Wednesday, July 31, 2019

A Debit Card Scam

Each of us has our preferred method of paying for things like pizza delivery. Some prefer cash, some credit cards, others debit cards, and a growing number use their smart phones. I’m leery about using a debit card that allows anyone direct access to my bank and only use them to get cash from an ATM. I rarely use cash, don’t trust my phone, and use credit cards with rewards whenever I can, paying off the balance each month. Which makes me a bit of a dinosaur.

If you use debit cards, make sure the cards never leave your sight. This cautionary tale comes from the Toronto, Canada area and involves pizza delivery.

You order your pizza and it arrives on time. You pay with a debit card and there’s a problem with the machine or the driver “left the machine in his car.” He’s apologetic and courteous. “Happens all the time.” He takes your card back to his car where the transaction goes through fine.

Except, the only transaction that happens is the driver takes your debit card and gives you back one that looks the same but is a fake. They leave not to deliver another pizza, but to the nearest ATM to remove money from your bank account.

The “beauty” of this scheme is the “driver” isn’t the real pizza driver. He’s an entrepreneurial scam artist willing to invest a little money in the scheme. He intercepts the driver before the pizza gets to your door, pays for your pizza, and delivers it to you in the hope you’ll fall for his debit card swindle. If you pay in cash, the scam artist is just out his time—although he might collect a tip.

It might be pizza in Toronto or a salesclerk in a convenience store in Oshkosh; the key to preventing this kind of debit card fraud is to never let the card out of your sight.

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James M. Jackson authors the Seamus McCree series. Full of mystery and suspense, these thrillers explore financial crimes, family relationships, and what happens when they mix. False Bottom, the sixth novel in the series—this one set in the Boston area—is now available. You can sign up for his newsletter and find more information about Jim and his books athttps://jamesmjackson.com.


Friday, July 26, 2019

Why a Lottery Scam Should Inform Our Use of Electronic Voting Machines

Eddie Tipton, the former information technology manager for the Multi-State Lottery Association, was convicted in 2017 of rigging lotteries. The organization he worked for provides number-picking computers for lotteries in 33 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

He concocted a simple scheme: he added code to the computer programs that run the lotteries so that on certain specific days instead of producing a random draw of winning numbers, the program picked numbers known to him ahead of time. He had his brother and friends buy winning tickets and shared in the “winnings.”

The first known instance was the Colorado Lotto in 2005. The last payout was 2011. The one that triggered his arrest was a $14 million payout from the Iowa Hot Lotto in 2010. And that happened more by luck than anything else.

What does this crime mean for electronic voting machines?

We must realize that what Eddie Tipton did while working for the Multi State Lottery Association someone else could do working for a voting machine manufacturer

The lottery scam presents a parallel argument that all electronic voting machines should have a paper backup so voters can confirm the machine has correctly tabulated their vote and election officials can perform an accurate recount or audit.

Here is one example in which someone who wanted to affect a presidential election could make a difference:

Several states, including Pennsylvania, allow straight ticket voting in which by making a single choice, the computer records you as voting for the candidate of your chosen party. Although Pennsylvania law requires new machines to have paper backup, most old machines do not. Imagine if some programmer had the foresight a decade ago to stick in a little bit of extra code in the programming that changes one of every 100 straight party votes from Party A to Party B for the 2020 election only.

Pennsylvania is a swing state . . . that small bit of code might be enough to change who is elected president.

Don’t want to change votes, how about not counting all the votes? Not counting one of every fifty straight-line Party A votes accomplishes the same result.

This fantastic scenario requires a single programmer in the right spot at the right time, just as Eddie Tipton was in the right spot at the right time.

Hackers with access to voting machines can accomplish the same thing on a more targeted basis. They can commit after-the-fact voter suppression, say by rigging machines to ignore one of every 100 votes in certain districts that vote primarily for Party A and maybe flip an election to Party B. Oh sure, comparing the number of voters to the number of votes cast could uncover the irregularity, but then what? Would the courts order an entire new election? Would voters lose confidence that their votes mattered?

The opportunities are myriad. We must have secure elections. We should require electronic voting to have paper backup. If Congress were serious about preventing election fraud, it could purchase electronic voting machines with paper backup for every voting precinct in the nation. Would it cost money? Yes. But Congress has no problem increasing our budget deficit, and at least we’d get something for the money spent.

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James M. Jackson authors the Seamus McCree series. Full of mystery and suspense, these thrillers explore financial crimes, family relationships, and what happens when they mix. False Bottom, the sixth novel in the series—this one set in the Boston area—is now available. You can sign up for his newsletter and find more information about Jim and his books athttps://jamesmjackson.com.