Tag Archives: Bank fraud

iSpoof, You spoof, everyone spoofs

It sounds sad and perhaps that is merely part of the stage, but both the Guardian and the Dutch NOS report on this and they are not completely reporting the SAME thing. The Guardian (at https://www.theguardian.com/money/2022/nov/24/100-people-arrested-ispoof-uk-biggest-investigation) give us ‘100 people arrested in UK’s biggest fraud investigation’ where we see “More than 100 people have been arrested in the UK’s biggest ever fraud operation, which brought down a website police describe as a “one-stop spoofing shop” used by scammers to steal tens of millions of pounds from Britons via fake bank phone calls”. We also get to see “At one stage almost 20 people every minute of the day were being contacted by scammers hiding behind false identities created using the site and it is estimated that criminals may have stolen close to £50m. The actual amount is likely to be higher as fraud is often underreported.” With for the finale “Those running the scam shop made about £3.2m over a 20-month period, it is estimated” so it seems that these people were able to do their ‘thing’ for 2 and a half years. It took that long to get a handle on things. Lets be clear, I am not having a go at Scotland Yard here. The stage I presented over two years ago is hereby proven, with a full 5G deployment the damage could have been 10-20 times bigger. That is at stake and that needs to be stopped, it sucks to be Scotland Yard soon enough, but this victory they have and they earned it. In the mean time the Dutch report (at https://nos.nl/artikel/2453655-politie-rolt-internationale-spoofingdienst-op-en-arresteert-fraudeurs) ‘Police roll up international spoofing service and arrest fraudsters’, there is clear mention of the English police, yet we also see “In the Netherlands, there are probably thousands of calls per month. The tap led to the arrest of two men from Almere, aged 19 and 22” so it is far beyond the British borders. We also get “The police have so far discovered a hundred users from the Netherlands in the mountain of data and based on this, identify themselves and build up a file. More arrests will certainly follow, according to the police” as such we can say that the situation is fluidic and more reporting will come soon enough. The element that gives us that there is pressure on several sides and the people are at times pressured in ‘acting now’. It makes things hard and with a full 5G it will make it even harder. The law needs adjusting and it is barely catching up with the facts they face. To be honest I wonder if serious prison times will come with the catch. I am expecting some lawyer to come with some cry story that brings tears to the eyes of the judge. It would be nice to reintroduce hard times with prison work where 90% of the earned money goes towards paying for the damages and no parole until all damages are paid for, but people will say that this is merely delusional and it will never happen. 

Time will tell.


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Crime still pays!

If the banks are any indication then there is plenty of indications that only amateurs become burglars, thieves or murderers. If you really want to move forward in strong financial ways, then one needs to become a banker. That is the message we read when we see the Dutch approach to their RABO bank in regards to the LIBOR scandal. The RABO received its 774 million euro fine. Part of the information is here at http://nos.nl/video/568494-rabobankbestuurder-schat-geschokt-door-renteschandaal.html

One of the issues is that they paid off the Dutch version of the CPS with a 70 million euro settlement.

The news mentioned that some got fired, some lost rank, and people lost commission (no explicit mention whether all lost it). This is part of the problem. Some got away and they can try again at some point. I personally found the mention that chairman of the board Piet Moerland’s departure to be a hollow one. Yes, this is just my personal view! He would have retired next year. Consider that the RABO puts a fine of three quarters of a billion in the books this month, which gives us that the next fiscal year the board is less likely to get any commission, which gives us the view that the RABO boss decides to retire and not work for free. Interesting is, that whilst the issues of LIBOR have been visible (for well over a year) that the final moment when the amount is known sends him to make a gesture resulting in his non-working near future. There is no evidence that the top knew what was going on. Yet another story by the NOS shows that even though traders got such lovely extras, no real internal investigation existed on how they got to these high commissions.

There is something to be said about Sipko Schat, who was in charge of the traders in that period and who remains with the RABO bank. That part is not negative. There was no indication of any sorts (or so it seems at present) that he had any idea what was going on. We can doubt that, yet considering the structures of the other involved banks, the viewpoint that Sipco Schat seems to be innocent and unconnected is a rational and acceptable one.

So why the issue on crime that pays?

It seems to me that if we consider the Dutch Banking law of 1998 that at present, there do not seem to be enough handles in place to successfully prosecute these transgressors and this issues goes vastly beyond the Dutch borders, which is the one part that truly bites the people of many nations (not just the Dutch). It is my conclusion that the Dutch prosecutions office was willing to settle for 70 million, for the realistic reason that the chance of getting true legal justice for the transgressors seems to have been unlikely and for those who got to feel the axe, the proceedings for the crown would have been a lot lower. Yet prosecuting them might have been a better option. This is because many are now seeing and feeling the same sting of the years of building frauds for the Amsterdam International tunnel (to name one of several events), where three constructors settled for 1 million each, even though the transgressions showed inaccuracies of well over 30 million. This was in November 2001. There were additional building fraud cases in 2002 and 2003. Isn’t it interesting how builders and banks seem to get to settle for the fraction of the transgressed amount?

Even though much of the actual damages will get returned, not all of it will and it seems to me that profit margins remain to be too good for people not to try a roll at the high yielding criminal slot machine.

I see the issue in several nations that non-violent crimes are not correctly weighted (so, not just in the Netherlands). Too many judges seem to remain oblivious on the consequences of non-violent crimes, often these events get trivialised in courts (not just the Dutch). Not enough power is placed on improved legislation and successful convictions against financial crimes and no one seems to be willing to rock the stable boat in these regards. Until the cutting knife of the law shows unreservedly that traders and bankers could lose their professional licences and qualifications for such transgressions too many remain willing to give the slot machine of ‘hefty returns’ a go, as $1 might give them $xn if they can roll the bars to F-RAU-D, because even if they get caught, there seems to be a decent chance for them to hold onto a fair share of the unfair gained amount.


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