Fighting fraud - eBay goes to Romania
Curious story from the
LA Times:
EBay goes far to fight fraud -- all the way to Romania
The country is the top source of organized scams on the auction site. The company has sent over equipment and a team to help the authorities there.
RAMNICU VALCEA, ROMANIA -- This small industrial center in the foothills of the Carpathian Mountains is not Albena Spasova's favorite destination. Driving the twisting highway makes her ill. Once she arrives, danger lurks.
U.S. Secret Service agents escort her, for her safety. Over the last two years, they have kept watch on dozens of trips, some lasting weeks, others months, as she has spent long days foraging through case files with local police and long nights holed up in one of the town's few hotels, with her windows locked.
"You don't know who to trust there. You can't use the hotel phone line. When you step outside, you can spot the local hackers in their cars, circling around," said Spasova, 33. "The Secret Service agents always book my accommodation and make sure I'm in a room next to them."
Ramnicu Valcea is an improbable capital of anything, but this obscure town is a global center of Internet and credit card fraud. And Spasova is an accomplished online fraud buster, helping to take down cyber-crime gangs across Romania. She isn't an FBI agent, though, nor a Romanian police officer.
Spasova works for EBay.
No one, it turns out, does Internet auction fraud like the Romanians. Bulgarians specialize in intellectual property theft; Ukraine is a leader in online credit card crime; the Russians have a profitable niche in Internet dating fraud.
But when it comes to online auctions, particularly for big-ticket items such as cars that can yield $5,000 a scam, Romanians own the game. Romanian police estimate that cyber-crime is now a multimillion-dollar national industry, as important to organized criminals here as drug smuggling or human trafficking.
The Internet Crime Complaint Center, a partnership between the FBI and the National White Collar Crime Center, ranks Romania fifth in its table of naughty nations. But most experts agree that doesn't give Romanian criminals their due. Much of the cash being made on auction fraud reported as originating in the U.S., Canada, Britain, Spain or Italy is actually being picked up in those countries by Romanian money mules. An EBay fraud ring busted last year in Chicago, for example, has been traced to Pitesti, Romania.
Interestingly enough, Romania is also home to some stellar anti-virus and computer security products.
BitDefender is one example.
I am on several internet forums for various topics and there is always the occasional post about someone trying to sell an expensive item in eBay and getting a fishy offer for it -- a cashiers check with a courier picking up the item. The few times these transactions have completed, the bank notifies the seller a week or so later that the cashiers check was a forgery and the seller is S.O.L. for the money and the item.
Posted by DaveH at December 25, 2007 8:44 PM