Podcast Summary: Hacking Humans – Episode: "Catch Me If You Scam"
Podcast Information:
- Title: Hacking Humans
- Host/Author: N2K Networks
- Description: Deception, influence, and social engineering in the world of cybercrime.
- Episode: Catch Me If You Scam
- Release Date: March 13, 2025
1. Introduction and Banter
Timestamp: [00:02] - [02:32]
Maria Varmazes kicks off the episode by welcoming listeners to "Hacking Humans," hosted by N2K Networks. She humorously mentions her attempt at impersonating Dave Bittner, who is currently on vacation, and introduces Joe Kerrigan as her co-host. The opening segment features light-hearted banter between Maria and Joe about their names and family members, setting an engaging and personable tone for the episode.
Notable Quote:
- Maria Varmazes: “You are my one and only Joe Kerrigan.” ([01:08])
2. Listener Feedback and Q&A
Timestamp: [02:04] - [06:49]
The hosts transition to discussing listener feedback from the previous episode, “Hacking Chickens.” They highlight comments from Joe (also known as "Crow Child Bob") who appreciates Maria's use of specialized terminology related to cybersecurity. The discussion then delves into a query from a listener named Robert regarding the impact of bird flu on egg prices and potential scams related to tariffs affecting Canadians.
Key Points:
- Bird Flu Impact: Joe explains how bird flu can devastate large flocks, leading to the euthanization of all birds in an affected flock to contain the virus.
- Tariff-Related Scams: Joe hints at potential scams involving the smuggling of eggs from Mexico, creating "egg mules" and "egg traffickers" at the southern border, although he acknowledges the need for further investigation.
Notable Quotes:
- Robert's Question: “Don’t get me started on that topic.” ([05:05])
- Joe Kerrigan: “If my crypto wallet calls me, I have questions.” ([08:17])
3. Main Stories
a. Cryptocurrency Seed Phrase Scam in the UK
Timestamp: [06:49] - [13:15]
Maria introduces a concerning crypto scandal from the UK, where scammers pose as police officials to obtain victims' cryptocurrency seed phrases. Detective Sergeant Daryl Paulson of the Kent Police warns against sharing personal details with unsolicited contacts claiming to be from crypto hosts or law enforcement.
Key Points:
- Scam Methodology: Scammers secure data from leaked sources and impersonate police to create a sense of urgency, convincing victims to divulge their seed phrases.
- Understanding Seed Phrases: Joe elaborates on the importance of seed phrases, distinguishing them from passwords. He explains that a seed phrase (more accurately termed a recovery phrase) is directly linked to a user's private keys, granting full access to their cryptocurrency wallets.
- Financial Impact: Approximately £1 million has been lost to this scam, emphasizing the sophistication and peril of such schemes.
Notable Quotes:
- Joseph Kerrigan: “The seed phrase is not like that. So, yeah, if anyone's expecting ... never give it out to anyone for any reason at all, ever.” ([11:19])
- Detective Sergeant Daryl Paulson: “Don’t be embarrassed about reporting a scam, as it only takes a second to be distracted and fall victim.” ([13:15])
b. Grandparent Bail Money Scam in Canada
Timestamp: [15:47] - [18:07]
Joe shares a report from Hank Sanders at the New York Times about a fraudulent call center in Montreal targeting elderly Americans. The scammers impersonate grandchildren in urgent need of bail money, a classic example of the "grandparent scam."
Key Points:
- Operational Details: The U.S. Attorney's Office in Vermont, in collaboration with the Royal Canadian Mounted Police, has charged 25 Canadian nationals for defrauding Americans across 45 states.
- Financial Losses: Victims have lost approximately $21 million over three years.
- Legal Consequences: The accused face severe charges, including grand larceny and computer tampering, with potential sentences ranging from 20 to 40 years.
Notable Quotes:
- Joe Kerrigan: “The amount of money that has been lost is staggering. It is $21 million over three years.” ([17:12])
c. Taylor Swift Concert Ticket Scam
Timestamp: [18:05] - [24:58]
Maria and Joe discuss a sophisticated scam targeting Taylor Swift's concert-goers. Two individuals from Jamaica and Queens, New York, exploited a loophole in an offshore ticket vendor's system to redirect and steal 993 concert tickets, amounting to $600,000.
Key Points:
- Mechanism: The scammers accessed StubHub's secure network, altering email addresses in the ticketing system to receive ticket URLs directly, bypassing legitimate purchasers.
- Impact on Fans: With Taylor Swift's concerts being sold out and tickets highly sought after, victims faced frustration and financial loss when they didn't receive their purchased tickets.
- Industry Response: The Taylor Swift Touring company reported massive attendance and revenue, highlighting the vast scale of the scam relative to the concert's success.
Notable Quotes:
- Joe Kerrigan: “It's just stealing... And it's just... anybody who's bought one of these tickets... it's gone forever.” ([20:47])
4. Catch of the Day: Joann’s Fabrics Liquidation Scams
Timestamp: [26:43] - [38:34]
Mayan Plout joins the hosts to discuss the alarming rise of scams amidst Joann’s Fabrics' liquidation process. As the company winds down, scammers exploit the chaos by advertising fake online deals, tricking consumers into providing credit card information without delivering goods.
Key Points:
- Company Closure: Joann’s Fabrics filed for bankruptcy a few years prior and began closing over half of its stores last year, with full liquidation underway.
- Scam Tactics:
- Fake Websites: Scammers created look-alike websites (e.g., joanne-us.com) offering unrealistic discounts (70-90% off) to lure customers.
- Social Media Ads: Deceptive ads promised massive savings on fabrics and sewing supplies, capitalizing on Joann’s ongoing sales and stock scarcity.
- Consumer Vulnerability: The urgent need for materials during liquidation drives consumers to seek deals, often falling prey to fraudulent schemes.
- Preventative Measures:
- Official Channels Only: Consumers are advised to purchase directly from physical stores or the official website, which currently halts online orders.
- Awareness Campaigns: The Better Business Bureau has flagged such scams, urging customers to verify the authenticity of online offers.
Notable Quotes:
- Mayan Plout: “If you go to the Joann's website right now, it says... If you see an ad for an online order from Joanne's, it's not real.” ([35:54])
- Maria Varmazes: “So, yeah, if anyone's trying to build up your stash long term or know someone who might be, don't fall for the scams that are promising extremely deep discounts that don't exist.” ([35:54])
5. Conclusion and Final Thoughts
Timestamp: [38:34] - [40:00]
The episode wraps up with final thoughts on the discussed scams, emphasizing the importance of vigilance and skepticism when encountering deals that seem too good to be true. Maria and Joe encourage listeners to stay informed and share their feedback to help shape future episodes. They also remind the audience to utilize trusted sources and official channels when making purchases, especially during times of corporate uncertainty like Joann’s liquidation.
Notable Quotes:
- Joe Kerrigan: “If you can't afford to take that money out in the street, don't buy cryptocurrency.” ([14:37])
- Maria Varmazes: “This one's as you can tell, near and dear to my heart.” ([37:17])
Key Takeaways:
- Cryptocurrency Security: Always safeguard your recovery phrases and understand the critical difference between wallets and exchanges to prevent unauthorized access.
- Awareness of Common Scams: Be cautious of unsolicited calls, especially those creating a sense of urgency, and verify the legitimacy of any requests for personal or financial information.
- Navigating Corporate Liquidations: During company closures, be extra vigilant of scams exploiting the situation by offering fake discounts or deals. Always rely on official sources for purchases.
For more insights and updates on cybersecurity scams and protective measures, subscribe to "Hacking Humans" and follow N2K Networks' CyberWire.