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LIFELOCK unbolted

US company Lifelock which capitalised on people's fears about identity theft have been branded a scam by the Federal Trade Commission and ordered to pay back $12 million back to its customers. The company promised to protect clients from fraudsters by placing alerts with financial companies. The best bit was CEO Todd Davis use of his social security number in advertising campaigns to prove his confidence in the service. It turns out someone used it to take out a $500 loan in his name in 2007. Read the story here on Wired. I suppose it's another version of the investigator who offers to get your cash back from a 419er for a fee.

SMALL'S Big House

This is a bit late, but just in case you haven't seen this report it's worth checking out the house a fraudster built. Builders' merchant Gerard Small from Tyrone, Northern Ireland, defrauded revenue of st£4.5 million in unpaid tax and false claims for family credits. He preferred to splash it all on his ornate house. He even held an open-day so neighbours could come in and gawk. Have a look at the pictures here on the BBC.

SLOW burn Bernie

I've moaned about how slow things are to move against Irish fraudsters when compared to how quick the US authorities moved against Bernie Madoff. His sons blew the whistle in October 2008 and by March 2009 he was serving a life sentence. There's nothing like the immediate threat of jail to uncover any hidden stashes of money. But it seems the US financial watchdogs have not covered themselves in glory. Self-confessed 'Greek geek' Harry Markopolos has written No One Would Listen about his ten year battle to expose Madoff as a fraud. He was pointing the finger long before Madoff was forced to admit he was a conman. Check out this very interesting extract here.

AIB and fraud

Two men have now been charged with one of the UK's biggest property frauds which saw Allied Irish Banks lose st£56 million. Achilleas Kollakis persuaded the bankers he was a big player in the property market. He got loans thanks to having blue-chip tenants for various properties (such as UK government agencies.) The claims were fake or exaggerated. Read the press release from the Serious Fraud Office here and follow the links through a previous post for more information on Kollakis' colourful life.