Maria Varmazis, an experienced host of the T-Minus daily space show, joins Dave and Joe to discuss the alarming world of scams. They dive into a chilling tale of a gold bar scam that cost a woman over $789,000. The trio explores the ethical concerns of using children's images for AI training via a social media platform called Bluesky. Furthermore, they dissect the ineffectiveness of major banks in combatting Zelle fraud and share an FTC warning on scams promising to clear negative credit report details. It's a wild ride through the murky waters of digital deception!
Regulators are investigating major banks' inadequate handling of Zelle scams, revealing a troubling drop in refunded scam losses from 62% to 38%.
Concerns are raised over the ethical implications of micro jobs requesting children's images for AI training, posing risks to minors' safety and privacy.
Deep dives
Investigating Bank Handling of Zelle Scams
Regulators are examining how major banks manage scams involving the digital payment platform Zelle. A concerning trend shows that the percentage of refunded scam losses has dropped significantly, from 62% in 2019 to only 38% in 2023. This decline has prompted the Consumer Financial Protection Bureau to scrutinize banks for potentially failing to adequately address fraud incidents and user complaints. The investigation aims to enhance consumer protection measures and ensure that banks prioritize customer care over shareholder profits.
The Dangers of Micro Transactions for AI Training
A disturbing trend has surfaced involving micro jobs that request individuals to share images of children for artificial intelligence training. Some platforms offer small payments for tasks such as taking pictures of babies or children, raising significant ethical concerns. These requests not only risk the safety of minors but also reflect a troubling commodification of child imagery. Listeners are cautioned against participating in such schemes and encouraged to consider the broader implications of their involvement.
FTC's Crackdown on Credit Repair Fraud
The Federal Trade Commission has taken action against a fraudulent credit repair company that exaggerated its capabilities to remove negative credit report information. The company, Financial Education Services, has been ordered to pay $12 million for running a pyramid scheme that targeted consumers with low credit scores. Many consumers are misled into believing that they can quickly fix their credit through such services, but the reality is that legitimate credit improvement requires time and responsible financial management. The FTC emphasizes that negative credit report entries cannot be legally erased unless they are due to errors that can be corrected.
An Example of Online Extortion Scams
A humorous yet alarming example of extortion has been highlighted involving a scam email that threatens to release compromising videos if payment is not made. The email cleverly hides spaces in the text, making it appear more legitimate, and demands a cryptocurrency payment to avoid potential embarrassment. This tactic showcases the lengths scammers will go to intimidate victims into compliance. The discussion emphasizes the importance of recognizing such scams and refraining from giving in to threats, as few would fall for the blatant deception used.
Maria Varmazis host of the N2K daily space show, T-Minus, joins Dave and Joe to share her story from listener Chloe, who shared a post she found on a social media platformed called "Bluesky," where a company is asking for photos and videos of your children to help AI smarter. Our hosts share some listener follow up on how a scammer impersonated a government official to deceive a woman into converting her assets into gold bars, resulting in the theft of over $789,000. They also share some follow up from listener Steve to discuss the "No Numbers Project" from episode 300. Joe's story is on regulators investigating whether major banks, including JPMorgan Chase, Bank of America, and Wells Fargo, are adequately addressing Zelle scams by shutting down accounts used by fraudsters. Dave has the story on the FTC warning that scammers are the only ones who promise to remove all negative details from your credit report. Our catch of the day come from listener Benjamin who shares an email they received claiming to know things about him that he would not want getting out.
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