Barnes & Noble Stores Targeted in Nationwide

 October 24, Dark Reading – (National)

Barnes & Noble Stores Targeted in Nationwide Payment card-Skimming Scam.

Rogue PIN pad devices discovered at more than 60 Barnes & Noble stores nationwide appeared to be the handiwork of a well-orchestrated financial fraud scheme that rigged just one device at each store, Dark Reading reported October 24.

The retail bookseller revealed that it had halted use of all PIN pad devices in most of its 700 stores as of September 14 in the U.S. and that the FBI is investigating the case. The compromised PIN pad devices represent less than 1 percent of the total number of these devices in Barnes & Noble stores, according to the retailer.

The compromised devices were found in some stores in California, Connecticut, Florida, New Jersey, New York, Illinois, Massachusetts, Pennsylvania, and Rhode Island.

Somehow, the criminals were able to gain physical access to the devices, which Barnes & Noble described as having been tampered with and implanted with “bugs” that let the fraudsters capture credit card and debit card PIN numbers. Barnes & Noble declined to provide details on the type or features in the rigged devices.

Source: scam.html

U.S. Sues BofA Over Alleged Mortgage Fraud

October 24, Reuters – (National)

The United States filed a civil mortgage fraud lawsuit against Bank of America, accusing it of selling thousands of toxic home loans to Fannie Mae and Freddie Mac that went into default and caused more than $1 billion of losses, Reuters reported October 24. The case, originally brought by a whistleblower, is the U.S. Department of Justice’s first civil fraud lawsuit over mortgage loans sold to Fannie Mae or Freddie Mac.

According to a complaint filed in Manhattan federal court, Countrywide in 2007 invented a scheme known as the “Hustle” designed to speed up processing of residential home loans. Operating under the motto “Loans Move Forward, Never Backward,” mortgage executives tried to eliminate “toll gates” designed to ensure that loans were sound and not tainted by fraud, the government said.

This resulted in “defect rates” that were roughly nine times the industry norm, but Countrywide concealed this from Fannie Mae and Freddie Mac, and even awarded bonuses to staff to “rebut” the problems being discovered, it added. The scheme ran through 2009 and caused “countless” foreclosures, the lawsuit alleged.

Source: alleged-mortgage-fraud?lite