Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

FTC Charges Payment Processor in Fraud Scam

Third-party payment services aided Internet scammers in attempting $200M in online fraud, FTC says

The Federal Trade Commission (FTC) and seven state attorneys general have charged a payment processor with debiting consumers’ bank accounts on behalf of numerous fraudulent telemarketers and Internet-based merchants.

The FTC and the attorneys general of Illinois, Iowa, Nevada, North Carolina, North Dakota, Ohio, and Vermont have charged the defendants with offering payment processing services to a variety of merchants, many of which were engaged in deceptive telemarketing or Internet-based schemes.

These schemes were designed to extract money from consumer bank accounts by inducing consumers -- through misrepresentations and omissions in connection with the marketing of products or services -- to provide the merchant with the consumer’s personal bank account information, the FTC says. The merchants then transmitted the bank account information to the defendants, who processed debits to the consumers’ bank accounts.

Between June 23, 2004 and March 31, 2006, the defendants processed more than $200 million in debits and attempted debits to consumers’ bank accounts, the complaint alleges. More than $69 million of the attempted debits were returned or rejected by consumers or their banks for various reasons, indicating the lack of consumer authorization. In many instances, after the defendants debited accounts, the merchants failed to deliver the promised products or services, or sent consumers relatively worthless items.

If a court finds the payment processor, known as YMA, guilty, then its members will be required to give up their ill-gotten gains and pay money back to the affected consumers.

— Tim Wilson, Site Editor, Dark Reading

Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Edge-DRsplash-10-edge-articles
7 Old IT Things Every New InfoSec Pro Should Know
Joan Goodchild, Staff Editor,  4/20/2021
News
Cloud-Native Businesses Struggle With Security
Robert Lemos, Contributing Writer,  5/6/2021
Commentary
Defending Against Web Scraping Attacks
Rob Simon, Principal Security Consultant at TrustedSec,  5/7/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-32089
PUBLISHED: 2021-05-11
** UNSUPPORTED WHEN ASSIGNED ** An issue was discovered on Zebra (formerly Motorola Solutions) Fixed RFID Reader FX9500 devices. An unauthenticated attacker can upload arbitrary files to the filesystem that can then be accessed through the web interface. This can lead to information disclosure and c...
CVE-2020-24586
PUBLISHED: 2021-05-11
The 802.11 standard that underpins Wi-Fi Protected Access (WPA, WPA2, and WPA3) and Wired Equivalent Privacy (WEP) doesn't require that received fragments be cleared from memory after (re)connecting to a network. Under the right circumstances, when another device sends fragmented frames encrypted us...
CVE-2020-24587
PUBLISHED: 2021-05-11
The 802.11 standard that underpins Wi-Fi Protected Access (WPA, WPA2, and WPA3) and Wired Equivalent Privacy (WEP) doesn't require that all fragments of a frame are encrypted under the same key. An adversary can abuse this to decrypt selected fragments when another device sends fragmented frames and...
CVE-2020-24588
PUBLISHED: 2021-05-11
The 802.11 standard that underpins Wi-Fi Protected Access (WPA, WPA2, and WPA3) and Wired Equivalent Privacy (WEP) doesn't require that the A-MSDU flag in the plaintext QoS header field is authenticated. Against devices that support receiving non-SSP A-MSDU frames (which is mandatory as part of 802....
CVE-2020-26139
PUBLISHED: 2021-05-11
An issue was discovered in the kernel in NetBSD 7.1. An Access Point (AP) forwards EAPOL frames to other clients even though the sender has not yet successfully authenticated to the AP. This might be abused in projected Wi-Fi networks to launch denial-of-service attacks against connected clients and...