ll start sending you instructions on how and where to send the money.”
A typical confirmation letter that accompanies a counterfeit check for a car wrap scam.
Traditionally, these groups have asked recipients to transit money via wire transfer. But these days, B. Ware said, the same crooks are now asking people to forward the money via mobile applications like CashApp and Venmo.
B. Ware and other volunteer fraud fighters believe the fake checks gang is using people looped into phony employment schemes and wooed through online romance scams to print the counterfeit checks, and that other recruits are responsible for mailing them out each day.
“More often than not, the scammers creating the shipping labels will provide those to an unwitting accomplice, or the accomplice is told to log in to an account and print the labels,” B. Ware explained.
Often the counterfeit checks and labels forwarded by B. Ware’s informant come with notes attached indicating the type of scam with which they are associated.
“Sometimes they’re mystery shopper scams, and other times it’s overpayment for an item sold on Craigslist,” B. Ware said. “We don’t know how the scammers are getting the account and routing numbers for these checks, but they are drawn on real companies and always scan fine through a bank’s systems initially. The recipients can deposit them at any bank, but we try to get the checks to the banks when we can so they have a heads up.”
SHRINKING FROM THE FIREHOSE?
Roughly a year ago, B. Ware’s group started sharing its intelligence with fraud investigators at FedEx and the U.S. Postal Service — the primary delivery mechanisms for these counterfeit checks.
Both the USPS and FedEx have an interest in investigating because the fraudsters in this case are using stolen shipping labels paid for by companies who have no idea their FedEx or USPS accounts are being used for such purposes.
“In most cases, the name of the sender will be completely unrelated to what’s being sent,” B. Ware said. “For example, you’ll see a label for a letter to go out with a counterfeit check for a car wrap scam, and the sender on the shipping label will be something like XYZ Biological Resources.”
But B. Ware says a year later, there is little sign that anyone is interested in acting on the shared intelligence.
“It’s so much information that they really don’t want it anymore and they’re not doing anything about it,” B. Ware said of FedEx and the USPS. “It’s almost like they’re turning a blind eye. There are so many of these checks going out each day that instead of trying to drink from the firehouse, they’re just turning their heads.”
FedEx did not respond to requests for comment. The U.S. Postal Inspection Service responded with a statement saying it “does not comment publicly on its investigative procedures and operational protocols.” Continue reading
