Tag Archives: Fraud

Culture Clash: A Lesson from the Theranos Case

KNOWLEDGE@WHARTON – There’s much more at stake than a potential 20-year prison term for Theranos founder Elizabeth Holmes, whose federal fraud trial opened last week. Her case has come to symbolize the perpetual conflict between big tech and health care.

“It’s a culture clash, to be sure,” Wharton health care management professor Lawton R. Burns said in an interview with Wharton Business Daily on SiriusXM.

The startup culture in Silicon Valley and beyond moves at warp speed, he said. When investors are enthusiastic about a promising new venture, the hype builds and the dollars roll in. Theranos reached a valuation of $9 billion on a bogus claim that it developed a revolutionary lab test capable of screening for a range of conditions on a single drop of blood. It was exactly the sort of cost-efficient solution that big tech is known for, so it’s little wonder that investors fell for the pitch from the charismatic Holmes, who fashioned herself after Apple visionary Steve Jobs.

But there’s almost always friction when big tech turns its eye toward health care as “virgin turf to apply all of this new, cool stuff to,” said Burns, who is co-author of the book Big Med: Megaproviders and the High Cost of Health Care in America. “The question is whether or not all this stuff is going to work and transform health care or, conversely, at the extreme, just crash and burn.” more>

12 Scams of Christmas and How to Avoid Them

SLIDE SHOW (14)

By Thor Olavsrud – The holiday shopping season is in full swing and so is the season for online scams. According to 2012 Holiday Shopping Study (pdf) by McAfee and Harris Interactive, 70 percent of Americans will shop online this holiday season and 24 percent of Americans will shop online with a mobile device. That’s a target that has cyber criminals salivating. Here are 12 of the most dangerous scams you’re likely to see this holiday season. more> http://tinyurl.com/cwdyw2y

Fraud growing in scientific research papers

By Seth Borenstein – Fraud in scientific research, while still rare, is growing at a troubling pace.

In 1976, there were fewer than 10 fraud retractions for every 1 million studies published, compared with 96 retractions per million in 2007.

The study authors aren’t quite sure why this is happening. But they and outside experts point to pressure to hit it big in science, both for funding and attention, and to what seems to be a subtle increase in deception in overall society that science may simply be mirroring.

“Very few people are doing it, but when they do it, they are doing it in areas that are very important,” Arturo Casadevall said, a professor of microbiology at the Albert Einstein College of Medicine in New York. “And when these things come out, society loses faith in science.” more> https://goo.gl/xXuntM

FBI finds scammers impersonating the FBI now one of worst online threats

FBI Mobile Command Center in Washington DC.

FBI Mobile Command Center in Washington DC. (Photo credit: Wikipedia)

By Michael Cooney – The 2011 IC3 Internet Crime Report (pdf) issued found that of the 314,246 complaints the IC3 received last year over 14,000 involved scamsters posing as the FBI in one shady online form or another.  The 314,246 complaints represent a 3.4% increase over 2010.

The IC3 said the top five crimes included:

  • FBI-related Scams – Scams in which a criminal poses as the FBI to defraud victims.
  • Identity Theft– Unauthorized use of a victim’s personal identifying information to commit fraud or other crimes.
  • Advance Fee Fraud– Criminals convince victims to pay a fee to receive something of value, but do not deliver anything of value to the victim.
  • Non-Auction/Non-Delivery of Merchandise – Purchaser does not receive items purchased.
  • Overpayment Fraud – An incident in which the complainant receives an invalid monetary instrument with instructions to deposit it in a bank account and send excess funds or a percentage of the deposited money back to the sender.

more> http://tinyurl.com/88btp32