How to spot UAS/C-UAS "expert" frauds: 4 red flags

The secret to true protection for fraud victims goes beyond numbers and dashboards. The latest stats on scam reimbursement look promising - https://lnkd.in/egzeptNx: 88% of eligible losses returned, quick claim resolutions, and a low rejection rate. But look a little closer, and the cracks begin to show. Response times are starting to slip, claim volumes have plateaued, and the current system’s effectiveness is tied tightly to how fraud is defined and detected. Why does this matter? Because fraudsters don’t stand still. If scams shift just slightly outside the current coverage, victims could be left unprotected. Reimbursement is crucial, but relying on it as the primary line of defense is risky. Instead, the industry must invest in smarter, adaptive prevention. That means:  • Real-time detection tools that flag scams before money leaves accounts  • Rulesets that evolve as fast as the tactics of scammers  • A layered defense approach, so reimbursement is a last resort, not the main safety promise Progress is happening, but it’s built on fragile ground. Now’s the time to make prevention, not just reimbursement, the core of our fraud response. What’s your take on building a more resilient defense against scams? Drop your thoughts below.

#Fraud lessons from 47 years of audit and studies of past frauds – 351-396 Continued from 350 Lessons from the #Stolen-the heist of the Century in #Netflix-4 #Complacence about the superiority of #controls leads to frauds and heists. When someone says, ‘We have the best controls in the world in place’, that is an invitation to a disaster. In lesson 97A we saw how on Sep 27,23 Israel gave a demo to NATO military committee on its amazingly superior AI and Hi-tech surveillance system; a week later Hamas struck. Look how the thieves broke all the security measures and controls. 1.   To avoid CCTV cameras they skirted along the walls of the diamond centre 2.   Thermal motion sensor was disabled by spraying hair-spray on it 3.   Vault’s magnetic lock was by passed by carefully removing bottom portion of screws securing the two plates, when the magnetic field was inactive and then using adhesive tape to keep them in place! A custom aluminium plate was used to keep plates together to maintain magnetic field. 4.   To record the vault’s combination (with 100 million combinations), which was also changed every week, a small camera was installed above the vault door (they could see through a piece of glass on top of the lock that acted like a magnifying glass); this also helped monitor movement of guards! The recorder was hidden in the fire extinguisher 5.   To open the vault door, they used a long two-part three-D key; they used a simple crowbar to open the day gate; when they opened the vault door the turned off lights to ensure light sensors did not work. Then they covered the ceiling light sensor with tape. 6.   To avoid detection by infrared sensor in the vault, and to block the thermal signature, they used a polystyrene shield. 7.   To open the lockers (these were equipped with a unique key lock as well as a 3 letter combination lock; that means 189 codes and 189 keys were needed to open all of them) they used a hand-cranked device to break open 109 of the 189 safe deposit lockers to loot the contents Many owners of safe boxes did not #insure the contents as the vault was considered the ultimate safe place to store diamonds etc.! (Recently we heard JLR did not have cyber security insurance) In Tamil we say ‘Vallavanukku Vallavan Vaiyagathil Undu’- There is a greater person for every great person! A truly talented and resourceful person can achieve his goals even with minimal resources, as he has the skill to make effective use of whatever is available.  As auditors we should never be lulled into complacence. All views personal.

Cargo theft is evolving, from random break-ins to sophisticated, identity‑based fraud. Q2 2025 saw a sharp rise in organized schemes targeting high‑value goods. Birdseye Security Solutions helps logistics teams build intelligent defenses, with AI, agent supervision, and proactive risk detection. #CargoTheft #SupplyChainDefense https://zurl.co/Wlrw9

Addressing the Investigator Efficiency Crisis: Executive Focus | NHCAA Conference - Codoxo Efficiency Dilemma: SIUs struggle to balance comprehensive fraud detection with limited resources, causing long case turnarounds. Proactive Prevention: The shift toward prevention-first strategies is crucial. AI is now analyzing provider behavior early in the claims lifecycle, moving beyond post-payment recovery. Current SIU Challenges: Key topics include AI-enhanced fraud schemes, large-scale identity theft, and sector-specific fraud. The 2025 National Health Care Fraud Takedown highlights the rise of tech-enabled threats. AI-Driven Sophisticated Schemes: Criminals are using AI to generate fake records and synthetic identities, complicating detection. Manual Review Overload: Increased AI-driven fraud produces more low-quality leads, burdening investigators and obscuring real threats. Automation for Impact: Leading SIUs are leveraging AI to automate tasks, freeing investigators to focus on high-impact cases. Explore how Codoxo's AI solutions can empower your SIU team at the NHCAA conference. Let's redefine fraud prevention together.

Since late 2022, CARVE has successfully prevented this group from negatively impacting our customers, despite numerous sophisticated attempts to infiltrate using a variety of carriers entities with clean records, legitimate on-road visibility, and established industry tenure with no detected ownership changes. Drawing on network analysis methods from the financial industry and academic research, we created CARVE, a machine learning model that ingests wide-ranging behavioral data to detect hidden connections between carriers. We paired this technology with a rigorous culture of detailed investigations into every suspected or confirmed fraud incident. While the apprehension of these individuals required sustained collaboration across the freight industry and with law enforcement, not the work of any single company, we are proud to have been able to help. While significant challenges remain, this outcome demonstrates that proactive detection methods and industry cooperation can stay ahead of organized cargo theft. This work continues at DAT, where we're eager to build on these methods utilizing the broad data available across the Convoy Platform, DAT, Trucker Tools, and Outgo, leading to the best possible protection from fraud for our carrier and broker customers.

