Deception
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Bitcoin price plunges as Mt. Gox says flaw in protocol allows fraud | NetworkWorld.com

Bitcoin price plunges as Mt. Gox says flaw in protocol allows fraud | NetworkWorld.com | Deception | Scoop.it

Bitcoin software has a bug that allows fraud, Tokyo-based bitcoin exchange Mt. Gox said Monday. The news was followed by a new fall in the value of the digital currency.

 

Mt. Gox said it will continue its suspension of bitcoin transfers from wallets it holds to external bitcoin addresses, announced Friday, while it works to resolve the problem.

 

Conversions of bitcoins to conventional currencies and bitcoin transfers to other Mt. Gox addresses are not affected.

 

"A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur," Mt. Gox said in a statement.

 

"Since the transaction appears as if it has not proceeded correctly, the bitcoins may be resent. MtGox is working with the Bitcoin core development team and others to mitigate this issue."

 

The flaw, called "transaction malleability," is already known to some of the core Bitcoin software developers, Mt. Gox said. It allows a third party to alter the hash associated with a freshly issued transaction without invalidating its signature, resulting in two similar transactions, only one of which can ultimately be validated and included in the log of Bitcoin transactions called the blockchain.

 

An attacker with access to sufficient computing power could ensure that the modified transaction is included, and the original rejected. With current Bitcoin applications, it is easy to determine that the original transaction failed, but much less obvious that a modified transaction succeeded, Mt. Gox said.

 

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Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc
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No such thing as mis-selling. It's a euphemism for fraud

No such thing as mis-selling. It's a euphemism for fraud | Deception | Scoop.it

Scottish and Southern Electricity has been charged £10 million by Ofgem for mis-selling its gas and electricity.


Via Peter A Bell
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Peter A Bell's curator insight, April 4, 2013 5:25 AM

Scathing honesty from Iain MacWhirter: "The grand figures who run companies like HBOS cannot be accused of fraud because they are terribly important people who sit on lots of boards, so a new word had to be invented to immunise them from obloquy."

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Deregulation Allows Lifeline/USF Fraud to Run Rampant; Tens of Millions Fund Lavish Lifestyles

Deregulation Allows Lifeline/USF Fraud to Run Rampant; Tens of Millions Fund Lavish Lifestyles | Deception | Scoop.it

A lack of robust state oversight of independent contractors and resellers may have cost the Universal Service Fund and nationwide Lifeline program up to $1 billion in waste, fraud, and abuse.

 

This month, three men were accused of stealing more than $32 million in Universal Service Fund (USF) money that supported lavish lifestyles including the purchase of multiple luxury automobiles. The federal government wants the money back.

 

Leonard I. Solt, 49, of Land O’Lakes, Fla.,Thomas Biddix, 44, of Melbourne, Fla. and Kevin Brian Cox, 38, of Arlington, Tenn., all face federal criminal charges for allegedly padding the number of customers signed up for Lifeline phone service through five companies all connected to the men: American Dial Tone, Bellerud Communications, BLC Management, LifeConnex Telecom and Triarch Marketing.

 

In some cases, Lifeline cell phone service was completely subsidized by USF funding, allowing customers to sign up for free cell phone service. Average Americans cover the costs of the program through a surcharge on monthly phone bills.

 

The indictment charges the defendants with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering.

 

In an 18-month period from 2009 to 2011, the phone companies obtained more than $46 million through the Lifeline program.

 

Regulators have been suspicious of the companies and the men who ran them since at least 2010 when the Florida Public Service Commission noticed a dramatic spike in Lifeline reimbursement requests from Associated Telecommunications Management Services, LLC., the parent company of the five entities. The Florida PSC accused AMTS of misrepresenting customer enrollment when claiming reimbursement. It was not until June 2011 that the Florida PSC approved a settlement of $4 million from AMTS and an agreement to stop doing business in the state.

 

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Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc
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It’s Official: Unhappy Employees = Corruption and Fraud

It’s Official: Unhappy Employees = Corruption and Fraud | Deception | Scoop.it

Squeeze your employees, and you’ll pay the price. Seems obvious—but Ernst & Young has actual evidence. For its annual fraud report the firm surveyed 3,000 company board members, managers and their teams in 36 countries across the world, and found that employees feeling the double pinch of increased demands and fewer financial perks are alarmingly likely to respond by doing anything from fudging the numbers to bribing officials and clients.

 

Practically everyone, it seems, is feeling the pressure to grow their businesses and meet their targets in a tough economic climate, but at the same time, “the vast majority” of people reported that they’re not getting the bonuses, raises and other perks that they used to. Oddly enough, this is true not just in the sputtering engines of Western capitalism but also in hyper-competitive rapid-growth markets “where the battle for talent remains fierce.” In India, for instance, 43% of respondents were witnessing what E&Y delicately describes as “downward pressure on pay and remuneration.”


Via The Learning Factor
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