Lec 7: Fraud

what is fraud?

commonly defined as criminal acquisition of money or property from victims through the use of deception or cheating

fraudsters can readily acquire __ online

personally identifiable information

what is identity theft?

the act of stealing another's personal, private or financial information

what is identity fraud?

involves the use of stolen information to obtain money, credit goods or services to engage in fraud

what is the 'target' in relation to online fraud?

who or what the fraud was directed towards

what is the 'expected benefit' in relation to online fraud?

what the victim thought they would get

what is the 'type of fraud/relationship/transaction' in relation to online fraud?

the lie told to the target

what is the 'seriousness' in relation to online fraud?

the amount of loss

the word phishing is a reference to...

the idea that a person is trying to lure an individual to their site

what is vishing?

voice + phishing (phone call)

what is smishing?

SMS + phishing (sms text)

what is pharming?

malicious code that redirects clicks to a fradulent website without user consent

what is spear phishing?

targeting specific individuals via phishing methods

what is whaling?

phishing directed towards C suite or senior level employees

what is carding?

sale and exchange of stolen credit card information

what are the 3 major fraudulent scams?

cryptocurrency

romance scams

tech support scans

what are advance fee email scams?

spam emails that request a small amount of money up front for a larger payout later

what are examples of advance fee email scams?

nigerian email scams

419 scams

what is a pig butchering scam?

combination of relationship and trust fraud (romance scam) with consumer investment fraud (crypto scam)

what are the 3 stages are in pig butchering?

pig hunting

trust building & rapport

pig harvesting

what is pig hunting?

identification of victim, gathering background info

what is trust building & rapport?

build emotional trust and dependence

what is pig harvesting?

increasing financial "opportunities"

scam effectiveness is not dependent on geographical or cultural factors (t/f)

false

what is Prospect Theory?

one of the 'why' theories that tells us why scamming works

what does Prospect Theory use to explain scamming?

behavioral economics and decision making in risk

what is the definition of loss framing?

present inaction as losing something you already have

what is the definition of endowment?

make victim feel they already own the prize/benefit

what is the definition of relational loss?

frame inaction as losing a valued connection

what is the definition of fear of damage?

exeggerate risk of losing files, data or security

what is the definition of sunk cost pressure?

stopping means losing what you've already gained

what is a scam example for loss framing?

"verify now or your *account will be suspended*"

what is a scam example for endowment?

"you've *already won*, but you will lose your prize if you dont claim it today"

what is a scam example for relational loss?

"if you dont send the money, *we'll never meet*"

what is a scam example for fear of damage?

"your *computer will be corrupted* unless you call now"

what is a scam example for sunk cost pressure?

"you'll *lose your deposit* if you don't finish the process"

what are cialdinis principles of persuasion?

reciprocity

scarcity

authority

consistency

liking

social proof

unity

waht does reciprocity mean?

people feel compelled to reciprocate when they receive something

is authority or reciprocity used to build rapport?

reciprocity

scamming pretexts such as "free service", small gifts or personal disclosures are correlated to which principle of persuasion?

reciprocity

what is an example of reciprocity in interrogations?

the snacks because it gives the illusion of reciprocation

what is scarcity?

people value things more when they are perceived to be limited

what does scarcity look like in marketing?

limited time offers or other forms of that

scarcity can best be paired with ___ to result in a successful scam

authority

what is consistency (commitment)?

an action to get an individual to engage in a small task, and later follow up with a larger task related to the initial commitment

what is authority?

people are more than likely to comply with those who appear to be experts or authoritative

as discussed in class, the McDonalds scam is related to which attribute of persuasion?

authority, the man dressed as a police officer

what is liking?

method to make someone "like" the scammer through methods of compliments, similarities and mirroring behavior

liking is a quick way of scamming (t/f)

false, this takes a lot of time to perfect

what is social proof?

when people look to others to determine their actions, especially in uncertain circumstances

how is social proof used in social engineering?

showing that "other people have done this" can lead to compliance

social proof has recently been used in what type of financial scam(s)?

crypto investments

what is unity?

the ability to connect based on identity or common ground in order to leverage complaince

what is an example of unity?

"im a student here too, and it worked for me"

what is obligation?

exploitation of social norms and behaviors where targets feel socially obliged to comply

Ted Bundy used what type of persuasion to lure victims?

obligation. he would fake a physical injury and ask others for help to lower their guard

what is concession?

starting with a large request, and making a smaller one that is more reasonable

where is concession most common?

sales, such as house offers, donations and restorations