SHAQ JUST GOT SPOOFED — NOT AGAIN, ANOTHER CARGO THEFT SCAM! Yep. Headlines say Shaq’s Range Rover wound up in a shipping scam — and it rings the same alarm bells as the Guy Fieri double-broker fiasco. Two high-profile names. Same playbook: stolen identities, fake carriers, and GPS spoofing - freight routed into thin air. Here’s the ugly truth: these scams don’t start at the dock. They start in the data — a spoofed GPS ping, a scrambled carrier identity, or one unchecked vin number. One click. One bad verification. One missing mile of real visibility — and a load vanishes. At Circle Logistics, we don’t wait for the headlines. We built a different playbook: • Real-time carrier monitoring — every carrier is continuously observed from onboarding through delivery. • Instant fraud alerts — suspicious carrier changes and activity trigger immediate verification. • Continuous compliance checks — every load has load-specific requirements that are validated in real time. • Dedicated fraud & compliance teams — humans + data, working 24/7 to investigate and shut down threats. • Carrier ID and Access Management — ensures the carrier’s identity is valid and linked to verified data, and protects against impostors trying to hijack or fake that login. And yes — GPS and telematics spoofing is real. Bad actors try tricks like sudden location jumps, cloned device signals, or mismatched route histories. So we watch the signals that matter — and we cross-check them: When any of these anomalies pop, our system escalates instantly — automated flags, human review, and containment steps to stop cargo theft and reduce claims. That’s how we keep high-value freight off the evening news. Want my full playbook? If you’d rather be a client who never makes the news, let’s talk. #FreightFraud #DoubleBrokering #RealTimeMonitoring #GPSSpoofing #CargoTheftPrevention #CarrierCompliance #SupplyChainSecurity #CircleLogistics

Strategic cargo theft has surged 1455% in the last two years as criminals shift from straight theft to digital schemes like deceptive pickups, double-brokering, bill of lading manipulation, and hostage loads. What works is a layered defense: - Robust cybersecurity and companywide training - Continuous carrier verification - A fraud-aware culture that follows policies and spots irregularities Learn more ➡️ https://lnkd.in/gtwiBpJ5

Are your fraud detection models really catching fraud, or are they just patting you on the back with high accuracy? When was the last time you stress-tested your fraud detection strategy against real-world fraud scenarios? Audit your fraud detection models using actual historical fraud cases, not just synthetic clean data. Track both false positives and false negatives—don’t let customer comfort override real risk. Simulate adversarial fraud attacks to test model resilience. Periodically retrain models to adapt to evolving fraud tactics. Use balanced datasets that reflect real fraud prevalence, not idealized distributions. Implement real-time anomaly detection alongside batch models. Introduce multi-layered detection: rules + AI models + human review. Ensure every flagged transaction gets explainability metadata for auditability. Measure model performance on precision, recall, and F1-score—not just accuracy. Cross-validate models using independent datasets from different time periods. Monitor drift in fraud patterns and adjust model thresholds accordingly. Establish a “fraud lab” to safely test new attack simulations. Include external intelligence feeds to capture emerging fraud trends. Conduct independent third-party audits of AI fraud systems. Train staff to understand model limitations and encourage challenge-based reviews. Document every model assumption and parameter change for governance. Create automated alerts when anomaly scores exceed risk thresholds. Introduce periodic adversarial reviews where red teams attempt to bypass detection. Benchmark your model against peer institutions and industry standards. Maintain a feedback loop from confirmed fraud cases to continuously improve models. Avoid over-reliance on single models; ensemble multiple approaches for robustness. Tie fraud detection KPIs to actual monetary impact, not just statistical metrics. CTA - How would you design a fraud detection system that learns from failures in real time, balances customer experience, and is auditable end-to-end, without assuming your data is perfect?

#Fraud lessons from 47 years of audit and studies of past frauds – 353-398 Continued from 352 Lessons from the #Stolen-the heist of the Century in #Netflix-6 Lesson: Fraudsters actively look for weaknesses in #controls. You can see the fraud triangle element of #rationalisation in what they do. The thieves note that the weakest link in security is the garage connecting door which led directly to the ground floor of the building. They made a modified key for the door so they could just walk in easily! Then they used folding step ladders to climb to I floor. Recall how in Operation Sindoor, the IAF attack on Chakala HDBT targeted a HVAC shaft measuring just 45 cm in diameter as it was the weakest point. I was also amazed how the thieves rationalised the theft. Notarbartolo said they were not guilty as the locker owners claimed more from insurance. He said if he stole 10kg the owners claimed 25 kg and benefitted. (Though truth was many did not insure at all) Only thing is scamsters get bold and if they escape a few times they start to relax and make mistakes. The investigators also did painstaking work to piece together the many evidences they came across. They looked at each and every piece of paper and found for instance that a work order was given by a company called Damoros Preziosi for the thieves to go in and that one of the lockers, locker 149 belonged to that company. This and CCTV footage of the occupant led them to the king pin Notarbartolo. As auditors we need to think like crooks , look carefully at control gaps, at evidences and also look for the mistakes the fraudsters commit. All views personal.

You’ve likely heard about seller impersonation fraud by now, but knowing it exists and understanding how it plays out are two different things. In our latest guide, we break down what seller impersonation fraud is, highlight the red flags agencies must watch for, outline best practices for prevention, and show how technology is equipping title agencies to stay one step ahead of fraudsters. Get the must-know info: https://bit.ly/3VOkYEu